GENERAL SERVICES ADMINISTRATION

Washington, DC 20405 March 15, 2007

FEDERAL MANAGEMENT REGULATION\
Amendment 2007-01

TO: Heads of Federal agencies

SUBJECT: FMR Case 2004-102-1; Disposition of Personal Property

1.  [Purpose.]{.underline} This document includes pages that reflect
    amendments to Part 102-35 of the Federal Management Regulation (FMR)
    . This rule was published in the *Federal Register* at 72 FR 10084,
    March 7, 2007.

2.  [Background.]{.underline} A proposed rule was published in the
    *Federal Register* on September 12, 2006 (71 FR 53646) soliciting
    comments on proposed changes to 41 CFR part 102-35. The due date for
    comments was extended in a *Federal Register* proposed rule document
    on October 18, 2006 (71 FR 61445) . Comments were received from
    three respondents relating to the sale of personal property. These
    comments do not directly address any provisions contained in this
    final rule, and will be held for consideration when the regulation
    covering the sale of Federal personal property assets, FMR part
    102-38, is released for comment. FMR part 102-38 is currently being
    reviewed within GSA for revisions.

This final rule adds a new part, 102-35, to subchapter B of the FMR to
provide an overview of the property disposal regulation and to provide
definitions for terms found in FMR parts 102-36 through 102-42 (41 CFR
102-36 through 102-42) . This part serves as a summary and overview of
the policies relating to the disposal of Federal personal property and
provides overall guidance for all methods of property disposal.

This part emphasizes the use of excess property from other agencies as
the first source of supply, and establishes the preference to transfer
excess property to Federal agencies for their own use before
transferring that property to agencies for use by non-Federal entities.

3.  [Effective date.]{.underline} April 6, 2007.

4.  [Explanation of changes.]{.underline} Part 102-35 is amended by
    adding a new part to subchapter B of the FMR to provide an overview
    of the property disposal regulation and provide definitions for
    terms found in the FMR parts.

> [5. Filing instructions.]{.underline} Make the following page changes.

[Remove FMR pages:]{.underline} [Insert FMR pages:~.~]{.underline}
Structure i and ii Structure i and ii Subchapter B TOC Subchapter B TOC

Part 102-35 TOC Part 102-35 TOC

> pp. 102-35-i and 102-35-ii pp. 102-35-i and 102-35-ii

None 102-35-1 and 102-35-2

> ![](media/image1.png){width="2.3in" height="0.8097222222222222in"}

**AMENDMENT 2007--01 APRIL 6, 2007**

FEDERAL MANAGEMENT REGULATION

General Structure and Parts

**SUBCHAPTER A---GENERAL**

General \[Reserved\]

Federal Management Regulation System

Federal Advisory Committee Management

Nondiscrimination in Federal Financial Assistance Programs \[Reserved\]
Home-to-Work Transportation

**SUBCHAPTER B---PERSONAL PROPERTY**

General \[Reserved\]

Management of Personal Property \[Reserved\]

Management of Government Aircraft

Motor Vehicle Management

Disposition of Personal
Property![](media/image2.png){width="2.9861111111111113e-2in"
height="0.16666666666666666in"}

Disposition of Excess Personal Property

Donation of Surplus Personal Property

Sale of Personal Property

Replacement of Personal Property Pursuant to the Exchange/Sale Authority
\[Reserved\]

Disposition of Seized, Forfeited, Voluntarily Abandoned, and Unclaimed
Personal Property

Utilization, Donation, and Disposal of Foreign Gifts and Decorations

> **SUBCHAPTER C---REAL PROPERTY**

General

Delegation of Authority Real Estate Acquisition Facility Management Real
Property Disposal Design and Construction Art-in-Architecture Historic
Preservation

Assignment and Utilization of Space

Safety and Environmental Management

Security

Utility Services

Location of Space

Annual Real Property Inventories

**AMENDMENT 2005--02 JANUARY 19, 2005**

**STRUCTURE** FEDERAL MANAGEMENT REGULATION

**SUBCHAPTER D---TRANSPORTATION**

102-116 General \[Reserved\]

102-117 Transportation Management

102-118 Transportation Payment and Audit

**SUBCHAPTER E---TRAVEL MANAGEMENT\
** 102-141 General \[Reserved\]

**SUBCHAPTER F---TELECOMMUNICATIONS**

102-171 General \[Reserved\]

102-172 Telecommunications Management Policy \[Reserved\]

102-173 Internet GOV Domain

**SUBCHAPTER G---ADMINISTRATIVE PROGRAMS**

102-191 102-192 102-193 102-194 102-195
102-196![](media/image3.png){width="3.333333333333333e-2in"
height="0.1701388888888889in"}

General \[Reserved\]

Mail Management

Creation, Maintenance, and Use of Records Standard and Optional Forms
Management Program \[Reserved\]

Federal Facility Ridesharing \[Reserved\]

FEDERAL MANAGEMENT REGULATION

**SUBCHAPTER B---PERSONAL PROPERTY**

General \[Reserved\]

Management of Personal Property \[Reserved\]

Management of Government Aircraft

Motor Vehicle Management

Disposition of Personal
Property![](media/image4.png){width="2.9861111111111113e-2in"
height="0.1701388888888889in"}

Disposition of Excess Personal Property

Donation of Surplus Personal Property

Sale of Personal Property

Replacement of Personal Property Pursuant to the Exchange/Sale Authority
\[Reserved\]

Disposition of Seized, Forfeited, Voluntarily Abandoned, and Unclaimed
Personal Property

Utilization, Donation, and Disposal of Foreign Gifts and Decorations

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> **PART 102-35---DISPOSITION OF PERSONAL
> PROPERTY**![](media/image5.png){width="2.9861111111111113e-2in"
> height="0.19652777777777777in"}

What is the scope of the General Services Administration's regulations
on the disposal of personal property?

How are these regulations for the disposal of personal property
organized?

What are the goals of GSA's personal property regulations?

102-35.20--- What definitions apply to GSA's personal property
regulations?

102-35.25--- What management reports must we provide? 102-35.30--- What
actions must I take or am I authorized

> to take regardless of the property disposition
>
> method?
>
> FEDERAL MANAGEMENT REGULATION

This page intentionally left blank.

102-35-ii (Amendment 2007--01)

PART 102-35---DISPOSITION OF PERSONAL PROPERTY **§ 102-35.20**

**PART 102-35---DISPOSITION OF PERSONAL PROPERTY**

**§102-35.5---What is the scope of the General Services Administration's
regulations on the disposal of personal property?**

The General Services Administration's personal property disposal
regulations are contained in this part and in [parts 102-36]{.underline}
through [102-42]{.underline} of this subchapter B as well as in parts
101-42 and 101-45 of the Federal Property Manage­ment Regulations
(FPMR)(41 CFR parts 101-42 and 101-45). With two exceptions, these
regulations cover the disposal of personal property under the custody
and control of executive agencies located in the United States, the U.S.
Virgin Islands, American Samoa, Guam, Puerto Rico, the Northern Mariana
Islands, the Federated States of Micronesia, the Marshall Islands, and
Palau. The exceptions to this coverage are [part 102-39]{.underline} of
this subchapter B, which applies to the replace­ment of all property
owned by executive agencies worldwide using the exchange/sale authority,
and [§ § 102-36.3 80]{.underline} through [102-36.400,]{.underline}
which apply to the disposal of excess property located in countries and
areas not listed in this subpart, *i.e.,* foreign excess personal
property. The legislative and judicial branches are encouraged to follow
these provisions for prop­erty in their custody and control.

**§102-35.10---How are these regulations for the disposal of personal
property organized?**

The General Services Administration (GSA) has divided its regulations
for the disposal of personal property into the following program areas:

(a) Disposition of excess personal property [(part 102-36]{.underline}
    of this subchapter B).

(b) Donation of surplus personal property [(part 102-37]{.underline} of
    this subchapter B).

(c) Sale of surplus personal property [(part 102-3 8]{.underline} of
    this subchapter B).

(d) Replacement of personal property pursuant to the exchange/sale
    authority [(part 102-39]{.underline} of this subchapter B).

(e) Disposition of seized and forfeited, voluntarily aban­doned, and
    unclaimed personal property [(part 102-41]{.underline} of this
    subchapter B).

(f) Utilization, donation, and disposal of foreign gifts and decorations
    [(part 102-42]{.underline} of this subchapter B).

(g) Utilization and disposal of hazardous materials and certain
    categories of property (part 101-42 of the Federal Property
    Management Regulations (FPMR), 41 CFR part 101-42).

**§102-35.15---What are the goals of GSA's personal property
regulations?**

> The goals of GSA's personal property regulations are to: (a) Improve
> the identification and reporting of excess personal property;

(b) Maximize the use of excess property as the first source of supply to
    minimize expenditures for the purchase of new property, when
    practicable;

**Note to §102-35.15(b):** If there are competing requests among Federal
agencies for excess property, preference will be given to agencies where
the transfer will avoid a new Federal procurement. A transfer to an
agency where the agency will provide the property to a non-Federal
entity for the non-Federal entity's use will be sec­ondary to Federal
use.

(c) Achieve maximum public benefit from the use of Government property
    through the donation of surplus per­sonal property to State and local
    public agencies and other eli­gible non-Federal recipients;

(d) Obtain the optimum monetary return to the Govern­ment for surplus
    personal property sold and personal property sold under the
    exchange/sale authority; and

(e) Reduce management and inventory costs by appro­priate use of the
    abandonment/destruction authority to dis­pose of unneeded personal
    property that has no commercial value or for which the estimated
    cost of continued care and handling would exceed the estimated sales
    proceeds (see FMR [§ § 102-36.305]{.underline} through
    [102-36.330).]{.underline} **§102-35.20---What definitions apply to
    GSA's personal**

> **property regulations?**

The following are definitions of, or cross-references to, some key terms
that apply to GSA's personal property regu­lations in the FMR (CFR Parts
102-36 through 102-42). Other personal property terms are defined in the
sections or parts to which they primarily apply.

"Accountable Personal Property" includes nonexpendable personal property
whose expected useful life is two years or longer and whose acquisition
value, as determined by the agency, warrants tracking in the agency's
property records, including capitalized and sensitive personal property.

"Accountability" means the ability to account for personal property by
providing a complete audit trail for property transactions from receipt
to final disposition.

"Acquisition cost" means the original purchase price of an item.

"Capitalized Personal Property" includes property that is entered on the
agency's general ledger records as a major investment or asset. An
agency must determine its capitaliza­tion thresholds as discussed in
Financial Accounting Standard Advisory Board (FASAB) Statement of
Federal Financial Accounting Standards No. 6 *Accounting for Property,
Plant and Equipment,* Chapter 1, paragraph 13.

"Control" means the ongoing function of maintaining physical oversight
and surveillance of personal property throughout its complete life cycle
using various property

**§102-35.25** FEDERAL MANAGEMENT REGULATION

management tools and techniques taking into account the environment in
which the property is located and its vulnera­bility to theft, waste,
fraud, or abuse.

"Excess personal property" (see [§ 102-3 6.40]{.underline} of this
sub-chapter B).

> "Exchange/sale" (see [§ 102-39.20]{.underline} of this subchapter B).
> "Executive agency" (see [§ 102-36.40]{.underline} of this subchapter
> B). "Federal agency" (see [§ 102-36.40]{.underline} of this subchapter
> B). "Foreign gifts and decorations" (for the definition of rele‑

vant terms, see [§ 102-42.10]{.underline} of this subchapter B).

"Forfeited property" (see [§ 102-41.20]{.underline} of this subchapter
B).

"Inventory" includes a formal listing of all accountable property items
assigned to an agency, along with a formal pro­cess to verify the
condition, location, and quantity of such items. This term may also be
used as a verb to indicate the actions leading to the development of a
listing. In this sense, an inventory must be conducted using an actual
physical count, electronic means, and/or statistical methods.

"National property management officer" means an offi­cial, designated in
accordance with [§ 102-36.45(b)]{.underline} of this sub-chapter B, who
is responsible for ensuring effective acquisition, use, and disposal of
excess property within your agency.

"Personal property" (see [§ 102-36.40]{.underline} of this subchapter
B).

"Property management" means the system of acquiring, maintaining, using
and disposing of the personal property of an organization or entity.

"Seized property" means personal property that has been confiscated by a
Federal agency, and whose care and handling will be the responsibility
of that agency until final ownership is determined by the judicial
process.

"Sensitive Personal Property" includes all items, regard-less of value,
that require special control and accountability due to unusual rates of
loss, theft or misuse, or due to national security or export control
considerations. Such property includes weapons, ammunition, explosives,
information tech­nology equipment with memory capability, cameras, and
communications equipment. These classifications do not pre‑

clude agencies from specifying additional personal property
classifications to effectively manage their programs.

"Surplus personal property" (see [§ 102-37.2 5]{.underline} of this
sub-chapter B).

"Utilization" means the identification, reporting, and transfer of
excess personal property among Federal agencies.

**§102-35.25---What management reports must we provide?**

(a) There are three reports that must be provided. The report
    summarizing the property provided to non-Federal recipients and the
    report summarizing exchange/sale transac­tions (see
    [§§102-36.295]{.underline} and [102-39.75]{.underline} respectively
    of this subchapter B) must be provided every year (negative reports
    are required). In addition, if you conduct negotiated sales of
    surplus personal property valued over \$5,000 in any year, you must
    report this transaction in accordance with [§
    102-38.115]{.underline} (negative reports are not required for this
    report).

(b) The General Services Administration (GSA) may request other reports
    as authorized by 40 U.S.C. 506(a)(1)(A).

**§102-35.30---What actions must I take or am I authorized to take
regardless of the property disposition method?** Regardless of the
disposition method used:

(a) You must maintain property in a safe, secure, and cost-effective
    manner until final disposition.

(b) You have authority to use the abandonment/destruction provisions at
    any stage of the disposal process (see [§§102-36.305]{.underline}
    through [102-36.330]{.underline} and [§102-38.70]{.underline} of
    this subchapter B).

(c) You must implement policies and procedures to remove sensitive or
    classified information from property prior to disposal.
    Agency-affixed markings should be removed, if at all possible, prior
    to personal property perma­nently leaving your agency's control.

(d) Government-owned personal property may only be used as authorized by
    your agency. Title to Govern­ment-owned personal property cannot be
    transferred to a non-Federal entity unless through official
    procedures specif­ically authorized by law.