[Federal Register Volume 62, Number 157 (Thursday, August 14, 1997)]
[Rules and Regulations]
[Pages 43472-43474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21388]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 101-37

[FPMR Amdt. G-112]
RIN 3090-AG54


Management, Use, and Disposal of Government Aircraft Parts

AGENCY: Office of Governmentwide Policy, GSA.

ACTION: Final rule.

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SUMMARY: This regulation provides policy on the management and disposal 
of Government-owned aircraft parts. This change is issued to address 
safety concerns that surplus Government aircraft parts are distributed 
without proper documentation and control, and to establish procedures 
to ensure that only eligible parts are made available for transfer and 
donation purposes.

EFFECTIVE DATE: August 14, 1997.

FOR FURTHER INFORMATION CONTACT: Peter Zuidema, Director, Aircraft 
Management Policy Division (MTA), 202-219-1377.

SUPPLEMENTARY INFORMATION: The General Services Administration (GSA) 
has determined that this rule is not a significant regulatory action 
for the purposes of Executive Order 12866.

Regulatory Flexibility Act

    This rule is not required to be published in the Federal Register 
for notice and comment. Therefore, the Regulatory Flexibility Act does 
not apply.

Paperwork Reduction Act

    GSA has determined that the Paperwork Reduction Act (44 U.S.C. 
chapter 35) does not apply because this regulation does not contain any 
information collection requirements that require the approval of the 
Office of Management and Budget. This rule also is exempt from 
Congressional review prescribed under 5 U.S.C. 801 since it relates 
solely to agency management and personnel. This rule is written in a 
``plain English'' style.

What is the ``plain English'' style of regulation writing?

    The ``plain English'' style of regulation writing is a new, simpler 
to read and understand, question and answer regulatory format.

How does the plain English style of regulation writing affect 
employees?

    A question and its answer combine to establish a rule. The employee 
and the agency must follow the language contained in both the question 
and its answer.

List of Subjects in 41 CFR Part 101-37

    Aircraft, Government property management.

    For the reasons set forth in the preamble, 41 CFR part 101-37 is 
amended as follows:

PART 101-37--[AMENDED]

    1. The authority citation for Part 101-37 continues to read as 
follows:

    Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c); the 
Budget and Accounting Act of 1921, as amended; the Budget and 
Accounting Procedures Act of 1950, as amended; Reorganization Plan 
No. 2 of 1970; Executive Order 11541; and OMB circular No. A-126 
(Revised May 22, 1992).

    2. Section 101-37.100 is amended by adding in alphabetical order 
the following definitions:


Sec. 101-37.100  Definitions.

* * * * *
    Aircraft part means any part, component, system, or assembly 
primarily designated for aircraft.
* * * * *
    Criticality Code is the one-digit code assigned by Department of 
Defense to designate an aircraft part as a Flight Safety Critical 
Aircraft Part (FSCAP).
* * * * *
    Flight Safety Critical Aircraft Part (FSCAP) means any aircraft 
part, assembly, or installation containing a critical characteristic 
whose failure, malfunction, or absence could cause a catastrophic 
failure resulting in loss or serious damage to the aircraft or an 
uncommanded engine shut-down resulting in an unsafe condition.
* * * * *
    Military surplus aircraft part is an aircraft part that has been 
released as surplus by the military, even if subsequently resold by 
manufacturers, owner/operators, repair facilities, or any other parts 
supplier.
* * * * *
    Production approval holder is the holder of a Federal Aviation 
Administration Production Certificate (PC), Approved Production 
Inspection System (APIS), Parts Manufacturer Approval (PMA), or 
Technical Standard Order (TSO) who controls the design and quality of a 
product or part thereof, in accordance with Part 21 of the Federal 
Aviation Regulations (14 CFR 21.305).
* * * * *
    Replacement means the process of acquiring property specifically to 
be used in place of property which is still needed but will no longer 
adequately perform all the tasks for which it was used.
* * * * *
    Unsalvageable aircraft part is an aircraft part which cannot be 
restored to an airworthy condition due to its age, physical condition, 
a non-repairable defect, insufficient documentation, or non-conformance 
with applicable specifications. For additional information on 
disposition of such parts refer to FAA Advisory Circular No. 21-38, or 
other current applicable guidelines.
    3. Subpart 101-37.6 is added to read as follows:

Subpart 101-37.6--Management, Use, and Disposal of Government Aircraft 
Parts

Sec.
101-37.600  What does this subpart do?
101-37.601  What responsibilities does the owning/operating agency 
have in the management and use of Government aircraft parts?
101-37.602  Are there special requirements in the management, use 
and disposal of military Flight Safety Critical Aircraft Parts 
(FSCAP)?
101-37.603  What are the owning/operating agency's responsibilities 
in reporting excess Government aircraft parts?
101-37.604  What are the procedures for transferring and donating 
excess and surplus Government aircraft parts?
101-37.605  What are the receiving agency's responsibilities in the 
transfer and donation of excess and surplus Government aircraft 
parts?

[[Page 43473]]

101-37.606  What are the GSA approving official's responsibilities 
in transferring and donating excess and surplus Government aircraft 
parts?
101-37.607  What are the State Agency's responsibilities in the 
donation of surplus Government aircraft parts?
101-37.608  What are the responsibilities of the Federal agency 
conducting the sale of Government aircraft parts?
101-37.609  What are the procedures for mutilating unsalvageable 
aircraft parts?
101-37.610  Are there special procedures for the exchange/sale of 
Government aircraft parts?

Subpart 101-37.6--Management, Use, and Disposal of Government 
Aircraft Parts


Sec. 101-37.600  What does this subpart do?

    This subpart prescribes special policies and procedures governing 
the management, use, and disposal of Government-owned aircraft parts.


Sec. 101-37.601  What responsibilities does the owning/operating agency 
have in the management and use of Government aircraft parts?

    (a) The owning/operating agency is responsible for ensuring the 
continued airworthiness of an aircraft, including replacement parts. 
The owning/operating agency must ensure that replacement parts conform 
to an approved type design, have been maintained in accordance with 
applicable standards, and are in condition for safe operation.
    (b) In evaluating the acceptability of a part, the owning/operating 
agency should review the appropriate log books and historical/
maintenance records. The maintenance records must contain the data set 
forth in the latest version of Federal Aviation Administration (FAA) 
Advisory Circular 43-9. When the quality and origin of a part is 
questionable, the owning/operating agency should seek guidance from the 
local FAA Flight Standards District Office (FSDO) in establishing the 
part's airworthiness eligibility.


Sec. 101-37.602  Are there special requirements in the management, use, 
and disposal of military Flight Safety Critical Aircraft Parts (FSCAP)?

    (a) Yes. Any aircraft part designated by the Department of Defense 
as a FSCAP must be identified with the appropriate FSCAP Criticality 
Code which must be perpetuated on all documentation pertaining to such 
parts.
    (b) A military FSCAP may be installed on a FAA type-certificated 
aircraft holding either a restricted or standard airworthiness 
certificate, provided the part is inspected and approved for such 
installation in accordance with the applicable Federal Aviation 
Regulations.
    (c) If a FSCAP has no maintenance or historical records with which 
to determine its airworthiness, it must be mutilated and scrapped in 
accordance with Sec. 101-37.609. However, FSCAP still in its original 
unopened package, and with sufficient documentation traceable to the 
Production Approval Holder (PAH), need not be mutilated. Undocumented 
FSCAP with no traceability to either the original manufacturer or PAH 
must not be made available for transfer or donation. For assistance in 
the evaluation of FSCAP, contact the local FAA Flight Standards 
District Office (FSDO).


Sec. 101-37.603   What are the owning/operating agency's 
responsibilities in reporting excess Government aircraft parts?

    (a) The owning/operating agency must report excess aircraft parts 
to GSA in accordance with the provisions set forth in part 101-43 of 
this chapter. The owning/operating agency must indicate on the 
reporting document if any of the parts are life-limited parts and/or 
military FSCAP, and ensure that tags and labels, applicable historical 
data and maintenance records accompany these aircraft parts.
    (b) The owning/operating agency must identify excess aircraft parts 
which are unsalvageable according to FAA or DOD guidance, and ensure 
that such parts are mutilated in accordance with Sec. 101-37.609. The 
owning/operating agency should not report such parts to GSA.


Sec. 101-37.604  What are the procedures for transferring and donating 
excess and surplus Government aircraft parts?

    (a) Transfer and donate excess and surplus aircraft parts in 
accordance with part 101-43, Utilization of Personal Property, and part 
101-44, Donation of Personal Property.
    (b) Unsalvageable aircraft parts must not be issued for transfer or 
donation; they must be mutilated in accordance with Sec. 101-37.609.


Sec. 101-37.605  What are the receiving agency's responsibilities in 
the transfer or donation of excess and surplus Government aircraft 
parts?

    (a) The receiving agency must verify that all applicable labels and 
tags, and historical/modification records are furnished with the 
aircraft parts. The receiving agency must also ensure the continued 
airworthiness of these parts by following proper storage, protection 
and maintenance procedures, and by maintaining appropriate records 
throughout the life cycle of these parts.
    (b) The receiving agency must perpetuate the DOD-assigned 
Criticality Code on all property records of acquired military FSCAP. 
The receiving agency must ensure that flight use of military FSCAP on 
civil aircraft meets all Federal Aviation Regulation requirements.
    (c) The receiving agency must certify and ensure that when a 
transferred or donated part is no longer needed, and the part is 
determined to be unsalvageable, the part must be mutilated in 
accordance with Sec. 101-37.609 and properly disposed.


Sec. 101-37.606  What are the GSA approving official's responsibilities 
in transferring and donating excess and surplus Government aircraft 
parts?

    (a) The GSA approving official must review transfer documents of 
excess and surplus aircraft parts for completeness and accuracy, and 
ensure that the certification required in Sec. 101-37.605(c) is 
included in the transfer document.
    (b) The GSA approving official must also ensure the following 
statement is included on the SF123, Transfer Order Surplus Personal 
Property:

    ``Due to the critical nature of aircraft parts failure and the 
resulting potential safety threat, recipients of aircraft parts must 
ensure that any parts installed on a civil aircraft meet applicable 
Federal Aviation Administration Regulations, and that required 
certifications are obtained. The General Services Administration 
makes no representation as to a part's conformance with FAA 
requirements.''


Sec. 101-37.607  What are the State Agency's responsibilities in the 
donation of surplus Government aircraft parts?

    (a) The State Agency must review donation transfer documents for 
completeness and accuracy, and ensure that the certification provisions 
set forth in Sec. 101-37.605(c) is included in the transfer documents.
    (b) The State Agency must ensure that when a donated part is no 
longer needed, and the part is determined to be unsalvageable, the 
donee mutilates the part in accordance with Sec. 101-37.609.


Sec. 101-37.608  What are the responsibilities of the Federal agency 
conducting the sale of Government aircraft parts?

    (a) The Federal agency must sell Government aircraft parts in 
accordance with the provisions set forth in Part 101-45, Sale, 
Abandonment, or Destruction of Personal Property of this chapter.
    (b) The Federal agency must ensure that the documentation required 
pursuant to Sec. 101-37.603(a) accompanies the parts at the time of 
sale, and that sales offerings on aircraft parts contain the following 
statement:


[[Page 43474]]


    ``Purchasers are warned that the parts purchased herewith may 
not be in compliance with applicable Federal Aviation Administration 
requirements. Purchasers are not exempted from and must comply with 
applicable Federal Aviation Administration requirements. Purchasers 
are solely responsible for all FAA inspections and/or modifications 
necessary to bring the purchased items into compliance with 14 CFR 
(Code of Federal Regulations).''

    (c) The Federal agency must ensure that the following certification 
is executed by the purchaser and received by the Government prior to 
releasing such parts to the purchaser:

    ``The purchaser agrees that the Government shall not be liable 
for personal injuries to, disabilities of, or death of the 
purchaser, the purchaser's employees, or to any other persons 
arising from or incident to the purchase of this item, its use, or 
disposition. The purchaser shall hold the Government harmless from 
any or all debts, liabilities, judgments, costs, demands, suits, 
actions, or claims of any nature arising from or incident to 
purchase or resale of this item.''


Sec. 101-37.609  What are the procedures for mutilating unsalvageable 
aircraft parts?

    (a) Identify unsalvageable aircraft parts which require mutilation.
    (b) Mutilate unsalvageable aircraft parts so they can no longer be 
utilized for aviation purposes. Mutilation includes destruction of the 
data plate, removing the serial/lot/part number, and cutting, crushing, 
grinding, melting, burning, or other means which will prevent the parts 
from being misidentified or used as serviceable aircraft parts. Obtain 
additional guidance on the mutilation of unsalvageable aircraft parts 
in FAA AC No. 21-38, Disposition of Unsalvageable Aircraft Parts and 
Materials.
    (c) Ensure an authorized agency official witnesses and documents 
the mutilation, retain a signed certification and statement of 
mutilation.
    (d) If unable to perform the mutilation, turn in the parts to a 
Federal or Federally-approved facility for mutilation and proper 
disposition. Ensure that contractor performance is in accordance with 
the provisions of this part.
    (e) Ensure that mutilated aircraft parts are sold only as scrap.


Sec. 101-37.610  Are there special procedures for the exchange/sale of 
Government aircraft parts?

    Yes. Executive agencies may exchange or sell aircraft parts as part 
of a transaction to acquire similar replacement parts in accordance 
with FPMR part 101-46. In addition to the requirements of this subpart, 
agencies must ensure that the exchange/sale transaction is accomplished 
in accordance with the methods and procedures contained in part 101-46 
of this chapter, and comply with the restrictions and limitations under 
Sec. 101-46.202 of this chapter.
    (a) Prior to the proposed exchange/sale, agencies should determine 
whether the parts identified for disposition are airworthy parts. For 
additional guidance refer to the applicable FAA Advisory Circular(s), 
or contact the local FAA FSDO.
    (b) At the time of exchange or sale, agencies must ensure that 
applicable labels and tags, historical data and modification records 
accompany the aircraft parts prior to release. The records must contain 
the information and content as required by current DOD and FAA 
requirements for maintenance and inspections.
    (c) Life limited parts that have reached or exceeded their life 
limits, or which have missing or incomplete documentation, must either 
be returned to the FAA production approval holder as part of an 
exchange transaction, or mutilated in accordance with Sec. 101-37.609.
    (d) Unsalvageable aircraft parts, other than parts in paragraph (c) 
of this section, must not be used for exchange/sale purposes; they must 
be mutilated in accordance with Sec. 101-37.609.

    Dated: July 7, 1997.
David J. Barram,
Administrator of General Services.
[FR Doc. 97-21388 Filed 8-13-97; 8:45 am]
BILLING CODE 6820-24-U