**U.S. Department of Health and Human Services**

![](media/image1.png)

Logistics Management Manual (LMM)

FINAL VERSION 1.0

February 23, 2007

# Introduction 

### Overview of Logistics Management

The Department of Health and Human Services (HHS) is an executive agency
of the Federal Government of the United States. [Federal Property
Management Regulations
(FPMR)](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1),
and its successor [Federal Management Regulation
(FMR)](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfrv3_06.html),
developed by the General Services Administration (GSA) govern and guide
executive agency officials, including those in HHS, in prescribing
regulations, policies, procedures, and delegations of authority
pertaining to the management of property and other programs and
activities\...\" within their agencies (Code of Federal Regulations,
Title 41, Public Contracts and Property Management, Chapter 101
Subchapter A, Part 101, Subpart 101-1 and Chapter 102 Subchapter A, Part
102, Subpart 102-1).

The \"management of property and other programs and activities\" is
\"logistics.\" Logistics is more concretely defined as the ordering,
receiving, storing, distributing, accounting for, maintaining, and
disposing of supplies and equipment. Controlling and synchronizing these
and other interrelated processes in order to accomplish HHS missions and
functions is logistics management. \
\
This manual is the HHS\' Logistics Management Manual (LMM). It
prescribes policies and procedures that are intended to exert a
determining influence on the performance of logistics processes and
logistics management within the Department of Health and Human Services
and its components. 

### Mission Performance and Logistics Management

 

The components of the Department of Health and Human Services are
responsible for accomplishing a variety of complex and challenging
missions and tasks. They are provided resources to accomplish these
responsibilities. However, the amount and type of resources they are
provided is limited. Because of resource scarcity, a premium is placed
on the conservation and creative \"stretching\" of funds. The prudent
management and careful stewardship of scarce resources is an integral
part of component missions. Nevertheless, the demand for resources is
high and HHS components must order, acquire, receive, store, transport,
distribute, account for, maintain, and dispose of essential equipment,
supplies, and services.

This manual, therefore, is an important part of the system used by HHS
to control its resources and perform its missions. To most effectively
and efficiently carry out its responsibilities, the HHS must effectively
and efficiently manage logistics. A high degree of teamwork and
communication between the consumers and providers of logistics services
is required to do this. This manual is intended to enhance teamwork and
communication. 

### Organization of the Manual 

The Logistics Management Manual is organized into subchapters. The
subchapters contain parts, each of which is limited to one major
logistics process. Material is based on existing laws, executive orders,
and mandatory regulations of control agencies. Departmental policies
were then incorporated. \
\
The organization of this manual is intended to provide a structure for
logistics management while, at the same time, accommodating change and
leveraging opportunities presented by new logistics techniques
(particularly information technologies) and best practice business
improvements. Logistics processes must be constantly modernized to
reflect the changing business environment. Sustained progress toward
long range organizational goals can be hindered if state-of-the-art
logistics practices and procedures are not used. \
\
Currency of material is maintained as legal and policy changes occur, by
issuing changes to the manual utilizing the Department\'s transmittal
method for the HHS Staff Manual System. 

### Applicability 

The material in this manual is applicable to all units of the Department
unless otherwise specified. 

### Authority for Issuance 

Authorities for issuing the HHS Logistics Management Manual are 5 U.S.C.
301, 40 U.S.C.(c), and Chapter 2-500, HHS Organization Manual; Director,
Acquisition Management and Policy; Code of Federal Regulations, Title
41, Public Contracts and Property Management, Chapter 101, Subchapter A,
Part 101, Subpart 101-1 and Chapter 102, Subchapter A, Part 102, Subpart
102-1.

# TABLE OF CONTENTS

[Introduction i](#introduction)

[Overview of Logistics Management i](#overview-of-logistics-management)

[Mission Performance and Logistics Management
i](#mission-performance-and-logistics-management)

[Organization of the Manual i](#__RefHeading___Toc159985901)

[Applicability ii](#__RefHeading___Toc159985902)

[Authority for Issuance ii](#authority-for-issuance)

[TABLE OF CONTENTS iii](#table-of-contents)

[HHS Logistics Management Manual (LMM) Subchapter A
1](#hhs-logistics-management-manual-lmm-subchapter-a)

[SUBPART 103-1.1 LOGISTICS MANAGEMENT
1](#subpart-103-1.1-logistics-management)

[103-1.100 SCOPE 1](#scope)

[103-1.101 FEDERAL PROPERTY MANAGEMENT REGULATION SYSTEM/ FEDERAL
MANAGEMENT REGULATION SYSTEM
1](#federal-property-management-regulation-system-federal-management-regulation-system)

[103-1.102 STATUTORY PROVISIONS 1](#statutory-provisions)

[103-1.103 TEMPORARY HHS LOGISTICS MANAGEMENT ISSUANCES
2](#__RefHeading___Toc159985910)

[103-1.104 PUBLICATION AND DISTRIBUTION
2](#publication-and-distribution)

[103-1.107 CONSULTATION REGARDING LMM 3](#consultation-regarding-lmm)

[103-1.108 HHS IMPLEMENTATION AND SUPPLEMENTATION OF FPMR/FMR
3](#hhs-implementation-and-supplementation-of-fpmrfmr)

[103-1.109 NUMBERING OF LMM 3](#numbering-of-lmm)

[103-1.110 DEVIATION/REVISION 3](#deviationrevision)

[103-1.150 PERFORMANCE MEASURES 4](#performance-measures)

[103-1.151 SYSTEMS DEVELOPMENT 4](#systems-development)

[103-1.152 OFFICIAL USE OF GOVERNMENT PROPERTY
4](#official-use-of-government-property)

[103-1.153 OTHER REFERENCES 5](#other-references)

[103-1.154 GLOSSARY 5](#glossary)

[SUBPART 103-1.49 \-- ILLUSTRATION OF FORMS AND EXHIBITS
5](#__RefHeading___Toc159985921)

[SUBPART 103-1.50 \-- AUTHORITIES AND RESPONSIBILITIES
6](#subpart-103-1.50----authorities-and-responsibilities)

[103-1.5000 SCOPE 6](#scope-1)

[103-1.5001 POLICY 6](#__RefHeading___Toc159985924)

[103-1.5002 GENERAL 6](#__RefHeading___Toc159985925)

[103-1.5003 DELEGATIONS OF AUTHORITY 7](#delegations-of-authority)

[103-1.5004 RE-DELEGATIONS 7](#re-delegations)

[103-1.5005 PRIMARY AUTHORITY AND RESPONSIBILITY
7](#__RefHeading___Toc159985928)

[103-1.5006 OFFICE OF ACQUISITION MANAGEMENT AND POLICY (OAMP),
ASSISTANT SECRETARY FOR ADMINISTRATION AND MANAGEMENT (ASAM)
8](#office-of-acquisition-management-and-policy-oamp-assistant-secretary-for-administration-and-management-asam)

[103-1.5007 EXECUTIVE COMMITTEE FOR LOGISTICS (ECL)
8](#__RefHeading___Toc159985930)

[103-1.5008 HEADS OF OPERATING DIVISIONS
9](#__RefHeading___Toc159985931)

[103-1.5009 RESPONSIBILITIES OF PROPERTY MANAGEMENT OFFICERS (PMO)
9](#__RefHeading___Toc159985932)

[103-1.5010 RESPONSIBILITIES OF PROPERTY ACCOUNTABILITY OFFICERS (PAO)
11](#__RefHeading___Toc159985933)

[103-1.5011 RESPONSIBILITIES OF SUPPLY MANAGEMENT OFFICERS
11](#__RefHeading___Toc159985934)

[103-1.5012 TRANSPORTATION AND TRAFFIC MANAGEMENT OFFICER
12](#__RefHeading___Toc159985935)

[103-1.5013 DEPARTMENT FLEET MANAGEMENT OFFICER
12](#__RefHeading___Toc159985936)

[103-1.5014 RESPONSIBILITIES OF PROPERTY CUSTODIAL OFFICERS (PCO)
13](#__RefHeading___Toc159985937)

[103-1.5015 RESPONSIBILITIES OF REGIONAL ADMINISTRATIVE SUPPORT CENTERS
(RASC) 13](#__RefHeading___Toc159985938)

[103-1.5016 BOARDS OF SURVEY AND SURVEY OFFICERS
14](#__RefHeading___Toc159985939)

[103-1.5017 RESPONSIBILITIES OF CONTRACTING OFFICERS AND GRANTS
MANAGEMENT OFFICERS
15](#responsibilities-of-contracting-officers-and-grants-management-officers)

[103-1.5018 HHS EMPLOYEES 15](#__RefHeading___Toc159985941)

[103-1.5019 REMOVING PROPERTY FROM HHS OFFICES
15](#__RefHeading___Toc159985942)

[103-1.5020 RESPONSIBILITIES FOR DEPARTMENTAL REPORTING
15](#responsibilities-for-departmental-reporting)

[103-1.5021 LOGISTICS INITIATIVES REPORT
16](#logistics-initiatives-report)

[103-1.5022 LOGISTICS REPORTS CALENDAR 16](#__RefHeading___Toc159985945)

[HHS Logistics Management Manual (LMM) Subchapter E
18](#hhs-logistics-management-manual-lmm-subchapter-e)

[PART 103-25 -- SUPPLY 18](#part-103-25-supply)

[103-25.000 SCOPE 18](#scope-2)

[SUBPART 103-25.1 \-- GENERAL POLICIES
18](#subpart-103-25.1----general-policies)

[103-25.100 USE OF GOVERNMENT PERSONAL PROPERTY AND NONPERSONAL SERVICES
18](#use-of-government-personal-property-and-nonpersonal-services)

[103-25.101 CRITERIA FOR DETERMINING METHOD OF SUPPLY
18](#__RefHeading___Toc159985951)

[103-25.103 PROMOTIONAL MATERIALS, TRADING STAMPS AND BONUS GOODS
18](#__RefHeading___Toc159985952)

[103-25.104 ACCEPTANCE AND USE OF DEMONSTRATION EQUIPMENT
19](#acceptance-and-use-of-demonstration-equipment)

[103-25.105 ACQUISITION OF OFFICE FURNITURE AND OFFICE MACHINES
19](#__RefHeading___Toc159985954)

[103-25.107 GUIDELINES FOR REQUISITION AND PROPER USE OF CONSUMABLE LOW
COST ITEMS 19](#__RefHeading___Toc159985955)

[103-25.150 DETERMINATION OF PERSONAL PROPERTY REQUIREMENTS
19](#__RefHeading___Toc159985956)

[103-25.151 ACQUIRING PROPERTY 20](#__RefHeading___Toc159985957)

[103-25.152 PRIORITIES FOR USE OF GOVERNMENT SUPPLY SOURCES
22](#__RefHeading___Toc159985958)

[SUBPART 103-25.2 \-- INTERAGENCY PURCHASE ASSIGNMENTS
23](#__RefHeading___Toc159985959)

[SUBPART 103-25.3 \-- USE STANDARDS 24](#__RefHeading___Toc159985960)

[103-25.302 OFFICE FURNITURE, FURNISHINGS, AND EQUIPMENT
25](#office-furniture-furnishings-and-equipment)

[103-25.350 EMBLEMS, FLAGS, AND SYMBOLS 26](#emblems-flags-and-symbols)

[103-25.350-3 FLAGS OF THE DEPUTY SECRETARY AND ASSISTANT SECRETARIES
26](#flags-of-the-deputy-secretary-and-assistant-secretaries)

[103-25.351 MOTOR VEHICLES 27](#motor-vehicles)

[103-25.353 REFRIGERATORS 28](#refrigerators)

[103-25.355 PROTECTIVE CLOTHING AND EQUIPMENT
29](#__RefHeading___Toc159985966)

[103-25.358 POTENTIALLY HAZARDOUS PRODUCTS
29](#potentially-hazardous-products)

[SUBPART 103-25.4 \-- REPLACEMENT STANDARDS
29](#subpart-103-25.4----replacement-standards)

[103-25.401 GENERAL 29](#general-1)

[SUBPART 103-25.5 \-- GUIDELINES FOR MAKING PURCHASE OR LEASE
DETERMINATIONS 31](#__RefHeading___Toc159985970)

[PART 103-26 PROCUREMENT SOURCES AND PROGRAMS
32](#part-103-26-procurement-sources-and-programs)

[SUBPART 103-26.1 GENERAL 32](#subpart-103-26.1-general)

[103-26.100 SCOPE 32](#scope-3)

[103-26.102 SPECIAL BUYING SERVICES 33](#special-buying-services)

[103-26.103 ESTABLISHING THE NEED FOR REQUIREMENTS
33](#establishing-the-need-for-requirements)

[103-26.106 CONSOLIDATION OF REQUIREMENTS
33](#consolidation-of-requirements)

[103-26.150 PROCUREMENT LEAD TIMES
34](#BM103_26_150_PROCUREMENT_LEAD_TIMES_)

[103-26.151 INTERAGENCY AGREEMENTS
34](#BM103_26_151_INTERAGENCY_AGREEMENTS_)

[103-26.152 USE OF GSA SUPPLY SOURCES BY HHS CONTRACTORS
34](#BM103_26_152_USE_OF_GSA_SUPPLY_SOURCES_B)

[103-26.154 REVIEW OF REQUISITIONS
34](#BM103_26_154_REVIEW_OF_REQUISITIONS_)

[103-26.155 RECEIVING REPORTS 35](#receiving-reports)

[SUBPART 103-26.2 \-- FEDERAL REQUISITIONING SYSTEM
35](#__RefHeading___Toc159985982)

[103-26.201 GENERAL 35](#general-2)

[103-26.202 ACTIVITY ADDRESS CODES (AAC)
35](#__RefHeading___Toc159985984)

[103-26.301 APPLICABILITY 36](#applicability-1)

[103-26.301-1 SIMILAR ITEMS 36](#__RefHeading___Toc159985986)

[103-26.303 OUT-OF-STOCK ITEMS 36](#out-of-stock-items)

[103-26.309 CANCELLATION OF ORDERS OF GSA STOCK ITEMS
36](#__RefHeading___Toc159985988)

[103-26.310 ORDERING ERRORS 36](#__RefHeading___Toc159985989)

[SUBPART 103-26.4 \-- PURCHASE OF ITEMS FROM FEDERAL SUPPLY SCHEDULE
(FSS) CONTRACTS 37](#__RefHeading___Toc159985990)

[103-26.401-2 PRIMARY SOURCE OF SUPPLY CONCEPT
37](#__RefHeading___Toc159985991)

[103-26.403-2 INSPECTION 37](#__RefHeading___Toc159985992)

[103-26.405 AUTOMATIC DATA PROCESSING EQUIPMENT
37](#__RefHeading___Toc159985993)

[103-26.406-7 U.S. GOVERNMENT NATIONAL CREDIT CARD FOR USE IN OBTAINING
SERVICE STATION SERVICES 37](#__RefHeading___Toc159985994)

[103-26.408 MULTIPLE AWARD CONTRACTS 37](#__RefHeading___Toc159985995)

[SUBPART 103-26.5 \-- GSA PROCUREMENT PROGRAMS
38](#__RefHeading___Toc159985996)

[103-26.501 PURCHASE OF NEW MOTOR VEHICLES
38](#purchase-of-new-motor-vehicles)

[SUBPART 103-26.6 \-- PROCUREMENT SOURCES OTHER THAN GSA
38](#__RefHeading___Toc159985998)

[103-26.602 FUELS AND PACKAGED PETROLEUM PRODUCTS OBTAINED FROM THE
DEFENSE LOGISTICS AGENCY
38](#fuels-and-packaged-petroleum-products-obtained-from-the-defense-logistics-agency)

[103-26.650 SUBSISTENCE ITEMS AVAILABLE FROM DOD
39](#__RefHeading___Toc159986000)

[103-26.701 PURCHASE OF PRODUCTS FROM THE BLIND OR SEVERELY HANDICAPPED
PERSONS.
39](#purchase-of-products-from-the-blind-or-severely-handicapped-persons.)

[103-26.702 PURCHASE OF PRODUCTS MANUFACTURED BY THE FEDERAL PRISON
INDUSTRIES, INC. 39](#__RefHeading___Toc159986002)

[103-26.750 PROCUREMENT FROM PHS SUPPLY SERVICE CENTER (SSC), PERRY
POINT, MD 39](#BM103_26_750_PROCUREMENT_FROM_PHS_SUPPLY)

[103-26.752 PROCUREMENT FROM THE GOVERNMENT PRINTING OFFICE (GPO)
39](#BM103_26_752_PROCUREMENT_FROM_THE_GOVERN)

[SUBPART 103-26.8 \-- DISCREPANCIES OR DEFICIENCIES lN GSA OR DOD
SHIPMENTS, MATERIALS, OR BILLINGS 40](#__RefHeading___Toc159986005)

[SUBPART 103-27.50 ACCOUNTABILITY AND PROPERTY RECORDS
40](#__RefHeading___Toc159986006)

[103-27.5001 GENERAL 41](#general-3)

[SUBPART 103-27.51 PROPERTY MANAGEMENT AREAS AND OFFICERS
41](#__RefHeading___Toc159986008)

[103-27.5102 DESIGNATION OF CUSTODIAL AREAS AND PROPERTY CUSTODIAL
OFFICERS 42](#__RefHeading___Toc159986009)

[SUBPART 103-27.52 PROPERTY RECORDS AND DOCUMENTATION REQUIREMENTS.
43](#__RefHeading___Toc159986010)

[103-27.5202 AUTOMATION 43](#BM103_27_5202_AUTOMATION_)

[103-27.5203 DATA ELEMENTS 43](#BM103_27_5203_DATA_ELEMENTS__)

[103-27.5204 PROPERTY TRANSACTIONS
44](#BM103_27_5204_PROPERTY_TRANSACTIONS__)

[103-27.5206 GIFTS, DONATIONS AND TRANSFERS
44](#BM103_27_5206_GIFTS__DONATIONS_AND_TRANS)

[103-27.5207 RECEIPTS FOR PROPERTY 44](#receipts-for-property)

[103-27.5208 MARKING PROPERTY 44](#BM103_27_5208_MARKING_PROPERTY__)

[103-27.5209 LIFE EXPECTANCY, DEPRECIATION, AND UNIFORM DESCRIPTION
CODES 44](#BM103_27_5209_LIFE_EXPECTANCY__DEPRECIAT)

[103-27.5210 PERSONAL CUSTODY PROPERTY 45](#personal-custody-property)

[103-27.5211 ACCOUNTING FOR LEASED PROPERTY
46](#__RefHeading___Toc159986019)

[SUBPART 103-27.53 EVALUATION AND MEASUREMENT IN HHS
46](#__RefHeading___Toc159986020)

[SUBPART 103-27.54 RECONCILIATION OF PROPERTY AND FISCAL ACCOUNTS
46](#__RefHeading___Toc159986021)

[103-27.5402 CONTROL ACCOUNTS 46](#__RefHeading___Toc159986022)

[103-27.5403 CONTROL ACCOUNTS ARE ESTABLISHED IN THE GENERAL LEDGER
47](#BM103_27_5403_CONTROL_ACCOUNTS_ARE_ESTAB)

[103-27.5404 DOLLAR VALUES 47](#__RefHeading___Toc159986024)

[103-27.5405 FREQUENCY OF RECONCILIATION OF PROPERTY AND FISCAL RECORDS
47](#__RefHeading___Toc159986025)

[SUBPART 103-27.55 - LOAN OF PERSONAL PROPERTY
47](#__RefHeading___Toc159986026)

[103-27.5501 GENERAL 48](#general-7)

[103-27.5502 POLICY 48](#__RefHeading___Toc159986028)

[103-27.5503-1 ACCOUNTABILITY 50](#__RefHeading___Toc159986029)

[SUBPART 103-27.56 PROPERTY FURNISHED CONTRACTORS AND GRANTEES
50](#__RefHeading___Toc159986030)

[103-27.5701 POLICY 50](#BM103_27_5702_POLICY_)

[103-27.5702 APPEALS 51](#__RefHeading___Toc159986032)

[103-27.5703 ADJUSTMENTS TO THE GENERAL LEDGER
51](#__RefHeading___Toc159986033)

[103-27.5801 PURPOSE 51](#purpose-1)

[103-27.5802 FREQUENCY 52](#frequency)

[103-27.6001 POLICY 52](#policy)

[103-27.6002 GENERAL 53](#__RefHeading___Toc159986037)

[SUBPART 103-27.61 \-- SUPPLY SUPPORT PLANNING
54](#__RefHeading___Toc159986038)

[103-27.6103 SOURCING AND ACQUIRING PROPERTY
55](#sourcing-and-acquiring-property)

[103-27.6104 CRITERIA FOR DETERMINING METHOD OF SUPPLY
55](#criteria-for-determining-method-of-supply)

[103-27.6105 INDEFINITE DELIVERY CONTRACTS
55](#__RefHeading___Toc159986041)

[103-27.6106 CONSOLIDATED PURCHASE FOR DIRECT DELIVERY
56](#consolidated-purchase-for-direct-delivery)

[103-27.6107 DIRECT DELIVERY PROGRAM 56](#direct-delivery-program)

[103-27.6108 SUPPLY THROUGH LOCAL PURCHASE
56](#__RefHeading___Toc159986044)

[103-27.6109 STORAGE AND ISSUE 56](#__RefHeading___Toc159986045)

[SUBPART 103-27.62 \-- SUPPLY PERFORMANCE MEASUREMENT
57](#__RefHeading___Toc159986046)

[SUBPART 101-27.63 \-- INVENTORY MANAGEMENT
57](#__RefHeading___Toc159986047)

[103-27.6301 CUSTOMER ORDERING OF SUPPLIES
58](#__RefHeading___Toc159986048)

[103-27.6302 FEDERAL AUTOMATED SUPPLY ORDERING SYSTEMS
58](#__RefHeading___Toc159986049)

[103-27.6303 NORMAL ORDERING PROCEDURES 58](#normal-ordering-procedures)

[103-27.6304 UNSCHEDULED AND EMERGENCY ORDERS
59](#unscheduled-and-emergency-orders)

[103-27.6305 AUTOMATED SUPPLY MANAGEMENT SYSTEMS
60](#__RefHeading___Toc159986052)

[103-27.6306 ACCOUNTABILITY REQUIREMENTS
60](#accountability-requirements)

[103-27.6306-7 PHYSICAL INVENTORY 63](#__RefHeading___Toc159986054)

[103-27.6308 MAXIMIZING USE OF INVENTORIES
63](#__RefHeading___Toc159986055)

[HHS Logistics Management Manual (LMM) Subchapter G
66](#hhs-logistics-management-manual-lmm-subchapter-g)

[PART 103-34 MOTOR VEHICLE AND WATERCRAFT MANAGEMENT
66](#part-103-34-motor-vehicle-and-watercraft-management)

[103-34.0 General 66](#general-8)

[103-34.000-50 SCOPE 66](#scope-4)

[SUBPART 103-34.1 - MOTOR VEHICLE ACQUISITIONS
67](#subpart-103-34.1---motor-vehicle-acquisitions)

[SUBPART 103-34.2 - REGISTRATION, IDENTIFICATION, AND EXEMPTIONS
69](#subpart-103-34.2---registration-identification-and-exemptions)

[103-34.203 AGENCY IDENTIFICATION 70](#agency-identification)

[SUBPART 103-34.3 AUTHORIZED USE OF GOVERNMENT MOTOR VEHICLES
70](#subpart-103-34.3-authorized-use-of-government-motor-vehicles)

[SUBPART 103-34.4 GUIDANCE FOR MOTOR VEHICLE REPLACEMENT STANDARDS
75](#subpart-103-34.4-guidance-for-motor-vehicle-replacement-standards)

[SUBPART 103-34.5 - SCHEDULED MAINTENANCE
76](#subpart-103-34.5---scheduled-maintenance)

[SUBPART 103-34.6 - REPORTING MOTOR VEHICLE ACCIDENTS
77](#subpart-103-34.6---reporting-motor-vehicle-accidents)

[SUBPART 103-34.8 - U.S. GOVERNMENT FUEL CREDIT CARD
77](#subpart-103-34.8---u.s.-government-fuel-credit-card)

[SUBPART 103-34.9 - FEDERAL MOTOR VEHICLE FLEET REPORT
78](#subpart-103-34.9---federal-motor-vehicle-fleet-report)

[SUBPART 103-34.50 - LOCAL MOTOR VEHICLE MANAGEMENT
78](#subpart-103-34.50---local-motor-vehicle-management)

[103-34.5001 LOCAL MOTOR VEHICLE MANAGER RESPONSIBILITIES
78](#local-motor-vehicle-manager-responsibilities)

[103-34.5002 LOCAL USE OBJECTIVES 79](#local-use-objectives)

[103-34.5003 APPLICATION OF USE GOALS 79](#application-of-use-goals)

[SUBPART 103-34.53 WATERCRAFT 79](#subpart-103-34.53-watercraft)

[103-34.5300 SCOPE 79](#scope-5)

[103-34.5301 WATERCRAFT OPERATIONS 79](#watercraft-operations)

[103-34.5302 WATERCRAFT IDENTIFICATION AND NUMBERS
80](#watercraft-identification-and-numbers)

[103-34.5303 DISPLAY OF FLAGS AND SEAL 80](#display-of-flags-and-seal)

[PART 103-37 AIRCRAFT MANAGEMENT 81](#part-103-37-aircraft-management)

[103-37.5001 GENERAL 81](#general-9)

[103-37.5002 DEFINITION 81](#definition)

[103-37.5003 POLICY 81](#policy-2)

[103-37.5004 PROCEDURES 82](#procedures)

[PART 103-40 \-- TRANSPORTATION AND FREIGHT MANAGEMENT
83](#part-103-40----transportation-and-freight-management)

[103-40.001 Purpose and Scope 83](#purpose-and-scope)

[103-40.002 Traffic Management Policy 83](#traffic-management-policy)

[103-40.003 Aggregate Delivered Costs 84](#aggregate-delivered-costs)

[103-40.004 Most Fuel Efficient Carrier/Mode
84](#most-fuel-efficient-carriermode)

[103-40.005 Equitable Distribution of Traffic
84](#equitable-distribution-of-traffic)

[103-40.006 OPDIV Selection 84](#opdiv-selection)

[103-40.007 Traffic Management Factors 84](#traffic-management-factors)

[103-40.008 OPDIV Freight/Transportation Considerations
85](#opdiv-freighttransportation-considerations)

[SUBPART 103-40.1 APPOINTMENT OF TRANSPORTATION OFFICERS:
RESPONSIBILITIES AND DUTIES
85](#subpart-103-40.1-appointment-of-transportation-officers-responsibilities-and-duties)

[103-40.100 Transportation Officers TO 85](#transportation-officers-to)

[103-40.101 Signing for TO 85](#signing-for-to)

[103-40.102 ATO Authorized To Sign 85](#ato-authorized-to-sign)

[103-40.103 Duties and Responsibilities
85](#duties-and-responsibilities)

[SUBPART 103-40.2 MAINTENANCE OF TARIFFS, TENDERS, AND RELATED
PUBLICATIONS
87](#subpart-103-40.2-maintenance-of-tariffs-tenders-and-related-publications)

[103-40.200 General 87](#general-10)

[103-40.201 Authorized Functions 87](#authorized-functions)

[103-40.202 Funding 87](#funding)

[103-40.203 Receipt and Distribution of Individual Rate Tenders
88](#receipt-and-distribution-of-individual-rate-tenders)

[SUBPART 103-40.3 PARTICIPATION IN PROCEEDINGS BEFORE TRANSPORTATION
REGULATORY BODIES 88](#__RefHeading___Toc159986102)

[SUBPART 103-40.4 FURNISHING TRAFFIC AND RELATED INFORMATION TO
COMMERCIAL CARRIERS
88](#subpart-103-40.4-furnishing-traffic-and-related-information-to-commercial-carriers)

[103-40.401 Data To Be Furnished to Carriers
88](#data-to-be-furnished-to-carriers)

[103-40.402 Letters of Endorsement 89](#letters-of-endorsement)

[103-40.403 Traffic Distribution Information
89](#traffic-distribution-information)

[103-40.404 Claims and Litigation 89](#claims-and-litigation)

[103-40.405 Commodity Descriptions 89](#commodity-descriptions)

[103-40.406 Guarantee of Freight 89](#guarantee-of-freight)

[SUBPART 103-40.5 FREIGHT TRAFFIC NEGOTIATIONS
89](#__RefHeading___Toc159986110)

[103-40.501 Volume Movements 90](#volume-movements)

[103-40.502 Classification Ratings 91](#classification-ratings)

[103-40.911 Explosive and Dangerous Articles
92](#explosive-and-dangerous-articles)

[SUBPART 103-40.10 SHIPMENT BY GOVERNMENT-OWNED TRANSPORTATION EQUIPMENT
92](#subpart-103-40.10-shipment-by-government-owned-transportation-equipment)

[103-40.1001 Policy 92](#policy-3)

[103-40.1002 Public Emergency 92](#public-emergency)

[103-40.1003 Transfer and Return of Government-Owned Transportation
Equipment
92](#transfer-and-return-of-government-owned-transportation-equipment)

[103-40.1004 Documentation of Shipments 92](#documentation-of-shipments)

[SUBPART 103-40.12 SHIPMENT OF MATERIAL
93](#subpart-103-40.12-shipment-of-material)

[103-40.1201 Authority 93](#authority)

[103-40.1202 Emergency Authority 93](#emergency-authority)

[103-40.1203 Routing Authority 93](#routing-authority)

[103-40.1204 Forms Availability 93](#forms-availability)

[103-40.1205 Standing Route Orders 94](#standing-route-orders)

[103-40.1206 Selection of Carrier Factors
94](#selection-of-carrier-factors)

[103-40.1207 Shipment of Hazardous Material or Waste
94](#shipment-of-hazardous-material-or-waste)

[Tariffs and Regulations 95](#tariffs-and-regulations)

[103-40.1207-1 Responsibilities of Hazardous Material and Hazardous
Waste (HAZMAT/HAZWASTE) Personnel
96](#responsibilities-of-hazardous-material-and-hazardous-waste-hazmathazwaste-personnel)

[103-40.1207-2 Responsibilities of HAZMAT/HAZWASTE Packing and Shipping
Personnel
96](#responsibilities-of-hazmathazwaste-packing-and-shipping-personnel)

[103-40.1208 Valuables 97](#valuables)

[103-40.1208-1 Procedures for Shipment of Valuables
98](#procedures-for-shipment-of-valuables)

[SUBPART 103-40.13 TRACING AND EXPEDITING
99](#subpart-103-40.13-tracing-and-expediting)

[103-40.1301 Tracing 99](#tracing)

[103-40.1302 Expediting 100](#expediting)

[103-40.1303 Controls Within the Shipping Activity
100](#controls-within-the-shipping-activity)

[103-40.1304 Procedure for Tracing 100](#__RefHeading___Toc159986136)

[103-40.1304-1 Within the United States - Including Alaska and Hawaii
100](#within-the-united-states---including-alaska-and-hawaii)

[103-40.1304-2 Shipments Routed by Transportation Officers (TOs) or GSA
101](#shipments-routed-by-transportation-officers-tos-or-gsa)

[103-40.1304-3 Shipments From Outside the United States or From Points
in the United States to Overseas Destinations
101](#__RefHeading___Toc159986139)

[103-40.1305 Procedure for Expediting 101](#procedure-for-expediting)

[SUBPART 103-40.14 LOSS OR DAMAGE 101](#__RefHeading___Toc159986141)

[103-40.1402 Survey of Carrier\'s Facilities for Astray Freight
102](#survey-of-carriers-facilities-for-astray-freight)

[103-40.1403 Delivering Astray Freight to Local TOs
102](#delivering-astray-freight-to-local-tos)

[103-40.1404 Processing of Overages, Shortages, and Damages
102](#__RefHeading___Toc159986144)

[103-40.1405 Checking Shipments Upon Delivery
103](#checking-shipments-upon-delivery)

[103-40.1406 Inspection of Lading When Damages Exist
103](#__RefHeading___Toc159986146)

[103-40.1407 Annotation of Carrier\'s Delivery Receipt
104](#annotation-of-carriers-delivery-receipt)

[103-40.1408 Instructions to Receiving Personnel
104](#instructions-to-receiving-personnel)

[103-40.1409 Shortage of Classified or Protected Material
104](#shortage-of-classified-or-protected-material)

[103-40.1410 Receipt of Supplies Damaged in Transit
105](#receipt-of-supplies-damaged-in-transit)

[103-40.1411 Accounting for Transportation on Account of the Government
105](#accounting-for-transportation-on-account-of-the-government)

[103-40.1412 Transportation for Account of the Supplier
105](#transportation-for-account-of-the-supplier)

[103-40.1413 Seal Record 106](#seal-record)

[103-40.1414 Clearance When Shipper Acknowledges Responsibility
106](#clearance-when-shipper-acknowledges-responsibility)

[103-40.1415 Clearance When Property Checked Short Is Received Later
106](#clearance-when-property-checked-short-is-received-later)

[103-40.1416 Loss of Entire Shipment 106](#__RefHeading___Toc159986156)

[103-40.1417 Disposition of Overages 107](#__RefHeading___Toc159986157)

[103-40.1418 Notice to Carriers 107](#notice-to-carriers)

[103-40.1419 Determined Freight Claims 108](#determined-freight-claims)

[103-40.1420 Responsibility for Initiation of Claims Against Ocean
Carriers for Loss or Damage 108](#__RefHeading___Toc159986160)

[103-40.1421 Responsibility for the Initiation of Claims Against
Commercial Land or Air Carriers for Loss or Damage
108](#__RefHeading___Toc159986161)

[103-40.1422 Purchase Order Material 108](#purchase-order-material)

[103-40.1423 Repair of Damaged Articles
109](#repair-of-damaged-articles)

[103-40.1424 Parcel Post Shipments Lost or Damaged
109](#parcel-post-shipments-lost-or-damaged)

[103-40.1425 Parcel Post Shipments by Other Government Agencies and
F.O.B. Origin Shipments From Contractor
109](#parcel-post-shipments-by-other-government-agencies-and-f.o.b.-origin-shipments-from-contractor)

[103-40.1426 Loss or Damage in Excess of Transportation Charges
110](#__RefHeading___Toc159986166)

[103-40.1427 Documentation of Freight Claims
110](#documentation-of-freight-claims)

[103-40.1428 Concealed Loss and Damage Documentation
110](#__RefHeading___Toc159986168)

[103-40.1429 Shipper\'s Concealed Loss and Damage Form
110](#__RefHeading___Toc159986169)

[103-40.1430 When Contractor or Vendor Is Responsible for Filing Claim
Against Carrier
110](#when-contractor-or-vendor-is-responsible-for-filing-claim-against-carrier)

[103-40.1431 Supporting Claim Documents
111](#supporting-claim-documents)

[103-40.1432 Transportation Discrepancy Report (SF 361)
111](#__RefHeading___Toc159986172)

[SUBPART 103-40.15 BILLS OF LADING
112](#subpart-103-40.15-bills-of-lading)

[103-40.1501 Bill of Lading Format 112](#bill-of-lading-format)

[SUBPART 103-40.16 RELOCATION OF ACTIVITY
113](#subpart-103-40.16-relocation-of-activity)

[103-40.1601 General Policy 113](#general-policy-1)

[103-40.1602 Methods of Movement 113](#methods-of-movement)

[103-40.1603 A Package-Type Movement Procured by Contract
114](#a-package-type-movement-procured-by-contract)

[103-40.1604 Special Note 114](#__RefHeading___Toc159986179)

[PART 103-41 \-- TRANSPORTATION PAYMENT AND AUDIT
114](#part-103-41----transportation-payment-and-audit)

[103-118.5 PURPOSE 114](#purpose-2)

[SUBPART 103-118 \-- ORDERING AND PAYING FOR TRANSPORTATION AND
TRANSPORTATION SERVICES
115](#subpart-103-118----ordering-and-paying-for-transportation-and-transportation-services)

[103-118.40 Ordering transportation and transportation services
115](#ordering-transportation-and-transportation-services)

[103-118.45 TSP Billing 115](#tsp-billing)

[103-118.50 Payment for transportation services
115](#payment-for-transportation-services)

[103-118.60 use of electronic commerce 115](#use-of-electronic-commerce)

[103-118.85 use of government contractor issued charge cards
115](#use-of-government-contractor-issued-charge-cards)

[103-118.92 Receipts, TICKETS OR OTHER RECORDS OF CASH PAYMENTS
115](#receipts-tickets-or-other-records-of-cash-payments)

[103-118.140 major mandatory terms and conditions governing the use of
GBLs and bilLs of lading
115](#major-mandatory-terms-and-conditions-governing-the-use-of-gbls-and-bills-of-lading)

[103-118.150 major mandatory terms and conditions governing the use of
passenger transportation documents
115](#major-mandatory-terms-and-conditions-governing-the-use-of-passenger-transportation-documents)

[103-118.175 GBL and GTR retirement 116](#gbl-and-gtr-retirement)

[103-118.185 Referencing contracts when making purchases
116](#__RefHeading___Toc159986192)

[103-118.195 transportation service provider (TSP) processes and
responsibilities
116](#transportation-service-provider-tsp-processes-and-responsibilities)

[103-118.225 final receipt of shipment 116](#final-receipt-of-shipment)

[103-118.230 creation or elimination of a field office approved to
prepare transportation documents
116](#creation-or-elimination-of-a-field-office-approved-to-prepare-transportation-documents)

[103-118.260 quotations, tenders, or contracts
116](#quotations-tenders-or-contracts)

[103-118.265 prepayment audit 116](#prepayment-audit)

[103-118.270 PRepayment audit program 117](#prepayment-audit-program)

[103-118.350 responsibilities of certifying officers
117](#responsibilities-of-certifying-officers)

[103-118.365 responsibilities of disbursing officers
117](#responsibilities-of-disbursing-officers)

[103-118.370 Relief of liability 117](#relief-of-liability)

[103-118.415 Use of postpayment audits 117](#use-of-postpayment-audits)

[103-118.430 information required postpayment audit
117](#information-required-postpayment-audit)

[General Agency Information for All Claims
117](#general-agency-information-for-all-claims)

[103-118.450 TSP transportation claims 117](#tsp-transportation-claims)

[102-118.460 time limit to file a court claim with a TSP for freight
charges, reparations, and loss or damage to the property
117](#time-limit-to-file-a-court-claim-with-a-tsp-for-freight-charges-reparations-and-loss-or-damage-to-the-property)

[103-118.465 interest payments 117](#interest-payments)

[103-118.470 statutory time limits for a TSP on filing a administrative
claim
118](#statutory-time-limits-for-a-tsp-on-filing-a-administrative-claim)

[103-118.485 Time Limit to Issue a Decision on Disputed Claims
118](#__RefHeading___Toc159986209)

[103-118.500 Voluntary Refunds by TSP 118](#__RefHeading___Toc159986210)

[103-118.510 GSA Form 7931, Certificate of Settlement
118](#__RefHeading___Toc159986211)

[103-118.520 Responsibilities and Authorities
118](#responsibilities-and-authorities)

[102-118.530 unpaid TSP billings 118](#unpaid-tsp-billings)

[103-118.535 TSP debt collection procedures
118](#tsp-debt-collection-procedures)

[Transportation Service Provider (TSP) Filing Requirements
119](#__RefHeading___Toc159986215)

[103-118.545 tsp claim information 119](#tsp-claim-information)

[103-118.550 electronic filing for tsp cliams
119](#electronic-filing-for-tsp-cliams)

[103-118.555 supplemental administrative tsp claims
119](#supplemental-administrative-tsp-claims)

[103-118.560 required tsp claim format 119](#required-tsp-claim-format)

[103-118.565 required claim documentation
119](#required-claim-documentation)

[Transportation Service Provider (TSP) and Agency Appeal Procedures for
Postpayment Audits
119](#transportation-service-provider-tsp-and-agency-appeal-procedures-for-postpayment-audits)

[103-118.600 tsp appeal of notice of overcharge
119](#tsp-appeal-of-notice-of-overcharge)

[103-118.605 tsp appeal of Notice of Indebtedness
119](#tsp-appeal-of-notice-of-indebtedness)

[103-118.635 Interest on amounts due from tsp
120](#interest-on-amounts-due-from-tsp)

[103-118.645 tsp administrative claims on collection actions
120](#tsp-administrative-claims-on-collection-actions)

[102-118.650 reviews of settlement Actions
120](#reviews-of-settlement-actions)

[102-118.660 appeal of postpayment audit Decisions
120](#appeal-of-postpayment-audit-decisions)

[Transportation Service Provider (TSP) Non-Payment of a Claim
120](#transportation-service-provider-tsp-non-payment-of-a-claim)

[103-118.670 tsp inability to pay debt 120](#tsp-inability-to-pay-debt)

[HHS Logistics Management Manual (LMM) Subchapter H
121](#hhs-logistics-management-manual-lmm-subchapter-h)

[PART 103-42 UTILIZATION AND DISPOSAL OF HAZARDOUS MATERIALS AND CERTAIN
CATEGORIES OF PROPERTY
121](#part-103-42-utilization-and-disposal-of-hazardous-materials-and-certain-categories-of-property)

[SUBPART 103-42.1 RESERVED 121](#__RefHeading___Toc159986232)

[103-42.001 DEFINITIONS OF TERMS 121](#definitions-of-terms)

[103-42.003 HHS HAZARDOUS MATERIAL MANAGEMENT
121](#hhs-hazardous-material-management)

[103-42.003-50 SCOPE 121](#__RefHeading___Toc159986235)

[103-42.003-50.1 POLICY 121](#__RefHeading___Toc159986236)

[103-42.004-50.2 RESPONSIBILITIES FOR CHLOROFLOUROCARBON (CFC) ITEMS
125](#responsibilities-for-chloroflourocarbon-cfc-items)

[103-42.004-50.3 RESPONSIBILITIES FOR POLYCHLORINATED BIPHENYL (PCB)
ITEMS 126](#__RefHeading___Toc159986238)

[103-42.004-50.4 LEAD CONTAINING PAINT AND ITEMS BEARING LEAD CONTAINING
PAINT 127](#__RefHeading___Toc159986239)

[103-42.005-50 PHYSICAL CUSTODY 127](#__RefHeading___Toc159986240)

[103-42.005-50.1 REPORTING HAZARDOUS PROPERTY FOR UTILIZATION AND SALES
128](#__RefHeading___Toc159986241)

[103-42.006-50 IMPLEMENTATION OF RCRA 129](#__RefHeading___Toc159986242)

[103-42.006-50.1 REPORTING OF HAZARDOUS MISHAPS
129](#__RefHeading___Toc159986243)

[103-42.006-50.2 TRAINING 129](#__RefHeading___Toc159986244)

[103-42.007-50 HAZARDOUS WASTE MANAGEMENT PLAN
129](#__RefHeading___Toc159986245)

[103-42.008-50 MANIFESTS 130](#__RefHeading___Toc159986246)

[103-42.008-50.1 MARKING 130](#__RefHeading___Toc159986247)

[103-42.009-50 RECORD KEEPING AND REPORTING
130](#__RefHeading___Toc159986248)

[103-42.010-50 RECOVERY OF SILVER FROM USED/SPENT PHOTOGRAPHIC FIXER
SOLUTION (HYPO SOLUTION) 130](#__RefHeading___Toc159986249)

[PART 103-43 UTILIZATION OF UNREQUIRED PERSONAL PROPERTY
131](#part-103-43-utilization-of-unrequired-personal-property)

[103-43.000 Scope 131](#scope-6)

[103-43.001 Definitions 131](#definitions)

[103-43.100-50 Receipt and Handling of Excess Personal Property at HHS
Personal Property Management Components
131](#__RefHeading___Toc159986253)

[SUBPART 103-43.1 GENERAL PROVISIONS 131](#__RefHeading___Toc159986254)

[103-43.100-50.002 FACILITIES, EQUIPMENT, AND VEHICLE REQUIREMENTS
132](#facilities-equipment-and-vehicle-requirements)

[103-43.100-50.003 SAFEGUARDING MATERIAL
132](#__RefHeading___Toc159986256)

[103-43.100-50.004 DISPOSAL PROCESSING 133](#disposal-processing)

[103-43.100-50.005 RECEIPT OF PROPERTY 134](#receipt-of-property)

[103-43.100-50.006 STATUS OF PROPERTY 136](#__RefHeading___Toc159986259)

[103-43.100-50.007 TRAINING 137](#__RefHeading___Toc159986260)

[103-43.100-50.1 DISPOSITION TRACKING FOR UNREQUIRED/EXCESS PERSONAL
PROPERTY
137](#disposition-tracking-for-unrequiredexcess-personal-property)

[103-43.100-50.100 GENERAL 137](#general-11)

[103-43.100-50.102 DISCREPANCIES AND ADJUSTMENTS
138](#discrepancies-and-adjustments)

[103-43.100-50.103 PHYSICAL INVENTORY AND LOCATION SURVEY OF UNREQUIRED
PROPERTY IN THE PPMO
138](#physical-inventory-and-location-survey-of-unrequired-property-in-the-ppmo)

[103-43.101 AGENCY UTILIZATION REVIEWS
138](#__RefHeading___Toc159986265)

[103-43.102 REASSIGNMENT OF UNREQUIRED PERSONAL PROPERTY WITHIN HHS
138](#__RefHeading___Toc159986266)

[103-43.103 AGENCY UTILIZATION OFFICIALS (AUO)
139](#__RefHeading___Toc159986267)

[SUBPART 103-43.3 UTILIZATION OF EXCESS PERSONAL PROPERTY
139](#subpart-103-43.3-utilization-of-excess-personal-property)

[103-43.301 HHS PROCEDURE 139](#hhs-procedure)

[103-43.302 HHS COMPONENTS RESPONSIBILITIES
140](#hhs-components-responsibilities)

[103-43.303 Cannibalization 140](#cannibalization)

[103-43.303 RETENTION OF CUSTODY 141](#retention-of-custody)

[103-43.304 REPORTING REQUIREMENTS 141](#reporting-requirements)

[103-43.304-2 EXCESS PERSONAL PROPERTY ON OR WITHIN EXCESS REAL PROPERTY
141](#excess-personal-property-on-or-within-excess-real-property)

[103-43.305 PROPERTY NOT REQUIRED TO BE FORMALLY REPORTED
141](#__RefHeading___Toc159986275)

[103-43.306 ASSISTANCE IN EMERGENCY AND MAJOR DISASTER RELIEF
142](#__RefHeading___Toc159986276)

[103-43.307 ITEMS REQUIRING SPECIAL HANDLING
142](#__RefHeading___Toc159986277)

[103-43.307-5 UNCONDITIONAL GIFTS 143](#unconditional-gifts)

[103-43.307-9 PASSENGER MOTOR VEHICLES 143](#passenger-motor-vehicles)

[103-43.307-12 SHELF-LIFE MATERIALS 144](#shelf-life-materials)

[103-43.307-13 MEDICAL SHELF-LIFE ITEMS HELD FOR NATIONAL EMERGENCY
PURPOSES
144](#medical-shelf-life-items-held-for-national-emergency-purposes)

[103-43.308 WITHDRAWALS AND CORRECTIONS
144](#withdrawals-and-corrections)

[103-43.309 TRANSFERS OF EXCESS PROPERTY
144](#__RefHeading___Toc159986283)

[103-43.309-2 INFORMATION ON AVAILABILITY
145](#information-on-availability)

[103-43.309-3 REIMBURSEMENT 145](#reimbursement)

[103-43.309-5 PROCEDURE FOR EFFECTING TRANSFER
145](#procedure-for-effecting-transfer)

[103-43.310 COSTS AND PROCEEDS 146](#__RefHeading___Toc159986287)

[103-43.311-3 PROPERTY NOT UTILIZED 146](#property-not-utilized)

[103-43.311-4 HAZARDOUS MATERIALS 147](#hazardous-materials-1)

[103-43.312 USE OF EXCESS PROPERTY ON COST REIMBURSEMENT TYPE CONTRACTS
147](#__RefHeading___Toc159986290)

[103-43.313 USE OF EXCESS PERSONAL PROPERTY ON COOPERATIVE AGREEMENTS
147](#__RefHeading___Toc159986291)

[103-43.314 USE OF EXCESS PROPERTY ON GRANTS
147](#__RefHeading___Toc159986292)

[103-43.315 CERTIFICATION OF NON-FEDERAL AGENCY SCREENERS
148](#__RefHeading___Toc159986293)

[SUBPART 103-43.4 Reserved 148](#subpart-103-43.4-reserved)

[PART 103-44 DONATION OF PERSONAL PROPERTY
148](#part-103-44-donation-of-personal-property)

[103-44.000 Scope 148](#scope-7)

[103-44.001 Definitions 148](#definitions-1)

[SUBPART 103-44.1 GENERAL PROVISIONS 148](#__RefHeading___Toc159986298)

[103-44.102 COOPERATION OF HHS COMPONENTS
149](#cooperation-of-hhs-components)

[103-44.103 RESERVED 149](#reserved-2)

[103-44.104 COSTS INCURRED INCIDENT TO DONATION
149](#costs-incurred-incident-to-donation)

[103-44.105 ASSISTANCE IN MAJOR DISASTER RELIEF
149](#__RefHeading___Toc159986302)

[103-44.106 RESERVED 103-44.107 DONATION OF PROPERTY WITHDRAWN FROM SALE
149](#__RefHeading___Toc159986303)

[103-44.108 DONATION OF SPECIAL CATEGORIES OF PROPERTY
149](#__RefHeading___Toc159986304)

[103-44.109 DONATION SCREENING PERIOD 150](#__RefHeading___Toc159986305)

[103-44.110 TRANSFER ORDERS FOR SURPLUS PERSONAL PROPERTY
150](#__RefHeading___Toc159986306)

[103-44.113 REJECTION OF PROPERTY APPROVED FOR TRANSFER
150](#__RefHeading___Toc159986307)

[103-44.115 OVERAGES AND SHORTAGES 151](#__RefHeading___Toc159986308)

[103-44.116 CERTIFICATION OF SCREENERS 151](#certification-of-screeners)

[103-44.117 RECOVERY OF PROPERTY FOR FEDERAL USE
151](#__RefHeading___Toc159986310)

[SUBPART 103-44.2 DONATIONS TO PUBLIC AGENCIES AND ELIGIBLE NONPROFIT
TAX-EXEMPT ACTIVITIES 151](#__RefHeading___Toc159986311)

[103-44.200 SCOPE 151](#scope-8)

[103-44.201 AUTHORITY 151](#authority-1)

[103-44.202 STATE PLAN OF OPERATION 151](#state-plan-of-operation)

[103-44.203 ALLOCATION OF DONABLE PROPERTY
152](#allocation-of-donable-property)

[103-44.204 CERTIFICATION AND AGREEMENT BY A STATE AGENCY
152](#certification-and-agreement-by-a-state-agency)

[103-44.205 PROPERTY IN THE POSSESSION OF A STATE AGENCY
152](#property-in-the-possession-of-a-state-agency)

[103-44.206 COOPERATIVE AGREEMENTS 152](#cooperative-agreements)

[103-44.207 ELIGIBILITY 152](#eligibility)

[103-44.208 PROPERTY DISTRIBUTED TO DONEES
152](#property-distributed-to-donees)

[SUBPART 103-44.3 DONATIONS OF FOREIGN EXCESS PROPERTY
152](#subpart-103-44.3-donations-of-foreign-excess-property)

[103-44.300 SCOPE 152](#LMM_103_44_300_SCOPE_)

[103-44.303 DONATION APPROVAL 153](#__RefHeading___Toc159986323)

[103-44.304 SHIPMENT 153](#__RefHeading___Toc159986324)

[SUBPART 103-44.4 DONATIONS TO SERVICE EDUCATIONAL ACTIVITIES
153](#subpart-103-44.4-donations-to-service-educational-activities)

[103-44.4.001-50 PURPOSE AND SCOPE 153](#purpose-and-scope-1)

[103-44.4.001-50.1 POLICY FOR TRANSFER OF EXCESS HHS-OWNED EQUIPMENT
153](#policy-for-transfer-of-excess-hhs-owned-equipment)

[103-44.4.002-50 AUTHORITY 155](#authority-2)

[103-44.4.003-50 ESTABLISHING THE TRANSFER PROGRAM
155](#establishing-the-transfer-program)

[103-44.4.004-50 OPERATING THE PROGRAM
156](#__RefHeading___Toc159986330)

[103-44.4.004-50.1 SCREENING OF AVAILABLE EXCESS EQUIPMENT
156](#__RefHeading___Toc159986331)

[103-44.4.004-50.2 TRANSFER OF EDUCATION-RELATED EQUIPMENT
156](#transfer-of-education-related-equipment)

[103-44.4.004-50.3 SOFTWARE TRANSFER 157](#__RefHeading___Toc159986333)

[103-44.4.004-50.4 ANNUAL REPORTS TO GSA OF TRANSFER
157](#__RefHeading___Toc159986334)

[103-44.4.005-50 ELIGIBLE ORGANIZATIONS 157](#eligible-organizations)

[SUBPART 103-44.5 DONATIONS TO PUBLIC AIRPORTS
158](#subpart-103-44.5-donations-to-public-airports)

[103-44.500 GENERAL 158](#general-12)

[SUBPART 103-44.6 DONATIONS TO THE NATIONAL AMERICAN RED CROSS
158](#subpart-103-44.6-donations-to-the-national-american-red-cross)

[103-44.600 GENERAL 158](#BM103_44_600_GENERAL_)

[103-44.601 DONATION APPROVAL 159](#__RefHeading___Toc159986340)

[103-44.602 COOPERATION OF HOLDING AGENCIES
159](#__RefHeading___Toc159986341)

[103-44.604 DONABLE PROPERTY DETERMINED UNUSABLE BY THE RED CROSS
159](#__RefHeading___Toc159986342)

[PART 103-45 SALE, ABANDONMENT OR DESTRUCTION OF PERSONAL PROPERTY
159](#part-103-45-sale-abandonment-or-destruction-of-personal-property)

[103-45.000 Scope 159](#scope-9)

[103-45.001 Definitions 159](#definitions-2)

[SUBPART 103-45.1 GENERAL PROVISIONS
159](#subpart-103-45.1-general-provisions)

[103-45.101 APPLICABILITY 160](#__RefHeading___Toc159986347)

[103-45.102 NEEDS OF FEDERAL AGENCIES HAVE PRIORITY
160](#__RefHeading___Toc159986348)

[103-45.103 SALES RESPONSIBILITIES 160](#__RefHeading___Toc159986349)

[103-45.103-2 RESPONSIBILITIES OF HHS 160](#responsibilities-of-hhs)

[103-45.104 CARE AND HANDLING PENDING DISPOSAL
160](#__RefHeading___Toc159986351)

[103-45.105 EXCLUSIONS AND EXEMPTIONS TO GSA SALES
160](#__RefHeading___Toc159986352)

[103-45.106 PROPERTY CONTROLLED BY OTHER LAW
161](#__RefHeading___Toc159986353)

[SUBPART 103-45.3 SALE OF PERSONAL PROPERTY
161](#subpart-103-45.3-sale-of-personal-property)

[103-45.300 SCOPE 161](#BM103_45_300_SCOPE_)

[103-45.302 SALE TO GOVERNMENT EMPLOYEES
161](#__RefHeading___Toc159986356)

[103-45.304 SALES METHODS AND PROCEDURES
162](#__RefHeading___Toc159986357)

[SUBPART 103-45.9 ABANDONMENT OR DESTRUCTION OF PERSONAL PROPERTY
163](#subpart-103-45.9-abandonment-or-destruction-of-personal-property)

[103-45.900 SCOPE 163](#__RefHeading___Toc159986359)

[103-45.900-2 WHEN TO INITIATE ABANDONMENT OR DESTRUCTION PROCEDURES
163](#when-to-initiate-abandonment-or-destruction-procedures)

[SUBPART 103-45.10 RECOVERY OF PRECIOUS METALS
163](#__RefHeading___Toc159986361)

[103-45.1000 SCOPE 163](#BM103_45_1000_SCOPE_)

[103-45.1002-1 PRECIOUS METALS RECOVERY SURVEYS
164](#precious-metals-recovery-surveys)

[103-45.1002-2 HHS COMPONENT REPORTING REQUIREMENTS
164](#hhs-component-reporting-requirements)

[103-45.1002-3 PRECIOUS METALS RECOVERY PROGRAM MONITOR
164](#precious-metals-recovery-program-monitor)

[103-45.1002-4 INTERNAL AUDITS 164](#internal-audits)

[103-45.1003 RECOVERY OF SILVER FROM PRECIOUS METALS BEARING SCRAP
164](#__RefHeading___Toc159986367)

[103-45.1003-1 RECOVERY OF SILVER FROM USED HYPO SOLUTION
165](#__RefHeading___Toc159986368)

[103-45.1004-1 COMPONENT PARTICIPATION IN THE DOD PRECIOUS METALS
RECOVERY PROGRAM 165](#__RefHeading___Toc159986369)

[SUBPART 103-45.47 REPORTS 166](#subpart-103-45.47-reports)

[103-45.4700 SCOPE 166](#BM103_45_4700_SCOPE_)

[103-45.4701 PERFORMANCE REPORTS 166](#__RefHeading___Toc159986372)

[SUBPART 103-45.49 ILLUSTRATION OF FORMS
166](#subpart-103-45.49-illustration-of-forms)

[103-45.4900 SCOPE Refer to FPMR 101-45.4900 for forms.
166](#scope-refer-to-fpmr-101-45.4900-for-forms.)

[PART 103-46 UTILIZATION AND DISPOSAL OF PERSONAL PROPERTY PURSUANT TO
EXCHANGE/SALE AUTHORITY
166](#part-103-46-utilization-and-disposal-of-personal-property-pursuant-to-exchangesale-authority)

[103-46.000 SCOPE 166](#BM103_46_000_SCOPE_)

[103-46.001 DEFINITIONS 166](#__RefHeading___Toc159986377)

[SUBPART 103-46.2 EXCHANGE/SALE CONSIDERATIONS
167](#__RefHeading___Toc159986378)

[103-46.201 HHS RESPONSIBILITIES
167](#BM103_46_201_HHS_RESPONSIBILITIES_)

[103-46.201-2 TRANSFER AND EXCHANGE BETWEEN FEDERAL AGENCIES
167](#transfer-and-exchange-between-federal-agencies)

[103-46.202 RESTRICTIONS AND LIMITATIONS
167](#restrictions-and-limitations)

[SUBPART 103-46.3 EXCHANGE/SALE METHODS AND REPORTS
168](#subpart-103-46.3-exchangesale-methods-and-reports)

[103-46.300 SCOPE 168](#BM103_46_300_SCOPE_)

[103-46.303 HHS SALES METHODS AND PROCEDURES
168](#__RefHeading___Toc159986384)

[103-46.305 REPORTS 169](#reports)

[PART 103-48 UTILIZATION, DONATION OR DISPOSAL OF ABANDONED AND
FORFEITED PERSONAL PROPERTY
169](#part-103-48-utilization-donation-or-disposal-of-abandoned-and-forfeited-personal-property)

[103-48.000 SCOPE 169](#__RefHeading___Toc159986387)

[103-48.001 DEFINITIONS 169](#__RefHeading___Toc159986388)

[SUBPART 103-48.1 GENERAL PROVISIONS
169](#subpart-103-48.1-general-provisions)

[103-48.100 SCOPE 169](#scope-10)

[103-48.101 FORFEITED OR VOLUNTARILY ABANDONED PROPERTY
170](#forfeited-or-voluntarily-abandoned-property)

[103-48.102 ABANDONED OR OTHER UNCLAIMED PROPERTY
170](#abandoned-or-other-unclaimed-property)

[SUBPART 103-48.2 DONATION OF ABANDONED OR FORFEITED PERSONAL PROPERTY
170](#subpart-103-48.2-donation-of-abandoned-or-forfeited-personal-property)

[SUBPART 103-48.3 DISPOSAL OF ABANDONED OR FORFEITED PERSONAL PROPERTY
170](#__RefHeading___Toc159986394)

[103-48.300 SCOPE 170](#scope-11)

[103-48.302 DISTILLED SPIRITS, WINE, AND MALT BEVERAGES
170](#distilled-spirits-wine-and-malt-beverages)

[103-48.303 FIREARMS 170](#firearms)

[103-48.304 PROPERTY OTHER THAN DISTILLED SPIRITS, WINE, AND MALT
BEVERAGES; AND FIREARMS
170](#property-other-than-distilled-spirits-wine-and-malt-beverages-and-firearms)

[103-48.305 DISPOSITION OF PROCEEDS FROM SALE
171](#disposition-of-proceeds-from-sale)

[SUBPART 103-48.49 ILLUSTRATION OF FORMS
171](#subpart-103-48.49-illustration-of-forms)

[PART 103-49 UTILIZATION, DONATION AND DISPOSAL OF FOREIGN GIFTS AND
DECORATIONS
171](#part-103-49-utilization-donation-and-disposal-of-foreign-gifts-and-decorations)

[103-48.4900 SCOPE 171](#__RefHeading___Toc159986402)

[103-49.000 SCOPE 171](#__RefHeading___Toc159986403)

[103-49.001 DEFINITIONS 171](#__RefHeading___Toc159986404)

[SUBPART 103-49.1 GENERAL PROVISIONS
171](#subpart-103-49.1-general-provisions)

[103-49.101 CUSTODY OF GIFTS AND DECORATIONS
171](#__RefHeading___Toc159986406)

[103-49.102 CARE AND HANDLING 172](#__RefHeading___Toc159986407)

[103-49.103 INFORMATION ON AVAILABILITY FOR FEDERAL UTILIZATION OR
DONATION 172](#__RefHeading___Toc159986408)

[SUBPART 103-49.2 UTILIZATION OF FOREIGN GIFTS AND DECORATIONS
172](#subpart-103-49.2-utilization-of-foreign-gifts-and-decorations)

[103-49.200 SCOPE. 172](#__RefHeading___Toc159986410)

[103-49.202 TRANSFERS TO OTHER FEDERAL AGENCIES
173](#__RefHeading___Toc159986411)

[SUBPART 103-49.3 DONATION OF FOREIGN GIFTS AND DECORATIONS
173](#subpart-103-49.3-donation-of-foreign-gifts-and-decorations)

[103-49.300 SCOPE 173](#__RefHeading___Toc159986413)

[SUBPART 103-49.4 SALE OR DESTRUCTION OF FOREIGN GIFTS AND DECORATIONS
174](#subpart-103-49.4-sale-or-destruction-of-foreign-gifts-and-decorations)

[103-49.400 SCOPE 174](#scope-12)

[103-49.401 APPROVAL OF SALES BY THE SECRETARY OF STATE
174](#approval-of-sales-by-the-secretary-of-state)

[103-49.402 SALE OF GIFTS BY GSA TO INTERESTED RECIPIENTS
174](#sale-of-gifts-by-gsa-to-interested-recipients)

[103-49.403 SALE OF GIFTS BY GSA TO THE PUBLIC
174](#sale-of-gifts-by-gsa-to-the-public)

[103-49.404 PROCEEDS FROM SALES 174](#proceeds-from-sales)

[103-49.405 DESTRUCTION OF GIFTS AND DECORATIONS
174](#destruction-of-gifts-and-decorations)

[HHS Logistics Management Manual (LMM) Subchapter K
175](#hhs-logistics-management-manual-lmm-subchapter-k)

[GLOSSARY 176](#glossary-1)

# HHS Logistics Management Manual (LMM) Subchapter A

## SUBPART 103-1.1 LOGISTICS MANAGEMENT

### 103-1.100 SCOPE

This subpart introduces a system by which the Department of Health and
Human Services (HHS) carries out and supplements the Federal Property
Management Regulations (FPMR) (41 CFR Chapter 101) and the Federal
Management Regulation (FMR) (41 CFR Chapter 102) issued by the General
Services Administration (GSA).

### 103-1.101 FEDERAL PROPERTY MANAGEMENT REGULATION SYSTEM/ FEDERAL MANAGEMENT REGULATION SYSTEM

The [Federal Property Management Regulations
(FPMR)](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)
41 CFR 101 and the [Federal Management Regulation (FMR) 41 CFR Chapter
102](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfrv3_06.html),
prescribe the Federal policies, procedures, and delegations of authority
on the management of property, and other logistics programs and
activities. Proposed changes to the
[FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfrv3_06.html)
are published in the Federal Register. Agencies are provided time to
review proposed changes and provide their comments.

The
[FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfrv3_06.html)
are issued in loose leaf and bound format.

As primary sources of the guidance contained in this manual, copies of
the
[FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfrv3_06.html)
should be kept in all component logistics management activities. 

### 103-1.102 STATUTORY PROVISIONS

A.  Material in this manual is based upon existing laws, executive
    orders, and mandatory regulations of cognizant agencies. 

[Federal Property and Administrative Services Act of 1949
(FPAS)](http://www.senate.gov/~epw/fpasa49.pdf), as amended (40 U.S.C.
483(b)) states: \"Each executive agency shall (1) maintain adequate
inventory controls and accountability systems for property under its
control, (2) continuously survey property under its control to determine
which is excess property, and promptly report such property to the
Administrator, (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 authority delegated and regulations
prescribed by the Administrator\". 

United States Code (31 U.S.C., Money and Finance) 31 U.S.C. 3511(a) The
Comptroller General shall prescribe the accounting principles,
standards, and requirements that the head of each executive agency shall
observe (P.L. 97-258, Sept 13, 1982, 96 Stat. 959). Public Law 84-863,
August 1, 1956, Section 2 requires that the accounting system of each
agency shall include monetary property accounting records (31 U.S.C.
66a(a)). 

[The Federal Managers Financial Integrity Act of 1982
(FMFIA)](http://www.whitehouse.gov/omb/financial/fmfia1982.html),
Section 2 requires that administrative controls of each executive agency
shall be established to provide reasonable assurances that funds,
property, and other assets are protected against waste, loss,
unauthorized use, or misappropriation. 

[The Chief Financial Officers Act (CFO) of
1990](http://wwwoirm.nih.gov/itmra/cfoact.html) (P.L. 101-576) requires
that certain activities within HHS prepare auditable financial
statements annually. This would include the application of agency asset
management systems, and specifically systems for personal property and
inventory management and control.

### 103-1.103 TEMPORARY HHS LOGISTICS MANAGEMENT ISSUANCES

The LMM includes manual circulars which are a temporary-type of issuance
with a fixed effective duration. Interim instructions may be issued in
circular form when time or exceptional circumstances do not allow
publication of a final policy. The effective dates of the temporary LMM
will be stated on the circular, with conversion to permanent form made
as necessary.

### 103-1.104 PUBLICATION AND DISTRIBUTION

A.  Material published in the LMM and manual circulars pertaining
    thereto will not be published in the Federal Register unless
    it affects the public. The LMM will be posted on KnowNet for use by
    HHS employees. 

B.  The
    [FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfrv3_06.html)
    and LMM are available to HHS employees whose responsibilities
    require them. They should be directed to all levels of management
    where determinations regarding logistics, including personal
    property, supply, transportation and warehousing, etc., are
    considered. Distribution is made to offices that have requested
    placement on the manual mailing lists. The HHS General
    Administration Manual describes how to obtain copies, and how to be
    placed on the mailing list for changes. Each operating division and
    regional office of the Department has a Directives Distribution
    Coordinator, to whom requests for manuals and changes may be made.
    Form HHS-68, Request for Staff Manual Materials and Mailing List
    Changes is to be used.

C.  All OS, OPDIV, and RO logistics offices shall submit copies of their
    implementing policies and procedures for logistics management to the
    Office of Acquisition Management and Policy (OAMP), Assistant
    Secretary for Administration and Management (ASAM) for review and
    approval prior to their issuance.

#### 103-1.104-51 MAINTENANCE OF ISSUANCES

> Recipients of the
> [FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_01/41cfrv3_01.html)
> and LMM should file all new material promptly. New policies and
> procedures requiring implementation or a change in operations should
> be reported to the appropriate logistics management staff.
>
> Changes or additions to the LMM will be forwarded to recipients with a
> covering transmittal notice. Each notice will be serially numbered and
> will specify the material transmitted, material superseded (if any),
> filing instructions and distribution codes.  When appropriate,
> background information discussing the reasons for the transmittal will
> be included.

Upon separation or transfer to other Department positions, employees
should leave the LMM for successors. In unusual circumstances, an
employee may be permitted to retain copies when the need is adequately
justified and approved by the component Administrative Officer and
Property Management Officer.

### 103-1.107 CONSULTATION REGARDING LMM

Development of the LMM is accomplished through coordination and
participation with the Executive Committee for Logistics (ECL) and those
Departmental components having a functional interest in the subject
matter.

### 103-1.108 HHS IMPLEMENTATION AND SUPPLEMENTATION OF FPMR/FMR

The LMM implements and supplements the applicable portions of the
[FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_01/41cfrv3_01.html).

Material published in the LMM expands upon related material in the
[FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_01/41cfrv3_01.html).
Supplementing material deals with subject matter not specifically
covered in the
[FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_01/41cfrv3_01.html).
Sections and paragraphs of this manual are cross-referenced to the
[FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_01/41cfrv3_01.html)
where and when appropriate. Cross reference citations are made at the
end of sections or paragraphs.

### 103-1.109 NUMBERING OF LMM

The numbering system used in the LMM conforms to that of the
[FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfrv3_06.html)
except chapter number.

A numbering system of .50 or higher is used for parts, subparts,
sections or subsections which supplement the
[FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfrv3_06.html).

### 103-1.110 DEVIATION/REVISION

The
[FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_01/41cfrv3_01.html)
is applicable to all HHS operating components. They shall not be
deviated from, except as specifically authorized by the Department.

A deviation is considered to be any of the following:

1.  Any policy, procedure, method, or practice inconsistent with that
    prescribed in this manual.

2.  Use or alteration of a Standard Form or HHS Form except as
    authorized by this manual.

Requests for deviation shall state clearly the nature of the required
deviation and the circumstances justifying the deviation. 

Requests should be submitted through administrative channels, to the
Office of Acquisition Management and Policy (OAMP), Assistant Secretary
for Administration and Management (ASAM) and contain the following
information:

1.  The title and citation of the FMR provision from which the agency
    wishes to deviate.

2.  The name and telephone number of an agency contact who can discuss
    the reason for the deviation.

3.  The reason for the deviation.

4.  A statement about the expected benefits of using the deviation (to
    the extent possible, expected benefits should be stated in
    measurable terms).

5.  A statement about possible use of the deviation in other agencies or
    Government-wide.

6.  The duration of the deviation.

After review by HHS, the request for deviation from the
[FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_01/41cfrv3_01.html)
will be forwarded to the General Services Administration (GSA) for
appropriate action or returned for additional information.

In the interest of establishing and maintaining uniformity to the
maximum extent feasible, deviations from the LMM shall be kept to a
minimum. 

### 103-1.150 PERFORMANCE MEASURES

OS and OPDIV Heads shall implement the HHS Logistics Performances
Measures to monitor the effectiveness, efficiency, and control of their
logistics programs.

### 103-1.151 SYSTEMS DEVELOPMENT

HHS logistics components contemplating development of or changes to
their automated logistics management systems or HHS logistics forms
shall first inform the Office of Acquisition Management and Policy
(OAMP), Assistant Secretary for Administration and Management (ASAM).
These systems and forms are not to duplicate Department-wide systems
unless approved by OAMP.

Logistics components shall use the performance measures developed for
the logistical processes when planning any automated systems (i.e.,
[supply](http://www.knownet.hhs.gov/log/supply_guide.htm#SUPPLY PERFORMANCE INDICATORS),
[personal
property](http://www.knownet.hhs.gov/log/performance_measures.htm),
transportation, etc.).

### 103-1.152 OFFICIAL USE OF GOVERNMENT PROPERTY

No employee of the Department shall use or authorize the use of
Government property for other than official purposes. Each Departmental
component shall maintain an effective personal property accountability
and control system that meets the requirements of this manual.

The penalty for misuse of government property is: Whoever embezzles,
steals, purloins, or knowingly converts to his use or the use of
another, or without authority, sells, conveys or disposes of any record,
voucher, money, or thing of value of the United States or of any
department or agency thereof, or any property made or being made under
contract for the United States or any department or agency thereof; or
whoever receives, conceals, or retains the same with intent to convert
it to his use or gain, knowing it to have been embezzled, stolen,
purloined or converted shall be fined under this title or imprisoned not
more than ten years, or both.

If the value of such property does not exceed the sum of \$1,000, he
shall be fined under this title or imprisoned not more than one year, or
both.

The word "value" means face, par, or market value, or cost price, either
wholesale or retail, whichever is greater. (18 U.S.C. 641)

Employee misuse of a Department vehicle is subject to disciplinary
action which may range from a suspension of one (1) month or, up to and
including, removal from Government employment (31 USC 1349). 

### 103-1.153 OTHER REFERENCES

A.  TITLE 18 USC, Section 641, on the Care and Protection of Government
    Property.

B.  [FEDERAL ACQUISITION REGULATION](http://www.arnet.gov/far/)
    ([FAR](http://www.arnet.gov/far/)), which prescribes policies and
    procedures for the acquisition of supplies and services with
    appropriated funds.

C.  [FEDERAL ELECTRONICS
    CHALLENGE](http://www.federalelectronicschallenge.net/agency.htm)
    guidance.

D.  DEPARTMENT OF HEALTH AND HUMAN SERVICES, GENERAL ADMINISTRATION
    MANUAL, establishes the organization, responsibilities, and
    functions of the Department.

E.  PROCEDURES FOR THE USE OF PROCUREMENT CREDIT CARDS MEMORANDUM, dated
    December 15, 1989, which establishes the Department\'s policy and
    procedures for credit card purchases of \$25,000 or less. (Refer to
    LMM 103-26 and 103-27 for further information concerning control and
    accountability of credit cards).

F.  DEPARTMENT ACCOUNTING MANUAL, which provides guidance regarding
    accounting principles, standards, and related requirements for
    agencies to use in development of their accounting systems and
    internal auditing programs.

G.  [DEPARTMENT OF HEALTH AND HUMAN SERVICE ACQUISITION REGULATION
    (HHSAR)](http://www.knownet.hhs.gov/acquisition/hhsar), issued as
    Chapter, Title 48, the Federal Acquisition Regulations System, which
    established uniform acquisition policies and procedures within the
    Department.

### 103-1.154 GLOSSARY 

This manual incorporates a [glossary of logistics
terms](http://www.knownet.hhs.gov/log/LMM/103-27_6.htm#103-27.6400 DEFINITIONS.)
as an appendix. Definitions are not a part of the text unless considered
essential for comprehension of a specific subject. The FPMR and FMR are
also cited as appropriate for term definitions.

[]{#__RefHeading___Toc159985921 .anchor}**[SUBPART 103-1.49 \--
ILLUSTRATION OF FORMS AND EXHIBITS]{.underline}\
**\
**103-1.4900 SCOPE**

Subparts that end with the number .49 are used to illustrate U.S.
Government Standard Forms whose numbers are preceded by SF; General
Services Administration forms whose numbers are preceded by GSA; and
Departmental forms and exhibits whose numbers are preceded by HHS.
However, where appropriate within the manual to enhance clarity, a few
HHS forms and exhibits illustrate text in subparts that do not end with
the number .49.

Most HHS forms (either mandatory or optional) are illustrated and
explained with the applicable subject matter in the various subparts of
the manual. 

## SUBPART 103-1.50 \-- AUTHORITIES AND RESPONSIBILITIES 

### 103-1.5000 SCOPE

This subpart establishes authorities, roles, and responsibilities within
HHS as they pertain to the planned acquisition, efficient utilization,
physical/automated property systems accounting, and the appropriate
disposition of personal property including the management of supply,
aircraft, motor vehicles, and transportation and traffic management.

[]{#__RefHeading___Toc159985924 .anchor}**103-1.5001 POLICY**\
It is HHS' policy that each OS, OPDIV, and RO establishes and supports
logistics management functions in its organization and ensures that the
logistics functions meet program needs economically and efficiently,
according to applicable Federal statutes, regulations and the LMM.

[]{#__RefHeading___Toc159985925 .anchor}**103-1.5002 GENERAL**\
Objectives of the HHS logistics management program are to provide:

A system for effectively managing Government personal property and
supplies in the custody or possession of HHS organizations, HHS
contractors, and grantee organizations.

Uniform principles, policies, standards, and procedures for economical
and efficient management of Government personal property that are
sufficiently broad in scope and flexible in nature to simplify
adaptation to local needs and various kinds of operations. These
include: 

A.  Effective planning and scheduling of logistics requirements to
    assure that supplies, equipment, and transportation are available to
    serve operations while also maintaining inventory levels at the
    lowest practicable level.

B.  Assurance through leadership and direction that HHS will:

C.  Obtain maximum utilization of property for official purpose only.

D.  Maintain adequate inventory levels and accountability records and
    controls.

E.  Avoid unnecessary costs of acquisition by ensuring utilization of
    existing property has been considered prior to acquisition.

F.  Care for property through proper preservation, preventive
    maintenance, handling and storage.

G.  Assure that property is available for reassignment to HHS components
    and other Government activities when such property is no longer
    required for existing or pending projects or programs.

H.  Inspect new property to assure receipt of proper quantities in
    acceptable condition, and that it complies with specifications and
    standards.

I.  Submit logistics management reports as required.

J.  Conduct periodic management reviews of logistics activities,
    including internal control reviews under the FMFIA program for
    determining compliance with prescribed policies and regulations, and
    the need for guidance or training. The reviews shall be conducted by
    qualified personnel preferably assigned positions not directly
    accountable or responsible for the property in the area reviewed.

### 103-1.5003 DELEGATIONS OF AUTHORITY

Certain logistics management functions are formally assigned to one
person and one person only under a specific grant of authority such as
law, executive order, or regulation. These responsibilities and
authorities often cannot be reassigned or delegated to another
individual. Under these circumstances the specific individual is
directly accountable for accomplishing the duties for which he or she is
explicitly empowered and responsible. Other logistics management
responsibilities, however, are assigned in a less formal, more flexible
fashion. In either situation, in order to eliminate delay, avoid
unnecessary involvement by successive levels of management, and to
facilitate mission performance, it is desirable to assign/delegate
logistics management responsibilities and authorities to the lowest
practicable organizational level - that is the level where the work is
most effectively and efficiently performed.

Delegations should be reviewed biannually and updated if necessary.
Accordingly, specific re-delegations of the authority vested in the
Secretary and the Assistant Secretary for Administration and Management
are made to Administrative Services Center, OS, Heads of Operating
Divisions, and Regional Directors. In HHS Regional Offices, the
logistics management function is the responsibility of the Regional
Director who has re-delegated the task through the Regional
Administrative Support Center to the Division of Administrative Services
for the logistics management functions listed in 103-1.5000. The
authority to prescribe and issue Departmental policies, regulations, and
procedures for logistics management will not be re-delegated and remains
solely within the jurisdiction of the Assistant Secretary for
Administration and Management, Office of Acquisition Management and
Policy.

Chapter 8-100 of the HHS General Administration Manual states the policy
and procedure applicable to the delegations of authority and
responsibility.

### 103-1.5004 RE-DELEGATIONS

A.  Delegated authority should be re-delegated to the lowest practical
    level commensurate with the assignment of responsibility unless
    re-delegation is prohibited. The delegating official may restrict
    further re-delegation as he/she deems appropriate.

B.  Re-delegations of authority shall be in writing over the signature
    of the official delegating the authority; shall specify the
    authority delegated; and shall conform to Chapter 8-100 of the HHS
    General Administration Manual.

C.  Re-delegations of authorities by regional program representatives
    shall be exercised according to the policies and procedures of the
    respective regional offices.

[]{#__RefHeading___Toc159985928 .anchor}**103-1.5005 PRIMARY AUTHORITY
AND RESPONSIBILITY**

Pursuant to delegation from the Secretary, the Assistant Secretary for
Administration and Management (ASAM) has the authority and primary
responsibility for providing direction, leadership, and general
supervision in the development and administration of an effective and
efficient logistics management system through: 

A.  The establishment of Departmental policies and procedures satisfying
    the requirements of law, regulations, and sound management
    practice. 

B.  The review, oversight, career development and training, evaluation
    and improvement of logistics management programs, functions,
    operations, and procedures throughout the Department. 

C.  Deciding the necessity for, and making the appropriate
    recommendation to the Secretary regarding the use of Government-
    owned or controlled motor vehicles between home and place of
    employment by officials and employees of the Department.

### 103-1.5006 OFFICE OF ACQUISITION MANAGEMENT AND POLICY (OAMP), ASSISTANT SECRETARY FOR ADMINISTRATION AND MANAGEMENT (ASAM) 

The Office of Acquisition Management and Policy (OAMP), Assistant
Secretary for Administration and Management (ASAM) is responsible for
developing, promoting, monitoring, administering, coordinating, and
evaluating the Department-wide logistics management program and shall:

A.  Develop and maintain Departmental logistics management policies,
    standards and procedures;

B.  Develop and publish Departmental issuances relating to logistics
    management;

C.  Represent the Department with GSA and other agencies on matters
    relating to logistics management;

D.  Submit consolidated Departmental reporting to GSA, Congress, and
    other Federal agencies, as required;

E.  Provide staff assistance to Departmental organizations performing
    logistics management functions;

F.  Develop logistics performance measures, provide training,
    information and procedures to help Departmental organizations in
    managing vital programmatic logistics resources. 

G.  Conduct reviews and appraisals of Departmental personal property,
    supply, and transportation management functions.

[]{#__RefHeading___Toc159985930 .anchor}**103-1.5007 EXECUTIVE COMMITTEE
FOR LOGISTICS (ECL)**

**\
**The [Executive Committee for Logistics
(ECL)](http://knownet.hhs.gov/log/Teams/ecl.htm) is responsible through
the Assistant Secretary for Management and Budget and the Director for
Acquisition Management and Policy to help in executing the primary
responsibilities for logistics management assigned to the Secretary. The
ECL has specific responsibility to help in the planning, development and
distribution of information for Department-wide logistics management.
The ECL is chaired by the senior logistics officer on the staff of the
Assistant Secretary for Administration and Management. Members are the
incumbents of the senior logistics positions within the HHS components
along with a regional representative. The positions held by ECL members
are normally the heads of administrative areas which would include
logistics management (i.e. Director, Office of Management Services,
Director, Division of Logistics Services, Director, Administrative
Services Center, etc.)

### 

[]{#__RefHeading___Toc159985931 .anchor}**103-1.5008 HEADS OF OPERATING
DIVISIONS**

**\
**The heads of Operating Divisions (OPDIVS) have an inherent
responsibility to manage all assets under their jurisdiction.
Specifically, they are responsible for:

A.  The effective administration and maintenance of an accountability
    and control system that encompasses all assets within the OPDIV. The
    control system shall be consistent with the requirements of this
    manual and shall be uniformly applied throughout the OPDIV.

B.  The establishment of a Management Control Plan that ensures
    management\'s accountability at each echelon and provides optimum
    protection against fraud, waste, misuse, and abuse of Government
    property during the receipt, use, movement, maintenance, and
    disposal of equipment.

OS, OPDIV Heads and ROs (except the Public Health Service (PHS) which
may designate Property Management Officers at the PHS component level),
will formally appoint a Property Management Officer (PMO). The PMO is
the individual who has  the knowledge, position and authority to account
for the effective control of acquisition, use and disposal of personal  
property. The PMO of each Departmental component should make program
management officers aware of the need to keep him/her fully informed of
program objectives and changes affecting logistics management. The PMO
is responsible for coordinating his/her analysis of program needs
directly with the personnel responsible for the various segments of the
total operation such as property accountability, supply, motor
vehicle/aircraft, and transportation/traffic management. 

[]{#__RefHeading___Toc159985932 .anchor}**103-1.5009 RESPONSIBILITIES OF
PROPERTY MANAGEMENT OFFICERS (PMO)**

Property Management Officers are the officials assigned to operate
logistics management organizations. Property Management Officers are
generally not involved in the day-to-day operational activities of
property, supply, motor vehicle, and transportation management staff.
Their actions and those of their employees support the execution of the
responsibilities assigned to the Property Management Officer. They work
with other members of the activity to coordinate property planning and
utilization to ensure effective and economical service in meeting
operational needs. Their responsibilities include the following: 

A.  Providing leadership, and guidance in the proper accounting,
    utilization, care, and disposal of property.

B.  Ensuring the requirements development for property based on a
    determined need within the program objectives.

C.  Deciding property condition, including its serviceability and
    repairability.

D.  Requiring board-of-survey action according to instructions contained
    in the LMM.

E.  Ensuring through staff leadership and technical assistance that
    prescribed property accountability and property custodial records
    are maintained and that controls on property are made known (where
    their supervisor\'s jurisdiction encompasses one or more property
    accountable areas).

F.  Assuring that property accountability records are reconciled by
    periodic inventories of property.

G.  Establishing policies and procedures that satisfy LMM requirements
    and the various laws and regulations referenced therein.

H.  Providing administration and maintenance of an effective property
    accountability and control system within the accountable area for
    which they have been designated property management officer.

I.  Ensuring that proposed acquisitions are reviewed for satisfying
    requirements through potential reutilization or required source
    methods and application of use standards (See 103-25.3)

J.  Ensuring the establishment, training, and maintenance of the
    logistics management network comprised of Property
    Accountable Officers (PAOs), Property Custodial Officers (PCOs),
    Property Utilization Officers, Supply Management
    Officers, Transportation Officers, and Boards of Survey.

K.  Ensuring review, study, evaluation, and improvement of the logistics
    program, functions, operations and procedures.

L.  Providing technical advice and assistance to components on matters
    pertaining to logistics management and serving as the point of
    reference with the Department and external agencies on logistics
    matters.

M.  Developing and implementing inventory schedules for components,
    monitoring inventory progress, and providing assistance to support
    headquarters activities.

N.  Ensuring that required reports are provided.

O.  Delegating in writing, a Property Accountable Officer (PAO) to
    account for and control personal property assigned within his/her
    jurisdiction.

P.  Designating in writing, a Property Custodial Officer to assist the
    PAO in accounting and controlling personal property in his/her
    custodial area.

Q.  Implementing procedures for the orderly repair and rehabilitation of
    property.

R.  Functioning as the coordination point for reutilization and disposal
    of excess personal property which includes providing property staff
    with disposition instructions in accordance with the
    [FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfrv3_06.html).

S.  Ensuring that excess personal property is deleted from the property
    accountability control system.

T.  Assisting component management in the development and operation of
    internal control systems and ensuring their compatibility with
    Departmental programs and policies.

U.  Coordinating with the Directors, Division of Administrative Services
    in the regional offices on all matters pertaining to effective
    management and control of OPDIV personal property located in the
    regional offices.

[]{#__RefHeading___Toc159985933 .anchor}**103-1.5010 RESPONSIBILITIES OF
PROPERTY ACCOUNTABILITY OFFICERS (PAO)**

Property Accountability Officers, as needed and designated by a PMO, are
responsible for:

A.  Ensuring effective administration and maintenance of a property
    accountability and control system within the accountable area for
    which they have been designated.

B.  Determining the definition of custodial areas within the accountable
    area; recommending the designation of a Property Custodial Officer
    for each custodial area; ensuring that Property Custodial Officers
    have current records of the property for which they are responsible;
    that physical inventories are taken; that property is protected
    and maintained; and that survey reports for lost, damaged, or
    destroyed property are promptly prepared and processed.

C.  Sharing joint responsibility with the component Financial Management
    Officer for personal property reports, and as necessary, in
    reconciling personal property accounting records and financial
    accounting records.

D.  Providing reports as necessary to provide indicators of status,
    success, and/or weaknesses in the property management program.

[]{#__RefHeading___Toc159985934 .anchor}**103-1.5011 RESPONSIBILITIES OF
SUPPLY MANAGEMENT OFFICERS**

**\
**The Supply Management Officer is the principal official appointed by
the Property Management Officer and is responsible for providing
functional management, leadership and assistance in the implementation
of an effective supply management program including:

A.  Ensuring that procedures related to this manual are developed,
    implemented and maintained.

B.  Managing the component supply management system in accordance with
    this manual and with financial management policies.

C.  Determining items to be designated for control in a supply
    management system.

D.  Designating storage areas and supply points which provide for the
    preservation and protection of supply inventories.

E.  Sharing joint responsibility with Financial Management Officer for
    supply fiscal reports, and as necessary, in reconciling inventory
    records and financial records.

F.  Ensuring that the component management is kept advised of
    significant supply matters.

G.  Assisting component management in the development and operation of
    internal control systems and ensuring their compatibility with
    Departmental programs and policies; and

H.  Conducting reviews and assessments of materials inventory management
    activities and reporting findings, facts and trends to appropriate
    component management officials.

[]{#__RefHeading___Toc159985935 .anchor}**103-1.5012 TRANSPORTATION AND
TRAFFIC MANAGEMENT OFFICER**

**\
**The Transportation and Traffic Management Officer is designated by the
Property Management Officer and has responsibilities for all phases of
freight transportation and traffic management. The Transportation and
Traffic Management Officer is responsible for: 

A.  Interpreting, adapting, and implementing Federal traffic and
    transportation regulations through development of policies
    and procedures, and directives designed to establish an effective
    freight transportation and traffic management program. 

B.  Developing specific guidelines for packing, crating, and
    consolidation of shipments to assure safe and economical transit to
    destinations.

C.  Maintaining a close liaison with Federal regulatory agencies,
    carrier representatives and HHS program personnel to accomplish the
    required objectives of the transportation and traffic management
    program.

D.  Considering type and purpose of each shipment, handling required to
    meet speed and convenience requirements, carrier dependability and
    ability to render special services, etc.

E.  Recommending alternatives for movement of freight to meet emergency
    situations such as time limits, breakdowns in carrier schedules,
    excessive temperature variations, etc.

F.  Studying and analyzing of the many factors that affect traffic
    management services; e.g., tariffs, rates, and routes, carriers\'
    operating practices and equipment, freight movement patterns, safety
    requirements, shipping facilities, packing and loading methods, and
    receiving functions.

G.  Investigating cases of lost or damaged shipments, processing of
    claims for loss, damage, excessive charges, etc., and negotiation
    with carriers for settlement.

H.  Evaluating, analyzing and consolidating report data. 

[]{#__RefHeading___Toc159985936 .anchor}**103-1.5013 DEPARTMENT FLEET
MANAGEMENT OFFICER**

The Department Fleet Manager in the Office of Acquisition Management and
Policy (OAMP), Assistant Secretary for Administration and Management
(ASAM) is responsible for establishing and monitoring the Departmental
motor vehicle program, including developing adequate accounting and
reporting of motor vehicles. \
\
The component Fleet Manager is designated by the component Property
Management Officer and is responsible for: 

A.  Implementing HHS policy and direction.

B.  Developing and implementing local policy guidance to the
    organization\'s local motor vehicle managers.

C.  Providing advice and guidance to the organization\'s local motor
    vehicle managers.

D.  Investigating reports of vehicle misuse.

E.  Analyzing vehicle usage to assure maximum economies are achieved.

F.  Reviewing local vehicle operations to assure
    [FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfrv3_06.html)
    and HHS requirements are carried out. 

[]{#__RefHeading___Toc159985937 .anchor}**103-1.5014 RESPONSIBILITIES OF
PROPERTY CUSTODIAL OFFICERS (PCO)**

The PCO is designated by the Property Management Officer or other
established authority for the immediate physical custody of all personal
property under their control. The designation as PCO may or may not
correspond to the individual\'s official job title. The PCO is
responsible for: 

A.  Maintaining current custodial records for all in-use accountable
    personal property within their assigned custodial area. 

B.  Initiating or processing documents affecting accountability or
    custody of equipment. Ensuring that all movement of accountable and
    non-accountable personal property into or out of the custodial area
    is documented, and that documentation is provided to the PAO.

C.  Continuing surveillance to ensure that property is accorded proper
    maintenance and protection, and is used only for official purposes.

D.  Identifying and reporting to the PAO any property which is not
    required for use in the custodial area.

E.  Ensuring that property determined to be missing is promptly reported
    to the security office.

F.  Ensuring the prompt submission of a Report of Survey for Lost,
    Misused, Damaged, or Destroyed Property.

G.  Assisting the component property management office in the taking of
    a physical inventory and conducting his/her own personal physical
    inventory when deemed appropriate.

H.  Assisting in exit clearance procedures to ensure that all assigned
    property is accounted for;

I.  Conducting periodic utilization surveys to ensure compliance with
    prescribed use standards and to screen for unrequired property;

J.  Ensuring that additions, transfers, and deletions are fully
    supported and entered on the personal property control system in a
    timely manner.

[]{#__RefHeading___Toc159985938 .anchor}**103-1.5015 RESPONSIBILITIES OF
REGIONAL ADMINISTRATIVE SUPPORT CENTERS (RASC)**

The Director of each Regional Administrative Support Center (RASC) will
formally appoint the Director, Division of Administrative Services as
the Regional Property Management Officer (RPMO). A copy of the
appointment shall be forwarded to the OS functional manager for
logistics, the Director, Administrative Services Center (ASC), ASAM. The
RPMO is the individual appointed within each RASC who has knowledge,
stature, authority, and accountability required to control and provide
periodic assurance that the logistics management actions of the
components, including regional Operating and Staff Divisions, in the
respective regions are being correctly performed. \
\
In addition, the RPMO shall provide status reports to the Director, ASC,
to assure that logistics management actions of the components in the
respective region are being performed correctly. RPMOs are responsible
for the following logistics functions: 

A.  Implementing, administering, and maintaining the logistics
    management program within the region.

B.  Supporting the region\'s logistics management network, comprised of
    PAOs, PCOs, Boards of Survey, and coordinating the regions logistics
    activity.

C.  Training the region\'s PAOs, PCOs, and Boards of Survey, and
    providing assistance as necessary.

D.  Submitting paperwork for excess property, which has been approved as
    excess by a component, to the General Services Administration.

E.  Managing the regional automated property system and control the
    assignment of bar code labels or other identifiers to personal
    property items.

F.  Scheduling inventories and utilization walkthrough surveys,
    monitoring inventory progress, providing guidance and assistance as
    required, and reporting the status of inventories to the Director,
    ASC, ASAM.

G.  Reviewing the acquisition process to assure compliance with
    regulations pertaining to supply sources and to maximize the use of
    excess property.

H.  Developing and maintaining logistics management operations
    procedures.

I.  Submitting annual reporting requirements to the Director, ASC. 

[]{#__RefHeading___Toc159985939 .anchor}**103-1.5016 BOARDS OF SURVEY
AND SURVEY OFFICERS**

**\
**PMOs, having been delegated the authority by OPDIV heads to appoint,
either permanently or on an as-required basis, Boards of Survey (BOS)
consisting of three or more members or a Survey Officer to review and
investigate incidents involving loss, damage, misuse, or destruction of
Government property. The Board of Survey or Survey Officer will also
determine any financial liability for such property and provide
authorization for removal of items from official property records.
Procedures and actions to be taken are found at \"Report of Survey
System\", LMM 103-27. Responsibilities of the BOS include: 

A.  Investigating circumstances surrounding the reported loss, theft,
    damage, or destruction of personal property.

B.  Providing recommendations regarding proposed cannibalization, scrap,
    salvage, abandonment or destruction of personal property having a
    unit acquisition cost of \$1,000 or more.

C.  Determining if reported loss, damage or destruction of Government
    property was the result of employee negligence, misconduct or
    reckless disregard for the property and providing findings and
    recommendations of employee liability to the appropriate line
    managers.

D.  As appropriate, forwarding reports with findings and recommendations
    to legal and investigative offices for further review and action.

### 103-1.5017 RESPONSIBILITIES OF CONTRACTING OFFICERS AND GRANTS MANAGEMENT OFFICERS

Contracting Officers in coordination with the component logistics office
shall assure that all contracts that involve property contain the
applicable [Federal Acquisition Regulation](http://www.arnet.gov/far/)
([FAR](http://www.arnet.gov/far/)) property clause; and assure that
contractors\' property control systems are reviewed, appraised, and
approved as provided in [FAR 45.104](http://www.arnet.gov/far/).

Grants Management Officers shall ensure that any Government property
acquired by a commercial organization under an HHS grant or cooperative
agreement is administered in the same manner as contractor held
property. (See HHS Grants Administration Manual and CFR 45 Part 74).

[]{#__RefHeading___Toc159985941 .anchor}**103-1.5018 HHS EMPLOYEES**

Each HHS employee who has use of, supervises the use of, or has control
over Government property is responsible for that property. The
responsibility may take either or both of the following forms: 

Supervisory responsibility, in which an officer-in-charge, an
administrative officer, or supervisor is obligated to establish
and enforce necessary administrative and security measures to ensure
proper preservation and use of all Government property under his/her
jurisdiction.

Personal responsibility, in which each employee of the Department is
obligated to properly care for, use, and protect Government property
issued, assigned or loaned to for the employee\'s use at or away from
the office or station. Employees shall notify their property custodial
officer and/or property management activity when property is lost,
stolen, damaged, or destroyed. 

[]{#__RefHeading___Toc159985942 .anchor}**103-1.5019 REMOVING PROPERTY
FROM HHS OFFICES**

All employees will follow component internal procedures for removing
Government property from Government offices. 

### 103-1.5020 RESPONSIBILITIES FOR DEPARTMENTAL REPORTING

Reports are an integral part of logistics management and provide
managers with indicators of the status, success or weaknesses in the
program. Unless otherwise directed within this manual, or other
Departmental reference, required recurring logistics reports listed in
the Reports Calendar at LMM 103-1.5021 shall be received by the Office
of Acquisition Management and Policy (OAMP), Assistant Secretary for
Administration and Management (ASAM) on time, and as required. The
Property Management Officer is responsible for the Personal Property
Reports. Report information, formats, and instructions are reflected in
the report references.

The OPDIVs shall submit the logistics reports to the Director,
Administrative Services Center for consolidation and submission to the
Office of Acquisition Management and Policy (OAMP), Assistant Secretary
for Administration and Management (ASAM).

Consolidated Departmental reporting, as required by the
[FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfrv3_06.html),
shall be done by a single submission from the Office of Acquisition
Management and Policy (OAMP), Assistant Secretary for Administration and
Management (ASAM) using as a base, the reports submitted according to
LMM 103-1.5021.

### 103-1.5021 LOGISTICS INITIATIVES REPORT

Each OS and OPDIV head shall submit electronically a Logistics
Initiatives Report to the Office of Acquisition Management and Policy by
November 30. The report shall include any property, supply, aircraft,
motor vehicles, transportation or other related logistics initiatives. 

Instructions on content will be issued prior to or early in the fiscal
year being reported.

### 103-1.5022 LOGISTICS REPORTS CALENDAR 

+--------------------------+-----------+---------+--------------------+
| DEPARTMENTAL REPORT      | R         | DUE     | Reporting          |
| TITLE                    | EFERENCE  | DATE    | Directions         |
+--------------------------+-----------+---------+--------------------+
| Precious Metals          | 101-      | Nov.    | Prepare Internally |
| Reclamation              | 45.1002-2 | 15      | and Report as      |
|                          |           |         | Requested by DLP   |
+--------------------------+-----------+---------+--------------------+
| Annual Report of         | 101-43    | Nov.    | [Utilize DLP       |
| Utilization and Disposal | .4701(a)  | 15      | Logistics Online   |
| of Excess and Surplus    |           |         | Reporting          |
| Personal Property        |           |         | Tool](http://kn    |
|                          |           |         | ownet.hhs.gov/log/ |
|                          |           |         | OnlineReporting/da |
|                          |           |         | ta_collection.htm) |
|                          |           |         | for this report.   |
+--------------------------+-----------+---------+--------------------+
| Report of Inventory of   | 103-27    | Nov. 15 | [Utilize DLP       |
| Accountable Personal     |           |         | Logistics Online   |
| Property                 |           |         | Reporting          |
|                          |           |         | Tool](http://kn    |
|                          |           |         | ownet.hhs.gov/log/ |
|                          |           |         | OnlineReporting/da |
|                          |           |         | ta_collection.htm) |
|                          |           |         | for this report.   |
+--------------------------+-----------+---------+--------------------+
| Logistics Initiatives    | 1         | Nov.    | [Utilize DLP       |
| Report                   | 03-1.5011 | 30      | Logistics Online   |
|                          |           |         | Reporting          |
|                          |           |         | Tool](http://kn    |
|                          |           |         | ownet.hhs.gov/log/ |
|                          |           |         | OnlineReporting/da |
|                          |           |         | ta_collection.htm) |
|                          |           |         | for this report.   |
+--------------------------+-----------+---------+--------------------+
| Report of Motor Vehicle  | 101-38.9  | Dec.1   | [MVM               |
| Data                     |           |         | IS](http://mvmis.i |
|                          |           |         | nel.gov/index.htm) |
|                          |           |         | at                 |
|                          |           |         | http://mvmis.      |
|                          |           |         | inel.gov/index.htm |
+--------------------------+-----------+---------+--------------------+
| Government-owned         | 103-60    | Dec. 1  | Prepare Internally |
| Property Held by         |           |         | and Report as      |
| Contractors              |           |         | Requested by DLP   |
+--------------------------+-----------+---------+--------------------+
| Government-owned         | 103-60    | Dec. 1  | Prepare Internally |
| Property Held by         |           |         | and Report as      |
| Grantees                 |           |         | Requested by DLP   |
+--------------------------+-----------+---------+--------------------+
| Loan of Personal         | 103-27    | Dec. 1  | Prepare Internally |
| Property                 |           |         | and Report as      |
|                          |           |         | Requested by DLP   |
+--------------------------+-----------+---------+--------------------+
| Schedule and Status of   | 103-27    | Dec. 1  | Prepare Internally |
| Physical Inventories     |           |         | and Report as      |
| for Personal Property    |           |         | Requested by DLP   |
+--------------------------+-----------+---------+--------------------+
| Personal Property        | [103-1.   | Dec.1   | Enter staff        |
| Management, Fleet        | 50        |         | training           |
| Management, Materiel     | 06](http: |         | information        |
| Management,              | //knownet |         | directly to the    |
| T                        | .hhs.gov/ |         | [KNOW              |
| ransportation Management | log/LMM/s |         | NET/EL-TRAINS      |
| and Logistics Training   | ubchapa.h |         | system](ht         |
| Certificates and         | tm#103-1. |         | tp://knownet.hhs.g |
| Certifications           | 5006 OFFI |         | ov/log/Certificati |
|                          | CE OF GRA |         | on/pre_enroll.asp) |
|                          | NTS AND A |         | or provide to DLP  |
|                          | CQUISITIO |         | for entry.         |
|                          | N MANAGEM |         |                    |
|                          | ENT.%2310 |         | Staff training     |
|                          | 3-1.5006  |         | information        |
|                          | OFFICE OF |         | includes, but is   |
|                          |  GRANTS A |         | not limited to,    |
|                          | ND ACQUIS |         | employee payroll   |
|                          | ITION MAN |         | name, email        |
|                          | AGEMENT.) |         | address,           |
|                          | (F)       |         | organization, job  |
|                          |           |         | title, series,     |
|                          |           |         | grade and          |
|                          |           |         | administrator      |
|                          |           |         | information for    |
|                          |           |         | all staff involved |
|                          |           |         | in Personal        |
|                          |           |         | Property           |
|                          |           |         | Management, Fleet  |
|                          |           |         | Management,        |
|                          |           |         | Materiel           |
|                          |           |         | Management,        |
|                          |           |         | Transportat        |
|                          |           |         | ion Management and |
|                          |           |         | Logistics.         |
|                          |           |         |                    |
|                          |           |         | OPDIV              |
|                          |           |         | Administrators     |
|                          |           |         | will access the    |
|                          |           |         | KNOW NET/EL-TRAINS |
|                          |           |         | system and report  |
|                          |           |         | to OPDIV           |
|                          |           |         | management and DLP |
|                          |           |         | on the status of   |
|                          |           |         | employee progress  |
|                          |           |         | in completing KNOW |
|                          |           |         | NET/EL-TRAINS      |
|                          |           |         | curriculum on an   |
|                          |           |         | annual basis.      |
+--------------------------+-----------+---------+--------------------+
| Exchange/Sale of         | 1         | Dec.    | [Utilize DLP       |
| Personal Property        | 01-46.305 | 15      | Logistics Online   |
|                          |           |         | Reporting          |
|                          |           |         | Tool](http://www   |
|                          |           |         | .ogam2000.com/log/ |
|                          |           |         | OnlineReporting/da |
|                          |           |         | ta_collection.htm) |
|                          |           |         | for this report.   |
+--------------------------+-----------+---------+--------------------+
| Personal Property        | 101-4     | Dec. 15 | [Use the           |
| Furnished to Non-Federal | 3.4701(c) |         | spreadsheet        |
| Recipients               |           |         | supplied by        |
|                          |           |         | DL                 |
|                          |           |         | P](http://knownet. |
|                          |           |         | hhs.gov/log/_priva |
|                          |           |         | te/DataCollectionF |
|                          |           |         | orms/Non_Fed_Data_ |
|                          |           |         | Collect_Form.htm). |
+--------------------------+-----------+---------+--------------------+
| Contract/Rental/Charter  | 10        | Jan. 1  | Contact Jim Kerr,  |
| Aircraft Cost            | 1-37.507  |         | Sr. at             |
|                          |           |         | <Jim.Kerr@hhs.gov> |
+--------------------------+-----------+---------+--------------------+

Refer to LMM 103-27 for information on personal property accountability
reports until policy coverage is finalized in this manual. 

# HHS Logistics Management Manual (LMM) Subchapter E

# PART 103-25 -- SUPPLY

## **103-25.000 SCOPE**

This subchapter implements and supplements FPMR Subchapter E, Supply and
Procurement. It contains policies about the general area of supply
management designed to support the logistical programs of the
Department.

## SUBPART 103-25.1 \-- GENERAL POLICIES 

### 103-25.100 USE OF GOVERNMENT PERSONAL PROPERTY AND NONPERSONAL SERVICES

Government-owned or leased property in the control of the Department
shall not be used for any purposes other than in the performance of work
of the Department, except in emergencies threatening loss of life or
property, or as may be authorized by law. Emergency is defined in the
[FPMR
101-25.100](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-25&SECTION=100&YEAR=2000&TYPE=TEXT).

#### 103-25.100-1 EMPLOYEE RESPONSIBILITY

> Each employee shall be held responsible for the proper use and
> protection of any property that may come into his/her custody or
> control. No employee shall appropriate for personal use any article of
> Department property, including that property which has been ordered
> abandoned or destroyed.

[]{#__RefHeading___Toc159985951 .anchor}**103-25.101 CRITERIA FOR
DETERMINING METHOD OF SUPPLY**\
Criteria have been established by the General Services Administration
that govern the selection of methods of supply that are to be used.
These criteria are applicable to all executive agencies. They are
specifically defined in [FPMR
101-25.101](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-25&SECTION=101&YEAR=1999&TYPE=TEXT).
Methods prescribed are: [storage and
issue](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-25&SECTION=101-2&YEAR=1999&TYPE=TEXT);
[consolidated purchase for direct delivery to use
points](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-25&SECTION=101-3&YEAR=1999&TYPE=TEXT);
[indefinite quantity and requirement
contracts](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-25&SECTION=101-4&YEAR=1999&TYPE=TEXT);
and [local
purchase](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-25&SECTION=101-5&YEAR=1999&TYPE=TEXT). \
\
**103-25.102 EXCHANGE OR SALE OF PERSONAL PROPERTY FOR REPLACEMENT
PURPOSES**

If property is eligible for exchange/sale (trade-in or reimbursable
sale), agencies shall review this option as a means to reduce general
expenditures. However, the use of exchange/sale authority is limited to
certain categories of property (ADPE, vehicles, office equipment and
scientific equipment). It does not apply to furniture or office supplies
and should be considered as only one factor within the total context of
acquisition decision-making.

[]{#__RefHeading___Toc159985952 .anchor}**103-25.103 PROMOTIONAL
MATERIALS, TRADING STAMPS AND BONUS GOODS**

Promotional materials that are received as a result of official business
are the property of the Government, except unsolicited advertising or
gifts of nominal value (e.g., pens, pencils, note pads, calendars, etc.)
which can be accepted by Departmental employees (See CFR 735.202
(b)(4)). Other materials, such as rebates, merchandise, or similar
material will be given into the custody of an administrative official
designated by the head of the OPDIV.\
\
Any questions concerning the acceptance of these materials, gifts, etc.
should be referred to the appropriate Ethics Counselor.\
\
The material mentioned above may be accumulated and forwarded to the
Public Health Service/Indian Health Service Hospitals/Clinics for
recreational activities of patients served by those institutions. \
\
Travel bonuses should be forwarded to the travel unit of the
component\'s financial management activity. 

### **103-25.104 ACCEPTANCE AND USE OF DEMONSTRATION EQUIPMENT** 

The use of demonstration equipment is not permitted. This prohibition
does not preclude suppliers from demonstrating equipment as long as the
equipment is removed immediately after the demonstration. See Director,
Office of Procurement and Logistics Policy Memorandum dated March 19,
1985.

[]{#__RefHeading___Toc159985954 .anchor}**103-25.105 ACQUISITION OF
OFFICE FURNITURE AND OFFICE MACHINES**

Maximum use of redistribution, repair and rehabilitation will be made to
meet needs before the acquisition of new office furniture. Property
management offices shall validate each requisition to decide if suitable
items are available from the unrequired inventory in other HHS
components. Property management offices shall circulate the [Standard
Form 120, Report of Excess Personal
Property](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF120.PDF)
and/or lists of usable unrequired property to Department components.
Further guidance may be found in LMM 103-43. \
\
**103-25.106 SERVICING OF OFFICE EQUIPMENT**

If deciding whether office machines will be serviced by using an annual
maintenance contract, justification supporting this decision shall be
approved by the component Administrative Officer in coordination with
the Property Management Officer. Property management offices are
encouraged to maintain equipment history information so that it can
serve as a factor in making the determination. A copy of the approved
determination shall be made part of the purchase order file in the
office arranging for the service. Guidelines for annual maintenance
contracts or per call arrangements are contained are FPMR 101-25.106.
The local servicing procurement office shall be consulted for assistance
in this area.

[]{#__RefHeading___Toc159985955 .anchor}**103-25.107 GUIDELINES FOR
REQUISITION AND PROPER USE OF CONSUMABLE LOW COST ITEMS**

Consumable and low-cost items in the inventory are also subject to
inventory record and accounting controls. The HHS Guide for Inventory
Control and Accounting provides additional guidance on consumable
low-cost items. The guide can be obtained from the OS-Materiel
Management Branch in Room G322A, Switzer Building.\
\
**103-25.109 LABORATORY AND RESEARCH EQUIPMENT**

**\
**Effective procedures will be applied in managing laboratory and
research equipment. HHS components shall establish controls as
appropriate to ensure redistribution or reporting to GSA of idle
equipment.

[]{#__RefHeading___Toc159985956 .anchor}**103-25.150 DETERMINATION OF
PERSONAL PROPERTY REQUIREMENTS**

This section provides general policies governing the development of
personal property requirements and determination of need. 

####  103-25.150-1 GENERAL

> OS, OPDIVS, and ROs shall limit the quantity and quality of property
> to be acquired to the minimum necessary for effective and efficient
> performance of assigned functions and responsibilities. 
>
> Determination of property needs and utilization of property is the
> responsibility of Property Management Officers working with Program
> Managers. 
>
> The determination of requirements for supplies, materials, and
> equipment shall be governed by standards established for use and
> replacement of items. When standards do not exist, they shall be
> developed and applied locally.

#### 103-25.150-2 DEVELOPMENT OF REQUIREMENTS

> To achieve efficient program operations, it is essential that
> equipment and supplies necessary to support the operations are on hand
> when required. To this end the planning of equipment and supply
> requirements should be done concurrently with program operations
> planning, both immediate and long range. 
>
> Requirements determination will provide the basis for development of
> the budget estimates of funds needed for material to support
> the planned objectives. 

#### 103-25.150-3 PLANNING AND SCHEDULING ACQUISITIONS

> In the interest of providing equipment and supplies when needed and
> avoiding peak loads in purchasing and contracting, the
> responsible procuring activity in coordination with Property
> Management Officers are responsible for informing Program Managers and
> Project Officers of the necessity to provide sufficient lead time when
> placing requisitions to enable Purchasing Agents and Contracting
> Officers to schedule and obtain property in an efficient and orderly
> manner. Once funds are available, requirements should be filled;
> requirements should not be allowed to accumulate until the last two
> quarters of the fiscal year. 
>
> End of the year requirements for acquisition of property from GSA
> sources of supply shall conform to the funding restrictions as stated
> in the [FPMR
> 101-26.104](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-26&SECTION=104&YEAR=1999&TYPE=TEXT).

#### 103-25.150-4 HHS METRIC PROGRAM

> **\
> **When planning for procurement solicitations, components are required
> to use the metric system of measurement, or a dual system stating both
> metric and inch-pound units, in all procurement documents where
> measurements are required unless such use would be impracticable or
> would likely cause significant inefficiencies or lost markets to
> United States firms. Refer to HHS Chapter 8-25, General Administration
> Manual (GAM) for Departmental policies, procedures, and
> responsibilities for implementing the Metric Conversion Act of 1975.

[]{#__RefHeading___Toc159985957 .anchor}**103-25.151 ACQUIRING
PROPERTY**

It is the responsibility of the Property Management Officer to use the
most efficient means to meet the needs of the Program Manager. Careful
consideration must be given to the following possible means of supply:
[loan](http://knownet.hhs.gov/log/LMM/103-25.htm#103-25.151-1 BORROWING PROPERTY/USE OF PRIVATELY OWNED PROPERTY.%23103-25.151-1 BORROWING PROPERTY/USE OF PRIVATELY OWNED PROPERTY.),
transfer,
[rental](http://knownet.hhs.gov/log/LMM/103-25.htm#103-25.151-3 RENTING PROPERTY.%23103-25.151-3 RENTING PROPERTY.),
or purchase.  Priority in the use of supply sources which are listed in
[103-25.152](http://knownet.hhs.gov/log/LMM/103-25.htm#103-25.152 PRIORITIES FOR USE OF GOVERNMENT SUPPLY SOURCES. %23103-25.152 PRIORITIES FOR USE OF GOVERNMENT SUPPLY SOURCES. )
will be followed. 

#### 103-25.151-1 BORROWING PROPERTY/USE OF PRIVATELY OWNED PROPERTY

> Borrowing property from the private sector or use of privately owned
> property by the Government is discouraged. Such practice often leads
> to claims against the Government for damage to, or loss of, the
> borrowed or privately owned property. It may raise questions
> concerning augmentation of appropriation conflicts of interest and
> unfair favors or advantage in receiving contracts or grants. 
>
> Property is authorized for acceptance as a loan on behalf of the
> Department only when the property is not otherwise available to the
> borrowing activity and is necessary to: maintain essential functions
> of the Department; enable personnel to discharge their duties; and the
> appearance of which does not create a conflict of interest or unfair
> competitive advantage. 
>
> Records are to be established to provide control over borrowed or
> privately owned property. 
>
> Personal property obtained by loan from components within the
> Department or from other Government agencies will be repaired when
> necessary to place it in as good a condition as when borrowed and
> allowing for fair wear and tear, unless otherwise agreed upon at the
> time of the loan. Such expenses will be charged to appropriations
> available to the borrowing agency. 
>
> Repair of privately owned property shall not be made at Government
> expense. 

#### 103-25.151-2 USE OF GOVERNMENT-OWNED PROPERTY AT EMPLOYEE RESIDENCE

> Components may place equipment such as computers and
> telecommunications equipment, etc. in their employees\' homes while
> retaining ownership and control of hardware, software, and data. All
> Government provided equipment is for official business and employees
> are prohibited from using such equipment for private purposes. HHS is
> responsible for maintaining and repairing such equipment. Other
> criteria to follow are: 

A.  Assure that proper safeguards and instructions have been provided to
    the employee to preclude abuse or misuse of equipment.

B.  Determine benefits of allowing employee to use equipment away from
    the office versus the cost to the component of the physical loss or
    damage to the equipment; the compromise of data stored within; and
    the potential liability.

C.  Consult recent OMB guidance regarding Federal agencies and end user
    computing off site (see [OMB
    M-06-16](http://www.whitehouse.gov/omb/memoranda/fy2006/m06-16.pdf)). 

D.  Document all equipment assigned to an employee that is to be used at
    home on form HHS-439, \"Personal Custody Record\" or alternative
    documentation approved by the Office of Acquisition Management and
    Policy (OAMP), Assistant Secretary for Administration and Management
    (ASAM). The documentation shall be placed in the components property
    records file. Also a properly completed form [OF-7, \"Property
    Pass](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/OF7.PDF)\" or
    similar internal form shall be executed each time the equipment
    leaves the office. 

E.  Components shall also consult with their local procurement office to
    determine if there are any restrictions (i.e. site license
    agreements).

The following is additional guidance:

1.  Privacy Act of 1974 (P.L. 93-579)

2.  HHS Automated Information Systems Security Handbook 

3.  Computer Security Act of 1987 (P.L. 100-235)

4.  Computer Abuse Amendments of 1990 (P.L. 98-473)

5.  Computer Virus Eradication Act of 1988

6.  Circular A-123, Internal Control Systems

7.  Circular A-130, Management of Federal Information Resources

8.  U.S. Copyright Act of 1980 (17 USC)

#### 103-25.151-3 RENTING PROPERTY

> Items of personal property will be rented when it is in the best
> interests of the Government to do so. For example, when:

A.  The property cannot otherwise be obtained. 

B.  The need for the property is temporary and it is not practical or
    possible to borrow from another HHS component or other Government
    agency or its purchase would not be economical. 

C.  Known obsolescence warrants rental (Example: rapidly changing
    technology in copying and automatic data processing equipment).

### 103-25.152 PRIORITIES FOR USE OF GOVERNMENT SUPPLY SOURCES

HHS components shall satisfy requirements for supplies and services from
or through the sources and publications listed below in descending order
of priority as prescribed in the FPMR at 101-26.107:

A.  Supplies.

    1.  Agency inventories.

    2.  Excess from other agencies.

    3.  Federal Prison Industries, Inc.

    4.  Procurement lists from the Committee for Purchase from the Blind
        and Severely Handicapped.

    5.  Wholesale supply sources, such as stock programs of the PHS
        Supply Service Center, GSA (see 101- 26.3), the Defense
        Logistics Agency (see 101- 26.6), Department of Veterans Affairs
        (see 101- 26.704, and military inventory control points.

    6.  Mandatory Federal Supply Schedules.

    7.  Optional use Federal Schedules.

Commercial sources (including educational and gateway.html
institutions).

B.  Services

```{=html}
<!-- -->
```
1.  Procurement lists of services from the Committee for Purchase from
    the Blind and Severely Handicapped.

2.  Mandatory Federal Supply Schedules and mandatory GSA term.

Sources other than those listed in (A) above may be used as prescribed
in 101-26.301 and in an unusual and compelling urgency as prescribed in
101-25.101-5.

[]{#__RefHeading___Toc159985959 .anchor}**[SUBPART 103-25.2 \--
INTERAGENCY PURCHASE ASSIGNMENTS]{.underline}\
\
****103-25.201 GENERAL.**\
This subpart prescribes policy for interagency purchase assignments
within the Executive branch of the Government. 

Normally GSA will make purchases and contracts regularly for articles
and services for the Executive branch of the Government in the interest
of lower prices, improved quality, and service. 

A designated Federal agency, however, will exclusively make purchases
and contracts as in (A) above when it has been decided that the
participating agency is best equipped to do so. For example, the Defense
Logistics Agency buys petroleum and subsistence products for other
Agencies.

Items or services may be purchased independently by HHS when such
articles or services are not assigned to GSA or another executive agency
for purchasing or contracting. 

The industrial funding program managed by GSA provides latitude to
purchase goods or services from sources other than the GSA Supply
Catalog, which are at the lowest price. For example:

A.  When a total value of a line item requirement is less than \$100,
    procurement from other sources is authorized.

B.  When total value of a line item requirement is \$100 or more, but
    less than \$1,000, procurement from other sources is authorized:
    Provided, that written justification is prepared and placed in the
    procurement file.

C.  When the total value of the line requirement is \$1,000 or more, but
    less than \$5,000, procurement from other sources is authorized:
    Provided, that written justification is prepared following the
    paragraph (2), above.

[]{#__RefHeading___Toc159985960 .anchor}**[SUBPART 103-25.3 \-- USE
STANDARDS]{.underline}\
\
****103-25.301 GENERAL**

Among the management responsibilities of Property Management Officers is
the necessity to develop viable use standards for application throughout
the organization. Use standards are tools used by management to obtain
the best balance between property assets and property needs at all
levels of operation. Use standards are criteria for deciding when, and
in what quantity, certain types of property are authorized for use.
Besides the use standards prescribed in [FPMR
101-25.3](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-25&SECTION=301&YEAR=1999&TYPE=TEXT),
components should, whenever practicable, develop meaningful use
standards for property under their control. Individuals should reference
the [HHS OCIO Policy for Personal Use of Information Technology
Resources](http://www.hhs.gov/read/irmpolicy/20060001.doc).

#### 103-25.301-50 RESPONSIBILITIES OF PROPERTY MANAGEMENT OFFICERS FOR USE STANDARDS

A.  Application of established use standards when determining needs for
    personal property. 

B.  Development of appropriate and cost effective use standards for
    personal property without established standards. 

C.  Providing the lowest cost equipment adequate for a task and ensuring
    effective utilization of property through the application of use
    standards. 

D.  Promptly redistributing as excess all items of property that do not
    meet use standards and are determined to be unrequired for the needs
    of the accountable area. 

#### 103-25.301-51 POOLING EQUIPMENT

> Each component of the Department shall establish equipment pools and
> sharing programs to the maximum extent possible to reduce procurement
> and increase utilization, including, but not limited to, such items
> as:

A.  Engineering, laboratory, and scientific research instruments and
    associated equipment. 

B.  Instruments for measuring, controlling, and showing physical
    characteristics. 

C.  Optical instruments. 

D.  Transcribing, duplicating, calculating, typing, automatic data
    processing, and audiovisual equipment. 

E.  Motor vehicles. 

Equipment pools will be developed from:

A.  Unrequired property. 

B.  Property not fully used by one laboratory or office. 

C.  New equipment, when there is recurring needs in several activities
    and it would be economically feasible. 

### 103-25.302 OFFICE FURNITURE, FURNISHINGS, AND EQUIPMENT

To comply with GSA space reduction requirements and reduce facility
requirements, HHS components shall use systems or modular type furniture
to the maximum extent possible when relocating to new or different work
space. Components shall establish a single point for coordination,
evaluation and approval of systems furniture requirements. Refer to the
GSA bulletin (FPMR 101-26), which provides a method to evaluate costs of
systems furniture over conventional furniture.

Components shall use a prototype system (numbers of panels, work
surfaces etc.) that will provide information regarding the layout of
each office or cubicle. Also, components shall keep on hand an inventory
listing of materials for any add-on or reconfiguration of existing
systems furniture. 

Component logistics offices may establish their own criteria for the use
of office furniture, furnishings, and equipment.  Such criteria shall be
in consonance with the provisions of FPMR 101-25.104 pertaining to
office furniture and equipment and shall be limited to the minimum
essential requirements as established by the head of the component. New
furniture will not be purchased unless the property management component
has found that no suitable furniture exists in excess or is available
from a property rehabilitation program. Open market purchase will not be
made unless there is a written determination that GSA does not have a
suitable item.

Beyond use in administrative offices, office furniture and furnishings
may be provided for use in laboratories, clinics, wards, diagnostic
rooms and in other non-administrative areas where there is a
demonstrated need for items of this nature. Office furniture such as
desks, tables, etc., shall not be substituted for benches or other
equipment for which technical or specialized fixtures or equipment may
be obtained. Use of office furniture and furnishings in other than
administrative areas do not change their categorization as office
furniture and furnishings. The least expensive items of standard metal,
wood, or renovated furniture available from GSA shall be obtained when
excess or unrequired property is not available. 

Limitation on Expenditure for Presidential Appointees\' Offices. GSA has
set a \$5,000 limit on expenditures to furnish or redecorate (purchase
furniture or make improvements) for Presidential appointees\' offices.
The areas covered by the limitation include, but are not limited to,
Presidential appointees\' conference rooms, waiting rooms, and immediate
staff offices. The limitation applies during the appointee\'s term of
office. Questions can be directed to the Division of Special Programs
Coordination, ASC/OS.

Items of office equipment, used only occasionally, should be pooled
following 103-25.301-52 and made available to HHS programs as necessary.

### 103-25.350 EMBLEMS, FLAGS, AND SYMBOLS 

#### 103-25.350-1 PURPOSE

> This section provides authority and policy for the acquisition,
> display, and disposal of emblems, indoor flags and symbols, also for
> acquisition and disposal of flags acquired for outdoor display, and
> criteria for proper positioning of all flags, as required U.S.C. Title
> 36, Section 175. 
>
> The United States flag, Departmental flag and a plastic reproduction
> of the HHS Seal, are authorized for display by OPDIV heads, ROs, major
> field installations, Food and Drug Administration offices, in the
> auditorium and main conference room of the principal administration
> building at headquarters and at similar locations for Departmental
> activities in the field. At installations where HHS is the sole
> occupant of the building, these flags and seals are also authorized
> for display in the main lobby. In addition, at Indian Health Service
> Hospitals and clinics operated or owned by a tribal organization, the
> tribal flag is authorized for display with the United States flag.
>
> A plastic reproduction of the HHS Seal is authorized for display in
> areas where display of the HHS flag is not authorized, but where
> display of the seal is desirable because of the presence of the
> public. 

#### 103-25.350-2 FLAG OF THE SECRETARY

> The flag of the Secretary is authorized for indoor display in:

A.  The immediate office and conference room of the Secretary. 

B.  In any conference room, auditorium, or other location where an
    official meeting is being conducted and the Secretary is the
    principal speaker. The Secretary\'s flag will not be displayed in
    other Department offices, conference rooms, auditoriums, or other
    locations when the Secretary is not present. 

### 103-25.350-3 FLAGS OF THE DEPUTY SECRETARY AND ASSISTANT SECRETARIES 

> The flags of the Deputy Secretary and Assistant Secretaries are
> authorized for indoor display as follows:

A.  In their immediate offices and conferences rooms. 

B.  In any conference room, auditorium, or other location where an
    official meeting is being conducted and they are the principal
    speakers. Flags of the Deputy Secretary and Assistant Secretaries
    will not be displayed in other Department offices, conference
    auditoriums, or other locations when they are not present. \
    \
    \"Assistant Secretaries\", as used in this subpart, includes Heads
    of major operating activities such as the PHS, etc.

#### 103-25.350-4 FLAGS OF THE PUBLIC HEALTH SERVICE

> Public Health Service Officials who are entitled to flags denoting
> their departmental rank, may continue to display these flags in lieu
> of the Department flag. For additional information relative to display
> of flags of the PHS, see the PHS Commissioned Corps Personnel Manual.

####  103-25.350-5 VARIATIONS

> Requests for authority to display indoor flags or seals under
> circumstances other than authorized in this subpart shall be submitted
> in writing to heads of OS, OPDIV or Regional Offices. Such requests
> shall fully describe the proposed use of flags or seals, and the
> location and size of installation (e.g., number of employees). 

#### 103-25.350-6 ACQUISITION 

Components of the Department shall obtain U.S. Flags and stands
according to FPMR 101-26.3. 

> Components shall obtain Department flags and plastic reproductions of
> the Department seal by submitting a stock requisition, Form HHS-393,
> to the Materiel Management Branch, Administrative Services Center,
> ASAM following internal instructions. A statement shall be made on the
> HHS-393 certifying that display of the Department flag and/or seal is
> authorized according to LMM 103-25.350. 

#### 103-25.350-7 DISPOSITION OF FLAGS

> Whenever the United States flag, Department flag, or a flag of an
> official denoting his/her departmental rank is soiled, torn, or no
> longer usable, it shall be turned in to the component property
> management office, of the using activity, who will decide the
> condition and make proper disposal by burning or other approved
> methods to assure against misuse of the flag. If the using component
> finds that a flag has some historical significance, a request shall be
> sent to the historical office at the headquarters office of the
> component, recommending retention or disposition other than
> destruction. The request shall provide all acts and circumstances to
> support the recommendation concerning retention or other disposition
> of the flag. See also LMM 103-43.

### 103-25.351 MOTOR VEHICLES

OS, OPDIVs, and Ro\'s shall limit the use of motor vehicles to the
minimum required to carry out authorized programs. They shall meet
requirements by using the GSA Interagency Fleet Management System (IFMS)
to the maximum practical extent.  Passenger vehicles may be purchased or
leased only if legislative authority exists.

#### 103-25.352-2 AVAILABILITY OF SEDANS, AND LIMOUSINES

> Motor vehicle policy is set forth in [FMR
> 102-34](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfr102-34_06.html)
> and LMM 103-34. Unless justified to the HHS Fleet Manager, Office of
> Acquisition Management and Policy (OAMP), Assistant Secretary for
> Administration and Management (ASAM), vehicles will be acquired using
> the size guidelines set forth in FMR 102-34.45. If approved, the HHS
> Fleet Manager will then certify the need to GSA.

### 103-25.353 REFRIGERATORS

Components should refer to the use standards for all types of
refrigerators contained in the Department of Veterans Affairs (DVA)
Catalog No. 3, section VIII.

Explosion proof refrigerators approved by the Underwriters\'
Laboratories or other nationally recognized testing laboratories, will
be used for temporary storage of flammable liquids and volatile
solvents. 

All nonexplosion proof refrigerators assigned for use at facilities will
be distinctly labeled in a conspicuous place as follows: \"NOT FOR THE
STORAGE OF FLAMMABLE LIQUIDS.\" 

#### 103-25.353.1 FURNISHINGS FOR PERSONNEL QUARTERS

> Housekeeping quarters will be equipped with smoke detectors, a cooking
> stove, a refrigerator and where not installed, kitchen cabinets and a
> medicine cabinet. Items essential to the protection or maintenance of
> housekeeping quarters may also be furnished. Such items are:

A.  Fireplace equipment (andirons, tools, screens).

B.  Doormat.

C.  Rods, curtain or drapery.

D.  Waste receptacles (outside use only).

NOTE: Carpeting (wall-to-wall) or rugs and rug cushions are authorized
for use only in the living room, dining room, den, library, combination
living and dining areas, bedrooms, hall and stairways, and in kitchens
and bathrooms when deemed necessary by the Facility Director.

Besides the quarters specified in the paragraph (A) of this section,
housekeeping quarters, when available, may be equipped with furniture
and furnishings to fit married residents, assigned on a continuing
rotating schedule. Items furnished will be limited to those needed to
provide a reasonable degree of livability and will be obtained from
excess sources when possible. 

Furniture and furnishings presently assigned to housekeeping quarters
may, when necessary, be repaired, if the immediate or cumulative cost of
such repairs, including labor and material, shall not exceed 55 percent
of the cost to replace the item. The Facility Director will, under any
of the circumstances cited in this paragraph, have all furniture and
furnishings not authorized by this section removed from
housekeeping quarters when:

A.  The quarters are vacated, and it is found that the condition and
    quantity of the furniture are such that the quarters may not be
    considered adequately furnished.

B.  The incoming occupant of the quarters requires less than 50 percent
    of the furniture.

C.  The Facility Director decides that the quarters will be rented at
    the unfurnished rate.

D.  D. Furniture should be used to upgrade similar furniture in other
    housekeeping quarters, or used elsewhere at the facility. Items not
    used will be disposed of following personal property utilization and
    disposal procedures.

[]{#__RefHeading___Toc159985966 .anchor}**103-25.355 PROTECTIVE CLOTHING
AND EQUIPMENT**

Department policy for acquisition and use of protective clothing and
equipment is stated in Chapter 8-10, HHS Safety Management Manual.
Regulations about uniforms are stated in Part II HHS General
Administration Manual. \
\
**103-25.357 SAFES, VAULTS, AND OTHER DEPOSITORIES**

Safes, vaults, and other depositories are authorized for safeguarding
funds, controlled substances, ammunition, hazardous materials, alcohol,
precious metals and other sensitive items. Safes, vaults and other
depositories shall always be locked.

### 103-25.358 POTENTIALLY HAZARDOUS PRODUCTS

GSA issues Safety Alerts on potential or actual hazardous items under
its contracts. Other Government agencies may issue notices of hazardous
products under their jurisdiction. Also, manufacturers may issue
warnings or recalls on their products. Also, the Government-Industry
Data Exchange Program (GIDEP) issues \"Non-Conforming Products Notices\"
that include Alerts, Safe-Alerts, and Problem Advisories.

Upon receipt of these alert notices, the Office of Acquisition
Management and Policy (OAMP), Assistant Secretary for Administration and
Management (ASAM) will forward the notice to the components through the
Executive Committee for Logistics with instructions for carrying out the
required action. The original notice will be retained in the OAMP file.

Components will establish written procedures to comply with the
instructions in safety alerts and/or remove hazardous products from the
facilities. Staff should coordinate with their procurement and/or
environmental/safety offices to carry out effective removal of any
hazardous product. Refer also to 103-42.2.

## SUBPART 103-25.4 \-- REPLACEMENT STANDARDS

### 103-25.401 GENERAL 

Effective and economical replacement of personal property requires the
same coordinated planning and scheduling for the program officers,
procurement, and property management personnel as is required to
establish the initial requirement. To ensure that funds are available
for timely replacement of property, the PMOs in each component, along
with the Program Officers should develop and maintain a plan for the
replacement of equipment. This plan will provide input for the budget
process. 

#### 103-25.401-50 REPLACEMENT CRITERIA

A.  A decision to replace a piece of equipment must comply with the
    following conditions:

```{=html}
<!-- -->
```
1.  Continued use of the item does not conform to existing equipment use
    standards. 

2.  The cumulative cost of repair exceeds the economical repair limits
    prescribed and would not extend the useful life of the equipment
    beyond the normal replacement period. Repair/replacement limits
    prescribed in FPMR 101-25.4 are generally applicable to all
    equipment.

3.  The new item will serve the same or similar purpose as the replaced
    item and the replaced item has been carried on and will be retired
    from the asset account. The item being replaced should be used as a
    trade-in or sold following the exchange/sale provisions of [FMR
    102-39](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfr102-39_06.html).
    When replaced property is considered for sale by GSA or the
    activity, a cost/benefit analysis should be performed to find if the
    expected sales proceeds would exceed holding costs. Replaced
    property will not be retained by the HHS component under any
    circumstances. 

4.  The replacement of such items as motor vehicles, office machines,
    furniture, and materials handling equipment conforms to specific
    provisions for such equipment contained in FPMR 101-25.4 and can be
    used for planning for your budget and supporting a justification for
    a new acquisition. 

5.  Continued use of the item is a safety hazard, which cannot be
    economically corrected. 

```{=html}
<!-- -->
```
B.  Items may be retained for use although standards allow replacement,
    provided the items can be used or operated without excessive
    maintenance cost or substantial reduction in trade-in value. 

C.  The determination that an item should be replaced involves the
    following considerations:

```{=html}
<!-- -->
```
1.  The operating requirements of the using service. 

2.  The advice and recommendations of technical repair personnel on the
    feasibility of repairs. 

3.  The application of repair and replacement criteria. 

4.  The availability of funds. 

#### 103-25.401-51 EXCEPTIONS TO REPLACEMENT STANDARDS

> Field activity requests to replace an item that does not meet the
> specific item replacement standards must be approved by the Director
> of the servicing procurement activity in coordination with the
> appropriate component official.

Written justification by the official requesting the replacement item is
required when:

A.  Replacement is made before the expiration of the useful life of the
    item.

B.  Replacement is made of property found in a used-good or better
    condition, including property that has reached its replacement date.

#### 103-25.401-52 OPERATING PLAN FOR REPLACEMENT OF EQUIPMENT 

> As necessary, logistics management components shall initiate and
> assist administrative and budget offices by reviewing the property
> records during the second quarter of each fiscal year identify items
> due for replacement during the next budget year based on life
> expectancy. Replacement planning and budgeting for major equipment
> systems on long lead times, should be initiated at least two years
> prior to the year in which replacement is needed. 
>
> Items shall be evaluated to decide if there is sufficient useful life
> remaining to continue using the item beyond the
> established replacement date without excessive repair and maintenance
> costs, or material reduction in trade-in value. The replacement year
> in the property record shall be updated with the revised replacement
> year. 
>
> Components will establish replacement costs for use in budget
> projections and coordinate this information during the
> budget submission process for the next budget year. Besides the
> current contract price of an item such costs shall include:

A.  Installation costs.

B.  Transportation charges. 

[]{#__RefHeading___Toc159985970 .anchor}**[SUBPART 103-25.5 \--
GUIDELINES FOR MAKING PURCHASE OR LEASE DETERMINATIONS\
]{.underline}**\
**103-25.501 GENERAL**

See [FAR Subpart
7.4](http://205.130.237.11/far/current/html/Subpart 7_4.html#wp1084017)
for guidelines for determining whether to acquire equipment by purchase
or by lease. Separate guidelines for automatic data processing equipment
and telecommunications equipment are contained in the HHS Information
Resources Management Manual and [OMB Circular
130](http://www.whitehouse.gov/omb/circulars/a130/a130trans4.html).\
\
**[SUBPART 103-25.49 \-- ILLUSTRATION OF FORMS]{.underline}**

See FPMR 103-25.49, the HHS Forms Catalog, and the appropriate HHS
Logistics Procedural Guides for illustration of forms. The HHS Forms
Catalog and Procedural Guides may be obtained from the Materiel
Management Branch, ASC, Room G322A, Switzer Building.

# PART 103-26 PROCUREMENT SOURCES AND PROGRAMS

## SUBPART 103-26.1 GENERAL

### 103-26.100 SCOPE

This subpart provides general policy guidance concerning procurement of
lowest cost items from GSA supply sources.

#### 103-26.100-1 PROCUREMENT OF LOWEST COST ITEMS

> When the item(s) required are available from the PHS Supply Service
> Center, GSA or DLA and Federal Supply Schedule (FSS), the source
> having the lowest cost item which serves the required purpose
> (functional end use) will be used. Wherever possible, a single order
> for total requirements will be placed with GSA Customer Service Center
> (CSC), Defense Logistics Agency (DLA), or the Federal Supply Service
> (FSS) contractor. Normally when purchasing items from GSA and DLA, the
> administrative costs will be substantially less when acquired by means
> of a FEDSTRIP requisition, than those incurred through FSS purchases.
>
> Refer to [FPMR
> 101-26.107](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-26&SECTION=107&YEAR=1999&TYPE=TEXT)
> and FPMR Amendment E-268 for information on \"Sources of Supply for
> Goods and Services.\" This information provides clarification and
> guidance on current policies for using GSA supply sources.

Refer to [FAR Subpart
8.002](http://www.arnet.gov/far/current/html/Subpart_8_1.html).

#### 103-26.100-2 REQUESTS FOR WAIVERS 

> Requesting offices shall request a waiver from the use of priority
> sources, including the Federal Prison Industries (FPI), and GSA stock
> or schedule items, as specified in current
> [FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_00/41cfrv2_00.html)/[FMR](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfrv3_06.html)
> regulations, and terms of the contract.
>
> In cases where a waiver has been denied by GSA or FPI, and a component
> believes the denial is unreasonable or is not being processed timely,
> the Office of Acquisition Management and Policy (OAMP), Assistant
> Secretary for Administration and Management (ASAM) should be contacted
> for guidance or assistance.

#### 103-26.100-3 WARRANTIES

> Items or services obtained from GSA that requires corrective action
> according to an included warranty, shall be processed as stated in
> [FPMR
> 101-26.100-3](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-26&SECTION=100-3&YEAR=1999&TYPE=TEXT).
> Also, to ensure that a warranty will be honored:

A.  Records of warranty data are to be maintained. 

B.  Property Custodians and end users must know warranty periods and
    provisions.

C.  Warranty provisions are reviewed before approving the repair of
    personal property to decide if the terms apply.

### 103-26.102 SPECIAL BUYING SERVICES

GSA will, upon request of HHS offices and operating units, do purchasing
services for items in quantities above those contained in GSA catalogs
and Federal Supply Schedules, on either a national or regional basis.
HHS requests for this service shall emanate from the applicable HHS
procurement organization.

### 103-26.103 ESTABLISHING THE NEED FOR REQUIREMENTS 

See [FPMR
101.26-103](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-26&SECTION=103&YEAR=1999&TYPE=TEXT).

#### 103-26.103-2 RESTRICTIONS ON PERSONAL CONVENIENCE ITEMS

> After review and approval by the head of the component administrative
> activity, appropriations may be expended for work related programs,
> consistent with the agency mission, but not for the personal
> convenience of an employee. Government funds may be expended for
> pictures, objects of art, and plants for common-use corridors or
> lobbies when approved by the agency head or designee.

Appropriated funds will not be expended for:

A.  Beverages (including coffee or tea) and related equipment and
    supplies for offices, office reception areas, or conference rooms.

B.  Radios, refrigerators, microwave ovens, televisions, general
    interest newspapers or magazines, or voice amplification
    equipment designed for use with telephones, unless:

C.  The individual or staff cannot be required to perform regular duties
    without the item(s) and,

D.  The item(s) acquired will be used with regular duties and not merely
    in emergencies or at infrequent intervals.

E.  Paperweights, ashtrays, plaques or similar items for distribution as
    public relations or mementos of cooperation.

F.  Business (calling), seasonal or greeting cards.

G.  Bottled drinking water, unless it is shown that available water is
    detrimental to the health of Government employees.

### 103-26.106 CONSOLIDATION OF REQUIREMENTS

Every effort will be made to consolidate small volume requirements when
lower prices are available in the market place for larger volume
procurement. This policy does not apply to GSA stock items and items
obtained from GSA Customer Supply Centers (CSCs). CSCs are designed to
support small requirements at the local level by permitting simplified
ordering via phone, mail, walk-in, or by using the U.S. Bankcard (credit
card) issued to Federal agencies by GSA. The CSCs stock items such as
office supplies, janitorial supplies etc. \
**\
****103-26.107 PRIORITIES FOR USE OF SUPPLY SOURCES**

Priorities for supplies and services shall be obtained and used in the
order shown in [FPMR
101-26.107](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-26&SECTION=107&YEAR=1999&TYPE=TEXT). 

[]{#BM103_26_150_PROCUREMENT_LEAD_TIMES_ .anchor}

**103-26.150 PROCUREMENT LEAD TIMES**

Procurement lead times in calendar days of commodities by Federal Supply
Classification are contained in FPMR 101-26.4801 and [FAR
17.1](http://www.arnet.gov/far/). These lead times should be used to
estimate delivery dates of items purchased by GSA following [LMM
103-26.102](http://knownet.hhs.gov/log/LMM/103-26.htm#103-26.102 SPECIAL BUYING SERVICES.%23103-26.102 SPECIAL BUYING SERVICES.).

[]{#BM103_26_151_INTERAGENCY_AGREEMENTS_ .anchor}

**103-26.151 INTERAGENCY AGREEMENTS**

Instructions on the use of HHS agreements, governing the acquisition of
supplies and services from Federal agencies other than GSA, are
contained in the HHS Procedural Guide, Inventory Control and Accounting,
and in [FAR Subpart 17.5](http://www.arnet.gov/far/).

[]{#BM103_26_152_USE_OF_GSA_SUPPLY_SOURCES_B .anchor}

**103-26.152 USE OF GSA SUPPLY SOURCES BY HHS CONTRACTORS**

Contractors working on a cost reimbursement basis are permitted to use
GSA supply sources and services in the support of such contracts. A cost
reimbursement contractor cannot transfer procurement authorization to a
third party leasing company to use GSA sources of supply and services,
unless the leasing company has an independent authorization to use GSA
contracts. Refer to [FAR Subpart 51.1](http://www.arnet.gov/far/). \
\
**103-26.153 USE OF GSA SUPPLY SOURCES BY HHS GRANTEES**

Except for the acquisition of excess personal property, HHS grantees are
ineligible to use GSA sources of supply and services. Excess property
may be provided to grantees only under the special conditions stated in
[FMR
102-36.155.](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-36.155.htm)

[]{#BM103_26_154_REVIEW_OF_REQUISITIONS_ .anchor}

**103-26.154 REVIEW OF REQUISITIONS**

**\
**All properly approved requisitions for new equipment and furniture
shall be forwarded by the components to their PMO, or his/her designee,
who shall:

Attempt to furnish all or part of the item(s) from the priority sources
of supply including unrequired/excess or rehabilitated sources.

Certify on the requisition that the equipment was not available from the
priority sources and forward the requisition to the procurement activity
for processing. If unrequired/excess or rehabilitated property is
available and not used, justification for not using it shall be
documented and made part of the purchase file.  The use of a stamp,
initials, or other form of acknowledgment of review by the PMO (or
his/her designee) is sufficient compliance.

### 103-26.155 RECEIVING REPORTS

HHS components shall establish effective procedures to ensure that the
receiving office, upon acceptance of accountable personal property,
notifies (in a timely fashion) financial, property, and procurement
management offices to hasten payment and the processing of
administrative records.

Receiving documents shall, at a minimum, include the following
information:

A.  Signature of the accepting official.

B.  Date of receipt.

C.  Complete description of the item(s), including:

D.  Manufacturer\'s name.

E.  Serial number(s)

F.  Barcode/Decal number.

G.  Final location (custodial) of the item.

H.  Partial or complete delivery notation.

I.  Defects or damage notation.

[]{#__RefHeading___Toc159985982 .anchor}**[SUBPART 103-26.2 \-- FEDERAL
REQUISITIONING SYSTEM]{.underline}**

This subpart prescribes a uniform requisitioning and issue system for
use in obtaining supplies and equipment from GSA, Department of Defense
(DOD) and Department of Veterans Affairs (DVA) sources. 

### 103-26.201 GENERAL

The Federal Standard Requisitioning and Issue Procedures (FEDSTRIP)
system will be used to requisition items from GSA, Department of Defense
(DoD) and the Department of Veterans Affairs (DVA). 

The GSA handbook, \"FEDSTRIP Operating Guide\" prescribes the methods
for obtaining supplies from GSA, DoD and VA. 

Federal Supply Service (FSS) personnel at each GSA regional office will
help agency field activities concerning FEDSTRIP actions. 

An additional source of information on the types of supplies and
services provided by GSA is the Multi-Use File for Interagency News
(MUFFIN). This is an on-line computerized information system. The GSA,
Customer Assistance Guide provides information on using the system.

[]{#__RefHeading___Toc159985984 .anchor}**103-26.202 ACTIVITY ADDRESS
CODES (AAC)**

Authority for activity address codes necessary for completion of single
line FEDSTRIP Form 1348 or multi-line requisitions shall be obtained by
the requiring component from the OS, OPDIV or RO head. Each component
shall maintain records for those individuals authorized the use of
activity address codes.\
\
**[SUBPART 103-26.3 \-- PROCUREMENT OF GSA STOCK ITEMS]{.underline}**

**\
**This subpart sets forth the policy governing the procurement of items
stocked by GSA. 

### 103-26.301 APPLICABILITY

All HHS components shall requisition requirements of GSA stock items
from GSA Customer Supply/Distribution Centers. For procedures refer to
FPMR 101-26.3 and FPMR Amend. E-268 \"Sources of Supply for Goods and
Services\" for current policies on using GSA supply sources.

While GSA is not a mandatory source of supply for items in the GSA
Supply Catalog when an individual requirement is below \$100, it is
Departmental policy to requisition stocked items from GSA, when time and
circumstances permit, if cost savings will occur. Requirements shall not
be split to avoid requisitioning from GSA.

[]{#__RefHeading___Toc159985986 .anchor}**103-26.301-1 SIMILAR ITEMS\
**When an operating component decides that items available from GSA
stock will not serve the required functional end-use purpose, a request
for waiver to use other sources of supply shall be processed following
LMM 103-26.100-2 and FPMR Amend. E-268.

### 

### 103-26.303 OUT-OF-STOCK ITEMS

Before commercial acquisition of out-of-stock items normally obtained
from GSA, ordering activities shall:

A.  Ask the earliest estimated delivery date of the prime item required.

B.  Explore the availability of substitute items.

[]{#__RefHeading___Toc159985988 .anchor}**103-26.309 CANCELLATION OF
ORDERS OF GSA STOCK ITEMS**

Discretion will be used in canceling low dollar value orders since it is
costly and interferes with normal order processing. 

[]{#__RefHeading___Toc159985989 .anchor}**103-26.310 ORDERING ERRORS**\
\
HHS components may return, for credit, stock items ordered in error if
the return meets the following provisions:

A.  The items have been offered on an intra-agency (reimbursable or
    nonreimbursable) basis as excess, and; 

B.  The items have been offered on an interdepartmental (reimbursable)
    basis for the same amount offered by GSA. In this regard, agency
    PMOs will inform Departmental counterparts of all items being
    considered for return to GSA and the amount of reimbursement
    required. 

[]{#__RefHeading___Toc159985990 .anchor}**[SUBPART 103-26.4 \-- PURCHASE
OF ITEMS FROM FEDERAL SUPPLY SCHEDULE (FSS) CONTRACTS]{.underline}\
\
**This subpart covers the mandatory and non-mandatory Federal Supply
Schedules and their exceptions, use of the National Credit Card,
security equipment, lowest price procurement, multiple award schedules,
and price reductions in Federal Supply Schedule items during a contract
period. 

[]{#__RefHeading___Toc159985991 .anchor}**103-26.401-2 PRIMARY SOURCE OF
SUPPLY CONCEPT**\
\
HHS components will follow the stipulations in the Federal Supply
Schedules (FSS) which require activities in designated   geographical
areas to make purchases under specific contracts. \
\
**103-26.403 PERFORMANCE AND DEFAULT UNDER FEDERAL SUPPLY SCHEDULE
CONTRACTS**\
\
HHS elements will deal directly with Federal Supply Schedule contractors
in ordering, making payments, deciding whether items or services meet
contract terms, and arranging for inspections, (unless the schedule
provides for GSA inspection) delinquent performance, contract disputes,
default declaration of the contractor by HHS or GSA, and reporting
failures to collect excess costs (unless the schedule provides for GSA
inspections). HHS elements may arrange for inspection assistance by GSA
where specifications and technical descriptions are involved.

[]{#__RefHeading___Toc159985992 .anchor}**103-26.403-2 INSPECTION**\
\
Inspection and acceptance of items under Federal Supply Schedules shall
be conducted according to the FPMR. When source inspection is not
provided by GSA, ordering offices are responsible for inspection and
acceptance as specified in [FAR Subpart
8.405-3](http://www.arnet.gov/far/). At a minimum each acquisition shall
be inspected for proper identity, quantity, and shipping damage before
acceptance.

[]{#__RefHeading___Toc159985993 .anchor}**103-26.405 AUTOMATIC DATA
PROCESSING EQUIPMENT\
**\
Refer to [FAR Part 39](http://www.arnet.gov/far/), HHSIRMM, and [OMB
Circular
130](http://www.whitehouse.gov/omb/circulars/a130/a130trans4.html)
covering the procurement of automatic data processing equipment (also
known as federal information processing equipment (FIP)), software,
maintenance services and supply.

[]{#__RefHeading___Toc159985994 .anchor}**103-26.406-7 U.S. GOVERNMENT
NATIONAL CREDIT CARD FOR USE IN OBTAINING SERVICE STATION SERVICES**\
\
Use of Standard Form 149, U.S. Government National Credit Card is
mandatory except where its use would not be in the best interest of the
Department. Deviations from this policy may be granted by the head of
the Operating Division or designee.

[]{#__RefHeading___Toc159985995 .anchor}**103-26.408 MULTIPLE AWARD
CONTRACTS**

Orders should be placed with the schedule contractor offering the lowest
price available. Justification should be included in the procurement
file for any orders over \$500 per line item placed at other than the
lowest price.

When requirements can be met by items of foreign and domestic origin,
and the lowest priced acceptable item(s) is of foreign origin, the
percentage factor set forth in [FAR Part 25](http://www.arnet.gov/far/)
will be applied to decide whether a foreign or domestic item shall be
purchased. 

When items meeting the user\'s needs are available from two or more
contractors at the same net delivered price, selection of a contractor
will be based on the priorities established in [FAR Subpart
8.404-1](http://www.arnet.gov/far/). However, if circumstances require
the selection be made from other than a labor surplus area concern or a
small business concern, a statement fully justifying the action signed
by the chief procurement official of the ordering activity shall be
retained in the procurement file. 

Items which are from the GSA customer supply centers and which are \$500
or less per line item are exempt from the requirement to justify
purchasing other than the lowest cost item. 

[]{#__RefHeading___Toc159985996 .anchor}**[SUBPART 103-26.5 \-- GSA
PROCUREMENT PROGRAMS]{.underline}**

This subpart prescribes policies relating to GSA procurement programs
other than the GSA stock and Federal Supply Schedule programs. It also
does not include the procurement of automatic data processing equipment
and services which are set forth in the HHSIRMM, [OMB Circular
130](http://www.whitehouse.gov/omb/circulars/a130/a130trans4.html) and
the [FAR](http://www.arnet.gov/far/).

### 103-26.501 PURCHASE OF NEW MOTOR VEHICLES

Acquisition of motor vehicles for transportation of officers or
employees of the Department shall conform to types of vehicles
authorized for departmental use in LMM 103-25.352 and [FPMR
101-26.501](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-26&SECTION=501&YEAR=2000&TYPE=TEXT). 

When a component has approval for the purchase of new motor vehicles all
requisitions are to be submitted to GSA according to [FPMR
101-26.501-3](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-26&SECTION=501-3&YEAR=1999&TYPE=TEXT).
Unless a waiver is granted by GSA, all motor vehicles shall be purchased
by GSA. Component activities with specialized requirements for passenger
motor vehicles and trucks showing a need for procurement from sources
other than GSA, shall forward each request for waiver, justifying such
procurement to GSA as outlined in FPMR 101-26.501-1(b), through the
Office of Acquisition Management and Policy (OAMP), Assistant Secretary
for Administration and Management (ASAM). Specific guidance for the
purchase and leasing of motor vehicles is contained in LMM 103.38. 

Used vehicles being replaced will be disposed of following FMR
102-34.310. If vehicles are disposed of or transferred, property
managers shall notify manufacturers of the exact address to which Motor
Vehicle Defect Notices are to be sent.

[]{#__RefHeading___Toc159985998 .anchor}**[SUBPART 103-26.6 \--
PROCUREMENT SOURCES OTHER THAN GSA]{.underline}**

**\
**This subpart prescribes the policies and limitations relating to the
use of procurement sources of the Department of Defense (DOD) which
include the Defense Logistics Agency (DLA). As part of the National
Supply System generally managed by GSA, DLA is directly responsible for
managing certain machinery parts, hardware, and other items. Items from
DLA\'s Defense Supply Centers are described in the GSA Supply Catalog
for Civil Agencies, published by GSA. 

### 103-26.602 FUELS AND PACKAGED PETROLEUM PRODUCTS OBTAINED FROM THE DEFENSE LOGISTICS AGENCY 

Departmental activities shall obtain fuels and packaged petroleum
products from the Defense Logistics Agency (DLA) (excluding
service station delivery items) unless;

A.  Annual requirements are less than those stated in [FPMR
    101-26.602](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-26&SECTION=602&YEAR=1999&TYPE=TEXT),
    or

B.  Granted local purchase authority by DLA. 

Annual requirements for fuels and packaged petroleum products, for
activities receiving such support from DLA, shall be solicited by each
applicable property or supply management activity, according to due
dates for the procurement programs cited in the FPMR. 

[]{#__RefHeading___Toc159986000 .anchor}**103-26.650 SUBSISTENCE ITEMS
AVAILABLE FROM DOD**\
Perishable subsistence items may be obtained by HHS hospitals using the
procurement and supply sources of the Defense Personnel Support Center,
DPSC/DLA. Procedures are contained in the HHS Procedural Guide,
Inventory Control and Accounting. \
\
**[SUBPART 103-26.7 \-- PROCUREMENT SOURCES OTHER THAN GSA AND THE
DEPARTMENT OF DEFENSE]{.underline}**

**\
**This subpart sets forth policy concerning procurement from sources of
supply other than GSA and DoD. 

### 103-26.701 PURCHASE OF PRODUCTS FROM THE BLIND OR SEVERELY HANDICAPPED PERSONS.

Provisions of LMM 103-26.3 apply where products are carried in GSA
supply service centers.

Purchase of products or services not carried in GSA supply distribution
facilities must be made following the procurement list published by the
Committee for Purchase of Products and Services of the Blind and Other
Severely Handicapped. The list may be obtained from any GSA regional
office. 

[]{#__RefHeading___Toc159986002 .anchor}**103-26.702 PURCHASE OF
PRODUCTS MANUFACTURED BY THE FEDERAL PRISON INDUSTRIES, INC.**

A schedule of products made in the Federal Penal and Correctional
Institutions is available from the Federal Prisons Industries, Inc., c/o
Department of Justice, Washington, D.C. 21537. When supplies
manufactured by an agency for the blind are identical or similar to
those manufactured by the Federal Prison Industries, Inc., priority of
procurement shall be given to the Federal Prison Industries, Inc.

[]{#BM103_26_750_PROCUREMENT_FROM_PHS_SUPPLY .anchor}

**103-26.750 PROCUREMENT FROM PHS SUPPLY SERVICE CENTER (SSC), PERRY
POINT, MD**

It has been determined that the best interests of the Department will be
served by requiring the SSC to compete for the medical supply business
of HHS components on the basis of service and pricing rather than by
compelling the components to buy from the SSC as a mandatory source.
However, the SSC is considered as a Government wholesale supply source
along with the DLA and DVA and procurement shall be made from the least
costly of those supply or other sources.\
\
**103-26.751 PROCUREMENT OF MEDICAL SUPPLIES FROM THE DEPARTMENT OF
VETERANS AFFAIRS (DVA)**

HHS components having health units or clinics may use DVA sources of
supply for medical supplies and equipment not available from
Departmental sources of supply, if less costly. The DVA is the other
major government entity, besides GSA and DLA, which is responsible for
part of the National Supply System. The DVA purchases and stocks a
variety of medical, dental, and hospital supplies and equipment. Use of
this source of supply is limited to HHS health units and clinics headed
by a physician or registered nurse.

[]{#BM103_26_752_PROCUREMENT_FROM_THE_GOVERN .anchor}

**103-26.752 PROCUREMENT FROM THE GOVERNMENT PRINTING OFFICE (GPO)**

Items for use, within the metropolitan Washington, D.C. area, listed in
the GPO Catalog and Price List (e.g., blank paper and envelopes) shall
be acquired from GPO or GSA stores. Although acquisition of such items
from these sources is not mandatory outside the metropolitan Washington,
D.C. area, it should be used in all instances where economically
feasible.\
\
**103-26.753 USE OF THE U.S. GOVERNMENT BANKCARD\
**

The Bankcard is a unique charge card issued under contract by GSA. The
Bankcard can be used to make small purchases of office supplies and
items needed in the day-to-day operation of the organization. These
items include typewriter ribbons, adding machine tape, rubber stamps,
supplies for Fax machines, time stamps, or other small office equipment
and machine repairs. 

HHS components shall use this new procurement/payment tool to the
maximum extent practicable to help reduce workload and paperwork
processing; improve cash management practices; and provide procedural
checks to improve management control and decision making. 

The Bankcard is for [official use only]{.underline}; no personal or
personalized items may be acquired, and the government takes title to
all goods ordered. 

The ordering office that uses a Bankcard is responsible for performing
the \"[receiving]{.underline}\" functions for these goods and/or
services. If the shipping destination is different than the ordering
office location, an official in the destination office can confirm
receipt by acknowledging receipt to the ordering office.

All purchases of accountable personal property shall be tracked and
reported following the policies and procedures outlined in LMM 103-27. 

[]{#__RefHeading___Toc159986005 .anchor}**[SUBPART 103-26.8 \--
DISCREPANCIES OR DEFICIENCIES lN GSA OR DOD SHIPMENTS, MATERIALS, OR
BILLINGS]{.underline}\
\
**A uniform system has been established and will be used for reporting
quality deficiencies in GSA or Department of Defense shipments and
material and processing requests for documenting adjustments in
billings. Procedures are contained in both the FPMR and the GSA
Handbook, Discrepancies or Deficiencies in GSA or DOD Shipments,
Materials, Billings.  \
\
**[SUBPART 103-26.49 \-- ILLUSTRATION OF FORMS]{.underline}\
**

Refer to FPMR 101-26.49, the HHS Forms Catalog and the appropriate HHS
Procedural Guides for illustration of forms. 

[]{#__RefHeading___Toc159986006 .anchor}**[SUBPART 103-27.50
ACCOUNTABILITY AND PROPERTY RECORDS]{.underline}\
\
****103-27.5000 SCOPE**\
The requirements for accountability and property records prescribed in
this subpart are the minimum necessary for effective acquisition,
management during use, and disposal of personal property. Accountability
requirements and records for supplies are discussed in LMM 103-27.56. 

### 103-27.5001 GENERAL

#### 103-27.5001-1 PERSONAL PROPERTY MANAGEMENT

> Personal property is an important resource that shall be managed as
> closely as financial and employee resources are managed. Every
> Department employee has a responsibility to safeguard personal
> property from loss and misuse. Managers have the additional
> responsibility to have policies and procedures in place to ensure
> personal property is acquired, distributed, maintained, and disposed
> of in a manner that maximizes its utilization in carrying out the
> missions of the Department.
>
> To assist employees and managers in carrying out their
> responsibilities for safeguarding and maximizing the utilization of
> personal property, the Department establishes personal property
> accountability policies and procedures and professional property
> management positions and organizations. The property management
> professionals primarily involved in property accountability are the
> Property Management Officer (PMO) and the Property Accountability
> Officer (PAO). Assisting these officials at the local level are
> property custodial officers. Authority for and descriptions of the
> responsibilities of these personal property management officials are
> provided in [103-1.50 Authorities and
> Responsibilities](http://knownet.hhs.gov/log/LMM/subchapa.htm#Subpart_103-1.50_--_AUTHORITIES_AND_RESPONSIBILITIES).

[]{#__RefHeading___Toc159986008 .anchor}**[SUBPART 103-27.51 PROPERTY
MANAGEMENT AREAS AND OFFICERS]{.underline}**

#### 103-27.5101-1 GENERAL 

> The OPDIV and PHS component property management officers shall divide
> the organizations that they are responsible for into accountable
> areas. The property accountability officers shall divide their
> accountable areas in custodial areas. The size of accountable areas
> and custodial areas shall be determined by considering the amount of
> property to be managed, the level of property management activity in
> the organization, and the geographical location of the organization.
> Normally, major geographically remote locations should be separate
> accountable areas.

#### 103-27.5101-2 DESIGNATION OF THE PROPERTY ACCOUNTABILITY OFFICER

> With the concurrence of the head of the accountable area, the property
> management officer shall designated in writing an employee as the
> property accountability officer for the accountable area. The head of
> the accountable area shall perform the functions of the accountability
> officer during any period when an accountability officer has not been
> designated or has not accepted accountability unless the property
> management officer accepts responsibility for the accountable area.
>
> The employee appointed as an accountability officer should be
> experienced in property matters in order to perform the
> responsibilities listed in 103-1.

#### 103-27.5101-3 ASSUMPTION OF ACCOUNTABILITY 

> The accountability officer shall assume responsibility for the
> personal property assigned to his/her accountable area in writing.
> This statement of acceptance of responsibility shall include a
> description of the accountable area and a list of the accountable
> property in the accountable area. The list should be based on an
> physical inventory of the accountable property. 

#### 103-27.5101-4 RELIEF FROM ACCOUNTABILITY

> An accountability officer is relieved of his/her responsibility only
> in writing by the acceptance of responsibility for the property by
> his/her successor or the property management officer. 

[]{#__RefHeading___Toc159986009 .anchor}**103-27.5102 DESIGNATION OF
CUSTODIAL AREAS AND PROPERTY CUSTODIAL OFFICERS**

####  103-27.5102-1 ESTABLISHING CUSTODIAL AREAS

> Custodial areas shall be established by the property accountability
> officer. Custodial areas will coincide with structured elements of the
> major organization. The number of custodial areas shall be based on
> the minimum required for effective management of personal property. 

#### 103-27.5102-2 DESIGNATION OF PROPERTY CUSTODIAL OFFICERS 

> The property custodial officer is an employee designated in writing to
> be responsible for the proper use, maintenance, and protection of
> property entrusted to his/her possession or charged to his/her
> custodial area. Specific duties are listed in 103-1.

Selection. Individuals selected to serve in a custodial capacity should
be, whenever possible:

A.  Employed in a position carrying administrative responsibilities for
    direction and/or supervision of an organizational unit or reporting
    to an official with such responsibility.

B.  Relatively free from duties requiring any appreciable amount of
    travel.

Designation.

A.  Heads of program offices, field offices and field installations and
    appropriate organizational units shall recommend to the property
    accountability officer the employees to be designated property
    custodial officers.

B.  Property custodial officers for mobile or temporary activities shall
    be designated by the chief of the administrative office to which
    they report.

#### 103-27.5102-3 RECORDS OF PROPERTY CHARGED TO CUSTODIAL AREAS

> Accountability for property assigned to custodial areas rests with the
> property accountability officer. When property is put to use,
> custodial responsibility shall be vested with a designated property
> custodial officer within the using area, and records which indicate
> the articles of property that are charged to each custodial area will
> be maintained.\
> \
> As a minimum, property custodial records will document the custodial
> area inventory and additions to and subtractions from the inventory.
> Additional records which may be helpful and procedures for their use
> are contained in the [HHS Property Custodial Officer
> Guide](http://knownet.hhs.gov/log/AgencyPolicy/HHSLogPolicy/HHSGUIDE.PDF).
>
> A copy of documents indicating issue and receipt for the property by
> the property custodial officer shall be maintained in the accountable
> office. The receipt forms should be maintained by the custodial area.
> Evidence of the joint inventory serves as an opening receipt for a new
> or successor property custodial officer\'s account.

[]{#__RefHeading___Toc159986010 .anchor}**[SUBPART 103-27.52 PROPERTY
RECORDS AND DOCUMENTATION REQUIREMENTS.]{.underline}**\
\
**103-27.5201 GENERAL**

Accountability of property is accomplished with records. Property
records are official documents which reflect the date of acquisition or
disposal of property; a cross-reference to the acquisition or disposal
voucher; the cost or affixed valuation of property; the quantity and
value affected by each transaction.\
\
Each accountable area within HHS shall maintain records of its
accountable personal property in an automated system. The records may be
part of a larger system that serves more that one accountable area. The
system should be integrated with the financial records system and the
procurement system of the accountable area and provide subsidiary
ledgers to the general ledger. The system will provide for the separate
identification of capitalized and non-capitalized property, and an
adequate method of documentation for recording additions to and
subtractions from inventory (both in terms of items and in dollar
values).\
\
Accountable areas are encouraged to keep records on non-accountable
personal property to facilitate in-use management and to provide
required data for the disposal process.

[]{#BM103_27_5202_AUTOMATION_ .anchor}

**103-27.5202 AUTOMATION**

Automation of property records, documents and forms shall be the
standard method of conducting HHS property management. This document
describes functional responsibility for the accountability of personal
property to allow components to have flexibility in developing automated
systems and electronic documents. As long as these automated systems and
documents contain the same information and achieve the same purpose as
the manual systems and paper forms, components are authorized and
encouraged to automate all aspects of property management. Electronic
signatures are authorized as long as they use appropriate safeguards
(i.e., secure passwords).

[]{#BM103_27_5203_DATA_ELEMENTS__ .anchor}

**103-27.5203 DATA ELEMENTS**

Accountable property records will at a minimum contain the following
data elements: 

Acquisition cost Location

Acquisition date Maintenance contract code

Common Account Number (CAN) Manufacturer

Condition code Model

Cumulative depreciation Name

Custodial code Object classification

Decal/bar code number Purchase order number

Estimated life Receiving organization

Federal stock classification Serial number

Item description Transaction date

Lease buy-out costs Transaction code

Lease expiration date Warranty expiration date

Lease cost

[]{#BM103_27_5204_PROPERTY_TRANSACTIONS__ .anchor}

**103-27.5204 PROPERTY TRANSACTIONS**

** **\
All increases and decreases in personal property shall be documented and
acknowledged by the appropriate property management official. Increase
can occur as a result of purchases, transfers, gifts or discovery during
an inventory. Decrease can occur as a result of transfers, disposals,
and losses.\
\
**103-27.5205 DOCUMENTATION**

Examples of various HHS forms that have been used to document property
transactions are illustrated in the Inventory Control and Accounting
Procedures Guide.

[]{#BM103_27_5206_GIFTS__DONATIONS_AND_TRANS .anchor}

**103-27.5206 GIFTS, DONATIONS AND TRANSFERS**

** **\
Accountable personal property acquired by donation, or by expenditure of
funds donated for that purpose and transfers-in from other Federal
agencies, shall be recorded in the property records. Procedures for
valuation of donated property are contained in the HHS Department
Accounting Manual. Whenever possible, transferred-in property should be
valued at the amount shown on the original owner\'s property records.

###  103-27.5207 RECEIPTS FOR PROPERTY

#### 103-27.5207-1 SIGNATURE AUTHORITY

> All property acquired by an HHS activity shall be signed for by an
> individual designated to receive property for the activity. Each
> component shall establish procedures to designate in writing the
> individual(s) authorized to receive items.

#### 103-27.5207-2 AUTOMATED RECEIVING PROCEDURES

> Hand signature receiving reports are not required for those HHS
> activities that have developed and implemented automated receiving
> systems.

[]{#BM103_27_5208_MARKING_PROPERTY__ .anchor}

**103-27.5208 MARKING PROPERTY**

All personal property that may be subject to loss or theft shall be
marked to identify it as \"Property of the U.S. HHS\" and the name of
the HHS component except for property of such low value that marking the
property would not be cost beneficial. Accountable personal property and
capitalized personal property shall be marked with unique bar-codes.
Property which by its nature cannot be marked is exempted from this
requirement; however, if it is accountable personal property, it shall
have a bar-code number assigned to it.

[]{#BM103_27_5209_LIFE_EXPECTANCY__DEPRECIAT .anchor}

**103-27.5209 LIFE EXPECTANCY, DEPRECIATION, AND UNIFORM DESCRIPTION
CODES**

#### ** **103-27.5209-1 GENERAL 

> To support financial accounting requirements, property management
> calculates and provides information on depreciation of capitalized
> personal property to their financial offices. Section 1-30-20 of the
> Department Accounting Manual contains instructions on computing
> depreciation for capitalized equipment. 

####  103-27.5209-2 LIFE EXPECTANCY

> Life expectancy (identified in years) provides data for determining
> depreciation and replacement. To establish uniformity in the
> Department\'s financial records, the Life Expectancy (LE) Tables shown
> in the Veterans Administration (VA Catalog No. 3, Section V)
> Non-Expendable Items will be used as a guide for the uniform
> establishment of the standard LE. The Life Expectancy Tables do not
> imply that equipment scheduled for replacement in a given year has to
> be replaced or should not be replaced prior to or after that date.
> Obsolescence and abnormal circumstances of use may effect
> predetermined useful life of equipment. In most instances, a physical
> inspection of the equipment is required to determine if a replacement
> is in order.

#### 103-27.5209-3 DEPRECIATION 

> Property management officers will calculate depreciation on
> capitalized personal property and reported the calculated amount to
> their finance offices, at least annually, as explained in the
> Department Accounting Manual at 1-30-20D. The amount of accumulated
> depreciation on an item will be reported to the finance office when
> the item is removed from the inventory through transfer or disposal. 

####  103-27.5209-4 UNIFORM CLASSIFICATION AND DESCRIPTION CODES

> Uniform descriptions are required for use by all HHS activities to
> promote government-wide uniformity. The Federal Supply Classification
> (FSC) is a four digit number which groups similar items into commodity
> classes. Related to each number or code is a description of the type
> items classified in each commodity class. They are contained in
> Cataloging Handbook H-2, which may be obtained from the Superintendent
> of Documents, Government Printing Office, Washington, D.C. 20402.

### 103-27.5210 PERSONAL CUSTODY PROPERTY

####  103-27.5210-1 GENERAL

> Personal custody property consists of personal property items issued
> for the exclusive use of an employee, including all items of
> accountable property used by personnel while in travel status. 

#### 103-27.5210-2 RECORD AND RECEIPT

> When an item designated as personal custody property is issued for the
> personal use of an individual or a unit, a Personal Custody Property
> Record shall be prepared. The employee to whom the property is issued
> shall acknowledge receipt of the property by signing a Personal
> Custody Property Record.

The signed Personal Custody Property Record shall be retained by the
Property Custodial Officer.

> Employees to whom items of personal custody property are issued shall
> account for such items at the time of transfer, separation, change in
> duties, or on demand by the proper authority.

[]{#__RefHeading___Toc159986019 .anchor}**103-27.5211 ACCOUNTING FOR
LEASED PROPERTY**

The property management officer shall maintain a property record,
similar to the accountable property record, for each item or group of
identical items leased by the organization for which he/she is the
accountable official. In addition to the information kept on accountable
property, the records shall contain the following information:

A.  Condition when received, whether used or new.

B.  Reference to the lease, contract or agreement including lease rates.

C.  Length of lease agreement. 

D.  Whether the item is leased under conditions that will lead to
    ownership, and the date when the ownership option should be decided.

Property having a value of \$5,000 or more that is being leased to
ownership shall be reported to Finance.

[]{#__RefHeading___Toc159986020 .anchor}**[SUBPART 103-27.53 EVALUATION
AND MEASUREMENT IN HHS]{.underline}\
PERSONAL PROPERTY MANAGEMENT (Performance Measures)\
**\
**103-27.5301 GENERAL**

This subpart establishes the requirement for component logistics
programs to implement the report \"Evaluation and Measurement in HHS
Personal Property Management Programs."

[]{#__RefHeading___Toc159986021 .anchor}**[SUBPART 103-27.54
RECONCILIATION OF PROPERTY AND FISCAL ACCOUNTS]{.underline}**\
\
**103-27.5401 GENERAL**

This subpart establishes Departmental policy and provides criteria for
the integration of item records for capitalized property with general
ledger control accounts maintained by finance and accounting offices.
The integration and periodic reconciliation of these accounts are
required by the Budget and Accounting Procedures Act of 1950 (P.L. 784,
81st Congress). In order to facilitate the reconciliation of finance and
property records, components of the Department shall develop integrated
financial management systems that share procurement, financial and
property data.

[]{#__RefHeading___Toc159986022 .anchor}**103-27.5402 CONTROL ACCOUNTS**

Control account is a term to designate accounting records maintained in
terms of dollars by the financial accounting organization. These
accounts (1750 series, see Departmental Accounting Manual Exhibit
4-20-A) reflect the acquisition dollar values of capitalized property on
hand. They serve as a control since their values are used as a base
figure against which the sum total of individual capitalized property
records maintained by the personal property accountability office must
balance. Imbalances between the two values can be caused by posting
errors, losses, misappropriation of property, etc.

[]{#BM103_27_5403_CONTROL_ACCOUNTS_ARE_ESTAB .anchor}

**103-27.5403 CONTROL ACCOUNTS ARE ESTABLISHED IN THE GENERAL LEDGER**

Property records are necessary to provide the supporting data for
financial accounting. Both property and fiscal records should reflect
equal value. In order to insure that they reflect equal value in the
correct ledger account, it is essential that:

The pertinent data on documents reflecting transactions affecting the
value and/or status of personal property is entered in both the property
and fiscal records. This is most easily accomplished by complying with
the legal requirement to have integrated financial systems. 

Changes in the status of property, such as when the property changes
from capitalized to non-capitalized or vice versa because of additions
or deletions of components or when property is moved from \"in-use\" to
\"government furnished property\", are provided to the office of
finance.

Time targets for accomplishing recordings shall be established. For
example, where both fiscal and property records are maintained at the
same installation, a reasonable time to process the property vouchers
for recording transactions in both property and fiscal records is five
workdays.

All items recorded on property records as capitalized must also be
reflected in the fiscal records.

[]{#__RefHeading___Toc159986024 .anchor}**103-27.5404 DOLLAR VALUES**

Each unit of accountable personal property received is to be given an
acquisition value, whether the unit was purchased, agency fabricated, or
received by donation or transfer.

####  103-27.5404-1 PURCHASE PRICE

> Purchase price shall be increased by transportation and/or
> installation costs and decreased by discounts if these amounts
> materially affect price. If a purchase price is not available
> (including for donated and excess property), an estimated value will
> be established based on the value of similar items or prices listed in
> catalogs.

#### 103-27.5404-2 FABRICATED PRICE

> The value of agency fabricated equipment is to be based on direct
> material and labor costs together with an amount representing
> overhead.

[]{#__RefHeading___Toc159986025 .anchor}**103-27.5405 FREQUENCY OF
RECONCILIATION OF PROPERTY AND FISCAL RECORDS**

Reconciliation between the subsidiary capitalized accounts and the
fiscal general ledger accounts shall be accomplished monthly.

[]{#__RefHeading___Toc159986026 .anchor}**[SUBPART 103-27.55 - LOAN OF
PERSONAL PROPERTY]{.underline}\
\
****103-27.5500 SCOPE**

This subpart provides HHS policy on the loan of personal property. 

### 103-27.5501 GENERAL

Personal property (except motor vehicles) may be loaned on a temporary
basis to a nonfederal institution, an organization., or an individual
when determined to be in the best interest of the government by the
heads of OPDIV, the Regional Directors, and Director, Administrative
Services Center, OS (or their designees) or specifically authorized
under laws, rulings, or regulations. 

[]{#__RefHeading___Toc159986028 .anchor}**103-27.5502 POLICY**

#### 103-27.5502-1 LOAN CRITERIA

> When it has been determined that the loan of HHS personal property to
> a non-federal element would be beneficial to the Government, the loan
> may be made, provided:

A.  The property is not currently required by another HHS organization,
    and its absence and use would not be used to justify new procurement
    of a similar article of property or acquiring a similar item from
    excess.

B.  The property is not excess. Excess property will be made available
    for other Federal use.

C.  The permitted use of the property will not cause the article to be
    destroyed or damaged.

D.  The agreement is subject to termination by the Government at any
    time at the discretion of the HHS authorizing official.

E.  The loan is for a specified time period.

F.  The approving official has determined the borrower to be in
    compliance with Title VI of the Civil Rights Act of 1964 (42 USC
    2000d, et seq.) by virtue of participation in other programs, or
    through an assurance from the borrower.

#### 103-27.5502-2 APPROVING LOANS

> The heads of OPDIV, the Regional Directors, and Director,
> Administrative Services Center, OS (or their designees) are
> responsible for making the determination that the loan of the property
> will serve a useful purpose or benefit the Government and for
> approving the loan. All approvals shall be transacted by a formal
> agreement. Each loan agreement shall contain statements denoting:

A.  A review period for the loan to an individual for twelve months, and
    every twelve months until the loan is completed.

B.  The intended use of the items(s) and purpose.

C.  The loaned property is nontransferable by the nonfederal recipient.

D.  The borrower will give the Government written advance notice of
    intent to return the property in sufficient time so as to facilitate
    receipt by the Government.

E.  The provision for termination of the loan agreement at any time by
    the Government.

F.  The stipulation of reimbursement or its absence.

G.  The borrower\'s responsibility for the delivery and/or return of the
    property at their own expense in as good a condition as when loaned.

H.  The loan criteria stated in LMM 103-27.5502-1 above have been met.

I.  The benefits to be derived by the Government, directly or
    indirectly, as well as other considerations to be provided the
    Government by the borrower.

#### 103-27.5502-3 ACCOUNTABILITY AND CONTROL OF LOANED EQUIPMENT

> Property on loan shall remain in the subsidiary records and general
> ledger accounts of the activity making the loan. A memorandum account
> is to be established by the property accountability officer to reflect
> and contain:

A.  An approved Personal Property Loan Record HHS Form 557 signed and
    dated by the borrower indicating receipt of property.

B.  A copy of the agreement with the borrower.

C.  Period of loan.

D.  Periodic confirmation of the existence of the loaned item.

#### 103-27.5502-4 LOANS OF HHS PERSONAL PROPERTY DURING DISASTER

> The Disaster Relief Act of 1974 (P.L. 94-288) authorizes Federal
> agencies on direction of the President to provide personal property
> and other resources to state and local governments during any major
> disaster or emergency.
>
> HHS organizations shall cooperate fully when a request is received for
> available personal property from the Executive Office of the
> President; the Federal Emergency Management Administration (FEMA);
> Department of Housing and Urban Development; a Governor or his/her
> authorized representative; or any HHS-counterpart State agency head or
> his/her authorized representative. Such property may be loaned under
> terms and conditions as promulgated by FEMA in execution of the
> President\'s declaration of a major disaster or emergency. Property
> accountability officers will maintain proper and accurate records of
> loaned personal property. After the circumstances necessitating the
> loan have passed, property will be returned or disposal action will be
> taken in accordance with LMM 103-43 or 103-44.

#### 103-27.5502-5 LOANS WITHIN HHS AND TO OTHER FEDERAL AGENCIES

> Personal property may be loaned or borrowed within the Department, and
> to or from other Government agencies, whenever there is a temporary or
> emergency need. Approval, justification, and documentation shall be
> the same as that prescribed in
> [103-27.5502-2](http://knownet.hhs.gov/log/LMM/103-27_5.htm#103-27.5502-2 APPROVING LOANS.%23103-27.5502-2 APPROVING LOANS.).

[]{#__RefHeading___Toc159986029 .anchor}**103-27.5503-1 ACCOUNTABILITY**

Accountability for property loaned to another internal organization or
to other Government agencies will remain with the HHS accountable area
authorizing the loan.

The Property Accountability Officer, for the activity using borrowed
property, shall be responsible for maintaining a record on each item.
The record shall include as a minimum a signed loan agreement and HEW
557.

[]{#__RefHeading___Toc159986030 .anchor}**[SUBPART 103-27.56 PROPERTY
FURNISHED CONTRACTORS AND GRANTEES]{.underline}**\
\
**103-27.5601 General**\
Government property furnished contractors and grantees and contractor
and grantee acquired property will be managed in accordance with LMM
103-60.\
\
**[SUBPART 103-27.57 \-- BOARD OF SURVEY PROCEDURES]{.underline}\
**\
**103-27.5700 SCOPE**

This subpart describes the Board of Survey process that will be used by
components of the Department to investigate all losses, damage and
destruction of government property, to establish liability for the loss
or damage and to provide relief from accountability.

[]{#BM103_27_5702_POLICY_ .anchor}

**103-27.5701 POLICY**

#### 103-27.5701-1 REPORTING

> Any employee who detects or suspects a loss of, damage or destruction
> to government property shall immediately report the situation to his
> or her supervisor.\
> \
> The supervisor or a person designated by the supervisor shall
> immediately make a preliminary investigation and report the facts
> using the Report of Survey through the Property Custodial Officer to
> the Property Accountable Officer (PAO).\
> \
> The PAO shall review the Report of Survey for completeness and add any
> additional information available to him or her and forward the report
> to the PMO.

#### 103-27.5701-2 PMO AUTHORITY AND RESPONSIBILITY

> The PMO shall investigate, review, approve, accept recommendations and
> assign financial responsibility on Reports of Survey except losses of
> property by individuals and organizations under the PMO\'s immediate
> supervision. The PMO may sign off on losses by his/her subordinates
> when the subordinate assumes financial liability for the loss.\
> \
> In assuming the authority for final determination on Reports of
> Survey, the PMO shall continually analyze the Reports of Survey to
> determine if the Reports indicate trends ,such as repeated losses from
> one location, losses of personal appeal items (weapons, precious
> metals, hand tools, etc) or losses that indicate systemic failures,
> that warrant further analysis and corrective action.

#### 103-27.5701-3 USE OF BOARDS OF SURVEY

> The PMO may use Boards of Survey at his/her discretion to investigate
> losses, damage and destruction and to review and make recommendations,
> including relief from accountability, to the Determining Official on
> Reports of Survey when an impartial third party opinion will benefit
> the survey process or give additional authority to recommendations.
> The PMO shall use Boards of Survey for losses of property under the
> PMO\'s responsibility.

#### 103-27.5701-4 DETERMINING OFFICIAL APPROVAL

> The Determining Official shall review and approved or return for
> reconsideration Reports of Survey from the Board of Survey.

[]{#__RefHeading___Toc159986032 .anchor}**103-27.5702 APPEALS**

Decisions by the Determining Official may be appealed to the head of the
HHS component.

[]{#__RefHeading___Toc159986033 .anchor}**103-27.5703 ADJUSTMENTS TO THE
GENERAL LEDGER**

The PMO shall provide to his/her office of finance copies of all Reports
of Survey that recommend deleting capitalized items of property from the
component property records.\
\
**103-27.5704 APPOINTMENTS TO BOARDS OF SURVEY**

The Determining Authority will appoint employees to serve on Boards of
Survey based on recommendations of the PMO. Employees of the immediate
office and subordinate offices of the office reporting the loss and
employees of the property management office shall not be appointed to
the Board. \
\
**[SUBPART 103-27.58 \-- INVENTORYING PERSONAL PROPERTY]{.underline}**

### 103-27.5801 PURPOSE

A physical inventory is necessary to verify the accuracy of records
which reflect the status of personal property; to reconcile the property
records with the fiscal records; discover the need for additional
safeguards to prevent misuse, theft, and other losses; and to disclose
procedural weakness in routing vouchers and posting inventory records.
The inventory can be coupled with either one or a combination of the
following:

A.  Utilization surveys of equipment in use.

B.  Preventive maintenance inspections where practicable to assure
    proper care of property.

C.  Scheduled equipment maintenance or replacement program actions.

### 103-27.5802 FREQUENCY

Accountable personal property shall be inventoried annually except that
accountable areas, which have determined through annual statistical
sampling of their inventories that their property  records contain an
error rate of 2% or less, are required to accomplish wall-to-wall
inventories only once every three years. Components with large
inventories should inventory one-third of their property each year.

A complete, physical inventory shall be conducted on sensitive items
annually.

Personal custody property shall be inventoried annually. When an
employee is authorized to remove personal custody items from HHS
facilities, a physical inventory is not required. However the employee
shall be required to make signed, written statement that the property is
still in his or her possession.\
\
**[SUBPART 103-27.60 SUPPLY SUPPORT]{.underline}**\
\
**103-27.6000 SCOPE**\
This part implements and supplements [FPMR
101-27](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfr101-27_99.html)
Inventory Management. It describes policies, principles, and guidelines
to be used in planning and managing supply support within the HHS.
Supply support is provided by intently focusing on customer needs and
decisively selecting and vigorously executing appropriate,
cost-effective logistics (acquisition and distribution) strategies to
meet those needs. Hence, there are two fundamental measures of supply
support: customer service and cost.  \
\
The following are policies and procedural information related to the
supply function:

A.  LMM 103-1.101 and 103-1.153 

B.  The DOD Joint Service Manual (JSM) for Storage and Materials
    Handling. 

### 103-27.6001 POLICY

From a logistics perspective, all HHS personnel are divided into two
groups: customers and suppliers. Customers request supplies, equipment,
and services in order to perform their duties. Cost-effective duty
performance is defined as performance that furthers HHS mission
accomplishment by providing the needed item at the best mix of cost,
schedule, and resources. Conversely, unsuccessful or cost-ineffective
job performance hinders or delays mission accomplishment and wastes
limited resources.  Therefore, when supplies, equipment, and services
contribute to cost-effective job performance, they are important to
productivity and mission accomplishment. For this reason, every effort
should be made to anticipate customer needs and provide for their quick
and efficient satisfaction.

When supplies, equipment, and services either do not or no longer
cost-effectively contribute to mission accomplishment, they represent a
misallocation of resources and a drag on productivity. Organizational
teamwork and cooperation are needed to recognize when specific supplies,
equipment, and services are and will be cost-effective \-- when their
use, over other alternatives, justifies their expense.

Precise, factual and timely information is needed in order to reach such
recognition and consensus. Such universal recognition and consensus
poses complex forecasting, information gathering, analysis, and
communication problems.  Even with nearly perfect information, consensus
is difficult to achieve because individual perspectives and priorities
differ. Nonetheless, cooperation and teamwork are essential for
cost-effective supply support. There is no substitute for these critical
ingredients of supply support. Without cooperation and teamwork, supply
support cannot be what it should be. 

Customers contribute to the team goals of productivity, cost effective
supply support, and waste avoidance by striving to assure that their
requirements are essential to mission  performance; that they are
well-defined; and that they are accurately communicated to suppliers.
Customers should remain open to ideas that may reduce costs while still
achieving the mission outcomes they seek. Customers should strive to
understand the full range and scope of the costs associated with their
requests. Customers, consistent with the nature of the item or items
requested, should also weigh the benefits expected to accrue against
their costs before or at the time they decide to place an order.

HHS supply personnel, on the other hand, shall contribute to the team
goals of productivity, cost-effective supply support and waste avoidance
by making it easy for customers to communicate their needs and by
streamlining the acquisition and distribution processes used to meet
those needs. In this way, the overall cost of ordering, holding, and
using supplies, equipment and services is reduced. Reduced costs, in
turn, make delivered products and services more cost effective than they
otherwise would have been because less overhead will have been involved
in supplying them. Again, the teamwork of customers and suppliers is
essential for supply support that is responsive and in the best interest
of HHS mission accomplishment.

Supply inventories shall only be established after the determination
that maintaining an inventory is the most practical and economical way
to service the consuming organizations. In all other cases, established
supply support systems which include the IHS Supply Service Center, GSA,
DOD and the DVA supply systems, Federal supply schedules, indefinite
delivery contracts, credit cards and local purchase, shall be used in
lieu of the storage and issue of supplies by the OPDIV. Accountable
supply records are required for the centralized storage and distribution
of more than \$50,000 of supplies and any quantity of controlled
substances located in pharmacies, laboratories and nursing stations.

[]{#__RefHeading___Toc159986037 .anchor}**103-27.6002 GENERAL**

This subpart of the LMM has three purposes. To accomplish the three
purposes of this subpart, the discussion is divided into Supply Support
Planning, Performance Measurement, and Inventory Management.

The first purpose is to set forth the policies, principles, and
guidelines that should be applied when developing supply support
strategies. The policies, principles, and guidelines should lead to
responsive support strategies that optimize total costs over the life of
supported programs. The policies, principles, and guidelines should also
be acceptable to both customers and suppliers. 

The second purpose of this subpart is to describe performance measures
that can provide the feedback necessary to evaluate supply support in
order to assure that it is, in fact, responsive and cost-effective. 

The third purpose of this subpart is to describe inventory management
methods that produce high levels of customer service at reasonable cost
when investment in HHS owned inventory assets is appropriate and
selected as the preferred support strategy. 

A.  These three elements are intertwined threads of the overall HHS
    supply support fabric; the three can never actually be separated. 

B.  Decisions related to the management of an item while in inventory
    can be as important to customer service and cost effectiveness as
    the decision to stock an item in inventory in the first place. 

C.  All supply support planning and inventory management decisions are
    reflected, implicitly or explicitly, in system performance.

#### 103-27.6003-1 ORGANIZATION

> As discussed above, this subpart is divided into **Supply Support
> Planning, Performance Measurement**, and **Inventory Management**. The
> appreciation of the indivisibility of supply support planning and
> inventory management and their combined impact on system performance
> is not easily gained from reading the
> [FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1).
> The two functions are discussed in different parts of the
> [FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)
> and the relationship between them as related to customer service and
> cost performance standards is not discussed. **The criteria shown
> below have been reorganized from LMM Subchapter E- Supply and
> Procurement. Their order is changed and the language used to describe
> each method has been \"updated\" to provide the necessary guiding
> principles for HHS OPDIVs. Other criteria (particularly Inventory
> Management, Storage and Distribution, and Federal Product
> Descriptions) not discussed may be found in the**
> [FPMR](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1)
> **and that guidance should be followed accordingly. **

[]{#__RefHeading___Toc159986038 .anchor}**[SUBPART 103-27.61 \-- SUPPLY
SUPPORT PLANNING]{.underline}**\
\
**103-27.6101 SCOPE**

Customer requirements have traditionally been divided into those for
products and those for services. Each of these types of requirements is
ordinarily processed in a different manner. In HHS, the type of a
customer\'s requirement determines the process used to satisfy it, i.e.,
the method of supply. Today\'s highly competitive and constantly
changing business world requires that supply support processes be
\"flexible,\" and capable of rapidly adapting to changing technologies,
cost structures, economic circumstances and customer preferences. For
this reason, supply support channels and processes, old and new, must be
constantly evaluated on the basis of cost and quality of service.
Adjustment requires that a fresh look is taken at the criteria used for
selecting methods of supply. \
\
**103-27.6102 DETERMINING REQUIREMENTS**

While determining requirements and developing support strategies,
components should also limit the quantity and quality of supplies to be
acquired to the minimum necessary for effective and efficient
performance of assigned functions and responsibilities. 

Components shall develop requirements and supply support strategies. The
determination of requirements and methods of supply for supplies and
materials is governed by standards established for use, reuse and
replacement of items. 

When standards do not exist, they shall be developed and applied
locally. To achieve efficient, cost-effective program operations, it is
essential that required equipment and supplies are on hand when needed.
To this end, developing equipment and supply requirements and planning
the methods of supply should be accomplished at the same time that short
and long range program operations are planned. 

Requirements should not accumulate until the last two quarters of the
fiscal year. End of the year requirements for acquisition of material
from GSA and other sources of supply should conform to the funding
restrictions stated in the [FPMR
101-26.104](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-26&SECTION=104&YEAR=1999&TYPE=TEXT).

### 103-27.6103 SOURCING AND ACQUIRING PROPERTY

[FPMR
101-26.107](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-26&SECTION=107&YEAR=1999&TYPE=TEXT)
lists the priority order of sources for obtaining supplies.

### 103-27.6104 CRITERIA FOR DETERMINING METHOD OF SUPPLY 

Criteria have been established by GSA to govern the selection of methods
of supply. These criteria are applicable to all HHS components. They are
described in [FPMR
101-25.101-101.25.103](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfr101-25_99.html).
The methods of supply described include indefinite delivery contracts
(including definite quantity, requirements contracts, and indefinite
quantity contracts), consolidated purchase for direct delivery to users,
local purchase (including blanket purchase agreements and credit cards),
and storage and issue. 

This list of methods of supply should be considered neither exhaustive
nor restrictive. Other supply support alternatives that are less costly,
more responsive, or both should be actively sought and developed even if
they are only minor variations of more frequently and commonly used
methods. 

Seizing opportunities to be responsive to customer needs and to avoid
unnecessary inventory expense should be high among the goals of HHS
Agency Heads, Property Management Officers (PMO), Supply Management
Officers (SMO), and others involved in supply support planning. 

OPDIV strategic plans should explicitly reflect cost-effective supply
support strategies and processes to ensure successful mission
performance. This is accomplished by developing sound professional and
creative relationships with supply entities, governmental or commercial
businesses, for responsive delivery of bundled products and services.
**Some common methods of supply are discussed below.**

[]{#__RefHeading___Toc159986041 .anchor}**103-27.6105 INDEFINITE
DELIVERY CONTRACTS**\
Refer to [FPMR
101-25.101-4](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-25&SECTION=101-4&YEAR=1999&TYPE=TEXT).

Items suited for indefinite delivery contracts have the following
characteristics:

A.  The rate of consumption and the frequency of orders for items in a
    line of products is sufficient to allow the development of an
    indefinite delivery contract.

B.  An agency stockage and issuance of the items when all costs are
    considered, is uneconomical.

C.  There is no advantage or value added to forecasting definite
    requirements for delivery to specific use points at definite times.

D.  Industry distribution facilities are adequate to properly serve the
    use points involved.

Competitive marketplace conditions exist where the maintenance of an
indefinite delivery contract is in the best interest of the Government
because:

A.  The advantage to the Government is greater than would be secured by
    definite quantity procurements by individual offices or agencies
    (the determining consideration being one of overall economy to the
    Government, rather than one of direct comparison of unit prices of
    individual items obtainable through other methods of supply); or no
    known procurement economies would be effected but the requirements
    of offices or agencies would best be served by indefinite quantity
    requirements contracts.

B.  Supply support processes that feature point-of-sale data use and
    collection, \"real time\" inventory accounting, electronic ordering
    and shipment tracking, and paperless invoicing and payment use
    indefinite delivery acquisition instruments and supply support
    processes. An example of this technology is the electronic cash
    register now in use at many stores that scan a product and produce
    product data.

### 103-27.6106 CONSOLIDATED PURCHASE FOR DIRECT DELIVERY

Some items can be most advantageously supplied through consolidated
purchase for direct delivery to points of use. This typically happens
when requirements for delivery of equipment or supply items to specific
points of use are known with certainty or can be accurately forecast.
Refer also to [FPMR
101-25.101-3](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-25&SECTION=101-3&YEAR=1999&TYPE=TEXT).

### 103-27.6107 DIRECT DELIVERY PROGRAM 

Components needing to ship large quantities of supplies to widely
dispersed offices on a scheduled delivery basis, may establish a Direct
Delivery Program (DDP) if cost-effective.  See the Supply Support
planning and strategy determination discussion above.

The DDP supply support strategy results in the shipment of supplies
directly from the manufacturer to component field offices. \"From the
manufacturer\" distinguishes this procedure from normal ordering. Normal
ordering usually results in the delivery of material from the
component\'s supply management activity\'s warehouse. A direct delivery
program contractually schedules the delivery of
large-volume, high-rate-of-consumption items to specified customer
locations on a recurring basis. \
\
Heavily demanded office supplies may also qualify but only if not
available from GSA.

DDP is mandatory, meaning that forms and supplies obtainable through the
Program cannot be acquired through normal ordering as an alternative
source. Since direct deliveries are made according to contracts with
vendors, and since contracts cannot be frequently adjusted once made,
offices can change the shipment months or the items available under the
Program only by working with the contracting office that made the
contract award.

Component supply management activities shall determine which items lend
themselves to the DDP. They shall work with the ordering and contracting
offices to establish the shipping schedule. Decisions shall be
coordinated with other elements of the component operations and program
staffs.

[]{#__RefHeading___Toc159986044 .anchor}**103-27.6108 SUPPLY THROUGH
LOCAL PURCHASE**

Refer to [FPMR
101-25.101-5](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-25&SECTION=101-5&YEAR=1999&TYPE=TEXT).

[]{#__RefHeading___Toc159986045 .anchor}**103-27.6109 STORAGE AND
ISSUE**

Though not often a desirable supply support strategy, storage and issue
of items sometimes cannot be avoided. When this condition exists,
components shall maintain control of expendable supply inventories in a
manner that assures total costs are kept to the minimum consistent with
program needs. Refer also to [FPMR
101-25.101-2](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-25&SECTION=101-2&YEAR=1999&TYPE=TEXT).

[]{#__RefHeading___Toc159986046 .anchor}**[SUBPART 103-27.62 \-- SUPPLY
PERFORMANCE MEASUREMENT]{.underline}**\
\
**103-27.6200 SCOPE**

This subpart addresses measures of customers\' quality of service and
cost. Supply support requires proper controls to ensure that planned
sources, procedures and methods produce desired results consistently.
Performance measures shall be used by the component\'s supply management
activity to influence management of supply outputs and to address the
objectives of supply management in the eyes of the customer.

Effective supply activities measure various facets of customer service
and cost. Such measurement can dedect problems before they adversely
impact customer service levels. Problem detection encourages supply
elements to continuously improve their supply support and take advantage
of the opportunities presented by changing business practices and
technological advances.

The supply support system is evaluated on its ability to quickly locate
assets and fill customer requirements without maintaining expensive
inventories in warehouses that are costly to maintain and operate. 

A.  Performance measures are grouped according to their focus on service
    levels, cost, and data accuracy.  Performance measures are
    independent of the supply strategies they evaluate. 

B.  They can be used to compare supply support strategy alternatives.
    This allows supply managers to choose, or change to, the strategy
    which strikes the right balance of responsiveness and costliness,
    the most appropriate strategies for their organizations and items.

For more performance measures information, components shall refer to the
report \"Supply Performance Measures for the HHS\" developed by the
Office of Acquisition Management and Policy (OAMP), Assistant Secretary
for Administration and Management (ASAM) in coordination with the
OPDIVs; the Government Performance and Results Act of 1993; the National
Performance Review Report (NPR) and pertinent Executive Orders.

[]{#__RefHeading___Toc159986047 .anchor}**[SUBPART 101-27.63 \--
INVENTORY MANAGEMENT]{.underline}**\
\
**103-27.6300 SCOPE**

This is the third and final subpart of 103-27, Supply Support.  It
addresses inventory management. Having an on-hand inventory that
requires replenishment and management indicates that a storage and issue
supply support strategy has been adopted for some number of supply
items. The previous two subparts, Supply Support Planning and
Performance Measurement, have explained that the storage and issue
support strategy is neither the only nor necessarily the preferred
strategy. Customer service and cost effectiveness should determine the
specific strategy chosen in particular cases. Nonetheless, because of
the historical predominance of the storage and issue support strategy;
and because large inventories are on hand in component activities; and,
finally, because some items will continue to lend themselves to a
storage and issue strategy requiring the maintenance and management of
an inventory, this subpart discusses HHS inventory management policy.

Components must define, in writing, the system, organizational
structure, and procedures (i.e. the network) that permits offices and
activities, their customers, to order the supplies that they require to
perform their mission. 

The structure shall identify those activities in the network that are
authorized to establish and maintain inventories (other than those
inventories held at the user level for immediate needs).

The size of the inventory, in both dollar investment and numbers of line
items, must also be expressly authorized by the agency PMO/SMO. Further,
procedures for requesting changes to dollar investment and line item
authorizations must also be promulgated.

[]{#__RefHeading___Toc159986048 .anchor}**103-27.6301 CUSTOMER ORDERING
OF SUPPLIES**

The following provides the guidelines that customer level activities can
use in requesting supply stock. Components, in turn, must assess their
managerial needs in accomplishing and implementing similar procedures
for acquiring the stocks they need to satisfy customer requests.

The first step in ordering forms, publications, operating supplies, and
administrative office supplies, scientific supplies, etc. is to locate
them in HHS component catalogs, and through catalogs available from GSA,
DLA or other sources. 

The component catalog shall show what can be ordered and how it can be
ordered. Components not maintaining a catalog will supply the needs of
its customers by means of local procedures defined and coordinated by
the component\'s logistics management staff. OPDIVs are encouraged to
make the catalogs and other pertinent supply management information
available electronically. 

Catalogs will be indexed to make it easy to locate forms, publications,
administrative office supplies and items obtainable from various supply
sources.

Catalogs will contain appropriate GSA, DLA or other source items that
may or may not be stocked. Components may control customer access to
items at their discretion consistent with the need to provide high
quality customer service.

[]{#__RefHeading___Toc159986049 .anchor}**103-27.6302 FEDERAL AUTOMATED
SUPPLY ORDERING SYSTEMS**

**\
**HHS components are encouraged to use the GSA and DOD electronic supply
ordering systems. These systems allow customers to place orders via
their desktop computer. The program is most useful to customers with a
centralized ordering system where computer operators place orders for a
number of offices or activities. In addition, automated detailed billing
information can usually be downloaded to the component\'s information
management systems. These files can be used to obligate the funds
necessary to pay GSA bills and can aid in component internal control
procedures. More information about these systems can be found in the GSA
and DOD catalogs.

### 103-27.6303 NORMAL ORDERING PROCEDURES

Where the component\'s supply system is complex, more than one method of
supply may be in operation. In such cases, procedures for meeting
routine requests will be established.

A.  Routine ordering may take the form of manual paper or electronically
    transmitted requests. 

B.  Customers should use electronic transmission means to submit their
    orders when possible. For non-cataloged supplies customers should
    submit completed requisitions, with written justifications if
    required by the component, to the supply inventory management
    activity or other location as specified by the component.

C.  Requisitions may be submitted on various documents and/or forms
    including, HHS-393, Purchase/Service/Stock Requisition (used by most
    components as the requesting document to obtain items through the
    acquisition process) and GSA Form 1348-1, Single Line
    Item/Release/Receipt Document. 

Component supply systems shall provide customers with the status of
their orders. Status includes information on items that the inventory
management activity has backordered or is processing for shipment, and
items that are forwarded to GSA and other supply sources for supply
action. Status also provides other pertinent information such as whether
the stock is frozen for inventory or discontinued from stockage.

The component supply system that processes customer orders and produces
status for the customer should also produce warehouse pick lists. Pick
lists are forwarded to the component\'s warehouse. Customer orders are
picked from storage bins/racks etc, packaged and shipped.

A.  The customer shall verify the shipment by comparing it to his/her
    order and to the status received. 

B.  As required, customers shall follow-up on an order\'s status to
    ensure its complete satisfaction. 

In order to provide timely supply support, complete status, and required
documentation, supply systems should be automated. Orders should be
received electronically, stock availability should be assessed, shipment
documents should be produced, or purchase orders printed in a single
computer process that occurs within less than one calendar day.

### 103-27.6304 UNSCHEDULED AND EMERGENCY ORDERS 

Not all requests for supplies are routine. Emergency orders may be
submitted by customers. The component supply network must be capable of
reacting more quickly than normal to deliver supplies on an emergency
basis.

In emergency cases, customers should determine whether another office in
their locale can provide enough of the required material to sustain
supply until the next regularly scheduled order. 

A.  If the loan of supplies is not feasible, the local PMO/SMO should be
    consulted to determine if the need can be met locally by some other
    means. This action alerts the PMO/SMO to the emergency and informs
    him or her of its nature. 

B.  Higher levels of management may be asked to support satisfaction of
    the requirement by such actions as the emergency diversion of
    resources.

Exceptions to normal ordering procedures should be made only for special
reasons, and should be monitored closely. Exceptions add cost to the
supply system and divert resources from providing routine customer
services and supply support.

[]{#__RefHeading___Toc159986052 .anchor}**103-27.6305 AUTOMATED SUPPLY
MANAGEMENT SYSTEMS**

Automated supply management systems should be developed and used to
satisfy component supply support requirements. They are critical to the
provision of responsive customer service. They are increasingly
essential for cost-effective inventory management and distribution
operations. They provide components the opportunity to uniformly
implement supply management policy throughout their activities. The
variety of systems, fortunately, provides for tailored solutions to
almost any supply management challenge. 

A key principle in today\'s flexible and logistically complex business
environment is centralized planning and decentralized execution. The
prudent coordination and control of inventory management and supply
distribution systems is necessary to achieve desirable levels of
customer service and cost effectiveness. 

Components should constantly review, standardize, improve and plan for
compliance to Departmental electronic commerce/electronic data
interchange initiatives to their automated supply support systems. Refer
also to LMM 103-1.151. 

Components must assure that automated systems used by their agencies are
capable of providing a basic level of financial data for management
purposes.

### 103-27.6306 ACCOUNTABILITY REQUIREMENTS

####  103-27.6306-1 DESIGNATION OF THE SUPPLY ACCOUNTABILITY OFFICER 

> Supply assets shall be carried as accountable records. As accountable
> records they are subsidiary records to the general ledger accounts.
> Accountability for the inventories of all supplies and materials is
> part of the PMO/SMO\'s responsibilities. As such, the PMO/SMO shall
> designate in writing an employee as the supply accountable officer for
> the component\'s supply management activity.

Refer also to LMM 103-1.

#### 103-27.6306-2 ACCOUNTABILITY DATA INFORMATION STANDARDS (Data Elements)

> The following are the minimum accountability data information fields
> that should be used to track inventories and provide the necessary
> managerial information. 

  -----------------------------------------------------------------------
  **Stock number                 Supply item:**\
  Description                      - Receipts\
  Unit of Issue                     - Issues\
  Unit price                         - Adjustments\
  Quantity on hand             - Disposals\
  Value                                - Review point quantity \
  Storage location- EOQ \
  Items due in\
  Items due out

  -----------------------------------------------------------------------

> Components may collect any other data determined necessary to properly
> manage and account for supplies. In addition, components should refer
> to LMM 103-27.5203.

#### 103-27.6306-3 SUPPLY TRANSACTIONS AND FILES

> Receipts and miscellaneous transaction documents (receipts, issues,
> returns, excess documents, reports of survey, inventory adjustments,
> etc.) shall be assigned voucher numbers. Voucher numbers assigned to
> miscellaneous transactions will be taken from the appropriation to
> which the transactions apply.  
>
> Copies of receipts will be filed and retained in accordance with the
> component\'s records retention schedules. Copies of unposted receipts
> and miscellaneous transactions need not be retained.
>
> Supply issues will be assigned a transaction number which will be
> recorded in the automated supply system. These transactions will be
> numbered on a monthly basis using a numerical prefix designating the
> month in which the transaction occurred. Completed transactions will
> be filed in numerical sequence and retained in accordance with the
> component\'s records retention schedules.
>
> All receipts of and issues of controlled substances (Schedules 1-5)
> will be assigned a consecutive document number or annotated separately
> within an automated supply system for transactional purposes. The
> transaction control file will show the document control number, date
> of receipt by an authorized employee, organizational identifier or
> location of a program receiving issue assigned to the document. Refer
> also to the Controlled Substances Act Title II implementing the
> Comprehensive Drug Abuse Prevention and Control Act of 1970.

#### 103-27.6306-4 RECONCILIATION WITH FINANCIAL RECORDS 

> Perpetual inventory records of supplies and materials and the general
> ledger accounts shall be reconciled each month to ensure that the
> supply data correspond with the component\'s financial records.
> Discrepancies shall be reviewed to determine the source of any
> variance between the subsidiary ledger and the general ledger
> accounts. Refer also to the Department\'s Accounting Manual, Section
> 1-30 Reconciliation and Adjustment and to LMM 103-27.5405.

#### 103-27.6306-5 PROCESSING RECEIVING REPORTS AND INVOICES

> All receiving reports and invoices that do not coincide in quantity
> and price shall be brought to the attention of the responsible
> PMO/SMO, who will make a determination as to whether payment will be
> made or if further contact with the vendor is required.

#### 103-27.6306-6 FINANCIAL INVENTORY MANAGEMENT 

> HHS supply management officers must balance the desire for low levels
> of inventory investment against the desire for high levels of customer
> service for items supplied using a storage and issue supply support
> strategy. To achieve the desired balance managers need basic financial
> inventory data. This data provides the means for planning and
> measuring progress toward management goals. The data is used to:

A.  Determine the degree of compliance with and adequacy of program and
    policy guidance.

B.  Compare the best practices of supply operations of different
    agencies and external organizations by networking with other supply
    managers, reading trade publications and participating in
    professional associations.

C.  Consider trends in inventory status and activity.

D.  Compare available assets with authorized stockage levels and
    acquisition objectives.

E.  Compile aggregate demand and issue data.

F.  Determine inactive, obsolete, excess and surplus items.

G.  Determine other areas requiring control by HHS managers at all
    levels.

> The prime objective of inventory management is to align the comparison
> of requirements and assets with supply control decisions. Financial
> inventory management permits, on a common denominator dollar basis, a
> time-phased simulation of procurement and issue actions causing
> changes in supply position. Such a simulation provides the basis for
> management through financial control of procurement, requisitioning,
> budgeting, and financial status reporting.  This is done by converting
> the requirement for asset comparison to the common denominator of
> dollars. A means is established to provide for dollar value inventory
> goals and measurement of progress toward those goals. The data is
> useful in justifying supply budgets. Action is initiated based on
> individual item requirements and assets. Actions may include:

A.  Establishment and testing of the reorder level

B.  Determination of order quantity requirements

C.  Derivation of procurement directives and contract data

D.  Return of material

E.  Schedules of contract delivery

F.  Non-reimbursable transfer determinations

G.  Retention and disposal

> Requirement elements/levels (backorders, safety level, operating
> level, lead time level, etc.) on the item are used to calculate the
> reorder level and to determine the immediate shortage quantity and
> other supply imbalances. To establish the supply status of an item,
> the requirement/asset comparison is made in terms of the capability of
> meeting projected demands on the supply system. Requirement
> elements/levels are arrayed in priority sequence for stock reservation
> or issue. Assets are applied in order against these elements/levels to
> arrive at the supply status. When the dollar value of all
> elements/levels for all items are summed or aggregated, financial
> information or data is available for management purposes.  
>
> Components may evaluate agency supply management operations on the
> basis of the performance measures previously discussed as well the
> information developed during financial inventory management analyses. 

[]{#__RefHeading___Toc159986054 .anchor}**103-27.6306-7 PHYSICAL
INVENTORY**

> **\
> **In order to verify the accuracy of supply records, a physical
> inventory shall be taken at regular intervals. This procedure is
> necessary as a check on the effectiveness of the supply inventory
> accounting procedures to provide adequate and accurate information on
> all significant changes in the investment of supply assets. The
> frequency of physical inventories, which may be taken on a cyclical
> basis over a period of time, should be determined on the basis of such
> factors as nature and value of the supplies; physical security and
> control procedures relating to the receipt, issuance, turnover, and
> results of previous inventories.\
> \
> **103-27.6306-8 BOARD OF SURVEY**
>
> Refer to LMM 103-27.57.

[]{#__RefHeading___Toc159986055 .anchor}**103-27.6308 MAXIMIZING USE OF
INVENTORIES**

Components shall utilize effective intra- and inter-component matching
of material assets and requirements before material becomes excess, to
avoid unnecessary procurements and inventory investments. Supply
management officers must remain alert for signs of potential long supply
such as declining demand, new technologies, and inventory record
imbalances. They must take timely action to reduce assets to the
authorized acquisition objective. Long supply can be redistributed to
other organizations having near term requirements. Refer also to [FPMR
101-27.3](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfr101-27_99.html).\
\
**103-27.6309 WAREHOUSING PROCESSES**

The following sections describe responsibilities and major action areas
associated with warehousing operations. Efficient and effective
warehousing processes are fundamental to the sound practice of inventory
management. Consult the Department\'s LogNet to view the Joint Services
Manual (JSM) for Storage and Materials Handling. This document was
developed by the joint DOD services and provides excellent storage and
materials handling procedures.

#### 103-27.6309-1 RESPONSIBILITIES 

> Components are responsible for exercising overall supervision and
> control over the warehousing operations at their facilities.  They
> shall:

A.  Ensure that receiving, storage, inventorying, issuing, and shipping
    operations are completed efficiently.

B.  Establish necessary controls by ensuring that personnel who receive
    and issue items on behalf of the component are not  the same
    personnel who certify invoices for payment or who certify inventory
    counts.

C.  See that any discrepancies discovered through inventorying are
    investigated and properly reported.

D.  Ensure that local requisitioning and issuing procedures are
    developed and implemented.

E.  Provide adequate safeguards to ensure against loss, damage, or theft
    of component property held at their facilities.

#### 103-27.6309-2 RECEIVING OPERATIONS

Components shall:

A.  Promptly and accurately process receipts, including inventory
    updating, maintenance of due-in information, prompt and accurate
    checking and recording of shipments received and efficient handling
    and storage. 

B.  Ensure all incoming items are accompanied by receiving documents
    such as Order-Invoice-Voucher, Material Inspection and Shipping
    Report, Material Safety Data Sheets, Vendor packing slip, etc. If
    there are no receiving documents with the shipment, the person who
    receives the items shall prepare a report to the appropriate
    supervisory personnel, fully explaining the circumstances.

C.  Verify that receiving documents are certified and signed by
    personnel authorized in writing to accept goods on behalf of
    component. 

D.  Plan for supply arrival dates, type and quantity of supplies and
    whether discounts can be credited.

E.  Provide for the accurate checking of shipments for efficient storage
    and related record control activities. Each shipment, upon arrival,
    shall be physically checked against the related freight bill or
    other delivery document prior to signing of receipt

#### 103-27.6309-3 AUTHORITY TO SIGN RECEIVING DOCUMENTS 

> Components shall expressly designate in writing the personnel
> authorized to sign receiving documents and thereby accept shipments.

#### 103-27.6309-4 NOTIFICATION TO AUTHORIZED RECEIVING PERSONNEL

> Personnel in charge at the dock must promptly notify authorized
> receiving personnel when items are received.

#### 103-27.6309-5 SUSPENSE FILES AND RECEIVING ACTIVITY PLANNING 

> Receiving personnel are responsible for maintaining a tickler-type
> suspense file to organize documentation on all shipments.  File
> contents shall be reviewed for planning purposes to facilitate
> accurate, orderly and expeditious processing of receipts. Copies of
> purchase orders containing prompt payment discount provisions should
> be flagged. When feasible, arrangements for handling and storing a
> large-volume shipment shall be made prior to the shipment\'s actual
> arrival.

####  103-27.6309-6 CHECKING SHIPMENTS AND DOCUMENTATION

> Orders shall be verified for accuracy as soon after delivery as
> possible to avoid delay in reporting discrepancies. The accuracy of
> all shipments should be checked by comparing the receipts with the
> delivery information provided on the packing list. 

#### 103-27.6309-7 DISPOSAL

Refer to LMM Subchapter H - Utilization and Disposal.

#    

# HHS Logistics Management Manual (LMM) Subchapter G

# PART 103-34 MOTOR VEHICLE AND WATERCRAFT MANAGEMENT

### 103-34.0 General  

### 103-34.000-50 SCOPE

This part supplements Parts FMR 102-34 and FPMR 101-39 concerning the
management and control of motor vehicles and watercraft. Material in
this part should be read in conjunction with the FPMR. This part does
not repeat GSA material.

#### 103-34.001-51 POLICY

Motor vehicles and watercraft shall be acquired, maintained and utilized
in support of HHS programs in the minimum quantity required and in the
most practical and economical manner consistent with program
requirements, safety considerations, fuel economy, and applicable laws
and regulations.

Appropriations will not be expended to lease or purchase passenger motor
vehicles except as authorized by law or to reimburse the General
Services Administration for passenger vehicles acquired from the Fleet
Management Division.

Each of the HHS OPDIVs shall designate a fleet manager to be responsible
for motor equipment operations and to serve as a single point of contact
for issues, information and reports on motor equipment.

Each OPDIV will maintain vehicle use and mileage records including
home-to-work usage. Records will be maintained for a period of three
years. (See 103-34.301.56)

All requests to the Federal Supply Service, GSA, along with requests for
waivers from GSA regulations, and all certifications to GSA shall be
reviewed by the OPDIV Fleet Manager before being sent to GSA through the
Department Fleet Manager.

No employee shall use a government vehicle for transportation between
their home and place of employment without the expressed written approve
of the Secretary of Health and Human Services.

All Government-owned and leased motor vehicles shall be operated and
used by HHS officers, employees and contractors in a manner that does
not bring discredit or public ridicule to the Department, or the
appearance of impropriety.

## SUBPART 103-34.1 - MOTOR VEHICLE ACQUISITIONS

#### 103-34.100-50 AUTHORITY FOR THE ACQUISITION OF MOTOR VEHICLES 

> It is the policy of HHS to use the GSA Fleet Management Center (FMC)
> as its first source of supply for all motor vehicles.
>
> In accordance with 31 U.S.C. 1343, authority to acquire passenger
> motor vehicles (lease or purchase) is contained in the annual
> appropriation act for the OPDIVs of HHS. Unless Congress specifically
> authorizes purchases or leases in a OPDIV\'s appropriation act, the
> OPDIV is not authorized purchase passenger vehicles and may only lease
> passenger vehicles from the FMC, GSA. Currently within HHS, only OS,
> FDA, IHS and NIH have authority to obtain vehicles from sources other
> than the FMC.

#### 103-34.100-51 JUSTIFICATIONS AND APPROVAL TO ACQUIRE MOTOR VEHICLES 

> Each October OPDIVs will survey their programs to determine their
> needs for vehicles for the next year. Subdivisions of OPDIVs wishing
> to acquire additional vehicles for their fleet are authorized to
> request up to five vehicles annually for their local GSA FMC.
>
> Requests for ALL vehicles shall be processed through the
> OPDIV/STAFFDIVs Fleet Manager.
>
> When the local GSA Fleet Management Center is unable to fill a request
> for an additional vehicle, requests will be transmitted to the OPDIV
> Fleet Manager for transmission through the Department Fleet Manager to
> GSA Fleet headquarters. OPDIVs, that have legal authority, shall
> indicate if they wish to commercially lease or purchase if GSA is
> unable to furnish the requested vehicles(s). Commercial leases or
> purchases shall be made using GSA leasing or purchasing programs.

Requests to commercially lease vehicles for periods longer than 59 days
will only be approved on the basis that the GSA FMC is unable to provide
the vehicle. OPDIVs wishing to commercially lease a vehicle will submit
a written request including a description of the vehicle and an
explanation of the need for the vehicle. The description of the vehicle
will not be brand name or model specific unless no other brand or model
will satisfy the OPDIV\'s need.

Requests for permission to purchase vehicles will include a
justification for why ownership is the least costly method for the OPDIV
to obtain, operate, and dispose of the vehicle. This justification
should include a comparison of costs associated with the following three
methods of acquiring vehicles: purchases (including purchase,
maintenance, and disposal costs), commercials lease, and GSA FMC lease.

> Requests from contractors for GSA FMC vehicles must ensure that the
> requirements in the Federal Acquisition Regulations (FAR) 51.202 are
> met and include the concurrence of their contracting officers and the
> OPDIV Fleet Manager.

#### 103-34.101-52 ACQUISITION OF FUEL EFFICIENT MOTOR VEHICLES 

> In accordance with FMR 102-34.45 and Executive Orders 11912 and 12375,
> HHS\
> shall acquire and operate only fuel efficient passenger vehicles
> (Class III midsize or smaller) and light trucks unless a larger
> vehicle is absolutely essential to carrying out the OPDIV\'s mission.
> Except for the offices listed in (b), administrative offices will use
> compact sedans (Class II) or midsize alternative fueled vehicles
> (Class III).
>
> For administrative offices, with appropriate justification, the
> following size passenger vehicles may be approved:

A.  Immediate Office of the Secretary - two large sedans (Class IV).

B.  HHS Southwest Complex motor pool - midsize (Class III).

C.  OPDIV headquarters motor pools - midsize (Class III).

D.  Regional Offices - compact (Class II) or alternative fueled midsize
    (Class III).

E.  District Offices, Offices of Center Directors, Area Offices, etc.
    shall use compact (Class II) or alternative fueled midsize
    (Class III) passenger vehicles.

In accordance with [Executive Order
13149](http://ceq.eh.doe.gov/nepa/regs/eos/eo13149.html) and the [Energy
Policy Act of 1992](http://www.epa.gov/radiation/yucca/enpa92.htm) (42
USC 6201 et. seq.), not less than 75 percent of the light duty vehicles
acquired by any HHS OPDIV/STAFFDIV (e.g., includes owned, GSA leased, or
commercially leased) shall and must be configured in a manner that
enables the use of alternative fuel.  If an OPDIV/STAFFDIV fails to meet
the latter requirement during a specific fiscal year, the OPDIV/STAFFDIV
must address the conditions that lead to the failure and offer a
corrective action plan in its annual motor vehicle fleet report
(AMVFR).  The report shall detail how the alternative fuel vehicle
acquisition program will be planned, organized, focused, controlled and
reported so as to meet the federally mandated targets in subsequent
years.  

#### 103-34.101-53 USE OF MOTOR VEHICLE MANAGEMENT INFORMATION SYSTEM (MVMIS) 

> Each HHS OPDIV/STAFFDIV is required to use the HHS Motor Vehicle
> Management Information System (MVMIS) as a means to *[plan, organize,
> direct, control and report the status of the OPDIV/STAFFDIV Fleet
> Programs.]{.underline}*
>
> Each HHS OPDIV/STAFFDIV is required to use the HHS Motor Vehicle
> Management Information System (MVMIS) *as the formal system of record
> for all OPDIV/STAFFDIV owned, GSA Leased and/or Commercially Leased
> (or Rented) fleet assets.*
>
> Each HHS OPDIV/STAFFDIV is required to use the HHS Motor Vehicle
> Management Information System (MVMIS) as the officially sanctioned
> means by which compliance data for each vehicle is developed and
> entered as part of the official record and archived.  Further, the
> latter data shall be exported (moved), as required during each fiscal
> year, from the MVMIS resource to the GSA [Federal Automotive
> Statistical Tool (F.A.S.T.)](http://fastweb.inel.gov/)  in accordance
> with [EO13149](http://ceq.eh.doe.gov/nepa/regs/eos/eo13149.html) and
> [EPAct of 1992](http://www.epa.gov/radiation/yucca/enpa92.htm). This
> action shall be used to create the official Department "performance"
> standard and will be delivered to the Executive Office of the
> President via the Office of Management and Budget (OMB).
>
> Each HHS OPDIV/STAFFDIV shall use the HHS Motor Vehicle Management
> Information System (MVMIS) as the officially sanctioned means by which
> ***[planned]{.underline}, [projected]{.underline} and
> [forecast]{.underline}*** budget estimates are determined and
> formatted. The later is the official Department business process,
> leading to the "input", "process" and "output" of aggregate
> OPDIV/STAFFDIV dollars anticipated for fleet operations, (including
> planning and execution of Executive Orders and/or Federal
> Regulations).  The MVMIS resource shall be used to consolidate, i.e., 
> "rollup", the HHS aggregate planned, projected and forecast data as
> outlined in the Office of Management and Budget (OMB) A-11 annual data
> call. The latter data call typically is submitted from the Department
> to OMB via the Department of Energy (DOE)/General Services
> Administration's Federal Automotive Statistical Tool (F.A.S.T.) in mid
> August of each fiscal
> year[^\[1\]^](http://knownet.hhs.gov/log/LMM/103-34.htm#_ftn1%23_ftn1).
>
> Fiscal Year Fuel/Mileage and Maintenance Process must be carried out
> all year. See MVMIS reports tab for process requirements
>
> Each HHS OPDIV/STAFFDIV shall use the Environmental Compliance
> Dashboard as a method for validating compliance with
> [EO13149](http://ceq.eh.doe.gov/nepa/regs/eos/eo13149.html) and the
> Environmental Policy Act of 2005.
>
> [^\[1\]^](http://knownet.hhs.gov/log/LMM/103-34.htm#_ftnref1%23_ftnref1)
> The HHS MVMIS system is used to consolidate Department data. The data
> is subsequently "pushed" to the F.A.S.T. resource and reported to OMB.

#### 103-34.101-55 SELECTION OF TYPE OF MOTOR VEHICLES

All motor vehicles acquired for use shall be limited to the minimum body
size, engine size, and optional equipment necessary to fulfill program
needs.

With the exception of Alternate Fuel Vehicles (AFV), the least expensive
unit overall shall should be acquired considering acquisition costs,
operating costs and disposal costs.

Dual-purpose motor vehicles capable of hauling both personnel and light
cargo shall be used whenever appropriate to avoid the need for two motor
vehicles when one can serve both purposes.

In accordance with Executive Order 13013 and the Energy Policy Act of
1992 (42 USC 6201 et. seq.) at least 75 percent of the light vehicles
acquired must be alternative fueled. If an OPDIV fails to meet this
requirement during a specific year, it must address, in its annual
alternative fuel vehicle report, how it will reach the required
percentage in subsequent years.

## SUBPART 103-34.2 - REGISTRATION, IDENTIFICATION, AND EXEMPTIONS 

#### 103-34.201-50 REGISTRATION AND INSPECTION 

> OGAM/LPS have a Memorandum of Understanding with UNICOR for the
> acquisition of HHS license plates.  For HHS-owned vehicles it is
> normal practice to tag those vehicles with a special HHS license
> plate.  There are exceptions to this policy where different tagging
> procedures are appropriate.  The OPDIV Fleet Manager is the
> authorizing official for issuance and control of tags. 
>
> [Add Sample License Plate Here]{.mark}
>
> Requests for HHS tags (license plates) will be submitted by the OPDIV
> Fleet Manager to the Division of Logistics Services of the National
> Institutes of Health.
>
> Unissued tags shall be stored in a locked drawer, cabinet or storage
> area with restricted access to prevent possible theft or misuse.  For
> accountability purposes, an inventory log shall be maintained for all
> tags in your possession.  To report lost or stolen plates, notify you
> OPDIV/STAFFDIV Fleet Manager, the local security office (or
> equivalent) and the local police department. See FMR 102-34.150.
>
> Motor vehicles used in foreign countries are to be registered and
> carry tags in accordance with the existing motor vehicle regulations
> of the country concerned. The person responsible for a motor vehicle
> in a foreign country shall make inquiry at the United States Embassy,
> Legation, or Consulate concerning the regulations that apply to the
> registration, licensing, and operation of motor vehicles and shall
> comply accordingly.
>
> Note: Vehicles registered in D.C. may have special requirements.
> Please see FMR 102-34.170

### 103-34.203 AGENCY IDENTIFICATION

Each OPDIV that owns or commercially leases motor vehicles shall
display, in accordance with the requirements of FMR 102-34.110,
sufficient identification to identify them as government vehicles.

#### 103-34.204-50 EXEMPTIONS 

> Certifications for exemptions related to the placement of Federal
> markings other than those listed in FMR 102-34.195 shall be submitted
> by the OPDIV Fleet Manager directly to GSA in accordance with the
> criteria listed at FMR 102-34.185. Copies of the certifications will
> be sent to the Department Fleet Manager.
>
> By October 30 of each year, the OPDIV Fleet Manager shall provide a
> list of all unmarked vehicles in their fleet to the Department Fleet
> Manager indicating which unmarked vehicles are exempt by regulation
> FMR 102-34.195(K) and which are certified to GSA as justified as law
> enforcement or as required for the safety of the occupant. An
> alternate notification method is via the HHS MVMIS.

## SUBPART 103-34.3 AUTHORIZED USE OF GOVERNMENT MOTOR VEHICLES 

#### 103-34.301-50 GENERAL POLICY 

> Vehicles assigned to or purchased or leased by HHS are intended for
> official business as authorized by 102-34.220. HHS motor vehicles are
> not provided for the convenience of HHS employees. Government vehicles
> should only be used when it is: (i) the least costly method of
> transportation available (considering the value of employee time and
> actual transportation costs) or (2) when no other practical method of
> transportation is available considering the mission to be performed;
> the location; and any equipment needed to be transported to support
> the mission.
>
> Common carriers (air, rail, and bus) shall be used in lieu of
> transportation by motor vehicle, unless the use of the motor vehicle
> is clearly more economical and practicable, and in the government\'s
> interest, such as:

A.  The employee\'s itinerary requires a number of stops and the
    scheduled arrival and departure of public transportation does not
    coincide with the timetable of the itinerary, resulting in undue
    loss of government time;

B.  It is necessary to transport a considerable amount of equipment with
    the employee;

C.  The nature of the employee\'s work necessitates the use of
    transportation at a time of day or week when it would be highly
    impracticable to use public transportation; or

D.  Such officers and employees are continually engaged in law
    enforcement work affecting public health and welfare, and the use of
    a common carrier is impracticable and not in the best interest of
    the government.

Each employee of HHS is responsible for providing his or her own
transportation to the work place. Transporting an employee between home
and work is not an official use of a government vehicle except as
provided in 102-34.225.

Any officer or employee who willfully uses or authorizes the use of a
vehicle for other than official business is subject to a suspension of
at least one month or, up to and including, removal by the head of the
OPDIV under 31 U.S.C. 1349.

Contractor use of Government owned or leased fleet resources is
applicable when the function is "mission" specific. Further, negotiated
contracts shall include provisions as outlined in FMR 102-34.230(c) and
FAR Part 45, Government Property.

#### 103-34.301-51 TRANSPORTING PERSONNEL OF OTHER FEDERAL AGENCIES

> Transportation of personnel from other Federal agencies in a HHS
> vehicle is authorized when it is in the interest of the government and
> does not interfere with accomplishment of the HHS employee\'s primary
> business.

#### 103-34.301-52 TRANSPORTING OTHER THAN A FEDERAL EMPLOYEE 

> The OPDIV Fleet Manager or designee may authorize the transportation
> of personnel other than Federal employees when necessary in the
> performance of official business or in the best interest of the
> Department. An HHS employee may also transport a person or persons
> other than a Federal employee in a government vehicle when the use of
> the vehicle is a means of alleviating pain or injury; when preventing
> loss of life or serious damage to property; and when the person is the
> Secretary's spouse and is being to transported to join the Secretary
> at a function where the Secretary is an official representative of the
> government and the spouse, according to diplomatic or social custom,
> is expected to attend with the Secretary.

#### 103-34.301-53 TRANSPORTATION OF DEPENDENTS 

> An HHS employee, who a government vehicle for specific duties (such as
> a field investigator or traveling auditor) and whose duties result in
> extended detail to another region or location or frequent change in
> duty post, may transport dependents at the time the detail or change
> of duty post is accomplished transporting of the dependent does not
> cause additional cost for the government or cause the employee to
> deviate from his/her official itinerary. However, prior approval must
> be obtained from the OPDIV Fleet Manager or their designee and
> annotated on the travel order.

#### 103-34.301-54 EXCLUSIVE ASSIGNMENTS OF MOTOR VEHICLES 

> No government motor vehicle shall be assigned for the exclusive use of
> any officer or employee, except for the Secretary.

#### 103-34.301-55 USE OF GOVERNMENT VEHICLES BETWEEN HOME AND PUBLIC CARRIER TERMINALS AND BETWEEN PUBLIC CARRIER TERMINALS AND TEMPORARY DOMICILE OR TEMPORARY DUTY STATION 

> Government-owned or leased motor vehicles may be used by officers and
> employees in travel status for transportation between home and rail,
> air, bus, or boat terminals between the terminal and place of
> temporary employment or temporary domicile if no less costly method of
> transportation is available. It is prohibited for an employee to park
> a Government owned/leased vehicle at a public parking facility for an
> extended period of time (more than 1 week) without advance approval
> from the HHS Fleet Manager. In general, it is most advantageous for
> the Government to reimburse the traveler for use of their own POV and
> parking.
>
> While on a temporary duty assignment (TDY), Government-owned or leased
> motor vehicles may be used for transportation between the temporary
> domicile and place of employment, to obtain meals, or to obtain
> services required for the well being of the employee, e.g., laundry,
> dry cleaning, drug store, etc.

#### 103-34.301-56 USE OF GOVERNMENT VEHICLES BETWEEN RESIDENCE AND PLACE OF EMPLOYMENT

> Restrictions on use of government vehicles between residence and place
> of employment Government policy on the use of government-owned or
> -leased vehicles is established by P.L. 99-550 and FMR 102-5. The use
> of Government vehicles between residence and place of employment shall
> be restricted to the Secretary and employees engaged in field work as
> defined by functional descriptions outlined in Public Law 99-550, and
> other officials or employees on an exception basis when a clear and
> present danger, emergency or a compelling operational consideration
> exists. This restriction does not apply to employees on official
> travel who have been authorized to take a vehicle home on their travel
> order. Employees are expected to provide their own transportation
> between residence and place of employment including for overtime.
> Inconvenience, awkwardness with a car pool arrangement, or
> difficulties with a personal vehicle do not justify furnishing
> government transportation.

A.  Only the Secretary may approve the use of government vehicles
    between residence and place of employment. No employee shall use a
    government vehicle for transportation between their home and place
    of employment without the expressed written approval of the
    Secretary of Health and Human Services. The approval process for the
    use of vehicles between residence and place of employment will be
    different based on the reason for the request.

B.  Employees engaged in fieldwork will be approved on the basis of
    positions ONLY. Each office requesting approval of vehicle use
    between residence and place of employment for employees engaged in
    field work shall submit justification, in memorandum form, through
    the OPDIV/STAFFDIV Fleet Manager to the Assistant Secretary of
    Acquisition and Management (ASAM), Office of Acquisition and
    Management Policy (OAMP), Division of Logistics and Policy (DLP);
    Attention: HHS Fleet Manager. This justification shall include the
    position title and series, number of employees affected, name and
    title of person requesting approval, dates, location of official
    duty station, frequency and duration of the field work, and
    justification for the use of the vehicles.

C.  After the initial justification for each position has been approved,
    the requesting office should reassess and resubmit justification no
    later than April 30^th^ on a biannual basis every even year (e.g.
    2004, 2006, 2008).

D.  If a position is approved for the use of a vehicle between residence
    and place of employment based on fieldwork, the approval is only in
    effect when an employee is actually engaged in fieldwork and should
    not be interpreted as authorization to use the vehicle at anytime
    other than when conducting fieldwork.

E.  Requests for approval based on a clear and present danger, an
    emergency or a compelling operational consideration shall be
    submitted by the requesting office through its OPDIV/STAFFDIV Fleet
    Manager to the ASAM, OGAM, DLP; Attention: HHS Fleet Manager. The
    justification shall be submitted in memorandum form. The same
    information as required for fieldwork shall be submitted.

F.  Approvals shall initially be for a period not to exceed 15 calendar
    days. Extensions of up to 90 calendar days may be requested as long
    as the underlying circumstances continue to exist.

G.  Requests for contingent approvals are permitted. They shall include,
    in addition to the information identified in C above, a statement on
    what administrative controls have been established to assure that
    any contingent approval is not abused. Requests should be submitted
    to the HHS Fleet Manager as described in C above. If the contingent
    approval is exercised, the requesting office will immediately notify
    the HHS Fleet Manager and provide him/her with the following
    additional information: name of the individual using the vehicle,
    the reason that justified the use of the contingent approval and the
    starting date and ending date (or anticipated ending date) of the
    authorization.

H.  Personnel to whom home-to-work authority has been granted are
    permitted to extend the normal allotted commute time between the
    work place and their home while pursuing personal business. This is
    permitted provided that the cost and time associated does not exceed
    the ordinary day-to-day commute outlays. This guidance is in concert
    with recommendations made by the HHS Office of General Counsel on
    this provision.

I.  Each employee using a vehicle between his or her residence and place
    of employment will maintain a record identifying the vehicle used
    (license plate number), destination, starting and ending mileage and
    purpose of trip. This record must be forwarded to the office of the
    official who initially requested the approval upon completing the
    approved home-to-work use of the vehicle but no less frequently than
    quarterly. The record(s) shall be maintained together with the
    request for and approval of the use of a government vehicle between
    residence and place of employment. These records shall be readily
    available for audit until disposed of according to established
    record management schedule.

#### 103-34.301-57 USE OF GOVERNMENT VEHICLES BETWEEN RESIDENCE AND PLACE OF EMPLOYMENT WHILE ON TEMPORARY DUTY 

> When an employee on temporary duty (with travel orders) is authorized
> to travel by government motor vehicle, and in the interest of the
> government, is scheduled to depart before the beginning of regular
> working hours, or if there will be a significant savings in time, a
> government motor vehicle may be issued at the close of the preceding
> working day and taken home. Similarly, when an employee is scheduled
> to return after the close of working hours, the motor vehicle may be
> taken home and returned the next regular working day, unless the OPDIV
> motor pool has provisions for after hour returns.

#### 103-34.301-58 USE OF GOVERNMENT-OWNED MOTOR VEHICLES BY COST REIMBURSEMENT TYPE CONTRACTORS

> Cost reimbursement type contractors and Native American organizations
> that have \"Compact Agreements\" may be authorized to use
> government-owned vehicles when such authorizations are incorporated in
> the contract in order to meet performance needs of the contract.
> Vehicles provided shall be used for official purposes only in the
> execution of the contract. Note: Other laws notwithstanding, these
> transactions may require further dispensation.
>
> Vehicles provided may be acquired from excess of other Federal
> agencies. Such vehicles are then controlled by the contract as
> contractor inventories of government property.
>
> Cost reimbursement type contractors may also be authorized to use
> vehicles from GSA Fleet Management Centers in lieu of obtaining loaned
> vehicles from the agency involved. The contracting officer, in
> consultation with the OPDIV/STAFFDIV Fleet Manager, shall provide
> written approval.
>
> Contractor use of motor vehicles owned or leased by the Federal
> Government shall comply with requests of FMR 102-34.230.

#### 103-34.301-59 UNAUTHORIZED USE AND MISUSE 

> In accordance with FMR 102-34.240, employees who willfully use or
> authorize the use of a motor vehicle for other than official purposes
> is subject to established reprimands.
>
> Incidents of alleged unauthorized vehicle use are to be reported to
> the OPDIV Fleet Manager for investigation and, where appropriate,
> corrective actions and recommendations for disciplinary actions.
>
> When incidents of alleged unauthorized vehicle use or misuse of a
> vehicle are reported by GSA, the OPDIV Fleet Manager will respond
> directly to GSA according to their instructions. See FMR 102-34.235.
>
> OPDIV Fleet Managers will provide the HHS Fleet Manager with a copy of
> all vehicle misuse complaints and corrective action plans.
>
> Also see FMR 103-31.301-50D

#### 103-34.301-60 INSTRUCTIONS TO HHS MOTOR VEHICLE OPERATORS

####  

> All Government-owned/leased motor vehicles shall be operated and used
> by HHS officers, employees and contractors in a manner that does not
> bring discredit or public ridicule to the HHS, or the appearance of
> impropriety.
>
> Each component shall establish a system to inform HHS employees, who
> use government vehicles, concerning:

A.  The statutory requirement that government motor vehicles shall be
    used only for official purposes.

B.  Personal responsibility for safe driving and operation of government
    motor vehicles, and for compliance with Federal, State, and local
    laws and regulations including any penalties incurred for violations
    thereof, and all accident reporting requirements (see FMR 102-34.250
    and 255).

C.  The penalties for unauthorized use of government motor vehicles.

D.  The prohibition against picking up strangers or hitchhikers and
    limitations on the transportation of non-official passengers.

E.  The proper care, control and use of government credit cards.

F.  Mandatory use of seat belts by each occupant operating or riding in
    a government motor vehicle or POV while on "official business."
    (Executive Order 13043; FMR 102-34.260).

G.  Any other duties and responsibilities assigned to motor vehicle
    operators with regard to the use, care, operation, and maintenance
    of government motor vehicles.

H.  Their potential income tax liability when they use a government
    motor vehicle for transportation between home and place of
    employment.

I.  The prohibition against smoking in government vehicles (see [GSA FMR
    Bulletin
    B-3](http://www.gsa.gov/Portal/gsa/ep/contentView.do?P=VXX&contentType=GSA_DOCUMENT&contentId=20615)).

J.  Protection for HHS employees under the Torts Claim Act (28 USC 2671)
    when acting within the scope of their employment.

> The [General Services Administration 's FMR Bulletin
> B-2](http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2002_register&docid=02-4880-filed.pdf)
> discourages the use of hand held wireless phones while operating
> Government Vehicles.  A number of states and local jurisdictions have
> made it illegal to use hand held wireless phones while operating a
> motor vehicle.   To enhance motor vehicle safety, anyone operating a
> Government vehicle is prohibited to use a hand-held wireless phone or
> other wireless devices while the vehicle is moving.  If the operator
> of a Government vehicle is ticketed or involved in an accident due to
> the use of a hand-held phone or other device, the operator will be
> fully responsible for any legal action that may result.
>
> A placard should be placed in each Government-owned or leased vehicle
> with the following: 
>
> "Safe Driving is Your 1^st^ Priority
>
> Use of a hand-held wireless phone is NOT PERMITTED while this vehicle
> is moving. If you are ticketed or involved in an accident due to the
> use of a hand-held phone or other device you will be fully responsible
> for any legal action that may result."

## SUBPART 103-34.4 GUIDANCE FOR MOTOR VEHICLE REPLACEMENT STANDARDS

See FMR 102-34.265 thru 280

#### 103-34.402-51 PROMPT DISPOSAL OF REPLACED MOTOR VEHICLES 

> A replaced motor vehicle shall be removed from service and disposed of
> prior to or as soon as practicable after delivery of the replacement
> motor vehicle to avoid concurrent operation of both motor vehicles.
>
> Because of disposal problems, there may be occasions where quick
> disposal of the old motor vehicle may not be feasible or advantageous
> to the government, e.g., it may be determined that there is an
> insufficient number for economical sale, or that sale would bring
> substantially better prices at a later date because of seasonal
> effects on sale prices. Under such circumstances, temporary retention
> of the replaced motor vehicle may be justified. However, such
> retention may not be used as justification for concurrent operation of
> the new and replaced motor vehicles. The replaced motor vehicle must
> be placed in an inactive status. Vehicles should be disposed of
> through normal GSA procedures. See FMR 102-34.310 thru 320.

#### 103-34.402-52 UTILIZATION OF MOTOR VEHICLES

> It is HHS policy to keep the number of motor vehicles to the minimum
> needed to satisfy programmatic requirements.
>
> To attain this goal, controls and practices shall be established which
> will achieve the most practical and economical utilization of motor
> vehicles. These controls and practices apply to all HHS owned and
> leased, and GSA FMC motor vehicles. Periodically, local fleet managers
> should compare the costs of using FMC passenger vehicles against the
> cost of reimbursing employees for using their personal vehicles.
>
> In making this determination the local fleet manager should also take
> into consideration other factors, such as local road conditions would
> cause excessive wear and tear on the POV, the nature of the mission to
> be performed would be enhanced by the use of an \"official\" vehicle,
> and the nature of the mission to be performed causes the vehicle to
> have low usage, etc.

## SUBPART 103-34.5 - SCHEDULED MAINTENANCE

#### 103-34.502-50 HHS GUIDELINES 

> Whenever practicable and cost effective, government service facilities
> shall be utilized for motor vehicle maintenance.
>
> Individual vehicle maintenance records shall be kept to provide
> records of past repairs. These serve as a control against unnecessary
> repairs and excessive maintenance and as an aid in determining the
> most economical time for replacement.
>
> One-time maintenance and repair limitations shall be established by
> the OPDIV Fleet Managers for HHS owned vehicles and for commercially
> leased vehicles if not specified in the lease. Approval of the OPDIV
> Fleet Manager is required to exceed repair limitations.
>
> HHS OPDIVs will take full advantage of manufacturer warranties. When
> motor vehicles are maintained in government repair facilities in
> isolated locations that are distant from franchised dealer facilities,
> or when it is not practical to return the vehicles to a dealer, a
> billback agreement shall be sought from manufacturers to permit
> warranty work to be performed on a reimbursable basis.

## SUBPART 103-34.6 - REPORTING MOTOR VEHICLE ACCIDENTS

#### 103-34.601-50 REPORTING ACCIDENTS 

> All motor vehicle accidents shall be reported to the OPDIV Fleet
> Manager. Accidents that have been determined to be the fault of the
> government motor vehicle operator may be reviewed by a Board of
> Survey. If gross negligence has been determined, a copy of the results
> of the Board of Survey shall be provided to the HHS Fleet Manager.
>
> Standard Form 91, Motor Vehicle Accident Report, or a suitable OPDIV
> form should be completed by the vehicle operator at the time and scene
> of the accident, even if damage to the vehicle is not noticeable. In
> addition, a Standard Form 94, Statement of Witness, should be
> completed by any witness to the accident.
>
> In accordance with FMR 102-34-305, OPDIV/STAFFDIV Fleet Managers shall
> establish internal procedures for reporting accidents. Accidents
> involving motor vehicles acquired from the GSA Fleet must be reported
> to GSA in accordance with FPMR 101-39.4.

## SUBPART 103-34.8 - U.S. GOVERNMENT FUEL CREDIT CARD

#### 103-34.800-50 ADDITIONAL HHS CONTROLS ON FUEL CREDIT CARDS 

> The GSA contractor issued fleet charge card is the only government
> issued charge card that may be used for GSA motor vehicles GSA issued
> charge cards may be used for government owned and commercially leased
> vehicles. For further information on acquiring these fleet charge
> cards and their use, contact GSA.
>
> All motor vehicle operators shall be provided with appropriate
> instructions regarding the use and protection of credit cards against
> theft and misuse.
>
> In the event a fuel credit card is lost or stolen, reasonable
> precautions shall be taken to minimize the opportunity of purchases
> being made by unauthorized persons. The OPDIV/STAFFDIV Fleet Manager
> and paying office shall be notified immediately of the loss or theft
> and to be on the alert for any unauthorized bills.

## SUBPART 103-34.9 - FEDERAL MOTOR VEHICLE FLEET REPORT 

#### 103-34.903-50 REPORTING HHS MOTOR VEHICLE DATA 

> Each OPDIV/STAFFDIV will maintain vehicle use and mileage records
> including home-to-work usage. Records will be maintained for a period
> of three years. HHS OPDIV/STAFFDIVs shall report to the HHS Fleet
> Manager the number of owned and commercially leased motor vehicles no
> later than December 1 of each year via MVMIS. In accordance with FMR
> 102-34.85, negative reports are required even if no vehicles are
> purchased or leased that year.

## SUBPART 103-34.50 - LOCAL MOTOR VEHICLE MANAGEMENT

### 103-34.5001 LOCAL MOTOR VEHICLE MANAGER RESPONSIBILITIES 

Each local HHS office that operates motor vehicles, shall designate in
writing a local motor vehicle manager who shall be responsible for
directing the operation of the motor vehicle fleet, and shall:

A.  Operate the fleet in accordance with applicable laws and
    regulations, and HHS\
    and local directives.

B.  Ensure that an adequate system of records including logs of
    home-to-work usage is established and maintained.

C.  Perform and document reviews at least annually of fleet assignments
    to individuals under the aegis of Public Law 99-550 or
    organizational components to determine if continued assignment is
    justified. A bi-annual determination is required for any staff
    eligibility to participate in home-to-work use of fleet resources.
    This determination must be forwarded via the OPDIV/Staff Div Fleet
    Manager to OS/ASAM/OAMP/Division of Logistics Policy attention HHS
    Fleet Manager.

D.  Perform and document an annual review of motor vehicle utilization
    statistics to identify underutilized motor vehicles as prescribed in
    LMM 103-34.5004. Vehicles not meeting the use standards should be
    declared unrequired and disposed of or justification for continued
    usage should be prepared and submitted to the OPDIV Fleet Manager
    for review and concurrence.

E.  Rotate motor vehicles between high and low mileage assignments.

F.  Perform documented trend analyses of the annual costs of the motor
    vehicle fleet and review present operations and new requirements for
    the purpose, where feasible and cost effective, of establishing
    alternative sources for the motor vehicle fleet operation, e.g.,
    pooling arrangements, shuttle bus service, taxicabs, and joint
    utilization by several groups.

G.  Assure the maintenance of individual motor vehicle use records, such
    as trip tickets or vehicle logs, showing sufficiently detailed
    information to evaluate appropriateness of assignment and adequacy
    of use being made. If one-time use is involved, such as assignments
    from motor pools, the individual\'s trip records must, at a minimum,
    identify the motor vehicle and show the name of the operator, dates,
    destination, time of departure and return, and mileage.

HHS provides all OPDIVS/STAFFDIVS access to the HHS Motor Vehicle
Management Information System (MVMIS) through the delegation of an
OPSIV/STAFFDIV Fleet Manager. The following recurring reports are
mandatory and must be administered via MVMIS:

A.  Annual Alternate Fuel Vehicle Report (October)

B.  Annual Federal Automotive Statistical Tool (FAST) (October)

C.  Annual OMB A-11- Fleet Planned, Projected and Forecast Submission
    (August)

### 103-34.5002 LOCAL USE OBJECTIVES

Individual motor vehicle utilization cannot always be measured or
evaluated strictly on the basis of miles operated or against any
Department-wide mileage standard. For example, light trucks specifically
fitted for use by a plumber, welder, etc., in the performance of daily
work assignments, would have uniquely tailored use objectives, different
from those set forth for a truck used for general purposes. Accordingly,
efficient and cost effective local use objectives, which represent
practical units of measurement for motor vehicle utilization and for
planning and evaluating future motor vehicle requirements, must be
established and documented by the local motor vehicle manager. The
objectives should take into consideration past performance, future
requirements and special operating conditions.

These objectives shall be reviewed and adjusted as appropriate at least
annually by the OPDIV Fleet Manager. The reviews shall be documented and
provided to the HHS Fleet Manager when requested.

### 103-34.5003 APPLICATION OF USE GOALS 

At least annually, the local motor vehicle manager will review motor
vehicle utilization statistics and all motor vehicles failing to meet
the applicable GSA utilization standard or local use objective must be
identified.

Prompt action must be initiated to (1) reassign the underutilized motor
vehicles, (2) dispose of the underutilized motor vehicles, or (3) obtain
a special justification from users documenting their continued
requirement for the motor vehicle and any proposed actions to improve
utilization. Any requirement for underutilized motor vehicles which the
local motor vehicle manager proposes to continue in its assignment must
be submitted in writing to the OPDIV Fleet Manager for approval.

## SUBPART 103-34.53 WATERCRAFT

### 103-34.5300 SCOPE

This subpart establishes basic policies and procedures that apply to the
management of watercraft operated by HHS organizations and contractors.

### 103-34.5301 WATERCRAFT OPERATIONS 

No person may operate a watercraft on a waterway until skill of
operation, knowledge of "Rules of the Road", and basic watercraft
knowledge have been exhibited to his supervisor and the supervisor has
attested in writing that the employee is qualified to operate the
watercraft. Operators shall complete either a Coast Guard, Corps of
Engineers, or state boating safety course before operating government
watercraft.

Before a watercraft is put underway, the operator shall check the vessel
to ensure that the vessel is seaworthy and that the necessary equipment,
including personal flotation devices, lights, radio, and flares or other
emergency signaling devices, as required by laws applicable to the area
of operation, are present, properly stowed and in proper working order.
Optional equipment recommended by the U.S. Coast Guard or other
competent authority shall also be included when determined to be
necessary by the responsible field office.

Operators shall comply with all applicable Federal, state and local laws
pertaining to watercraft operation.

Operators shall not use watercraft or carry passengers except in the
performance of official Departmental assignments.

### 103-34.5302 WATERCRAFT IDENTIFICATION AND NUMBERS

Watercraft in the custody of HHS or HHS contractors shall display
identifying numbers, issued by the U.S. Coast Guard, State government or
local field office, in accordance with applicable State requirements.

### 103-34.5303 DISPLAY OF FLAGS AND SEAL 

Watercraft with overall length of twenty (20) feet or more, except
barges, shall display the U. S. Ensign (National Flag). The display of
the Departmental flag is optional. Location and times of display of
flags shall be in accordance with accepted practice.

# PART 103-37 AIRCRAFT MANAGEMENT

### 103-37.5001 GENERAL

This policy should be read after reading [OMB Circular No. A-126
\"Improving the Management and Use of Government
Aircraft\"](http://www.whitehouse.gov/omb/circulars/a126/a126.html),
[OMB Bulletin No. 93 -11, \"Fiscal Responsibility and Reducing
Perquisites\"](http://www.oas.gov/library/opm/7app2.PDF), [41 CFR 101-37
\"Government Aviation Administration and
Coordination\"](http://www.access.gpo.gov/nara/cfr/waisidx_00/41cfr101-37_00.html).
The Circular and the regulation are considered part of the policy and
are not repeated or paraphrased.

When considering air transportation resources, every effort should be
made to choose the best, most safe and least costly air transportation
solutions that fit the constraints of 41 C.F.R Parts 101-37, 300-3,
301-10 and 301-70.

### 103-37.5002 DEFINITION

**Component** as used in this part means OS and the OPDIVs.

### 103-37.5003 POLICY 

HHS meets its requirements for routine air transportation, such as
attending meetings and visiting field installations, through the use of
commercial airline service.  Aircraft charter services may be used for
medical evacuations and, in limited circumstances, for transportation of
equipment and supplies in remote locations. 

Aircraft charter services, instead of commercial airlines, may also be
used in the conduct of official travel when it is demonstrated to be
less costly to the Department.

Aircraft charter services, instead of commercial airlines, may also be
used in limited circumstances related to a compelling emergency (e.g.
natural disaster or emergency relief efforts) or mission critical travel
conducted by the Secretary of HHS and his staff.   In rare
circumstances, the HHS Secretary and his staff may be required to travel
via chartered aircraft to conduct travel to multiple places in a very
short timeframe when travel by commercial airlines in not possible due
to the critical nature of the trip.     

Aircraft charter services may also be necessary to accommodate
situations when Secret Service Agents carrying weapons create security
problems in foreign countries.  In all circumstances, the proper
procedures for chartering must be followed.  In addition, ALL requests
for use of chartered aircraft services must be authorized through the
[Assistant Secretary for Administration and Management
(ASAM)](http://knownet.hhs.gov/log/PDF/CharterAircraftForm.doc).
 *NOTE:  This type of travel must be reported to the GSA semi-annually
on the Senior Federal Travel Report. *

Components will not obtain ownership of aircraft or enter into leases or
rent aircraft without crew or operate aircraft without authorization of
the Department Fleet Manager, Office of Acquisition Management and
Policy (OAMP), Assistant Secretary for Administration and Management
(ASAM).

HHS components that have missions requiring the chartering of aircraft
will develop internal guidance to assist their field managers in making
decisions about aircraft usage. As a minimum these procedures will
provide guidance on approval authority for aircraft usage, on selecting
aircraft type, on safety requirements, on conducting the cost/benefit
analysis, and on completing the required aircraft records and reports. A
copy of this guidance will be provided to the Department Fleet Manager,
Office of Acquisition Management and Policy (OAMP), Assistant Secretary
for Administration and Management (ASAM) upon issuance.

In accordance with 41 CFR 101-37.507, components chartering aircraft
will complete and submit through their Component Fleet Manager to the
Department Fleet Manager, Office of Acquisition Management and Policy
(OAMP), Assistant Secretary for Administration and Management (ASAM)
completed electronic copies of GSA SF 3554-A \"Aircraft Contract,
Rental/Charter and Support Services Cost Data Form-Aircraft\" upon award
of agreements for aircraft services, and GSA SF 3551 \"Contract
Charter/Rental Aircraft Cost and Utilization\" no later than December
15th of each year using the Federal Aviation Management Interactive
Reporting System (FAIRS).  Access and participation in the FAIRS
reporting requires individual -- secure access permission through HHS
Office of Acquisition Management and Policy (OAMP)/Division of Logistics
Policy (DLP) -- Department Fleet Manager.  It is sanctioned by the
General Services Administration (GSA) Aircraft Management Policy
Division (MTA).   Data compiled in this system is reported to HHS,
Congress, and OMB.

### 103-37.5004 PROCEDURES

The process for chartering aircraft must follow the guidelines set forth
in the April 11, 2005 Memo, "[Changes in Regulations Regarding Use of
Charter Planes and Other Government
Aircraft](http://www.knownet.hhs.gov/log/PDF/AlexAzarMemo41105CharterPlanes.pdf)".
The Assistant Secretary for Administration and Management will have
signature authority to approve all requests. General Counsel and the
Assistant Secretary for Resources and Technology (ASRT) will provide
concurrence/review before final approval is granted by the ASAM.

# PART 103-40 \-- TRANSPORTATION AND FREIGHT MANAGEMENT 

### **103-40.001 Purpose and Scope**

This chapter sets forth Department of Health and Human Services (HHS)
policy and procedures applicable to the management of transportation and
freight. This involves using commercial transportation resources
worldwide and, Department of Defense (DOD) single manager transportation
resources, where applicable, to, from and between overseas areas. The
purpose of this chapter is also to:

Standardize procedures for HHS transportation and traffic management
functions.

Supplement, and be used in conjunction with, current editions of the
Federal Property Management Regulations (FPMR), Part 101-40; and
applicable Defense Traffic Management Regulation (DTMR) for those using
military transportation services, by OPDIVs responsible for shipping and
receiving freight shipments for the account of HHS.

### 103-40.002 Traffic Management Policy

This section prescribes basic policy governing the use of commercial
transportation services.

Shipments shall be routed using the mode of transportation, or
individual carrier or carriers within the mode, that can provide the
required service at the lowest overall delivered cost to the Government.

When deciding how to route a freight shipment, the main factors for
consideration, in their relative order of importance, are: Satisfactory
service, aggregate delivered cost, least fuel-consumptive carrier/mode,
and equitable distribution of traffic.

Consideration of the following factors shall be used when determining
whether a carrier or mode of transportation can meet your service
requirements for each individual shipment:

A.  Availability and suitability of carrier equipment.

B.  Shipping and receiving facilities at origin and destination.

C.  Pickup and/or delivery service (including inside pickup or
    delivery), if required.

D.  Availability of required accessorial and special services, if
    needed.

E.  Estimated transit time.

F.  Record of past performance of the carrier.

### 103-40.003 Aggregate Delivered Costs

In addition to the actual transportation rates and charges, other cost
factors should be considered in determining the most economical routing.
Examples of other cost factors are packing, blocking, bracing, tunnage,
drayage, loading, and unloading.

### 103-40.004 Most Fuel Efficient Carrier/Mode

When more than one mode, or more than one carrier within a mode, can
satisfy the service requirements of a specific shipment at the same
lowest aggregate delivered cost, the carrier or mode determined to be
the most cost and fuel efficient shall be selected.

### 103-40.005 Equitable Distribution of Traffic

When all the factors shown above are equal, traffic shall be distributed
as equally as practicable among the modes and among the carriers within
the modes. When socially or economically disadvantaged carriers are
among the eligible competing carriers, positive action will be taken to
include such carriers in the equitable distribution of traffic.

### 103-40.006 OPDIV Selection

General Services Administration (GSA) regional offices provide
transportation/traffic management data to enable personnel to
effectively handle activation, deactivation, expansion, reduction, or
change of sites that substantially changes the origin, destination, or
volume of material movements.

### 103-40.007 Traffic Management Factors

GSA regional offices also provide traffic management factors to be
considered in the procurement (Federal Acquisition Regulation/HHS
Acquisition Regulation) and distribution of material and movement of
personnel. The following should be considered when making a selection:

A.  Unsatisfactory Service. When the services of a carrier fail to meet
    HHS requirements, or provisions of a tariff or tender, and written
    notice to the carrier describing specific deficiencies does not
    result in satisfactory improvement, the transportation officer
    invokes the Temporary Nonuse, Disqualification, and Suspension
    procedures described in enclosure (3).

B.  Insurance Against Transportation Hazards.

```{=html}
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```
1.  The Government generally (1) retains the risk of loss of and/or
    damage to its property that is not the legal liability of commercial
    carriers and (2) does not buy insurance coverage for its property.

2.  Under special circumstances, the Government may, if such action is
    considered necessary and in its best interest, (1) buy insurance
    coverage for Government property or (2) require the carrier to
    assume full responsibility for loss of or damage to the Government
    property in its possession and buy insurance to cover the carrier\'s
    assumed responsibility. The cost of this insurance to the carrier
    shall be part of the transportation cost. Shipments transported
    under the GSA Standard Tender of Service move at full value of the
    commodity shipped. Tenders are normally subject to a released value
    not exceeding (RVNX) \$2.50 per pound.

3.  If special circumstances dictate the need for the Government to buy
    insurance coverage, the contracting officer shall ascertain that
    there is no statutory prohibition and that funds for insurance are
    available. The contracting officer shall document the need and
    authorization for insurance coverage in the contracting file.

### 103-40.008 OPDIV Freight/Transportation Considerations

OPDIVs are permitted to supplement this Part with local policies and
procedures to meet their specific freight and transportation needs,
especially, when it involves the safe handling and transportation of
biological, chemical and/or radiological materials.

##   SUBPART 103-40.1 APPOINTMENT OF TRANSPORTATION OFFICERS: RESPONSIBILITIES AND DUTIES 

### 103-40.100 Transportation Officers TO

Each OPDIV that needs to obtain transportation service from commercial
carriers will appoint a full qualified person as transportation officer.
In addition, "Alternate Transportation Officers" ATO may be appointed to
assist the Transportation Officer. The term \"Transportation Officer\"
applies to any person performing traffic management functions. It is
title of the individual and should be reflected in the organizational
structure.

### 103-40.101 Signing for TO

When transportation documents, or annotations on them, are signed by the
ATO in the name of the TO or issuing officer, and the name and title of
the appropriate individual is shown on such documents, the signature of
the ATO will be followed by \"ATO for TO.\" When the appropriate
official\'s name and title are not shown on the transportation document,
the signature of the transportation agent will be followed by the legend
\"ATO for J. DOE, TO.\"

### 103-40.102 ATO Authorized To Sign

When an ATO is authorized to sign transportation documents, only the
ATO\'s signature, name, and title need appear.

### 103-40.103 Duties and Responsibilities

TOs handling freight shipments are responsible for the following traffic
management duties:

A.  Liaison With Local Carriers. Conduct official liaison with all
    carriers serving the OPDIV and for local arrangements necessary for
    the movement of property.

B.  Custody and Shipments. Provide custody and centralized control over
    all outbound shipments from the time of release by the officer until
    acceptance by the carrier; and all inbound shipments from the time
    of delivery by the carrier until delivery to the supply officer or
    \"Marked For\" addressee, as appropriate.

C.  Bills of Lading. Provide for custody, accounting, issuing of
    Government bills of lading; and converting commercial bills of
    lading.

D.  Routing and Expediting. Route, trace, expedite, consolidate, divert
    and obtain shipping releases in accordance with applicable
    directives.

E.  Packing, Crating, and Marking. Provide technical advice to assure
    conformity in packing, crating, marking, stowage, dimensional
    clearance, and weight limitation of shipments using carrier
    requirements.

F.  Loading and Unloading. Technical supervision of loading, unloading,
    cleaning, and prompt release of carrier\'s equipment to avoid
    demurrage or detention charges.

G.  Schedules, Services, and Charges. Maintain familiarity with
    schedules, services, facilities, rates, fares, charges, and traffic
    agreements of commercial carriers.

H.  Demurrage/Detention Records. Maintain demurrage and detention
    records and accounts.

I.  Reporting Transportation Discrepancies in Shipments. Prepare and
    distribute SF 361, Transportation Discrepancy Report TDR, and other
    actions taken in connection with reporting, resolving, and
    preventing of over, short, damaged, lost, or astray freight.

J.  Report planned volume movements and other opportunities for
    negotiations with commercial carriers as required in Subpart
    103-40.501.

K.  Reports. Prepare and forward transportation reports and information
    as needed to the Office of Acquisition Management and Policy (OAMP),
    Assistant Secretary for Administration and Management (ASAM),
    General Services Administration (GSA), or other cognizant
    organization.

L.  Traffic Management Advice. Provide or assure the provision of
    traffic management advice to officials responsible for making
    decisions pertaining to procurement and distribution actions. GSA
    regional offices will provide the transportation officer with
    technical traffic management advice as necessary.

M.  Assistance visits. Whenever traffic management problems pertaining
    to procurement or the movement of material necessitates
    person-to-person contact, initiate requests for field assistance
    visits. If you wish assistance from the appropriate GSA regional
    office, GSA will conduct field assistance visits at no charge if the
    visit is in conjunction with other official GSA business. If not,
    GSA requires requester funding or reimbursement for these assistance
    visits. GSA also conducts numerous seminars sponsored by the Office
    of Transportation Audits and Customer Service Directors. The dates
    and locations are published in the GSA Market Tips and at the GSA
    website.

N.  Initiate and Receive Shipments. This refers to shipments of property
    for which the HHS pays the transportation charges or in which the
    HHS has an interest.

O.  Traffic Management Procedures. Exercise sound procedures and move
    all traffic at the most economical costs to the Government keeping
    consistent with delivery and mission requirements.

P.  Local Transportation Resources. Keep familiar with local resources
    and capabilities so that freight and personal property are moved by
    the most effective and economical modes and routes.

## SUBPART 103-40.2 MAINTENANCE OF TARIFFS, TENDERS, AND RELATED PUBLICATIONS

### 103-40.200 General

Except for security shipments, only tenders conforming to the General
Services Administration (GSA) Standard Tender of Service (STOs) will be
used. The procurement and maintenance of commercial/Government tariffs,
tenders, and related publications are restricted to the minimum required
to effectively perform delegated commercial traffic activities. This is
the responsibility of the local organization. Tenders should be obtained
from several competing carriers servicing the same geographic areas to
assure adequate price and service competition. An annual review of the
tariff/tender file should be made to update requirements and assure the
currency of editions. The file should be located with ready access by
those requiring access. Transportation Officers TOs and transportation
personnel should acquire the publications necessary to effectively
perform transportation and/or traffic management responsibilities.

### 103-40.201 Authorized Functions

A.  Provide necessary routing for transportation of materiel.

B.  Obtain proper commodity descriptions for transportation
    documentation and billing purposes.

C.  Ensure shipments are packed and marked so that, when offered for
    transportation, they conform to requirements of the tariffs.

D.  Ensure loading of shipments into or on carrier\'s equipment conforms
    to safety and tariff requirements.

E.  Enable the Government to plan shipments that obtain maximum use of
    carrier\'s equipment.

F.  Enable units which frequently ship mixed carloads or truckloads to
    load and bill shipments that obtain maximum benefit for the
    Government.

G.  Ensure that the billing of shipments requiring special service of
    any kind, such as security or escort service, show complete
    instructions for furnishing the service in conformance with the
    tariff.

### 103-40.202 Funding

Publications issued commercially must be locally funded and procured
directly from the publisher.

### 103-40.203 Receipt and Distribution of Individual Rate Tenders

The only tenders used will be those which the carriers have submitted in
writing.  Carriers subject to the GSA STOs must use the Optional Form
280.  Optional Form 280 is no longer available through the Government
Printing Office.  Carriers will obtain this form through the American
Trucking Association and are responsible for its preparation.  Rate
tenders that are ambiguous in meaning shall be resolved in favor of the
Government; therefore, explicit terms and conditions are necessary to
preclude misunderstandings by the parties to the rate tender.  For each
tender received without a GSA stamp, submit one signed copy to the GSA
National Capitol Region (NCR), 7th & D Streets SW, Washington, DC 20407
and two copies (including at least one signed copy) to GSA Office of
Transportation Audits (FW), Washington, DC 20405.  GSA also receives
voluntary and negotiated tenders and stamps each tender.  The carrier
who issued the tender is responsible for reproduction and distribution
of the tenders to all concerned shipping activities.

[]{#__RefHeading___Toc159986102 .anchor}**[SUBPART 103-40.3
PARTICIPATION IN PROCEEDINGS BEFORE TRANSPORTATION REGULATORY BODIES\
]{.underline}**\
**103-40.300 GENERAL AUTHORITY OF LOCAL OFFICIALS**

In general, no agency subject to the provisions of section 201 of the
Federal Property and Administrative Services Act of 1949, as amended,
may appear on its own behalf in any proceeding before a transportation
regulatory body. Representation is either provided by the Administrator,
GSA, or, in certain instances, authority, with the approval of the
Administrator, may be delegated to certain officials in GSA or to the
head of another executive agency to represent itself. An individual must
promptly submit the facts in the case in the following detail:

A.  With respect to carriers\' tariffs, rates, and operating authority,
    requests must be promptly submitted to the Office of Acquisition
    Management and Policy (OAMP), Assistant Secretary for Administration
    and Management (ASAM) along with a recommendation.

B.  When a shipper\'s affidavit in support of a carrier\'s application
    for operating authority is required by law, the requester shall
    furnish to GSA such information and the appropriate form(s) as may
    be prescribed by transportation regulatory bodies in proceedings of
    this kind.

## SUBPART 103-40.4 FURNISHING TRAFFIC AND RELATED INFORMATION TO COMMERCIAL CARRIERS

### 103-40.401 Data To Be Furnished to Carriers

Information furnished to carriers concerning freight shipments will be
confined to facts, as restricted by security regulations, not opinions
or suppositions.

Loss or Damage. Replies to carrier inquiries on loss or damage to
Government property shall be confined to facts of knowledge or as
revealed by official records. Specify their official nature in
statements furnished to carriers. These statements will apply to all
matters concerning valuation, packaging, tally records, loading methods,
conditions of seals or lading, and freight markings. Do not furnish
carriers with opinions or conclusions relative to liability, including
findings or recommendations of reports of survey.

### 103-40.402 Letters of Endorsement

Carriers occasionally request letters of endorsement regarding service.
These letters can be misused by carriers and shall not be provided. All
such requests will be passed to the General Services Administration
(GSA) via the Office of Acquisition Management and Policy (OAMP),
Assistant Secretary for Administration and Management (ASAM).

### 103-40.403 Traffic Distribution Information

In order to promote competition among carriers, Transportation Officers
(TOs) may discuss distribution of traffic with carrier representatives
using the following guidelines:

A.  Do not reveal sensitive information.

B.  Confine discussion to traffic routed by the local transportation
    officer.

C.  Refer all inquiries regarding traffic controlled or routed by GSA or
    the Military Traffic Management Command (MTMC) to the office
    responsible for routing that traffic.

### 103-40.404 Claims and Litigation

Do not release copies of official records or information that can be
used as the basis of a claim against the Government. Such information
should only be released within the discharge of official duties. Forward
requests for such information, together with any other pertinent data,
to Office of The General Counsel for appropriate disposition.

### 103-40.405 Commodity Descriptions

Inquiries regarding commodity descriptions may be answered by furnishing
information contained in shipping documents, tenders, bills of lading,
GSA supply catalogs, or other supporting records.

### 103-40.406 Guarantee of Freight

No guarantee or promise of tonnage will be made to individual carriers,
carrier groups or associations, or the owners of commercial
transportation equipment. This will not preclude disclosing potential,
non-classified requirements to the carriers selected for movement.

[]{#__RefHeading___Toc159986110 .anchor}**[SUBPART 103-40.5 FREIGHT
TRAFFIC NEGOTIATIONS]{.underline}\
**\
**103-40.500 General**

Except as provided elsewhere in this part, the General Services
Administration conducts all transportation negotiations to establish or
modify rates, charges, ratings, services, and pertinent rules or
negotiations.

### 103-40.501 Volume Movements

When the total quantity of property to be shipped exceeds 100,000 pounds
per shipment or when the known aggregate (total) of more than one
shipment will exceed 100,000 pounds, Transportation Officers (TOs) must
submit complete information concerning planned or unplanned volume
movements to the appropriate GSA Zone Office, Federal Supply Service,
Transportation Management Branch. This is necessary so a cost analysis
can be made to determine whether carrier negotiation is appropriate. The
information to be furnished shall be detailed and shall include the
property characteristics (those requiring shipment in bags, boxes, or
bulk; dimensions, density; value; and susceptibility to damage), origin,
destination, number of shipments, planned shipping schedule, and planned
required delivery dates. Additional information to be submitted
includes:

A.  Complete description of commodity, including Federal Stock Number
    (if assigned), use of article, material from which made, value (if
    known), and type of inner package. For wide- mixture shipments,
    furnish complete descriptions of at least two or three of the
    predominate items.

B.  Item number and governing freight classification (see A Above).

C.  Free On Board F.O.B. contract terms (if applicable).

D.  Estimated total weight of shipment.

E.  Estimated number of carloads or truckloads.

F.  Data required for light and/or bulky shipments and containerized
    cargo:

```{=html}
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1.  Number of units loaded per (size) (type) railcar.

2.  Number of units loaded per (size)(type) truck.

3.  Cube and physical measurement of each commodity unit.

4.  Number of units loaded per (size)and(type)of container.

5.  Indicate applicable degree of security classification (i.e., SECRET
    or CONFIDENTIAL) for classified shipments, or indicate that shipment
    number consists of protected material. Also specify the type of
    number intransit protective service required.

6.  If an export shipment, show its specific final destination, e.g., \"
    FDA Toxicology Laboratory Jefferson, Arkansas,\" not just
    \"Arkansas.\"

### 103-40.502 Classification Ratings 

Local TOs will forward the information indicated in subpart directly to
the GSA regional office in the following circumstances:

A.  When it is believed that an article of freight is not properly
    described in the applicable freight classification.

B.  When it is believed that a rating is unreasonable.

C.  When it is believed that classification rules or packing
    specifications should be added or modified.

D.  When new and unclassified articles, commodities, or weapons are
    developed that require commercial transportation.

Information Furnished to the GSA regional office:

A.  Complete description of article, including use of article and
    material from which made and Federal Stock Number, if one has been
    assigned.

B.  Manner of shipment (setup, knocked down, etc.).

C.  Kind of shipping container, that is, box, crate, etc.(fiberboard,
    wooden or other).

D.  Overall dimensions of shipping container (length, width and height)

E.  Gross weight of contents and shipping package.

F.  Actual value of article, if known.

G.  Weight generally loaded in or on a standard 50­foot rail car.

H.  Average weight loaded in a trailer (Indicate size of trailer).

I.  Copy of technical order, catalog page, photograph, or other
    available descriptive material.

J.  Name and address of manufacturer.

K.  Item number and classification description now used.

L.  Volume and frequency of movement.

M.  Proper shipping description and information required by 49 CFR,
    Subchapter C as revised.

### 103-40.911 Explosive and Dangerous Articles

Certificated Scheduled/Non-scheduled Air Carriers. Except where the FAA
has issued specific waivers, certificated scheduled and non-scheduled
air carriers may not transport articles prohibited from airlift in
cargo-carrying aircraft and, as further limited in passenger-carrying
aircraft, those articles restricted in individual airline tariffs and in
the Official Air Transport Restricted Articles Tariff 6-D and the most
recent edition of Title 49, Code of Federal Regulations (CFR),Parts 100
through 199.

Small-arms ammunition for personal use by law enforcement may be carried
by a passenger in his/her baggage (excluding carry-on baggage) if
securely packed in fiber, wood, or metal boxes, or other packaging
specifically designed to carry small amounts of ammunition.

For a listing of materials which may be carried aboard aircraft by
passengers, see 49 CFR 175.10.

## SUBPART 103-40.10 SHIPMENT BY GOVERNMENT-OWNED TRANSPORTATION EQUIPMENT

### 103-40.1001 Policy

The preferred method of transporting property for the Government is
through the facilities and equipment of commercial carriers. However, as
directed by the local OPDIV having cognizance, government-owned motor
vehicles may be used to transport freight up to 100 miles, one way,
except as provided below. For the majority of offices, the metropolitan
area of the city is usually the limit for government-owned motor
vehicles.

### 103-40.1002 Public Emergency

When the Secretary of HHS determines that an emergency exists, and the
use of government-owned motor vehicles would be in the best interest of
the Government, government-owned and operated vehicles may be used to
transport freight regardless of the distance involved, provided that
state permits are not required because of excessive dimensions or
weight. Such cases would involve the movement of high­ priority material
and trips to the nearest airport for movements via U.S. Government
aircraft or contract air carrier.

### 103-40.1003 Transfer and Return of Government-Owned Transportation Equipment

When government-owned transportation equipment is transferred from or
returned to the home location to which assigned, such vehicles may be
loaded with Government material to be transported, regardless of the
distance involved.

### 103-40.1004 Documentation of Shipments 

When government-owned transportation equipment is used for the shipment
of material between Federal activities, copies of the basic issue
document should be used to control the movement, provided proper
accountability, security, and ensure that the necessary receipt
procedures are maintained.

## SUBPART 103-40.12 SHIPMENT OF MATERIAL

### 103-40.1201 Authority

Prior to release to carrier, all material accepted by the Transportation
Officer (TO) or their representative must be authorized and documented
by appropriate authority, including but not limited to:

A.  Shipment orders issued by OPDIVs, Inventory Control Points ICPs,
    etc.

B.  Free on Board F.O.B. origin contracts.

C.  Approved acquisition documents.

D.  Letters or messages issued by component authority.

### 103-40.1202 Emergency Authority

In instances of emergency, disaster, or catastrophe, shipments may be
made by any mode of transportation without the prior approval of the
cognizant routing office, i.e., the General Services Administration
(GSA); and regardless of weight or other factors when, in the judgment
of the TO, such action is considered necessary. This procedure applies
only when time will not permit contacting the cognizant routing
authority for routing instructions and does not waive the policy that
shipments be made by the most economical mode consistent with delivery
requirements. The circumstances justifying this action must be recorded
on the reverse side of the memorandum bill of lading. The original and
all copies of the bill of lading will be marked \"Emergency Shipment.\"

### 103-40.1203 Routing Authority

OPDIVs should contact the GSA Zone office, and utilize the GSA
Interagency Transportation Management System to provide routing
assistance along with any restrictions on commodity categories or
limitations on weight. Violations of local, state, or Federal laws could
subject the shipper to serious legal sanctions.

### 103-40.1204 Forms Availability

An initial supply of GSA Form 420, Freight Rate and Route
Request/Response may be obtained from GSA by submitting a letter request
to:

General Services Administration\
National Forms and Publications Center\
Warehouse 4, Dock 1\
4900 South Hemphill Street\
Fort Worth, TX 76115

Annual requirements for this form should be submitted to the GSA
National Forms and Publications Center.

### 103-40.1205 Standing Route Orders

GSA may issue standing route orders to cover normal repetitive movements
(two or more shipments per month) of specific items between specified
points by any mode of transportation. Ordinarily, a standing route order
will be issued when the origin, destination, commodity(ies), and
frequency of shipments constitute a repetitive traffic pattern.
Normally, GSA will maintain a standing route order file and review
routings at 60-day intervals from the date of issuance to assure current
application of rates, ratings, routes, and classification. When
conditions change, GSA will provide the requestor revised routing
instructions.

### 103-40.1206 Selection of Carrier Factors

When the mode of transportation has been determined within the routing
authority of TOs, the appropriate carrier or carriers within the mode
will be selected. The following factors will be considered in the
carrier selection:

Carriers selected must be capable in all respects of performing the
services required. Information pertaining to the capability of the
carrier(s) may be obtained from GSA or from the local agents of the
carriers.

Freight rates vary with the mode of carriage and among the carriers
within a mode. An evaluation should be made of the overall cost via each
transportation medium under consideration; a further evaluation should
be made with respect to the carriers under consideration. Freight rate
information may be obtained from the appropriate GSA office. If time
doesn\'t permit obtaining freight rate information for priority
shipments from GSA, such information should be requested from local
carrier representatives. Rates furnished by carriers are for information
purposes only and are not legally binding on the carrier. The legal
basis for assessment of freight charges are the rates published in
tariffs or special tenders.

### 103-40.1207 Shipment of Hazardous Material or Waste

Hazardous Material or Waste. Shipments of hazardous material (HM) within
the U.S. or overseas must conform to applicable requirements established
by statute or by regulatory bodies having responsibility over such
traffic. Shipments of HM must not be tendered for transportation in a
manner or under conditions which will result in a carrier violation of
these requirements. Shipments of HM transported on government-owned
equipment over the public highways must also conform to these
requirements.

Statutory Requirements. For surface carriers in the United States, the
regulations of the Department of Transportation (DOT) governing
hazardous material (HM) are binding on all shippers and all common,
contract, and private land carriers. Air carriers of HM are governed by
packaging requirements of Title 49, Code of Federal Regulations (CFR),
and safety requirements of the Federal Aviation Administration
regulations. Water carriers must comply with regulations of DOT
(primarily 49 CFR) and the U.S. Coast Guard. Specific precautions may be
required by local, city, county, or state regulatory bodies in
connection with intrastate shipments, water terminal handling, local
hauls, etc. 49 CFR provides for civil and criminal penalties for HM
shipment violations. A person who knowingly violates HM shipment
requirements is subject to a maximum fine of \$25,000 per day per
violation. A person who willfully violates HM shipment requirements is
subject to a fine under Title 18, United States Code, and/or
imprisonment of up to five years, or both.

Code of Federal Regulations. The following is a list of pertinent parts
of the Code of Federal Regulations (CFR) dealing with HM:

A.  10 CFR, Part 71 (Radioactive Material).

B.  40 CFR, Parts 260-267 (EPA Hazardous Waste Management System).

C.  46 CFR, Parts 146-148 (Dangerous Cargoes).

D.  49 CFR, Parts 100 to 199 (Hazardous Material Regulations of the U.S.
    Department of Transportation), revised as of 12/31/91.

E.  CFR publications are available from Superintendent of Documents,
    U.S. Printing Office, Mail Stop: SSOP, Washington, DC 20402.
    Telephone (202) 783-3238 or via the GPO web site.

### **Tariffs and Regulations**

A.  IMDG - International Maritime Dangerous Goods (IMDG) Code. Provides
    detailed provisions to assist in compliance with legal requirements
    of the International Convention for the Safety of Life at Sea. This
    publication is available in the United States through packaging,
    labeling, and maritime instrument suppliers.

B.  IATA - International Air Transport Association (IATA)/Restricted
    Articles Regulations. Provides requirements for entering hazardous
    material into International Air Flights. For regulatory purposes
    involving the international transportation of hazardous material,
    DOT recognizes the International Civil Aviation (ICAO) Technical
    Instructions, but not those of IATA. However, the IATA Dangerous
    Goods Regulations are applicable to all airlines which are Members
    or Associate Members of IATA, all airlines which are party to the
    IATA Multilateral Interline Traffic Agreement-Cargo, and all
    shippers and agents that offer consignments of dangerous cargo to
    these operators. This publication can be obtained directly from IATA
    at the address shown below or from companies such as Label-master.

C.  The following tariffs and regulations provide guidance on the
    shipment of HM:

> IATA\
> 1000 Shetbrooke West\
> P.O. Box 550\
> Montreal, Que, Canada H3A2R4
>
> ICAO - International Civil Aviation Organization ICAO/Technical
> Instructions for the Safe Transport of Dangerous Goods by Air. This
> publication can also be obtained directly from IATA at the address
> shown below or from companies such as Labelmaster.
>
> Acceptance of Hazardous or Restricted Articles, United States Postal
> Service Publication 52 and, Radioactive Matter, United States Postal
> Service - Publication 6. Both available from:
>
> U.S. Postal Service
>
> Eastern Area Supply Center
>
> Somerville, NJ 08877

### 103-40.1207-1 Responsibilities of Hazardous Material and Hazardous Waste (HAZMAT/HAZWASTE) Personnel

> See 49 CFR, Subpart C, for HAZMAT/HAZWASTE requirements.

A.  Must have a working knowledge of HAZMAT/HAZWASTE as defined in the
    HAZMAT/HAZWASTE regulations.

B.  Assist packing and shipping personnel to determine the proper
    shipping name and hazard class for each type of hazardous material
    or waste shipped.

C.  Assist shipping personnel in obtaining complete information about
    the authorized containers that may be used for the quantities and
    chemical characteristics of the hazardous material or waste to be
    shipped.

D.  Assist shipping personnel in preparing specific instructions needed
    by carrier personnel to handle transportation emergencies involving
    the hazardous material or waste being shipped.

### 103-40.1207-2 Responsibilities of HAZMAT/HAZWASTE Packing and Shipping Personnel

A.  Must have a working knowledge of, and have available for reference
    to, the packaging, labeling, and marking regulations for
    HAZMAT/HAZWASTE.

B.  Have accurate information about types of containers specified for
    each class of HAZMAT/HAZWASTE shipped.

C.  Determine the proper shipping name, hazard class, label(s), and
    required container marking.

D.  When repacking or breaking down shipments received from others for
    further distribution, don\'t assume that the original shipments were
    correct. Follow the same checking procedure the same as you would
    for a shipment originating at your location.

E.  When calling a carrier for pickup of HAZMAT/HAZWASTE, give them
    specific information as to proper shipping name, hazard class, and
    quantity involved.

F.  Before HAZMAT/HAZWASTE shipments are tendered to carriers, check the
    following:

    1.  Make certain that authorized containers have been used.

    2.  Proper closures have been used and no leaks are evident.

    3.  Ensure that outside packages are properly labeled and have
        required outside marking.

    4.  Shipping documents include the proper shipping name, hazard
        class, signed certificate, and proper count and weight.

    5.  Noncompatible materials are not co-mingled in the same shipment.
        If non-compatible shipments are tendered to the same carrier,
        make certain that the carrier recognizes the situation and does
        not transport in same vehicle. For highway shipments, check the
        Segregation and Separation Chart of Hazardous Materials found in
        49 CFR 177.848. For rail shipments, check 49 CFR, Part 174. If
        shipment by vessel is involved, check 49 CFR, Part 176.

    6.  Ensure that necessary movement permits and clearances have been
        obtained by shipper or carrier.

G.  When tendering a HAZMAT/HAZWASTE shipment to a carrier, make certain
    that the driver is made aware that it contains hazardous material.

H.  When HAZMAT/HAZWASTE is loaded by shipper personnel, make certain
    that a carrier representative has an opportunity to approve the
    placement, securing, and blocking of the materiel before closing out
    and sealing the load, if seals are used.

I.  If placards are required, do not permit a carrier to transport your
    HAZMAT/HAZWASTE shipment unless such placards are properly
    displayed.

### 103-40.1208 Valuables

Shipment of valuables refers to shipment of the following:

A.  Money of the United States and foreign countries: Currency,
    including mutilated and canceled currency and specie \"coin.\"

B.  Securities and other instruments or documents, private and public:

> Abstracts of Title
>
> Assignments\
> Bills\
> Bonds\
> Certificates of Deposit\
> Certificates of Indebtedness\
> Checks, Drafts and Money Orders\
> Coupons\
> Debentures\
> Deeds\
> Equipment Trust Certificates\
> Mortgages\
> Notes\
> Stamps, including Postage, Revenue, License, Food Order and Public
> Debt\
> Stamped Envelopes and Postal Cards\
> Stock Certificates\
> Trust Receipts\
> Voting Trust Certificates\
> Warehouse Receipts\
> Warrants

C.  Other instruments or documents similar to the foregoing, whether
    complete, incomplete, mutilated, canceled, in definitive form or
    represented by interim documents.

D.  Diamonds and other precious stones, gold, silver, and any other
    precious or rare metal, including articles composed of these metals.

E.  All other valuables, including works and collections of artistic,,
    historical, scientific, or educational value which are the property
    of the United States or which may be loaned to the United States at
    its request or which may be shipped on authority of the United
    States for its examination or acceptance as a gift.

### 103-40.1208-1 Procedures for Shipment of Valuables

General. Regulations governing the shipment of valuables pursuant to the
Government Losses in Shipment Act of July 8, 1937 (50 Stat. 479) as
amended (5 U.S. Code 134-134h) are contained in 31 CFR Parts 260-262.

Preparation for Shipment. Employees must inspect each container of
valuables to be shipped before final sealing or locking for delivery to
the carrier. The shipment must be sealed or locked in the presence of an
employee before leaving their immediate control. These requirements
apply irrespective of the carrier or the mode of transportation employed
in making the shipments.

Record of Shipment. For each shipment of valuables, the consignor will
maintain a permanent record containing the following:

A.  The name and address of the consignee.

B.  A complete description of the contents. If the shipment comprises
    securities, the issue, series, denomination, serial number, and a
    description of the coupons, if any, attached to the securities at
    the time of shipment.

C.  Face or par value of the shipment in the case of securities,
    currency, etc. or the replacement value.

D.  The registry number or the lock and rotary numbers, if any, under
    which shipped.

E.  The number of the registry receipt or other receipt of carrier.

F.  The date and hour of delivery to the carrier.

G.  The signature of each employee who inspected the contents of the
    container and witnessed the sealing or locking.

H.  The signature of each employee who, after final sealing or locking,
    had custody of the shipment until delivered at the post office for
    registration or deposited with the post office or other carrier for
    shipment.

I.  The name of the carrier.

Note: In addition, the consignor will keep all registry receipts or
receipts of other carriers for a reasonable time. The consignor should
also keep other documents incidental to the shipment.

Advance of Shipment. The consignor will forward a notice to the
consignee immediately after shipment when the value of a single shipment
of articles listed above equals or exceeds \$10,000 except in the case
of intercity shipments. The notice will include the following:

A.  A complete record of the contents of the shipment.

B.  The mode of transportation employed and the name of the carrier.

C.  The date of delivery to the carrier.

Shipment Receipt. On receipt of the shipment of valuables, the consignee
will be responsible for the following:

A.  Shipment will be opened, checked, and inspected by one or more
    responsible employees of the consignee.

B.  Consignee will notify the consignor immediately of any difference
    between the quantities indicated in his or her notice and in the
    shipment when opened, checked, and inspected.

C.  Consignee will promptly notify the consignor and the post office or
    other carrier through which delivery would be made if the shipment
    fails to arrive in due course.

D.  The consignor will be advised immediately concerning any damage to
    the shipment.

E.  All findings of the consignee or any irregularities will be made a
    matter of record. The record may be subject to call or inspection by
    the Secretary of the Treasury or other duly authorized Government
    officers in connection with any investigation of the shipment.

Shipment Lost or Damaged. For any situation involving the loss or damage
in connection with a shipment of valuables, the following actions should
be taken:

A.  Complete a report of loss, destruction, or damage.

B.  File a claim for replacement.

C.  Retain proof of claim and records associated with the loss,
    destruction or damage.

## SUBPART 103-40.13 TRACING AND EXPEDITING

### 103-40.1301 Tracing

Tracing is the procedure for locating shipments. It is a service that
carriers perform for shippers or consignees when it is necessary to
locate a shipment en route or when shipment is not delivered. If freight
is not delivered within a reasonable time after it is tendered for
transportation, the shipper or the consignee will request that the
carrier furnish information as to the location of the shipment. Failure
to prove delivery will constitute a basis for freight claim action
against the origin carrier. A tracer must not be requested until the
carrier has had enough time, after receipt of the shipment, to make
delivery at destination. These time frames vary by mode of shipment.
Tracing procedures outlined in this part are applicable to all civilian
shipments.

### 103-40.1302 Expediting

Expediting is an action taken before the carrier receives a specific
shipment to ensure movement from origin to destination in the shortest
time possible. This service may be used when a shipment is needed
urgently at destination or when congestion is likely to occur on the
carrier lines over which the shipment is to move. While most carriers
perform this service free of charge to enhance customer relations, extra
charges may be assessed. Check with the particular carrier before
releasing the shipment. Expediting must not be requested unless it is
believed that the shipment may not arrive at destination on time without
the service of expediting.

### 103-40.1303 Controls Within the Shipping Activity

To trace and expedite shipments effectively, it is necessary to maintain
coordination from the point of issue through the storage and packing
functions into the traffic section. This control is necessary for quick
determination of the following:

A.  When requests for shipments were received.

B.  When material was procured or moved from storage.

C.  When and how material was packed.

D.  When the material was placed in the hands of the traffic function
    for eventual shipment. When a determination has been made that the
    material was shipped, certain additional procedures must be followed
    to effectively trace the material or expedite the material en route
    to destination.

[]{#__RefHeading___Toc159986136 .anchor}**103-40.1304 Procedure for
Tracing**

Sufficient information must be furnished to the carrier for tracing and
locating a shipment. This information varies within the major
geographical areas and also with the type of transportation service
utilized.

### 103-40.1304-1 Within the United States - Including Alaska and Hawaii

> When shipments have been routed in accordance with instructions
> furnished by appropriate routing offices, i.e., the General Services
> Administration the requester will furnish the information listed in
> sub-parts 103-40.1305, to the originating carrier or to the routing
> office which issued the routing instructions.

### 103-40.1304-2 Shipments Routed by Transportation Officers (TOs) or GSA

> Submit requests for tracing of less than load shipments routed by TOs
> via rail freight, motor freight, freight forwarder, or domestic air
> carriers or via coastal or intercoastal vessels to the origin carrier;
> include the following information:

A.  Date of shipment.

B.  Shipper.

C.  Origin.

D.  Consignee.

E.  Destination.

F.  Description of commodity shipped.

G.  Initial carrier.

H.  Carrier\'s waybill or freight bill number, if known.

I.  Bill of lading number.

J.  Number and type of packages in shipment.

K.  Weight of shipment.

> []{#__RefHeading___Toc159986139 .anchor}**103-40.1304-3 Shipments From
> Outside the United States or From Points in the United States to
> Overseas Destinations**
>
> Requests for the tracing of shipments to locations outside the United
> States or from the United States to destinations overseas must be
> handled per subpart 103-40.1305.

### 103-40.1305 Procedure for Expediting

When an expedited shipping service is required, the OPDIV transportation
officer will place a request with the origin carrier involved. Requests
for expediting will include the information listed in subpart
103-40.1305, as appropriate.

[]{#__RefHeading___Toc159986141 .anchor}**[SUBPART 103-40.14 LOSS OR
DAMAGE\
]{.underline}\
****103-40.1401 Loss and Damage Prevention**

Transportation Officers (TOs) are responsible for assuring:

A.  The adequacy of shipping and receiving procedures.

B.  Use of containers that are properly constructed and suitable for the
    intended service.

C.  Compliance with applicable loading, blocking, and bracing
    requirements.

D.  Compliance with Federal Property Management Regulations (Subpart
    101-40.7), Reporting and Adjusting Discrepancies in Government
    Shipments.

E.  The preparation and distribution of Standard Form 361,
    Transportation Discrepancy Report TDR. When SF-361 is used as a
    notification to the carrier, the statement \"Copies of this report
    will not be furnished to carrier\" in block 15 will be deleted by
    using pen and ink.

F.  Familiarity with and adequate training in loss and damage prevention
    procedures and techniques. For personnel handling the transportation
    of commodities.

G.  Determination of causes of loss and damage and initiation of
    preventive measures.

H.  Detection and resolution of loss or damage incident to shipment.

I.  Proper documentation and reporting of over, short, astray, or
    damaged freight and other discrepancies as prescribed in
    regulations.

### 103-40.1402 Survey of Carrier\'s Facilities for Astray Freight

In order to locate astray freight, TOs will be available to visit the
carrier\'s local terminals or warehouse for the purpose of locating
astray HHS and other Government freight. The procedures outlined in
Reporting of Transportation Discrepancies in Shipments, or 41 CFR
101-40.7 will be followed.

When it is apparent that an astray shipment is Government property, the
TO will develop and furnish appropriate forwarding instructions to the
carrier. If only shipper\'s identifying marks are available, the TO will
contact the shipper to determine the identity of the consignee,
destination, and applicable bill of lading reference. Containers without
marks, which are presumed to be Government property, may be opened and
examined with the prior approval and the presence of the carrier\'s
authorized representative. Such container may hold packing lists or
other evidence to facilitate identification. When there\'s not
sufficient information available to enable immediate disposition or
reconciliation of astray freight located in carrier\'s terminals,
procedures in subpart 103-40.1305 regarding preparation of a
Transportation Discrepancy Report (TDR) will be followed. 

### 103-40.1403 Delivering Astray Freight to Local TOs

Pending determination of final disposition, a carrier may give
possession of astray freight, identified as Government property, to the
local TO. In such cases, a receipt will be given to the carrier and TDR
procedures will be followed. If the freight is subsequently returned to
the carrier for forwarding to the correct destination, cancellation of
the receipt previously given will be arranged. When astray freight is
not returned to the carrier for onward movement to destination and local
disposition is made of the freight, the carrier and all interested
persons will be advised of such disposition.

[]{#__RefHeading___Toc159986144 .anchor}**103-40.1404 Processing of
Overages, Shortages, and Damages**

A careful examination and count of all containers or pieces in each
shipment delivered by commercial carriers will be made by the receiving
activity to determine whether overage, shortage, or damage exists. The
receipt of shipments with shortage or damage may result in the
initiation of freight claims against the commercial carrier transporting
the shipment. An overage results from either overshipment or because of
a diversion of freight originally intended for another consignee.

When an overage, shortage, or damage exists in connection with a
shipment, the receiving unit will follow the procedures outlined in this
subpart and in the TDR procedures.

The instructions in this section will supplement those in Reporting of
Transportation Discrepancies in Shipments on the preparation and
distribution of the TDR. These procedures apply to all overages,
shortages, or damages whether determined immediately upon delivery of
the shipment or when supplies are unpacked (concealed loss or damage) at
some later date. However, accomplishment of bills of lading will be
based on piece count and apparent condition of material at the time of
receipt and will not be delayed pending inspection of material for
concealed damage.

### 103-40.1405 Checking Shipments Upon Delivery

Receiving units will check the consignee\'s copy of the bill of lading
against a tally of the shipment delivered by the carrier to determine
that the cargo described on the bill of lading has been delivered and
the service rendered by the carrier fulfills the requirements of the
bill of lading. Copies of applicable tally sheets or carrier delivery
documents will be filed with a copy of the bill of lading to provide a
complete record of shipment receipt. Receiving units will maintain
adequate suspense file copies of bill of lading to identify shipments
that have not arrived within 30 days after receipt of the bills of
lading.

A careful examination and count of all containers in each shipment
received from a commercial carrier will be made by the receiving unit to
determine whether overages, shortages, or damages exist at time of
receipt. Each billed item will be checked from the carrier\'s equipment
to observe any apparent shortage in or damage to the lading. The
checking must proceed concurrently with the unloading. The entire
contents of the carrier\'s equipment will not be unloaded and the items
then checked. As such, a check would create a questionable area in
making recovery from the carrier in the event of a discrepancy. At the
time the check is performed, a suitable record will be made of the count
and condition of the items on a copy of the bill of lading or other
approved form which will identify the shipment, carrier\'s equipment,
date, time, and the checker\'s name. This document will be filed as, or
with, the \"Property Received\" copy of the bill of lading.

[]{#__RefHeading___Toc159986146 .anchor}**103-40.1406 Inspection of
Lading When Damages Exist**

Any damage, shortage, or loss not of a concealed nature will be noted on
the carrier\'s delivery receipt, signed by the TO, transportation agent,
or other qualified person, and acknowledged by the signature of the
carrier\'s representative. Such notations will be of a specific nature.
Also, these notations will be made on the consignee\'s copy of
carrier\'s delivery receipt. Under no circumstances will qualified
statements or notations such as \"Subject to count and inspection\" be
made on the carrier\'s delivery receipt. This requirement is equally
applicable to any shipping or receiving document, whether or not
irregularities exist.

When damages are discovered in a shipment received from a carrier, the
entire lading will be examined immediately. The nearest office of the
delivering carrier will be advised immediately, by telephone if located
within the vicinity, and requested to inspect the lading. This advice
will be confirmed in writing by mailing a TDR to the office contacted.
The carrier\'s inspector will be given a reasonable opportunity, not to
exceed 7 calendar days, from the time the first notice is given to make
an inspection. The carrier\'s representative may elect to waive the
inspection. In this event, a TDR also will be furnished to the
carrier\'s representative for signature to confirm his waiver. In either
case, the signed copy will be made a part of the claim file.

Damaged Packages To Be Opened in Presence of Inspector. Damaged packages
should not be opened until the carrier\'s inspector arrives, unless
there is a definite possibility that damage to the material can be
reduced by prompt unpacking. If unpacked under these conditions, the
packing material is to be preserved for examination by the carrier\'s
inspector.

If the carrier waives inspection of the damaged articles, unpacking may
be done immediately. A signed TDR, or statement, will be obtained from
the representative of the carrier verifying his waiver. When the
carrier\'s representative makes out his inspection report, a copy will
be obtained and retained with the \"Property received\" copy of the bill
of lading. Receiving OPDIV personnel will not indicate, in writing,
concurrence or non-concurrence in inspection reports prepared by carrier
agents. These inspectors are generally independent agents working for
the carrier industry.

When the carrier assumes responsibility for the loss or damage upon
inspection, a statement to that effect properly certified by the
carrier\'s agent will be obtained if possible. If such a statement is
obtained, it will be filed as supporting evidence to the claim file or
survey action initiated via the TDR.

When apparent damage or other conditions exist that may result in
concealed loss or damage, photographs will be taken before unloading
operations are permitted to continue. Ensure that a camera, preferably
an instant-type print, is readily available.

### 103-40.1407 Annotation of Carrier\'s Delivery Receipt

Before signing the carrier\'s delivery receipt, the person receiving the
shipment will note on the receipt specific details regarding the nature
and extent of all apparent overages, shortages, losses, and other
discrepancies between the quantity and condition of the property as
received and as shown on the covering bill of lading or other
transportation document.

Any notation placed on the carrier\'s delivery receipt will also be
shown on the consignee\'s copy of the delivery receipt or freight bill.
The person receiving the shipment will sign and date these notations and
request the carrier\'s driver or representative also to sign the
notations. No qualified statements or notations such as \"Subject to
count and inspection\" will be made on the carrier\'s delivery receipt.
This requirement is applicable to statements or notations on any
shipping or receiving document, whether or not irregularities exist.

### 103-40.1408 Instructions to Receiving Personnel

Once a delivery receipt is signed \"clean\" (without any exceptions),
it\'s almost impossible to recover any money for damages the carrier may
have caused. Well informed receiving personnel are the first line of
defense in protecting the interests of the Government. Therefore, TOs
will draw up appropriate instructions for receiving personnel and
conduct training, as needed.

### 103-40.1409 Shortage of Classified or Protected Material

When a shipment of classified or sensitive material is short upon
receipt, the individual discovering the loss, or compromise, will report
the facts immediately to the most readily available office. The OPDIV
receiving the report will take immediate action as required by the HHS
Security Manual.

Regulated materials are materials over which the proper authority
exercises close supervision of distribution, issue, and use because they
are scarce, costly, or of a highly technical, hazardous, or sensitive
nature. When a shipment containing protected material is short upon
receipt, a report of the shortage will be made by the TO. Included in
this category are money, narcotics, articles difficult to replace,
weapons, ammunition, and other similar material. See the general
definition of protected cargo in the glossary.

### 103-40.1410 Receipt of Supplies Damaged in Transit

The responsibility of the Government to accept delivery of a shipment on
which damage has occurred while in transit is apart from the right to
reject material because of nonconformance with the provisions of the
contract. When a shipment is damaged while in transit, the consignee
will accept delivery from the carrier unless the property has been
damaged beyond economical repair. Contractual terms which place risk of
loss or damage on the contractor while the shipment is in transit (for
example, Free on Board (F.O.B Destination) do not relieve the Government
of responsibility to accept the shipment. The F.O.B. and acceptance
terms of the procurement contract will determine the procedures under
which claims against the carrier will be settled. When loss or damage
does occur, the TO or his representative will annotate the carrier
delivery receipt as outlined in subpart 103-40.1407.

### 103-40.1411 Accounting for Transportation on Account of the Government

Under no circumstances will freight be refused and returned to the
carrier except as outlined in subpart (C) below. When a carrier offers
delivery of supplies which have been damaged in transit and the shipment
has been made under a bill of lading, or transportation charges are for
account of the Government, TOs should determine, if possible, whether or
not the supplies have been damaged beyond economical repair.

Where damaged property can be repaired economically and satisfactorily,
arrangements shall be made by the unit paying the transportation
charges, or its authorized representative, to have the repairs made.
This amount will be part of any claim against the carrier thereof.
Alternatively, the carrier may be allowed to perform the repairs or make
the necessary arrangements therefor, subject to inspection and
acceptance by Government OPDIV inspectors or other designated personnel.

Property may be rejected to the carrier and a claim can be made. If the
supplies have been damaged beyond economical repair, TOs will refuse to
accept delivery from the carrier. When the extent of the damage cannot
be ascertained until after delivery of the supplies, the material will
be accepted.

When it\'s been determined that property has been damaged to the extent
that it has no salvage value or is not economically repairable, and that
it can be abandoned, the carrier shall be notified promptly of the
location of the rejected property and shall be requested to make
appropriate disposition of it.

If the carrier refused to accept the rejected property, the TO shall
request, in writing, that the carrier furnish a written statement of the
reason for refusing the property. Upon receipt of the written refusal,
the unit shall take appropriate action to dispose of the property and
treat it as abandoned.

If the carrier fails to make appropriate disposition of the rejected
property within a reasonable length of time, the TO shall notify the
carrier, in writing, that the property will be disposed of by the OPDIV
without further delay.

### 103-40.1412 Transportation for Account of the Supplier

When goods are purchased "F.O.B. destination\" under a contract, title
does not pass from the contractor to the Government until the supplies
are accepted at destination by the Government. Under such circumstances,
contractors ship under prepaid commercial bills of lading and the
carrier acts as an agent for the contractor. Any discrepancies are
resolved between the carrier and the supplier. In such instances, the
receiving location shall make accurate notations of discrepancies on the
carrier\'s delivery receipt or freight bill. The carrier\'s driver or
representative shall be requested to sign the notations of
discrepancies. Prompt notification on the SF 361 shall be furnished to
the supplier and the contracting officer. The report shall include
supporting documents; e.g., a copy of the annotated delivery receipt,
photos, inspection report, or written waiver.

Purchase documents requiring contractors to deliver supplies "F.O.B.
origin\" generally provide that shipment will be made under a bill of
lading. Title passes to the Government as soon as the carrier accepts
the shipment at the supplier\'s premises. On occasion, however, it is
desirable or necessary to purchase material F.O.B. supplier\'s plant and
have it shipped at supplier\'s expense subject to reimbursement by HHS.
This is basically transportation for account of the Government and, when
supplies are damaged in transit, instructions provided in this subpart
pertaining to receipt of damaged material will apply.

### 103-40.1413 Seal Record

On carload, truckload, or sea van shipments (sea vans are defined as
Government or commercial owned or leased shipping containers), the
notation of shortage or damage will indicate whether the original seals
were intact upon arrival of the shipment or whether seals were missing,
broken, tampered with, or substituted. Seal numbers other than those
applied at point of origin will also be recorded. When there is doubt as
to the numbers of the original seals applied at point of origin, the TO
will contact the shipper for this information.

When a sealed carload, truckload, or container arrives at destination
with original seals intact but with a shortage, such original seals will
be evidence that the shortage is not the responsibility of the carrier
in the absence of evidence to the contrary.

When a sealed carload, truckload, or container arrives at destination
with original seals missing, broken, tampered with, or substituted, the
fact that seals are not intact may be considered as evidence that the
shortage or damage is the responsibility of the carrier, in the absence
of evidence to the contrary.

### 103-40.1414 Clearance When Shipper Acknowledges Responsibility

When a shortage notation has been made on the delivery receipt and the
issuing officer or shipper acknowledges his responsibility for the
discrepancy, the office responsible for payment of the transportation
charges (generally the Finance Office) will be notified. A copy of this
notification will be given to the delivering carrier.

### 103-40.1415 Clearance When Property Checked Short Is Received Later

When a shortage notation has been made on the delivery receipt and the
property checked short is received later, the consignee will notify the
office responsible for processing freight claims. A copy of the
notification will be given to the delivering carrier.

[]{#__RefHeading___Toc159986156 .anchor}**103-40.1416 Loss of Entire
Shipment**

If no part of a shipment is received at destination within 30 days after
receipt of the advance (blue) copy of the bill of lading, the origin
carrier or his agent will be informed that the shipment hasn\'t been
received and a claim may be processed against the carrier. A letter will
be issued to notify the origin carrier or agent of the planned claim
action. A copy of this letter will be forwarded, along with any other
pertinent correspondence or information in connection with the
investigation of the loss, to the paying office (generally the Finance
Office) responsible for payment of the transportation charges. A TDR
will be initiated as prescribed in Reporting of Transportation
Discrepancies in Shipments and forwarded as the covering document for
the claim file. If the consignee has authoritative information from the
carrier or other sources that the shipment will not be delivered, the
30-day waiting period may be waived and the TDR will be issued
immediately.

[]{#__RefHeading___Toc159986157 .anchor}**103-40.1417 Disposition of
Overages**

When the number of packages offered for delivery is more than that shown
on the applicable bill of lading or other transportation document, and
when all packages are marked for the same consignee, the overages will
be accepted. The TO will attempt to reconcile overages and astray
freight with corresponding shortages associated with other shipments
received at the facility.

If excess freight on one bill of lading is identical with a reported
shortage on another bill of lading, the excess or overage will be used
to offset the reported shortage. If excess freight cannot be identified
or used to offset other shortages within seven calendar days after the
date of discovery, the receiving office will use an SF 361 to request
disposition instructions from the consignor or shipper.

If a carrier attempts to deliver a shipment containing packages which
are marked for another consignee or which cannot be identified, the
misdirected or astray packages will not be accepted.

When there is an overage because of an actual over shipment and the
weight of the overage isn\'t included in the weight shown on the bill of
lading, a letter will be sent to the local agent of the delivering
carrier and a copy forwarded to the office responsible for the payment
of transportation charges.

A \"concealed loss\" means a loss that is not evident at the time of
delivery but is discovered by the consignee upon opening the package and
checking its contents.

"Concealed damage\" means damage to the contents of a package which is
not evident at the time of delivery by the carrier but which is later
discovered by the consignee upon unpacking.

### 103-40.1418 Notice to Carriers

When loss, damage, or shortage that was not apparent at the time of
delivery for domestic shipments is subsequently discovered and the total
amount of loss, damage, or shortage, including unearned freight charges,
on a single bill of lading or other transportation document, is known to
exceed \$500, the delivering carrier will be notified by telephone and
requested to inspect the property involved. Unless there are extenuating
circumstances, the notification and request for inspection will be made
by telephone no later than 15 calendar days from the date of receipt of
shipment and confirmed on an SF 361. The SF 361 will include the date
the telephone request for inspection was made and the name of the
carrier\'s representative who was contacted. A copy of the notification
and request for inspection will be retained for possible claim purposes.
Wrappings, packing materials, and any unopened packages shall be
retained for the carrier\'s inspection. A copy of the carrier\'s
inspection report shall be requested for use in determining liability or
preparing a claim. If the carrier fails to make an inspection within a
reasonable time (usually 5 workdays after notification), or if the
carrier waives the opportunity to perform an inspection, the carrier
shall furnish an oral or written waiver as provided in SF 361.

When a loss, damage, or shortage on an international shipment that
wasn\'t apparent at the time of removal of the property from the
carrier\'s possession is subsequently discovered when the packages are
opened, the carrier will be notified promptly in writing through use of
an SF 361. When an ocean carrier is involved, the written complaint will
be given to the carrier or its agent at the port of discharge within 3
calendar days of delivery. When an international air carrier is
involved, a written complaint to the carrier will be made within 14
calendar days of receipt of the property. Written notice to ocean and
international air carriers shall indicate a reasonable period of time
for inspecting concealed loss or damage.

### 103-40.1419 Determined Freight Claims

All shipping and receiving units will minimize freight claim losses to
the Government through the proper documentation of freight claims. The
documentation of a freight claim includes complete investigation of a
transportation exception or discrepancy, the determination of the cause
or responsibility for such exception or discrepancy and the preparation
and distribution of the documentary evidence proving or disproving
carrier, contractor, or HHS liability. As these functions are of a
technical nature, they will be performed by the TO, freight claims
analyst, or any other qualified transportation personnel at each unit.
Specifically, the investigation of a freight claim will include the
determination of the following factors:

A.  Whether any basis for a freight claim exists.

B.  Responsibility for processing the freight claim against the carrier.

C.  Responsibility for the act that resulted in the shortage or damaged
    condition of the freight.

[]{#__RefHeading___Toc159986160 .anchor}**103-40.1420 Responsibility for
Initiation of Claims Against Ocean Carriers for Loss or Damage**

For HHS shipments moving via the Defense Transportation System (DTS),
the Military Sea Lift Command (MSC) is responsible for initiating claims
against water carriers for loss or damage in transit.

[]{#__RefHeading___Toc159986161 .anchor}**103-40.1421 Responsibility for
the Initiation of Claims Against Commercial Land or Air Carriers for
Loss or Damage**

The responsibility of transportation personnel for initiating a claim
against the carrier ordinarily will depend upon whether or not the
material was the property of the Government when the loss or damage in
transit occurred. Generally, all material moving from one HHS location
to another is Government property, unless there is specific evidence to
the contrary.

### 103-40.1422 Purchase Order Material

When goods are procured under contract, they become the property of the
Government upon delivery to the Government at the delivery point
designated in the contract, without regard to whether the material is
shipped under a bill of lading. Contract clauses relating to inspection
and acceptance of material and the payment of freight charges generally
do not determine when the title passes to the Government or whether the
Government or the contractor is responsible for making a claim against
the carrier for loss or damage.

### 103-40.1423 Repair of Damaged Articles

### 

### 103-40.1424 Parcel Post Shipments Lost or Damaged

When a parcel post shipment is lost or damaged, recovery of the monetary
value from the United States Postal Service by a Government agency can
be made only when the material was mailed under registered or insured
mail services.

The term \"repair\" is the process of replacing component parts or
restoring a used, damaged, or deteriorated article to a ready for issue
condition. An article repaired is the same for operating purposes as the
article before repair was needed. Through repair, a used, damaged, or
deteriorated article may be restored to the same degree of value as a
corresponding new item, or to a lesser degree of value than a
corresponding new item.

Upon receipt of Government-owned material damaged in transit by
commercial carrier, the carrier will be notified and an inspection
requested. Upon completion of the inspection of the damage by the
carrier (unless waived), minor repairs will be made using the facilities
of the receiving organization, when practicable. If the damage is
extensive and the cost of repairs will be large, the carrier will be
consulted before proceeding with the repairs. The cost of the repairs
with appropriate accounting data will be included in the TDR issued as a
report of survey and forwarded to the claims office.

When it is impracticable or uneconomical to utilize HHS facilities, the
receiving organization will arrange with the carrier to have the
necessary repairs made by commercial concerns with payment for the
repairs made directly by the carrier. Upon completion of satisfactory
repairs, the TO will advise the claims office by letter that the repairs
are satisfactory and will authorize the cancellation of the TDR. A copy
of such letter will be sent to the carrier agreeing to pay for the
repairs.

Statements in contracts or purchase orders such as \"Subject to
inspection and acceptance at destination\" or \"Subject to inspection at
origin and acceptance at destination\" do not affect the claim filing
responsibility as indicated above except when the material fails to
conform to contract specifications.

### 103-40.1425 Parcel Post Shipments by Other Government Agencies and F.O.B. Origin Shipments From Contractor

Recovery of the monetary loss or damage of Government-owned material is
not possible if it was not mailed under registered or insured mail
service. HHS must absorb the loss or damage through Board of Survey
action prescribed in the LMM. Report of Survey will be initiated by the
consignee to cover such discrepancies. When an undelivered parcel post
shipment is \$10 or more and is not registered or insured, the consignee
will request the shipping activity to file a tracer inquiry for the Loss
or Rifling of Mail Matter (PS Form 1510) with the local post office.

Claims for recovery of the monetary value of material when loss or
damage is incident to movement by parcel post is a matter for the
adjustment between the contractor and the United States Postal Service.
When material forwarded by contractors via parcel post is received in a
damaged condition, the receiving activity will prepare a TDR (Standard
Form 361) and will mail it to the contractor. Non-receipt of an entire
shipment will be reported to the contractor as soon as practical. Copies
of the SF 361 and any official correspondence regarding the loss or
damage which is addressed to the contractor will be furnished to the
contracting officer and, when appropriate, to the cognizant inventory
control point.

[]{#__RefHeading___Toc159986166 .anchor}**103-40.1426 Loss or Damage in
Excess of Transportation Charges**

When a shipment received is damaged to the extent that it is a total
loss or when the amount of loss or damage will exceed the transportation
charges and the carrier is held responsible for such loss or damage, the
paying office will be notified promptly by letter making reference to
the bill of lading number.

### 103-40.1427 Documentation of Freight Claims

The courts have repeatedly held that all pertinent claims documentation
must be generated in the ordinary course of business. This means that
all documents and records in support of a freight claim must be
generated by someone with a personal knowledge of the facts at the time
the loss or damage is discovered. This principle will be followed in
preparing the various documents required to support loss and damage
claims against the carrier or the contractor. The form of documentation
required can be determined only after the responsibility for the
initiation of claim action has been conclusively established.

[]{#__RefHeading___Toc159986168 .anchor}**103-40.1428 Concealed Loss and
Damage Documentation**

When a shipment has been delivered by a carrier in apparent good order
and concealed loss or damage is discovered, a TDR will be prepared. To
prepare a claim for concealed loss or damage, the carrier\'s inspection
report, if obtainable, will be furnished to the claims office to support
the assembled claim file.

Upon completion of the inspection by the carrier\'s representative, the
authorized transportation personnel at the receiving unit will sign the
carrier\'s inspection report and obtain a copy, if possible, for
retention.

The authorized transportation personnel at the receiving unit will
prepare the Standard Form for the Handling of Concealed Loss and
Concealed Damage Claims - Consignee\'s Form, or will furnish pertinent
information in a letter. The form may be obtained in most areas from the
delivering carrier.

[]{#__RefHeading___Toc159986169 .anchor}**103-40.1429 Shipper\'s
Concealed Loss and Damage Form**

When HHS is responsible for filing a claim against the carrier, the
shipper will be requested to furnish a properly executed Standard Form
for the Handling of Concealed Loss and Concealed Damage Claims -
Shipper\'s Form to the receiving activity. Origin carrier\'s local agent
will, upon request, furnish blank copies of the required form.

### 103-40.1430 When Contractor or Vendor Is Responsible for Filing Claim Against Carrier

When it\'s been determined that the contractor or vendor is responsible
for filing a claim against a carrier for loss of or damage to material,
the following will apply:

A.  The contractor or vendor will be advised of the loss, damage, or
    unsatisfactory condition of the shipment by the most expeditious
    means required so a claim may be filed promptly. Information as to
    the quantity and value of the material short, damaged, or in an
    unsatisfactory condition will be furnished with request for
    disposition instructions for the unsatisfactory material. Telephonic
    advice will be confirmed in writing within 24 hours. Copies of such
    communications will be forwarded to the contracting officer, the
    disbursing office designated in the contract, and, if applicable,
    the Finance Office.

B.  When purchase documents provide for inspection and acceptance of
    supplies at destination and inspection discloses damage in transit,
    repair of the damaged property may be effected at the expense of the
    contractor only upon their prior authorization. Normally, repairs
    will be made by the contractor or their designated agent. However,
    under unusual circumstances, the facilities of the receiving
    organization may be utilized to effect repairs. Under such
    circumstances, an itemized estimate of the cost of repairs,
    including material or replacement parts, labor, overhead, plus
    surcharge when applicable, will be submitted for the contractor\'s
    approval and authorization to effect repairs. If, after receipt of
    the advice, the contractor requests that such supplies be returned
    to him or his agent for repair or replacement, the articles will be
    returned under a commercial bill of lading with all transportation
    charges collected. An itemized list of articles tendered to the
    carrier for transportation will be included in the commercial bill
    of lading. A copy of the bill of lading receipted by the carrier
    will be filed with the related purchase document.

### 103-40.1431 Supporting Claim Documents

The contractor or vendor will be furnished with all information
necessary for him to determine whether a claim against the carrier is in
order. However, internal forms, such as the Report of Discrepancy (ROD),
SF 364; Transportation Discrepancy Report (TDR), SF 361; and classified
information or documents, will not be furnished. When concealed loss or
damage is involved, a copy of the carrier\'s inspection report and the
consignee\'s form for concealed loss or damage will be forwarded to the
contractor or vendor.

[]{#__RefHeading___Toc159986172 .anchor}**103-40.1432 Transportation
Discrepancy Report (SF 361)**

An SF 361 will be prepared immediately when loss or damage to
Government-owned material is reported to or observed by the TO if the
value of such loss or damage is \$50 or more and the shipment was by a
commercial or contract carrier and was moved on:

A.  A Commercial Bill of Lading (CBL)

B.  Government-owned aircraft, ship or contract charter.

An SF 361 will not be prepared when:

A.  The value of the loss or damage is less than \$50 per bill of
    lading.

B.  The loss or damage occurred while the shipment was in the possession
    of a Government installation or a Government transhipping point.

C.  The loss or damage concerns merchandise or material procured with
    non-appropriated funds.

The original and seven copies of the SF 361 will be required for the
minimum distribution prescribed in TDRs. Additional copies may be
required by OPDIV regulations of the receiving unit.

The captions on the SF 361 are designed to be self-explanatory. Detailed
preparation instructions are contained in Reporting of Transportation
Discrepancies in Shipments.

All correspondence, documents, photographs, and other data which will
aid in establishing liability for the loss or damage or which are
considered pertinent to the case will be sent to the claims office. 

## SUBPART 103-40.15 BILLS OF LADING

### 103-40.1501 Bill of Lading Format

On April 1, 2002, the General Services Administration ceased using the
U. S. Government Bill of Lading (GBL) (SF 1103) for domestic freight and
household goods shipments.  Commercial bills of lading will be used for
all domestic shipments.

The GBL will continue to be used for international shipments only.

For HHS programs, e.g. transportation offices with an existing supply of
GSA-issued Government Bills of Lading will use the following procedure:

A.  For domestic shipments, use the Bill of Lading (GBL) number to
    prepare a transportation service order (TSO) and then destroy the
    GBL to ensure that the  number is not used again. This is inserted
    on the top of the TSO and serves as the unique identifier for
    freight shipments.  Samples of the TSO can be obtained from the GSA
    Region 6 website.

B.  Forward a copy of the TSO to the carrier who will then issue a
    commercial bill of lading.

C.  Forward a copy of the TSO and commercial bill of lading to the
    appropriate finance office for payment.

**Note:**  In lieu of preparing a hard copy TSO, the GSA Office of
Government-wide Policy, Transportation Policy Division, is promoting the
use of the Transportation Service Provider (TSP) website as an agency
order entry system.

Each OPDIV program/transportation office will establish its own
numbering system based on the following format:

Acronym for Department of Health and Human Services, followed by the
acronym for the Operating Division, followed by the acronym for the
office component, followed by the fiscal year, and ending with a four
digit number starting with 0001. For example, the first order number
assigned by the Division of Property Management in the Program Support
Center in Fiscal Year 2002 would appear as HHS/PSC/DPM 02-0001. This
numbering scheme will be used once the existing supply of GSA-issued
GBLs has been exhausted. This number will be inserted on the
transportation service order to provide a unique identifier to the
carrier, finance office and for transportation audits.

The above numbering format has been submitted by the Office of Logistics
Policy/ HHS to the General Services Administration as the official HHS
numbering scheme in accordance with 41 CFR 102-117.

Refer to LMM 103-40.1508 to determine the other information required on
the transportation order.

The bill of lading is an Accountable Form. Each OPDIV
program/transportation office authorized to issue bills of lading will
keep proper records of bills of lading received and issued. This is for
the purpose for controlling stocks and fixing accountability with the
personnel responsible for the issuance and use of bills of lading. SF
1121 (Bill of Lading Accountability Record) is the form for maintaining
accountability. Refer to LMM 103-40.1502.

## SUBPART 103-40.16 RELOCATION OF ACTIVITY

### 103-40.1601 General Policy

When the relocation of an office, or organizational component requires
the movement of Government property, there are basically two options.
The OPDIV may, on its own behalf, enter into an office relocation
contract. Or it may request that the appropriate General Services
Administration (GSA) Regional Office enter into contracts on behalf of
the organization. For local moves, if GSA help is requested, contact the
Regional Office at least 120 calendar days before the proposed date of
the move. Provide the GSA office information such as origin,
destination, moving date, an itemized inventory of the property to be
moved, and the name and telephone number of the relocation coordinator:

Local Moves. Since local moves qualify as transportation within
"commercial zones or terminal areas,\" they are exempted from rate
regulation by the Interstate Commerce Commission. Therefore, local
office relocation moves must be acquired by contract. The Service
Contract Act applies to local office relocation moves where
transportation costs (such as packing, crating, handling, loading,
and/or storage of goods prior to or following line-haul transportation)
are incidental to the principal purpose of the contract. (See 29 CFR
4.118.)

Other Than Local Moves. Arrangements for moving services, other than
local office relocation, will be contracted for using competitive
procedures or other appropriate relocation arrangements including 49 USC
10721 Government tenders.

Information Required. Whether an office relocation is made under a GSA
term moving contract or under a specific contract entered into by GSA on
behalf of an individual component, the component being relocated will
make arrangements directly with the moving contractor. These
arrangements include:

A.  Issuing the purchase order or placing the work order.

B.  Arranging for direct billing.

C.  Supervising the actual move.

D.  Processing loss and damage claims, if any.

E.  Providing certification on the contractor\'s invoices.

F.  Processing the invoice for direct payment to the contractor.

The GSA contracting office shall be notified upon completion of the
relocation. Their office is prepared to provide technical assistance as
necessary.

### 103-40.1602 Methods of Movement

The following types of services may be used when relocating an activity:

A.  When transportation is performed by common carriers of general
    commodities, only line-haul common carrier services and services
    covered by tariffs or tenders will be performed. A bill of lading
    will be issued to cover these type services. Accessorial services
    such as packing, crating, and positioning of property on Government
    premises are usually covered by a separate contract.

B.  When relocation movements are to be performed by contract carriers,
    only those carriers who have executed a contract with GSA for
    interstate carriage or those carriers who have been approved by GSA
    for intrastate carriage will be used. Bills of lading will be issued
    to cover transportation services only.

C.  When movement is by motor van carrier, accessorial services
    necessary for the entire movement and placement at destination are
    generally covered by carrier tariffs or tenders. A bill of lading
    will be issued to cover all services for which charges are published
    in carrier tariffs or tenders. Services for which charges are not
    covered by tariffs or tenders will be procured by a separate
    contract.

### 103-40.1603 A Package-Type Movement Procured by Contract

Under a package-type movement, a contract is executed between a shipper
service contracting officer and a party or firm (hereafter referred to
as \"contractor\") engaged in the movement of office facilities or
industrial plants. The contractor agrees to procure or provide
transportation service from origin to destination and performs or
procures all services required to complete a movement from the premises
at origin to placement on the premises at destination. The contractor:

A.  Selects a carrier to perform the transportation service (when
    necessary).

B.  Issues commercial bills of lading.

C.  Pays the transportation charges.

D.  Performs all other services incident to the movement.

[]{#__RefHeading___Toc159986179 .anchor}**103-40.1604 Special Note**

Bills of lading will not be issued to procure any portion of a
package-type movement. Package-type movements will not be routed by GSA
since the contractor selects the carriers and pays the transportation
charges.

# PART 103-41 \-- TRANSPORTATION PAYMENT AND AUDIT 

### 103-118.5 PURPOSE

The purpose of this part is to interpret statutes and other policies
that assure that payment and payment mechanisms for agency
transportation services are uniform and appropriate. This part
communicates the policies clearly to agencies and transportation service
providers (TSPs).

## SUBPART 103-118 \-- ORDERING AND PAYING FOR TRANSPORTATION AND TRANSPORTATION SERVICES 

### 103-118.40 Ordering transportation and transportation services

### 103-118.45 TSP Billing

The manner in which your agency orders transportation and transportation
services determines the manner in which a TSP bills for service.

### 103-118.50 Payment for transportation services

HHS may pay for transportation services in three ways: Electronic funds
transfer (EFT) (31 U.S.C. 3332, et seq.), check, or cash.

### 103-118.60 use of electronic commerce

HHS must use electronic commerce in all areas of its transportation
program. This includes the use of electronic systems and forms for
ordering, receiving bills and paying for transportation and
transportation services.

### 103-118.85 use of government contractor issued charge cards

HHS may use a Government contractor issued charge card to purchase
transportation services if permitted under the charge card contract or
task order.

### **103-118.92 Receipts, TICKETS OR OTHER RECORDS OF CASH PAYMENTS**

See FMR.

### 103-118.140 major mandatory terms and conditions governing the use of GBLs and bilLs of lading

Refer to "U.S. Government Freight Transportation---Handbook".

### 103-118.150 major mandatory terms and conditions governing the use of passenger transportation documents

Refer to "U.S. Government Freight Transportation---Handbook".

### 103-118.175 GBL and GTR retirement 

Effective September 30, 2001, use of Standard Form (SF) 1103, Government
Bill of Lading, and OF 1203, Privately Owned Personal Property
Government Bill of Lading (PPGBL) shall be phased out for domestic
shipments. Effective September 30, 2001, the GBL or PPGBL may be used
solely for international shipments (including domestic overseas
shipments).

The GTR shall only be used in situations that do not lend themselves to
the use of commercial payment methods.

##### ***103-118.185 Referencing contracts when making purchases*** 

The applicable contract or tender shall be referenced when buying
transportation on a bill of lading. However, the referenced information
on a bill of lading does not limit an audit of charges. The applicable
contract must be referenced on a GTR or passenger transportation
document (e.g., ticket).

### 103-118.195 transportation service provider (TSP) processes and responsibilities

See FMR for responsibilities.

### 103-118.225 final receipt of shipment 

Final receipt of the shipment occurs when the consignee or a TSP acting
on behalf of the consignee with the agency's permission, fully signs and
dates both the delivering TSP's documents and the consignee's copy of
the same documents indicating delivery and/or explaining any delay,
loss, damage, or shrinkage of shipment.

### 103-118.230 creation or elimination of a field office approved to prepare transportation documents 

### 103-118.260 quotations, tenders, or contracts

### 103-118.265 prepayment audit

A prepayment audit is a review of a transportation service provider
(TSP) bill that occurs prior to your agency making payment to a TSP.
This review compares the charges on the bill against the charge
permitted under the contract, rate tender, or other agreement under
which the TSP provided the transportation and/or transportation related
services.

### 103-118.270 PRepayment audit program

##### ***103-118.350 responsibilities of certifying officers***

##### ***103-118.365 responsibilities of disbursing officers***

##### *The disbursing official has a liability for overpayments on all transportation bills subject to prepayment audit (31 U.S.C. 3322).* 

##### ***103-118.370 Relief of liability***

HHS counsel has the authority to relieve liability and give advance
opinions on liability issues to certifying, accountable, and disbursing
officers (31 U.S.C. 3527).

### 103-118.415 Use of postpayment audits

Mandatory use of prepayment audits will not eliminate postpayment
audits.

### 103-118.430 information required postpayment audit

All of transportation bills submitted for postpayment audit shall be
annotated.

### General Agency Information for All Claims 

### 103-118.450 TSP transportation claims

A TSP may file a transportation claim against your agency under
31 U.S.C. 3726 for certain items.

### 102-118.460 time limit to file a court claim with a TSP for freight charges, reparations, and loss or damage to the property

Statutory time limits vary depending on the mode and the service
involved and may involve freight charges.

### 103-118.465 interest payments

Interest penalties under the Prompt Payment Act, (31 U.S.C. 3901,
et seq.) are not required when payment is delayed because of a dispute
with a TSP.

Interest under the Prompt Payment Act (31 U.S.C. 3901, et seq.) begins
30 days after certification for payment by GSA.

### 103-118.470 statutory time limits for a TSP on filing a administrative claim

### 103-118.485 Time Limit to Issue a Decision on Disputed Claims

A ruling on a disputed claim shall be issued within 30 days of receipt
of the claim. If your agency fails to settle a dispute within 30 days,
the TSP may appeal. If the TSP disagrees with the administrative
settlement by the Audit Division, the TSP may appeal to the General
Services Board of Contract Appeals (GSBCA). Decisions made by the BSBCA
may not be appealed.

### 103-118.500 Voluntary Refunds by TSP

All voluntary refunds shall be reported to the GSA Audit Division (so
that no Notice of Overcharge or financial offset occurs), unless other
arrangements are made (e.g., charge card refunds, etc.).

### 103-118.510 GSA Form 7931, Certificate of Settlement  

Amounts on a GSA Form 7931 shall not be revised or altered. The only
change an agency can make to a GSA Form 7931 is to change the agency
financial data to a correct cite. Any GSA Form 7931 that cannot be paid
(e.g., an amount previously paid), must be immediately returned to the
GSA Audit Division with an explanation. A Certificate of Settlement is
the final administrative action.

### 103-118.520 Responsibilities and Authorities

### 102-118.530 unpaid TSP billings

GSA will instruct disbursing offices to deduct the amount due from an
unpaid TSP's bill. A 3-year limitation applies on the deduction of
overcharges from amounts due a TSP (31 U.S.C. 3726) and a 10-year
limitation applies on the deduction of ordinary debts (31 U.S.C. 3716).

### 103-118.535 TSP debt collection procedures

Principles governing collection procedures for reporting debts to the
General Accounting Office (GAO) or the Department of Justice are found
in 4 CFR parts 101 through 105 and in the GAO Policy and Procedures
Manual for Guidance of Federal Agencies.

### Transportation Service Provider (TSP) Filing Requirements 

### 103-118.545 tsp claim information

### 103-118.550 electronic filing for tsp cliams

The medium and precise format of data for an administrative claim filed
electronically must be approved in advance by the GSA Audit Division.
GSA will use an authenticating EDI signature to certify receipt of the
claim. The data on the claim must contain proof of the delivery of
goods, and an itemized bill reflecting the services provided, with the
lowest charges available for service. The TSP must be able to locate,
identify, and reproduce the records in readable form without loss of
clarity.

### 103-118.555 supplemental administrative tsp claims 

A TSP may file a supplemental administrative claim. Each supplemental
claim must cover charges relating to one paid transportation document.

### 103-118.560 required tsp claim format 

*A TSP must bill for charges claimed on a SF 1113, Public Voucher for
Transportation Charges, in the manner prescribed in the "U.S. Government
Freight Transportation---Handbook" or the "U.S. Government Passenger
Transportation---Handbook."*

### 103-118.565 required claim documentation 

An administrative claim must be accompanied by the transportation
document, payment record, reports and information available to GSA
and/or to the agency involved and the written and documentary records
submitted by the TSP. Oral presentations supplementing the written
record are not acceptable.

### Transportation Service Provider (TSP) and Agency Appeal Procedures for Postpayment Audits 

### 103-118.600 tsp appeal of notice of overcharge

*A TSP who disagrees with the Notice of Overcharge may submit a written
request for reconsideration to the GSA Audit Division.*

### 103-118.605 tsp appeal of Notice of Indebtedness 

If a TSP disagrees with an ordinary debt, as shown on a Notice of
Indebtedness, it may:

A.  Inspect and copy the agency's records related to the claim;

B.  Seek administrative review by the GSA Audit Division of the claim
    decision; and/or

C.  Enter a written agreement for the payment of the claims.

### 103-118.635 Interest on amounts due from tsp 

The Government can charge interest on an amount due from a TSP. This
procedure is provided for under the Debt Collection Act
(31 U.S.C. 3717), the Federal Claims Collection Standards
(4 CFR parts 101 through 105), and 41 CFR part 105-55.

### 103-118.645 tsp administrative claims on collection actions 

A TSP may file an administrative claim involving collection actions
resulting from the transportation audit performed by the GSA directly
with the GSA Audit Division.

### 102-118.650 reviews of settlement Actions

A TSP desiring a review of a settlement action taken by the
Administrator of General Services may request a review by the GSA Board
of Contract Appeals (GSBCA) or file a claim with the United States Court
of Federal Claims (28 U.S.C. 1491).

### 102-118.660 appeal of postpayment audit Decisions

A TSP may not appeal a postpayment audit decision fo the GSBCA. HHS also
may not appeal a postpayment audit decision and must follow the ruling
of the GSBCA.

### Transportation Service Provider (TSP) Non-Payment of a Claim 

### 103-118.670 tsp inability to pay debt 

#  

# **HHS Logistics Management Manual (LMM) Subchapter H**

# PART **103-42 UTILIZATION AND DISPOSAL OF HAZARDOUS MATERIALS AND CERTAIN** CATEGORIES OF PROPERTY

[]{#__RefHeading___Toc159986232 .anchor}**[SUBPART 103-42.1
RESERVED]{.underline}**\
\
**103-42.000 SCOPE**\
\
This part prescribes the special policies and procedures governing the
utilization, donation, sale, exchange, or other disposition of hazardous
materials, dangerous property, and other categories of property with
special utilization and disposal requirements. 

### 103-42.001 DEFINITIONS OF TERMS

Resource Conservation and Recovery Act (RCRA): In 1976 Congress enacted
RCRA to protect human health and the environment from improper solid and
hazardous waste management. It was amended in 1984 with the Hazardous
and Solid Waste Amendments (HSWA) to prohibit land disposal of hazardous
wastes. RCRA controls most hazardous chemical wastes through a manifest
and record-keeping system from the point the waste is generated to its
ultimate disposal. The EPA is charged with the duties of promulgating
and enforcing the RCRA regulations. These regulations are codified in
[Volume 40 of the
CFR](http://www.access.gpo.gov/cgi-bin/cfrassemble.cgi?title=200140).
For generators, Chapter I - Solid Wastes, Parts 240-271 are the most
pertinent sections to reference. Federal facilities are required to
comply with these regulations. EPA has established stiff penalties for
individuals who knowingly or unknowingly violate their regulations.

Additional definitions of hazardous terms will be found in the [FPMR at
101-42.001](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-42&SECTION=001&YEAR=1999&TYPE=TEXT).

### 103-42.003 HHS HAZARDOUS MATERIAL MANAGEMENT 

> []{#__RefHeading___Toc159986235 .anchor}**103-42.003-50 SCOPE**\
> \
> This subpart prescribes the policies and methods governing the
> management of HHS hazardous property, materials and waste.
>
> []{#__RefHeading___Toc159986236 .anchor}**103-42.003-50.1 POLICY\
> **\
> HHS Logistics personnel (i.e., Property, Supply, Transportation and
> Distribution activities) will comply with all applicable federal,
> state, and local environmental laws and regulations in the performance
> of their mission. HHS Personnel that handle (meaning to: deal with,
> act on, or dispose of) hazardous materials (meaning: property,
> equipment, commodities, etc.) will be proficient and responsible in
> operations that involve the handling, temporary storage,
> transportation, and disposal of hazardous property while insuring
> timely and cost effective action.\
> \
> **103-42.004-50 GENERAL**
>
> HHS components use and dispose of hazardous property in the daily
> routine of doing business. It is our responsibility to protect the
> safety of our personnel, the public, and the environment; therefore,
> each HHS component must insure that all laws and regulations
> concerning hazardous property are followed.
>
> Hazardous property includes materials, equipment containing certain
> materials, or Resource Conservation and Recovery Act (RCRA) hazardous
> wastes that have one or more dangerous characteristics, as established
> by EPA, DOT, OSHA, NRC, etc. Examples of characteristics that show a
> material may be hazardous are: flammable solid or liquid, e.g.,
> gasoline, kerosene, rubber cement; fatal or toxic if swallowed, e.g.,
> poisons; corrosive or burns the skin, e.g., acids, ammonia;
> etiological agents, e.g., the products of human blood; produces toxic
> fumes, vapors, mists, or dust during normal operations or if burned,
> e.g., asbestos, lead paint; reactive, explosive, or under pressure,
> e.g., dynamite and compressed gas cylinders; radioactive materials
> (sealed sources in liquid scintillation counter equipment), or is
> labeled by the manufacturer or previous user as dangerous or toxic to
> animals and/or the environment. More information on the definition of
> HP is provided in the [FPMR
> 101-42.001B](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-42&SECTION=001&YEAR=1999&TYPE=TEXT).

A.  EPA and DOT identify certain property (materials) as hazardous in
    the Federal regulations. There are similarities between the EPA and
    DOT definitions of hazardous properties although each use different
    hazard classification systems. It is important to understand the
    relationship and requirements of each system.

B.  DOT regulates hazardous property during shipment. The EPA regulates
    hazardous property when it becomes waste during storage,
    transportation, and disposal or recycling. 

C.  EPA and DOT vary in their definitions about when specific
    characteristics are classified as \"hazardous\" in each system. For
    example, a cleaning acid may be regulated by DOT during shipment,
    but may not be regulated by the EPA when it becomes waste. However,
    all EPA hazardous waste must meet the DOT requirements for shipment
    of hazardous materials or property when waste is shipped off-site.
    The local safety/environmental component can best advise the status
    of any properties in question and what procedures must be followed.

> Hazardous materials/property shall be handled according to current
> Occupational Safety and Health Administration (OSHA) regulations
> in [Title 29 of the Code of Federal Regulation
> (CFR](http://www.access.gpo.gov/cgi-bin/cfrassemble.cgi?title=200129)),
> transported following Department of Transportation (DOT) regulations
> in Title 49 of the CFR; disposed of according to Environmental
> Protection Agency (EPA) regulations in Title 40 of the CFR: and
> managed according to the Federal Property Management Regulations, and
> any other Federal, State and local regulations that apply to hazardous
> property handling, transportation, and disposal. 
>
> Logistics personnel shall not handle, store, transport, or dispose of
> any property containing radioactive material. Radioactive material
> shall be managed following the U.S. Nuclear Regulatory Commission
> (NRC) requirements (10 CFR 20).
>
> Personal mishandling or mismanagement of hazardous property or
> materials can result in the imposition of severe civil and criminal
> penalties.
>
> All questions pertaining to handling of hazardous property will be
> directed to the environmental/safety office in your organization or to
> your local safety office. HHS Logistics components shall review, in
> cooperation with the safety/environmental component assigned, their
> procedures and training requirements. This shall be done to insure
> that information on the proper disposition for hazardous property is
> distributed to all logistics components. 

#### 103-42.004-50.1 RESPONSIBILITIES

HHS component responsibilities are as follows:

A.  Comply with current Occupational Safety and Health Administration
    (OSHA), Department of Labor regulations; Department of
    Transportation (DOT) regulations when hazardous material is handled,
    used, and transported.

B.  Comply with current Environmental Protection Agency (EPA)
    regulations; Nuclear Regulatory Commission (NRC) regulations,
    Federal Property Management Regulations; and other Federal, State or
    local regulations as applicable when disposing of hazardous
    material.

C.  The safety/environmental component is responsible for the overall
    implementation of the HHS safety program including hazardous
    materials. It is responsible for developing safety standards,
    regulations and monitoring safety and occupational health compliance
    for the component.

D.  The Head of Logistic Components (i.e., Property, Supply,
    Transportation, and Distribution functions) shall insure all
    personnel are aware of the policies and methods of the management of
    hazardous property prescribed in this manual. It is the
    responsibility of all component staff to comply with the guidance in
    the manual.

E.  The user of hazardous property/materials, in coordination with the
    Property Management Officer (PMO) and the Property Custodial Officer
    (PCO), decides at what point the hazardous property/materials are no
    longer needed or usable and accordingly becomes waste. When the
    hazardous property becomes waste, the user together with the PCO
    shall notify the safety/environmental component and turn the waste
    over to them for disposal; if there is not a safety/environmental
    component, the user and the PCO are responsible to ensure that the
    properties are stored, transported, disposed, or recycled following
    the EPA, DOT, OSHA, state, and local laws and regulations.  NOTE:
    The user of hazardous property/materials are more acquainted with
    determining when the hazardous property/material has reached it\'s
    useful life span and becomes a waste product.

F.  Where feasible, components shall minimize quantities of hazardous
    property through resource recovery, recycling, source separation,
    use of non-hazardous substitutes, and component acquisition
    policies.

G.  Properly identify, package, label, and certify conformance with
    established environmental, safety, and transportation criteria
    before transferring accountability of hazardous property to another
    agency.

H.  Components with hazardous materials or hazardous wastes to be moved
    shall choose their carriers with care. All Logistics Components
    shipping hazardous property or hazardous waste shall follow DOT and
    the EPA regulations. Additional help may be obtained from the
    standards published in the Federal Motor Carrier Safety Regulations
    and the National Solid Waste Management Association\'s Chemical
    Waste Transportation Council publications. (Addresses will be
    furnished in final LMM).

I.  Components shall provide for disposal of the following categories of
    hazardous property:

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1.  Toxicological, biological, radiological, and lethal materials that,
    by U.S. law must be destroyed.

2.  Hazardous materials generated by a contractor of HHS are the
    contractor\'s responsibility for disposal under the terms of the
    contract. The safety/environmental component in cooperation with the
    contracting officer must insure the contractor generated hazardous
    materials are transported and disposed of in compliance with the
    law.

3.  Unique wastes and residues of a nonrecurring nature which research
    and development experimental programs generate.

4.  Wastes and residues (including contaminated soils) resulting from
    cleanup of sites associated with long-term widespread contamination
    of the environment.

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```
J.  Accomplish documentation (including records) for disposal actions as
    required under applicable environmental and other pertinent laws and
    regulations. 

K.  Initiate contracts or agreements for disposal actions and disposal
    technology not available within HHS.

L.  Minimize environmental risks and costs associated with extended
    care, handling, and storage of reportable (see LMM 103-43.304) or
    nonreportable (see LMM 103-43.305) hazardous property by advising
    GSA to significantly compress the screening/sale cycle.\
    \
    **NOTE: Components may need to produce signs, that identify
    hazardous storage areas, in English and the predominant language of 
    the local area (i.e., Spanish, French, German, etc.) if other than
    English. **

M.  Operate a system to ensure that sufficient disposal capability is
    programmed to preclude extended delays in the hazardous property
    disposal process.

N.  Assure that HW Treatment, Storage, and Disposal (TSD) contracts
    provide for disposal in RCRA permitted facilities and listings of
    EPA ID numbers for each TSD in the contract are available to the
    component Director.

Components that have Photography and X-ray activities will remove the
silver from all used hypo before discharge into a waste disposal
system leading to the environment.

Decontamination certificates shall be produced by the components in
cooperation with the local safety component and the property management
component.

The principal user is responsible for the following before turn-in of
unrequired property:

A.  Surgical instruments, that are not of a cutting nature and turned in
    as unrequired (not surgical blades!) must have a certificate (signed
    by the principal user or their supervisor) to document that the
    instruments have been sterilized and decontaminated attached to
    the instrument. All turn-in documents will bear the same
    certification. \
    \
    Note: The property management component should not receive any
    materials that are considered infectious medical waste as excess
    property. All used and loose instruments of a cutting nature are
    covered in this manual at
    [103-42.005-50B2a](http://knownet.hhs.gov/log/LMM/103-42.htm#2. MEDICAL AND INFECTIOUS WASTES%232. MEDICAL AND INFECTIOUS WASTES)

B.  All bottles, vials, and residue of experiments will be removed from
    all laboratory property prior to turn-in as unrequired to the needs
    of the laboratory.

C.  Animal cages will be cleaned of all refuse and decontaminated from
    all hazardous property (e.g., chemical, biological and radioactive)
    prior to turn-in as unrequired property.

D.  Property containing mercury as a part of the apparatus will be
    packaged to prevent spillage or damage to the unit holding the
    mercury before designating the apparatus as unrequired property. It
    is recommended, however, that the mercury be extracted from the
    equipment by trained personnel within the organization that used the
    equipment. The extracted mercury shall be collected and turned into
    the safety/environmental office who is responsible for waste
    management to store and subsequently dispose of the mercury. 

E.  Gas chromatography equipment containing Electron Capture Detectors
    (ECDs) that contain radioactive material (i.e., Nickel-63 (Ni-63)
    must have the ECDs removed by trained personnel (the principal user
    or his/her supervisor and the Radiation Safety Officer (RSO) prior
    to reporting the equipment as unrequired property. The RSO must be
    notified if any ECDs are removed from the equipment.

F.  Liquid Scintillation Counters containing sealed sources that contain
    radioactive materials (i.e., radium-226 (Ra-226), cesium-137
    (CS-137), or Barium (Ba-133) must have the sealed sources removed
    prior to reporting the equipment as unrequired property.
    Arrangements shall be made by the Radiation Safety Office (RSO) for
    the removal of sources from the equipment. Accountability,
    inventory, and leak tests (i.e., wipe surveys) must be conducted on
    this equipmentas a condition of the radioactive material license
    issued by the Federal and/or State regulatory agencies. 

### 103-42.004-50.2 RESPONSIBILITIES FOR CHLOROFLOUROCARBON (CFC) ITEMS

Components will not dispose of refrigeration and air conditioning units,
or refrigerators declared scrap, with the CFCs (freon) inside the
compressors. The Freon must be removed from the compressors in a way to
prevent discharge into the environment. Spent Freon is considered a
hazardous waste and [SHALL NOT]{.underline} be discharged into the
environment. Any intentional discharge is a violation of the Clean Air
Act (42 U.S.C. 7401 et. seq.). Equipment is available in the marketplace
to extract and store the freon safely. Freon may be recycled/reused.
Procurement of needed equipment for the extraction is encouraged when
economically feasible. A service contract for the removal of the freon
shall be used when not economically feasible to purchase the extraction
equipment.

Motor vehicle operations:

A.  Components with vehicle maintenance operations will dispose of all
    waste petroleum products following EPA and state regulations.

B.  All batteries (auto or other vehicles) shall be stored, away from
    flammable material with the terminals protected to prevent short
    circuits, in a well ventilated area that will afford them protection
    from the elements. Overheated or frozen batteries could rupture
    allowing the electrolyte (battery acid) to escape into the work area
    or the environment. In either case there is a danger presented by
    the electrolyte.

C.  Used motor vehicle batteries turned in for disposal shall be marked
    with the date of turn-in on the body of the battery and provided the
    same protection, as above, prior to removal from temporary storage.
    All used batteries will be turned over to the safety/environmental
    components hazardous waste contractor (if available) for
    transportation to a disposal site.

D.  When procurement of new motor vehicle batteries is necessary, the
    procurement component should draft the purchase order for the vendor
    to take the used batteries on delivering the new batteries. This
    will eliminate the need for disposal of used batteries. The
    environmental office assigned shall insure the vendor, and
    disposal/merchandising outlets the vendor uses, are in compliance
    with federal and local regulations pertaining to transportation,
    recycling and disposal of batteries.

NOTE: All wet cell batteries will be managed and treated the same as
motor vehicle batteries.

E.  Components having problems disposing of used tires from HHS owned
    vehicles, not acceptable for recapping, should draft purchase
    orders for new tires to include the vendor remove the used tires
    when delivering the new tires. The environmental office assigned
    shall insure the vendor, and disposal/merchandising outlets the
    vendor uses, are in compliance with federal and local regulations
    pertaining to transportation, recycling and disposal of used tires.

[]{#__RefHeading___Toc159986238 .anchor}**103-42.004-50.3
RESPONSIBILITIES FOR POLYCHLORINATED BIPHENYL (PCB) ITEMS\
**\
PCBs are regulated by the Toxic Substances Control Act (TSCA) (15 U.S.C.
2601 et seq.). Handling and disposal of PCBs must be in compliance with
the TSCA and with the EPA Regulations (40 CFR Part 761), PCBs
Manufacturing, Processing, Distribution in Commerce, and Use
Prohibitions. Procedures also must be in compliance with 49 CFR Part
172, DOT Hazardous Materials Tables and Hazardous Materials
Communications Regulations. Additional information is found in the [FPMR
at 101-
42.1102-2](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-42&SECTION=1102-2&YEAR=1999&TYPE=TEXT). \
\
NOTE: The provisions of RCRA do not apply to PCBs. However, state laws
may be more stringent regarding PCBs than Federal laws and regulations.

The following list of property, cooled by oil, will be handled as
containing PCBs unless placarded by the manufacturer, and must
be hermetically sealed units, non-PCB or been tested and the test
results accompany the item confirming PCBs are not present in
the property. Any tests performed to document presence or absence of
PCBs are the responsibility of the owning component. Disposal of this
list of items will not be accomplished without appropriate test results.

A.  Hydraulic system components (fluids).

B.  Transformers.

C.  Capacitors.

D.  Circuit breakers.

E.  Voltage regulators.

F.  Electromagnets.

G.  X-Ray units.

H.  Microscope immersion oil.

I.  Machine tools.

J.  Fluorescent light ballasts.

K.  Electron Microscopes.

Components in possession of property in the above list will comply with
the laws and regulations concerning PCBs. Manufacturers may be contacted
for assistance to learn PCB content of their equipment. Any PCB spill
must be immediately reported to the component safety/environmental
office because of stringent PCB clean up requirements. Component
safety/environmental offices can furnish additional information and
assistance on matters concerning PCBs.

[]{#__RefHeading___Toc159986239 .anchor}**103-42.004-50.4 LEAD
CONTAINING PAINT AND ITEMS BEARING LEAD CONTAINING PAINT**\
\
New/unused lead-containing paint and items bearing lead-containing paint
shall be handled and disposed of following the [FPMR at
101-42.1102-7](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-42&SECTION=1102-7&YEAR=1999&TYPE=TEXT).
Lead-containing paint containers that have been opened and items bearing
lead-containing paint that are found to be unusable shall be disposed of
following the [FPMR at
101-42.406](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-42&SECTION=406&YEAR=1999&TYPE=TEXT)
and in coordination with the component safety office. Components with
established commercial hazardous material disposal contracts shall turn
the lead-containing materials over to the contractor for proper
disposal. 

[]{#__RefHeading___Toc159986240 .anchor}**103-42.005-50 PHYSICAL
CUSTODY\
**\
HHS\' policy is to safely store hazardous materials and wastes to
protect human health and the environment, and in such a manner as to
create optimum conditions for reduction of the HHS waste stream through
utilization, donation and sales efforts. 

CONDITIONS FOR ACCEPTING PHYSICAL CUSTODY OF HAZARDOUS PROPERTY INTO THE
UNREQUIRED/EXCESS PROPERTY PROCESS

A.  To prevent contaminated property or property containing hazardous
    materials, e.g., radioactive, chemical and/or biological materials
    or residues, from entering the excess property stream, the principal
    user or his/her supervisor shall attach to the equipment/property, a
    certificate that he/she has signed to document that the equipment
    has been decontaminated and all hazardous materials have been
    removed before reporting, to the property management component, the
    equipment as unrequired to the needs of the user. This certificate
    is specifically required for all instruments used in research
    laboratories where there is a greater potential for contamination.
    All turn-in forms to request removal of unrequired equipment also
    will bear the certification of decontamination signed by the
    principal user/supervisor.

B.  The property management component shall not request movement nor
    accept unrequired property into the excess program without a
    completed decontamination certificate attached to the property and a
    decontamination certification on the turn-in document or the request
    for movement document.

C.  The property management unit will under no circumstances take part
    in any activity to remove any hazardous material from equipment
    offered as excess. If necessary, the property management personnel
    will contact the local safety office for guidance if they suspect
    the presence of hazardous materials.

D.  Decontamination certificates shall be produced and provided by the
    using component. All unrequired property to be turned in to the
    property management component, shall have a completed
    decontamination certificate attached. Decontamination will be
    performed, by the user or qualified decontamination personnel, and
    the certificate shall be prepared and signed by the principal user
    or his/her supervisor. 

E.  New/unused surgical instruments including surgical blades in the
    original packaging shall be handled as normal unrequired property.
    Decontamination certificates shall be attached to each unopened
    original package.

SPECIFIC HAZARDOUS PROPERTY NOT PHYSICALLY HANDLED BY
PROPERTY MANAGEMENT COMPONENTS.

A.  RADIOACTIVE MATERIAL.\
    \
    HHS Logistics Components shall not process unrequired radioactive
    property through the property management program. Radioactive
    properties or materials are managed by the Radiation Safety Office
    (RSO) according to stringent regulations and laws of the Nuclear
    Regulatory Commission  (NRC) and/or the laws of the NRC designated
    agreement states, also refer to [FPMR
    101-42.1102.4](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-42&SECTION=1102-4&YEAR=1999&TYPE=TEXT). 

    1.  All radioactive property shall be managed by the Radiation
        Safety Office or the NRC licensed contractor for the previous
        owner of the equipment. Please note that it is illegal for the
        property management unit to remove any labels from equipment
        that show the equipment contained radioactive materials. The RSO
        is the only individual who can remove such labels after he/she
        has documented the equipment is free of any source
        of radioactivity. The property management component shall
        contact the RSO if they suspect any equipment may be
        contaminated with radioactivity or contains a radioactive
        source.

    2.  Property contaminated by radioactivity from solutions, gases,
        etc. must first be decontaminated by trained personnel (the
        principal user or the RSO), certified free of radioactivity by
        the RSO or his/her designee, and officially cleared by the RSO
        and labeled as such. The RSO or his/her designee will place a
        signed certificate on all such equipment to show it has been
        cleared by the Radiation Safety Office. The property may then be
        reported as unrequired and transferred to the property
        management unit in the same manner as any other property.

    3.  Laboratory property, containing licensed radioactive property,
        must be cleared by the RSO before it can be declared unrequired
        to the needs of the using component. The RSO will officially
        clear the equipment as excess and sign the certificate attached
        to the equipment. Removal of any radioactive parts of equipment
        shall be accomplished by trained personnel in the Radiation
        Safety Office or a licensed contractor. 

B.  MEDICAL AND INFECTIOUS WASTES

```{=html}
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```
1.  All used and loose sharp surgical instruments, (including hypodermic
    needles, syringes with attached needles, and surgical blades) shall
    be considered infectious medical waste and will be disposed of as
    such with the medical waste contractor or on-site with arrangements
    through the local safety office.

2.  Medical or biological property, e.g., operating room residue, used
    surgical clothing, used bandages and dressings, and biological
    materials, shall be considered as infectious medical waste. Again,
    property management components shall not receive any of this
    property for disposal. Arrangements for disposal of this type
    property shall be made through the local safety/environmental office
    (on-site or special contracts).

[]{#__RefHeading___Toc159986241 .anchor}**103-42.005-50.1 REPORTING
HAZARDOUS PROPERTY FOR UTILIZATION AND SALES**\
\
HHS components reporting hazardous materials for utilization and sales
shall accomplish this by following guidelines in LMM 103-42.2, 103-42.3,
103-42.4, and applicable [FPMR
101-42.2](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-42&SECTION=200&YEAR=1999&TYPE=TEXT),
[101-42.3](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-42&SECTION=300&YEAR=1999&TYPE=TEXT),  
[101-42.4](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-42&SECTION=400&YEAR=1999&TYPE=TEXT).

[]{#__RefHeading___Toc159986242 .anchor}**103-42.006-50 IMPLEMENTATION
OF RCRA\
**\
Individual facility directors/managers are responsible for implementing
and conducting their component activities according to the Resource
Conservation and Recovery Act (RCRA). Safety/environmental components
are responsible to the facility directors/managers for the operation of
the facility RCRA program.

[]{#__RefHeading___Toc159986243 .anchor}**103-42.006-50.1 REPORTING OF
HAZARDOUS MISHAPS\
**\
HHS personnel are responsible for reporting any radioactive property or
hazardous property spills, no matter how small. They will report any
spills/mishaps to the safety/environmental component, or to an in-house
Emergency Hazardous Material Response Group/Fire Department Haz/Mat Team
established by the Spill Contingency Plan, and their immediate
supervisor. The spill or mishap area will be controlled and protected,
if possible, by the person reporting the mishap/spill until arrival of
the Emergency Hazardous Material Response Group/Fire Department Haz/Mat
Team. The supervisor will report the spill/mishap immediately to the
Safety Office. The Safety Office will remediate the spill/mishap
according to the Spill Contingency Plan (See 40 CFR 265.51, et.al.).
When required, the component safety/environmental office will report any
releases, required tobe reported by EPA regulations, to the appropriate
regulatory authorities within 24 hours. Failure to do so may result in
fines, for violations of the laws, for the component.

[]{#__RefHeading___Toc159986244 .anchor}**103-42.006-50.2 TRAINING\
**\
HHS Components shall insure all logistics personnel, (Property, Supply,
Transportation and Distribution activities), including contract
personnel, shall be trained in the use of any required personal
protective equipment; emergency response to hazardous mishaps; hazard
communication; radiation safety; reporting hazardous mishaps; and
understand the reporting procedures. Component safety offices shall be
tasked to provide the training mentioned above.

[]{#__RefHeading___Toc159986245 .anchor}**103-42.007-50 HAZARDOUS WASTE
MANAGEMENT PLAN\
**\
Implementation of the comprehensive hazardous waste management program,
mandated by RCRA, requires maximum cooperation of all components in
HHS.  Logistics Components are not responsible for the hazardous waste
management plan, other than compliance and cooperation with
the safety/environmental component. The following guidance applies to
development and implementation of a Hazardous Waste Management Plan:

The facility director/manager is responsible for developing and
implementing a Hazardous Waste Management Plan. This plan shall identify
and implement hazardous waste management actions required by RCRA.

The director/manager of a component shall ensure that inspections,
safety precautions and actions, records, etc., as established in the
Hazardous Waste Management Plan, are accomplished for hazardous property
that the component has physical custody and accountability.

Property accountability records should reflect the nature and extent of
the actual or potential hazard and show any Federal, State, or local
regulations governing the property.

[]{#__RefHeading___Toc159986246 .anchor}**103-42.008-50 MANIFESTS\
**\
A uniform Hazardous Waste Manifest (UHWM) is a special shipping paper
used for tracking the movement of hazardous waste. The Environmental
Protection Agency (EPA) and the Department of Transportation (DOT)
regulations require that all shipments of hazardous waste must be
accompanied by a hazardous waste manifest. The manifest serves as part
of the \"cradle to grave\" record of the waste that documents proper
management of the waste. HHS components shipping hazardous wastes shall
prepare a UHWM to accompany all offsite shipments of hazardous waste and
will include a 24-hour emergency notification telephone number. The
activity permit holder has primary responsibility for signing manifests,
but may delegate signature authority. Please see LMM 103-40.1207 for
information on shipping hazardous property.

[]{#__RefHeading___Toc159986247 .anchor}**103-42.008-50.1 MARKING\
**\
All hazardous material will be marked. Markings must be printed in
English, and the predominant language of the local area, on the surface
of the package or on a label, tag, or sign securely affixed to the
package. They must be displayed on a background of sharply contrasting
color, must be unobscured, and must be durable.\
\
**103-42.008-50.2 LABELING\
**\
HHS components shall follow U. S. Department of Transportation (DOT)
requirements for labeling packages containing hazardous materials. A
primary source for labeling information is 49 CFR 172.101 (Hazardous
Material Table). NOTE: Multiple labels are required in those cases where
hazardous material meets the definition of more than one hazard class
(i.e., Radioactive and poison) to include exceptions for small
quantities. When radioactive material and another hazardous material is
in the same package, the package will display labels for both hazardous
items.

[]{#__RefHeading___Toc159986248 .anchor}**103-42.009-50 RECORD KEEPING
AND REPORTING\
**\
HHS components shall coordinate with safety/environmental office records
keeping function to insure compliance with Federal and State hazardous
waste record keeping and reporting requirements. 

[]{#__RefHeading___Toc159986249 .anchor}**103-42.010-50 RECOVERY OF
SILVER FROM USED/SPENT PHOTOGRAPHIC FIXER SOLUTION (HYPO SOLUTION)\
**\
The Environmental Protection Agency (EPA) has identified photographic
fixer solution (hypo solution), with more than 5 parts per million (ppm)
silver present, to be a hazardous waste. Some states have established
more stringent discharge standards. Components generating photographic
used/spent hypo (fixer) solution from the film developing operations
shall handle all such solutions as hazardous waste unless the silver is
recovered from the solution before disposal. Various silver recovery
systems are available commercially. Arrangements for the recovery of the
silver will be handled by the safety/environmental office. The
safety/environmental component is available to advise on the
installation and operation of a silver recovery system and its
feasibility according to local waste regulations. The disposal of the
recovered silver shall be done through a GSA recovery contract,
commercial cost reduction service contract or turned in to the property
management component for disposal through the DoD Precious Metals
Program. Records of the recovered silver must be maintained for reports
required by the [FPMR 101-
45.1002-4](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-45&SECTION=1002-4&YEAR=1999&TYPE=TEXT).\
\
It is the responsibility of the program user to insure the equipment, of
the contractor\'s or equipment owned/leased/received through the DoD
program by the component, is treating the hypo solution and reducing the
silver content below the EPA/local state standards before discharge into
a drainage system leading to the environment. The safety/environmental
component will insure the service contractor complies with federal and
state regulations and laws for transportation, recycling and disposal of
recovered silver from the silver recovery units/systems. If a GSA or
commercial service contract is not available, silver recovery equipment
may be obtained by:

A.  Interservice Support Agreement/Memorandum of Understanding through
    the DoD/DLA Precious Metals Recovery Program.

B.  Local procurement by the component.

# PART 103-43 UTILIZATION OF UNREQUIRED PERSONAL PROPERTY

### 103-43.000 Scope

This part prescribes policies and methods governing the economic and
efficient receiving, accounting, and utilization of unrequired personal
property assigned to HHS.. Additional guidelines regarding reutilization
of hazardous materials are provided in Part 103.42 of the LMM.

### 103-43.001 Definitions

Definitions of terms for this Subpart are found at [FMR
102-36.40](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-36.40.htm).

### 103-43.100-50 Receipt and Handling of Excess Personal Property at HHS Personal Property Management Components

[]{#__RefHeading___Toc159986254 .anchor}**[SUBPART 103-43.1 GENERAL
PROVISIONS]{.underline}**

This part prescribes the policies and methods governing the economic and
efficient handling of unrequired personal property turned into Personal
Property Management Offices within HHS.\
\
**103-43.100-50.001 POLICY**

A. LOCATOR SYSTEM.\
\
HHS component\'s Personal Property Management Offices (PPMOs) with
personal property warehouses shall establish, in coordination
with facilities and space management, a **LOCATOR SYSTEM** and mark the
locations on the storage aids used. Open areas used for over-sized
equipment shall be laid out and marked on the warehouse floor. A
**PLANOGRAPH** (floor plan) of the locator system shall be placed in the
receiving area and at the entrance of the warehouse. Open storage
(outside areas) shall be laid out and marked with the established
locator system. A Planograph of the outside also shall be posted as
above.\
\
B. LOCATION

A suitable location, separate and apart from installation active stocks,
shall be established at each Personal Property Management Office (PPMO)
for the receipt and storage of excess, surplus, or foreign excess
personal property. This area shall be of sufficient size to permit
proper segregation of material and should be convenient to a
transportation network. The PPMO shall be responsible for warehousing or
otherwise storing all property physically received and shall be
responsible for:

1.  Administering the established locator system for all property under
    the control of the PPMO.

2.  Property segregation bins or areas prominently marked, labeled, or
    tagged to be readily identifiable with the proper locator record.
    Property should, to the extent practicable, be baled, boxed,
    bundled, bagged, binned, or otherwise stored to prevent mixing and
    to facilitate \
    handling and accessibility.

3.  Separate storage locations when sufficient space, covered and open,
    is available for property that must undergo centralized and local
    area screening. Sale of property should be conducted from these
    locations to avoid double handling of property unless the regional
    GSA Sales office requests the property be moved to a central sale
    site of their choosing.

4.  Adequate covered storage space for the protection from exposure to
    the elements of such items as papers, For an Alternative Navigation
    Method, Use Text Linksiles, and sensitive items of property subject
    to damage or deterioration. Materials shall be stored to prevent
    contamination or mixing and to be readily accessible for inspection.

5.  The organizational elements of a PPMO shall be positioned so that
    the flow of materials and paperwork is orderly from the time of
    receipt to ultimate disposal.

6.  The receiving section should be located near the entrance to the
    PPMO warehouse or yard for convenience in property verification so
    that the property may be directed to a prearranged storage location.
    Generating activities shall furnish advance copies of the Turn-In
    document (TID),
    [HHS-22](http://knownet.hhs.gov/log/AgencyPolicy/HHSLogPolicy/DHPS_003-2.doc),
    or other authorized documentation to permit preplanning for storage
    purposes.

7.  The storage location for scrap property shall be separate from that
    of usable property.

8.  Property appearing on a sale solicitation (catalog) and property
    awaiting sale shall be separated by signs from property being
    screened for reutilization, transfer, or donation to eliminate
    confusion for inspecting bidders and screeners.

### 103-43.100-50.002 FACILITIES, EQUIPMENT, AND VEHICLE REQUIREMENTS

A. Equipment. \
\
Normally the Transportation component shall furnish the PPMO use and
maintenance support for operating equipment and vehicles to support both
normal and temporary needs for the mission. \
\
B. Facilities.\
\
The PPMO component shall obtain such facilities as are necessary to do
the assigned property management, utilization, and disposal mission.

[]{#__RefHeading___Toc159986256 .anchor}**103-43.100-50.003 SAFEGUARDING
MATERIAL\
**\
The PPMO facilities and yard shall be fenced or otherwise protected to
ensure that materials are safeguarded against theft, pilferage, or
unauthorized withdrawals. Security and investigative support shall be
provided by the in-house Security component or Federal Law Enforcement
Service.

### 103-43.100-50.004 DISPOSAL PROCESSING

The PPMO is responsible for utilization and disposal of all HHS
generated excess, surplus, and foreign excess, and other
personal property authorized for turn in (excluding nonsalable property)
except those specific categories identified in subparagraph 2 below.

A.  The PPMO shall physically accept and process property for which it
    has utilization and disposal responsibility. There are, however,
    certain categories of property, which the PPMO may not accept
    physically based upon special storage or special handling needs.
    When this occurs accountability shall be accepted by the PPMO and
    the property processed for utilization and disposal actions even
    though the property physically remains in place. Accountability of
    property that is not utilized or sold shall not be returned to the
    generating activity. Hazardous property shall be disposed of
    following the [FPMR
    101-42](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfr101-42_99.html)
    , also see LMM 103-42. Other property shall be downgraded to scrap,
    processed for abandonment or destruction, or disposed of by service
    contract. Where the PPMO lacks resources or the technical expertise
    to handle physically property for which it has utilization and
    disposal responsibility, the PPMO shall arrange for such support
    with the Regional GSA office. 

B.  The following types of property may not be physically accepted by
    any PPMO whatever its resources or technical expertise:

    1.  Live animals.

    2.  Explosives and ammunition.

    3.  Products causing or capable of causing fire.

    4.  Drugs, biologicals, and controlled substances.

    5.  Nitrate base film.

    6.  Psychodiagnostic test sets

> NOTE: This restriction may be waived by higher authority (i.e., HHS
> Secretary, Heads of OPDIV\'s, etc.) in the event of emergencies (i.e.,
> hurricane disasters, earthquake disasters) and HHS component
> facilities in the immediate locale are available.  

C.  The PPMO shall not accept (either physically or on its property
    records) the following categories of property and no reutilization
    or sale service shall be given:

    1.  Radioactive waste, thermal batteries, and unsalable material of
        a nonhazardous nature; that is, material for which sale or other
        disposal is prohibited by U.S. law or Federal regulations. This
        category includes, but is not limited to classified material,
        inspection stamps and devices, consecrated religious items, and
        cryptographic equipment.\
        \
        Hazardous waste designated for disposal.\
        \
        Refuse and trash; that is, consumer waste material such as
        litter and rubbish collected by the Sanitation/Housekeeping
        Service Contractor. The collection of refuse and trash is the
        responsibility of the buildings and facilities functions.\
        \
        Medical and infectious wastes. (refer to: LMM 103-42.005-50B2).

TURN-IN CRITERIA

A.  Generating components shall comply with turn-in procedures
    established by the PPMO.

B.  Usable property shall be turned in as individual line items.

C.  All PC fixed hardrives, ADPE magnetic tapes, PC disks (this is not
    commercial software programs), and disc storage packs etc. shall be
    degaussed (erased, demagnetized) and a certification, by the using
    component ADP officer and supervisor of the program turning the
    equipment, attached to the tapes and disc packs. A certification
    shall also be included on the turn-in documentation.

D.  Disposition of software shall be consistent with the limitations of
    any applicable license. Questions on disposition shall be referred
    to the local IRM component for resolution.

DELIVERY TO PPMO.

A.  The responsibility for expenses incurred in utilization and disposal
    of excess surplus personal property is the point at which
    accountability is transferred from the generating component to the
    PPMO. All expenses incurred before acceptance of accountability by
    the PPMO shall be borne by the generating activity. Conversely, all
    expenses incurred after acceptance of accountability by the PPMO
    shall be borne by the PPMO.

B.  Property capable of spilling or leaking may not be transferred to
    the PPMO in open, broken, or leaking containers (See LMM 103-42).

DOCUMENTATION

A.  Property shall be turned in to the PPMO on a Request For Property
    Action,
    [HHS-22](http://knownet.hhs.gov/log/AgencyPolicy/HHSLogPolicy/DHPS_003-2.doc)
    form, or other authorized property turn-in documents (TID). The
    [HHS-22](http://knownet.hhs.gov/log/AgencyPolicy/HHSLogPolicy/DHPS_003-2.doc)
    heading shall be filled in by the generating activity. The following
    is the minimum information that must be on the TID describing the
    property:

```{=html}
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```
1.  Barcode decal number/identification decal number.

2.  Description and stock number (if known).

3.  Quantity.

4.  Unit of issue

5.  Condition.

6.  Unit cost

7.  Category of property (such as exchange/sale, nonappropriated fund,
    etc.) and if proceeds are to be deposited to other than the General
    Fund Receipt Account, the reimbursement data to include the account
    to be credited and the Agency Location Code.

8.  Weight and cubic size, estimated, if unknown.

9.  Value and list of component parts that have been removed from
    vehicles or a copy of a Limited Technical Inspection form showing
    the nature and extent of repairs required.

```{=html}
<!-- -->
```
B.  The component PPMO shall decide a minimum number of legible copies
    of the TID that must be furnished and accompany the property. The
    PPMO shall return to the turn in activity within 5 working days from
    receipt of property one copy of the turn-in as a valid receipt
    document. This copy may be used to adjust the property custodial
    accounting records.

C.  

### 103-43.100-50.005 RECEIPT OF PROPERTY 

This paragraph gives uniform procedures for the receipt, handling, and
storage of property for issue, excess, surplus, and foreign
excess property.

The most critical and important stage in the flow of property through
the property management program is when the property is initially
received at the PPMO warehouse. The PPMOs have the responsibility for
the receipt, classification, processing, safe-guarding, storing, and
shipping of all property received. This includes property to be
accounted for as items, and properly segregated scrap and waste having a
utilization, donation, or sale value, and material destined for ultimate
disposal. The PPMO shall give assistance, as requested, in tracing
turn-ins. The PPMO must maintain close liaison with the generating
components to ensure that:

A.  Scheduling is done taking into consideration the PPMO\'s receiving
    capability and the volume of property to be turned in.

B.  Inspection of the property is performed in place if it is more
    advantageous to do so because of the size, weight, or category of
    the property. Excess property not transferred physically to the PPMO
    shall be tagged with a status tag indicating the PPMO
    accountability.

C.  Property classified as \"SCRAP\" by the generating component is
    processed for disposition according to the circumstances on which
    the classification is based. Material condition coded \"SCRAP\"
    solely due to its degree of unserviceability or age (shelf life) may
    have some use potential and should be processed accordingly.

D.  No salable property with utilization, donation, or sale potential is
    being disposed of by dumping in refuse containers.

E.  PPMOs shall apprise generating components of their (the generating
    components\') responsibility to assure that all salable material is
    turned in to the PPMO.\
    \
    If the PPMO has knowledge that usable/salable material is being
    dumped in a refuse container, the PPMO chief shall initiate a letter
    to notify the component Security office regarding the matter.

F.  Property has received proper protection and care in handling before
    it is transferred to a PPMO, preventing damage from unnecessary
    exposure to the elements. Property turned in as condemned may still
    be usable and its preservation may benefit the utilization program.
    Instances of apparent improper handling of Government property shall
    be reported to the generating activity or Security Office for
    remedial action. Recurrent instances of improper care or handling of
    property shall be documented for referral to the STAFFDIV/OPDIV for
    resolution.

The receiving and storage segment of the PPMO shall:

A.  Assure that all property shipped or turned in to the PPMO is
    accompanied by the needed number of copies of shipping and/or
    turn-in document properly prepared and decide what special handling
    will be required by the property covered in [FMR
    102-36](http://www.access.gpo.gov/nara/cfr/waisidx_06/41cfr102-36_06.html).

B.  Inspect property upon receipt. Inspection shall consist of verifying
    property description and quantity and assuring that a valid
    Condition Code was assigned by the generating activity for the
    unrequired property. A Disposal Condition Code shall be assigned by
    the PPMO that must be perpetuated throughout the screening process
    (example: a condition code of 2). Disposal condition codes will be
    found at [FMR
    102-36.240](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-36.240.htm).
    Inspection checks shall be made to give reasonable assurance  that
    all information relating to the property is factual. If a
    discrepancy exists, the generating activity shall be contacted and
    requested to initiate action to resolve the discrepancy. If the
    discrepancy is not resolved within a reasonable period of time, the
    item(s) shall be returned.

C.  Unrequired property classified and reported as \"SCRAP\" by the user
    to the PCO for disposal must have an explanation for inclusion on
    the TID explaining the condition coding of the property as scrap.
    The explanation shall be verified by signatures of the user and the
    PCO on the TID. \
    \
    NOTE: THIS PROPERTY SHALL BE DISPOSED OF AS SCRAP AND REMOVED FROM
    THE ACCOUNTABLE RECORD ON RECEIPT.

D.  Unrequired property classified as \"SALVAGE\" by the user and
    reported to the PCO for disposal shall have an explanation included
    on the TID stating the reason it would exceed 65% of the acquisition
    cost of the item for repair to make it usable. This documentation
    shall be verified by signatures of the user and the PCO. THIS
    PROPERTY MAY BE UTILIZED, DONATED, OR SOLD IN BULK, IF ECONOMICAL TO
    STORE AND SPACE IS AVAILABLE. IF UNABLE TO HOLD FOR UTILIZATION,
    DONATION OR SALE DUE TO SPACE CONSTRAINTS, IT SHALL BE DOWNGRADED TO
    SCRAP AND SOLD ON A GSA SCRAP CONTRACT.  NOTE: PROPERTY CLASSIFIED
    AS SALVAGE SHALL BE REMOVED FROM THE ACCOUNTABLE RECORD ON RECEIPT.

E.  Property received in place by the PPMO is tagged for identification
    purposes. (Property should be consolidated physically in a
    designated area, but may be left in place if this action is
    determined locally to be justified for economic or other valid
    reasons.) The activity having physical custody shall be responsible
    for care and protection of this property until it is disposed of or
    moved to the PPMO warehouse.

F.  Property placed on the storage aids (Racks) shall be stored using a
    date row system, if a DATE ROW SYSTEM is not currently in use the
    PPMO shall establish and implement one when practicable. This system
    will insure that property that comes in first will be reported first
    and, with the help of the regional GSA office, removed first.

G.  Personal appeal items (e.g., cameras, microscopes, small
    calculators, laptop computers, etc.) shall be stored away from the
    normal unrequired property in locked cage, cabinet, or glass viewing
    case areas where available or away from high traffic areas under
    surveillance by PPMO staff.

H.  Property too large to be placed in the storage racks shall be stored
    in an open space on the warehouse floor. The items located on the
    floor shall be stored with easy access for screening or movement.
    These open areas shall be marked following the Planograph (see: LMM
    103-43.100-50.001) for the warehouse.

I.  Generating activities shall reflect on the turn-in document the
    property that must be identified for special processing, such as
    shelf life, automation equipment, hazardous material (LMM 103.42,
    Utilization and Disposal of Hazardous Materials and Certain
    Categories of Property), also property that is authorized for direct
    reimbursement to a deposit fund account other than the General Fund
    Receipt Account. Turn-in documents without special processing or
    direct reimbursement data shall be processed as normal HHS excess
    property.

[]{#__RefHeading___Toc159986259 .anchor}**103-43.100-50.006 STATUS OF
PROPERTY\
**\
Property, whether new incoming property ordered by a component, usable
unrequired items or scrap, which is transferred to the PPMO, must be
identified clearly as to its status from the time of receipt until final
removal. By clearly identifying the status of property, confusion for
issue, utilization and donation screeners and inspecting bidders should
be minimized, if not eliminated. Storage areas shall be set aside and
the status of the property shall be shown.

[]{#__RefHeading___Toc159986260 .anchor}**103-43.100-50.007 TRAINING\
**\
A trained staff of personnel in the Receiving Segment of the Personal
Property Management Office is necessary to maintain a professional,
efficient work force. This trained work force produces a cost-saving,
efficient operation of the excess/disposal program.

PPMOs shall establish and maintain a training program for the Receiving
Segment of the operation. A training agenda for the receiving segment of
the PPMO shall be produced and implemented when practicable, but no
later than one year after publication and distribution of this manual.
As a minimum the training program shall cover:

A.  Receiving procedures.

B.  Locator system/warehouse layout.

C.  Storage procedures.

D.  Open storage operations (scrap).

E.  Safety regulations and procedures.

Other Federal agency training programs or commercial training may be
used by PPMOs to fulfill the above training requirements.

Documentation of the training shall be maintained for each employee in
the Receiving Segment of the PPMO.

### 103-43.100-50.1 DISPOSITION TRACKING FOR UNREQUIRED/EXCESS PERSONAL PROPERTY

###  103-43.100-50.100 GENERAL

A. The PPMO should maintain an UNREQUIRED/EXCESS PROPERTY TRACKING
PROGRAM, as an element of their active property accounting system. This
element will provide an excellent audit trail from receipt to final
disposition of the unrequired property through the excess/surplus
program. The system should include the following: the ability to
identify unrequired, excess, and surplus property; track each through
the disposal cycle; provide required disposition information to permit
the close out of official accountability records; and provide the
required information to reconcile fiscal records for capitalized
property.\
\
B. Property turned in by generating activities, as unrequired to their
needs, shall have the accountability for that property removed from
their custodial code in the active property accounting system and
transferred to the PPMO\'s EXCESS PROPERTY TRACKING PROGRAM. \
\
C. Unrequired domestic/foreign property turned in or reported to the
PPMO shall be accompanied by the specified number of copies of the
authorized turn-in document. Before accepting the material, the
receiving segment of the PPMO shall ensure that the document is prepared
properly and that the descriptions and quantities listed are accurate.
In all cases, records shall be maintained so that an item of property
can be traced from receipt to disposal and make available the necessary
data for required reports.\
\
D. Property utilization and disposal records must be maintained in
sufficient detail to support the reimbursement accounting procedures set
forth in LMM 103-45 Sales. 

### 103-43.100-50.102 DISCREPANCIES AND ADJUSTMENTS

A. Discrepancies in item identification, quantity, condition, or price
data that are revealed before acceptance of accountability shall be
resolved and corrected during the receipt process. Any discrepancies
that are discovered after acceptance of accountability; that is,
differences between recorded balances and quantities on hand, shall be
processed as inventory adjustment actions. \
\
B. When property for which the PPMO has accountability, but has not
assumed custodial responsibility, becomes lost, damaged, or destroyed,
the custodial activity having responsibility for the physical custody of
the property shall investigate the circumstances surrounding the
discrepancy. The PPMO shall provide the investigating custodial activity
with requested item identification number such as NSN and TID number or
copies of documentation pertinent to the item lost, damaged, or
destroyed. If the custodial activity\'s investigation finds the
discrepancy is due to a record keeping error, it shall inform the PPMO
which shall prepare an inventory adjustment document. If the discrepancy
is not due to a record keeping error, the custodial activity having
responsibility for the property that was lost, damaged, or destroyed
must prepare a [Report of Survey HHS Form
342](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/HHS342.PDF). The
responsible custodial activity must provide the PPMO supportive
documentation for the PPMO. The PMO will convene a Board of Survey to
determine liability and authority to adjust the discrepancy on the
accountable record.

### 103-43.100-50.103 PHYSICAL INVENTORY AND LOCATION SURVEY OF UNREQUIRED PROPERTY IN THE PPMO 

Unrequired property that remains on the PPMO unrequired/excess tracking
program in excess of 12 months shall be inventoried not later than the
13th month of tracking and reviewed monthly thereafter until resolved. 

To facilitate a constant check on the property in the excess system, the
separate tracking/accounting program for the PPMO excess property is
most advantageous. 

[]{#__RefHeading___Toc159986265 .anchor}**103-43.101 AGENCY UTILIZATION
REVIEWS\
**\
HHS components shall continuously survey personal property under their
control. The purpose is to assure maximum use of all property or
promptly identify unrequired property. 

[]{#__RefHeading___Toc159986266 .anchor}**103-43.102 REASSIGNMENT OF
UNREQUIRED PERSONAL PROPERTY WITHIN HHS**

Personal property that is identified as unrequired by the assigned user
(Custodial Area), shall be reassigned to the maximum extent feasible, to
other activities within the Department that have a requirement for the
property. Such reassignments must be made through the Property
Management Officer and Property Accountable Officer, documented with an
[HHS Form
22](http://knownet.hhs.gov/log/AgencyPolicy/HHSLogPolicy/DHPS_003-2.doc)
or local form used in lieu thereof, and contain the same \"Use or
Replacement Standards\" justification as requisitions for new items. 

A.  The priority for reassignment is to other Custodial Areas within the
    Accountable Area in which the unrequired property is assigned. 

B.  The second priority is to cost reimbursement type contractors who
    are provided Government property whose contracts are administered by
    the procurement activity that supports the Accountable Area. 

C.  The third priority is to transfer the property to another
    Accountable Area within the Department. When deciding between
    priority two and three, consideration should be given to
    transportation cost. 

D.  If the property cannot be reassigned within the Department it will
    be reported to GSA as excess unless it can be clearly established
    that the unrequired items will be necessary to meet the needs of an
    approved future program or program expansion. Circumstances
    justifying retention of items shall be noted in the property file
    (accountability record). All such items shall be reexamined
    semi-annually. Re-justification for retention will be accomplished
    during this examination or the items will be reported to GSA as
    excess.

Procurement shall be immediately ended for items for which unrequired
property can be substituted or adapted. ([FMR
102-36.65](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-36.65.htm))

Personal property, identified and turned in to the PPMO as unrequired to
the needs of the user, in Disposal Condition Codes 1 through 5 (see [FMR
102-36.240](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=102-36&SECTION=240&YEAR=2000&TYPE=TEXT))
shall be retained in the PPMO inventory for 21 working days for internal
screening by HHS components. Property in condition codes 6 through 9
shall be reported to GSA for disposition as soon as possible.

OS and OPDIVs shall submit a report of property assigned within the
Department during each fiscal year. Data will be incorporated on
Standard Form 121, Annual Report of Utilization and Disposal of Excess
and Surplus Personal Property. Reports shall be submitted to the Office
of Acquisition Management and Policy (OAMP), Assistant Secretary for
Administration and Management (ASAM). The responsible individual should
be the designated Property Management Officer.

[]{#__RefHeading___Toc159986267 .anchor}**103-43.103 AGENCY UTILIZATION
OFFICIALS (AUO)\
**\
Utilization Specialists or personnel assigned the duty of utilization of
unrequired/excess personal property assigned to Property Management
Components are the focal point for promoting the acquisition and
profitable use of available excess.

## SUBPART 103-43.3 UTILIZATION OF EXCESS PERSONAL PROPERTY

### 103-43.301 HHS PROCEDURE

The priority source of supply for HHS is excess personal property. It
shall be used to the fullest extent practicable by all components.

### 103-43.302 HHS COMPONENTS RESPONSIBILITIES

Excess personal property shall be made available to authorized agencies
and to other activities authorized by special legislation (i.e. McKinney
Act, Indian Self-Determination Act) by prompt declaration to GSA of the
excess property.

Before procuring new personal property careful consideration shall be
given to the use of known usable excess property.

Equipment will not be acquired from excess for anticipated future
requirements. Equipment acquired from excess shall be for
approved authorized programs and shall comply with prescribed \"Use and
Replacement Standards.\"

Requirements for non-reportable personal property will be coordinated
with the appropriate GSA regional area utilization officer before
initiation of new procurement.

Excess personal property planned for issue by GSA to fill requisitions
for new property will be accepted unless such substitutions would result
in serious hardship or impairment to operating programs.

Acquisitions of items for inventory (supplies and materials, no
equipment) from excess shall not allow inventories to exceed two years
of supply.

Costs of crating, shipping, repair or rehabilitation if required will be
considered in making determinations to get excess property.

All acquisitions from excess shall be processed through the PMO.

### 103-43.303 Cannibalization

Cannibalization is the removal from a piece of property of parts to be
used to repair a like item. Cannibalization is applicable to property
which is serving its intended purpose, and is considered economically
repairable. The removal of components parts from property which has been
classified as \"Salvage\" (FMR 102-36.40) is not considered
cannibalization. The reuse of component parts from salvage material is
authorized without regard to this subpart.

Conditions permitting cannibalization:\
\
Cannibalization of HHS owned property may be conducted provided
**[all]{.underline}** the following exist:

A.  Repair of the broken or worn parts is not possible. 

B.  Required parts are not available from other units previously
    cannibalized.

C.  Required parts are not available from Government excess.

D.  The parts are not available from commercial or Government supply
    sources because of obsolescence, excessive price or extraordinary
    leadtimes.

E.  The benefit realized from cannibalization exceeds the estimated
    trade-in or sale value of the unit being considered for
    cannibalization.

Unrequired USABLE property, in the PPMO warehouse, in Condition Codes 1
through 5 (see FMR 102-36.2400 should not be cannibalized. This property
should be reissued to components for use in lieu of new procurement.

Unrequired REPARABLE property in Condition Codes 6 through 9 may be
cannibalized when such action is found to be justified in filling
equipment requirements. Written justification must be submitted to the
Chief, PPMO, or the designated representative, for an approval before
any cannibalization may take place. Forms and format to be used for
documentation shall be produced by the components.

### 103-43.303 RETENTION OF CUSTODY

The component PPMO will retain custody of property declared excess until
receipt of dispositions instructions from GSA.

At the end of 180 days after the property is made available to GSA, the
holding component may, upon notification to the appropriate regional GSA
Federal Supply Service Bureau, elect to assume the responsibility to
complete the disposal, i.e., utilization, sale, scrap, abandonment,
and/or destruction, of the property complying with all the processing
requirements of FPMR Subchapter H.

### 103-43.304 REPORTING REQUIREMENTS

#### 103-43.304-1 REPORTING 

Report excess personal property as follows:

A.  Electronically submit the data elements required on the Standard
    Form 120 (SF 120), Report of Excess Personal Property, in a format
    specified and approved by GSA; or

B.  Submit a paper SF 120 to the regional GSA Personal Property
    Management office.

C.  Personal property that has become excess must be reported,
    regardless of the condition code, except as authorized in FMR
    [102-36.145](http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelId=-16530&specialContentType=FMR&file=FMR/Part102-_36.html#wp2019722)
    for direct transfers or as exempted in FMR 102-36.220. HHS shall
    report all excess personal property, including excess personal
    property to which the Government holds title but is in the custody
    of your contractors, cooperatives, or project grantees.

#### **103-43.304-2 EXCESS PERSONAL PROPERTY ON OR WITHIN EXCESS REAL PROPERTY**

HHS components shall follow the procedures at 102-75 in the FMR.

#### 103-43.304-3 PROPERTY AT INSTALLATIONS DUE TO BE DISCONTINUED

HHS components shall follow the procedures in LMM 103-43.304.

[]{#__RefHeading___Toc159986275 .anchor}**103-43.305 PROPERTY NOT
REQUIRED TO BE FORMALLY REPORTED**

**\
**Excess property which is not required to be formally reported,
following LMM 103-43.304, to GSA is a valuable source of supply for
Federal agencies. HHS holding components shall cooperate with GSA
representatives in making information available and in providing access
to the nonreportable excess personal property. Federal agency employees
shall be permitted access to holding components for screening purposes
upon presentation of a valid Federal agency employee\'s identification
card. HHS holding components shall make reasonable efforts to
obtain utilization among Federal agencies of property not covered by GSA
utilization screening processes. In the case of controlled
substances, the solicitation shall be limited to those authorized for
transfer under LMM 103-42.005-50.1. The following excess property shall
not be reported to GSA:

A.  Property determined appropriate for abandonment/destruction (see FMR
    [[102-36.305]{.underline}](http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelId=-16530&specialContentType=FMR&file=FMR/Part102-_36.html#wp2019967)).

B.  Nonappropriated fund property (see FMR
    [[102-36.165]{.underline}](http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelId=-16530&specialContentType=FMR&file=FMR/Part102-_36.html#wp2019750)).

C.  Foreign excess personal property (see FMR
    [[102-36.380]{.underline}](http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelId=-16530&specialContentType=FMR&file=FMR/Part102-_36.html#wp2020060)).

D.  Scrap, except aircraft in scrap condition.

E.  Perishables, defined for the purposes of this section as any
    personal property subject to spoilage or decay.

F.  Trading stamps and bonus goods.

G.  Hazardous waste.

H.  Controlled substances.

I.  Nuclear Regulatory Commission-controlled materials.

J.  Property dangerous to public health and safety.

K.  Classified items or property determined to be sensitive for reasons
    of national security.

[]{#__RefHeading___Toc159986276 .anchor}**103-43.306 ASSISTANCE IN
EMERGENCY AND MAJOR DISASTER RELIEF\
**\
Upon declaration by the President of an emergency or a major disaster,
you may loan excess personal property to State and local governments,
with or without compensation and prior to reporting it as excess to GSA,
to alleviate suffering and damage resulting from any emergency or major
disaster Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5121-5206) and Executive Order 12148 (3 CFR, 1979 Comp.,
p. 412), as amended). If the loan involves property that has already
been reported excess to GSA, you may withdraw the item from the disposal
process subject to approval by GSA. You may also withdraw excess
personal property for use by your agency in providing assistance in
disaster relief. You are still accountable for this property and your
agency is responsible for developing agency-wide procedures for recovery
of such property.

[]{#__RefHeading___Toc159986277 .anchor}**103-43.307 ITEMS REQUIRING
SPECIAL HANDLING**

#### 103-43.307-1 CONTRACTOR INVENTORY

> HHS components may authorize any of their contractors or their
> subcontractors to retain or dispose of any contractor inventory
> pursuant to Federal Acquisition Regulation (48 CFR Subpart 45.6). In
> contractor- owned contractor inventory, compliance with utilization
> procedures should occur before HHS components exercise the option to
> take over such property. When utilization efforts find an activity
> with a need for the property and will accept transfer within HHS or
> another federal agency, the HHS component will accept transfer of the
> property. Appropriate action will be taken by the activities or
> federal agencies to get title for the Government.

#### 103-43.307-2 HAZARDOUS MATERIALS

> Special Handling requirements for excess hazardous materials and
> certain other categories of property are prescribed in LMM 103-42.

####  103-43.307-3 CONDITIONAL GIFTS FOR DEFENSE PURPOSES

HHS components should ask assistance of the regional GSA office in this
matter when necessary.

#### 103-43.307-4 CONDITIONAL GIFTS TO REDUCE THE PUBLIC DEBT

HHS components should ask assistance of the regional GSA office in this
matter when necessary.

#### **103-43.307-5 UNCONDITIONAL GIFTS**

> HHS components and employees representing HHS shall contact the
> regional GSA office and seek assistance in matters of unconditional
> gifts.

#### 103-43.307-6 INTANGIBLE PERSONAL PROPERTY

> Bonds, notes, or other securities authorized to be disposed of by the
> Secretary of the Treasury, are to be reported through agency
> headquarters to the Office of Acquisition Management and Policy
> (OAMP), Assistant Secretary for Administration and Management (ASAM),
> for obtaining disposal instructions from the Department of the
> Treasury. Other excess intangible property will be reported to GSA
> Personal Property Management Division (FBP), Washington, D.C. 20406
> and shall not be transferred or disposed of without prior approval of
> GSA.

#### 103-43.307-7 NONAPPROPRIATED FUND PROPERTY

> Property acquired with nonappropriated funds may be transferred with
> reimbursement from the transferee to the owning activity. Agreement
> between the two activities concerning a fair reimbursement price shall
> be made before the transfer. The fair price shall not be more than may
> be expected if the item were sold.

#### 103-43.307-8 (RESERVED)

#### **103-43.307-9 PASSENGER MOTOR VEHICLES**

> Excess passenger motor vehicles, in usable condition and not requiring
> refurbishment, may be acquired to upgrade existing vehicles provided
> the replaced vehicles are reported within 30 days as excess, and
> reimbursement is not involved. See [FPMR
> 101-43.307-9](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-43&SECTION=307-9&YEAR=1999&TYPE=TEXT).

#### 103-43.307-10 PRINTING, BINDING, AND BLANKBOOK EQUIPMENT AND SUPPLIES

> Excess machinery, equipment, material, and supplies for printing,
> binding, and blankbook work shall be reported to the Public Printer
> for possible transfer to the Government Printing Office before
> reporting the equipment to GSA as excess. Address the report to:
> Government Printing Office (GPO), Customer Service Manager, North
> Capitol and H Streets, N.W., Washington, D.C. 20401. Property not
> needed by the GPO shall be reported to GSA. See [FPMR
> 101-43.307-10](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-43&SECTION=307-10&YEAR=1999&TYPE=TEXT).

#### 103-43.307-11 (RESERVED)

####  **103-43.307-12 SHELF-LIFE MATERIALS **

> Holding components with quantities of shelf-life items shall contact
> their regional GSA office for expeditious disposal instructions. See
> [FPMR
> 101-43.307-12](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1).

####  **103-43.307-13 MEDICAL SHELF-LIFE ITEMS HELD FOR NATIONAL EMERGENCY PURPOSES**

> These items that become excess will be disposed of following the
> procedures in [FPMR
> 101-43.307-13](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-43&SECTION=307-13&YEAR=1999&TYPE=TEXT).

### 103-43.308 WITHDRAWALS AND CORRECTIONS

#### 103-43.308-1 WITHDRAWALS

> Requests for withdrawal of property already reported to GSA shall be
> submitted on an
> [SF-120](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF120.PDF) or
> other method authorized by GSA. Disposition of the property shall not
> be made until receipt of withdrawal approval, by the holding activity,
> from GSA.

#### 103-43.308-2 CORRECTIONS

> Corrections to reports shall be submitted on an
> [SF-120](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF120.PDF) or
> other method authorized by GSA.

[]{#__RefHeading___Toc159986283 .anchor}**103-43.309 TRANSFERS OF EXCESS
PROPERTY**

#### 103-43.309-1 AGENCIES ELIGIBLE

> Transfers of excess property may be made among Federal agencies
> (including their cost-reimbursement contractors, cooperative agreement
> recipients, and project grantees), the Senate, The House of
> Representatives, The Architect of the Capitol, and the government of
> the District of Columbia. If any question arises on eligibility of an
> agency, the component shall contact the regional GSA office for
> assistance.

#### **103-43.309-2 INFORMATION ON AVAILABILITY**

> GSA provides information regarding the availability in other
> Government agencies of excess personal property. Methods and
> techniques that may be used to obtain this information may be found in
> FMR 102-36.90.
>
> HHS property management components shall encourage other federal
> agencies to screen the unrequired property that has survived the
> 21 day period for internal screening and not reported to GSA.
> Information on availability of this unrequired property held by HHS
> property management components shall be given to other federal
> agencies any time an inquiry is received. This screening may eliminate
> the need to report the items to GSA.

#### **103-43.309-3 REIMBURSEMENT**

> Normally excess personal property will be transferred without
> reimbursement. Fair value reimbursement for the transfer of excess
> personal property is required only in those circumstances specifically
> set forth in FMR 102-36.80.

#### 103-43.309-4 TRANSFER FOR REDISTRIBUTION

> Property declared excess may be transferred to GSA or retained by the
> holding activity (for a period not to exceed 180 days) before
> redistribution to the transferee. Determinations whether to transfer
> will be made by the appropriate GSA Regional office. HHS holding
> components shall cooperate with GSA in the redistribution efforts.

#### **103-43.309-5 PROCEDURE FOR EFFECTING TRANSFER**

> All transfers made by an HHS component to another Federal agency shall
> be made using the [SF-122, Transfer Order Excess
> Personal Property](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF122.PDF).
> The
> [SF-122](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF122.PDF)
> shall be approved for transfer by the appropriate GSA office, except
> in direct transfers. Direct transfer is a cost effective and efficient
> method of transferring property from one federal agency to another.
> This method shall be used whenever possible. 

A.  Direct transfers (see FMR 102-36.145) to other federal agencies
    requesting unrequired reportable property, that has survived the 21
    day period for internal screening and not reported to the GSA or
    nonreportable property that is not reserved for special screening,
    shall be aggressively completed following the procedures listed
    below. 

B.  All requests to screen unrequired property (that has survived the 21
    day period for internal screening and not reported to the GSA) by
    other federal agencies shall be honored immediately. 

C.  Direct transfers to other federal agencies by HHS property
    management components shall be accomplished using the
    [SF-122](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF122.PDF)
    signed by the receiving agencies Property Management Officer or
    Property Accountable Officer. GSA approval for this type transfer is
    not required. Direct transfers do not in any way show favoritism to
    any federal agency with an aggressive screening program. Any federal
    agency in need of an item is supposed to aggressively try to acquire
    the property from unrequired property of other federal agencies
    before spending monies to procure new like items (Refer to FMR
    102-36.65 and FMR 102-36.70) Direct transfers aid in moving
    unrequired property out of the warehouse and helps eliminate lengthy
    storage and handling costs.

D.  Reportable property under [LMM
    103-43.304-1](http://knownet.hhs.gov/log/LMM/103-43_3.htm#103-43.304-1 REPORTING.%23103-43.304-1 REPORTING.),
    not yet reported to GSA, may be directly transferred to another
    federal agency by an HHS component. The total acquisition costs of
    reportable property directly transferred to another federal agency
    cannot exceed \$5000 per day. 

E.  Nonreportable property, under [LMM
    103-43.305](http://knownet.hhs.gov/log/LMM/103-43_3.htm#103-43.305 PROPERTY NOT REQUIRED TO BE FORMALLY REPORTED.%23103-43.305 PROPERTY NOT REQUIRED TO BE FORMALLY REPORTED.),
    may be transferred, as above, except the total acquisition value for
    the direct transfer cannot exceed \$25,000 per day.

F.  HHS components shall furnish the appropriate GSA office a copy of
    each direct transfer made within 10 work-days after the transfer.

[]{#__RefHeading___Toc159986287 .anchor}**103-43.310 COSTS AND
PROCEEDS**

**\
**\
Care and handling costs of excess personal property pending disposition
will be borne by the HHS holding component. Direct costs incident to
transfers will be borne by the transferee. When reimbursement for fair
value is made, the transferee shall deposit the proceeds in the Treasury
to miscellaneous receipts or the appropriate HHS component account. A
copy of the deposit action will be provided to the HHS payment receiving
component by the transferee. See [FPMR
101-43.310-2](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-43&SECTION=310-2&YEAR=1999&TYPE=TEXT).\
\
**103-43.311 DETERMINATION OF EXCESS AS SURPLUS**

#### ** **103-43.311-1 REPORTABLE PROPERTY

> Reportable excess personal property will be determined to be surplus
> by GSA. This normally occurs 60 days after receipt by GSA of a report
> of excess personal property.

#### 103-43.311-2 NON-REPORTABLE PROPERTY

> Holding components shall make determinations of surplus of
> nonreportable excess personal property. Property shall not become
> surplus until it has been made available for use by other Federal
> agencies for a minimum of 21 days.

#### **103-43.311-3 PROPERTY NOT UTILIZED**

> Property determined to be surplus by the GSA or an HHS holding
> component shall be made available for donation screening
> following [FPMR
> 101-44](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfr101-44_99.html)
> for 21 days after Surplus Release Date. If the property survives the
> donation screening period, the HHS holding component may sell the
> property following procedures in FMR 102-38.75 and FMR 102-38.80.
>
> Property that requires reimbursement shall not be made available for
> donation screening upon declaration of surplus. This property shall be
> reported for sale.

#### **103-43.311-4 HAZARDOUS MATERIALS**

Hazardous materials shall be reported to GSA following LMM 103-42 and
[FPMR
101-42](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfr101-42_99.html). 

[]{#__RefHeading___Toc159986290 .anchor}**103-43.312 USE OF EXCESS
PROPERTY ON COST REIMBURSEMENT TYPE CONTRACTS**

**\
**Excess personal property shall be considered by HHS components as an
acquisition source for cost-reimbursement type contracts according to
priorities that are established in LMM 103-60.152. Accounting and
control of the property while in the hands of contractors will be
accomplished following the provisions of LMM 103-60.54. Disposal will be
accomplished following provisions of [FPMR
101-43](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfrv2_99.html#101-1).

### 

[]{#__RefHeading___Toc159986291 .anchor}**103-43.313 USE OF EXCESS
PERSONAL PROPERTY ON COOPERATIVE AGREEMENTS**\
\
HHS components may obtain excess personal property for the purpose of
furnishing the property under cooperative agreements (Refer to [FPMR
101-43.313](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-43&SECTION=313&YEAR=1999&TYPE=TEXT)).
Accounting and control of the property while in the hands of the
recipient shall be accomplished following the provisions of 103-60.

[]{#__RefHeading___Toc159986292 .anchor}**103-43.314 USE OF EXCESS
PROPERTY ON GRANTS\
**\
HHS Grantees may be furnished excess personal property provided:\
\
NOTE: OPDIVs may implement supplemental policy for the use of excess
property on grants.

The grantee is an institution or organization holding a federally
sponsored grant and is a public agency or is non-profit. In certain
instances grants may be awarded to for-profit organizations. In those
cases the provisions of 45 CFR Part 74, Subpart AA, Sections 74.701 and
74.710 apply for the utilizations of personal property.

A.  Authorization is in the grant document.

B.  Acquisition will result in enhancement of the product or benefit
    from the grant.

C.  The property will be placed into immediate use.

D.  The transfer is approved by the granting organization\'s Property
    Management Officer and the grantee\'s property accountable
    representative.

Excess personal property will be furnished under the provisions of [FPMR
101-43.314](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-43&SECTION=314&YEAR=1999&TYPE=TEXT)
and will be accounted for under the terms of LMM 103-60. Disposal will
be accomplished under the provisions of [FPMR
103-43](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfr101-43_99.html)
unless title is vested in the grantee. Disposal of personal property
loaned to for-profit organizations will be disposed of according to 45
CFR Part 74, Subpart AA, Section 74.710(e). Government personal property
loaned to not-for- profit grantees, title to which has been retained by
the Government, will be disposed of following [FPMR
101-43](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfr101-43_99.html).

HHS components may obtain excess personal property for transfer to a
project grantee by depositing an amount equal to 25 percent of the
original acquisition cost of the property to the U. S. Treasury as
miscellaneous receipts. (See [FPMR
101-43.314(b)(1)](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-43&SECTION=314&YEAR=1999&TYPE=TEXT).

[]{#__RefHeading___Toc159986293 .anchor}**103-43.315 CERTIFICATION OF
NON-FEDERAL AGENCY SCREENERS\
\
**A circumstance may arise when a non-federal employee may serve as a
screener for transfer of excess property. An example of this situation
might occur within an IHS tribal entity under Public Law 638. Certifying
non-federal screeners for transfer of excess property will be done by
HHS components sponsoring the screener through the appropriate GSA
office. To certify non-federal screeners for transfer of excess
property, a request on letterhead stationary that includes a list of
persons, titles, phone and fax information shall be submitted to the HHS
National Utilization Officer (NUO) and to GSA.

## SUBPART 103-43.4 Reserved

# PART 103-44 DONATION OF PERSONAL PROPERTY

### 103-44.000 Scope

This part prescribes policies and methods governing the donation of HHS
surplus property. Additional guidelines regarding the donation of
hazardous materials and certain other categories of property prescribed
in LMM 103-42 and FMR 101-37.

### 103-44.001 Definitions

Definitions of terms in this Subpart are found in the FMR 102-37.

[]{#__RefHeading___Toc159986298 .anchor}**[SUBPART 103-44.1 GENERAL
PROVISIONS\
]{.underline}\
****103-44.101 WITHDRAWAL OF DONABLE PROPERTY\
\
**HHS components may withdraw surplus personal property that has been
set aside or approved for donation with the prior approval of GSA. In
emergencies (i.e., disasters, programmatic needs) requiring immediate
action, GSA approval is not required. However, GSA shall be notified
immediately of the action taken. Documentation will be furnished upon
request by GSA.

### 103-44.102 COOPERATION OF HHS COMPONENTS

HHS components, that are holding excess/surplus property, shall
cooperate with all duly authorized participants in the donation program.
Screeners authorized by the General Services Administration (GSA), and
possessing a valid GSA form 2946, Screener\'s Identification, shall be
afforded access to surplus property set aside for donation. HHS holding
components shall provide a period of 21 calendar days following the
surplus release date (SRD) for donation screening. Surplus property
requested in writing by the donee shall be retained for a maximum of 42
days from the surplus release date (SRD) until receipt of an approved
[SF-123, Transfer Order Surplus Personal
Property](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF123.PDF).
Surplus property will not be released by the holding activity for
donation until an
[SF-123](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF123.PDF)
bearing the signed approval of the appropriate GSA official is received.

When an approved
[SF-123](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF123.PDF) is
received, by the holding component, the recipient will be notified, in
writing, that the property is available for removal by their agency. The
recipient will be given 15 days to pick up property after the official
notification is received.

### 103-44.103 RESERVED

### 103-44.104 COSTS INCURRED INCIDENT TO DONATION

Refer to [FMR
102-37.55](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.55.htm).

[]{#__RefHeading___Toc159986302 .anchor}**103-44.105 ASSISTANCE IN MAJOR
DISASTER RELIEF**

The Disaster Relief Act of 1974 authorizes Federal assistance to States,
Local Governments and relief organizations. Assistance requested by the
Federal Emergency Management Agency through the General Services
Administration shall be honored expeditiously. (See [FPMR
101-44.105](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-44&SECTION=105&YEAR=1999&TYPE=TEXT)).
FMR 102-37.550

During any Disaster Relief effort, rely on the advice and guidance of
the local GSA representative.

[]{#__RefHeading___Toc159986303 .anchor}**103-44.106 RESERVED\
\
****103-44.107 DONATION OF PROPERTY WITHDRAWN FROM SALE\
\
**Requests for such withdrawals must be made by donees to GSA. HHS
holding agencies shall not act on such requests presented directly to
them from donees. (See [FMR
102-37.85](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-37.85.htm))

[]{#__RefHeading___Toc159986304 .anchor}**103-44.108 DONATION OF SPECIAL
CATEGORIES OF PROPERTY\
**\
Special instructions from GSA on a case by case basis apply for donation
of the special categories of property.

#### 103-44.108 -1 Special Handling or Use Conditions

Refer to [FMR 102-37.40(a) through
(i)](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-37.40.htm)
and FMR
[102-37.455](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-37.455.htm).

#### 103-44.108-9 DONATION OF VESSELS

Refer to [FMR
102-37.455(a)](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-37.455.htm)
and
[102-37.460](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-37.460.htm)

#### 103-44.108-10 \[RESERVED\]

**\
\
**[]{#__RefHeading___Toc159986305 .anchor}**103-44.109 DONATION
SCREENING PERIOD**

**\
**The established screening period for both reportable and
non-reportable donable surplus property is 21 calendar days following
the surplus release date.

[]{#__RefHeading___Toc159986306 .anchor}**103-44.110 TRANSFER ORDERS FOR
SURPLUS PERSONAL PROPERTY\
**

This paragraph applies to donees requesting surplus personal property
from HHS holding components. (See [FMR
102-37.30](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-37.30.htm))\
**\
****103-44.111 PREPARATION AND PROCESSING OF TRANSFER ORDERS\
\
**This part applies to Donees. (See [FMR
102-37.50](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-37.50.htm))\
**\
****103-44.112 APPROVAL OR DISAPPROVAL OF TRANSFER ORDERS\
\
**HHS holding components shall not release surplus property held for
donation until they have received an [SF
123](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF123.PDF) bearing
the signed approval of the appropriate GSA regional official.

[]{#__RefHeading___Toc159986307 .anchor}**103-44.113 REJECTION OF
PROPERTY APPROVED FOR TRANSFER\
\
**This paragraph applies to donees and GSA. (See [FMR
102-37.65](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-37.65.htm))\
**\
****103-44.114 PICKUP OR SHIPMENT**

Surplus property requested by an authorized donee shall be retained up
to 42 calendar days pending receipt of an approved
[SF-123](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF123.PDF). At
the end of the 42 day period and an approved
[SF-123](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF123.PDF) is
not received by the holding component, the holding component may proceed
with the sale or other authorized disposal of the property.

Upon receipt of an approved
[SF-123](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF123.PDF) from
an authorized donee, the holding component shall promptly notify the
transferee of the availability of the property. The transferee will
remove the property within 15 days from the date of receipt of
notification.

The transferee is responsible for removing the property. The Property
Management Officer or other representatives of the HHS holding component
shall not act as the agent or shipper for the transferee.

HHS holding components will adhere to the specific time frames of the
procedures described in this section to assist in reducing storage
congestion of surplus donable property.

[]{#__RefHeading___Toc159986308 .anchor}**103-44.115 OVERAGES AND
SHORTAGES\
\
**This paragraph concerns the transferee and GSA. (See [FMR
102-37.70](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-37.70.htm))

### 103-44.116 CERTIFICATION OF SCREENERS

HHS holding components shall not permit prospective donees to screen
surplus donable property unless donees have in their possession an
approved GSA Form 2946, Screener\'s Identification. 

Prospective screeners without proper identification shall be referred to
the GSA Regional office nearest the HHS holding activity for
instructions on becoming an authorized screener.

[]{#__RefHeading___Toc159986310 .anchor}**103-44.117 RECOVERY OF
PROPERTY FOR FEDERAL USE\
\
**Requirements will be coordinated with the appropriate GSA regional
office who will arrange for recovery with donees.\
**\
****103-44.118 NONDISCRIMINATION\
\
**Donees must comply with the provisions of [FMR
102-37.445(d)](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-37.445.htm).

## **SUBPART 103-44.2 DONATIONS TO PUBLIC AGENCIES AND ELIGIBLE NONPROFIT TAX-EXEMPT ACTIVITIES**

### 103-44.200 SCOPE

This subpart prescribes policies, authorities and responsibilities
governing the donation of HHS surplus personal property to Public
Agencies, Nonprofit Educational and Public Health Activities.

### 103-44.201 AUTHORITY

Only the Administrator of GSA is authorized to transfer or direct the
transfer for donation to states of surplus personal property that is
under the control of HHS components. HHS activities may make direct
donations of surplus personal property only under the provisions of [FMR
102-37.10](http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&specialContentType=FMR&file=FMR%2FPart102-_37.html&channelId=-16530).

### 103-44.202 STATE PLAN OF OPERATION

Each State Agency for Surplus Property (SASP) and GSA are responsible
for this operation. (See [FMR
102-37.140](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.140.htm)
and
[102-37.145](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.145.htm)).

### 103-44.203 ALLOCATION OF DONABLE PROPERTY

The criteria under which donable property is allocated among the states
is [FMR
102-37.90](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.90.htm).
This is a function of the GSA Regional Offices. 

### 103-44.204 CERTIFICATION AND AGREEMENT BY A STATE AGENCY

States that request the transfer of donable surplus personal property
must certify and agree to certain terms and conditions. These are set
forth in [FMR
102-37.200](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.200.htm)
and
[102-37.205](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.205.htm).
Certifications and agreements are a function of GSA. HHS components are
not a part of this operation.

### 103-44.205 PROPERTY IN THE POSSESSION OF A STATE AGENCY

[FMR
102-37.245](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.245.htm)
describes the management procedures that a State agency or an eligible
donee must agree to when it receives surplus personal property from the
Federal Government.

### 103-44.206 COOPERATIVE AGREEMENTS

HHS components may enter into cooperative agreements with a State agency
for the use of property, facilities, personnel, and services. To do so
the HHS component must be designated by GSA for this purpose.

### 103-44.207 ELIGIBILITY

HHS components are not involved in deciding eligibility of agencies in
the individual states. ([See FMR
102-37.135](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.135.htm))

### 103-44.208 PROPERTY DISTRIBUTED TO DONEES

The GSA applies the methods and procedures in [FMR
102-37.100](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.100.htm)
for the distribution of surplus property to donees.

[]{#LMM_103_44_300_SCOPE_ .anchor}

## **SUBPART 103-44.3 DONATIONS OF FOREIGN EXCESS PROPERTY**

**103-44.300 SCOPE\
\
**This subpart prescribes policies and methods governing the return of
foreign excess personal property to the United States for donation. \
**\
****103-44.301 HOLDING COMPONENT RESPONSIBILITIES\
\
**HHS components, as appropriate, shall make available to GSA for
selection and return to the U.S. for donation foreign excess medical
materials or supplies, prior to any sale, exchange, lease or donation
outside the United States.\
**\
****103-44.302 DONATION SCREENING\
\
**Screening of foreign excess property will be accomplished on-site by
the duly authorized representative of a state agency for surplus
property. The Screening period shall be at least 10 calendar days unless
otherwise agreed to by the holding activity and GSA. (See [FMR
102.37.45](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.45.htm))

[]{#__RefHeading___Toc159986323 .anchor}**103-44.303 DONATION APPROVAL\
**\
GSA will approve donations of foreign excess personal property. HHS
components will not release such property for donation until an [SF-123,
Transfer Order Surplus Personal
Property](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF123.PDF) has
been received bearing signed GSA approval.

[]{#__RefHeading___Toc159986324 .anchor}**103-44.304 SHIPMENT\
\
**HHS components may provide packing, handling, crating and
transportation services for foreign excess personal property for
approved donees only, and on a reimbursable basis only.\
**\
****103-44.305 COSTS INCURRED INCIDENT TO DONATION\
\
**All transportation costs incurred incident to donation, including
packing, handling, and crating, shall be borne by the state agency or
the donee institution receiving the property. HHS components shall bill
the recipient for costs incurred promptly on shipment.\
**\
****103-44.306 STATISTICS AND REPORTS**

See [FMR
37.360](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.360.htm).

## SUBPART 103-44.4 DONATIONS TO SERVICE EDUCATIONAL ACTIVITIES

### 103-44.4.001-50 PURPOSE AND SCOPE

To establish HHS policy, authority, and procedures for the direct
transfer of excess HHS-owned equipment to educational institutions and
other non-profit educational organizations. This policy reflects the
goals of the cited legislative authorities to expedite the current
disposal of property process. Among the benefits of employing these
authorities and procedures are the accomplishment of educational
improvement goals; reduction of storage, handling and other processing
costs; and improved identification/control of under utilized resources.

### 103-44.4.001-50.1 POLICY FOR TRANSFER OF EXCESS HHS-OWNED EQUIPMENT

HHS will actively encourage and support the educational technology goals
of the Stevenson-Wydler Act and [Executive Order
12999](http://knownet.hhs.gov/log/LMM/eo_12999.htm) and other
initiatives to transfer excess education-related equipment to
educational institutions or eligible nonprofit organizations in a fair
and equitable manner. HHS will give highest preference to elementary and
secondary schools. Eligible Education-Related Equipment includes:

1.  Electrical and electronic equipment components

2.  Instruments and laboratory equipment

3.  Medical, dental, veterinary equipment and supplies

4.  Photographic equipment

5.  Communications, detection, and coherent radiation equipment

6.  General purpose data processing equipment and related peripheral
    tools such as printers, modems, routers, and servers, and software
    (dependent on the manufacturer's license/terms), supplies, and
    support equipment

7.  Pumps and compressors, and valves

8.  Books/manuals

9.  Technical/vocational type materials

10. Furniture (computer stands, tables)

11. School supplies (pencils, papers, binders)

Before equipment can be considered for use in a school or non-profit
educational program, an OPDIV shall first determine that its excess
equipment is not needed; and then it shall offer the equipment to other
HHS OPDIV s including any potential priority  donee such as the Indian
Tribes and Tribal organizations (Refer to Executive Order 13021 signed
October 19, 1996) and shall take into account the needs of other
potential recipients (e.g., donees under the McKinney Homeless Act).

OPDIV s may elect to use the GSA surplus property donation program as
another avenue to get education-related equipment to existing eligible
organizations. Although the program does not facilitate the direct
transfer of equipment to schools, it does provide a means by which
schools can obtain equipment through a system designed to ensure the
fair and equitable distribution of F ederal surplus property.

OPDIV property management staff are the experts concerning all personal
property management issues, and they shall be responsible for the direct
transfer of all excess education-related equipment in accordance with
the provisions of the Stevenson- Wydler Technology Innovation Act and
the E.O. 12999. There is no requirement for approval of transfers above
the OPDIV level.

HHS will attempt to provide education-related equipment to those
elementary and secondary schools with the greatest need, such as those
in Federal enterprise communities or empowerment zones. However,
donations are not restricted in any way based on school location or
community characteristics.

Equipment must be used for direct educational purposes. It cannot be
transferred for administrative support of a school, school district or
non-profit organization.

### 103-44.4.002-50 AUTHORITY

This policy is based on the authority for the transfer of excess
education-related equipment as contained in the following:

STEVENSON-WYDLER TECHNOLOGY INNOVATION ACT, Section II (i) Research
Equipment. The Act authorizes the direct transfer of excess research
equipment to educational institutions or nonprofit organizations to
promote technical and scientific education and research activities
without reporting the property to GSA. This program is outside the
Federal excess property program administered by GSA through the State
Agencies for Surplus Property .All accredited public and private
schools, including those with religious affiliations, are eligible. The
education-related property is considered a gift, and title immediately
passes to the school. Title is unconditional and there are no terms and
conditions on the use of the property.

[Executive Order 12999](http://knownet.hhs.gov/log/LMM/eo_12999.htm),
Educational Technology: Ensuring Opportunity for All Children in the
Next Century , signed April 17 , 1996, provides additional flexibility
in the areas of making direct transfers of computers and related
equipment to schools and eligible nonprofit organizations, with
particular preference given to those located in the Federal enterprise
communities and empowerment zones, to help ensure opportunities for all
children in the next century .

The following procedures shall be used to establish a direct transfer
program. The program should be conducted in a fair and equitable manner.

### 103-44.4.003-50 ESTABLISHING THE TRANSFER PROGRAM

A.  Reasonable efforts should be made to notify local schools/non-profit
    organizations when equipment will be available. Methods to promote
    availability of equipment may include newspapers, community
    announcements, electronic bulletin boards, and the Internet. Schools
    should be requested to advise HHS of their interest in the program,
    the types of equipment in which they have an interest, their plan on
    how they will use the equipment, and who is authorized to accept (on
    behalf of the school or non-profit organization) any property which
    may be transferred.

B.  OPDIVs should establish a mechanism ( e.g., a review committee) to
    determine which schools/non-profits should be offered available
    equipment. Also, OPDIVs should work with members of the Federal
    Executive Boards (Federal Executive Boards, as identified in 5
    C.F.R. Part 960, are regional organizations of each Federal
    agency\'s highest local officials), and GSA to promote and
    facilitate the transfer of equipment to eligible recipients.

C.  Each OPDIV will assign a point of contact from within its IRM and
    its Personal Property Management Offices (PPMOs) to handle any
    inquiries relating to the transfer of available excess equipment. In
    the case of specialized research equipment, close coordination is
    required between the potential recipients and the OPDIV\'s technical
    expert for the specialized equipment. This will help ensure that the
    specific uses for the specialized equipment are known and help
    determine whether any special electrical/other installation-related
    requirements must be met to ensure effective use of the equipment.

[]{#__RefHeading___Toc159986330 .anchor}**103-44.4.004-50 OPERATING THE
PROGRAM**

A.  OPDIV PPMOs should maintain information on schools/non-profit
    organizations which indicate an interest in participating in the
    program, and the types of equipment in which they are interested.
    Before property is available for transfer, it should first he
    screened within the HHS for possible reuse. Transfers can be made to
    an individual school, a school district, or eligible non-profit
    educational organization. No formal agreement is necessary to
    transfer equipment under this Act. For HHS personal property
    accountability purposes, use either the HHS-22, Request for Property
    Action, the SF-122, Transfer Order for Excess Property, or transact
    electronically through the HHS Consolidated Unrequired Property
    Information Disposal System (CUPIDS).

B.  OPDIV program offices and PPMOs should coordinate any notification
    to interested schools/non-profits whenever equipment becomes
    available.

C.  Notification should also include a cut-off date for the school to
    indicate interest in available items.

[]{#__RefHeading___Toc159986331 .anchor}**103-44.4.004-50.1 SCREENING OF
AVAILABLE EXCESS EQUIPMENT**

Representatives (possessing appropriate identification) from eligible
organizations should visit the OPDIV PPMOs, including the servicing
utilization and disposal facilities, to determine the specific equipment
that is available at any specific time. These representatives may review
and select any available excess equipment. Property that is desired will
be frozen by the OPDIV PPMO. A freeze may be registered at any stage of
the disposal process, except during HHS internal screening. In the event
of competing requests, HHS shall be given preference for the equipment.

### 103-44.4.004-50.2 TRANSFER OF EDUCATION-RELATED EQUIPMENT

The following actions should be taken to transfer equipment:

A.  Organizations should submit to OPDIV PPMOs a completed transfer
    document (HHS-22, Request for Property Action, Standard Form 122,
    Transfer Order for Excess Personal Property; or other suitable
    transfer document), within 14 calendar days from the date the freeze
    was placed on the property.  Transactions can also be done
    electronically through CUPIDS.

B.  The transfer document should include information containing the
    signature of the appropriate official from the eligible organization
    acknowledging the purpose of the transfer. See Appendix B,
    \"Information to Representatives of Schools/Non-Profit
    Organizations.\"

C.  Each OPDIV Property Management Officer will sign the transfer
    document and approve the transfer to the eligible organization.
    Requests for transfer by HHS activities or other Federal agencies
    take precedence over transfers to eligible activities under the
    provisions of section 203 0) of the Federal Property and
    Administrative Services Act. The OPDIV Property Management Officer
    may request assistance from the OPDIV points of contact (mentioned
    in part V. A. (3) to resolve any competing transfers.

D.  OPDIV Property Management Officers will notify the eligible
    organizations of the property that has been approved for transfer to
    their organization by providing a copy of the transfer document to
    the organization. The PPMO will also advise the acquiring
    organization when the property is available for pickup and removal.

E.  The acquiring organization is responsible for the packing, shipping,
    or transportation costs associated with the transfer. HHS will not
    act as the shipping agent for the acquiring organization.

If no action is taken by the acquiring organization within 14 days, the
PPMO will begin the usual procedures for reporting and disposal to GSA.

[]{#__RefHeading___Toc159986333 .anchor}**103-44.4.004-50.3 SOFTWARE
TRANSFER**

Within the scope of the school/non-profit donation program, software may
also be transferred, either on diskettes or installed on the computer
hard drive. The specifics vary for each item of software, and by company
owning the software. The following are general conditions for donation:

A.  Software may be transferred based on the terms and conditions of the
    software license agreement. Offices will have to consult with the
    OPDIV IRM office for assistance in this regard. (Refer to the HHS
    Guide \"Reuse or Disposition of Personal Computer \[PC\] Software)

B.  Some software development corporations sponsor software donation
    programs which permit organizations purchasing upgrades to donate
    software products to schools/non-profit organizations. By doing so,
    programs like this enable selected schools/non-profits to acquire
    useful copies of software products at no charge. However, the
    licenses for the software are not transferable, and as such, the
    organization will not be eligible for technical support or upgrades.

[]{#__RefHeading___Toc159986334 .anchor}**103-44.4.004-50.4 ANNUAL
REPORTS TO GSA OF TRANSFER**

OPDIV PPMOs shall report transfers to eligible organizations during the
previous fiscal year as part of the Annual Report of Property Furnished
to Non-Federal Recipients. These reports shall be sent to the Office of
Acquisition Management and Policy (OAMP), Assistant Secretary for
Administration and Management (ASAM) which will consolidate this
information and submit it to GSA.

### 103-44.4.005-50 ELIGIBLE ORGANIZATIONS

Eligible organizations for the transfer of educationally useful Federal
equipment are schools or 501c3 certified non-profit organizations that
meet the requirements of the Stevenson-Wydler Technology Innovation Act
and E.O. 12999 and this policy. This includes elementary schools, middle
schools, colleges, and universities. These educational institutions may
be public, private or parochial. In addition, school or 501c3 non-profit
organizations should have a well-planned education program established
or envisioned. The following should be used to evaluate which
schools/non-profits should be offered available equipment:

Schools/non-profits that are requesting excess personal property as part
of an existing or anticipated collaboration with an HHS organization.
Examples include the following:

A.     Adopt-A-School/Partnership Schools.

B.     Schools in Education Reform Initiatives to Promote Excellence.

C.  Schools with the greatest need such as those in Enterprise
    Communities/Empowerment Zones. These schools serve the poorest
    students and lack access to adequate outside resources. These
    schools include:

    Schools in economically depressed areas.

    Inner city schools.

    Rural schools.

D.  Educational organizations that emphasize, math, science, or
    technology.  Examples include:

    Magnet schools.

    Schools with Federally funded research and development projects.

GSA maintains information on the Chief State School Officers and the
Empowerment Zone points-of -contact.

Questions on eligibility of specific organizations should be referred to
the Office of Acquisition Management and Policy (OAMP), Assistant
Secretary for Administration and Management (ASAM) for resolution.

## SUBPART 103-44.5 DONATIONS TO PUBLIC AIRPORTS

### 103-44.500 GENERAL

HHS components may transfer directly to specific public airport
applicants, donable surplus personal property. Such donations require
prior approval of the Administrator of GSA; and, the property must have
been determined by the Administrator of the Federal Aviation
Administration to be essential, suitable, or desirable for the
development, improvement, operation, or maintenance of a public airport.
Authorities, responsibilities and procedures to be used for such
transfers are set forth in [FMR
103-37.520](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.520.htm).

## SUBPART 103-44.6 DONATIONS TO THE NATIONAL AMERICAN RED CROSS

[]{#BM103_44_600_GENERAL_ .anchor}**103-44.600 GENERAL\
**\
Pursuant to section 203(1) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 484) as amended, personal property in
the custody of HHS components, which has been determined to be surplus,
and has been identified as having been processed, produced, or donated
by the American National Red Cross shall be made available for donation
back to the American National Red Cross unless otherwise directed by
GSA. See [FMR
102-37.540](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.540.htm).

[]{#__RefHeading___Toc159986340 .anchor}**103-44.601 DONATION APPROVAL\
\
**The donation of the surplus property by HHS components that the
American Red Cross is eligible to receive, shall not require further
approval by GSA unless the property has an estimated value in excess of
\$500 or, in the case of blood plasma, consists of a quantity in excess
of 1000 units. The GSA Regional Administrator for the area in which the
property is located may approve the official request from the Red Cross
for charitable purposes when the property exceeds these amounts.

[]{#__RefHeading___Toc159986341 .anchor}**103-44.602 COOPERATION OF
HOLDING AGENCIES\
\
**HHS components shall advise the Red Cross National Headquarters, by
letter, Attention: General Supply Office, 17th and D Streets, N.W.,
Washington, D.C. 20006, of surplus property in their custody that meets
the criteria stated in LMM 103-44.600 above. Quantity, description,
condition and location will be provided.\
**\
103-44.603 ACTION BY THE RED CROSS\
\
**When advised by HHS components of available surplus property, the Red
Cross may inspect or request the property. The formal request for
shipment shall be transmitted to the holding component within 20
calendar days from the date of notification. Any approvals required will
be accomplished by the American Red Cross and GSA prior to release by
the HHS holding component.  See [FMR
102-37.550](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.550.htm).**\
**

[]{#__RefHeading___Toc159986342 .anchor}**103-44.604 DONABLE PROPERTY
DETERMINED UNUSABLE BY THE RED CROSS\
\
**See [FMR
102-37.555](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-37.555.htm).

# PART 103-45 SALE, ABANDONMENT OR DESTRUCTION OF PERSONAL PROPERTY

### 103-45.000 Scope 

This part prescribes policies and methods governing disposal by public
sale, abandonment or destruction of Government personal property
(including salvage, scrap, and waste materials) owned by HHS except
foreign excess and the recovery of precious metals. Additional
guidelines regarding the sale , abandonment or destruction of hazardous
materials are prescribed in LMM 103-42 and FPMR 103-42.

### 103-45.001 Definitions 

Definitions of terms in this Subpart are found in the FPMR at
101-45.001.

## SUBPART 103-45.1 GENERAL PROVISIONS

[]{#__RefHeading___Toc159986347 .anchor}**103-45.101 APPLICABILITY**\
\
This part applies to all components of HHS.

[]{#__RefHeading___Toc159986348 .anchor}**103-45.102 NEEDS OF FEDERAL
AGENCIES HAVE PRIORITY**\
\
Any Federal Agency expressing a need for personal property shall have
priority over any disposal. However, such needs must be made known to
the holding or selling agency prior to the actual removal from
Government control for sales. Transfer will then be made to the
requesting agency following the policy contained in 103-43.3 for
utilization of excess property.

[]{#__RefHeading___Toc159986349 .anchor}**103-45.103 SALES
RESPONSIBILITIES\
**

#### 103-45.103-1 RESPONSIBILITIES OF THE GENERAL SERVICES ADMINISTRATION (GSA)

> The responsibilities of the GSA regarding sales of personal property
> for HHS components shall be found in the [FPMR at
> 101-45.103-1](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-45&SECTION=103-1&YEAR=1999&TYPE=TEXT).

#### **103-45.103-2 RESPONSIBILITIES OF HHS**

See also [FMR
102-38.45](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-38.45.htm).
HHS holding components shall be responsible for:

> Providing the appropriate GSA regional office with the following
> information:

A.  A note shall be attached if requesting permission to hold the sale
    on-site. 

B.  Accounting data for appropriate application of gross proceeds.

C.  Transporting property to a consolidated sales site when agreed to by
    the component and GSA.

D.  Providing for the inspection of property by prospective bidders.

E.  Providing facilities for the conduct of sales and the essential
    administrative, clerical or labor assistance when requested by GSA.

F.  Assisting in the physical lotting of property to be sold.

[]{#__RefHeading___Toc159986351 .anchor}**103-45.104 CARE AND HANDLING
PENDING DISPOSAL\
**\
HHS components shall be responsible for all the costs connected with the
care and handling of its property pending disposal.

[]{#__RefHeading___Toc159986352 .anchor}**103-45.105 EXCLUSIONS AND
EXEMPTIONS TO GSA SALES**

After the required screening is completed, components may elect to sell
personal property, except hazardous material, where the estimated
proceeds from the sale will not exceed \$5,000. GSA shall be notified of
these local sales by HHS components.

Sales that are anticipated to exceed \$5,000 must be approved in advance
by the appropriate GSA regional office. A copy of the approval will be
kept with the sale records. 

[]{#__RefHeading___Toc159986353 .anchor}**103-45.106 PROPERTY CONTROLLED
BY OTHER LAW\
**\
No HHS property shall be disposed of in violation of any applicable
law.\
\
**103-45.107 HHS HOLDING COMPONENTS COMPLIANCE FUNCTION\
**\
HHS components shall refer to and follow the directions of the [FPMR at
101-45.107](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-45&SECTION=107&YEAR=1999&TYPE=TEXT)
for holding agency compliance.

## SUBPART 103-45.3 SALE OF PERSONAL PROPERTY

[]{#BM103_45_300_SCOPE_ .anchor}**103-45.300 SCOPE**

This subpart prescribes policies and methods governing the disposal of
Government property by sale.\
\
**103-45.301 POLICY**

GSA will act as the sales agency of the Government in the sale of
personal property under control of HHS components including surplus,
contractor\'s government-owned inventory, and property designated to be
sold for replacement except for property exempted under LMM 103-45.105.

[]{#__RefHeading___Toc159986356 .anchor}**103-45.302 SALE TO GOVERNMENT
EMPLOYEES**

HHS employees are permitted to purchase Government personal property.
However, when GSA authorizes a component of HHS to sell Government
personal property, sales shall be prohibited to HHS employees who are
accountable for or manage the property, or are involved with the sale of
the property. The term employee as used in this section includes an
agent or immediate member of the household of the employee. See [FMR
102-38.180](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-38.180.htm).\
\
**103-45.303 REPORTING PROPERTY FOR SALE**

A. Reportable property that components have reported to GSA on an [SF
120, Report of Excess Personal
Property](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF120.PDF),
for utilization and screening that is not transferred or donated, will
be programmed for sale by the appropriate GSA regional office unless
exemption is made under LMM 103-45.105.\
\
NOTE: Property returned to the component by the GSA as uneconomical for
sale by the GSA shall be considered as \"SALVAGE\". Components shall
follow LMM 103-43.100-50.005B2b for disposal of the property.\
\
B. Non-reportable property not required to be reported for utilization
and screening and any required donation screening that has
been completed will be reported to the appropriate GSA regional office
on an [SF 126, Report of Personal Property for
Sale](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF126.PDF) by the
responsible component. Commercial terminology will be used in fully
describing the property on the [SF
126](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF126.PDF).\
\
NOTE: Property returned to the component by the GSA as uneconomical for
sale by the GSA shall be considered as \"SALVAGE\". Components shall
follow LMM 103-43.100-50.005B2b for disposal of the property.\
\
C. Property declared surplus and programmed by GSA for sale and still in
the possession of the HHS component, that component will
afford prospective bidders all information available to the maximum
extent possible during the inspection period prescribed in the sales
offering. However, no information will be provided to a prospective
bidder that is not available to all bidders.\
\
D. After full payment has been received from a successful bidder
(buyer), the GSA regional office will notify the holding activity by
copy of the GSA Form 27, Notice of Award, that property may be released
to the purchaser. Upon completion of a sale, the holding activity will
be provided additional copies of the GSA Form 27 for use as an internal
accounting document. If a purchaser fails to remove property within the
period specified, the GSA regional office will be advised of this fact,
so appropriate action may be taken.\
\
E. Delivery of motor vehicles to purchasers will be evidenced by
submission to the purchaser of a completed copy of SF 97, The United
States Government Certificate of Release of Motor Vehicle. The form will
be signed according to requirements established by component selling the
vehicle. Great care shall be exercised by components to prevent blank
copies of SF 97 from being obtained by unauthorized persons.

[]{#__RefHeading___Toc159986357 .anchor}**103-45.304 SALES METHODS AND
PROCEDURES\
**\
HHS components that want to conduct sales of personal property shall
contact the GSA Region Sales office and request assistance. The sales
methods and procedures are set forth in [FMR
102-38.75](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-38.75.htm).\
\
**103-45.306 CONTRACTOR INVENTORY\
**\
Contractor and grantee inventory that has been determined to be surplus
will be sold in the same manner as other surplus property. Consult the
contract property administrator and/or component property manager for
further guidance.\
\
**103-45.307 PROCEEDS FROM SALES\
**\
Proceeds from sales of HHS surplus property will normally be assigned to
the Treasury\'s miscellaneous receipts. Components may apply proceeds in
whole or as a partial payment for similar items required for replacement
purposes, or in contractor inventory, as credit to contract costs. [See
FMR
102-38.295](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-38.295.htm)
and
[102.38.300](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-38.300.htm).\
\
**103-45.309 SPECIAL CLASSES OF PROPERTY\
**\
Special classes of property for purposes of this part are those listed
in [FPMR
101-45.309-1](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-45&SECTION=309-1&YEAR=1999&TYPE=TEXT)
to
[101-45.309-12](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-45&SECTION=309-12&YEAR=1999&TYPE=TEXT)
that requires different handling.\
\
**103-45.314 FEDERAL EXCISE TAXES\
**\
HHS components do not collect or handle these taxes. Any questions on
these taxes shall referred to the Internal Revenue Service.

## SUBPART 103-45.9 ABANDONMENT OR DESTRUCTION OF PERSONAL PROPERTY

[]{#__RefHeading___Toc159986359 .anchor}**103-45.900 SCOPE\
**\
This subpart prescribes the policies and methods governing the
disposition of personal property by abandonment or destruction within
HHS components. Additional guidelines regarding the abandonment or
destruction of hazardous materials are prescribed in LMM 103-42 and
[FPMR
101-42](http://www.access.gpo.gov/nara/cfr/waisidx_99/41cfr101-42_99.html).

#### 103-45.900-1 GENERAL

> Abandonment or destruction is the culmination of a series of efforts
> to ensure maximum utilization of equipment, and is the final step of
> the disposal process that will result in the removal of equipment from
> the official property record when there is no further use to be
> derived from its retention. The normal disposal sequence is
> utilization, donation, sale and abandonment/destruction. OS, OPDIVs,
> and ROs shall develop abandonment or destruction operating procedures
> to include \"NOTICE OF ABANDONMENT\", \"NOTICE OF DESTRUCTION\"
> displays, abandonment or destruction certificates and any other
> statements, certificates, or notices needed to fully provide a clear
> record and audit trail of the action. Great care shall be taken when
> producing the operating procedures to provide for full justification
> and documentation that will insure audit trail visibility of all
> abandonment or destruction dispositions. Federal regulations covering
> abandonment or destruction of personal property are contained in the
> [FPMR 
> 101-45.9](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-45&SECTION=901&YEAR=1999&TYPE=TEXT).

#### **103-45.900-2 WHEN TO INITIATE ABANDONMENT OR DESTRUCTION PROCEDURES**

> Property returned to the component by the GSA as uneconomical for sale
> by the GSA shall be considered as \"SALVAGE\".   Components shall
> follow LMM 103-43.100-50.005B2b for disposal of this property. 

[]{#BM103_45_1000_SCOPE_ .anchor}

## SUBPART 103-45.10 RECOVERY OF PRECIOUS METALS

**103-45.1000 SCOPE\
**\
This subpart prescribes polices, procedures and environmental
considerations for recovery of precious metals from excess and surplus
personal property. \
\
**103-45.1001 GENERAL\
**\
The market value of the precious metals is usually far greater than the
recovery cost. Recovery also helps conserve valuable resources and
benefits the environment by reducing pollution. It is the responsibility
of the generating component to insure untreated hypo solution does not
enter a waste stream leading to the environment. Installation of Silver
Recovery Systems is the responsibility of the program user (i.e.,
Photography Laboratories, X-Ray Activities, etc.) unless recovery is
accomplished through commercial service/sales contracts. Technical
assistance and disposal of recovered precious metals will be provided by
the component property management activities. Precious metals designated
for recovery are gold, silver, and metals of the platinum group.
Examples of precious metal bearing material, scrap and waste include
used photographic fixing (hypo) solution, photographic/X-ray film,
electronic/ADPE equipment; welding and brazing wire; anodes, batteries,
dental scrap and alloys. Recovery of precious metals shall be expanded
to the maximum extent practical.\
\
**103-45.1002 HHS COMPONENT RESPONSIBILITIES\
**\
Each HHS component is responsible for implementation of a precious metal
recovery program to include designation of a Precious Metals Recovery
Program Monitor (PMRPM), surveys, recovery operations, internal audits,
compliance with environmental laws concerning heavy metals, and
submission of annual precious metals reports. Each component shall
identify new activities that have the potential for generating
recoverable precious metals. 

#### **103-45.1002-1 PRECIOUS METALS RECOVERY SURVEYS**

> Components shall identify those activities that generate materials
> bearing precious metals. Components generating the material will be
> surveyed by the PMRPM to obtain information regarding actual or
> potential amount of recovery. Estimates of potential recovery may be
> obtained through use of testing papers for hypo solution; various
> charts, tables and scales for scrap film or other acceptable methods.

#### **103-45.1002-2 HHS COMPONENT REPORTING REQUIREMENTS**

> Annually each component generating precious metals scrap, will submit
> a consolidated report of recovered precious metals to the ASMB.
> Reports will be prepared on SF 291, Report of Activities Generating
> Precious Metals. Reports are due not later than November 1 of each
> year. 

#### **103-45.1002-3 PRECIOUS METALS RECOVERY PROGRAM MONITOR**

> OS, OPDIVs and ROs shall designate an individual to monitor its
> precious metals recovery program. The monitor shall be knowledgeable
> of where precious metals may be found in the scrap generated by the
> agency and recovery procedures. The monitor should be selected from
> the property management component. Responsibilities of the precious
> metals monitor will include conducting and coordinating surveys,
> implementing and improving recovery procedures; monitoring the
> components\' recovery program; providing technical assistance to
> generating activities and submitting the Standard Form 291, Report of
> Activities Generating Precious Metals.

#### **103-45.1002-4 INTERNAL AUDITS**

> Property management components will periodically audit the precious
> metals program. The audit shall insure proper control over the
> recovery, storage, and disposition of precious metals bearing
> materials. Elements for review will include document control and
> record maintenance; storage facilities and security controls; methods
> of recovery and equipment operation; and procedures for recovering
> precious metals through commercial service contracts, disposal through
> sales contracts or participation in the DOD Precious Metals Recovery
> Program.

[]{#__RefHeading___Toc159986367 .anchor}**103-45.1003 RECOVERY OF SILVER
FROM PRECIOUS METALS BEARING SCRAP**

Dental care components will save scrap gold, silver, silver amalgam, and
platinum generated during dental care operations. Each type of precious
metal will be kept separate. Records of generation of each type of
precious metal will be maintained by the component.  Accumulations of
the material will be turned into the property management component for
disposal. Disposal will be through sales by the General Services
Administration or used in internal contracts. Components having an
Interservice Support Agreement/Memorandum of Understanding with DOD/DLA
Precious Metals Program may dispose of the material through that
agency. 

Property Management components generating scrap from electronic
equipment and Automatic Data Processing Equipment (ADPE) will recover
parts/pieces from this scrap that contain precious metals. Examples of
this scrap that contains various precious metals are circuit cards and
connectors.

The PMRPM shall provide technical assistance to generators of the above
items.

[]{#__RefHeading___Toc159986368 .anchor}**103-45.1003-1 RECOVERY OF
SILVER FROM USED HYPO SOLUTION\
\
**Each component shall recover silver from hypo generated from
photographic operations. Installation of a silver recovery system is the
responsibility of the program user consistent with the quantity of used
hypo solution generated. Small quantities of the hypo may be
consolidated to a central recovery system. Recovered silver from hypo
solution will be turned into the property management component for
disposal. Components with commercial service/sales contracts for
recovery of silver from these materials will coordinate with the PMRPM
and the property management component when delivering collected silver.
Hypo solution will not be discharged into the environment without proper
safeguards according to Environmental Protection Laws and Regulations
(See LMM 103-42)\
**\
****103-45.1003-2 RECOVERY OF SILVER FROM SCRAP FILM\
\
**Scrap film, photographic paper, and microfiche masters (black) are a
major source of recovered silver. Photography and X-ray activities shall
collect all film and photographic paper and hold for disposal through a
commercial recovery contract, sale by GSA, or for turn-in to the DOD
Precious Metals Recovery Program. The paper will be kept separate from
the film. The Precious Metals Program Monitor and the property
management component shall provide technical assistance to components
generating scrap film and photographic paper.  NOTE: Processed color
film, paper, and microfiche (blue film) shall not be collected for
silver recovery. These items do not retain silver after development. \
**\
****103-45.1004 RECOVERY AND USE OF PRECIOUS METALS THROUGH THE DOD
PRECIOUS METALS RECOVERY PROGRAM\
\
**Components are encouraged to use the DOD Precious Metals Recovery
Program. 

[]{#__RefHeading___Toc159986369 .anchor}**103-45.1004-1 COMPONENT
PARTICIPATION IN THE DOD PRECIOUS METALS RECOVERY PROGRAM\
**\
Components wishing to participate in the DOD Precious Metals Recovery
Program should contact the Manager, DOD Precious Metals Recovery
Program, Attention: DLA-MMSLD, Cameron Station, Alexandria, VA 22314,
for further information. This program will provide assistance in all
phases of precious metals recovery. DLA will provide recovery and other
supporting equipment at no cost to participants in the program. This
plan will, usually, require a formal Memorandum Of Understanding between
DLA and the Component. DLA will provide recovered fine precious metals
to participating agencies for use as Government Furnished Materials
(GFM) or other authorized internal uses. There is a nominal charge for
the recovered fine precious metals.\
\
**103-45.1004-2 USE OF DOD-RECOVERED FINE PRECIOUS METALS\
**\
Components participating in the DOD Precious Metals Recovery Program
requiring fine precious metals should submit a request to the Commander,
Defense Industrial Supply Center (DISC), attention: DISC-YAB/GD, 700
Robbins Avenue, Philadelphia, Pennsylvania 19111-5096. 

## **SUBPART 103-45.47 REPORTS**

[]{#BM103_45_4700_SCOPE_ .anchor}**103-45.4700 SCOPE\
**\
This subpart prescribes the reporting requirements for the sale,
abandonment, or destruction of personal property required by HHS.

[]{#__RefHeading___Toc159986372 .anchor}**103-45.4701 PERFORMANCE
REPORTS\
**\
Consolidated annual reports will be submitted by each OS, OPDIV, and RO
to the Office of Acquisition Management and Policy (OAMP), Assistant
Secretary for Administration and Management (ASAM) as follows: Sales,
abandonment, and destruction will be incorporated in the [Annual Report
of Utilization and Disposal of Excess and Surplus Personal
Property](http://knownet.hhs.gov/log/_private/Util_Disp_Data_Collect_Form.htm)
due November 15. 

## SUBPART 103-45.49 ILLUSTRATION OF FORMS

### 103-45.4900 SCOPE  **Refer to FPMR 101-45.4900 for forms.**

# PART 103-46 UTILIZATION AND DISPOSAL OF PERSONAL PROPERTY PURSUANT TO EXCHANGE/SALE AUTHORITY

[]{#BM103_46_000_SCOPE_ .anchor}

**103-46.000 SCOPE**\
\
This part prescribes policies and methods governing the use within HHS
of the exchange/sale authority of section 201(c) of the Federal Property
and Administrative Act of 1949, 63 Stat. 384, as amended (40 U.S.C.
481(c)). 

It is applicable to all HHS owned property worldwide. In addition to the
requirements of this part LMM 103-46, the exchange/sale of hazardous
materials shall be accomplished following the procedures in LMM 103-42
and FMR 102-39.

[]{#__RefHeading___Toc159986377 .anchor}**103-46.001 DEFINITIONS\
\
**Definitions of terms for this Subpart are found in the [FMR
102-39.20](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-39.20.htm)

[]{#BM103_46_201_HHS_RESPONSIBILITIES_ .anchor}

## **SUBPART 103-46.2 EXCHANGE/SALE CONSIDERATIONS**

**103-46.201 HHS RESPONSIBILITIES**

**\
**HHS components who want to replace personal property either within or
outside the United States may exchange the item(s) for similar type of
item(s). The proceeds from exchanges or sales are authorized to be
applied in whole or in part for the replacement of personal property
acquired.\
**\
****103-46.201-1 EXCHANGE OR SALE DETERMINATION**

A. HHS components considering exchange or sale of personal property must
decide in each case whether exchange or sale will obtain the greater
return for the Government. See [FMR
102-39.35](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-39.35.htm).\
\
B. Estimating the Government\'s return by either method includes:

1.  All administrative and overhead costs. 

2.  When a sales transaction for line item(s) processed has an estimated
    proceed of less than \$100, it is considered uneconomical.

3.  Exchange also can be impractical if the exchange allowance is
    unreasonably low.

C. When both methods are impractical the personal property should be
declared excess and processed following 103-43.

### 103-46.201-2 TRANSFER AND EXCHANGE BETWEEN FEDERAL AGENCIES

HHS components having property other than automatic data processing
equipment (ADPE) that has been determined to be available for exchange
or sale will to the maximum extent practicable or economical and before
any disposal action, solicit Federal agencies known to use or distribute
this property and arrange for transfers. No attempt needs to be made to
obtain further utilization of property eligible for replacement
following replacement standards in [FMR
102-39.40](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-39.40.htm).
GSA will solicit other agencies requiring ADPE before deciding
availability for exchange or sale after equipment has been reported to
GSA.

### 103-46.202 RESTRICTIONS AND LIMITATIONS 

Application of exchange allowances or sales proceeds are authorized
when:

A.  Item(s) exchanged or sold are similar to the item(s) acquired.
    Written documentation shall be made a matter of record to establish
    that the acquired item(s) and the replaced item(s) are similar and
    do not fall into the restricted Federal Supply classification
    groups.

B.  Items to be sold or exchanged are not excess and may not be property
    unrequired by the component. Items acquired must be necessary in the
    conduct of programs.

C.  Acquisitions will be on a one for one basis with sales and exchanges
    unless qualified under an exception stated in [FMR
    102-39.55](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-39.55.htm)

D.  A written administrative determination is made to apply the exchange
    or sale proceeds to the item(s) being acquired.

E.  The transaction will foster the economical and efficient
    accomplishment of an approved program.

    Application of exchange allowances or sales proceeds are prohibited
    for items falling within the Federal Supply classification
    groups listed in the [FMR
    102-39.45](http://a257.g.akamaitech.net/7/257/2422/04nov20031500/edocket.access.gpo.gov/cfr_2003/julqtr/41cfr102-39.45.htm)

## SUBPART 103-46.3 EXCHANGE/SALE METHODS AND REPORTS

[]{#BM103_46_300_SCOPE_ .anchor}

**103-46.300 SCOPE**\
\
This part prescribes the policies and methods governing the actual
exchange or sale of property.\
\
**103-46.301 AUTOMATIC DATA PROCESSING EQUIPMENT (ADPE)**\
\
ADPE equipment qualifying for exchange or sale following this part must
first be reported for possible reutilization within HHS and then among
other Federal agencies. If not transferred as reutilization to another
Federal agency, ADPE may be exchanged or sold.\
\
**103-46.302 HHS EXCHANGE PROCEDURES**

A. Exchange transactions normally occur when a vendor delivers a
replacement item(s) and removes the item(s) replaced. This is the most
efficient and cost effective procedure.\
\
B. Exchange of item(s) that is/are not in use or when delivery of the
replacement item(s) and removal of the item(s) replaced does not happen
simultaneously creates additional administrative, handling, and storage
cost and should be kept to minimum.

[]{#__RefHeading___Toc159986384 .anchor}**103-46.303 HHS SALES METHODS
AND PROCEDURES**\
\
The methods of sale, terms and conditions of sale, and forms prescribed
in 103-45.304 also will be used in the sale of replacement property,
except that negotiated sales of surplus personal property are not
applicable to the sale of property being replaced.\
\
**103-46.304 AVAILABILITY OF PROCEEDS OF SALE FOR HHS**

A. When property to be replaced is sold before the acquisition of the
replacement property, the proceeds of the sale will be credited to the
component\'s account, using Standard Form 1081 \"Voucher and Schedule of
Withdrawal and Credits,\" or other approved component forms.\
\
B. Proceeds of sales will be available for obligation for the
acquisition of similar replacement item(s) of personal property during
the fiscal year in which the sale is made and for one fiscal year
thereafter.\
\
C. Proceeds of sales for personal property for which an obligation for
replacement has not been made during the period stated above will
be deposited into the U. S. Treasury as miscellaneous receipts.\
\
D. If it is determined at the time of collection that sales proceeds
will not be applied to replacement acquisitions, the deposit should be
made directly to the U. S. Treasury as miscellaneous receipts.\
\
E. When the replaced property is sold after the acquisition of the
replacement property, the proceeds of sale may be deposited as a direct
reimbursement credit to the appropriate account listed for the
replacement of similar item(s) of personal property.

### 103-46.305 REPORTS 

A. An annual report shall be submitted by December 15, in letter form on
the transactions made under the exchange and sale procedures except
transactions involving books and periodicals. Negative reports are
required. See FPMR 101-46.305 for reports format.\
\
B. Reports shall be submitted to the Office of Acquisition Management
and Policy (OAMP), Assistant Secretary for Administration and Management
(ASAM) by each OS, OPDIV, and RO.

# **PART 103-48 UTILIZATION, DONATION OR DISPOSAL OF ABANDONED AND FORFEITED PERSONAL PROPERTY**

[]{#__RefHeading___Toc159986387 .anchor}**103-48.000 SCOPE\
\
**This subpart prescribes policies and methods governing the
utilization, donation and disposal of abandoned or forfeited personal
property under the custody or control of HHS components. In addition to
the requirements of LMM 103-48, the disposition of abandoned and
forfeited hazardous materials shall be accomplished following the
procedures in LMM 103-42 and FPMR 101-42.

[]{#__RefHeading___Toc159986388 .anchor}**103-48.001 DEFINITIONS\
\
**Definitions of terms for this Subpart are found in the FPMR at
101-48.001.

## **SUBPART 103-48.1 GENERAL PROVISIONS**

### 103-48.100 SCOPE

This subpart prescribes policies and methods for utilization and
transfer of forfeited, voluntarily abandoned, or other unclaimed
property found on premises that may come into the custody or control of
HHS component. In addition to the requirements of this Part 103-48, the
disposition of abandoned and forfeited hazardous materials shall be
accomplished following the procedures in LMM Part 103-42.

### 103-48.101 FORFEITED OR VOLUNTARILY ABANDONED PROPERTY

Refer to [FPMR
101-48.101](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-48&SECTION=101&YEAR=1999&TYPE=TEXT).

### 103-48.102 ABANDONED OR OTHER UNCLAIMED PROPERTY

Refer to [FPMR
101-48.102](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-48&SECTION=102&YEAR=1999&TYPE=TEXT).

## SUBPART 103-48.2 DONATION OF ABANDONED OR FORFEITED PERSONAL PROPERTY

This subpart prescribes policies and methods governing the donation of
abandoned or forfeited property in the custody of HHS components. 

Refer to [FPMR
101-48.201](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-48&SECTION=201&YEAR=1999&TYPE=TEXT).

## SUBPART 103-48.3 DISPOSAL OF ABANDONED OR FORFEITED PERSONAL PROPERTY

### 103-48.300 SCOPE

This subpart prescribes policies and methods governing the disposal of
abandoned, or other unclaimed, voluntarily abandoned, or forfeited
personal property that may come into the custody of HHS components.\
**\
****103-48.301 GENERAL**

Any property in the custody of a HHS component that is not desired for
retention by that component and that has not been transferred or donated
shall be disposed of following this subpart.

### 103-48.302 DISTILLED SPIRITS, WINE, AND MALT BEVERAGES

These shall be destroyed if not required to be reported under FPMR 101-
48.101-5(c)(4) to GSA. If required to be reported to GSA they will be
destroyed following instructions received from GSA. A record of
destruction showing time, place, nomenclature and quantities shall be
made and retained in the appropriate property records.

### 103-48.303 FIREARMS

HHS components shall not sell firearms. Refer to FPMR 101-42.1102-10.

### 103-48.304 PROPERTY OTHER THAN DISTILLED SPIRITS, WINE, AND MALT BEVERAGES; AND FIREARMS

Such property will be sold following the procedures set forth in FPMR
101-48.304.

### 103-48.305 DISPOSITION OF PROCEEDS FROM SALE

Proceeds shall be deposited in a special fund for abandoned or other
unclaimed property, and in the Treasury of the U.S. as miscellaneous
receipts for forfeited or voluntarily abandoned property. Applicable
procedures are stated in FPMR 101-48.305.

## SUBPART 103-48.49 ILLUSTRATION OF FORMS

# PART 103-49 UTILIZATION, DONATION AND DISPOSAL OF FOREIGN GIFTS AND DECORATIONS

[]{#__RefHeading___Toc159986402 .anchor}**103-48.4900 SCOPE**

**\
**Refer to FPMR 101-48.4900 for forms used in this report.

[]{#__RefHeading___Toc159986403 .anchor}**103-49.000 SCOPE\
\
**This part prescribes policies and methods governing the utilization,
donation, and disposal of gifts and decorations that HHS components or
individuals may receive from foreign governments. Departmental policy
regarding such gifts and decorations are contained in the HHS General
Administration Manual, Chapter 20-25.

[]{#__RefHeading___Toc159986404 .anchor}**103-49.001 DEFINITIONS\
\
**Definitions of terms used in this part are found in the [FMR
102-42.10](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=102-42&SECTION=10&YEAR=2001&TYPE=TEXT)

## SUBPART 103-49.1 GENERAL PROVISIONS

[]{#__RefHeading___Toc159986406 .anchor}**103-49.101 CUSTODY OF GIFTS
AND DECORATIONS\
\
**Recipients of foreign gifts and decorations must turn them into their
employing HHS component. Gifts and decorations shall remain in the
custody and be the responsibility of the HHS component. The recipient
may express an interest to purchase the gift or decoration to the
employing component. If the recipient does not express an interest in
the purchase of the gift or decoration GSA will direct the disposition
of the gifts and decorations when reported by the HHS component by: 

A. Transfer to Federal agencies;\
\
B. Donation for public display or reference purposes;\
\
C. Sale with the approval of the Secretary of State; or\
\
D. Destruction.

[]{#__RefHeading___Toc159986407 .anchor}**103-49.102 CARE AND HANDLING\
\
**Each HHS component shall be responsible for, and bear the cost of,
performing care and handling of gifts and decorations and for delivery
to the physical custody of GSA.

[]{#__RefHeading___Toc159986408 .anchor}**103-49.103 INFORMATION ON
AVAILABILITY FOR FEDERAL UTILIZATION OR DONATION\
\
**GSA will provide information to HHS components on the availability of
gifts and decorations that are reported to GSA by other Federal
agencies.\
**\
****103-49.105 APPRAISALS\
\
**When a HHS employee is the recipient of a foreign gift(s) or
decoration(s) and shows an interest in purchasing a gift, the HHS
component shall obtain a commercial appraisal before reporting the gift
to GSA. The gift shall then be reported to GSA on [Standard Form 120
(SF-120) Report of Excess Personal
Property](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF120.PDF),
for utilization before sale to the recipient. The commercial appraisal
may be attached to the
[SF-120](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF120.PDF) or
furnished separately to GSA after completion of utilization screening.\
**\
****103-49.107 SALE TO RECIPIENTS\
\
**Gifts and decorations found to have no Federal requirement by GSA may
be offered for sale to the recipient.\
**\
****103-49.108 HAZARDOUS MATERIALS\
\
**In addition to the requirements of LMM 103-49, the disposition of
foreign gifts and decorations that are hazardous materials shall be
accomplished following the provisions of LMM 103-42.2 through 103-42.4
and [FPMR 101-
42.2](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-42&SECTION=200&YEAR=1999&TYPE=TEXT)
through
[101-42.4](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=41&PART=101-42&SECTION=400&YEAR=1999&TYPE=TEXT).

## SUBPART 103-49.2 UTILIZATION OF FOREIGN GIFTS AND DECORATIONS

[]{#__RefHeading___Toc159986410 .anchor}**103-49.200 SCOPE.\
**\
This subpart prescribes policies governing the utilization and transfer
of foreign gifts and decorations.\
\
**103-49.201 REPORTING**

A. Tangible gifts and decorations that are not retained for official use
or are not returned to the donor shall be reported to GSA following the
provisions of [FMR
102-42.85](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-42.85.htm).\
\
B. The following gifts and decoration shall not be reported to GSA.

1.  1\. Gifts and decorations returned to the donor;\
    \
    2. Gifts and decorations retained by the employing agency for
    official use, except upon ending of the official use;\
    \
    3. Gifts and decorations below minimal value (a retail value in the
    United States at the time of acceptance of \$225 or less) retained
    by employee recipients with the approval of HHS.\
    \
    4. Intangible gifts, including checks, money orders, bonds, shores
    of stock, and other securities and negotiable instruments (see LMM
    103-49.205);\
    \
    5. Cash, currency, and money, except those with possible historic or
    numismatic value.

[]{#__RefHeading___Toc159986411 .anchor}**103-49.202 TRANSFERS TO OTHER
FEDERAL AGENCIES\
\
**Transfers of gifts and decorations may be made to other Federal
agencies following [FMR
102-43.110](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-42.110.htm).\
**\
103-49.203 COSTS INCIDENT TO TRANSFER**

**\
**All transfers of gifts and donations will be made without
reimbursement, except that direct costs incurred in actual packing,
preparation for shipment, loading, and transportation may be recovered
from the transferee agency if billed following LMM 103-43.317.\
**\
103-49.204 GIFTS AND DECORATIONS NO LONGER REQUIRED BY THE TRANSFEREE
AGENCY.\
\
**Gifts and decorations no longer required by the HHS activity shall be
reported as provided in [FMR
102-42.115](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-42.115.htm).\
**\
103-49.205 DEPOSIT OF MONEY AND CERTAIN INTANGIBLE GIFTS WITH THE
DEPARTMENT OF TREASURY\
\
**Money, cash, currency, and such intangible gifts as checks, money
orders, bonds, shores of stock, and other securities and negotiable
instruments not required to be reported to GSA shall be deposited with
the Department of Treasury by the HHS component following applicable
finance laws and regulations.

## SUBPART 103-49.3 DONATION OF FOREIGN GIFTS AND DECORATIONS

[]{#__RefHeading___Toc159986413 .anchor}**103-49.300 SCOPE**\
\
This subpart prescribes policies governing the donations of foreign
gifts and decorations to public agencies and gateway.html tax-exempt
activities for public display purposes.\
\
**103-49.301 DONATIONS OF GIFTS AND DECORATIONS**\
\
Only GSA will decide whether donations will be made. Determinations will
be accomplished following [FMR
102-42.120](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-42.120.htm).\
\
\
**103-49.302 CONDITIONS OF DONATION**\
\
Conditions for the donation of gifts and decorations to eligible bodies
are contained in FMR [FMR
102-42.130](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-42.130.htm).\
\
**103-49.303 COSTS INCIDENT TO DONATION**\
\
Costs incurred incident to donation; withdrawals of approved donations
for HHS use; and withdrawals from sale to accomplish donation will be
handled following the same provisions as for other donations as
contained in LMM 103-44.

## SUBPART 103-49.4 SALE OR DESTRUCTION OF FOREIGN GIFTS AND DECORATIONS

### 103-49.400 SCOPE

This subpart prescribes policies governing the disposal by sale or
destruction of foreign gifts and decorations.

### 103-49.401 APPROVAL OF SALES BY THE SECRETARY OF STATE

This approval is requested and received by GSA before offering any gift
for public sale. (See [FMR
102-42.135](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-42.135.htm))

### 103-49.402 SALE OF GIFTS BY GSA TO INTERESTED RECIPIENTS

GSA shall offer gifts through negotiated sales to a HHS recipient who
shows an interest in purchasing the item(s). The HHS component shall
include the interested recipient\'s mailing address and telephone number
on the
[SF-120](http://www.knownet.hhs.gov/log/propmanDR/PPMPdf/SF120.PDF)
submitted as provided in paragraph 103-49.105 of this subpart. The sale
price shall be the appraised value plus the cost of the appraisal. GSA
will document the sale.

### 103-49.403 SALE OF GIFTS BY GSA TO THE PUBLIC

This is a GSA function. (See [FMR
102-42-145](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-42.145.htm)).

### 103-49.404 PROCEEDS FROM SALES

This is a GSA function. (See [FMR
102-42.150](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-42.150.htm)).

### 103-49.405 DESTRUCTION OF GIFTS AND DECORATIONS

Gifts, that are not sold under the provisions of this subpart, and
decorations may be destroyed and disposed of as scrap for their material
content. This is a GSA function. See [FMR
102-42.155](http://a257.g.akamaitech.net/7/257/2422/22jul20061500/edocket.access.gpo.gov/cfr_2006/julqtr/41cfr102-42.155.htm).

# HHS Logistics Management Manual (LMM) Subchapter K

*Update pending approval of revised FAR 45 Accounting and Control of HHS
Personal Property Used by Contractors and Recipients of Grants with
Commercial Organizations*

# GLOSSARY

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  Term                       Definition
  -------------------------- --------------------------------------------
  Accountability             The obligation to keep records (usually
                             automated) and transactions on quantities of
                             supplies such as identification, gain, loss,
                             distribution, transfer, disposal, and
                             balances on hand.

  Accountable personal       Accountable personal property is personal
  property                   property with an acquisition value of
                             \$5,000 or more with a useful life
                             expectancy of more than two year, sensitive
                             items (weapons including tranquilizer guns
                             and portable personal computers and other
                             items designated as sensitive by a component
                             of HHS), and leased property without regard
                             to value.

  Alternative Fuel Vehicle   As defined by the Energy Policy Act of 1992,
  (AFV)                      any dedicated, flexible-fuel or dual-fuel
                             vehicle designed to operate on at least one
                             alternative fuel.

  Automated Systems          Systems designed to develop stock control
                             and analysis by the use of automatic data
                             processing application.

  Board of Survey            A Board of Survey is a panel of three or
                             more employees appointed to serve as a fact
                             finding body to determine the circumstances
                             and conditions surrounding the loss or
                             damage to HHS controlled personal
                             property, to make recommendations on
                             liability, and to make recommendations on
                             relief from accountability. The Board may
                             also be used to recommend disposition
                             decisions government property.

  Capitalized property       Capitalized property is personal property
                             which has a unit acquisition cost of
                             \$25,000 or more, including accessories; has
                             a useful life expectancy of more than two
                             year; is complete in itself and does not
                             lose its identity when in use; or becomes a
                             component part of another capitalized item
                             when placed into use. Capitalized property
                             will be identified as such in all property
                             accounting records.

  Controlled Substances      Controlled substances are narcotics and
                             dangerous drugs identified by the Drug
                             Enforcement Administration (DEA) in Title 21
                             CFR, Part 1308.

  Department Fleet Manager   Department Fleet Manager means the official
                             designated in accordance with the
                             requirements of the Title XV, Subtitle C -
                             Federal Motor Vehicle Expenditure. The
                             official is located in the Office of
                             Acquisition Management and Policy (OAMP),
                             Assistant Secretary for Administration and
                             Management (ASAM).

  Determining Authority      The Determining Authority is the chief
                             management official of each HHS component.
                             The official may appoint an executive
                             assistant or principal administrative or
                             management officer to serve as the
                             determining authority as long as the officer
                             is not the Property Management Officer
                             (PMO).

  Direct Delivery            Items which are delivered directly to the
                             customer and who reviews the receiving
                             document for completeness for transaction
                             purposes.

  Disposal                   The removal of supplies by sale, donation,
                             transfer, abandonment and destruction,
                             trade-in, or other means.

  Dual purpose vehicle       A motor vehicle designed to transport both
                             passengers and cargo such as Broncos,
                             Cherokees and Blazers.

  Economic Order Quantity    The lowest total cost of an item for
  (EOQ)                      ordering and holding inventory to meet
                             expected supply requirements.

  Electronic Commerce (EC)   Electronic commerce means using electronic
                             information technologies to conduct business
                             between trading partners.

  Electronic Data            The automated, electronic flow of business
  Interchange (EDI)          information between organizations. This
                             information is integrated with and flows
                             into and out of the organizations\'
                             respective business management systems.

  Expendable Property        Property which does not meet the definition
                             for equipment, is of relatively low dollar
                             value, or is property which is consumed in
                             the performance of program mission.
                             Sometimes is called a consumable item.

  General Ledger             A fiscal record maintained by finance and
                             the property/supply accounting activity,
                             which is comprised of several accounts that
                             reflect the dollar value of assets.

  Government property        Government Property is any personal property
                             loaned to or owned, leased or held in trust
                             by the United States government.

  Government vehicle         Any vehicle owned or leased by the U.S.
                             government

  GSA Stock                  General Services Administration Depot
                             Customer Supply Centers which procure and
                             stock items based on projected requirements
                             of Federal agencies, stores bulk quantities,
                             and distributes upon receipt of
                             requisitions.

  HHS Fleet Manager          An individual, as delegated by the head of
                             the agency at the Headquarters level,
                             assigned the oversight responsibility of the
                             entire Government fleet of the motor
                             equipment for a particular OPDIV/STAFFDIV.

  Inventory                  Stocks of supplies, materials and parts used
                             to support HHS programs. The types of supply
                             inventories generally fall into the category
                             of stores stock, storeroom, and user
                             inventory.

  Lead Time                  The length of time between the receipt of a
                             request and the delivery of an item.
                             Includes both administrative and production
                             lead time.

  Levels of inventory        The quantity of items required to be issued
                             between replenishment orders.

  Motor vehicle              Any equipment, self-propelled or drawn by
                             mechanical power, designed to be operated
                             principally on highways in the
                             transportation of property or passengers.

  Motor Vehicle Management   MVMIS is the uniformed HHS motor vehicle
  Information System (MVMIS) management configured to capture the entire
                             HHS Fleet historical data profile.

  OPDIV/STAFFDIV Fleet       An individual, as delegated by the head of
  Manager                    the agency at the Headquarters level, tasked
                             with the oversight responsibility of the
                             entire Government fleet of the motor
                             equipment for a particular OPDIV/STAFFDIV.

  Passenger motor vehicle    Any vehicle whose primary purpose is to
                             transport passengers (sedans, station
                             wagons, ambulances, buses, and passenger
                             vans).

  Performance Measures       Supply management indicators which can be
                             used to evaluate the supply process;
                             identify and document the best/innovative
                             practices for supply management; report on
                             findings regarding supply strategies,
                             materials operations, administrative/systems
                             support and supplier relations.

  Physical Inventory         The act of personally observing and counting
                             items, recording the count, and comparing
                             the count with official records for the
                             purpose of reconciliation.

  Purchase Order             Form used to place an order for goods or
                             services with a supplier (vendor).

  Quality Control            Inspection, testing, grading of goods and
                             services to determine whether required
                             standards and specifications have been
                             achieved.

  Receiving                  The receipt of inbound supplies, includes
                             planning, handling, and document processing.

  Reconciliation             The procedure by which records in one system
                             are compared to those in another system. The
                             objective of a reconciliation (whether it is
                             done between the supply accountability and
                             the general ledger or between a physical
                             inventory and the supply accountability
                             system) is to compare information between
                             two sources and to determine if it coincides
                             and, if the information does not coincide,
                             to make the appropriate adjustments.

  Register                   A record (usually automated) of all supply
                             transactions delineating as a minimum: date,
                             type of document, description of items and
                             value.

  Report of Survey           A Report of Survey (HHS Form Number 342) is
                             the document used to record and present
                             findings and recommendations concerning the
                             loss, theft, damage, or destruction of
                             Government property, to approve corrective
                             actions, including financial recovery
                             efforts, and to approve the resulting
                             adjustments to property accountability
                             records.

  Requirement                An established need which justifies the
                             allocation of resources to achieve a
                             capability to accomplish an objective or
                             task which generated the need.

  Requisition                Authoritative request for supplies or
                             services on form(s) authorized for such
                             requests.

  Rules of the Road          Laws which govern the operation of
                             watercraft on (1) Great Lakes, (2) Western
                             Rivers, (3) Inland, and (4) International
                             Waters.

  Safety Level of Supply     Quantity of items to be held in inventory
                             which is issued if other levels, are
                             depleted.

  Senior Federal Official    All political appointees and any person
                             above the Senior Executive Staff (SES)
                             level.

  Sensitive items            Sensitive items are property items that are
                             especially vulnerable to loss, theft or
                             misuse.

  Specification              A document which describes the essential and
                             technical requirements for items, materials,
                             or services. Also contains preservation,
                             packaging, packing, handling, hazardous
                             characteristics, and marking requirements.

  Stock                      All items of supplies and materials held in
                             an inventory by a component or Federal
                             agency supply activity for distribution to
                             user locations.

  Storing                    The orderly arrangement of supplies in
                             storage.

  Supplies                   Items that have a relatively low dollar
                             value or are consumed in the performance of
                             an agency function or are used inn the
                             production or repair of other items.
                             Supplies normally consist of all personal
                             property other than furniture,
                             non-accountable equipment and accountable
                             property. The term is interchangeable with
                             materials.

  Supply Components          HHS supply components are organizations that
                             annually distribute more than \$50,000 of
                             supplies held in inventory. The primary
                             objective of a supply component is to
                             receive, store, and distribute supplies.

  Supply Management          The broad function of the management,
                             coordination, and regulation of activities
                             concerned with supplies. Basic supply
                             management functions include requirements
                             determination, acquisition, accountability,
                             financial asset analysis, storage,
                             distribution and disposal of supplies.

  Transaction                Supply records which attest to the addition
                             or subtraction from the inventory of
                             supplies.

  TRANSAM                    A cooperative venture between the Indian
                             Health Service and the U.S. Department of
                             Defense (DOD). In this effort, called a
                             Civilian-Military Cooperative Action
                             Program, medical equipment and supplies are
                             transferred to the Indian Health Service
                             (IHS) and tribal health programs from DOD
                             medical facilities and installations that
                             have been closed or reduced in strength.

  Transportation audit       A thorough review and validation of
                             transportation related bills. The audit must
                             examine the validity, propriety, and
                             conformity of the charges with tariffs,
                             quotations, agreements, or tenders, as
                             appropriate. Each agency must ensure that
                             its internal transportation audit procedures
                             prevent duplicate payments and only allow
                             payment for authorized services, and that
                             the TSP's bill is complete with required
                             documentation.

  Transportation payment     A payment made by an agency to a TSP for the
                             movement of goods or people and/or
                             transportation related services.

  Tribal Entities            Enrolled members of federally recognized
                             Indian tribes, or those tribes terminated
                             since 1940 and those recognized now or in
                             the future by the State in which they reside
                             and their descendents are eligible for HIS
                             provided health care services.

  Validation                 Confirmation or approval that a request for
                             supplies, is based on the proper authority
                             and is fully justified to be acquired.

  Vendor                     A private person, agency or commercial
                             organization which sells goods to the
                             Government.

  Warehousing                The performance of physical functions
                             incident to receipt, storage, and issue of
                             supplies.

  Watercraft                 Any vessel used to transport persons or
                             material on water.
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