78144 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 273 

[Docket ID: DOD–2013–OS–0145] 

RIN 0790–AJ11 

Defense Materiel Disposition 

AGENCY: Under Secretary of Defense for 

Acquisition, Technology, and Logistics, 

DoD. 

ACTION: Interim final rule. 

SUMMARY: This interim final rule 

prescribes uniform procedures for the 

disposition of DoD personal property 

and establishes the sequence of 

processes for disposition of personal 

property of the DoD Components. 

Subpart A implements the statutory 

authority and regulations under which 

DoD personal property disposal takes 

place, as well as the scope and 

applicability for the program; defines 

the responsibilities of personnel and 

agencies involved in the Defense 

Materiel Disposition Program; provides 

procedures for disposal of excess 

property and scrap; and provides 

procedures for property donations, 

loans, and exchanges. Subpart B 

implements policy for reutilization, 

transfer, excess property screening, and 

issue of surplus property and foreign 

excess personal property (FEPP), scrap 

generated from qualified recycling 

programs (QRPs), and non-QRP scrap; 

and provides guidance for removing 

excess material through security 

assistance programs and foreign military 

sales (FMS). 

DATES: Effective December 29, 2014. 

Comments must be received by 

February 27, 2015. 

ADDRESSES: You may submit comments, 

identified by docket number and/or RIN 

number and title, by any of the 

following methods: 

• Federal Rulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Federal Docket Management 

System Office, 4800 Mark Center Drive, 

East Tower, Suite 02G09, Alexandria, 

VA 22350–3100. 

Instructions: All submissions received 

must include the agency name and 

docket number or Regulatory 

Information Number (RIN) for this 

Federal Register document. The general 

policy for comments and other 

submissions from members of the public 

is to make these submissions available 

for public viewing on the Internet at 

http://www.regulations.gov as they are 

received without change, including any 

personal identifiers or contact 

information. 

FOR FURTHER INFORMATION CONTACT: 

Randal Kendrick, 571–372–5202. 

SUPPLEMENTARY INFORMATION:

Retrospective Review 

This rule is part of DoD’s 

retrospective plan, completed in August 

2011, under Executive Order 13563, 

‘‘Improving Regulation and Regulatory 

Review.’’ DoD’s full plan and updates 

can be accessed at: http:// 

www.regulations.gov/#!docketDetail;

dct=FR+PR+N+O+SR;rpp=

10;po=0;D=DOD-2011-OS-0036. 

Interim Rule Justification 

This rule is being published as an 

interim rule in order to provide property 

disposition procedures during one of 

the largest periods of drawdown in 

recent history. As the wars in Iraq and 

Afghanistan come to a close and the 

Department prepares for reductions in 

force structure, these procedures will 

guide the effective and efficient 

disposition of property to maximize 

stewardship of taxpayer-funded 

equipment. Failure to implement this as 

an interim rule will lead to a continuing 

reliance on individual waivers and 

exceptions to the current 1997 policy. 

Per direction from the Deputy Secretary 

of Defense December 16, 2013 

memorandum, it is essential that DoD 

issuances remain current and accurate. 

Issuances codify DoD policy and 

direction, assignment of responsibilities, 

and delegations of authority and 

provide the foundational basis to 

efficiently and effectively managed DoD 

operations. DLA Disposition Services 

manages the disposal of hazardous 

property for DoD activities according to 

the same priorities as other property: 

Reutilization within DoD, transfer to 

other federal agencies, donations to 

qualified state and nonprofit 

organizations, and sale to the public 

including recyclers. This process 

maximizes the use of each item and 

minimizes the environmental risks and 

the costs associated with disposal. 

Furthermore, a lack of clear guidance 

will cause potential confusion on the 

part of both the public and the 

Department of Defense and suboptimize the disposition decisionmaking process. The procedures for 

safely handling the hazardous property 

have undergone shifts between 

departments and agencies, e.g., 

management of some items have moved 

from Department of State to Department 

of Commerce. Regulations were 

established which changed what 

materiel can be exported or sold. Some 

types of materiel are no longer released 

but now are incorporated into dual use 

items that are restricted. Waivers, 

interim changes, and changes between 

agencies and departments increase the 

risk of organizations following outdated 

procedures and incorrectly releasing 

materiel. For example, the 1997 manual 

does not include new technology, 

sensitive, and controlled items such as 

night vision, infrared and stealth listed 

items which are receiving a lot of public 

attention and require specific disposal 

procedures. The rule also updates the 

1997 procedures for nuclear weapons 

related material (NWRW) disposal, 

controls on military unique uniforms, 

and requirements for demilitarization 

code B and Q DOD property which may 

be provided to law enforcement 

activities. Clear and current procedures 

can help prevent the occurrence of 

inadvertent releases of new technology, 

hazardous, sensitive, or controlled items 

that could compromise safety and 

security. 

Executive Summary 

I. Purpose of the Regulatory Action 

a. The need for the regulatory action 

and how the action will meet that need 

The purpose of this regulatory action 

is to define responsibilities of personnel 

and agencies involved in the Defense 

Materiel Disposition Program, and 

provide procedures for disposal of 

excess property and scrap, property 

donations, loans, and exchanges. It 

provides responsibilities and 

procedures about disposal guidance and 

procedures; and reutilization, transfer, 

and sale of property for defense materiel 

disposition. This regulatory action is 

important because of the drawdown of 

forces from the wars in Iraq and 

Afghanistan which resulted in surplus 

property (including hazardous property 

as defined in this rule) for which the 

proper disposition must be determined. 

This includes materials that could be 

considered hazardous waste under 

Resource Conservation and Recovery 

Act requirements in 42 U.S.C. 6901 et 

seq. upon being discarded. 

b. Succinct statement of legal authority 

for the regulatory action (explaining, in 

brief, the legal authority laid out later in 

the preamble) 

Given the authority in: 

• 10 U.S.C. 2194, 2208, 2572, 2576, 

2576a, and 2576b, the Secretary of 

Defense may: 

Æ Make surplus property available for 

donation to eligible recipients; donate, 

lend, or exchange without expense to 

the United States books, manuscripts, 

works of art, historical artifacts, 

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Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 78145 

drawings, plans, models and 

condemned or obsolete combat materiel 

that are not needed by the Military 

Services. 

Æ Sell or donate designated items to 

State and local law enforcement, 

firefighting, homeland security, and 

emergency management agencies. 

• 10 U.S.C. 2557, the Secretary of 

Defense may provide non-lethal DoD 

excess personal property for 

humanitarian purposes. 

• 10 U.S.C. 2577, the Secretary of 

Defense may operate recycling programs 

at military installations and sell 

recyclable materials. 

• 10 U.S.C. 4683, the Secretary of the 

Army may loan to recognized veterans’ 

organizations (or local units of national 

veterans’ organizations recognized by 

the U.S. Department of Veterans Affairs) 

obsolete or condemned rifles or 

cartridge belts for use by that unit for 

ceremonial purposes. 

• 10 U.S.C. 7306, the Secretary of the 

Navy, with approval of Congress, may 

donate to eligible recipients any vessel 

stricken from the Naval Vessel Register 

or any captured vessel for use as a 

museum or memorial for public display. 

• 10 U.S.C. 7545, the Secretary of the 

Navy may donate or loan captured, 

condemned, or obsolete ordnance 

materiel, books, manuscripts, works of 

art, drawings, plans, models, trophies 

and flags, and other condemned or 

obsolete materiel, as well as materiel of 

historical interest. 

• 15 U.S.C. 3710(i), the Secretary of 

Defense may transfer (donate) laboratory 

(e.g., scientific, research) equipment that 

is excess to the needs of that laboratory 

to public and private schools and 

nonprofit institutions in the U.S. zone of 

interior (ZI). 

• 22 U.S.C. 2151, 2321b, 2321j, 2751, 

and 2778 et se., the Secretary of Defense 

with the approval of the Secretary of 

State, may transfer excess defense 

articles to eligible recipients. 

• 40 U.S.C. subtitle I and sections 

101, 541 et se., and 701, the Secretary 

of Defense may efficiently and 

economically dispose of excess 

property. 

• 42 U.S.C. 3015 and 3020, the 

Secretary of Defense may donate surplus 

property to State and local government 

agencies, or nonprofit organizations or 

institutions that receive federal funding 

to conduct programs for older 

individuals. 

• 42 U.S.C. Chapter 68, the Secretary 

of Defense may provide federal 

assistance to States, local governments, 

and relief organizations for emergency 

or major disaster assistance purposes. 

II. Summary of the Major Provisions of 

the Regulatory Action in Question 

This rule provides general guidelines 

and procedures for property disposition; 

provides guidance for budgeting for the 

disposal of excess, surplus, and foreign 

excess personal property (FEPP) 

property with updates via program 

budget decisions; ensures cost-effective 

disposal of precious metals bearing 

scrap and end items for the 

replenishment of valuable resources 

through the DoD Precious Metals 

Recovery Program (PMRP); outlines DoD 

screening methods for disposing of 

materiel; and describes procedures 

relating to foreign military sales. 

III. Costs and Benefits 

Benefits to the public and DoD: 

a. Reduction of excess property from 

DoD inventory. 

b. Cost avoidance for transportation 

and storage expenses of excess property. 

c. Redistribution of excess property to 

other federal, state, and local 

organizations. 

d. Environmental benefit of recycling 

material. 

e. Reutilize, transfer, and donate 

excess property. Original acquisition 

property value of $2.5 B returned to the 

U.S. Treasury in FY12. 

f. Revenue from sales of excess 

property. $77 M returned to the U.S. 

Treasury in FY12 Costs to the public 

and DoD: 

a. $ 405M for 90 field offices and 

1,500 people in DLA Disposition 

services worldwide to dispose of excess 

property and manage surplus useable 

property transfers, sales, and donations. 

b. Cost to cut, shred, and demilitarize 

materiel is offset by the sales and 

recycling of the residue. 

Executive Order 12866, ‘‘Regulatory 

Planning and Review’’ and Executive 

Order 13563, ‘‘Improving Regulation 

and Regulatory Review’’ 

Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distribute impacts, and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This rule has been 

designated a ‘‘significant regulatory 

action,’’ although not economically 

significant, under section 3(f) of 

Executive Order 12866. Accordingly, 

the rule has been reviewed by the Office 

of Management and Budget (OMB). 

Sec. 202, Pub. L. 104–4, ‘‘Unfunded 

Mandates Reform Act’’ 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 (UMRA) 

(Pub. L. 104–4) requires agencies assess 

anticipated costs and benefits before 

issuing any rule whose mandates 

require spending in any 1 year of $100 

million in 1995 dollars, updated 

annually for inflation. In 2014, that 

threshold is approximately $141 

million. This interim final rule will not 

mandate any requirements for State, 

local, or tribal governments, nor will it 

affect private sector costs. 

Public Law 96–354, ‘‘Regulatory 

Flexibility Act’’ (5 U.S.C. 601) 

The Department of Defense certifies 

that this interim final rule is not subject 

to the Regulatory Flexibility Act (5 

U.S.C. 601) because it would not, if 

promulgated, have a significant 

economic impact on a substantial 

number of small entities. Therefore, the 

Regulatory Flexibility Act, as amended, 

does not require us to prepare a 

regulatory flexibility analysis. 

Public Law 96–511, ‘‘Paperwork 

Reduction Act’’ (44 U.S.C. Chapter 35) 

Sections 273.15(a)(6)(i)(E)(2) and 

273.15(a)(6)(i)(D) of this interim final 

rule contain information collection 

requirements. DoD has submitted the 

following proposals to OMB under the 

provisions of the Paperwork Reduction 

Act (44 U.S.C. Chapter 35). OMB has 

approved these collections under OMB 

Control Number 0704–0382, ‘‘End-Use 

Certificate’’ and 0704–0534, ‘‘Defense 

Materiel Disposition: Defense Materiel 

Disposition: ‘‘Sale of Government 

Property Item Bid Page’’ (SF 114); 

‘‘Statement of Intent’’ (DRMS Form 

1645); and, ‘‘Pre-Award Review’’ (DRMS 

2006)’’. As DoD processed an emergency 

collection for the requirements 

approved under 0704–0534, we are 

requesting comments in the preamble of 

this interim final rule to continue to 

meet the additional notice and comment 

requirements of the PRA. Comments are 

invited on: (a) Whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of DoD, including whether the 

information will have practical utility; 

(b) the accuracy of the estimate of the 

burden of the proposed information 

collection; (c) ways to enhance the 

quality, utility, and clarity of the 

information to be collected; and (d) 

ways to minimize the burden of the 

information collection on respondents, 

including the use of automated 

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78146 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

collection techniques or other forms of 

information technology. 

Title: Defense Materiel Disposition: ‘‘Sale of 

Government Property Item Bid Page’’ (SF 

114); ‘‘Statement of Intent’’ (DRMS Form 

1645); and, ‘‘Pre-Award Review’’ (DRMS 

2006). 

Type of Request: Collection in use without 

OMB approval. 

‘‘SALE OF GOVERNMENT PROPERTY 

ITEM BID PAGE’’ (SF 114) 

Number of Respondents: 45. 

Responses per Respondent: 1. 

Annual Responses: 45. 

Average Burden per Response: 45 minutes. 

Annual Burden Hours: 33.75 hours. 

Needs and Uses: The SF 114 is completed 

by members of the public who are placing a 

bid on an item that the DLA Disposition 

Services are selling. 

‘‘STATEMENT OF INTENT’’ (DRMS 1645) 

Number of Respondents: 72. 

Responses per Respondent: 1. 

Annual Responses: 72. 

Average Burden per Response: 1.5 hours. 

Annual Burden Hours: 108 hours. 

Needs and Uses: The DRMS Form 1645 

form is completed by the bidder to 

demonstrate responsibility and compliance 

with federal, state, county, city or local 

environmental/safety regulations or 

ordinances on the use and storage of 

Hazardous Property (HP) to qualify for an 

award. 

‘‘PRE-AWARD REVIEW’’ (DRMS 2006) 

Number of Respondents: 72. 

Responses per Respondent: 1. 

Annual Responses: 72. 

Average Burden per Response: 1.25 hours. 

Annual Burden Hours: 90 hours. 

Needs and Uses: The review is completed 

by the customer (individual or company) 

who is submitting a bid for materiel to ensure 

they are able to comply with handling and 

storage requirements for the hazardous 

materiel. The review is used by the DoD 

Disposition site to ensure that the hazardous 

materiel will be safely handled by the 

customer upon receipt and that they have 

materiel handling equipment and vehicles 

that can safely transport the hazardous 

materiel. 

Totals 

Number of Respondents: 189. 

Responses per Respondent: 1. 

Annual Responses: 189. 

Average Burden per Response: 1.25. 

Annual Burden Hours: 232 hours. 

Affected Public: Individuals or 

Households; Businesses or Other For Profit. 

Frequency: On Occasion. 

Respondent’s Obligation: Required to 

Obtain or Retain Benefits. 

OMB Desk Officer: Jasmeet Seehra. 

Written comments and 

recommendations on the proposed 

information collection should be sent to 

Ms. Jasmeet Seehra at the Office of 

Management and Budget, Desk Officer 

for DoD, Room 10236, New Executive 

Office Building, Washington, DC 20503, 

with a copy to the 3500 Defense 

Pentagon Room 1E518, Washington, DC 

20301–3500. Comments can be received 

from 30 to 60 days after the date of this 

notice, but comments to OMB will be 

most useful if received by OMB within 

30 days after the date of this notice. 

You may also submit comments, 

identified by docket number and title, 

by the following method: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

Instructions: All submissions received 

must include the agency name, docket 

number and title for this Federal 

Register document. The general policy 

for comments and other submissions 

from members of the public is to make 

these submissions available for public 

viewing on the Internet at http://

www.regulations.gov as they are 

received without change, including any 

personal identifiers or contact 

information. 

To request more information on this 

proposed information collection or to 

obtain a copy of the proposal and 

associated collection instruments, 

please write to Randy Kendrick, 3500 

Defense Pentagon Room 1E518, 

Washington, DC 20301–3500, Phone: 

571–372–5202. 

Executive Order 13132, ‘‘Federalism’’ 

Executive Order 13132 establishes 

certain requirements that an agency 

must meet when it promulgates a 

proposed rule (and subsequent final 

rule) that imposes substantial direct 

requirement costs on State and local 

governments, preempts State law, or 

otherwise has Federalism implications. 

This interim final rule will not have a 

substantial effect on State and local 

governments. 

List of Subjects in 32 CFR Part 273 

Defense materiel, Military arms sales, 

Waste treatment and disposal. 

Accordingly, 32 CFR part 273 is 

added to read as follows: 

PART 273—DEFENSE MATERIEL 

DISPOSITION 

Subpart A—Disposal Guidance and 

Procedures 

Sec. 

273.1 Purpose. 

273.2 Applicability. 

273.3 Definitions. 

273.4 Policy. 

273.5 Responsibilities. 

273.6 Procedures. 

273.7 Excess DoD property and scrap 

disposal processing. 

273.8 Donations, loans, and exchanges. 

273.9 Through-life traceability of uniquely 

identified items. 

Subpart B—Reutilization, Transfer, and Sale 

of Property 

Sec. 

273.10 Purpose. 

273.11 Applicability. 

273.12 Definitions. 

273.13 Policy. 

273.14 Responsibilities. 

273.15 Procedures. 

Authority: 10 U.S.C. 2194, 2208, 2557, 

2572, 2576, 2576a, 2576b, 2577, 4683, 7306, 

7545; 15 U.S.C. 3710(i); 22 U.S.C. 2151, 

2321b, 2321j, 2751, and 2778 et seq.; 40 

U.S.C. subtitle I and sections 101, 541 et seq., 

and 701; 42 U.S.C. 3015 and 3020; and 42 

U.S.C. Chapter 68. 

PART 273—DEFENSE MATERIEL 

DISPOSITION 

Subpart A—Disposal Guidance and 

Procedures 

§ 273.1 Purpose. 

(a) This part is composed of several 

subparts, each containing its own 

purpose. In accordance with the 

authority in DoD Directive 5134.12, 

‘‘Assistant Secretary of Defense for 

Logistics and Materiel Readiness 

(ASD(L&MR))’’ (available at http://

www.dtic.mil/whs/directives/corres/pdf/

513412p.pdf); DoD Instruction 4140.01, 

‘‘Supply Chain Materiel Management 

Policy’’ (available at http://

www.dtic.mil/whs/directives/corres/pdf/

414001p.pdf); and DoD Instruction 

4160.28, ‘‘DoD Demilitarization (DEMIL) 

Program’’ (available at http://

www.dtic.mil/whs/directives/corres/pdf/

416028p.pdf), this part: 

(1) Prescribes uniform procedures for 

the disposition of DoD personal 

property. 

(2) Establishes the sequence of 

processes for disposition of personal 

property of the DoD Components. 

(b) This subpart: 

(1) Implements the statutory authority 

and regulations under which DoD 

personal property disposal takes place, 

as well as the scope and applicability 

for the program. 

(2) Defines the responsibilities of 

personnel and agencies involved in the 

Defense Materiel Disposition Program. 

(3) Provides procedures for disposal 

of excess property and scrap. 

(4) Provides procedures for property 

donations, loans, and exchanges. 

§ 273.2 Applicability. 

(a) This subpart applies to the Office 

of the Secretary of Defense, the Military 

Departments, the Office of the Chairman 

of the Joint Chiefs of Staff and the Joint 

Staff, the Combatant Commands, the 

Office of the Inspector General of the 

Department of Defense, the Defense 

Agencies, the DoD Field Activities, and 

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all other organizational entities within 

the DoD (referred to collectively in this 

subpart as the ‘‘DoD Components’’). 

(b) If a procedural conflict exists, 

these references take precedence: 

(1) 41 CFR chapters 101 and 102 (also 

known as the Federal Property 

Management Regulations and Federal 

Management Regulation (FPMR and 

FMR)). 

(2) 40 U.S.C. subtitle I, also known as 

the Federal Property and Administrative 

Services Act. 

§ 273.3 Definitions. 

Unless otherwise noted, these terms 

and their definitions are for the purpose 

of this subpart. 

Abandonment and destruction (A/D). 

A method for handling property that: 

(1) Is abandoned and a diligent effort 

to determine the owner is unsuccessful. 

(2) Is uneconomical to repair or the 

estimated costs of the continued care 

and handling of the property exceeds 

the estimated proceeds of sale. 

(3) Has an estimated cost of disposal 

by A/D that is less than the net sales 

cost. 

Accountability. The obligation 

imposed by law, lawful order, or 

regulation, accepted by a person for 

keeping accurate records to ensure 

control of property, documents, or 

funds, with or without possession of the 

property. The person who is 

accountable is concerned with control 

while the person who has possession is 

responsible for custody, care, and 

safekeeping. 

Acquisition cost. The amount paid for 

property, including transportation costs, 

net any trade and cash discounts. Also 

see standard price. 

Ammunition. Generic term related 

mainly to articles of military application 

consisting of all kinds of bombs, 

grenades, rockets, mines, projectiles, 

and other similar devices or 

contrivances. 

Automatic identification technology 

(AIT). A suite of technologies enabling 

the automatic capture of data, thereby 

enhancing the ability to identify, track, 

document, and control assets (e.g. 

materiel), deploying and redeploying 

forces, equipment, personnel, and 

sustainment cargo. AIT encompasses a 

variety of data storage or carrier 

technologies, such as linear bar codes, 

two-dimensional symbols (PDF417 and 

Data Matrix), magnetic strips, integrated 

circuit cards, optical laser discs (optical 

memory cards or compact discs), 

satellite tracking transponders, and 

radio frequency identification tags used 

for marking or ‘‘tagging’’ individual 

items, equipment, air pallets, or 

containers. Known commercially as 

automatic identification data capture. 

Batchlot. The physical grouping of 

individual receipts of low-dollar-value 

property. The physical grouping 

consolidates multiple disposal turn-in 

documents (DTIDs) under a single cover 

DTID. The objective of batchlotting is to 

reduce the time and costs related to 

physical handling and administrative 

processes required for receiving items 

individually. The cover DTID 

establishes accountability in the 

accountable record and individual line 

items lose their identity. 

Bid. A response to an offer to sell that, 

if accepted, would bind the bidder to 

the terms and conditions of the contract 

(including the bid price). 

Bidder. Any entity that is responding 

to or has responded to an offer to sell. 

Care and handling. Includes packing, 

storing, handling, and conserving 

excess, surplus, and foreign excess 

property. In the case of property that is 

dangerous to public health, safety, or 

the environment, this includes 

destroying or rendering such property 

harmless. 

Commerce control list items (CCLI) 

(formerly known as strategic list item). 

Commodities and associated technical 

data (including software) subject to 

export controls in accordance with 

Export Administration Regulations 

(EAR) in 15 CFR parts 730 through 774. 

The EAR contains the CCL and is 

administered by the Bureau of Industry 

and Security, Department of Commerce 

(DOC). 

Component. An integral constituent of 

a complete (end) item. It may consist of 

a part, assembly, or subassembly. 

Container. Any portable device in 

which a materiel is stored, transported, 

disposed of, or otherwise handled, 

including those whose last content was 

a hazardous or an acutely hazardous 

material, waste, or substance. 

Continental United States (CONUS). 

Territory, including the adjacent 

territorial waters, located within the 

North American continent between 

Canada and Mexico (comprises 48 

States and the District of Columbia). 

Controlled substances. (1) Any 

narcotic, depressant, stimulant, or 

hallucinogenic drug or any other drug or 

other substance or immediate precursor 

included in 21 U.S.C. 801. Exempted 

chemical preparations and mixtures and 

excluded substances are listed in 21 

CFR part 1308. 

(2) Any other drug or substance that 

the United States Attorney General 

determines to be subject to control in 

accordance with 21 CFR part 1308. 

(3) Any other drug or substance that, 

by international treaty, convention, or 

protocol, is to be controlled by the 

United States. 

Commercial off the shelf (COTS) 

software. Software that is available 

through lease or purchase in the 

commercial market. Included in COTS 

are the operating system software that 

runs on the information technology 

equipment and other significant 

software purchased with a license that 

supports system or customer 

requirements. 

Counterfeit. A counterfeit part is one 

whose identity has been deliberately 

altered, misrepresented, or is offered as 

an unauthorized product substitution. 

Defective property. An item, part, or 

component that does not meet military, 

Federal, or commercial specifications as 

required by military procurement 

contracts because of unserviceability, 

finite life, or product quality deficiency 

and is determined to be unsafe for use. 

Defective property may be dangerous to 

public health or safety by virtue of 

latent defects. These defects are 

identified by technical inspection 

methods; or condemned by maintenance 

or other authorized activities as a result 

of destructive and nondestructive test 

methods such as magnetic particle, 

liquid penetrant, or radiographic testing, 

which reveal defects not apparent from 

normal visual inspection methods. 

Defense Logistics Agency Disposition 

Services Automated Information System 

(DAISY). An automated property 

accounting management data system 

designed to process property through 

the necessary disposal steps and 

account for excess, surplus, and foreign 

excess personal property (FEPP) from 

receipt to final disposal. 

Demilitarization. The act of 

eliminating the functional capabilities 

and inherent military design features 

from DoD personal property. Methods 

and degree range from removal and 

destruction of critical features to total 

destruction by cutting, crushing, 

shredding, melting, burning, etc. DEMIL 

is required to prevent property from 

being used for its originally intended 

purpose and to prevent the release of 

inherent design information that could 

be used against the United States. 

DEMIL applies to material in both 

serviceable and unserviceable 

condition. 

Denied areas. Those countries or 

entities that the Department of State 

(DoS), DOC, or Treasury have 

determined to be prohibited or 

sanctioned for the purpose of export, 

sale, transfer, or resale of items 

controlled on the United States 

munitions list (USML) or commerce 

control list property. A consolidated list 

of prohibited entities or destinations for 

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78148 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

which transfers may be limited or 

barred, may be found at: http://

export.gov/ecr/eg_main_023148.asp. 

Disposal. End-of-life tasks or actions 

for residual materials resulting from 

demilitarization or disposition 

operations. 

Disposition. The process of reusing, 

recycling, converting, redistributing, 

transferring, donating, selling, 

demilitarizing, treating, destroying, or 

fulfilling other end of life tasks or 

actions for DoD property. Does not 

include real (real estate) property. 

Defense Logistics Agency (DLA) 

Disposition Services. The organization 

provides DoD with worldwide reuse, 

recycling and disposal solutions that 

focus on efficiency, cost avoidance and 

compliance. 

DLA Disposition Services site. The 

DLA Disposition Services office that has 

accountability for and control over 

disposable property. May be managed in 

part by a commercial contractor. The 

term is applicable whether the disposal 

facility is on a commercial site or a 

Government installation and applies to 

both Government and contractor 

employees performing the disposal 

mission. 

DoD Activity Address Code 

(DoDAAC). A 6-digit code assigned by 

the Defense Automatic Addressing 

Service to provide a standardized 

address code system for identifying 

activities and for use in transmission of 

supply and logistics information that 

supports the movement of property. 

DoD Item Unique Identification (IUID) 

Registry. The DoD data repository that 

receives input from both industry and 

Government sources and provides 

storage of, and access to, data that 

identifies and describes tangible 

Government personal property. 

Donation. The act of providing 

surplus personal property at no charge 

to a qualified donation recipient, as 

allocated by the General Services 

Administration (GSA). 

Donation recipient. Any of the 

following entities that receive federal 

surplus personal property through a 

State agencies for surplus property 

(SASP): 

(1) A Service educational activity 

(SEA). 

(2) A public agency that uses surplus 

personal property to carry out or 

promote one or more public purposes. 

(Public airports are an exception and are 

only considered donation recipients 

when they elect to receive surplus 

property through a SASP, but not when 

they elect to receive surplus property 

through the Federal Aviation 

Administration (FAA).) 

(3) An eligible nonprofit tax-exempt 

educational or public health institution 

(including a provider of assistance to 

homeless or impoverished families or 

individuals). 

(4) A State or local government 

agency, or a nonprofit organization or 

institution, that receives funds 

appropriated for a program for older 

individuals. 

Educational institution. An approved, 

accredited, or licensed public or 

nonprofit institution or facility, entity, 

or organization conducting educational 

programs, including research for any 

such programs, such as a childcare 

center, school, college, university, 

school for the mentally handicapped, 

school for the physically handicapped, 

or an educational radio or television 

station. 

Excess personal property. (1) 

Domestic excess. Government personal 

property that the United States and its 

territories and possessions, applicable to 

areas covered by GSA (i.e., the 50 States, 

District of Columbia, Puerto Rico, 

American Samoa, Guam, Northern 

Mariana Islands, the Federated States of 

Micronesia, the Marshall Islands, Palau, 

and the U.S. Virgin Islands), consider 

excess to the needs and mission 

requirements of the United States. 

(2) DoD Component excess. Items of 

DoD Component owned property that 

are not required for their needs and the 

discharge of their responsibilities as 

determined by the head of the Service 

or Agency. 

(3) Foreign excess personal property 

(FEPP). U.S.-owned excess personal 

property that is located outside the zone 

of interior (ZI). This property becomes 

surplus and is eligible for donation and 

sale as described in § 273.7. 

Exchange. Replace personal property 

by trade or trade-in with the supplier of 

the replacement property. To exchange 

non-excess, non-surplus personal 

property and apply the exchange 

allowance or proceeds of sale in whole 

or in part payment for the acquisition of 

similar property. For example, the 

replacement of a historical artifact with 

another historical artifact by trade; or to 

exchange an item of historical property 

or goods for services based on the fair 

market value of the artifact. 

Federal civilian agency (FCA). Any 

non-defense executive agency (e.g. DoS, 

Department of Homeland Security) or 

any establishment in the legislative or 

judicial branch of the U.S. Government 

(USG) (except the Senate, the House of 

Representatives, and the Architect of the 

Capitol and any activities under his or 

her direction). 

FEPP. See excess personal property. 

Firearm. Any weapon (including a 

starter gun) that will or is designed to 

or may readily be converted to expel a 

projectile by the action of an explosive; 

the frame or receiver of any such 

weapon; any firearm muffler or firearm 

silencer; or any destructive device. The 

term does not include an antique 

firearm. 

Flight safety critical air parts 

(FSCAP). 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 shutdown, 

resulting in an unsafe condition. 

Foreign purchased property. Property 

paid for by foreign countries, but where 

ownership is retained by the United 

States. 

Friendly foreign government. For 

purposes of trade security controls 

(TSC), governments of countries other 

than those designated as denied areas. 

Generating activity (‘‘generator’’). The 

activity that declares personal property 

excess to its needs, e.g. DoD 

installations, activities, contractors, or 

FCAs. 

Government-furnished material 

(GFM). Property provided by the U.S. 

Government for the purpose of being 

incorporated into or attached to a 

deliverable end item or that will be 

consumed or expended in performing a 

contract. Government-furnished 

materiel includes assemblies, 

components, parts, raw and process 

material, and small tools and supplies 

that may be consumed in normal use in 

performing a contract. Governmentfurnished materiel does not include 

material provided to contractors on a 

cash-sale basis nor does it include 

military property, which are 

government-owned components, 

contractor acquired property (as 

specified in the contract), government 

furnished equipment, or major end 

items being repaired by commercial 

contractors for return to the government. 

GSAXcess®. A totally web-enabled 

platform that eligible customers use to 

access functions of GSAXcess® for 

reporting, searching, and selecting 

property. This includes the entry site for 

the Federal Excess Personal Property 

Utilization Program and the Federal 

Surplus Personal Property Donation 

Program operated by the GSA. 

Historical artifact. Items (including 

books, manuscripts, works of art, 

drawings, plans, and models) identified 

by a museum director or curator as 

significant to the history of that 

department, acquired from approved 

sources, and suitable for display in a 

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military museum. Generally, such 

determinations are based on the item’s 

association with an important person, 

event, or place; because of traditional 

association with an important person, 

event, or place; because of traditional 

association with a military organization; 

or because it is a representative example 

of military equipment or represents a 

significant technological contribution to 

military science or equipment. 

Hazardous material (HM). (1) In the 

United States, any material that is 

capable of posing an unreasonable risk 

to health, safety, and property during 

transportation. All HM appears in the 

HM Table at 49 CFR 172.101. 

(2) Overseas, HM is defined in the 

applicable final governing standards or 

overseas environmental baseline 

guidance document, or host nation laws 

and regulations. 

Hazardous property (HP). (1) A 

composite term used to describe DoD 

excess property, surplus property, and 

FEPP, which may be hazardous to 

human health, human safety, or the 

environment. Various Federal, State, 

and local safety and environmental laws 

regulate the use and disposal of 

hazardous property. 

(2) In more technical terms, HP 

includes property having one or more of 

the following characteristics: 

(i) Has a flashpoint below 200 degrees 

Fahrenheit (93 degrees Celsius) closed 

cup, or is subject to spontaneous heating 

or is subject to polymerization with 

release of large amounts of energy when 

handled, stored, and shipped without 

adequate control. 

(ii) Has a threshold limit value equal 

to or below 1,000 parts per million 

(ppm) for gases and vapors, below 500 

milligram per cubic meter (mg/m3) for 

fumes, and equal to or less than 30 

million particles per cubic foot (mppcf) 

or 10 mg/m3 for dusts (less than or equal 

to 2.0 fibers/cc greater than 5 

micrometers in length for fibrous 

materials). 

(iii) Causes 50 percent fatalities to test 

animals when a single oral dose is 

administered in doses of less than 500 

mg per kilogram of test animal weight. 

(iv) Is a flammable solid as defined in 

49 CFR 173.124, or is an oxidizer as 

defined in 49 CFR 173.127, or is a strong 

oxidizing or reducing agent with a half 

cell potential in acid solution of greater 

than +1.0 volt as specified in Latimer’s 

table on the oxidation-reduction 

potential. 

(v) Causes first-degree burns to skin in 

short-time exposure, or is systematically 

toxic by skin contact. 

(vi) May produce dust, gases, fumes, 

vapors, mists, or smoke with one or 

more of the above characteristics in the 

course of normal operations. 

(vii) Produces sensitizing or irritating 

effects. 

(viii) Is radioactive. 

(ix) Has special characteristics which, 

in the opinion of the manufacturer, 

could cause harm to personnel if used 

or stored improperly. 

(x) Is hazardous in accordance with 

Occupational Health and Safety 

Administration, 29 CFR part 1910. 

(xi) Is hazardous in accordance with 

29 CFR part 1910. 

(xii) Is regulated by the EPA in 

accordance with 40 CFR parts 260 

through 280. 

Hazardous waste (HW). An item that 

is regulated pursuant to 42 U.S.C. 6901 

or by State regulation as an HW. HW is 

defined at 40 CFR part 261. From a 

practical standpoint, if an EPA or state 

HW code can be assigned, the item is a 

HW. Overseas, HW is defined in the 

applicable final governing standards or 

overseas environmental baseline 

guidance document, or host nation laws 

and regulations. 

Holding agency. The Federal agency 

that is accountable for, and generally 

has possession of, the property 

involved. 

Hold harmless. A promise to pay any 

costs or claims which may result from 

an agreement. 

Information technology. Any 

equipment or interconnected system or 

subsystem of equipment that is used in 

the automatic acquisition, storage, 

manipulation, management, movement, 

control, display, switching, interchange, 

transmission or reception of data or 

information by the DoD Component. 

Includes computers, ancillary 

equipment, software, firmware, and 

similar procedures, services (including 

support services), and related sources. 

Does not include any equipment that is 

acquired by a Federal contractor 

incidental to a Federal contract. 

Equipment is ‘‘used’’ by a DoD 

Component if the equipment is used by 

the DoD Component directly or is used 

by a contractor under a contract with 

the DoD Component that: 

(1) Requires the use of such 

equipment. 

(2) Requires the use to a significant 

extent of such equipment in the 

performance of a service or the 

furnishing of a product. 

Installation. A military facility 

together with its buildings, building 

equipment, and subsidiary facilities 

such as piers, spurs, access roads, and 

beacons. 

International organizations. For TSC 

purposes, this term includes: Columbo 

Plan Council for Technical Cooperation 

in South and Southeast Asia; European 

Atomic Energy Community; Indus Basin 

Development; International Atomic 

Energy; International Red Cross; NATO; 

Organization of American States; Pan 

American Health Organization; United 

Nations; UN Children’s Fund; UN 

Development Program; UN Educational, 

Scientific, and Cultural Organization; 

UN High Commissioner for Refugees 

Programs; UN Relief and Works Agency 

for Palestine Refugees in the Near East; 

World Health Organization; and other 

international organizations approved by 

a U.S. diplomatic mission. 

Interrogation. A communication 

between two or more ICPs, other DoD 

activities, and U.S. Government 

agencies to determine the current 

availability of an item or suitable 

substitute for a needed item before 

procurement or repair. 

Interservice. Action by one Military 

Department or Defense Agency ICP to 

provide materiel and directly related 

services to another Military Department 

or Defense Agency ICP (either on a 

recurring or nonrecurring basis). 

Inventory adjustments. Changes made 

in inventory quantities and values 

resulting from inventory recounts and 

validations. 

Inventory control point (ICP). An 

organizational unit or activity within 

the DoD supply system that is assigned 

the primary responsibility for the 

materiel management of a group of 

items either for a particular Military 

Department or for the DoD as a whole. 

In addition to materiel manager 

functions, an ICP may perform other 

logistics functions in support of a 

particular Military Department or for a 

particular end item (e.g., centralized 

computation of retail requirements 

levels and engineering tasks associated 

with weapon system components). 

Item unique identification (IUID). A 

system of establishing globally 

widespread unique identifiers on items 

of supply within the DoD, which serves 

to distinguish a discrete entity or 

relationship from other like and unlike 

entities or relationships. AIT is used to 

capture and communicate IUID 

information. 

Line item. A single line entry on a 

reporting form or sale document that 

indicates a quantity of property located 

at any one activity having the same 

description, condition code, and unit 

cost. 

Line item value (for reporting and 

other accounting and approval 

purposes). Quantity of a line item 

multiplied by the standard price. 

Marketing. The function of directing 

the flow of surplus and FEPP to the 

buyer, encompassing all related aspects 

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of merchandising, market research, sale 

promotion, advertising, publicity, and 

selling. 

Material potentially presenting an 

explosive hazard (MPPEH). Material 

owned or controlled by the Department 

of Defense that, prior to determination 

of its explosives safety status, 

potentially contains explosives or 

munitions (e.g., munitions containers 

and packaging material; munitions 

debris remaining after munitions use, 

demilitarization, or disposal; and rangerelated debris) or potentially contains a 

high enough concentration of explosives 

that the material presents an explosive 

hazard (e.g., equipment, drainage 

systems, holding tanks, piping, or 

ventilation ducts that were associated 

with munitions production, 

demilitarization, or disposal 

operations). Excluded from MPPEH are 

munitions within the DoD-established 

munitions management system and 

other items that may present explosion 

hazards (e.g., gasoline cans and 

compressed gas cylinders) that are not 

munitions and are not intended for use 

as munitions. 

Metalworking machinery. A category 

of plant equipment consisting of power 

driven nonportable machines in Federal 

Supply Classification Code (four digits) 

(FSC) 3411 through 3419 and 3441 

through 3449, which are used or capable 

of use in the manufacture of supplies or 

equipment, or in the performance of 

services, or for any administrative or 

general plant purpose. 

Munitions list items (MLI). Any item 

contained on the U.S. Munitions List 

(USML) in 22 CFR part 121. Defense 

articles, associated technical data 

(including software), and defense 

services recorded or stored in any 

physical form, controlled by 22 CFR 

parts 120 through 130. 22 CFR part 121, 

which contains the USML, is 

administered by the DoS Directorate of 

Defense Trade Controls. 

Museum, DoD or Service. An 

appropriated fund entity that is a 

permanent activity with a historical 

collection, open to both the military and 

civilian public at regularly scheduled 

hours, and is in the care of a 

professional qualified staff that performs 

curatorial and related historical duties 

full time. 

Mutilation. A process that renders 

materiel unfit for its originally intended 

purposes by cutting, tearing, scratching, 

crushing, breaking, punching, shearing, 

burning, neutralizing, etc. 

Non-appropriated fund (NAF). Funds 

generated by DoD military and civilian 

personnel and their dependents and 

used to augment funds appropriated by 

Congress to provide a comprehensive, 

morale building, welfare, religious, 

educational, and recreational program, 

designed to improve the well-being of 

military and civilian personnel and 

their dependents. 

NAF property. Property purchased 

with NAFs, by religious activities or 

non-appropriated morale welfare or 

recreational activities, post exchanges, 

ships stores, officer and 

noncommissioned officer clubs, and 

similar activities. Such property is not 

Federal property. 

Narcotics. See controlled substances. 

National stock number (NSN). The 13- 

digit stock number replacing the 11- 

digit federal stock number. It consists of 

the 4-digit federal supply classification 

code and the 9-digit national item 

identification number. The national 

item identification number consists of a 

2-digit National Codification Bureau 

number designating the central 

cataloging office (whether North 

Atlantic Treaty Organization or other 

friendly country) that assigned the 

number and a 7-digit (xxx–xxxx) 

nonsignificant number. Arrange the 

number as follows: 9999–00–999–9999. 

Nonprofit institution. An institution 

or organization, no part of the net 

earnings of which inures or may 

lawfully inure to the benefit of any 

private shareholder or individual, and 

which has been held to be tax exempt 

under the provisions of 26 U.S.C. 501, 

also known as the Internal Revenue 

Code of 1986. 

Nonsalable materiel. Materiel that has 

no reutilization, transfer, donation, or 

sale value as determined by the DLA 

Disposition Services site, but is not 

otherwise restricted from disposal by 

U.S. law or Federal or military 

regulations. 

Obsolete combat materiel. Military 

equipment once used in a primarily 

combat role that has been phased out of 

operational use; if replaced, the 

replacement items are of a more current 

design or capability. 

Ordnance. Explosives, chemicals, 

pyrotechnics, and similar stores, e.g., 

bombs, guns and ammunition, flares, 

smoke, or napalm. 

ppm. Unit of concentration by volume 

of a specific substance. 

Personal property. Property except 

real property. Excludes records of the 

Federal Government, battleships, 

cruisers, aircraft carriers, destroyers, 

and submarines. 

Pilferable materiel. Materiel having a 

ready resale value or application to 

personal possession, which is especially 

subject to theft. 

Plant equipment. Personal property of 

a capital nature (including equipment, 

machine tools, test equipment, 

furniture, vehicles, and accessory and 

auxiliary items) for use in 

manufacturing supplies, in performing 

services, or for any administrative or 

general plant purpose. It does not 

include special tooling or special test 

equipment. 

Precious metals. Gold, silver, and the 

platinum group metals (platinum, 

palladium, iridium, rhodium, osmium, 

and ruthenium). 

Precious Metals Recovery Program 

(PMRP). A DoD program for 

identification, accumulation, recovery, 

and refinement of precious metals from 

excess and surplus end items, scrap, 

hypo solution, and other precious metal 

bearing materiel for authorized internal 

purposes or as GFM. 

Pre-receipt. Documentation processed 

prior to physically transferring or 

turning the property into a DLA 

Disposition Services site. 

Privacy Act property. Any document 

or other information about an individual 

maintained by the agency, whether 

collected or grouped, including but not 

limited to, information regarding 

education, financial transactions, 

medical history, criminal or 

employment history, or other personal 

information containing the name or 

other personal identification number, 

symbol, etc., assigned to such 

individual. 

Privately owned personal property. 

Personal effects of DoD personnel 

(military or civilian) that are not, nor 

will ever become, Government property 

unless the owner (or heirs, next of kin, 

or legal representative of the owner) 

executes a written and signed release 

document unconditionally giving the 

U.S. Government all right, title, and 

interest in the privately owned property. 

Public agency. Any State, political 

subdivision thereof, including any unit 

of local government or economic 

development district; or any 

department, agency, instrumentality 

thereof, including instrumentalities 

created by compact or other agreement 

between States or political subdivisions, 

multi-jurisdictional substate districts 

established by or under State law; or 

any Indian tribe, band, group, pueblo, or 

community located on a State 

reservation. (See § 273.8 regarding 

donations made through State agencies.) 

Qualified recycling programs (QRP). 

Organized operations that require 

concerted efforts to divert or recover 

scrap or waste, as well as efforts to 

identify, segregate, and maintain the 

integrity of recyclable materiel to 

maintain or enhance its marketability. If 

administered by a DoD Component 

other than DLA, a QRP includes 

adherence to a control process 

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providing accountability for all 

materials processed through program 

operations. 

Reclamation. A cost avoidance or 

savings measure to recover useful 

(serviceable) end items, repair parts, 

components, or assemblies from one or 

more principal end items of equipment 

or assemblies (usually supply condition 

codes (SCCs) listed in DLM 4000.25–2 

as SCC H for unserviceable 

(condemned) materiel, SCC P for 

unserviceable (reclamation) materiel, 

and SCC R for suspended (reclaimed 

items, awaiting condition 

determination) materiel) for the purpose 

of restoration to use through 

replacement or repair of one or more 

unserviceable, but repairable principal 

end items of equipment or assemblies 

(usually SCCs listed in DLM 4000.25–2 

as SCC E for unserviceable (limited 

restoration) materiel, SCC F for 

unserviceable (reparable) materiel, and 

SCC G for unserviceable (incomplete) 

materiel). Reclamation is preferable 

prior to disposition (e.g., DLA 

Disposition Services site turn-in), but 

end items or assemblies may be 

withdrawn from DLA Disposition 

Services sites for such reclamation 

purposes. 

Reutilization. The act of re-issuing 

FEPP and excess property to DoD 

Components. Also includes qualified 

special programs (e.g., Law Enforcement 

Agency (LEA), Humanitarian Assistance 

Program, Military Affiliate Radio 

System (MARS)) pursuant to applicable 

enabling statutes. 

Salvage. Personal property that has 

some value in excess of its basic 

material content, but is in such 

condition that it has no reasonable 

prospect of use as a unit for the purpose 

for which it was originally intended, 

and its repair or rehabilitation for use as 

a unit is impracticable. 

State agencies for surplus property 

(SASP). The agency designated under 

State law to receive Federal surplus 

personal property for distribution to 

eligible donation recipients within the 

States as provided for in 40 U.S.C. 549. 

Supply condition codes (SCC). Code 

used to classify materiel in terms of 

readiness for issue and use or to identify 

action underway to change the status of 

materiel. These codes are assigned by 

the Military Departments or Defense 

Agencies. DLA Disposition Services 

may change a SCC if there is an 

appearance of an improperly assigned 

code and the property is of a nontechnical nature. If change is not 

appropriate or property is of a technical 

nature, DLA Disposition Services sites 

may challenge a suspicious SCC. 

Scrap. Recyclable waste and 

discarded materials derived from items 

that have been rendered useless beyond 

repair, rehabilitation, or restoration such 

that the item’s original identity, utility, 

form, fit and function have been 

destroyed. Items can be classified as 

scrap if processed by cutting, tearing, 

crushing, mangling, shredding, or 

melting. Intact or recognizable USML or 

CCL items, components, and parts are 

not scrap. 41 CFR 102–36.40 provides 

additional information on scrap. 

Screening. The process of physically 

inspecting property or reviewing lists or 

reports of property to determine 

whether it is usable or needed. 

Service educational activity (SEA). 

Any educational activity that meets 

specified criteria and is formally 

designated by the Department of 

Defense as being of special interest to 

the Military Services. Includes 

educational activities such as maritime 

academies or military, naval, or Air 

Force preparatory schools, junior 

colleges, and institutes; senior high 

school-hosted Junior Reserve Officer 

Training Corps; and nationally 

organized youth groups. The primary 

purpose of such entities is to offer 

courses of instruction devoted to the 

military arts and sciences. 

Sensitive items. Materiel that requires 

a high degree of protection and control 

due to statutory requirements or 

regulations, such as narcotics and drug 

abuse items; precious metals; items of 

high value; items that are highly 

technical, or of a hazardous nature; nonnuclear missiles, rockets, and 

explosives; small arms, ammunition and 

explosives, and demolition material. 

Small arms/light weapons. Manportable weapons made or modified to 

military specifications for use as lethal 

instruments of war that expel a shot, 

bullet, or projectile by action of an 

explosive. Small arms are broadly 

categorized as those weapons intended 

for use by individual members of armed 

or security forces. They include 

handguns; rifles and carbines; submachine guns; and light machine guns. 

Light weapons are broadly categorized 

as those weapons designed for use by 

two or three members of armed or 

security forces serving as a crew, 

although some may be used by a single 

person. They include heavy machine 

guns; hand-held under-barrel and 

mounted grenade launchers; portable 

anti-aircraft guns; portable anti-tank 

guns; recoilless rifles; man-portable 

launchers of missile and rocket systems; 

and mortars. 

Standard price. The price customers 

are charged for a DoD managed item 

(excluding subsistence), which remains 

constant throughout a fiscal year. The 

standard price is based on various 

factors which include the latest 

acquisition price of the item plus 

surcharges or cost recovery elements for 

transportation, inventory loss, 

obsolescence, maintenance, 

depreciation, and supply operations. 

State or local government. A State, 

territory, or possession of the United 

States, the District of Columbia, 

American Samoa, Guam, Puerto Rico, 

Commonwealth of Northern Mariana 

Islands, the U.S. Virgin Islands, and any 

political subdivision or instrumentality 

thereof. 

Surplus personal property. Excess 

personal property no longer required by 

the Federal agencies, as determined by 

the Administrator of General Services. 

Applies to surplus personal property in 

the United States, American Samoa, 

Guam, Puerto Rico, the Commonwealth 

of the Northern Mariana Islands, and the 

U.S. Virgin Islands. 

Transfer. The act of providing FEPP 

and excess personal property to Federal 

civilian agencies (FCAs) as stipulated in 

the FMR. Property is allocated by the 

GSA. When a line item is less than 

$10,000, an FCA may coordinate 

allocation to another FCA directly. 

Trash. Post-consumer refuse, waste 

and food by-products such as litter, 

rubbish, cooked grease, bones, fats, and 

meat trimmings. 

Trade security controls (TSC). Policy 

and procedures, in accordance with 

DoD Instruction 2030.08, designed to 

prevent the sale or shipment of USG 

materiel to any person, organization, or 

country whose interests are unfriendly 

or hostile to those of the United States 

and to ensure that the disposal of DoD 

personal property is performed in 

compliance with U.S. export control 

laws and regulations. 

Unique item identifier (UII). A set of 

data elements marked on an item that is 

globally unique and unambiguous. The 

term includes a concatenated UII or a 

DoD-recognized unique identification 

equivalent. 

Uniform Materiel Movement and Issue 

Priority System (UMMIPS). System to 

ensure that requirements are processed 

in accordance with the mission of the 

requiring activity and the urgency of 

need, and to establish maximum 

uniform order and materiel movement 

standard. 

Unsalable materiel. Materiel for 

which sale or other disposal is 

prohibited by U.S. law or Federal or 

military regulations. 

Usable property. Commercial and 

military type property other than scrap 

and waste. 

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Veterans’ organization. An 

organization composed of honorably 

discharged soldiers, sailors, airmen, and 

marines, which is established as a 

veterans’ organization and recognized as 

such by the U.S. Department of Veterans 

Affairs. 

Zone of interior (ZI). The United 

States and its territories and 

possessions, applicable to areas covered 

by GSA and where excess property is 

considered domestic excess. Includes 

the 50 States, District of Columbia, 

Puerto Rico, American Samoa, Guam, 

Northern Mariana Islands, the Federated 

States of Micronesia, the Marshall 

Islands, Palau, and the U.S. Virgin 

Islands. 

§ 273.4 Policy. 

It is DoD policy consistent with 41 

CFR chapters 101 and 102 that excess 

DoD property must be screened and 

redistributed among the DoD 

Components, and reported as excess to 

the GSA. Pursuant to 40 U.S.C. 701, 

DoD will efficiently and economically 

dispose DoD FEPP. 

§ 273.5 Responsibilities. 

(a) The Assistant Secretary of Defense 

for Logistics and Materiel Readiness 

(ASD(L&MR)), under the authority, 

direction, and control of the 

USD(AT&L), and in accordance with 

DoD Directive 5134.12: 

(1) Develops DoD materiel disposition 

policies, including policies for FEPP. 

(2) Oversees the effective 

implementation of the DoD materiel 

disposition program. 

(3) Approves policy changes as 

appropriate to support contingency 

operations. 

(4) Approves national organizations 

for special interest consideration as 

SEAs, and approve categories of 

property considered appropriate, usable, 

and necessary for transfer to SEAs. 

(b) The Director, Defense Logistics 

Agency (DLA), under the authority, 

direction, and control of the Under 

Secretary of Defense for Acquisition, 

Technology, and Logistics, through the 

Assistant Secretary of Defense for 

Logistics and Materiel Readiness 

(ASD(L&MR)), and in addition to the 

responsibilities in paragraph (c) of this 

section: 

(1) Provides agency-level command 

and control and administers the 

worldwide Defense Materiel Disposition 

Program. 

(2) Implements guidance issued by 

the ASD(L&MR) or other organizational 

elements of the OSD and establishes 

system concepts and requirements, 

resource management, program 

guidance, budgeting and funding, 

training and career development, 

management review and analysis, 

internal control measures, and crime 

prevention for the Defense Materiel 

Disposition Program. 

(3) Chairs the Disposal Policy 

Working Group (DPWG). 

(4) Provides direction to the DLA 

Disposition Services on implementing 

the worldwide defense materiel 

disposition program. 

(5) Provides direction to the DLA 

inventory control points (ICPs) on the 

cataloging of items in the Federal 

Logistics Information System (FLIS) as 

outlined in DoD 4100.39–M, ‘‘Federal 

Logistics Information System (FLIS) 

Procedures Manual-Glossary and 

Volumes 1–16’’ (available at http://

www.dtic.mil/whs/directives/corres/

html/410039m.html). This is done to 

prevent the unauthorized disposition or 

release of items within DoD, other 

federal civilian agencies, or release into 

commerce. 

(6) Promotes maximum reuse of FEPP, 

excess, and surplus property. Pursues 

all possible avenues to sponsor or 

endorse reuse of excess DoD property 

and preclude unnecessary purchases. 

(7) Directs the DLA Disposition 

Services communications with the DoD 

Components regarding changes in 

service delivery processes or plans that 

will affect disposal support provided. In 

overseas locations, these 

communications will include 

geographic Combatant Commanders, 

U.S. Chiefs of Mission, and the incountry security assistance offices. 

(8) Accommodates contingency 

operation requirements. Directs the DLA 

support team to determine any needed 

deviations from standard disposal 

processing guidance and communicates 

approved temporary changes to the 

Military Departments and DLA 

Disposition Services. 

(9) Ensures maximum compatibility 

between documentation, procedures, 

codes, and formats used in materiel 

disposition systems and the Military 

Departments’ supply systems. 

(10) Programs, budgets, funds, 

accounts, allocates and controls 

personnel, spaces, and other resources 

for its respective activities. 

(11) Annually provides to GSA a 

report of property transferred to nonfederal recipients in accordance with 41 

CFR 102–36.295. 

(12) Assumes the worldwide disposal 

of all DoD HP except for those categories 

specifically designated to remain the 

responsibility of the Military 

Department or Defense Agency as 

described in DoD Manual 4160.21, 

Volume 4. 

(13) Ensures property disposal 

training courses are available (e.g., at 

DLA Training Center) for all personnel 

associated with the disposal program. 

(14) Ensures DLA Disposition 

Services follows the DoD disposal 

hierarchy with landfill disposal as a last 

resort. 

(c) The DoD Components Heads: 

(1) Recommend Defense Materiel 

Disposition Program policy changes to 

the ASD(L&MR). 

(2) Recommend Defense Materiel 

Disposition Program procedural changes 

to the Director, DLA, and provide 

information copies to the ASD(L&MR). 

(3) Assist the Director, DLA, upon 

request, to resolve matters of mutual 

concern. 

(4) Treat the disposal of DoD property 

as an integral part of DoD Supply Chain 

Management; ensure that disposal 

actions and costs are a part of each stage 

of the supply chain management of 

items and that disposal of property is a 

planned event at all levels of their 

organizations. 

(5) Provide the Director, DLA, with 

mutually agreed-upon data necessary to 

administer the Defense Materiel 

Disposition Program. 

(6) Participate in the DoD PMRP and 

promote maximum reutilization of 

FEPP, excess, and surplus property and 

fine precious metals for internal use or 

as GFM. 

(7) Nominate to the ASD(L&MR) 

national organizations for special 

interest consideration as SEAs; approve 

schools (non-national organizations) as 

SEAs; and recommend to the 

ASD(L&MR) categories of property 

considered appropriate, usable, and 

necessary for transfer to SEAs. 

(8) Provide administrative and 

logistics support, including appropriate 

facilities, for the operations of tenant 

and related off-site DLA Disposition 

Services field activities under interService support agreements (ISSAs). 

(9) For property not explicitly 

identified in this part, follow Serviceunique regulations to dispose of and 

maintain accountability of property. 

Ensure all accountable records 

associated with the disposal of FEPP, 

excess, and surplus property are 

established and updated to reflect 

supply status and ensure audit ability in 

accordance with DoD Instruction 

5000.64, ‘‘Accountability and 

Management of DoD Equipment and 

Other Accountable Property’’ (available 

at http://www.dtic.mil/whs/directives/

corres/pdf/500064p.pdf). This 

requirement also applies to modified 

processes that may be developed for 

contingency operations. 

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(10) Ensure completion of property 

disposition (reutilization and marketing) 

training courses, as appropriate. 

(11) Administer reclamation programs 

and accomplish reclamation from excess 

materiel. 

(12) Establish and administer disposal 

accounts, as jointly agreed to by DLA 

and the Military Departments, to 

support the demilitarization (DEMIL) 

and reclamation functions performed by 

the Military Departments. 

(13) Dispose of surplus merchant 

vessels or vessels of 1,500 gross tons or 

more, capable of conversion to merchant 

use, through the Federal Maritime 

Administration, U.S. Department of 

Transportation, by forwarding a ‘‘Report 

of Excess Personal Property’’ Standard 

Form 120 to GSA, in accordance with 

the procedures in 41 CFR chapters 101 

and 102. For vessels explicitly excluded 

by 41 CFR chapters 101 and 102, follow 

procedures in DoD 4160.28–M, Volumes 

1–3, ‘‘Defense Demilitarization: Program 

Administration, Demilitarization 

Coding, Procedural Guidance’’ 

(available at http://www.dtic.mil/whs/

directives/corres/pdf/416028m_

vol1.pdf, http://www.dtic.mil/whs/

directives/corres/pdf/416028m_

vol2.pdf, http://www.dtic.mil/whs/

directives/corres/pdf/416028m_

vol3.pdf), i.e., battleships, cruisers, 

aircraft carriers, destroyers, or 

submarines. 

(14) Dispose of HP specifically 

designated as requiring DoD Component 

processing. 

(15) Request DLA Disposition 

Services provide sales services, as 

needed, for recyclable marketable 

materials generated as a result of 

resource recovery programs through the 

DoD Component QRP in accordance 

with the procedures in § 273.7. 

(16) Consider public donation if 

applicable before landfill disposal and 

monitor, with DLA Disposition Services 

Site personnel, all property sent to 

landfills to ensure no economically 

salable or recyclable property is 

discarded. 

(17) Report, accurately identify on 

approved turn in documents, and turn 

in all authorized scrap generations to 

servicing DLA Disposition Services 

sites. 

(18) Update the DoD IUID Registry 

upon the materiel disposition of 

uniquely identified items in accordance 

with the procedures in § 273.9. 

(19) Improve disposal policies, 

training, and procedural 

implementation among the DoD 

Components and Federal civilian 

agencies through membership on the 

DPWG. 

§ 273.6 Procedures. 

(a) Personal Property Disposition. The 

general guidelines and procedures for 

property disposition are: 

(1) 41 CFR chapters 101 and 102 

implements 40 U.S.C. subtitle I and 

section 101 which established the 

Personal Property Disposition Program. 

41 CFR chapter 101 and other laws and 

regulations apply to the disposition of 

FEPP, excess, and surplus property. In 

the event of conflicting guidance, 41 

CFR chapters 101 and 102 takes 

precedence. 41 CFR chapter 102 is the 

successor regulation to 41 CFR chapter 

101, the ‘‘Federal Property Management 

Regulation’’. It updates regulatory 

policies of 41 CFR chapter 101. 

(2) All references to ‘‘days’’ are 

calendar days unless otherwise 

specified. 

(3) The Department of Defense 

provides guidance for budgeting for the 

disposal of excess, surplus, and FEPP 

property through DoD 7000.14–R, 

‘‘Department of Defense Financial 

Management Regulations (FMRs): 

Volume 12, ‘Special Accounts Funds 

and Programs’; Chapter 7, ‘Financial 

Liability for Government Property Lost, 

Damaged, Destroyed, or Stolen’ ’’ 

(http://comptroller.defense.gov/fmr/

current/12/12_07.pdf), with updates via 

program budget decisions. The Service 

level billing is based on the services 

turn-in percentage of the Disposition 

Services workload. As an example, if 

the Army constitutes 40 percent of the 

workload the Army will pay 40 percent 

of the Disposition Services Service-level 

bill. 

(i) Billings are addressed to each 

Military Department, Defense Agency, 

and FCA. 

(ii) Billing for disposition of excess 

property depends on decisions made 

between DLA and the customer: the 

Military Department, Defense Agency, 

those sponsoring DoD-related 

organizations (e.g., Civil Air Patrol, 

MARS) or FCA. 

(b) Scope and Relevancy. (1) In 

conjunction with DoD 4160.28–M 

Volumes 1–3, the provisions of this part 

apply to service providers, whether they 

are working at a government facility or 

at a commercial site, and to contractors 

to the extent it is stipulated in the 

performance work statement of the 

contracts. DoD 4160.28–M and 10 U.S.C. 

2576 contain additional specific 

guidance for property identified as MLI 

or CCLI. 

(2) The procedures in this subpart 

will be used to the extent possible in all 

contingency operations. As appropriate, 

the ASD(L&MR) will modify policy 

guidance to support the mission 

requirements and operational tempo of 

contingency operations. 

(3) This subpart does not govern the 

disposal of the property described in 

paragraphs (b)(3)(i), (ii), and (iii) of this 

section. However, once property in 

these categories has been altered to 

remove the inherently sensitive 

characteristics, it may be processed 

through a DLA Disposition Services site 

using an appropriate FSC code for the 

remaining components. 

(i) Items Under Management Control 

of the Defense Threat Reduction Agency 

in Federal Supply Group (FSG) 11. 

These items include Department of 

Energy special design and quality 

controlled items and all DoD items 

designed specifically for use on or with 

nuclear weapons. These items are 

identified by manufacturers’ codes 

57991, 67991, 77991, and 87991 in the 

DLA Logistics Information Service FLIS. 

These items will be processed in 

accordance with Air Force Instruction 

21–204, ‘‘Nuclear Weapons 

Maintenance Procedures’’ (available at 

http://static.e-publishing.af.mil/

production/1/af_a4_7/publication/

afi21-204/afi21-204.pdf). 

(ii) Cryptologic and Cryptographic 

Materiel. This materiel must be 

processed in accordance with 

Committee on National Security 

Systems Instruction 4008, ‘‘Program for 

the Management and Use of National 

Reserve Information Assurance Security 

Equipment’’ (available at https:// 

www.cnss.gov/Assets/pdf/CNSSI4008.pdf). 

(iii) Naval Nuclear Propulsion Plant 

Materiel. This materiel must be 

processed in accordance with Office of 

the Chief of Naval Operations 

Instruction (OPNAVINST) N9210.3, 

‘‘Safeguarding of Naval Nuclear 

Propulsion Information (NNPI)’’ 

(available at http:/doni.daps.dla.mil/

Directives/

09000%20General%20Ship%

20Design%20and%20Support/09- 

200%20

Propulsion%20Plants%20Support/

N9210.3%20(Unclas%20Portion).pdf) 

and 45 Manual NAVSEA S9213–45– 

Man–000, ‘‘Naval Nuclear Material 

Management Manual.’’ 

(c) Objectives. The objectives of the 

Defense Materiel Disposition Program 

are to: 

(1) Provide standardized disposition 

management guidance for DoD excess 

property and FEPP (including scrap) 

and HP, by using efficient internal and 

external processes. The expected 

outcome includes protecting national 

security interests, minimizing 

environmental mishaps, satisfying valid 

needs by extended use of property, 

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permitting authorized donations, 

obtaining optimum monetary return to 

the U.S. Government, and minimizing 

abandonment or destruction (A/D) of 

property. 

(2) Migrate from legacy transactions 

with 80 record position formats 

applicable to military standard system 

procedures (e.g., Defense Logistics 

Manual (DLM) 4000.25–1, ‘‘Military 

Standard Requisitioning and Issue 

Procedures (MILSTRIP)’’ (available at 

http://www2.dla.mil/j-6/dlmso/elibrary/

Manuals/DLM/MILSTRIP/

MILSTRIP.pdf) and DLM 4000.25–2, 

‘‘Military Standard Transaction 

Reporting and Accounting Procedures 

(MILSTRAP)’’ (available at http://

www2.dla.mil/j-6/dlmso/elibrary/

Manuals/DLM/MILSTRAP/

MILSTRAP.pdf) to variable length 

DLMS transactions as described in DLM 

4000.25, ‘‘Defense Logistics 

Management System (DLMS)’’ (available 

at http://www2.dla.mil/j-6/dlmso/

elibrary/Manuals/DLM/DLM_4000.25_

DLMS_Manual_Combined.pdf) 

(American National Standards Institute 

Accredited Standards Committee (ANSI 

ASC) X12 or equivalent XML schema) to 

track items throughout the supply chain 

life cycle. Implementation must be 

consistent with DoD Directive 8320.02, 

‘‘Data Sharing in a Net Centric 

Department of Defense’’ (available at 

http://www.dtic.mil/whs/directives/

corres/pdf/832002p.pdf). 

(3) Ensure cost-effective disposal of 

precious metals bearing scrap and end 

items for the replenishment of valuable 

resources through the DoD PMRP. 

(4) Ensure personal property and 

related subcomponents are not declared 

excess and disposed of prior to 

determining the need for economic 

recovery. 

(5) Encourage Military Departments 

and Defense Agencies to: 

(i) Comply with the spirit and intent 

of Executive Order 12862, ‘‘Setting 

Customer Service Standards.’’ 

(ii) Set results-oriented goals, such as 

delivering customer value that results in 

improvement of overall Military 

Department performance. 

(iii) Serve the tax payer’s interests by 

ensuring tax money is used wisely and 

by being responsive and reliable in all 

dealings with the public. 

(d) Foreign Liaison. (1) Authority for 

granting visits by foreign nationals 

representing foreign governments rests 

with the International Programs 

Division (J–347) at DLA. Prospective 

official foreign visitors should submit 

requests 30 days in advance through 

their embassy in accordance with 

procedures in DoD Directive 5230.20, 

‘‘Visits and Assignments of Foreign 

Nationals’’ (available at http://

www.dtic.mil/whs/directives/corres/pdf/

523020p.pdf). These requests may 

require a security clearance from the 

host Military Department. DLA 

processes the requests, and will provide 

written authority to primary-level field 

activity commanders or DLA 

Disposition Services site chiefs. 

Unclassified visits by foreign nationals 

can be approved for inspections prior to 

acquiring property through security 

assistance programs or other programs 

authorized by statute. 

(2) A commander of a DoD activity 

may authorize foreign nationals and 

representatives of foreign governments 

or international organizations to visit a 

DLA Disposition Services site, except 

for those foreign nationals and 

representatives from foreign countries 

designated as denied areas in the 

International Traffic in Arms 

Regulations (ITAR) in 22 CFR parts 120 

through 130 and the EAR in 15 CFR 

parts 730 through 774. 

(3) Visits by foreign nationals for 

public sales will be at the discretion of 

the host installation commander in 

accordance with U.S. export control 

laws and regulations, the ITAR in 22 

CFR parts 120 through 130 and the EAR 

in 15 CFR parts 730 through 774. 

(4) All requests for unclassified 

information, not previously approved 

for public release will be referred to the 

appropriate public affairs office. This 

includes requests submitted by 

representatives of foreign governments 

or representatives of international 

organizations. 

(5) Requests from foreign nationals or 

representatives from foreign 

governments of denied areas will be 

referred to the appropriate security 

office. 

(6) Release of MLI technical data or 

CCLI technology will be in accordance 

with DoD 4100.39–M, DoD 4160.28–M 

Volumes 1–3, 10 U.S.C. 2576, 22 CFR 

parts 120 to 130, and 15 CFR parts 730 

to 774, DoD Instruction 2040.02, and 

DoD Instruction 2030.08. 

(e) Training. Personnel with Materiel 

Disposition Program responsibilities 

(DLA Disposition Services employees, 

ICP integrated materiel managers 

(IMMs), Reservists, etc.) as well as those 

DoD-related and non-DoD organizations 

disposing of excess, surplus, FEPP, and 

scrap through the Department of 

Defense, require applicable training in 

defense materiel disposition policies, 

procedures, and related technical areas 

such as safety, environmental 

protection, DEMIL, TSC, accounting and 

accountability, administration, or 

management of those activities. 

Required training will be accomplished 

according to DoD 4160.28–M Volumes 

1–3 and DoD Instruction 2030.08, and 

applicable DoD, DLA, and Military 

Department training issuances. In 

addition to formal training, the DLA 

Disposition Services Web site (https://

www.dispositionservices.dla.mil) 

provides guidance on various topics 

related to materiel disposition. 

(f) DoD Components. The DoD 

Components: 

(1) Provide administrative and 

logistics support, including appropriate 

facilities for the segregation of material 

according to the established ISSAs. 

(i) Establish disposal facilities at 

suitable locations, separate from host 

installation active stocks. These areas 

should permit proper materiel 

segregation and be convenient to road 

networks and railroad sidings. 

(ii) Approve all facility improvement 

projects. Identify in the ISSA 

reimbursable and non-reimbursable host 

maintenance and repair support, not 

exceeding that prescribed by regulations 

of the host activity. 

(iii) Fence or otherwise protect the 

disposal yard to ensure that materiel is 

safeguarded against theft or pilferage. 

Security matters identified in ISSAs are 

covered by security regulations of the 

DoD Components. 

(iv) Provide information security 

support to DLA Disposition Services 

field activities through ISSAs, including 

the retrieval, secure storage, and 

subsequent determination of the 

appropriate disposition of classified 

property found in disposal assets. 

(2) Properly containerize and ensure 

all property turned in to DLA 

Disposition Services sites is safe to 

handle and non-leaking to ensure 

environmental compliance during 

transport to the DLA Disposition 

Services site and storage during the 

disposal process. Drain all fluids from 

unserviceable vehicles prior to release 

to disposal and treat fluids according to 

environmental requirements in 

accordance with the procedures in 

Enclosure 3 of DoD Manual 4160.21, 

Volume 4, ‘‘Defense Materiel 

Disposition Manual: Instructions for 

Hazardous Property and Other Special 

Processing Materiel’’. 

(3) Ensure HW storage facilities meet 

all applicable environmental standards 

and requirements, including 40 CFR 

parts 262, 264, and 265. 

(4) Provide funds for disposal of HP 

failing reutilization, transfer, donation 

or sale (RTDS), or if the HP is not 

eligible for RTDS, that it is disposed of 

on a DLA disposal service contract 

following the procedures in Office of the 

Chief of Naval Operations Instruction 

N9210.3 with exceptions for funding of 

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items such as conventional ammunition. 

Funding for disposal by the Military 

Department or Defense Agency also 

applies in instances when non-regulated 

waste requires special handling for 

disposal via disposal service contract, or 

when special services are requested on 

the disposal service contract. 

(5) Comply with the Defense DEMIL 

Program in accordance with DoD 

Instruction 4160.28 and DoD 4160.28–M 

Volumes 1–3. 

(i) Provide proper instructions for 

DEMIL ‘‘F’’ property to the DLA 

Disposition Services site at the time of 

physical turn-in or immediately 

following electronic turn-in in 

accordance with procedures in 

Enclosure 5 of DoD Manual 4160.21, 

Volume 2 and Enclosure 3 of DoD 

Manual 4160.21, Volume 4 and the 

procedures on the Army’s Integrated 

Logistics Support Center Web site 

https://tulsa.tacom.army.mil/DEMIL. 

(ii) Ship small arms serialized 

weapons and serialized parts to the 

Anniston, Alabama, DEMIL Center, as 

identified on the DLA Disposition 

Services Web site (https://

www.dispositionservices.dla.mil). 

Contact the Anniston center for 

shipment instructions. All activities 

generating serialized weapons and 

serialized weapons parts must report a 

‘‘ship’’ transaction, using the 

appropriate DLA Disposition Services 

DEMIL Center DoDAAC, to the DoD 

Small Arms/Light Weapons 

Serialization Program registry. 

(6) Implement DoD QRP, as directed 

by DoD Instruction 4715.4, ‘‘Pollution 

Prevention’’ (available at http://

www.dtic.mil/whs/directives/corres/pdf/

471504p.pdf). Establish QRPs to divert 

or recover scrap or waste from the waste 

streams, as well as to identify, collect, 

properly segregate and maintain the 

integrity of recyclable materials in a way 

that will maintain or enhance their 

marketability. Indicate on the turn-in 

documents that QRP material is 

identified as such with funds to be 

deposited to the appropriate budget 

clearing account. 

(7) Implement TSC measures in 

accordance with DoD Instruction 

2030.08 for USML and CCL items and 

comply with applicable export control 

regulations and laws. 

(g) DLA Disposition Services. The 

DLA Disposition Services will: 

(1) Provide Military Departments and 

Defense Agencies with disposition 

solutions and best value support for the 

efficient and timely RTDS or disposal of 

excess, surplus, and FEPP property. 

This includes all required training and 

guidance on programs affecting 

disposition practices. 

(2) Provide visibility and promote 

maximum reuse of DLA Disposition 

Services-managed inventory assets. 

Implement transfer and donation 

policies and procedures consistent with 

GSA regulations. 

(3) Provide tailored disposal support 

to the DoD warfighter during 

contingency operations, as approved by 

the ASD(L&MR). 

(i) Work with the Military 

Departments to receive and dispose of 

property in the most efficient manner. If 

standard accountability practices are not 

practical, alternative processes may be 

established on a temporary basis. 

However, as time or conditions permit, 

prescribed processes will be established 

and appropriate additions, deletions, 

and adjustments to the official 

accountable record will be completed. 

(ii) Provide comprehensive disposal 

services supporting customer-unique 

needs based on mutually developed 

service agreements. DLA Disposition 

Services, along with DLA, will work 

with customers of all levels, e.g., 

generators, major commands, and 

Services, to define expectations and 

establish service delivery strategies. 

(4) Use the most appropriate sales 

method to obtain optimum return on 

investment for all DoD surplus property 

sold. Respond to inquiries, process 

disputes, protests, and claims pertaining 

to disposable property sales. 

(5) Implement quality control 

programs for the Defense Materiel 

Disposition Program to assure optimum 

reutilization; proper DEMIL; use of 

environmentally sound disposal 

practices; implementation of TSC 

measures for MLI and CCLI. 

(6) Implement TSC in accordance 

with DoD Instruction 2030.08 for USML 

and CCL items and comply with 

applicable export control regulations 

and laws. 

(7) Monitor DLA Disposition Services 

site PMRP operations and provide 

support to DoD Components and 

participating federal agencies. Manage 

the recovery operations of the PMRP. 

(8) Prepare and distribute reports for 

disposition. 

(9) Serve as the office of primary 

responsibility for environmentally 

regulated and HP as detailed in DoD 

Manual 4160.21, Volume 4. 

(10) Comply with and implement the 

provisions of DoD Instruction 4160.28, 

DoD 4160.28–M Volumes 1–3, and DoD 

Instruction 2030.08 in the execution of 

DLA Disposition Services worldwide. 

Coordinate procedural waivers or 

deviations for approval by the DoD 

DEMIL Program Office or DoD TSC 

Office in DLA–HQ (J–334). Forward 

policy waivers or deviations from the 

DoD DEMIL Program Office or DoD TSC 

Office to the USD(AT&L) or USD(P) 

respectively for approval. 

(11) Monitor property accountability 

and approve adjustments or corrections 

to property accounts for assigned DLA 

Disposition Services sites. 

(12) Comply with implementing 

guidance relative to relationships with 

Combatant Commanders as prescribed 

in DoD Directive 5105.22, ‘‘Defense 

Logistics Agency (DLA)’’ (available at 

http://www.dtic.mil/whs/directives/

corres/pdf/510522p.pdf). 

(13) Support disposal of Military 

Assistance Program property and other 

foreign-owned property in accordance 

with DoD 5105.38–M and § 273.7 of this 

subpart. 

(14) Provide reutilization, donation, 

and marketing assistance and disposal 

service to customers. 

(15) Maintain liaison with generating 

activities to determine most efficient 

method of acceptance (receipt in place 

vs. physical turn-in), determine 

mutually agreed-upon schedules for 

property receipts, and execute 

memorandums of understanding 

(MOUs) for receipt-in-place 

transactions. 

(16) Process excess property, surplus 

property, FEPP, nonsalable materiel, 

and other authorized turn-ins from 

generating activities. 

(17) Inspect and accumulate physical 

receipts of property; verify identity, by 

UII or IUID when applicable, and 

quantity. DLA Disposition Services sites 

need not verify quantities where units of 

issues are: Lot, assortment, board foot, 

cubic foot, foot, inch, length, meter, 

square foot, square yard, and yard. 

These units of issue are impractical and 

economically unfeasible. 

(18) Establish and maintain visibility 

of accountable property records for 

excess, surplus, and FEPP property. 

(19) Provide or arrange adequate 

covered storage to protect received 

property from the elements, maintain its 

value and condition, and reduce 

handling. Store property to prevent 

contamination or mixing, ensure proper 

identification and segregation (bins or 

areas are prominently marked, labeled, 

tagged, or otherwise readily identifiable 

with the property locator record), and 

allow inspection. 

(20) Fence or otherwise protect the 

disposal yard to ensure materiel is 

safeguarded against theft or pilferage. 

DLA Disposition Services are generally 

a tenant operation on a DoD installation 

that generates disposal property. The 

DLA Disposition Services must comply 

with the security matters identified in 

ISSAs established with the DoD 

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Component regarding security 

regulations. 

(21) Provide HW storage, as 

appropriate. Ensure HW storage 

facilities meet all applicable 

environmental standards and 

requirements, including those specified 

in 40 CFR part 264. 

(22) Prepare ISSAs. Coordinate with 

the local installation to resolve matters 

of mutual concern. 

(23) Provide information and 

assistance to those who are processing 

precious metals-bearing property into 

DoD PMRP. 

(24) Ensure periodic inventories are 

conducted, accountable property 

records updated, and required inventory 

adjustment documents are prepared and 

processed. 

(25) Implement reutilization, transfer, 

or donation (RTD) of surplus property. 

Promote maximum RTD of FEPP, excess 

property, and surplus property. Process 

authorized RTD requests. Ensure 

accountable records are updated in 

accordance with DoD Instruction 

5000.64. 

(26) Provide assistance to all 

authorized screeners, donees, and other 

interested persons. 

(27) Facilitate the sale of property not 

reutilized, transferred, or donated, and 

appropriate for release into commerce. 

(28) Deposit sale proceeds and other 

funds received, including storage 

charges and transfer monies to the 

appropriate accounts. 

(29) Manage the DoD scrap recycling 

program (including precious metals 

recovery) and related financial records. 

(30) Assist host installations in 

executing their QRPs in accordance 

with 10 U.S.C. 2577 and deliver sales 

revenues from eligible personal property 

to defray the costs incurred by operating 

and improving recycling programs, 

financing pollution abatement and 

environmental programs, funding 

energy conservation improvements, 

improving occupational, safety, and 

health programs, and funding morale, 

welfare, and recreation programs. 

(31) Ensure DEMIL, including small 

arms serialized weapons and serialized 

parts is accomplished in accordance 

with DoD Instruction 4160.28 and DLA 

Disposition Services internal direction. 

Provide shipment locations and 

instructions to generating activities, as 

requested. 

(32) Document handling and receipt 

of serialized weapons in accordance 

with the procedures in Defense Logistics 

Agency Instruction (DLAI) 1104, 

‘‘Control of Small Arms by Serial 

Number’’ (available at http://

www.dla.mil/issuances/Documents_1/

i1104.pdf) for the control of small arms 

by serial number. 

(33) Update the DoD IUID Registry 

upon the materiel disposition of 

uniquely identified items in accordance 

with the procedures in § 273.9. 

(h) ICP Manager. The ICP Manager is 

responsible for the materiel 

management of a group of items either 

for a particular Military Department or 

for the DoD as a whole. For the Defense 

Materiel Disposition Program, the ICP 

manager will: 

(1) Ensure managed items are 

properly cataloged in the FLIS, in 

accordance with DoD 4100.39–M. To 

prevent unauthorized disposition or 

release within DoD, other Federal 

civilian agencies, or release into 

commerce, include required data 

elements such as UII (when applicable), 

accurate codes for DEMIL, controlled 

inventory items, precious metals, shelf 

life items, and critical items (critical 

safety items (CSI) or flight safety critical 

aircraft parts), or other applicable data 

elements. 

(2) Prepare complete instructions 

when property is assigned DEMIL Code 

‘‘F,’’ in accordance with life-cycle 

management requirements in Enclosure 

5 of DoD 4160.28–M Volume 2. 

Additionally, load the instruction in the 

DoD DEMIL ‘‘F’’ Instruction repository 

hosted by the Army’s Integrated 

Logistics Support Center Web site at 

https://tulsa.tacom.army.mil/. 

(3) Review DLA Disposition Services 

assets and orders, as appropriate, prior 

to initiating new purchases. 

(4) Process other ICP interrogations or 

orders for requirements assigned a 

UMMIPS priority designator: 

(i) Falling within Issue Priority Group 

1 (Priorities 01—03). 

(ii) In accordance with the procedures 

in DLM 4000.25–1. 

(iii) Considering on-hand assets to the 

same extent as would be done to satisfy 

their own service orders. 

(5) Prepare data, records for 

accountability, and provide disposition 

recommendations as prescribed here 

and in DoD Instruction 5000.64 in order 

to maintain backup material for audit 

review. 

(6) Annually provide DLA Disposition 

Services with updates to points of 

contact on the DoD DEMIL program 

Web site https://demil.osd.mil/ for 

operational matters, such as 

reutilization, donation, DEMIL, precious 

metals, HP, and CSIs. 

(7) Arrange for DEMIL of those items 

not authorized for DLA Disposition 

Services site DEMIL processing. 

(8) Submit available technical data 

needed to prepare specialized offers and 

reclamation requirements, when 

requested. 

(9) Identify items requiring 

reclamation and advise Military 

Department and Defense Agency ICPs or 

IMMs of items with reclamation 

potential. 

(10) Prepare and forward reclamation 

transactions for the interservice 

interchange of data for component parts 

with reclamation potential. 

(11) Process reclamation notifications 

and data interchange transactions of 

other ICPs. 

§ 273.7 Excess DoD property and scrap 

disposal processing. 

(a) General. (1) Military Departments 

and Defense Agencies will declare DoD 

property excess and use the DoD intransit control system (ICS) as required 

by DoD Instruction 5000.64 and DLM 

4000.25–2. 

(2) Generating activities are 

encouraged to retain physical custody 

until disposition instructions are 

provided to reduce processing costs; 

e.g., packaging, crating, handling, and 

transportation (PCH&T). 

(3) Disposal of wholesale excess DoD 

property CONUS stocks from DLA 

Depot recycling control points (RCPs) is 

automated. This property does not 

require transport to a DLA Disposition 

Services site. Authorized excess DoD 

property is transferred between the RCP 

account and the DLA Disposition 

Services account (SC4402). The 

following FSGs, FSCs, SCCs, and DEMIL 

codes are ineligible for RCP: 

(i) FSGs: 10, 11, 12, 13, 14, 18, 26, 68, 

80, 87, 88, 89, 91 and 94. 

(ii) FSCs: 2350, 3690, 4470, 4920, 

4927, 6505, 6508, 6750, and 8120. 

(iii) SCCs: H. 

(iv) DEMIL Codes: G and P. 

(b) Property and scrap accepted and 

excluded. (1) DLA Disposition Services 

must accept and dispose of all 

authorized DoD-generated excess, 

surplus, FEPP, scrap, and other personal 

property with the exclusions in 

paragraph (e) of this section. 

(2) Property not disposed of through 

RTDS will be processed for disposal 

under an HW contract, except as 

specified elsewhere. For example, HP 

will be processed on HW disposal 

service contracts. Other property will be 

downgraded to scrap, demilitarized, 

processed for A/D, or disposed of 

through a DLA Disposition Services 

service contract. 

(3) DLA Disposition Services sites 

minimize processing delays as much as 

possible. In the event a site is unable to 

physically accept the property at the 

desired time and location due to 

workload, generating activities may 

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retain the property for processing inplace, seek another DLA Disposition 

Services site, or hold the property until 

the DLA Disposition Services site is able 

to receive the property. 

(4) DLA Disposition Services sites: 

(i) Accept and process nonsalable 

materiel that has no reutilization, 

transfer, donation, or sale value but is 

not otherwise restricted from disposal 

by U.S. law or Federal or military 

regulations. 

(ii) Ensure that disposition is by the 

most economical and practical method; 

for example, donation in lieu of A/D or 

through a service contract that meets 

minimum legal requirements for 

disposal of the specific types of 

property. 

(5) DLA Disposition Services sites 

may not accept (either physically or on 

its account) and no reutilization or sale 

service will be given for: 

(i) Radioactive waste, items, devices, 

or materiel (all materiel that is 

radioactive). 

(ii) Unsalable materiel of a nonhazardous nature. This includes 

materiel for which sale or disposal is 

prohibited by U.S. law or federal or 

military regulation (e.g., inspection 

approval stamps and devices, COTS 

software) unless the license agreement 

does not prohibit RTDS. 

(iii) Property designated for disposal 

by the Military Departments as 

identified in DoD Manual 4160.21, 

Volume 4. 

(iv) Classified material, except that 

which is addressed by paragraph 

(b)(5)(v) of this section. 

(v) Nuclear weapons-related materiel. 

(vi) Classified and unclassified 

information systems security material 

(cryptological (CRYPTO) or 

communications security (COMSEC)). 

Disposal of FSCs 5810 and 5811 are the 

responsibility of the Military 

Departments and may not be transferred 

to DLA Disposition Services in their 

original configuration as specified in 

DoD 4160.28–M Volumes 1–3. 

(vii) Property containing information 

covered by 5 U.S.C. 552a, also known as 

the Privacy Act of 1974. 

(6) DoD Components will manage the 

collection and disposal of installation 

refuse and trash. If refuse and trash, 

when properly segregated, possesses 

RTDS potential, disposition may be 

accomplished via DLA Disposition 

Services, recycling provisions of refuse 

collection contracts, in-house refuse 

operations, or QRPs as appropriate. 

(7) The DLA Disposition Services site 

operating as a tenant on an installation 

will notify the host activity when 

unauthorized shipments are received at 

the DLA Disposition Services site 

(including off-site shipments) of 

radioactive items, classified material, 

nuclear weapons-related materiel, and 

classified and unclassified information 

systems security material (CRYPTO/

COMSEC). The host activity will be 

responsible for retrieving and securing 

any radioactive items, classified items 

and unclassified information systems 

security material (CRYPTO/COMSEC) 

immediately upon request of the DLA 

Disposition Services site. 

(8) DLA Disposition Services sites 

will not accept scrap accumulations that 

are contaminated or commingled with: 

(i) MPPEH. 

(ii) MLI that require DEMIL (DEMIL 

Codes C, D, E and F) and MLI that 

require mutilation (DEMIL Code B). MLI 

with DEMIL Code G and P are not 

authorized for acceptance by DLA 

Disposition Services in their original 

state. 

(iii) CCLI that has not undergone 

mutilation to the point of scrap as 

defined in DoD Instruction 2030.08. 

(iv) HP FSCs. 

(9) Contaminated scrap should be 

turned in as HW. 

(c) Scrap segregation and 

identification. (1) Separating material at 

the source simplifies scrap segregation 

and reduces handling. Commingling 

material may reduce or, in some 

instances, destroy the value of the scrap. 

(2) Generating activities are 

responsible for initial identification and 

segregation. The major basic material or 

content will be used in the item 

nomenclature block of the DTID. 

(3) Scrap will be segregated to ensure 

only authorized items are in a scrap 

pile. 

(4) DLA Disposition Services sites 

will provide guidance and, where 

possible, containers for use by scrap 

generators at the source. 

(5) The generating activity collecting 

the scrap or waste will maintain proper 

segregation of the material and 

determine a point at which no further 

material will be added. When scrap 

piles are being built by the DLA 

Disposition Services site, the same 

principles apply. Scrap generated from 

explosive and incendiary items and 

chemical ammunition is dangerous and 

will not be commingled with other 

types of property. 

(d) Documentation for disposal 

through DLA Disposition Services. (1) 

Use DoD automated information 

systems to the extent practical to 

prepare documentation for excess, 

surplus, or scrap DoD property or FEPP. 

This method of submitting information 

is preferred, particularly for turn-in of 

HW. In addition to submitting the 

information through automated 

information systems, hard copies must 

be produced and maintained with the 

items during the disposal processes. 

(2) The generator will provide to the 

DLA Disposition Services site an 

original and three hard copies of a DD 

Form 1348–1A, ‘‘Issue Release/Receipt 

Document,’’ or DD Form 1348–2, ‘‘Issue 

Release/Receipt Document with 

Address Label’’ (available at http://

www.dtic.mil/whs/directives/infomgt/

forms/formsprogram.htm.) The DTID 

must include a valid DoDAAC as 

authorized in Volume 6 of DLM 

4000.25, ‘‘Department of Defense 

Activity Address Code (DoDAAC) 

Directory (Activity Address Code 

Sequence)’’ (available at http://

www2.dla.mil/j-6/dlmso/elibrary/

Manuals/DLM/V6/Volume6.pdf). All 

further references to DD Form 1348–1A, 

which also include DD Form 1348–2, 

will be referred to in this subpart as a 

DTID. Table 1 of this section provides 

guidance on preparation of the DD Form 

1348 series documents. For scrap 

transfers, see paragraph (f) of this 

section. 

TABLE 1—TRANSFERS OF USABLE PROPERTY TO DLA DISPOSITION SERVICES SITES (SINGLE LINE ITEM TURN INS) USING

DD FORMS 1348–1A/2 

Field legend Record position Entry and instructions 

Document Identifier (DI) .................. 1–3 ................................................. A5J/940R. Use information on the source document to perpetuate the 

archived DI. For locally determined excesses generated at a base, 

post, camp, or station, assign a DI code as determined by shipping 

activity procedures. 

Routing Identifier ............................. 4–6 ................................................. Enter the record indicator (RI) of the shipping activity or leave blank 

when the shipping activity is not assigned an RI. 

Media and Status ............................ 7 ..................................................... Leave blank. 

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TABLE 1—TRANSFERS OF USABLE PROPERTY TO DLA DISPOSITION SERVICES SITES (SINGLE LINE ITEM TURN INS) USING

DD FORMS 1348–1A/2—Continued 

Field legend Record position Entry and instructions 

Stock or Part Number ..................... 8–22 ............................................... See block 25. 

Unit of Issue .................................... 23–24 ............................................. Enter the unit of issue of the stock or part number being turned in. 

Disposal Quantity ............................ 25–29 ............................................. Enter the quantity being turned in to disposal activity. See block 26. 

Document Number .......................... 30–43 ............................................. See block 24. 

Alpha Suffix ..................................... 44 ................................................... Leave blank (Exception: Use if DTID consists of multiple documents 

because the 5-digit quantity field (Record Positions 24–29) is insufficient.) See block 24. 

Supplementary Address .................. 45–50 ............................................. Enter DoDAAC of predesignated consignee DLA Disposition Services 

Site. 

A DoDAAC is the key component for using the DLA Disposition Services property accounting disposal system to either turn in or order excess 

property to and from DLA Disposition Services. The code is required for all DoD activities, contractors, and FCAs to order, receive, ship, 

identify custody of government property, or reflect identification in a specified military standard logistics system. The code must be approved by the Military Departments, Defense Agencies, and FCA authoritative organization and be officially registered in the DoD activity 

address file. The DoDAAC system provides identification codes, plain text addresses, and selected data characteristics of organizational 

activities needed to order, mark, prepare shipping documents, bills, etc., and only recognizes active DoDAACs. FCAs are only authorized to 

turn excess property in to DLA Disposition Services for disposal if they have officially authorized an Economy Act Order for reimbursement 

of transaction billing charges. 

Signal .............................................. 51 ................................................... This code is used to designate the bill-to and ship-to (or ship-from in 

the case of DI code FT_and FD_records) activities. Codes B, C, 

and L apply to HM/HW transfers. 

Fund ................................................ 52–53 ............................................. For HM and waste turn-ins, enter the fund code from Military Standard Billing System (MILSBILLS) designating the funds to be 

charged. For non-military activities who are not users of 

MILSBILLS, (e.g., FCAs or NAFs) using an activity address code), 

enter ‘‘XP.’’ 

Distribution ...................................... 54 ................................................... Use the information on the source document to perpetuate the 

archived data or leave blank. 

Retention Quantity .......................... 55–61 ............................................. Enter the quantity to be retained in inventory or leave quantity blank. 

Precious Metals ............................... 62 ................................................... Enter applicable code from Appendix AP2.23 of DLM 4000.25–1. 

Automated Data Processing Equipment Identification.63 ................................................... Enter applicable code from AP2.24 of DLM 4000.25–1. 

Disposal Authority ........................... 64 ................................................... Enter applicable code from DLM 4000.25–1 Appendix AP2.21. (Mandatory) (FCAs use DAC ‘‘F’’—not shown in appendix.) 

Demilitarization Code ...................... 65 ................................................... Enter the Web-Enabled FLIS or Federal Logistics Data (FEDLOG) recorded DEMIL code of record. For LSNs, Navy item control numbers, or Army control numbers assign DEMIL code in accordance 

with current Volume 2 of DoD 4160.28–M (Mandatory). 

Reclamation .................................... 66 ................................................... Enter code ‘‘Y’’ if reclamation was performed prior to release to a 

DLA Disposition Services site. Enter ‘‘R’’ if reclamation is to be performed after turn in to DLA Disposition Services site. Enter code 

‘‘N’’ if reclamation is not required. 

Routing Identifier ............................. 67–69 ............................................. Generate from disposal release order. 

Identifier Ownership ........................ 70 ................................................... Enter applicable code or leave blank. 

SCC ................................................. 71 ................................................... Enter applicable code from DLM 4000.25–2. 

Management ................................... 72 ................................................... Enter information from source document to perpetuate archived data 

or leave blank. If block 71 (SCC) is Q and the management code 

is blank, DLA Disposition Services will mutilate the property upon 

receipt. 

Criticality Code ................................ 73 ................................................... Enter criticality code documented in FLIS for the items in accordance 

with DoD 4100.39–M which indicates when an item is technically 

critical, by reason of tolerance, fit, application, nuclear hardness 

properties, or other characteristics that affects the identification of 

the item. 

Unit Price ......................................... 74–80 ............................................. Enter the unit price for the NSN or part number in record positions 8– 

22. 

Block Entries 

1 ...................................................... Enter the extended value of the transaction. 

2 ...................................................... Enter the shipping point identified by DoDAAC; if reduced printing is used, the clear address may be entered in addition to the DoDAAC. 

3 ...................................................... Enter the consignee DLA Disposition Services site by DoDAAC. This will be the predesignated DLA Disposition Services site and will be entered by the shipping activity; if reduced printing is used, the in the 

clear address may be entered in addition to the DoDAAC. 

4 ...................................................... Insert HM or HW, if applicable. 

5 ...................................................... Enter the date of document preparation, if required by the shipper. 

6 ...................................................... Enter the national motor freight classification, if required by the shipper. 

7 ...................................................... Enter the freight rate, if required by the shipper. 

8 ...................................................... Enter coded cargo data, if required by the shipper. 

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Block Entries 

9 ...................................................... Enter applicable controlled inventory item code (CIIC), which describes the security or pilferage classification of the shipment from DoD 4100.39–M. 

10 .................................................... Enter the quantity actually received by the DLA Disposition Services site, if different from positions 25–29. 

11 .................................................... Enter the number of units of issue in a package, if required by the shipper. 

12 .................................................... Enter the unit weight applicable to the unit of issue, if required by the shipper. 

13 .................................................... Enter the unit cube applicable to the unit of issue, if required by the shipper. 

14 .................................................... Enter the uniform freight classification, if required by the shipper. 

15 .................................................... Enter the FLIS or FEDLOG recorded shelf-life code in block 15, if appropriate; otherwise, leave blank. 

16 .................................................... Enter in the clear freight classification nomenclature, if required by the shipper. 

17 .................................................... Enter the item nomenclature. For non-NSN items, enter as much descriptive information as possible. Specified additive data or certification from the generating source for specific types of property should be entered. 

18 .................................................... Enter type of container, if required by the shipper. 

19 .................................................... Enter number of containers that makes up the shipment, if required by the shipper. 

20 .................................................... Enter total weight of shipment, if required by the shipper. 

21 .................................................... Enter total cube of shipment, if required by the shipper. 

22 .................................................... Received by (for DLA Disposition Services site) signature of person receiving the materiel. 

23 .................................................... Date received (for DLA Disposition Services site) date materiel was received and signed for. 

24 .................................................... Document number. Generate from source document. DTID consists of 6-digit DoDAAC + 1-digit last number of year, 3-digit Julian Date + 4-digit generator-assigned serial number. This cannot be the same document number that was used to receive the materiel. For locally determined excesses generated at 

base, post, camp, or station, assign a document number as determined by Service or agency procedures. Leave suffix code blank unless needed to indicate additional documents to show complete quantity. Generating activities and ordering activities and their contractors must have a valid DoDAAC, as defined in DoD 5105.38–M to use DLA Disposition Services. 

25 .................................................... NSN—Enter the stock or part number being turned-in. For subsistence items, enter the type of pack in 

record position 21. If an NSN is not used, FSC, part number, noun or nomenclature, where appropriate, 

to build an LSN. 

26 .................................................... Leave blank. Reserved for DLA Disposition Services Site use. 

27 .................................................... This block may contain additional data including bar coding for internal DLA Disposition Services use, generator certifications (e.g., inert certificate) or fund citation, FSCAP criticality code, etc. Enter data in this 

block as required by the shipping activity or the DLA Disposition Services Site receiving the materiel. 

When data is entered in this block, it will be clearly identified. For HM and waste turn ins, enter the 

DoDAAC of the bill to office, the contract line item number (CLIN) for the item, and the total cost of the 

disposal, (that is, CLIN cost times quantity in pounds equals cost of disposal). 

(3) Generating activities may use the 

DLA Disposition Services web-based 

program electronic turn-in document 

(ETID) for submitting the required 

information electronically. ETID 

accommodates generators that do not 

have service-unique automated 

capabilities. ETID access and guidance 

are located on the DLA Disposition 

Services Web site. Generating activities 

requiring ETID access must apply for a 

user ID and password. 

(4) In addition to the data required by 

DLM 4000.25–1, the DTID must clearly 

indicate: 

(i) The reimbursable category (such as 

foreign purchased, NAF, FCA), 

including the reimbursement fund 

citation, or an appropriate indicator that 

reimbursement is required (e.g., 

purchased with NAF or Disposal 

Authority Code ‘‘F’’ for FCAs). DTIDs 

without reimbursement data will be 

processed as non-reimbursable. 

(ii) The value and a list of component 

parts removed from major end items or 

a copy of the limited technical 

inspection showing the nature and 

extent of repair required. 

(iii) One of the SCCs listed in DLM 

4000.25–2 as determined by the 

generator. 

(5) DoD Components will turn in 

usable property with line item 

designations. 

(i) To the extent possible, usable 

property will be turned in as individual 

line items with their assigned and valid 

NSN and UII (when applicable). 

Exceptions include property turned in 

as generator batchlots (see criteria in 

paragraph (g)(5)(ii) of this section); 

furniture turned in as a group on a 

single form; and locally purchased 

property without an NSN. 

(ii) Property may be turned in without 

a valid NSN when the materiel cannot 

be identified to a valid NSN in FEDLOG 

(e.g., locally purchased property). Prior 

to assigning an LSN, generating 

activities will match the part number or 

bar code number from the property 

against the DLA Logistics Information 

Service Universal Directory of 

Commercial Items Cross Reference 

Inquiry. 

(iii) Generating activities will assign 

an LSN if a part number or barcode is 

not available; the property is lost, 

abandoned, or unclaimed privately 

owned personal property; or the 

property is confiscated or captured 

enemy materiel. In Block 25 of the 

DTID, annotate the FSC, NATO 

codification bureau code, if available, 

and identify the noun, nomenclature, or 

part number. 

(iv) Due to national security concerns, 

the FSCs listed in Table 2 of this section 

that are clearly MLI or CCLI require a 

higher degree of documentation. When 

these items are not assigned an NSN, the 

DTID must include the appropriate FSC; 

the valid part number and 

manufacturer’s name; nomenclature that 

accurately describes the item; the end 

item application; and a clear text 

statement explaining why the NSN is 

not included (e.g., locally purchased 

item, found on post, lost, abandoned, 

privately owned property). This 

information may be annotated directly 

on the DTID or securely attached to the 

DTID. 

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TABLE 2—FEDERAL STOCK CLASSES

REQUIRING TURN-IN BY VALID NSN 

GROUP 10 GROUP 12 GROUP 58 

ALL FSCs FSC 2305 FSC 5810** 

FSC 2355 FSC 5811** 

GROUP 11 MLI or CCLI 2350 FSC 5820 

ALL FSCs FSC 5821 

GROUP 28 FSC 5825 

GROUP 12 FSC 2840 FSC 5826 

ALL FSCs FSC 2845 FSC 5840 

FSC 5841 

GROUP 13 GROUP 29 FSC 5845 

ALL FSCs FSC 2915 FSC 5846 

FSC 5850 

GROUP 14 GROUP 36 FSC 5855 

ALL FSCs FSC 3690 FSC 5860 

GROUP 15 GROUP 42 GROUP 59 

FSC 1560 FSC 4230 FSC 5963 

FSC 5985 

GROUP 16 GROUP 44 FSC 5998 

FSC 1670 FSC 4470* FSC 5999 

GROUP 17 GROUP 49 GROUP 66 

FSC 1710 FSC 4921 FSC 6615 

FSC 1720 FSC 4923 

FSC 4925 GROUP 69 

GROUP 18 FSC 4927 FSC 6920 

FSC 1810 FSC 4931 FSC 6930 

FSC 1820 FSC 4933 FSC 6940 

FSC 1830 FSC 4935 

FSC 1840 FSC 4960 GROUP 84 

FSC 8470 

GROUP 19 FSC 8475 

FSC 1905 

* Disposal of originally configured Navy assigned FSC 4470 items is the responsibility of 

the U.S. Navy. 

** Disposal of FSC 5810/5811 equipment 

with a CIIC of 9 and that is classified (CIICs 

D, E, and F) or designated CCI is the responsibility of the owning Military Department and 

will not be received by DLA Disposition Services sites in its original configuration. 

(v) The DTID for any property turned 

in by LSN without an assigned DEMIL 

code must include a required clear text 

DEMIL statement, based on information 

in DoD 4160.28–M Volumes 1–3. 

Generating activities may request 

assistance of a DLA Disposition Services 

site, DLA, or the integrated manager for 

the FSC to determine the appropriate 

statement. DLA Disposition Services 

sites will assist generating activities in 

developing the clear text DEMIL 

statement and assignment of the 

appropriate DEMIL code. If assistance is 

not requested or not used, DLA 

Disposition Services sites may reject the 

turn-in of materiel which does not meet 

established criteria. 

(6) Scrap DTIDs will include: 

(i) DI code. 

(ii) Unit of issue (pounds or 

kilograms). 

(iii) Quantity (total weight (estimated 

or actual)). 

(iv) DTID number. 

(v) Precious metals indicator code. 

(vi) Disposal authority code. 

(vii) Basic material content (Block 17). 

(viii) Reimbursement data, if 

applicable. 

(7) For HP documentation, see DoD 

Manual 4160.21, Volume 4. 

(8) The generating activities will 

complete documentation for in-transit 

control of property (excluding scrap 

(SCC S)), waste, NAF, lost, abandoned, 

or unclaimed, privately owned, and 

FCA property) in accordance with DoD 

4160.28–M Volume 3, for shipments or 

transfers to DLA Disposition Services 

sites of property with a total acquisition 

value of $800 or greater and all property 

designated as pilferable or sensitive 

identified by an NSN or part number. 

The ICS document tracks property from 

the time of release by generating activity 

(regardless whether the property is 

shipped to the DLA Disposition Services 

site or retained by the generating 

activity) until the DLA Disposition 

Services site accepts accountability. The 

generating activities will update the 

records to reflect the change in 

accountability and custody. 

(9) DoD Components will identify 

defective items, parts, and components 

containing latent defects. 

(i) General information—(A) Category 

1 (CAT 1) defective or counterfeit 

property. (1) Is identified as military or 

Federal Government specification 

property intended for use in safety 

critical areas of systems, as determined 

by the user and reported to the item 

manager. 

(2) Does not meet commercial 

specifications. 

(3) If used, would create a public 

health or safety concern; RTDS as usable 

property is prohibited. 

(4) Must be mutilated by the 

generating activity according to specific 

instructions provided by the item 

manager. 

(B) Category 2 (CAT 2) defective 

property. (1) Does not meet military or 

Federal Government specifications, but 

may meet commercial specifications. 

(2) Cannot be used for its intended 

military purpose and must not be 

redistributed within the Department of 

Defense, as directed by the item 

manager. 

(3) May be used for commercial 

purposes and may be transferred, 

donated, or sold as usable property. 

(4) If sold, requires special terms and 

conditions warning purchasers that the 

property is CAT 2 defective and is not 

acceptable for resale back to the 

Department of Defense. 

(ii) ICP requirements. (A) ICPs will list 

defective property with the 

Government-Industry Data Exchange 

Program (GIDEP). GIDEP is located at 

http://www.gidep.org/. 

(B) The DLA Disposition Services Safe 

Alert or Latent Defect (SALD) program 

contains additional disposal processing 

information for defective property and 

can be viewed at http://

www.dispositionservices.dla.mil/. 

(iii) Sales requirements. (A) If the 

property has been rejected as defective 

due to non-conformance with U.S. 

Government specifications, it may be 

authorized for sale with a statement as 

to the specific reason for its rejection. 

DLA Disposition Services will ensure 

that U.S. Government identification, 

such as contract numbers, specification 

numbers, NSN, and any other printing 

that would identify the item with the 

U.S. Government is removed or 

obliterated. A statement to this effect 

will be included in the sales offering, as 

a condition of sale. Terms or conditions 

in sale offerings will warn purchasers 

that the property is CAT 2 defective and 

is not acceptable for resale to the 

Department of Defense. 

(B) Return copies of the DTID from 

the DLA Disposition Services site. 

Unless generating activities provide 

written notification to DLA Disposition 

Services sites that electronic receipt 

confirmations are acceptable, DLA 

Disposition Services sites will provide 

final receipt documentation for each 

DTID. Generating activities can use the 

DLA Disposition Services property 

accounting system to query transactions 

status. 

(e) Property custody determinations— 

(1) Physical custody retention. (i) 

Generating activities should consider 

retaining physical custody of property 

declared as excess to reduce handling 

and preclude transportation costs. 

(ii) An MOU will be established 

between the servicing DLA Disposition 

Services site and the generating activity. 

Custodial and accountability 

responsibilities will be identified in the 

MOU. DLA Disposition Services sites 

will not take accountability until the 

MOU is executed and signed at the 

approval levels identified in the MOU. 

(iii) Inspection(s) will be completed 

by the DLA Disposition Services site, 

where appropriate. If not accomplished 

by the DLA Disposition Services site, a 

mutually agreeable disposal condition 

code will be assigned. 

(iv) Generating activities are 

responsible for all expenses incurred 

before acceptance of accountability by a 

DLA Disposition Services site. At the 

point of DLA Disposition Services 

accountability acceptance (not in 

conditional acceptance time frame as 

described in paragraph (g)(2) of this 

section), expenses (e.g., PCH&T of nonhazardous excess, surplus, and FEPP) 

are borne by DLA Disposition Services. 

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Exceptions may be negotiated by a DoD 

Component or federal agency 

representative at a level commensurate 

with DLA Disposition Services Director 

(Senior Executive Service level). 

(v) The DLA Disposition Services site 

will provide barcode labels to the 

generating activity to affix on the 

property. The labels will contain the 

DTID number, DEMIL code, and federal 

condition code. The label will be 

positioned to clearly indicate that the 

property accountability has passed to 

DLA Disposition Services (e.g., ‘‘on DLA 

Disposition Services Site Inventory’’). 

Property should be consolidated and 

protected in a designated area. The 

activity with physical custody is 

responsible for the property’s care and 

protection until it is disposed of or 

moved to a DLA Disposition Services 

site. 

(2) Turn-ins. When the generating 

activity decides to transport property to 

the DLA Disposition Services site, the 

care and custody of the property will be 

borne by the DLA Disposition Services 

site at the point of physical receipt. 

(f) Transferring usable property and 

scrap to a DLA Disposition Services site. 

(1) Generating activities will comply 

with this part, DLM 4000.25–1, and 

their Service or agency retention and 

disposal policies and procedures when 

preparing property for transfer for 

disposal. The generating service will 

maintain accountable records of 

accountable property, in accordance 

with DoD Instruction 5000.64, until 

formally relieved of accountability by 

DLA Disposition Services. 

(2) Generating activities will schedule 

all transfers (receipt in-place or 

physical) through advanced notification 

(i.e., use of a listing or automated 

DTIDs.) 

(3) Usable property will, to the extent 

possible, be transferred as individual 

line items with their assigned valid NSN 

and UII (when applicable). Exceptions 

include property turned in as generator 

batchlots, furniture turned in as a group 

on a ‘‘tally-in’’ form, and locally 

purchased property without an NSN. 

(4) Scrap, properly identified with 

supply class by basic material content 

and segregated, must be transferred to a 

DLA Disposition Services site using a 

DTID. 

(5) If the deficiency prohibits further 

DoD use, the materiel will remain in 

SCC Q, and owners will direct transfer 

of the materiel to DLA Disposition 

Services sites following the guidance in 

paragraph (d)(9) of this section. 

Improperly documented, unauthorized 

source, defective, non-repairable, and 

time-expired aviation CSI/FSCAP 

materiel that is not mutilated by the 

holding activity will be directed to the 

DLA Disposition Services site in SCC Q 

with management code S. All such 

materiel will be mutilated. The ICP/

IMM should identify to the DLA 

Disposition Services any unique 

instructions for disposal requiring 

specific methods or information 

regarding hazardous material, waste, or 

property contained in the item. When 

transferring such aviation CSI/FSCAP to 

a DLA Disposition Services site, the 

generating activity DTID must clearly 

state in block 17 that the part is 

defective, non-reparable, time-expired, 

or otherwise deficient and that 

mutilation is required. 

(6) Property capable of spilling or 

leaking may not be transferred to a DLA 

Disposition Services site in open, 

broken, or leaking containers. All 

property will be non-leaking and safe to 

handle. 

(7) For physical transfers, generating 

activities will be responsible for 

movement of the property or scrap to 

the nearest DLA Disposition Services 

location. 

(8) DEMIL instructions are to be 

provided by the ICP or IMM. DEMIL F 

items must have a valid and verifiable 

NSN. LSNs with DEMIL F are not valid. 

DLA Disposition Services sites will not 

accept DEMIL F property without the 

proper instructions. 

(9) DTIDs that do not meet the 

requirements in paragraph (e) of this 

section will be rejected and returned to 

the Military Departments. 

(10) To obtain DEMIL F instructions, 

please visit the Army’s Integrated 

Logistics Support Center Web site at 

https://tulsa.tacom.army.mil/DEMIL. 

(g) Receipt of property and scrap—(1) 

During transfer. (i) DLA Disposition 

Services sites are responsible for 

ensuring proper receipt, classification, 

processing, safeguarding, storing, and 

subsequent shipping of all property and 

scrap. This includes property to be 

accounted for as items and properly 

segregated scrap and waste with RTDS 

value, and materiel destined for 

disposal. 

(ii) DLA Disposition Services sites 

will assist, when requested, in tracing 

property when an in-transit control 

follow-up has been received by the 

generating or shipping activity. 

(iii) DLA Disposition Services sites 

will maintain close liaison with 

generating activities to ensure: 

(A) Informational guidance on 

disposal transfers is given to generating 

activities. 

(B) A DLA Disposition Services site’s 

receiving capability and the volume of 

property to be transferred is taken into 

consideration for turn-in scheduling. 

Property inspections will be performed 

in-place if more advantageous due to the 

characteristics of the property, as 

determined by DLA Disposition 

Services. 

(C) Assistance is provided to 

generating activities, as needed, to 

assure proper segregation of scrap and 

HW material before transfer. If the 

weight generated, market conditions, or 

local trade practices warrant, further 

scrap segregation will be made. 

(D) All property (except unsalable 

materiel that is precluded from sale by 

law), including scrap and refuse or trash 

with a RTDS value, is processed as set 

forth in this part and will not be 

disposed of by dumping in landfills. If 

the DLA Disposition Services site has 

knowledge of salable materiel being 

dumped in a sanitary fill, the DLA 

Disposition Services site chief will 

notify the installation commander 

regarding the matter. 

(E) Property received is protected to 

prevent damage from unnecessary 

exposure to the elements. Property 

transferred as condemned may still be 

usable, and its preservation may benefit 

the Defense Materiel Disposal Program. 

(1) Instances of improper handling of 

government property will be brought to 

the attention of the generating activity 

or installation commander for remedial 

action. 

(2) Recurrent instances of improper 

care or handling will be documented for 

referral to DLA and the disposal focal 

points of the Military Departments and 

Defense Agencies. 

(iv) The generating activity will assure 

all property and scrap is properly 

identified, including special handling 

requirements, and that automated 

information system or manually 

prepared documentation contains the 

required number of copies and 

appropriate information for property 

received in place or physically 

accepted. 

(A) To the maximum extent possible, 

DLA Disposition Services sites will 

validate items during pre-receipt 

processes with documentation 

preparation and receipt processes with 

the physical transfer of the property. 

(1) The generator’s representative (if 

present) should assist with validation. 

Whether received in place or at a DLA 

Disposition Services site, a receipt copy 

of the DTID will be provided to the 

generator’s representative at that time. 

(2) If the turn-in is not accompanied 

by the generator’s representative, the 

official receipt documentation will be 

provided in the most efficient method 

available; e.g., through an electronic 

listing of items received, an actual copy 

of an annotated DTID or an electronic 

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return of an annotated DTID through a 

Web based document management 

system. 

(3) For turn-ins accompanied by a 

generator representative, a conditional 

receipt copy will be provided at the 

time of delivery. DLA Disposition 

Services sites will initial in block 22 

and date block 23 of the DTID. This 

copy constitutes conditional acceptance 

and becomes the official receipt unless 

property is rejected on a supply 

discrepancy report within 15 workdays. 

(B) Validation will consist of verifying 

property description and quantity, and 

assuring an authorized and appropriate 

SCC was assigned by the generating 

activity. DLA Disposition Services sites 

and generating activities will work 

together to validate and verify 

requirements and obtain appropriate 

certifications, etc., when property is 

received in place versus physically 

transported to a DLA Disposition 

Services site. The MOU, discussed in 

§ 273.6, will be used for securing and 

documenting these requirements. 

(C) DLA Disposition Services site 

personnel may exercise discretionary 

authority to change and challenge SCCs 

(except for items in SCC Q, which will 

be downgraded to scrap and mutilated). 

(D) For items in the general hardware, 

clothing, tools, furniture, and other 

nontechnical FSCs, DLA Disposition 

Services sites are authorized to use their 

best knowledge, judgment, and 

discretion to change and assign the 

appropriate SCC when determined, 

through physical inspection and 

examination, or where an obvious error 

in condition coding exists. DLA 

Disposition Services sites are 

responsible for any SCC changes they 

make and will document the change on 

the DTID. 

(E) For specialized items such as 

avionics, or items that require test, 

measurement, or diagnostic to 

determine serviceability, DLA 

Disposition Services site should 

challenge the generating activity SCC 

assignment if it appears incorrect. Items 

in original pack and unopened 

containers that are coded condemned or 

unserviceable should be viewed with 

guarded skepticism and challenged back 

to the generating activity. 

(v) Appropriate actions will be taken 

for discrepancies detected during prereceipt or receipt: 

(A) If property is to be physically 

received and the generating activity’s 

representative is present, accountability 

and physical custody of the property 

will normally remain with the generator 

until reconciled. DLA Disposition 

Services sites, at their discretion, may 

retain physical custody until reconciled. 

(B) Discrepancies noted during the 

receiving process, which may be 

discovered after electronic or hard copy 

documentation is received, will be 

processed in accordance with DLAI 

4140.55/AR 735–11–2/Secretary of the 

Navy Instruction (SECNAVINST) 

4355.18A/Air Force Joint Manual 

(AFJM) 23–215, ‘‘Reporting of Supply 

Discrepancies’’ (available at http://www.

dla.mil/issuances/Documents_1/

i4140.55%20(Joint%20Pub%20-%206

%20Aug%202001).pdf. 

(C) DLA Disposition Services will 

barcode the property for identification 

purposes. Barcoding should include use 

of any UII or IUID in place when 

applicable. 

(2) Conditional and accountable 

acceptance distinction. Conditional and 

accountable acceptances are separate 

actions. 

(i) Conditional acceptance occurs 

when a generating activity 

representative accompanies a transfer. 

DLA Disposition Services sites will 

provide a conditional receipt copy at 

time of physical delivery. Conditional 

acceptance becomes official and final 

acceptance receipt unless property is 

officially rejected by the DLA 

Disposition Services site within 15 

workdays. 

(ii) Accountable acceptance becomes 

final when verification of accurate 

property description, valid condition 

code assignment, correct quantity, and 

UII (when applicable) is completed by 

the DLA Disposition Services site. 

Physical inspections will be conducted, 

as appropriate. 

(iii) During the conditional 

acceptance processing, if the property is 

physically transferred to the DLA 

Disposition Services site and an 

inventory discrepancy surfaces, the DLA 

Disposition Services site will research 

and provide a report of the lost, 

damaged, or destroyed property in 

accordance with procedures in DoD 

7000.14–R Volume 12, Chapter 7. If the 

property remains at the generating 

activity site for receipt-in-place and an 

inventory discrepancy surfaces, the 

generating activity will research and 

provide a report of the lost, damaged, or 

destroyed property in accordance with 

procedures in DoD 7000.14–R Volume 

12, Chapter 7. The accountable 

organization will amend the 

accountable property records as 

appropriate upon completion of the 

property loss investigation. 

(3) Document acceptance. DLA 

Disposition Services sites will use a full 

signature for receipts in block 22 of the 

DTID. The conditional acceptance date 

will be entered in block 23. DLA 

Disposition Services sites will also use 

this date for the accountable record 

receipt transaction. 

(4) Returning receipts. DLA 

Disposition Services sites will return 

one hard copy on physical transfers, 

including generator-prepared batchlots, 

if required by the generating activity. 

DLA Disposition Services will make 

return receipts available to generators 

via a Web based document management 

system. Generating activities may access 

this system via the DLA Disposition 

Services Web site and search, view, and 

download copies of turn-in 

documentation. DLA Disposition 

Services personnel should work with 

generating activities to encourage the 

use of a Web-based document 

management system and eliminate hard 

copy return receipts. 

(i) For property physically received by 

a DLA Disposition Services site, 

generating activities will be provided a 

receipt copy upon delivery. 

(A) These receipts are considered 

conditional acceptance of 

accountability, pending completion of 

DLA Disposition Services site 

inspection and verification of the turnin. If no follow-up report is received by 

the generating activity within 15 

workdays, the provisional copy becomes 

the official receipt document, and the 

DLA Disposition Services Site assumes 

full accountability. 

(B) If the receipt is not recorded in a 

Web based document management 

system within 30 days, the provisional 

copy becomes the official receipt copy 

and the DLA Disposition Services Site 

assumes full accountability. 

(C) If a discrepancy is found, DLA 

Disposition Services sites may contact 

the generating activity and attempt 

resolution. If required, the guidance 

shown in paragraph (g)(2)(iii) of this 

section will be used for inventory 

discrepancies. 

(D) When acceptance is not possible, 

a reject notice will be provided to the 

generating activity within 7 workdays. 

Return receipts are available to 

generators via a Web based document 

management system. 

(ii) For turn-ins made by commercial 

carrier, parcel post, etc., DLA 

Disposition Services sites will provide 

receipt copies no later than 5 workdays 

after delivery. These receipts are 

considered conditional acceptance of 

accountability pending completion of 

DLA Disposition Services site 

inspection and verification of the turnin. If a discrepancy is found, DLA 

Disposition Services sites may contact 

and attempt resolution. When 

acceptance is not possible, a reject 

notice will be provided to the generating 

activity within 7 workdays. 

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(5) DLA Disposition Services site 

batchlots. (i) Consistent with the DoD 

ICS and in accordance with DLA 

Disposition Services operating 

guidance, DLA Disposition Services 

sites may batchlot property after receipt: 

(A) Batchlot property with an 

extended line item value of $800 or less, 

in SCCs A–H. 

(B) Batchlot property that does not 

contain pilferable or sensitive materiel. 

(ii) Property assigned DEMIL code 

‘‘A’’ in the critical or non-critical FSG/ 

FSCs, excluding FSCs 5985, 5998, and 

5999, is eligible for batchlotting. 

(iii) DLA Disposition Services sites 

may batchlot property requiring the 

same type of special processing, e.g., 

reimbursable property, same FSC. 

(iv) DLA Disposition Services sites 

may batchlot clothing and textile 

products with infrared or spectral 

reflectance with a DEMIL code of ‘‘E,’’ 

but the batchlots require a certification 

on the DTID (see Figure 1 of this 

section). 

(v) DLA Disposition Services sites 

will exclude from batchlotting: 

(A) Chemical, biological, radiological, 

and nuclear (CBRN) property and 

clothing (FSG 83 and 84); lab equipment 

such as centrifuges, biological 

incubators, micromilling machines, 

biological safety cabinets and laboratory 

evaporators; (FSG 66), camouflage 

clothing and individual equipment. 

(B) Low dollar property with high 

potential for RTDS. 

(C) Property defined as a special case 

in Enclosure 3 of DoD Manual 4160.21, 

Volume 4 that requires special receipt 

and handling requirements that cannot 

be met at time of receipt. 

(D) DEMIL required items identified 

in DoD 4160.28–M Volumes 1–3, DEMIL 

codes B, Q, and property in critical 

FSCs in DEMIL codes C, D, E, F, G, and 

P. Property in FSCs 5935, 5996, and 

5999 will not be batchlotted regardless 

of DEMIL code. 

(E) Property requiring inert 

certification. 

(F) Small arms or light weapons. 

(G) Lasers. 

(H) Radioactive materiels (e.g., gauges, 

meters, watches) not eligible for turn-in. 

(I) Chemical, biological, radiological, 

nuclear—defense (CBRN–D) 

equipment—These items are DEMIL F 

and instructions have to be followed for 

disposition and are NOT turned in to 

DLA disposition. 

(J) Items with a CIIC. Items 

determined to be pilferable or sensitive 

in accordance with Volume 6 of DLM 

4000.25 and DLA Regulation 4145.11/

AR 740.7/Navy Supply System 

Command Instruction (NAVSUPINST) 

4440.146C/Marine Corps Order (MCO) 

4450.11, ‘‘Safeguarding of DLA 

Sensitive Inventory Items, Controlled 

Substances, and Pilferable Items of 

Supply’’ (available at http://

www.dla.mil/issuances/Documents_1/

r4145.11.pdf). 

(K) HP. 

(L) Metalworking machinery and 

former industrial plant equipment. 

(M) Grade 8 fasteners and machine 

bolts in FSCs 5305 and 5306. Do not 

batchlot these items if they appear on 

the SALD list. 

(N) Property in SCC A with a total 

extended value, per DTID, of $50 or 

more, as shown in Table 3 of this 

section. 

TABLE 3—FSCS IN SCC A > OR = $50 EXCLUDED FROM BATCHLOTTING

FSC Description 

2910 ................................................................................... Engine Fuel System Component, Non-Aircraft. 

2920 ................................................................................... Engine Electrical System Components, Non-Aircraft. 

2940 ................................................................................... Engine Air and Oil Filters, Strainers and Cleaners, Non-Aircraft. 

2990 ................................................................................... Miscellaneous Engine Accessories, Non-Aircraft. 

3030 ................................................................................... Belting, Drive Belts, Fan Belts, and Accessories. 

4730 ................................................................................... Fittings and Specialties; Hose, Pipe, and Tube. 

5660 ................................................................................... Fencing, Fences and Gates and Components. 

5895 ................................................................................... Miscellaneous Communication Equipment. 

5910 ................................................................................... Capacitors. 

5935 ................................................................................... Connectors, Electrical. 

5940 ................................................................................... Lugs, Terminals and Terminal Strips. 

5961 ................................................................................... Semi-Conductor Devices and Associated Hardware. 


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TABLE 3—FSCS IN SCC A > OR = $50 EXCLUDED FROM BATCHLOTTING—Continued 

FSC Description 

6530 ................................................................................... Hospital Furniture, Equipment, Utensils and Supplies. 

6680 ................................................................................... Liquid/Gas Flow, Liquid Level/Mechanical Motion Measuring Instruments. 

7105 ................................................................................... Household Furniture. 

7195 ................................................................................... Miscellaneous Furniture and Fixtures. 

9999 ................................................................................... Miscellaneous Items (cannot conceivably be classified anywhere else). 

(vi) Notwithstanding the information 

in paragraph (g)(5)(v) of this section, 

RTD customers may order individual 

items from a batchlot. DLA Disposition 

Services sites will honor these requests. 

Otherwise, items will not be removed 

from batchlots. 

(vii) DLA Disposition Services sites 

are responsible for ensuring official 

receipt copies are returned accessible to 

generating activities (electronically or 

hard copy). They must provide tracing 

assistance for any DTID receipt copy not 

received by the generating activity. 

(h) Identification, barcoding, and 

storage requirements. (1) Usable 

property, transferred to a DLA 

Disposition Services site or received in 

original location, must be clearly 

identified with barcode labels. The 

labels will be affixed to property from 

time of receipt (physically or receipt-inplace) until final removal and will 

correspond with accountability records. 

For property stored at DLA Disposition 

Services sites, signs will be placed 

appropriately to identify property status 

(RTD, DEMIL, etc.) and to minimize 

confusion to customers. 

(2) Scrap transferred to a DLA 

Disposition Services site or received in 

original location will be accumulated 

and segregated to prevent commingling 

basic material content. 

(i) For use in providing the basic 

material content information, scrap will 

be identified using the standard waste 

and scrap classification code (SCL) 

contained in the DAISY codes and terms 

pocket reference located at the DLA 

Disposition Services Web page (https:// 

www.dispositionservices.dla.mil/

publications/index.shtml). The pocket 

reference is formatted alphabetically. 

(ii) Barcoded labels are not required 

for scrap accumulations. However, both 

the generating activity and DLA 

Disposition Services accounting records 

must correspond with the scrap 

identifications and weights. DLA 

Disposition Services must use the SCL 

in its DAISY accounting records. 

(iii) During storage, DLA Disposition 

Services will place appropriate signs to 

identify types of scrap and maximize 

visibility to customers. 

(i) Accounting for property at the DLA 

Disposition Services site. (1) Correct 

accounting for all excess property, 

surplus property, and FEPP by both the 

Military Departments and DLA 

Disposition Services sites is critical. 

Non-compliance can result in property 

being misappropriated with potentially 

severe consequences. Proper accounting 

impacts resourcing (money, equipment, 

and personnel) decisions. 

(2) Accountability records will be 

maintained in auditable condition, 

allow property to be traced from receipt 

to final disposition and cleared from the 

ICS, when appropriate. DLA Disposition 

Services’ accountability system will 

incorporate the requirements of DoD 

Directive 8320.02, 15 CFR parts 730 

through 799, and DLA Regulation 

7500.1, ‘‘Accountability and 

Responsibility for Government Property 

in the Possession of the Defense 

Logistics Agency,’’ (DLA Regulation 

7500.1 is available at: http://

www.dla.mil/issuances/. 

(3) If a contingency operation requires 

a deviation from standard accountability 

practices, Military Departments and 

DLA Disposition Services sites will 

maintain spreadsheets, listings, or the 

most appropriate method of temporary 

accountable records. When the 

contingency operation reaches a point 

where prescribed accountability 

practices can be resumed, the temporary 

documents will be used for establishing, 

updating, or adjusting official 

accountability records (both Military 

Departments and DLA Disposition 

Services sites) as applicable. 

(4) DLA Disposition Services’ 

property accountability records will be 

maintained in sufficient detail to 

support required sales proceeds 

reimbursements. 

(i) Materiel with different fund 

citation appropriations may be 

combined in sale lots; however, DLA 

Disposition Services accountability 

systems will retain individual 

disbursement information to allow 

appropriate reimbursements to local or 

departmental accounts, as designated by 

DoD 7000.14–R, Department of Defense 

Financial Management Regulations 

(FMRs): Volume 11a, ‘‘Reimbursable 

Operations, Policy and Procedures’’; 

Chapter 5, ‘‘Disposition of Proceeds 

from Department of Defense Sales of 

Surplus Personal Property’’, (available 

at http://comptroller.defense.gov/fmr/

current/11a/Volume_11a.pdf). 

(ii) Non-reimbursable scrap may be 

physically combined with other scrap 

when considered advantageous; 

however, accountability records will be 

maintained to substantiate pro-rating of 

the proceeds. 

(5) Usable and scrap determination 

and accounting are calculated as 

follows: 

(i) When property not requiring 

DEMIL is assigned SCCs F, G, or H, the 

DLA Disposition Services site may 

determine property has scrap value only 

and classify and process as ‘‘scrap upon 

receipt.’’ 

(ii) Personal property assigned other 

SCCs, which the DLA Disposition 

Services site determines to only have 

basic materiel content value, may be 

downgraded to scrap after the end-ofscreening date (ESD) and completion of 

any required DEMIL. 

(iii) DLA Disposition Services sites 

will minimize changing or challenging 

SCCs and downgrades upon receipt. 

(iv) When an item has been offered on 

a competitive sale and no bid has been 

received, or bids received are less than 

the scrap value of the item, the property 

may be downgraded to scrap and reoffered for sale as scrap. This includes 

property returned to a DLA Disposition 

Services site from a joint commercial 

sales partner that has been confirmed as 

mis-described or as containing only 

basic material content value. Similar 

items received within a 12-month 

period that have a history of being 

nonsalable may be downgraded to scrap 

at ESD. 

(v) When a DLA Disposition Services 

site determines obsolete printed 

materials have no RTD potential and 

only scrap market value, these items 

will be downgraded to scrap upon 

receipt. 

(vi) When end items are turned in as 

scrap and are reclaimed or disassembled 

for their usable components, the DLA 

Disposition Services site’s records will 

be adjusted to reflect the acquisition 

cost (estimated, if not known) of the 

components removed. 

(6) Scrap accounting is calculated by 

weight. 

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Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 78165 

(i) Estimated weight may be used for 

receiving scrap if scales are not 

available or if weighing is impractical. 

Disposition of scrap for sale or 

demanufacturing must be weighed to 

provide accurate accounting and 

reconciliation with the DLA Disposition 

Services accountable record. 

(ii) The acceptable degree of accuracy 

of estimation is 25 percent for property 

processed by the ton, and 10 percent for 

property processed by the pound. 

Overages and shortages discovered on 

release of property that exceed 

allowable tolerances will be adjusted. 

(iii) High value scrap must be 

weighed at the time of receipt. 

(j) Calibration and maintenance of 

weigh scales. (1) DoD activities, 

including DLA Disposition Services 

sites with scales used for receipts and 

disposition of scrap, will ensure weigh 

scales under their jurisdiction are 

maintained, repaired, and calibrated 

annually or more often if required by 

State or local laws. 

(2) Activities with scales will 

maintain a log or record of visits by 

qualified inspectors showing the date of 

the visit and, where appropriate, action 

taken to correct the accuracy of the 

scales. A signed copy of the inspector’s 

findings will be maintained. The 

activity is responsible for obtaining the 

services of a qualified scale inspector 

and requesting repair when needed. 

(k) Physical inventory accuracy. (1) 

DLA Disposition Services sites will 

conduct physical inventories. At a 

minimum, a sample inventory will be 

conducted at each DLA Disposition 

Services site annually. Inventory 

accuracy of at least 90 percent will be 

maintained for all usable property, 

except DEMIL required property, HP, 

and pilferable or sensitive property. 

Discrepancies will be corrected in 

accordance with paragraph (l) of this 

section. If sample inventories for usable 

property are less than 90 percent 

accurate, a wall-to-wall inventory will 

be conducted. 

(2) Physical inventories for DEMIL 

required property, HP, and pilferable or 

sensitive property will be conducted at 

least annually. Inventory accuracy of 

100 percent will be maintained. If less 

than 100 percent accuracy, DLA 

Disposition Services site will report the 

discrepancies in accordance with 

procedures in DoD 7000.14–R. 

(3) Usable property remaining on the 

DLA Disposition Services site account 

in excess of 6 months will be 

inventoried on a monthly basis and 

certified. 

(4) Inventory discrepancies will be 

researched as part of the inventory 

process and corrections documented as 

inventory adjustments. 

(5) DLA Disposition Services will 

provide the DLA Disposition Services 

sites with direction for maintaining and 

reconciling scrap accumulations and 

accountable records. Reconciliation will 

be performed at least monthly. 

(l) Inventory discrepancies and 

adjustments—(1) Errors before 

acceptance. Item identification, 

quantity, condition, or price data errors 

discovered before official acceptance of 

accountability will be resolved and 

corrected during receipt. 

(2) Errors after acceptance. 

Discrepancies discovered after 

acceptance of accountability; that is, 

differences between recorded balances 

and quantities on hand, will be 

processed as inventory adjustments. 

Inventory adjustment procedures are 

contained in DoD 7000.14–R, Volume 

12, Chapter 7. 

(3) Property not in DLA Disposition 

Services site custody. (i) When property 

for which a DLA Disposition Services 

site has assumed accountability, but not 

physical custody, becomes lost, 

damaged, or destroyed, the custodial 

activity will investigate the discrepancy 

and provide its findings to the DLA 

Disposition Services site. 

(ii) The DLA Disposition Services site 

will provide the custodial activity with 

requested item identification number, 

such as NSN, DTID number, or UII 

(when applicable) or copies of pertinent 

documentation for the lost, damaged, or 

destroyed item. 

(A) If the custodial activity 

determines the discrepancy is due to a 

record keeping error, it will fully 

document the error and inform the DLA 

Disposition Services site to prepare an 

inventory adjustment. 

(B) If the discrepancy is not due to a 

record keeping error, the custodial 

activity must prepare a DD Form 200, 

‘‘Financial Liability Investigation of 

Property Loss,’’ in accordance with 

criteria contained in DoD 7000.14–R, 

Volume 12, Chapter 7. 

(iii) Within 30 days after notification 

of the loss of the property, the custodial 

activity must provide the DLA 

Disposition Services site a completed 

copy of the DD Form 200 as supportive 

documentation for the DLA Disposition 

Services site to process an inventory 

adjustment. 

(m) Property disposition—(1) Packing, 

crating, and handling (PC&H). PC&H for 

DoD orders will be arranged by the DLA 

Disposition Services site in most cases. 

When property is received in place, the 

generating activity will prepare the 

property for shipment. DLA Disposition 

Services will submit payment for these 

services according to the established 

ISSA or by DLA Disposition Services 

military interdepartmental purchase 

request. 

(2) Transportation. DLA Disposition 

Services will directly fund 

transportation costs associated with 

reutilized property on each transaction. 

However, these costs are recouped as 

part of the Service-level annual billings 

for all associated disposition costs 

incurred by the services including all 

transportation costs during the year. 

That is, individual DoD units do not pay 

for reutilization transportation on each 

individual transaction, but their 

Military Service is billed on an annual 

basis. 

(n) Audits—(1) Outside command 

involvement. When it is necessary to 

obtain or confirm data on materiel 

transferred to or from disposal accounts, 

and this involves crossing command 

lines between DoD Components, the 

policy in DoD Instruction 7600.02, 

‘‘Audit Policies’’ (available at http://

www.dtic.mil/whs/directives/corres/pdf/

760002p.pdf) will apply. 

(2) Joint Service/DLA Directives used 

during audits. The DoD Components 

will maintain a clear audit trail of the 

documentation for the disposition of 

property in accordance with their 

internal issuances for audits. The 

internal issuances that govern Army, 

Navy, and Air Force are: 

(i) AR 36–2, ‘‘Audit Services in the 

Department of the Army’’ (available at 

http://www.apd.army.mil/pdffiles/r36_

2.pdf). 

(ii) SECNAVINST 7510.7F. 

(iii) Air Force Policy Directive 65–3, 

‘‘Internal Auditing’’ (available at http:// 

static.e-publishing.af.mil/production/1/

saf_fm/publication/afpd65-3/afpd65- 

3.pdf). 

§ 273.8 Donations, loans, and exchanges. 

(a) Authority and scope—(1) FMR. 

Provisions for donation of surplus 

personal property are provided in 

accordance with 41 CFR part 102–37. 

(2) Other regulations. (i) 10 U.S.C. 

2576a permits the Secretary of Defense 

to transfer certain property for use for 

State and local law enforcement 

agencies. Notwithstanding 41 CFR 

chapters 101 and 102, donations may be 

made only as authorized by law; under 

separate statutes, the Secretaries of the 

Military Departments may donate 

certain excess materiel to authorized 

recipients; through GSA, the 

Department of Defense may donate 

surplus property to authorized donees. 

Donations are subordinate to federal 

agency needs, but take precedence over 

sale or A/D. This section also contains 

guidance and procedures pertaining to 

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loans or exchanges, providing specific 

instructions to authorized donees. 

(ii) 42 U.S.C. chapter 68 authorizes 

federal assistance to States, local 

government, and relief organizations 

based on a declaration of emergency or 

major disaster. 

(iii) 10 U.S.C. 2557, 2572, 2576, and 

5576a establishes the procedures for 

organizations participating in surplus 

personal property donation programs, 

specifically the organizations discussed 

in this section. 

(3) Agreements. Technology transfer 

projects and 10 U.S.C. 2194 address 

educational partnership agreements. 

(b) Compliance with 

nondiscrimination statutes 

requirements. (1) All of the donation 

programs covered by this section must 

comply with: 

(i) 42 U.S.C. 2000a, also known as 

Title VI of the Civil Rights Act of 1964. 

(ii) 20 U.S.C. 1681, also known as 

Title IX of the Education Amendments 

of 1972. 

(iii) 29 U.S.C. 701 also known as the 

Rehabilitation Act of 1973. 

(iv) 42 U.S.C. 6101 also known as the 

Age Discrimination Act of 1973. 

(2) Any complaints alleging violations 

of these acts or inquiries concerning the 

applicability to the programs covered in 

this section will be handled by elevating 

issues through the appropriate chains of 

command and agency-to-agency dialog. 

(c) Donations of surplus personal 

property—(1) General. (i) Surplus 

property is allocated by GSA 

considering the factors listed in 41 CFR 

chapters 101 and 102. 

(ii) GSAXcess® is available for State 

agencies for surplus property (SASPs) 

and donees, when authorized, to search 

for and select property for donation. 

Screening is accomplished during the 

timeframes specified in § 273.15. 

(iii) Upon allocation, GSAXcess® will 

generate the SF 123, ‘‘Transfer Order 

Surplus Personal Property’’ to the 

agency for approval and return. DoD 

orders for DLA Disposition Services 

assets with a UMMIPS Priority 

Designator within Issue Priority Group 1 

(Priorities 01–03), and non-mission 

capable supply (NMCS) orders will be 

submitted to DLA Disposition Services 

as an exception. DLA Disposition 

Services will immediately fill these 

orders and notify the GSA area property 

officer for the Front End Data System 

record adjustment. Priorities 4–15 

orders received during this timeframe 

will not be honored. 

(2) Accessing GSAXcess®. GSAXcess®

screening requires an access code from 

GSA. To learn about GSAXcess® and 

obtain access code information, see 

https://gsaxcess.gov/. 

(3) Release of Government liability. 

On a case-by-case basis, ‘‘hold 

harmless’’ clauses to protect the United 

States may be used, depending on the 

types and quantities of property. Such 

provisions must be written in 

coordination with appropriate DoD 

Component legal counsel. 

(4) Reporting. DLA will provide GSA 

a report of property transferred to nonfederal recipients. The report: 

(i) Will be submitted to GSA through 

the GSA on-line Personal Property 

Reporting Tool within 90 calendar days 

after the close of each fiscal year. The 

Personal Property Reporting Tool is 

located at https://gsa.inl.gov/property. If 

for any reason the report is delayed, the 

organization who possesses the property 

should contact the GSA Personal 

Property Asset Management (MTA), 

1800 F Street NW., Washington, DC 

20405, with an explanation of the delay. 

The report must cover personal property 

disposed during the fiscal year in all 

areas within the 50 United States, the 

District of Columbia, Puerto Rico, 

American Samoa, Guam, the Northern 

Mariana Islands, the Federated States of 

Micronesia, the Marshall Islands, Palau, 

and the U.S. Virgin Islands. Negative 

reports are required. 

(ii) Must reference Interagency Report 

Control Number 0154–GSA–AN and 

contain: 

(A) Name of the non-Federal 

recipient. 

(B) Zip code of the recipient. 

(C) Explanation as to the type of 

recipient (e.g., contractor, grantee, 

cooperative, Stevenson-Wydler 

recipient, licensee, permittee). 

(D) Appropriate 2-digit FSC group. 

(E) Total original acquisition cost of 

all personal property furnished to each 

recipient. 

(F) Appropriate comments as 

necessary. 

(G) IUID or UII equivalent. 

(5) Donation restrictions. (i) All 

surplus property (including property 

held by working capital funds 

established under 10 U.S.C. 2208 or in 

similar funds) is available for donation 

to eligible recipients, in accordance 

with authorizing laws, except for 

property in the categories in paragraphs 

(c)(5)(i)(A) through (M) of this section: 

(A) Agricultural commodities, food, 

and cotton or woolen goods determined 

from time to time by the Secretary of 

Agriculture to be commodities requiring 

special handling with respect to price 

support or stabilization. 

(B) Controlled substances. 

(C) Foreign purchased property (as 

identified in DoD 5105.38–M). 

(D) Naval vessels of the following 

categories: Battleships, cruisers, aircraft 

carriers, destroyers, and submarines. 

(E) NAF property. 

(F) MLI, except in compliance with 

DoD Instruction 4160.28, DoD 4160.28– 

M Volumes 1–3, and DoD Instruction 

2030.08. 

(G) CCLI, except in compliance with 

15 CFR parts 730 through 774 and DoD 

Instruction 2030.08. 

(H) Property acquired with trust funds 

(e.g., social security trust funds). 

(I) Records of the Federal 

Government. 

(J) Vessels of 1,500 gross tons or more, 

excluding specified Naval combat 

vessels, which the Maritime 

Administration determines to be 

merchant vessels or capable of 

conversion to merchant use (as defined 

in 41 CFR chapters 101 and 102). 

(K) Items as may be specified from 

time to time by the GSA Office of 

Government-wide Policy. 

(L) Property that requires 

reimbursement upon transfer (such as 

abandoned or other unclaimed property 

that is found on premises owned or 

leased by the Government). 

(M) Hazardous waste. 

(N) Other Hazardous property and 

hazardous materials not otherwise 

identified in the categories in 

paragraphs (c)(5)(i)(A) through (M) of 

this section that is not serviceable, for 

example supply condition codes (SCCs) 

listed in DLM 4000.25–2 as SCC E for 

unserviceable (limited restoration) 

materiel, SCC F for unserviceable 

(reparable) materiel, and SCC G for 

unserviceable (incomplete) materiel, 

SCC H for unserviceable (condemned) 

materiel, SCC P for unserviceable 

(reclamation) materiel. 

(ii) Certain items require special 

processing for donations (in accordance 

with the requirements in DoD 5105.38– 

M. DoD Manual 4160.21, Volume 4 

provides the procedures. 

(6) Returnable DoD property. (i) As 

restrictions are imposed on certain 

commodities, the Department of 

Defense, through GSA, will request a 

return of these items and provide 

guidance. 

(ii) Known restrictions require written 

certification and signature by the 

recipient at the time of removal. 

(7) Allocating surplus property. GSA 

directly allocates property to: 

(i) FAA. Public airports are managed 

through the FAA. 

(A) The FAA Administrator has the 

responsibility for selecting property 

determined to be either: 

(1) Essential, suitable, or desirable for 

the development, improvement, 

operation, or maintenance of a public 

airport, as defined in 49 U.S.C. 47102. 

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(2) Reasonably necessary to fulfill the 

immediate and foreseeable future needs 

of the grantee for the development, 

improvement, operation, or 

maintenance of a public airport. 

(3) Needed to develop sources of 

revenue from non-aviation businesses at 

a public airport. 

(B) Public airports will secure 

advance approval of donations by 

obtaining signatures of the applicable 

FAA airport branch chief and by the 

GSA regional office on the order (SF 

123). 

(ii) United States Agency for 

International Development. 

(iii) SASPs. (A) SASPs are responsible 

for determining eligibility of applicants; 

fairly and equitably distributing donated 

property to eligible donees within their 

State; assuring donees comply with 

donation terms and conditions; and 

when requested by donee, arranging for 

or providing shipment of property from 

the federal holding agency, e.g., DLA 

Disposition Services sites, directly to 

the recipients. 

(B) The SASP donates property to 

public and eligible nonprofit 

organizations. Types of eligible 

recipients are: 

(1) Medical institutions, hospitals, 

clinics, and health centers. 

(2) Drug abuse and alcohol centers. 

(3) Providers of assistance to homeless 

individuals. 

(4) Providers of assistance to 

impoverished families and individuals. 

(5) Schools, colleges, and universities. 

(6) Schools for the mentally and 

physically disabled. 

(7) Child care centers. 

(8) Radio and television stations 

licensed by the Federal 

Communications Commission as 

educational radio or television stations. 

(9) Museums attended by the public. 

(10) Libraries providing the resident 

public (community, district, State, or 

region) with free access. 

(11) State and local government 

agencies, or nonprofit organizations or 

institutions. 42 U.S.C. 3015 and 3020 

authorizes donations of surplus 

property to State and local government 

agencies, or nonprofit organizations or 

institutions that receive federal funding 

to conduct programs for older 

individuals. 

(12) States and territories. 

(13) SEAs. The Deputy Secretary of 

Defense is authorized to designate new 

SEAs. Table 4 of this section includes 

the list of approved SEAs. SEA 

nominations from the Military 

Departments or Defense Agencies 

should be forwarded to the Office of the 

Assistant Secretary of Defense for 

Logistics and Materiel Readiness, 3500 

Defense Pentagon, Washington, DC 

20301–3500 

(14) Educational activities that are of 

special interest to the Military Services 

may receive surplus DoD property in 

accordance with 41 CFR chapter 101. 

TABLE 4—SEA NATIONAL OFFICES

American National Red Cross, 17th and D Streets NW., Washington, 

DC 20006.

Armed Services YMCA of the USA, 6225 Brandon Avenue, Suite 215, 

Springfield, VA 22150–2510. 

Big Brothers/Big Sisters of America, 230 North 13th Street, Philadelphia, PA 19107.Boys and Girls Clubs of America, 771 First Avenue, New York, NY 

10017. 

Boy Scouts of America, 1325 Walnut Hill Lane, Irving, TX 75038–3096. Camp Fire, Inc., 4601 Madison Avenue, Kansas City, MO 64112–1278. 

The Center for Excellence In Education, 7710 Old Springhouse Road, 

McLean, VA 22102.

Girl Scouts of America, 420 5th Avenue, New York, NY 10018–2702. 

Little League Baseball, Inc., Williamsport, PA 17701 .............................. National Association for Equal Opportunity In Higher Education, 2243 

Wisconsin Avenue, NW Washington, DC 20007. 

National Ski Patrol System, Inc., 133 South Van Gordon Street, Suite 

100, Lakewood, CO 80228.

U.S. Naval Sea Cadet Corps, 2300 Wilson Boulevard, Arlington, VA 

22201. 

United Service Organizations, Inc., 601 Indiana Avenue, Washington, 

DC 20004.

United States Olympic Committee, 1 Olympic Plaza, Colorado Springs, 

CO 80909–5760. 

National Director, Young Marines of the Marine Corps, P.O. Box 

70735, Southwest Station, Washington, DC 20024–0735.

President—Board of Directors Marine Cadets of America, USN & MC 

Reserve Center, Fort Nathan Hale Park, New Haven, CT 06512– 

3694. 

Corporation for the Promotion of Rifle Practice and Firearms Safety, 

Erie Industrial Park, Building 650, P.O. Box 576, Port Clinton, OH 

43452.

Marine Corps League, P.O. Box 3070, Merrifield, VA 22116. 

(C) High schools that host a Junior 

Reserve Officer Training Corps (JROTC) 

Unit or a National Defense Cadet Corps 

Unit, Naval Honor Schools, and State 

Maritime Academies should contact 

their sponsoring Military Department 

regarding donations. 

(D) SEAs must maintain separate 

records that include: 

(1) Documentation verifying that the 

activity has been designated as eligible 

by the Department of Defense to receive 

surplus DoD property. 

(2) A statement designating one or 

more donee representatives to act for the 

SEA in acquiring property. 

(3) A listing of the types of property 

that are needed or have been authorized 

by the Department of Defense for use in 

the SEA program. 

(8) Identification of screeners. (i) 

SASP personnel or donee personnel 

representing a SASP must have a valid 

screener-identification card (GSA 

Optional Form 92, screener’s 

identification, or other suitable 

identification approved by GSA) before 

screening and selecting property at 

holding agencies. However, SASP or 

donee personnel do not need a screener 

ID card to inspect or remove property 

previously set aside or approved by 

GSA for transfer. 

(ii) Screeners, having identified 

themselves and indicated the purpose of 

their visit, will sign the Visitor or 

Vehicle Register and be allowed to 

complete donation screening only. 

(9) Screening and ordering procedures 

for DLA Disposition Services property. 

(i) Section 273.15(c) outlines the 

screening timeframes for ZI surplus and 

FEPP that has reached the surplus 

release date. 

(ii) When a prospective donee 

contacts a DLA Disposition Services site 

or military installation regarding 

possible acquisition of surplus property, 

the individual or organization will be 

advised to contact the applicable SASP 

for determination of eligibility and 

procedures to be followed. The DLA 

Disposition Services sites will assist 

interested parties regarding availability 

of surplus property. 

(iii) SASP contacts may be located on 

the GSA Web site at http://www.gsa.gov/ 

portal/content/100851. 

(iv) Prospective donees must go to 

GSAXcess® to gain access, shop, and 

select property. 

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(A) Once GSA allocates property, the 

SASP will receive an SF 123. The donee 

should then sign and return the SF 123 

to the appropriate GSA office. 

(B) GSA will then approve the SF 123 

by signature, return the SF 123 to the 

SASP, and notify DLA Disposition 

Services with an electronic order. 

(v) Procedures for return of surplus 

FEPP to the United States for ultimate 

donation are covered in Enclosure 4 of 

DoD Manual 4160.21, Volume 2. 

(vi) DLA Disposition Services sites 

will require recipients of HM to sign a 

certification statement as shown in 

Figure 2 of this section. 

(A) After allocation and approval, if 

the customer no longer wants or needs 

the property, the customer is required to 

notify the SASP, GSA, and the DLA 

Disposition Services site. 

(B) GSA may reallocate the property 

if there is an existing request by another 

potential recipient. If the property is 

reallocated, cancellation of the existing 

request will be transmitted by GSA and 

another transmission to DLA 

Disposition Services is required. 

(C) If the property is not reallocated, 

GSA must cancel the existing MRO. 

(10) Customer removal of ordered 

property. (i) All transportation 

arrangements and costs are the 

responsibility of the SASP or designated 

donee. The DLA Disposition Services 

site may not act as agent packager or 

shipper. Until release, each holding 

activity is responsible for the care and 

handling of its property. 

(ii) The SASP or designated donee 

will only pay for direct costs of care and 

handling incurred in the actual packing, 

crating, preparation for shipment, and 

loading. The price will be the actual or 

carefully estimated costs incurred by 

DoD traffic management activities for 

labor, material, or services used in 

donating the property. 

(iii) Advance payment for care and 

handling costs will normally be 

required; however, State and local 

governmental units may be exempted 

from this requirement and authorized to 

make payment within 60 days from date 

of receipt of property. Advance payment 

may be required in any case where 

prompt payment after billing has been 

unsatisfactory. 

(iv) Donees must schedule removal of 

property with the DLA Disposition 

Services site. Upon arrival, the 

individual must provide identification 

and must sign the DLA Disposition 

Services Visitor or Vehicle Register, 

indicating the purpose of the visit. 

(v) The individual must provide an 

approved SF123 as authorization for 

removal. 

(vi) DLA Disposition Services sites 

will release surplus property to 

authorized donees upon receipt of a 

properly completed and approved SF 

123 or MRO. 

(d) Special donations (gifts), loans, 

and exchanges outside the FMR—(1) 

Compliance. The DoD Components: 

(i) Comply with the specific governing 

statute for the type of property and 

ensure the limitations of the governing 

statute are observed. In accordance with 

10 U.S.C. 2572 and DoD issuances, the 

Secretary of a Military Department or 

the Secretary of the Treasury is 

permitted to donate, lend, or exchange, 

as applicable, without expense to the 

United States, books, manuscripts, 

works of art, historical artifacts, 


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drawings, plans, models and 

condemned or obsolete combat materiel 

that are not needed by the Military 

Services. 

(ii) Establish supplementary 

procedures governing loans, donations, 

and exchanges. 

(iii) May donate, loan or exchange 

items as identified in paragraph (d)(1) of 

this section, if the special donation, 

loan, or exchange action occurs prior to 

transfer to DLA Disposition Services for 

disposition. It is not authorized after 

property has been officially declared 

excess and transferred to DLA 

Disposition Services. 

(iv) May exchange assets for: 

(A) Similar items; 

(B) Conservation supplies, equipment, 

facilities, or systems; 

(C) Search, salvage, or transportation 

services; 

(D) Restoration, conservation or 

preservation services; or 

(E) Educational programs when it 

directly benefits the historical collection 

of the DoD Components. 

(v) May not make an exchange unless 

the monetary value of the property 

transferred or services provided to the 

United States under the exchange is not 

less than the value of the property 

transferred by the United States. The 

Secretary concerned may waive this 

limitation in the case of an exchange for 

property in which the Secretary 

determines the item to be received by 

the United States will significantly 

enhance the historical collection of the 

property administered by the Secretary. 

(vi) Will not incur costs in connection 

with loans or gifts. However, the DoD 

Component concerned may, without 

cost to the recipient, DEMIL, prepare, 

and transport within the CONUS items 

authorized for donation to a recognized 

war veterans’ association in accordance 

with DoD 4160.28–M Volumes 1–3 if 

the DoD Component determines this can 

be accomplished as a training mission, 

without additional expenditures for the 

unit involved. 

(vii) Will maintain official records of 

all DoD materiel loaned including 

physical inventory, record 

reconciliation, and management 

reporting specified in the inventory 

management procedures in DoD Manual 

4140.01, ‘‘DoD Supply Chain Materiel 

Management Procedures’’ (available at 

http://www.dtic.mil/whs/directives/

corres/pdf/414001m/414001m_

vol01.pdf). Verify yearly that property is 

being used for approved purposes, is 

being maintained and protected 

according to the agreement, and that the 

recipient organization still desires to 

retain the property. The DoD 

Component may perform this annual 

check by any method that provides 

reasonable assurance the recipient 

organization is fulfilling its 

responsibilities. DoD Components may 

request assistance from qualified DoD 

organizations. 

(2) Organizations authorized to 

receive loans and donations. (i) A 

municipal corporation. 

(ii) A soldiers’ monument association. 

(iii) An incorporated museum or 

memorial that is operated by a historical 

society, a historical institution of a State 

or foreign nation, or a nonprofit military 

aviation heritage foundation or 

association incorporated in a State. 

(iv) An incorporated museum that is 

operated and maintained for 

educational purposes only and the 

charter of which denies it the right to 

operate for profit. 

(v) A post of the Veterans of Foreign 

Wars of the United States or the 

American Legion or a unit of any other 

recognized war veterans’ association. 

(vi) A local or national unit of any war 

veterans’ association of a foreign nation 

recognized by the national government 

of that nation (or by the government of 

one of the principal political 

subdivisions of that nation). 

(vii) A post of the Sons of Veterans 

Reserve. 

(3) Requirements for veterans’ 

organizations. To qualify, veterans’ 

organizations must be: 

(i) Sponsored by a Military 

Department. 

(ii) Evaluated based on its size, 

purpose, the type and scope of services 

it renders to veterans, and composed of 

honorably discharged American 

soldiers, sailors, airmen, marines, or 

coastguardsmen. 

(4) Requirements for museums. To 

qualify, museums must: 

(i) Meet State (or equivalent foreign 

national) criteria for not-for-profit 

museums. 

(ii) Have an existing facility suitable 

for the display and protection of the 

type of property desired for loan or 

donation. If the requester has a facility 

under construction that will meet those 

requirements, interim eligibility may be 

granted. 

(iii) Have a professional staff that can 

care for and accept responsibility for the 

loaned or donated property. 

(iv) Have assets that, in the 

determination of the loaning or donating 

service, indicate the capability of the 

loaner and the borrower to provide the 

required care and security of historical 

property. 

(5) Eligibility determination. The DoD 

Components will determine the 

eligibility of organizations for gifts and 

loans. The DoD Components may 

establish eligibility requirements 

dependent upon the unique nature of 

the specific historical item; however, 

the minimum requirements are: 

(i) Limit donations, loans, or 

exchanges to property stipulated by 10 

U.S.C. 2557, 2572, 2576, and 2576a. 

Except for relevant records for aircraft 

and associated engines and equipment 

(unless authorized under DoD 4160.28– 

M Volumes 1–3 and DoD Instruction 

2030.08), government records may not 

be released. 

(ii) Approve the loan, donation, or 

exchange; process requests for 

variations from the original agreement; 

and maintain official records of all 

donation, loan, and exchange 

agreements. The approval of exchanges 

may be delegated at the discretion of the 

Secretary concerned, and is encouraged 

for low-dollar transactions. 

(iii) Establish controls for determining 

compliance by the recipient 

organization with the display, security, 

and usage criteria provided in the loan 

and donation agreements. 

(iv) Provide disposition instructions 

to the recipient organization when 

loaned or donated property is no longer 

needed or authorized for continued use. 

(v) Establish conditions for making 

donations, loans, or exchanges. 

(vi) Establish a process (e.g., a council 

or other means suitable to the loan and 

donation organization) to review and 

approve proposed exchanges 

incorporating legal and financial review 

independent of the museum involved. 

Personnel directly involved in museum 

operations will not act as sole approving 

authority for any exchange transactions. 

(vii) Ensure that correspondence 

regarding loans, donations, or exchanges 

is signed by individuals authorized to 

obligate their organization. 

(viii) Ensure appropriate DEMIL of the 

property as prescribed in DoD 4160.28– 

M Volumes 1–3 before release. If 

standard DEMIL criteria cannot be 

applied without destroying the display 

value, specific DEMIL actions (such as 

aircraft structural cuts) may be delayed. 

The recipient organization must agree to 

assume responsibility for the property 

DEMIL action, at no cost to the 

Government, when the item is no longer 

desired or authorized for display 

purposes. The recipient organization 

may also return the property to the 

Government via the donating Military 

Department for full DEMIL action. 

(ix) Loan, donate, or exchange 

property on an ‘‘as is, where is’’ basis 

and ensure that the recipient 

organization agrees to pay all costs 

incident to preparation, handling, and 

movement of the property. Military 

Department contact points for the loan, 

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donation, or exchange of property are at 

Table 5 of this section. 

(A) Property may not be repaired, 

modified, or changed at government 

expense over and above normal 

preparation for handling and movement, 

even if reimbursement is offered for 

services rendered. 

(B) Property may not be moved at 

government expense to a recipient’s 

location or to another location closer to 

the recipient to prevent or lessen the 

recipient organization’s processing or 

transportation costs. 

(C) No charge will be made for the 

property itself, but all physical 

processing of the property for the loan 

or donation will be the responsibility of 

the recipient organization. The recipient 

organization will pay all applicable 

charges before release of the property. 

TABLE 5—MILITARY DEPARTMENT CONTACT POINTS FOR LOAN, DONATION, OR EXCHANGE OF PROPERTY

ARMY: (all commodities) 

Commander 

U.S. Army Tank Automotive and Armament Command 

ATTN: AMSTA–IM–OER 

Warren, MI 48397–5000 

E-mail: donations@cc.tacom.mil 

Telephone: 1–800–325–2920 extension 48469 

NAVY: 

Navy and Marine Corps aircraft, air launched missiles, aircraft engines, and aviation related property: 

Commanding Officer 

NAVSUP Weapon Systems Support 

ATTN: Code–03432–06 

700 Robbins Ave. 

Philadelphia, PA 19111–5098 

Obsolete or condemned Navy vessels for donation as memorials; Navy major caliber guns and ordnance; and shipboard materiel: 

Commander 

ATTN: NAVSEA–OOD, NC 

Naval Sea Systems Command 

2531 Jefferson Davis Highway 

Arlington, VA 22242–5160 

AIR FORCE: 

Air Force aircraft, missiles or any other items authorized for donation for display purposes to a museum recipient: 

NMUSAF/MUX 

1100 Spaatz St. 

Wright-Patterson AFB, OH 45433–7102 

The USAF Museum operates a loan program only. Donations are not offered. 

Any other Air Force item authorized for donation for display purposes (to recipients other than a museum): 

HQ AFMC/A4RM 

4375 Chidlaw Rd., Building 262 

Wright-Patterson AFB, OH 45433–5006 

MARINE CORPS: 

Marine Corps assault amphibian vehicles (to recipients other than a museum): 

Commandant of the Marine Corps 

ATTN: LPC–2 

HQ U.S. Marine Corps 

3000 Marine Corps, Pentagon, RM 2E211 

Washington, DC 20350 

Marine Corps historical property (all other inquiries): 

Commandant of the Marine Corps 

ATTN: History and Museum Division (HD) 

Marine Corps Historical Center 

1254 Charles Morris Street SE 

Washington Navy Yard, DC 20374–5040 

U.S. Coast Guard 

For U.S. Coast Guard historical assets contact COMDT (CG–09224) at mail stop 7031: 

Commandant (CG–09224) 

U.S. Coast Guard Headquarters, Douglas A. Munro Building 

2703 Martin Luther King Jr. Ave., South East, Stop 7031 

Washington, DC 20593–7031 

For all other assets contact Commandant (CG–844) at mail stop 7618: 

Commandant (CG–844) 

U.S. Coast Guard Headquarters, Douglas A. Munro Building 

2703 Martin Luther King Jr. Avenue, South East, Stop 7618 

Washington, DC 20593–7618 

(x) Record assets on property 

accountability records before they are 

loaned, donated, or exchanged. 

(xi) Coordinate with the DoS before a 

donation, loan, or exchange is 

formalized with a foreign museum. 

(xii) Ensure an official authorized to 

obligate the organization signs a 

certificate of assurance, as shown at 

Figure 3 of this section. 

BILLING CODE 5001–06–P 

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(xiii) Ensure proper documentation is 

finalized in accordance with DoD 

4160.28–M Volumes 1–3 before the release of any property to an authorized 

recipient. 


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Figure 3. Sample Certificate of Assurance 

For Military Department Use 

hereinafter called "Applicant-Recipient" (name of applicant) 

Hereby agrees that in compliance with section 200la of Title 42, USC, section I of Title 40, 

U.S.C., as amended, and section 701 et seq. of Title 29, U.S.C., as amended, no person will, 

on the ground of race, color, national origin, sex, or handicap, be excluded from participation 

in, be denied the benefits of, or be otherwise subjected to discrimination under any program 

or activity for which the Applicant-Recipient receives a donation from the ______ _ 

____________ and applicable Military Department. 

Hereby 

Gives assurance that it will immediately take any measures necessary to effectuate this 

agreement. 

This agreement will continue in effect during the time the Applicant-Recipient retains 

ownership, possession, or control ofthe donated property. Further, the Applicant-Recipient 

agrees and assures that its successors or assigns will be required to give an assurance similar 

to this assurance as a condition precedent to acquiring any right, title, or interest in and to any 

of the property donated herein. 

This assurance is given in consideration of and for the purpose of obtaining donation of 

federally owned property pursuant to [cite applicable statute] consisting of the following 

items: 

[Quantity and description of donated property. Use additional sheet if space is not adequate] 

The Applicant-Recipient recognizes and agrees that such Federal donation will be made in 

reliance on the representations and agreements made in this assurance, and that the United 

States will have the right to seek judicial enforcement of this assurance. 

This assurance is binding on the Applicant-Recipient, its successors, transferees, and 

assignees, and the person or persons whose signature appears below are authorized to sign 

this assurance on behalf of the Applicant-Recipient. 

By 

President, Chairman of the Board, or comparable authorized official 

Address: 
78172 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

(A) Use the standard loan agreement 

in the format prescribed by Figure 4 of 

this section or a similar document 

providing the same data for 

accomplishing property loans. 


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Figure 4. Sample Standard Loan Agreement 

For Military Department Use 

By this agreement, made as of [insert date] between the United States of 

America, hereinafter called "the Government," represented by 

[insert name and title of government representative] 

and , called "the Borrower" incorporated and operating under the 

laws of the State of and located at 

--------------------------------------;and, 

pursuant to section 2572 of Title 10, U.S.C., the government hereby loans to 

________ the following property: for the period 

commencing [insert date] and ending [insert date] with an option for annual renewal. 

The Borrower has applied in writing by letter dated [insert date]for the loan of the above 

property, and hereby agrees to accept it on an "as is where is" basis, to be responsible for 

all arrangements and to assume and pay all costs, charges and expenses incident to the 

loan of this property, including the cost of preparation for transportation from to 

___ ,of disassembly, packing, crating, handling, transportation, and other actions 

incidental to the movement of the loaned property to the Borrower's location, [location of 

property (destination)]. 

The Borrower will obtain no interest in the loaned property by reason of this agreement 

and title will remain in the lender at all times. 

The Borrower agrees to use the loaned property in a careful and prudent manner, not, 

without prior permission of the government, to modify it in any way which would alter 

the original form, design, or the historical significance of said property, to perform 

routine maintenance so as not reflect discredit on the government, and to display and 

protect it according to the instructions set forth in Table[#], incorporated herewith and 

made part of the loan agreement. 

The Borrower agrees to accept physical custody of the property within [period of time], 

after execution of this agreement, to receipt to the government for said property on 

assuming custody of it to place it on exhibit within [period of time] , and to report 

annually to the Government on the condition and location of the property. 

The Borrower agrees not to use the loaned property as security for any loan, not to sell, 

lease, rent, lend, or exchange the property for monetary gain or otherwise under any 

circumstances without the prior written approval of the lender. 
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The Borrower agrees to indemnify, hold harmless, and defend the Government from and 

against all claims, demands, action, liabilities, judgments, costs, and attorney's fees, 

arising out of claims on account of, or in any manner predicated upon personal injury, 

death, or property damage caused by or resulting from possession or use of the loaned 

property. 

The Borrower agrees to allow the authorized Department of Defense representatives 

access to the Borrower's records and facilities to assure accuracy of information provided 

by the Borrower and compliance with the terms of this loan agreement. 

The Borrower agrees to return said property to the government on termination of this loan 

agreement or earlier, if it is determined that the property is not required, at no expense to 

the government. 

The failure of the Borrower to observe any of the conditions set forth in the loan 

agreement and the Table (s) thereto will be sufficient cause of the Government to 

repossess the loaned property. Repossession of all or any part of the loaned property by 

the government will be made at no cost or expense to the government; the Borrower will 

defray all maintenance, freight, storage, crating, handling, transportation, and other 

charges attributable to such repossession. 

The [insert "donee" or "borrower" as applicable depending upon the document type, i.e., 

conditional deed or gift of standard loan agreement, respectively] certifies they have read, 

understand and acknowledge that concealing a material fact and /or making a fraudulent 

statement in dealing with the Federal government may constitute a violation of section 

1001 ofTitle 18, U.S.C. 

Executed on behalf of the government this __ day of ____ , 20 __ , 

at. ____ _ 

United States of America: 

By 

Title 

Agency: 

Address: 
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The Borrower, through its authorized representative hereby accepts delivery of the loaned 

property subject to the terms and conditions contained in the loan agreement set forth 

above. 

Executed on behalf of the Borrower, this, ___ day of ________ , 20 __ , 

At 

Name of Borrower Organization 

By 

Title 

Address: 
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Figure 5. Sample Conditional Deed of Gift 

For Military Department Use 

This agreement made as of between the UNITED STATES OF 

AMERICA (hereinafter called the "government" or the "donor") represented 

by (hereinafter called "the donee" operating under the laws of the State 

of located at, ______________________ , 

WITNESS: 

The Secretary is authorized by section 2572 of Title 10 U.S.C. to transfer by gift or loan, 

without expense to the United States and on terms prescribed by the Secretary, any 

obsolete combat property not needed by the Department. The donee is eligible under the 

terms of section 2572 ofTitle 10 U.S.C. 

The donee has applied in writing by letter dated [insert date] for a and 

has agreed to assume and pay all costs, charges, and expenses incident to the donation 

including the cost of any required DEMIL and of preparation for transportation 

to ______________________________ __ 

The Government agrees (a) to release [item name] (b) to notify the donee of the available 

date sufficiently in advance thereof to enable the donee to make necessary arrangements 

for acceptance. 

The donee agrees to accept it on an "as is where is" basis and be responsible for all 

arrangements and costs involved in its movement. The donee will, at no cost to the 

Government, arrange and pay for disassembly, packing, crating, handling, transportation, 

and other actions as necessary for the movement of the donated property to the donee's 

location. 

The donee will use the donated property in a careful and prudent manner, and will 

maintain it and make such repairs to it as are necessary to keep it in a clean and safe 

condition so that its appearance and use will not discredit the donee. Display instructions 

are set forth in Table[#] and are incorporated and made part of this conditional deed of 

gift. The donee also agrees to not use the donated property as security for any loan, nor 

sell, lease, rent, exchange the property for monetary gain or otherwise, under any 

circumstances without the prior approval of the donor. 

The donee will indemnify, hold harmless, and defend the government from and against 

all claims, demands, action, liabilities, judgments, costs, and attorney's fees, arising out 

of claimed on account of, or in any manner predicated upon personal injury, death, or 

property damage caused by or resulting from possession or use of the donated property. 
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The donee agrees to allow the authorized representatives of the government access to the 

donee's records and facilities to assure accuracy of information provided the donor and 

compliance with the terms of this conditional deed of gift. 

Title is transferred on special condition that the [item name] will not be transferred or 

otherwise disposed of (including re-donation) without the written consent of the donor. If 

disposition by any method (including re-donation) without consent of the donor is 

attempted, title to the property is subject to forfeiture and the government may require 

return of the property by the donee or may repossess the property from whomever may 

have possession thereof and the donee will bear all expense of return and repossession as 

well as all storage costs. 

Upon the failure of the donee to observe any of the conditions set forth in the conditional 

deed of gift and Table thereto, title to the donated property will revert to and vest in the 

donor. Repossession of all or any part of the donated property by the donor will be at no 

cost or expense to the donor, and the donee will pay all maintenance freight, 

transportation, and other charges attributable to such possession. 

When the is no longer needed by the donee, disposition instructions will 

be requested from the donor. All costs of disposition will be borne by the donee. 

The [insert "donee" or "borrower" as applicable depending upon the document type, i.e., 

conditional deed or gift of standard loan agreement, respectively] certifies they have 

read, understand and acknowledge that concealing a material fact or making a fraudulent 

statement in dealing with the Federal Government may constitute a violation of section 

1001 ofTitle 18 U.S.C. 

Subject to the conditions set forth above, title to the property will vest in the donee upon 

receipt ofwritten acceptance hereof the above. 

Executed on behalf of the government this __ day of ____ ,, 20 __ , at ____ _ 

United States of America 

By 

Title: 

Agency: 

Address: 

The donee, through its authorized representative hereby accepts title to and delivery of 

the donated property subject to the conditions in the deed of gift set forth above. 

Executed on behalf of the donee, this day of , 20 , at ___ _ 
Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 78177 

(C) Accomplish property exchanges 

made under this authority by use of the 

exchange agreement in the format 

prescribed in Figure 6 of this section or 

a similar document providing the same 

data. Items may not be exchanged until 

a determination is made that the item is 

not needed for operational requirements 

by another Military Department. If the 

council or similar staff review process 

considers it unlikely the item in 

question will be needed by another 

Military Department, screening may be 

omitted. A museum of one Military 

Department may not acquire for the 

purpose of exchanging historical items 

being screened by another Military 

Department museum. 


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Figure 6. Sample Exchange Agreement 

For Military Department Use 

It is mutually agreed by and between the [Service Name] Museum, [insert address] 

(hereinafter "Museum") and [insert name] Museum, [insert address] (hereinafter 

"Exchanger"), as follows: 

Items to be exchanged by the museum: The Museum will provide to the Exchanger the 

following items: 

[insert description, stock number, serial number, etc] 

Items to be exchanged: 

[insert description, stock number, serial number, etc] 

Authority: This exchange is made under the authority of section 2572 of Title 10 U.S.C. 

Delivery: 

The items to be received by or services provided to the Museum from the Exchanger will 

be delivered or provided at the Exchanger's sole expense to [insert location]. 

They will be delivered or provided in one shipment all at the same time unless the 

Museum agrees otherwise in writing. They will be delivered or provided within 90 days 

of the date this agreement is signed. Title to the items to be received by the Museum will 

pass to the Museum at the time and point of delivery only upon written acceptance by an 

authorized representative of the Museum. 

The items to be exchanged by the Museum to the Exchanger are currently located at 

[insert location address]. They are provided on an "as is, where is, with all faults" basis 

and there are no warranties expressed or implied. The Museum specifically provides no 

warranty or other assurance as to the condition or serviceability of the property. All 

items offered in exchange by the Museum are subject to a radiation survey and the 

removal of radioactive components as well as equipment DEMIL prior to release. 

They will not be released to the Exchanger until acceptance by the Museum according to 

the above paragraph. 

Condition of items provided by the museum: The items to be exchanged by the Museum 

are offered to the Exchanger as is, where is, with all faults. The Museum provides no 

warranty or other assurance as to the condition or serviceability of the property. 

Condition of items provided by exchange: The items to be exchanged are certified to be 

original and authentic by the exchanger, to be in good condition with no significant 

damage or deterioration, or other hidden faults which would jeopardize their long-term 

preservation or their use by the Museum for display or study. 
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Consummation of agreement: This agreement will be considered consummated upon 

delivery and acceptance by both parties of all items to be provided. 

Release of liability: In consideration of this mutual exchange, the Exchanger agrees that 

it will hold the United States, its agencies, officers, employees, agents, and contractors 

harmless, indemnify, and defend them against any and all suits, actions, and claims of 

any kind whatsoever, including attorney fees, which may arise from or be the result of 

this exchange or the items. 

Warranty of title: In the case of the items provided by the Exchanger, the Exchanger 

hereby warrants that it has title to the items and that there are no liens or encumbrances 

whatever against the said items. The Exchanger will provide to the Museum 

documentary proof of ownership in a manner and of a fashion satisfactory to the Director 

of the Museum prior to delivery. 

Notices: All notices between the parties will be in writing and sent to the following 

addresses: 

For the Museum: [insert Museum name and address] 

For the Exchanger: [insert Museum name and address] 

- The Exchanger will neither assign nor otherwise transfer this Agreement without the 

written prior agreement of the Director of the Museum. 

In witness whereof, the parties or their authorized representatives have hereunto signed 

their names on the date indicated. 

For the U.S. [insert Service museum name] 

[insert signature, typed name] 

Name and title date 

Witnessed by 

Name 

Date 

For the exchanger: 

[insert signature, typed name] 

Witnessed by 
78180 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

(xiv) Avoid stockpiling condemned or 

obsolete combat materiel in anticipation 

of future exchanges. Items that cannot 

be exchanged within a 2-year period 

should be processed for disposal. 

(xv) Notify exchange recipients that 

the Department of Defense cannot 

certify aircraft, components, or parts as 

airworthy. Aircraft, components, or 

parts must be certified by the FAA as 

airworthy before being returned to flight 

usage. If available, logbooks and 

maintenance records for FSCAP must 

accompany the aircraft and FSCAP. If 

such documentation is not available, or 

if the aircraft or FSCAP have been crashdamaged or similarly compromised, the 

aircraft, components, or parts may not 

be exchanged, unless the FSCAP parts 

have been removed from the aircraft or 

component prior to the exchange. 

Waivers to this FSCAP documentation 

requirement may be considered on a 

case-by-case basis and are restricted to 

‘‘display only’’ property (not parts); 

waivers will apply only to the exchange 

of the whole aircraft, aircraft engines, 

and aircraft components. The exchange 

agreement must explicitly cite the lack 

of documentation. 

(xvi) Consider any adverse market 

impact that may result from the 

exchange of certain items. The Military 

Department should consult with outside 

organizations for market impact advice, 

as appropriate. 

(xvii) Elect to donate property without 

conditions; for example, when the 

administrative costs to the Military 

Department to perform yearly checks 

would exceed the value of the property. 

Unconditional donations are restricted 

to books, manuscripts, works of art, 

drawings, plans and models, and 

historical artifacts valued at less than 

$10,000 that do not require DEMIL (see 

Figure 7 of this section). 

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Figure 7. Sample Unconditional Deed of Gift 

For Military Department Use 

This agreement is made between the United States of America (hereinafter called the 

"government" or the "donor") and the (hereinafter called "the donee") 

operating under the laws of the State of located ____ _ 

1. The government is authorized by section 2572 of Title 10, U.S.C. to transfer by gift or 

loan, not to exceed $10,000 of section 2572 of Title 10, U.S.C., without expense to the 

United States and on terms prescribed by the Secretary, any documents and historical 

artifacts, excluding any condemned and obsolete combat materiel not needed by the 

Department. The donee is eligible under the terms of section 2572 of Title 10, U.S.C. 

2. The donee has applied in writing by letter dated [insert date] and has agreed to assume 

and pay all costs, charges, and expenses incident to the donation including the cost of any 

required demilitarization and of preparation for transportation. 

3. The government agrees to release [insert item description] and to notify the donee of 

the available date sufficiently in advance thereof to enable the donee to make necessary 

arrangements for acceptance. 

4. By this deed of gift the donor transfers title, conveys and assigns free and clear of all 

encumbrances, to the donee. 

5. The donee agrees to accept it on an "as is where is" basis and be responsible for all 

arrangements and costs involved in its removal. The donee will, at no cost to the donor, 

arrange and pay for disassembly, packing, crating, handling, transportation, and other 

actions as necessary for the removal of the donated property to the donee's location. 

6. The donor certifies that the donation is unsafe for operational use and is only suitable 

for static display. Any use of the donated property is fully and completely the 

responsibility of the donee. 

7. The donee will indemnify, save harmless, and defend the donor from and against all 

claims, demands, action, liabilities, judgments, costs, and attorney's fees, arising out of 

claims on account of, or in any manner predicated upon personal injury, death, or 

property damage caused by or resulting from possession or use of the donated property. 

8. Subject to the conditions set forth above, title to the property will vest in the donee 

upon receipt of written acceptance hereof from the donee. 

Executed on behalf of the donor, this ____ day of _____ , 20 ____ _ 

At 
78182 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

BILLING CODE 5001–06–C 

(6) Military departments loans of 

bedding. Consistent with 10 U.S.C. 

2557, the Secretary of a Military 

Department may provide bedding in 

support of homeless shelters that are 

operated by entities other than the 

Department of Defense. Bedding may be 

provided to the extent that the Secretary 

determines the donation will not 

interfere with military requirements. 

(7) Army loans to veterans’ 

organizations. (i) The Department of the 

Army, in accordance with 10 U.S.C. 

4683, may loan to recognized veterans’ 

organizations (or local units of national 

veterans’ organizations recognized by 

the U.S. Department of Veterans Affairs) 

obsolete or condemned rifles or 

cartridge belts for use by that unit for 

ceremonial purposes. Rifle loans to any 

one post, local unit, or municipality are 

limited by statute to not more than 10 

rifles. 

(ii) The Secretary of the Army, in 

accordance with 10 U.S.C. 4683 and 

Service-unique regulations prescribed 

by the Secretary, may conditionally lend 

or donate excess M–1 rifles (not more 

than 15), slings, and cartridge belts to 

any eligible organization for use by that 

organization for funeral ceremonies of a 

member or former member of the 

Military Services, and for other 

ceremonial purposes. If the loaned or 

donated properties under paragraph 

(d)(8)(i) of this section are to be used by 

the eligible organizations for funeral 

ceremonies of a member or former 

member of the Military Services, the 

Secretary may issue and deliver the 

rifles, together with the necessary 

accoutrements and blank ammunition, 

without charge. 

(8) Navy loans and donations. (i) The 

Secretary of the Navy, in accordance 

with 10 U.S.C. 7545, may donate or loan 

captured, condemned, or obsolete 

ordnance materiel, books, manuscripts, 

works of art, drawings, plans, models, 

trophies and flags, and other 

condemned or obsolete materiel, as well 

as materiel of historical interest. The 

Secretary of the Navy may donate this 

material to any State, territory, 

commonwealth, or possession of the 

United States and political subdivision 

or municipal corporation thereof, the 

District of Columbia, libraries, historical 

societies, and educational institutions 

whose graduates or students were in 

World War I or World War II. 

(A) Loans and donations made under 

this authority will be subject to the same 

guidelines for donations in accordance 

with 10 U.S.C. 2572. 

(B) If materiel to be loaned or donated 

is of historic interest, the application 

will be forwarded through the Navy 

Curator. 

(C) Donations made under this 

authority must first be referred to the 

Congress. 

(D) Donations and loans made under 

10 U.S.C. 7545 will be made with a 

conditional deed of gift (see Figure 5 of 

this section for sample wording). 

(ii) In accordance with 10 U.S.C. 

7306, the Secretary of the Navy, with 

approval of Congress, may donate 

obsolete, condemned, or captured Navy 

ships, boats, and small landing craft to 

the States, territories, or possessions of 

the United States, and political 

subdivisions or municipal corporations 

thereof, the District of Columbia, or to 

associations or corporations whose 

charter or articles of agreement denies 

them the right to operate for profit. The 

Navy restricts the use of donated vessels 


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for use in static display purposes only 

(i.e., as memorials or museums). 

(A) Applications for ships, boats, and 

small landing craft will be submitted to 

the Commander, Naval Sea Systems 

Command (NSEA 00DG), 2531 Jefferson 

Davis Highway, Arlington, VA 22240– 

5160. 

(B) Before submission of an 

application, the applicant must locate 

obsolete, condemned, or captured Navy 

ships, boats, and small landing craft 

which are available for transfer. 

(iii) Each application will contain: 

(A) Type of vessel desired, or in the 

case of combatant vessels, the official 

Navy identification of the vessel 

desired. 

(B) Statement of the proposed use to 

be made of the vessel and where it will 

be located. 

(C) Statement describing and 

confirming availability of a berthing site 

and the facilities and personnel to 

maintain the vessel. 

(D) Statement that the applicant 

agrees to maintain the vessel, at its own 

expense, in a condition satisfactory to 

the Department of the Navy, in 

accordance with instructions that the 

Department may issue, and that no 

expense will result to the United States 

as a consequence of such terms and 

conditions prescribed by the 

Department of the Navy. 

(E) Statement that the applicant agrees 

to take delivery of the vessel ‘‘as is, 

where is’’ at its berthing site and to pay 

all charges incident to such delivery, 

including without limitation 

preparation of the vessel for removal or 

tow, towing, insurance, and berthing or 

other installation at the applicant’s site. 

(F) Statement of financial resources 

currently available to the applicant to 

pay the costs required to be assumed by 

a donee. The statement should include 

a summary of sources, annual income, 

and annual expenditures exclusive of 

the estimated costs attributable to the 

requested vessel to permit an evaluation 

of funds available for upkeep of the 

vessel. In the event the applicant will 

rely on commitments of donated 

services and materials for maintenance 

and use of the vessel, such 

commitments must be described in 

detail. 

(G) Statement that the applicant 

agrees that it will return the vessel, if 

and when requested to do so by the 

Department of the Navy, during a 

national emergency, and will not, 

without the written consent of the 

Department, use the vessel other than as 

stated in the application or destroy, 

transfer, or otherwise dispose of the 

vessel. 

(H) If the applicant asserts it is a 

corporation or association whose charter 

or articles of agreement denies it the 

right to operate for profit, their 

application must also contain a copy of 

the organization’s bylaws and either: 

(1) A properly authenticated copy of 

the charter. 

(2) Certificate of incorporation. 

(3) Articles of agreement made either 

by: 

(i) The Secretary of State or other 

appropriate officials of the State under 

the laws where the applicant is 

incorporated. 

(ii) Organized or other appropriate 

public official having custody of such 

charter, certificate or articles. 

(I) If the applicant is not incorporated, 

their application must also include the 

citation of the law and a certified copy 

of the association’s charter stating it is 

empowered to hold property and to be 

bound by the acts of the proposed 

signatories to the donation agreement. 

(J) If the applicant is not a State, 

territory, or possession of the United 

States, a political subdivision or 

municipal corporation thereof, or the 

District of Columbia, the application 

must also include a copy of a 

determination by the Internal Revenue 

Service that the applicant is exempt 

from tax under the Internal Revenue 

Code. 

(K) A notarized copy of the resolution 

or other action of its governing board or 

membership authorizing the person 

signing the application to represent the 

organization and to sign on its behalf to 

acquire a vessel. 

(L) A signed copy of the assurance of 

compliance. 

(M) A statement that the vessel will be 

used as a static display only as a 

memorial or museum and no system 

aboard the vessel will be activated or 

permitted to be activated for the 

purpose of navigation or movement 

under its own power. 

(N) A statement that the galley will 

not be activated for serving meals. 

(iv) Upon receipt, the Navy will 

determine the eligibility of the applicant 

to receive a vessel by donation. If 

eligible, the formal application will be 

processed and notice of intention to 

donate presented to the Congress as 

required by 10 U.S.C. 7306, provided 

the applicant has presented evidence 

satisfactory to the government that the 

applicant has adequate financial means 

to accomplish all of the obligations 

required under a donation contract. The 

Navy will have authority to donate only 

after the application has been before the 

Congress for a period of 60 days of 

continuous session without adverse 

action by the Congress in accordance 

with 10 U.S.C. 7306. 

(v) All vessels, boats, and service 

craft, donated in accordance with 10 

U.S.C. 7306, will be used as static 

displays only for use as memorials and 

cannot be activated for the purpose of 

navigation or movement under its own 

power. Donations of vessels under any 

other authority of this section are 

subject to certain inspection and 

certification requirements. Applicants 

for vessels or service craft will be 

advised in writing by the office taking 

action on the applications that, should 

their request be approved and before 

operation of the vessel or service craft, 

one of the following stipulations will 

apply: 

(A) The donee agrees that if the vessel 

is 65 feet in length or less, it may not 

be operated without a valid certificate of 

inspection issued by the U.S. Coast 

Guard, while carrying more than six 

passengers, as defined in 46 U.S.C. 

2101(21)(B). 

(B) The donee agrees that if the vessel 

is more than 65 feet in length, it may not 

be operated without a valid certificate of 

inspection issued by the U.S. Coast 

Guard. 

(vi) In accordance with 10 U.S.C. 7546 

and subject to the approval of the Navy 

Museum Curator, the nameplate or any 

small article of a negligible or 

sentimental value from a ship may be 

loaned or donated to any individual 

who sponsored that ship provided that 

such loan or donation will be at no 

expense to the Navy. 

(9) Donation of excess chapel 

property. In accordance with 10 U.S.C. 

2580, the Secretary of a Military 

Department may donate excess personal 

property to religious organizations (as 

described in 26 U.S.C. 501), for the 

purposes of assisting such organizations 

in restoring or replacing property of the 

organization that has been damaged or 

destroyed as a result of arson or 

terrorism. The property authorized for 

donation will be limited to ecclesiastical 

equipment, furnishings and supplies 

that fall within FSC 9925, and furniture. 

(10) Disposition after use of special 

donations (gifts), loans, and exchanges. 

(i) The requirements of the recipient 

organization are: 

(A) For materiel no longer desired or 

authorized for continued use by a 

recipient organization, the Military 

Department will advise the recipient 

organization if it wants to repossess the 

property. Regardless of the 

determination made, care will be taken 

to ensure the recipient organization 

fulfills its responsibility to finalize the 

disposition action at no cost to the 

government. 

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Repossession of the property will be 

governed by the property’s historical 

significance, its potential for use in 

behalf of other requests, or its estimated 

sale value, if sold by the Department of 

Defense. Repossession of property will 

be documented; copies of the 

documentation will be retained by the 

donee and lender. 

(B) Based on type of property, its 

location, etc., it is not always feasible to 

require the physical movement of the 

property to the nearest DLA Disposition 

Services site. In these cases, the owning 

Military Department may elect to work 

with DLA Disposition Services for 

receipt and sale in-place, when 

economically feasible. 

(ii) Return of property donated to the 

Navy is subject to the approval of the 

Curator for the Department of the Navy. 

Any article, materiel, or equipment, 

including silver service, loaned or 

donated to the naval service by any 

State, group, or organization may be 

returned to the lender or donee in 

accordance with 10 U.S.C. 7546. When 

the owner cannot be located after a 

reasonable search, or if, after being 

offered the property, the owner states in 

writing that the return of the property is 

not desired, the property will be 

disposed of in the same manner as other 

surplus property. 

(e) Disaster assistance for States. 42 

U.S.C. chapter 68 allows for disaster 

assistance to States. 

(1) 42 U.S.C. chapter 68, also known 

and referred to in this rule as ‘‘The 

Stafford Act’’ authorizes federal 

assistance to States, local governments, 

and relief organizations. Upon 

declaration by the President of an 

emergency or a major disaster, the 

Stafford Act is usually invoked upon 

notification to Federal agencies and 

States by the Federal Emergency 

Management Agency (FEMA). 

(2) Excess personal property may be 

loaned to State and local governments 

for use or distribution for emergency or 

major disaster assistance purposes. Such 

uses may include the restoration of 

public facilities that have been damaged 

as well as the essential rehabilitation of 

individuals in need of major disaster 

assistance. Federal assistance under the 

Stafford Act is terminated upon notice 

to the governor of the State by the 

FEMA Associate Director, or at the 

expiration of time periods prescribed in 

FEMA regulations, whichever occurs 

first. 

(f) Academic institutions and nonprofit organizations. Educational 

partnership (or other) agreements may 

be established for the loan or donation 

of property. 

(1) Under an educational partnership 

(or other) agreement, and consistent 

with 10 U.S.C. 2194, the Secretary of 

Defense authorized the director of each 

defense laboratory to enter into one or 

more educational partnership 

agreements with U.S. educational 

institutions for the purpose of 

encouraging and enhancing study in 

scientific disciplines at all levels of 

education. The educational institutions 

will be local educational agencies, 

colleges, universities, and any other 

nonprofit institutions that are dedicated 

to improving science, mathematics, and 

engineering education. The point of 

contact is the DoD Technology Transfer 

Program Manager, Suite 1401 Two 

Skyline Place, 5203 Leesburg Pike, Falls 

Church, VA 22041–3466. 

(2) In accordance with 15 U.S.C. 

3710(i), the director of a DoD laboratory 

may directly transfer (donate) laboratory 

(e.g., scientific, research) equipment that 

is excess to the needs of that laboratory 

to public and private schools and 

nonprofit institutions in the U.S. ZI. 

(3) Determinations of property 

suitable for donation will be made by 

the head of the laboratory. Property will 

be screened within the DoD laboratory 

and scientific community prior to 

release. 

(4) Laboratories should be aware that 

some property might be 

environmentally regulated and, if 

exported, may require a U.S. DoS or 

Commerce export license, including 

certain circumstances where exports to 

foreign parties take place in the U.S. 

Moreover, some property may require 

DEMIL. Standard eligibility criteria 

must be ensured and a screening 

process for determining trade and 

security control risk are mandatory. 

§ 273.9 Through-life traceability of 

uniquely identified items. 

(a) Authority and scope—(1) Property 

accountability. The accountability of 

property will be enabled by IUID for 

identification, tracking, and 

management in accordance with DoD 

Instruction 5000.64 and DoD Directive 

8320.03, ‘‘Unique Identification (UID) 

Standards for a Net-Centric Department 

of Defense’’ (http://www.acq.osd.mil/

dpap/UID/attachments/832003p1-

20070420.pdf). DoD Component heads 

post changes to the property records for 

all transactions as required (e.g., loan, 

loss, damage, disposal, inventory 

adjustments, item modification, transfer, 

sale) pursuant to DoD Instruction 

5000.64. 

(2) IUID. IUID provides a standardsbased approach to establish a UII 

encoded in a machine-readable twodimensional data matrix barcode that 

serves to distinguish a discrete item 

from other items. Qualifying items as 

defined by DoD Instruction 8320.04, 

‘‘Item Unique Identification (IUID) 

Standards for Tangible Personal 

Property’’ (http://www.dtic.mil/whs/

directives/corres/pdf/832004p.pdf) will 

be marked with a two-dimensional Data 

Matrix barcode in accordance with 

Military Standard 130N, ‘‘Department of 

Defense Standard Practice Identification 

Marking of U.S. Military Property’’ 

(available at http://www.acq.osd.mil/

dpap/pdi/uid/docs/mil-std130N_

ch1.pdf) and registered in the IUID 

Registry. 

(3) Identification marking of U.S. 

military property. Military Standard 

130N provides the item marking criteria 

for development of specific marking 

requirements and methods for 

identification of items of military 

property produced, stocked, stored, and 

issued by or for the DoD. It also 

provides the criteria and data content 

for both free text and machine-readable 

information applications of item 

identification two-dimensional data 

matrix marking and includes the IUID 

requirements of DoD Instruction 

8320.04. 

(4) Registration of UIIs. Enclosure 3 of 

DoD Instruction 8320.04 provides 

procedures for the registration of UIIs in 

the DoD IUID Registry. 

(b) Updating the DoD IUID Registry— 

(1) Obtaining user access. Authorized 

Government users may add items, 

update, and add events to existing 

items. Generating activities and DLA 

Disposal Services can register for access 

by following the instructions for the 

Business Partner Network Support 

Environment Registration System at 

https://iuid.logisticsinformationservice.

dla.mil/BRS. 

(2) Life-cycle events for materiel 

disposition. When an item leaves DoD 

inventory, its status, or life-cycle event, 

must be changed in the DoD IUID. A 

drop-down menu in the registry 

contains the possible life-cycle events: 

Abandoned, consumed, destroyed by 

accident, destroyed by combat, donated, 

exchanged—repair, exchanged—sold, 

exchanged—warranty, expended— 

experimental/target, expended—normal 

use, leased, loaned, lost, reintroduced, 

retired, scrapped, sold—foreign 

government, sold—historic, sold— 

nongovernment, sold—other federal, 

sold—state/local, and stolen. 

(3) Updating procedures. When an 

item that is marked with a UII enters the 

materiel disposition process through a 

transfer between Components or if the 

item leaves DoD inventory, an update to 

the IUID Registry is required. 

Procedures for performing required 

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updates to the IUID Registry can be 

found in the IUID registry user manual 

available at https://iuid.logistics

informationservice.dla.mil. 

Subpart B—Reutilization, Transfer, and 

Sale of Property 

§ 273.10 Purpose. 

(a) This part is composed of several 

subparts, each containing its own 

purpose. In accordance with the 

authority in DoD Directive 5134.12, 

‘‘Assistant Secretary of Defense for 

Logistics and Materiel Readiness 

(ASD(L&MR)),’’ DoD Instruction 

4140.01, ‘‘DoD Supply Chain Materiel 

Management Policy,’’ and DoD 

Instruction 4160.28, ‘‘DoD 

Demilitarization (DEMIL) Program,’’ this 

part establishes the sequence of 

processes for the disposition of personal 

property of the DoD Components. 

(b) This subpart: 

(1) Implements policy for 

reutilization, transfer, excess property 

screening, and issue of surplus property 

and foreign excess personal property 

(FEPP), scrap generated from qualified 

recycling programs (QRPs), and nonQRP scrap. 

(2) Provides guidance for removing 

excess material through security 

assistance programs and foreign military 

sales (FMS). 

(3) Provides detailed instructions for 

the sale of surplus property and FEPP, 

scrap generated from QRPs, and nonQRP scrap. 

§ 273.11 Applicability. 

(a) This subpart applies to the Office 

of the Secretary of Defense, the Military 

Departments, the Office of the Chairman 

of the Joint Chiefs of Staff and the Joint 

Staff, the Combatant Commands, the 

Office of the Inspector General of the 

Department of Defense, the Defense 

Agencies, the DoD Field Activities, and 

all other organizational entities within 

the Department of Defense (hereinafter 

referred to collectively as the ‘‘DoD 

Components’’). 

(b) 41 CFR chapters 101 and 102, also 

known as the Federal Property 

Management Regulation and Federal 

Management Regulation (FPMR and 

FMR), and 40 U.S.C. subtitle I, also 

known as the Federal Property and 

Administrative Services, take 

precedence over this part if a procedural 

conflict exists. 

§ 273.12 Definitions. 

Unless otherwise noted, these terms 

and their definitions are for the purpose 

of this subpart: 

Abandonment and destruction (A/D). 

A method for handling property that: 

(1) Is abandoned and a diligent effort 

to determine the owner is unsuccessful. 

(2) Is uneconomical to repair or the 

estimated costs of the continued care 

and handling of the property exceeds 

the estimated proceeds of sale. 

(3) Has an estimated cost of disposal 

by A/D that is less than the net sales 

cost. 

Accountability. The obligation 

imposed by law, lawful order, or 

regulation accepted by a person for 

keeping accurate records to ensure 

control of property, documents, or funds 

with or without possession of the 

property. The person who is 

accountable is concerned with control, 

while the person who has possession is 

responsible for custody, care, and 

safekeeping. 

Accountable officer. The individual 

responsible for acquiring and 

maintaining DoD items of supply 

(physical property and records), 

approving property orders (including 

reutilization of excess property 

requests), and authenticating materiel 

release orders (MROs). Comparative 

terms are: Army Supply Support 

Accountable Officer, Navy Accountable 

Officer, Air Force Accountable Officer/ 

Chief of Supply Materiel Support 

Division, Marine Corps Unit Supply 

Officer. 

Acquisition cost. The amount paid for 

property, including transportation costs, 

net any trade and cash discounts. Also 

see standard price. 

Ammunition. Generic term related 

mainly to articles of military application 

consisting of all kinds of bombs, 

grenades, rockets, mines, projectiles, 

and other similar devices or 

contrivances. 

Batchlot. The physical grouping of 

individual receipts of low-dollar-value 

property. The physical grouping 

consolidates multiple disposal turn-in 

documents (DTIDs) under a single cover 

DTID. The objective of batchlotting is to 

reduce the time and costs related to 

physical handling and administrative 

processes required for receiving items 

individually. The cover DTID 

establishes accountability in the 

accountable record, and individual line 

items lose their identity. 

Bid. A response to an offer to sell, 

that, if accepted, would bind the bidder 

to the terms and conditions of the 

contract (including the bid price). 

Bidder. Any entity that is responding 

to or has responded to an offer to sell. 

Commerce control list (CCL) items 

(formerly known as strategic list item). 

Commodities and associated technical 

data (including software) subject to 

export controls in accordance with 

Export Administration Regulations 

(EAR) in 15 CFR parts 730 through 774. 

The EAR contains the CCL and is 

administered by the Bureau of Industry 

and Security, DOC. 

Component. An integral constituent of 

a complete (end) item. It may consist of 

a part, assembly, or subassembly. 

Contractor inventory. (1) Any 

property acquired by and in the 

possession of a contractor or 

subcontractor (including Governmentfurnished property) under a contract, 

terms of which vest title in the U.S. 

Government (USG) and in excess of the 

amounts needed to complete full 

performance under the entire contract. 

(2) Any property for which the USG 

is obligated to or has an option to take 

over under any type of contract 

resulting from changes in the 

specifications or plans or termination of 

such contract (or subcontract) before 

completion of the work, for the 

convenience of or at the option of the 

USG. 

Continental United States (CONUS). 

Territory, including the adjacent 

territorial waters, located within the 

North American continent between 

Canada and Mexico (comprises 48 

States and the District of Columbia). 

Demilitarization (DEMIL) Code A. 

DEMIL not required. 

DEMIL. The act of eliminating the 

functional capabilities and inherent 

military design features from DoD 

personal property. Methods and degree 

range from removal and destruction of 

critical features to total destruction by 

cutting, crushing, shredding, melting, 

burning, etc. DEMIL is required to 

prevent property from being used for its 

originally intended purpose and to 

prevent the release of inherent design 

information that could be used against 

the United States. DEMIL applies to 

material in both serviceable and 

unserviceable condition. 

Denied areas. Those countries or 

entities that the Department of State 

(DoS), Department of Commerce (DOC), 

or Treasury have determined to be 

prohibited or sanctioned for the purpose 

of export, sale, transfer, or resale of 

items controlled on the United States 

munitions list (USML) or CCL. A 

consolidated list of prohibited entities 

or destinations for which transfers may 

be limited or barred, may be found at: 

http://export.gov/ecr/eg_main_

023148.asp. 

Disposal. End-of-life tasks or actions 

for residual materials resulting from 

demilitarization or disposition 

operations. 

Disposition. The process of reusing, 

recycling, converting, redistributing, 

transferring, donating, selling, 

demilitarizing, treating, destroying, or 

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fulfilling other end of life tasks or 

actions for DoD property. Does not 

include real (real estate) property. 

Diversion. Includes collection, 

separation, and processing of material 

for use as raw material in the 

manufacture of goods sold or distributed 

in commerce or the reuse of material as 

substitutes for goods made of virgin 

material. 

Defense Logistics Agency (DLA) 

Disposition Services. The organization 

provides DoD with worldwide reuse, 

recycling and disposal solutions that 

focus on efficiency, cost avoidance and 

compliance. 

DLA Disposition Services site. The 

DLA Disposition Services office that has 

accountability for and control over 

disposable property. May be managed in 

part by a commercial contractor. The 

term is applicable whether the disposal 

facility is on a commercial site or a 

Government installation and applies to 

both Government and contractor 

employees performing the disposal 

mission. 

DoD Activity Address Code 

(DoDAAC). A 6-digit code assigned by 

the Defense Automatic Addressing 

System (DAAS) to provide a 

standardized address code system for 

identifying activities and for use in 

transmission of supply and logistics 

information that supports the movement 

of property. 

DoD Item Unique Identification (IUID) 

Registry. The DoD data repository that 

receives input from both industry and 

Government sources and provides 

storage of, and access to, data that 

identifies and describes tangible 

Government personal property. 

Donation. The act of providing 

surplus personal property at no charge 

to a qualified donation recipient, as 

allocated by the General Services 

Administration (GSA). 

Educational institution. An approved, 

accredited, or licensed public or 

nonprofit institution or facility, entity, 

or organization conducting educational 

programs, including research for any 

such programs, such as a childcare 

center, school, college, university, 

school for the mentally handicapped, 

school for the physically handicapped, 

or an educational radio or television 

station. 

End of screening date. The date when 

formal reutilization, transfer, and 

donation screening time expires. 

Estimated fair market value. The 

selling agency’s best estimate of what 

the property would be sold for if offered 

for public sale. 

Excess personal property. (1) 

Domestic excess. Personal property that 

the United States and its territories and 

possessions, applicable to areas covered 

by GSA (i.e., the 50 States, District of 

Columbia, Puerto Rico, American 

Samoa, Guam, Northern Mariana 

Islands, the Federated States of 

Micronesia, the Marshall Islands, Palau, 

and the U.S. Virgin Islands), consider 

excess to the needs and mission 

requirements of the United States. 

(2) DoD Component excess. Items of 

DoD Component owned property that 

are not required for their needs and the 

discharge of their responsibilities as 

determined by the head of the Service 

or Agency. 

(3) Foreign excess personal property 

(FEPP). U.S.-owned excess personal 

property that is located outside the ZI. 

This property becomes surplus and is 

eligible for donation and sale as 

described in § 273.15(b). 

Federal civilian agency (FCA). Any 

non-defense executive agency (e.g. DoS, 

Department of Homeland Security) or 

any establishment in the legislative or 

judicial branch of the USG (except the 

Senate, the House of Representatives, 

and the Architect of the Capitol and any 

activities under his or her direction). 

Federal condition code. A two-digit 

code consisting of an alphabet supply 

condition code in the first digit, and a 

numeric or alphabet disposal condition 

code (DCC) in the second digit. A 

combination of the supply condition 

code and the DCC, which most 

accurately describes the materiel’s 

physical condition. 

(1) Disposal condition code (DCC). 

Codes assigned by the DLA Disposition 

Services site based upon inspection of 

materiel at time of receipt. 

(2) Supply condition codes. Codes 

used to classify materiel in terms of 

readiness for issue and use or to identify 

action underway to change the status of 

materiel. These codes are assigned by 

the DoD Components. DLA Disposition 

Services may change a supply condition 

code if the code was assigned 

improperly and the property is of a nontechnical nature. If change is not 

appropriate or property is of a technical 

nature, DLA Disposition Services sites 

may challenge a suspicious supply 

condition code. 

FEPP. See excess personal property. 

Foreign military sales (FMS). A 

process through which eligible foreign 

governments and international 

organizations may purchase defense 

articles and services from the USG. A 

government-to-government agreement, 

documented in accordance with DoD 

5105.38–M. 

Foreign purchased property. Property 

paid for by foreign countries, but where 

ownership is retained by the United 

States. 

Generating activity (‘‘generator’’). The 

activity that declares personal property 

excess to its needs. 

Government furnished equipment. An 

item of special tooling, special test 

equipment, or equipment, in the 

possession of, or directly acquired by, 

the Government and subsequently 

furnished to the contractor for the 

performance of a contract. 

Government furnished materiel. 

Property provided by the U.S. 

Government for the purpose of being 

incorporated into or attached to a 

deliverable end item or that will be 

consumed or expended in performing a 

contract. Government-furnished 

materiel includes assemblies, 

components, parts, raw and process 

material, and small tools and supplies 

that may be consumed in normal use in 

performing a contract. Governmentfurnished materiel does not include 

material provided to contractors on a 

cash-sale basis nor does it include 

military property, which are 

government-owned components, 

contractor acquired property, 

government furnished equipment, or 

major end items being repaired by 

commercial contractors for return to the 

government. 

GSAXcess®. A totally web-enabled 

platform that eligible customers use to 

access functions of GSAXcess® for 

reporting, searching, and selecting 

property. This includes the entry site for 

the Federal Excess Personal Property 

Utilization Program and the Federal 

Surplus Personal Property Donation 

Program operated by the GSA. 

Hazardous property (HP). A 

composite term to describe DoD excess 

property, surplus property, and FEPP, 

which may be hazardous to human 

health, human safety, or the 

environment. Various Federal, State, 

and local safety and environmental laws 

regulate the use and disposal of HP. In 

more technical terms, HP includes 

property having one or more of the 

following characteristics: 

(1) Has a flashpoint below 200 °F (93 

°C) closed cup, or is subject to 

spontaneous heating or is subject to 

polymerization with release of large 

amounts of energy when handled, 

stored, and shipped without adequate 

control. 

(2) Has a threshold limit value equal 

to or below 1,000 parts per million for 

gases and vapors, below 500 milligrams 

per cubic meter (mg/m3) for fumes, and 

equal to or less than 30 million particles 

per cubic foot or 10 mg/m3 for dusts 

(less than or equal to 2.0 fibers per cubic 

centimeter greater than 5 micrometers in 

length for fibrous materials). 

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(3) Causes 50 percent fatalities to test 

animals when a single oral dose is 

administered in doses of less than 500 

mg per kilogram of test animal weight. 

(4) Is a flammable solid as defined in 

49 CFR 173.124, or is an oxidizer as 

defined in 49 CFR 173.127, or is a strong 

oxidizing or reducing agent with a half 

cell potential in acid solution of greater 

than +1.0 volt as specified in Latimer’s 

table on the oxidation-reduction 

potential. 

(5) Causes first-degree burns to skin in 

short-time exposure or is systematically 

toxic by skin contact. 

(6) May produce dust, gases, fumes, 

vapors, mists, or smoke with one or 

more of the characteristics in the course 

of normal operations. 

(7) Produces sensitizing or irritating 

effects. 

(8) Is radioactive. 

(9) Has special characteristics which, 

in the opinion of the manufacturer, 

could cause harm to personnel if used 

or stored improperly. 

(10) Is hazardous in accordance with 

29 CFR part 1910, also known as the 

Occupational Safety and Health 

Standards. 

(11) Is hazardous in accordance with 

49 CFR parts 171 through 179. 

(12) Is regulated by the Environmental 

Protection Agency in accordance with 

40 CFR parts 260 through 280. 

Hazardous waste (HW). An item that 

is regulated pursuant to 42 U.S.C. 6901 

or by State regulation as an HW. HW is 

defined at 40 CFR part 261. From a 

practical standpoint, if an EPA or state 

HW code can be assigned, the item is a 

HW. Overseas, HW is defined in the 

applicable final governing standards or 

overseas environmental baseline 

guidance document, or host nation laws 

and regulations. 

Identical bid. Bids for the same item 

of property having the same total price. 

Industrial scrap. Consists of short 

ends, machinings, spoiled materials, 

and similar residue generated by an 

industrial-funded activity. 

Information technology. Any 

equipment or interconnected system or 

subsystem of equipment that is used in 

the automatic acquisition, storage, 

manipulation, management, movement, 

control, display, switching, interchange, 

transmission or reception of data or 

information by the DoD Component. 

Includes computers, ancillary 

equipment, software, firmware, and 

similar procedures, services (including 

support services), and related sources. 

Does not include any equipment that is 

acquired by a Federal contractor 

incidental to a Federal contract. 

Equipment is ‘‘used’’ by a DoD 

Component if the equipment is used by 

the DoD Component directly or is used 

by a contractor under a contract with 

the DoD Component that: 

(1) Requires the use of such 

equipment. 

(2) Requires the use to a significant 

extent of such equipment in the 

performance of a service or the 

furnishing of a product. 

Installation. A military facility 

together with its buildings, building 

equipment, and subsidiary facilities 

such as piers, spurs, access roads, and 

beacons. 

International organizations. For trade 

security control purposes, this term 

includes: Columbo Plan Council for 

Technical Cooperation in South and 

Southeast Asia; European Atomic 

Energy Community; Indus Basin 

Development; International Atomic 

Energy; International Red Cross; NATO; 

Organization of American States; Pan 

American Health Organization; United 

Nations (UN); UN Children’s Fund; UN 

Development Program; UN Educational, 

Scientific, and Cultural Organization; 

UN High Commissioner for Refugees 

Programs; UN Relief and Works Agency 

for Palestine Refugees in the Near East; 

World Health Organization; and other 

international organizations approved by 

a U.S. diplomatic mission. 

Interservice. Action by one Military 

Department or Defense Agency ICP to 

provide materiel and directly related 

services to another Military Department 

or Defense Agency ICP (either on a 

recurring or nonrecurring basis). 

Inventory adjustments. Changes made 

in inventory quantities and values 

resulting from inventory recounts and 

validations. 

Inventory control point (ICP). An 

organizational unit or activity within 

the DoD supply system that is assigned 

the primary responsibility for the 

materiel management of a group of 

items either for a particular Military 

Department or for the DoD as a whole. 

In addition to materiel manager 

functions, an ICP may perform other 

logistics functions in support of a 

particular Military Department or for a 

particular end item (e.g., centralized 

computation of retail requirements 

levels and engineering tasks associated 

with weapon system components). 

Item unique identification (IUID). A 

system of establishing globally 

widespread unique identifiers on items 

of supply within the DoD, which serves 

to distinguish a discrete entity or 

relationship from other like and unlike 

entities or relationships. Automatic 

identification technology is used to 

capture and communicate IUID 

information. 

Law enforcement agencies (LEAs). 

Government agencies whose primary 

function is the enforcement of 

applicable Federal, State, and local 

laws, and whose compensated law 

enforcement officers have powers of 

arrest and apprehension. 

Local screening. The onsite review of 

excess, surplus, and FEPP for 

reutilization, transfer, and donation. 

MAP property. U.S. security 

assistance property provided under 22 

U.S.C.2151, also known as the Foreign 

Assistance Act, generally on a nonreimbursable basis. 

Marketing. The function of directing 

the flow of surplus and FEPP to the 

buyer, encompassing all related aspects 

of merchandising, market research, sale 

promotion, advertising, publicity, and 

selling. 

Material potentially presenting an 

explosive hazard (MPPEH). Material 

owned or controlled by the Department 

of Defense that, prior to determination 

of its explosives safety status, 

potentially contains explosives or 

munitions (e.g., munitions containers 

and packaging material; munitions 

debris remaining after munitions use, 

demilitarization, or disposal; and rangerelated debris) or potentially contains a 

high enough concentration of explosives 

that the material presents an explosive 

hazard (e.g., equipment, drainage 

systems, holding tanks, piping, or 

ventilation ducts that were associated 

with munitions production, 

demilitarization, or disposal 

operations). Excluded from MPPEH are 

munitions within the DoD-established 

munitions management system and 

other items that may present explosion 

hazards (e.g., gasoline cans and 

compressed gas cylinders) that are not 

munitions and are not intended for use 

as munitions. 

Munitions list item (MLI). Any item 

contained on the USML in 22 CFR part 

121. Defense articles, associated 

technical data (including software), and 

defense services recorded or stored in 

any physical form, controlled by 22 CFR 

parts 120 through 130. 22 CFR part 121, 

which contains the USML, is 

administered by the DoS Directorate of 

Defense Trade Controls. 

Museum, DoD or Service. An 

appropriated fund entity that is a 

permanent activity with a historical 

collection, open to both the military and 

civilian public at regularly scheduled 

hours, and is in the care of a 

professional qualified staff that performs 

curatorial and related historical duties 

full time. 

Mutilation. A process that renders 

materiel unfit for its originally intended 

purposes by cutting, tearing, scratching, 

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crushing, breaking, punching, shearing, 

burning, neutralizing, etc. 

Non-appropriated funds (NAF). 

Funds generated by DoD military and 

civilian personnel and their dependents 

and used to augment funds appropriated 

by Congress to provide a 

comprehensive, morale building, 

welfare, religious, educational, and 

recreational program, designed to 

improve the well-being of military and 

civilian personnel and their dependents. 

NAF property. Property purchased 

with NAFs, by religious activities or 

non-appropriated morale welfare or 

recreational activities, post exchanges, 

ships stores, officer and 

noncommissioned officer clubs, and 

similar activities. Such property is not 

Federal property. 

Nonprofit institution. An institution 

or organization, no part of the net 

earnings of which inures or may 

lawfully inure to the benefit of any 

private shareholder or individual, and 

which has been held to be tax exempt 

under the provisions of 26 U.S.C. 501, 

also known as the Internal Revenue 

Code of 1986. 

National stock number (NSN). The 13- 

digit stock number replacing the 11- 

digit federal stock number. It consists of 

the 4-digit federal supply classification 

code and the 9-digit national item 

identification number. The national 

item identification number consists of a 

2-digit National Codification Bureau 

number designating the central 

cataloging office (whether North 

Atlantic Treaty Organization or other 

friendly country) that assigned the 

number and a 7-digit (xxx-xxxx) 

nonsignificant number. Arrange the 

number as follows: 9999–00–999–9999. 

Personal property. Property except 

real property. Excludes records of the 

Federal Government, battleships, 

cruisers, aircraft carriers, destroyers, 

and submarines. 

Precious metals recovery program 

(PMRP). A DoD program for 

identification, accumulation, recovery, 

and refinement of precious metals (PM) 

from excess and surplus end items, 

scrap, hypo solution, and other PM 

bearing materiel for authorized internal 

purposes or as Government furnished 

materiel. 

Precious metals (PM). Gold, silver, 

and the platinum group metals 

(platinum, palladium, iridium, 

rhodium, osmium, and ruthenium). 

Privately owned personal property. 

Personal effects of DoD personnel 

(military or civilian) that are not, nor 

will ever become, government property 

unless the owner (or heirs, next of kin, 

or legal representative of the owner) 

executes a written and signed release 

document unconditionally giving the 

USG all right, title, and interest in the 

privately owned property. 

Qualified recycling programs (QRP). 

Organized operations that require 

concerted efforts to divert or recover 

scrap or waste, as well as efforts to 

identify, segregate, and maintain the 

integrity of recyclable materiel to 

maintain or enhance its marketability. If 

administered by a DoD Component, a 

QRP includes adherence to a control 

process providing accountability for all 

materials processed through program 

operations. 

Radioactive material. Any material or 

combination of materials that 

spontaneously emits ionizing radiation 

and which is subject to regulation as 

radioactive or nuclear material under 

any Federal law or regulation. 

Reclamation. A cost avoidance or 

savings measure to recover useful 

(serviceable) end items, repair parts, 

components, or assemblies from one or 

more principal end items of equipment 

or assemblies (usually Supply condition 

codes (SCCs), H, P, and R) for the 

purpose of restoration to use through 

replacement or repair of one or more 

unserviceable, but repairable principal 

end item of equipment or assemblies 

(usually SCCs E, F, and G). Reclamation 

is preferable prior to disposition (e.g., 

DLA Disposition Services site turn-in), 

but end items or assemblies may be 

withdrawn from DLA Disposition 

Services site for reclamation purposes. 

Responsibility criteria. The situations 

outlined in 41 CFR chapter 102 that 

require some certifications from buyers; 

either that the buyer knows they need 

to take care of the property because of 

its characteristics, or because the buyer 

must meet certain professional or 

licensing criteria. 

Responsive bid. A bid that meets all 

the terms, conditions, and specifications 

necessary. 

Reutilization. The act of re-issuing 

FEPP and excess property to DoD 

Components. Also includes qualified 

special programs (e.g., LEA, 

Humanitarian Assistance Program 

(HAP), Military Affiliate Radio System 

(MARS)) pursuant to applicable 

enabling statutes. 

Reutilization screening. The act of 

reviewing, either by automated or 

physical means, available FEPP, excess 

or surplus personal property to meet 

known or anticipated requirements. 

Sales contract. An agreement between 

two parties, binding upon both, to 

transfer title of specified property for a 

consideration. 

Sales contracting officer (SCO). An 

individual who has been duly 

appointed and granted the authority 

conferred by law according to the 

procedures in this part to sell surplus 

and FEPP by any of the authorized and 

prescribed methods of sale. Also 

referred to as the SAR. 

Scrap. Recyclable waste and 

discarded materials derived from items 

that have been rendered useless beyond 

repair, rehabilitation, or restoration such 

that the item’s original identity, utility, 

form, fit and function have been 

destroyed. Items can be classified as 

scrap if processed by cutting, tearing, 

crushing, mangling, shredding, or 

melting. Intact or recognizable USML or 

CCL items, components, and parts are 

not scrap. 41 CFR 102–36.40 provides 

additional information on scrap. 

Screening. The process of physically 

inspecting property or reviewing lists or 

reports of property to determine 

whether it is usable or needed. 

Screening period. The period in 

which excess and surplus personal 

property is made available for 

reutilization, transfer, or surplus 

donation to eligible recipients. 

Security assistance. A group of 

programs, authorized by law, that 

allows the transfer of military articles 

and services to friendly foreign 

governments. 

Small arms and light weapons. Manportable weapons made or modified to 

military specifications for use as lethal 

instruments of war that expel a shot, 

bullet, or projectile by action of an 

explosive. Small arms are broadly 

categorized as those weapons intended 

for use by individual members of armed 

or security forces. They include 

handguns; rifles and carbines; submachine guns; and light machine guns. 

Light weapons are broadly categorized 

as those weapons designed for use by 

two or three members of armed or 

security forces serving as a crew, 

although some may be used by a single 

person. They include heavy machine 

guns; hand-held under-barrel and 

mounted grenade launchers; portable 

anti-aircraft guns; portable anti-tank 

guns; recoilless rifles; man-portable 

launchers of missile and rocket systems; 

and mortars. 

Solid waste. Includes garbage, refuse, 

and other discarded materials, including 

solid waste materials resulting from 

industrial, commercial, and agricultural 

operations, and from community 

activities. Includes solids, liquid, semisolid or contained gaseous material 

which is discarded and not otherwise 

excluded by statute or regulation. 

Mining and agricultural solid wastes, 

hazardous wastes (HW), sludge, 

construction and demolition wastes, 

and infectious wastes are not included 

in this category. 

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Special programs. Programs specified 

by legislative approval, such as FMS, 

LEAs and fire fighters, identified on 

DLA Disposition Services Web site 

(https://www.dispositionservices.dla. 

mil/rtd03/miscprograms.shtml). 

State agency for surplus property 

(SASP). The agency designated under 

State law to receive Federal surplus 

personal property for distribution to 

eligible donation recipients within the 

States as provided for in 40 U.S.C. 549. 

State or local government. A State, 

territory, or possession of the United 

States, the District of Columbia, and any 

political subdivision or instrumentality 

thereof. 

Transfer. The act of providing FEPP 

and excess personal property to FCAs as 

stipulated in the FMR. Property is 

allocated by the GSA. 

Transfer order. Document (SF 122 and 

SF 123) issued by DLA Disposition 

Services or the headquarters or regional 

office of GSA directing issue of excess 

personal property. 

Trade security control (TSCs). Policy 

and procedures, in accordance with 

DoD Instruction 2030.08, designed to 

prevent the sale or shipment of USG 

materiel to any person, organization, or 

country whose interests are unfriendly 

or hostile to those of the United States 

and to ensure that the disposal of DoD 

personal property is performed in 

compliance with U.S. export control 

laws and regulations. 

Unique item identifier (UII). A set of 

data elements marked on an item that is 

globally unique and unambiguous. The 

term includes a concatenated UII or a 

DoD recognized unique identification 

equivalent. 

Usable property. Commercial and 

military type property other than scrap 

and waste. 

Wash-post. A methodology for 

transfer of accountability to the DLA 

Disposition Services site whereby the 

DLA Disposition Services site only 

accepts accountability at the time they 

also document a release from the 

account, through reutilization, transfer, 

donation, sales, or disposal. 

Zone of interior (ZI). The United 

States and its territories and 

possessions, applicable to areas covered 

by GSA and where excess property is 

considered domestic excess. Includes 

the 50 States, District of Columbia, 

Puerto Rico, American Samoa, Guam, 

Northern Mariana Islands, the Federated 

States of Micronesia, the Marshall 

Islands, Palau, and the U.S. Virgin 

Islands. 

§ 273.13 Policy. 

It is DoD policy consistent with 41 

CFR chapters 101 and 102 that excess 

DoD property must be screened and 

redistributed among the DoD 

Components, and reported as excess to 

the GSA. Pursuant to 40 U.S.C. 701, 

DoD will efficiently and economically 

dispose DoD FEPP. 

§ 273.14 Responsibilities. 

(a) The Assistant Secretary of Defense 

for Logistics and Materiel Readiness 

(ASD(L&MR)), under the authority, 

direction, and control of the 

USD(AT&L), and in accordance with 

DoD Directive 5134.12: 

(1) Develops DoD materiel disposition 

policies, including policies for FEPP. 

(2) Oversees the effective 

implementation of the DoD materiel 

disposition program. 

(3) Approves changes to FEPP 

procedures as appropriate to support 

contingency operations. 

(b) The Director, Defense Logistics 

Agency (DLA), under the authority, 

direction, and control of the Under 

Secretary of Defense for Acquisition, 

Technology, and Logistics, through the 

Assistant Secretary of Defense for 

Logistics and Materiel Readiness 

(ASD(L&MR)): 

(1) Administers the worldwide 

Defense Materiel Disposition Program 

for the reutilization, transfer, screening, 

issue, and sale of FEPP, excess, and 

surplus personal property. 

(2) Implements guidance issued by 

the ASD(L&MR) or other organizational 

elements of the OSD and establishes 

system concepts and requirements, 

resource management, program 

guidance, budgeting and funding, 

training and career development, 

management review and analysis, 

internal control measures, and crime 

prevention for the Defense Materiel 

Disposition Program. 

(c) The DoD Component Heads: 

(1) Implement the procedures 

prescribed in this subpart and ensure 

that supplemental guidance and 

procedures are in accordance with 41 

CFR chapters 101 and 102. 

(2) Reutilize, transfer, screen, issue 

and sell FEPP, excess and surplus 

personal property according to the 

procedures in § 273.15(a) and (c). 

(3) Treat the disposal of DoD property 

as an integral part of DoD Supply Chain 

Management; ensure that disposal 

actions and costs are a part of ‘‘end-toend’’ management of items and that 

disposal of property is a planned event 

at all levels of their organizations. 

(4) Furnish the Director, DLA, with 

mutually agreed-upon data necessary to 

administer the Defense Materiel 

Disposition Program. 

(5) Provide administrative and 

logistics support, including appropriate 

facilities, for the operations of tenant 

and related off-site DLA Disposition 

Services field activities under interService support agreements (ISSAs). 

(6) Dispose HP specifically designated 

as requiring Military Department 

processing. 

(7) Request DLA Disposition Services 

provide sales services, as needed, for 

recyclable marketable materials 

generated as a result of resource 

recovery programs. 

(8) Monitor, with DLA Disposition 

Services Site personnel, all property 

sent to landfills to ensure no 

economically salable property is 

discarded. 

(9) Report, accurately identify on 

approved turn in documents, and turn 

in all authorized scrap generations to 

servicing DLA Disposition Services 

Sites. 

(10) Authorize installation 

commanders, as appropriate, to sell 

directly recyclable and other QRP 

materials, or to consign them to the DLA 

Disposition Services for sale. 

§ 273.15 Procedures. 

(a) Sale of surplus and FEPP, scrap 

generated from QRPS, and non-QRP 

scrap—(1) Authority and scope—(i) 

FPMR and FMR. The provisions of this 

section are pursuant to 41 CFR chapters 

101 and 102, also known as the FPMR 

and FMR, respectively. 

(ii) Additional guidance. (A) Policy 

and procedures for the control of MLIs 

and Commerce Control List items 

(CCLIs) are contained in DoD 

Instruction 4160.28, DoD 4160.28–M 

Volumes 1–3, DoD Instruction 4140.62, 

‘‘Materiel Potentially Presenting an 

Explosive Hazard’’ (available at http://

www.dtic.mil/whs/directives/corres/pdf/

414062p.pdf) and incorporated in the 

provisions of DoD Instruction 2030.08. 

(B) 31 U.S.C. 3711–3720E provides an 

additional statutory requirement 

applicable to the sale of personal 

property. 

(C) 48 CFR part 33 provide additional 

guidance on handling disputes from the 

sale of personal property. 

(D) 48 CFR subpart 9.4 of the Federal 

Acquisition Regulation (FAR), current 

edition, provides direction on the 

debarment or suspension of individuals 

or entities. 

(E) Sales of FEPP, although briefly 

addressed in the FMR, are managed by 

the agency head and must be in 

compliance with foreign policy of the 

United States and the terms and 

conditions of any applicable host-nation 

agreement. For additional information 

on processing FEPP, see Enclosure 4 to 

DoD Manual 4160.21, Volume 2. 

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(F) DoD Directive 3230.3, ‘‘DoD 

Support for Commercial Space Launch 

Activities’’ (available at http://

www.dtic.mil/whs/directives/corres/pdf/

323003p.pdf) allows the sale of 

dedicated expendable launch vehicle 

(ELV) equipment directly to commercial 

ELV vendors in consultation with the 

Secretary of Transportation. 

(2) Exclusions. This subpart does not 

govern the sale of property that is 

regulated by the laws or agencies 

identified in paragraphs (a)(2)(i) through 

(iv) of this section. The information in 

paragraphs (a)(2)(i) through (iv) is 

included for the DoD Components to 

reference when commodities in their 

possession become excess and disposal 

requires compliance with this part. 

(i) The Strategic and Critical Materials 

Stock Piling Act (50 U.S.C. 98 et seq.) 

provides for the acquisition, disposal 

(sale) and retention of stocks of certain 

strategic and critical materials and 

encourages the conservation and 

development of sources of such 

materials within the United States. 

These materials when acquired and 

stored constitute and are collectively 

known as the National Defense 

Stockpile (NDS) or the ‘‘stockpile.’’ 

(ii) The Department of Transportation 

Maritime Administration has 

jurisdiction over the disposal of vessels 

of 1,500 gross tons or more that the 

Secretary of Transportation determines 

to be merchant vessels or capable of 

conversion to merchant use, excluding 

specified combatant vessels. 

(iii) Under the provisions of 10 U.S.C. 

2576, the Secretary of Defense may sell 

designated items (such as pistols, 

revolvers, shotguns, rifles of a caliber 

not exceeding .30, ammunition for such 

firearms, and other appropriate 

equipment) to State and local law 

enforcement, firefighting, homeland 

security, and emergency management 

agencies, at fair market value if the 

designated items: 

(A) Have been determined to be 

surplus property. 

(B) Are certified as being necessary 

and suitable for the operation and 

exclusive use of such agency by the 

Governor (or such State official as he or 

she may designate) of the State in which 

such agency is located. 

(C) Do not include used gas masks 

and any protective body armor. 

(iv) DLA Disposition Services 

provides a sales service to the DoD 

pursuant to the exchange or sale 

according to the procedures in DoD 

Manual 4140.01 that implement the 

authority in 41 CFR part 102–39; 

however, general and specific 

provisions through this method of sale 

are not addressed in this subpart. More 

information may be obtained from the 

DLA Disposition Services Exchange Sale 

Web site at http://

www.dispositionservices.dla.mil/sales/

typesale.shtml. 

(3) Sales of surplus property, FEPP, 

scrap generated by QRPs, and other 

scrap. (i) DLA Disposition Services is 

the primary agency for managing 

surplus and FEPP sales, to include some 

sales of scrap generated from Military 

Department QRPs and non-QRP scrap. 

(ii) DoD Components are responsible 

for disposing of surplus property, FEPP, 

scrap generated by QRPs, and other 

scrap through sales to the general public 

and State and local governments by a 

warranted contracting officer (CO) 

through execution of an awarded 

contract. 

(iii) The Military Departments are 

authorized to sell eligible scrap 

generated from their respective QRPs 

and non-excess property eligible for 

exchange or sale without the 

involvement of DLA Disposition 

Services in accordance with their 

internal operating guidance, DoD 

Manual 4140.01, and 41 CFR chapters 

101 and 102. 

(iv) DoD Components advertise excess 

and surplus personal property for sale 

only after all prescribed screening 

actions are taken, unless screening is 

not required. See DoD Manual 4160.21 

Volume 4 for exempt items. 

(v) Sales actions include planning, 

merchandising, pre-award reviews, bid 

evaluation and award, contract 

administration, proceeds receipt and 

disbursement, and releasing the 

property. 

(vi) Information on surplus and FEPP 

sales can be obtained from the DLA 

Customer Contact Center, accessible 24 

hours a day, 7 days a week on the DLA 

Disposition Services Government Sales 

Web site at https://

www.dispositionservices.dla.mil/sales/

index.shtml. 

(vii) Within the CONUS, DLA 

Disposition Services has partnered with 

a commercial firm to sell usable, nonhazardous surplus demilitarization 

(DEMIL) Code A and safe to sell Q 

property that is not reutilized, 

transferred, or donated. The commercial 

venture partner schedules and holds 

sales of property released to it by DLA 

Disposition Services. DLA Disposition 

Services has partnered with a 

commercial firm to sell scrap property. 

The scrap venture partner schedules 

and holds sales of scrap property 

released to it by DLA Disposition 

Services. 

(viii) DLA Disposition Services 

conducts the balance of surplus and 

FEPP sales. This includes hazardous 

and chemical sales and DEMIL- and 

mutilation-required property and scrap 

sales in controlled property groups. 

(A) DoD Components implement 

controls to mitigate security risks 

associated with the release or 

disposition of DEMIL Code B MLI and 

DEMIL Code Q CCLI that are sensitive 

for reasons of national security. Certain 

categories of DEMIL Q items that pose 

no risk to national security will be 

available for reutilization, transfer, or 

donation (RTD) and sales following 

normal procedures. However, only FEPP 

with DEMIL Code A (no export license 

requirements except to denied areas) 

may be sold in foreign countries that are 

not denied areas, in accordance with 15 

CFR parts 730 through 774. DEMIL B 

and DEMIL Q items, including those 

posing no risk to national security are 

not permitted for sale. 

(1) DEMIL B and sensitive DEMIL Q 

property can only be reutilized by 

authorized DoD Components, and 

approved Special Programs (FMS, law 

enforcement agencies (LEAs) and fire 

fighters). 

(2) After DLA Disposition Services 

conducts initial screening, serviceable 

DEMIL B and sensitive DEMIL Q 

property will be transferred to a long 

term storage (LTS) facility and will 

remain available for reutilization 

screening by DoD and approved Special 

Programs customers. 

(3) LTS property can be screened 

electronically on the DLA Disposition 

Services Web site at https://

www.DispositionServices.dla.mil/asset/

govegeo1.html. No physical screening is 

permitted at the LTS facility. 

(B) DoD Components may offer for 

sale any property designated as unsafe 

for use as originally intended, with 

mutilation as a condition of sale. DoD 

Components incorporate the method 

and degree of mutilation into the sales 

offering, as required by an official 

notification of the safety defects. The 

sales offering must include a condition 

of sale stipulating that title of the 

property cannot pass from the 

Government to the purchaser until DoD 

representatives have certified and 

verified the mutilation has been 

satisfactorily accomplished and have 

documented this certification. 

(C) SCC Q materiel with Management 

Code S (as defined in DLM 4000.25–1 is 

hazardous to public health, safety, or 

national security. If sold, it must require 

mutilation as a condition of sale. 

Property assigned SCC Q with 

Management Code O may be offered for 

sale without mutilation as a condition of 

sale, but the seller must ensure that all 

sales include a restrictive resale 

provision. In addition, any sales 

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offerings must indicate that the 

restrictive resale provision is to be 

perpetuated to all future sales to deter 

reentry of the materiel to the DoD 

supply system. 

(D) Hazardous property may be 

offered for sale with appropriate terms 

and conditions. Prior to award, DoD 

Components conduct a pre-award 

review to determine whether the 

prospective purchaser meets the 

responsibility criteria in 41 CFR chapter 

102. The prospective purchaser must 

display the ability to comply with 

applicable laws and regulations before 

the DoD Components can make an 

award. 

(E) Only FEPP with DEMIL Code A 

(no export control requirements except 

to denied areas) may be offered for sale 

in foreign countries that are not denied 

areas in accordance with 15 CFR parts 

730 through 774 and with additional 

DoD guidance in DoD 4160.28–M 

Volumes 1–3. The sales offering must 

include terms and conditions relating to 

taxes and duties, import stipulations, 

and compliance with international and 

local laws and regulations. See 

Enclosure 4 to DoD Manual 4160.21, 

Volume 2 for additional information. 

(F) Other types of sales offerings for 

property requiring special handling 

must include applicable terms and 

conditions. 

(ix) All persons or organizations are 

entitled to purchase property offered by 

DLA Disposition Services except for: 

(A) Anyone under contract to conduct 

a specific sale, their agents or 

employees, and immediate members of 

their households. 

(B) DoD military and civilian 

personnel and military and civilian 

personnel of the United States Coast 

Guard (USCG) whose duties include any 

functional or supervisory 

responsibilities for or within the 

Defense Materiel Disposition Program, 

their agents, employees, and immediate 

members of their households. 

(C) Any persons or organizations 

intending to ship FEPP, excess and 

surplus personal property to denied 

areas. See http://pmddtc.state.gov/

embargoed_csuountries/index.html or 

https://demil.osd.mil/ or http://

treas.gov/offices/enforcement/ofac/

programs for additional information on 

shipments to denied areas. 

(D) Persons under 18 years of age. 

(E) Individuals or firms who are 

ineligible to be awarded government 

contracts due to suspension or 

debarment. See the GSA Excluded 

Parties List at http://epls.gov or https:// 

demil.osd.mil/ or http://treas.gov/

offices/enforcement/ofac/sdn/ or http:// 

bis.doc.gov/

complianceandenforcement/

liststocheck.htm. 

(F) Persons or entities who wish to 

purchase MLI or CCLI who do not meet 

the requirements to receive an end user 

certificate (EUC) as specified in 22 

U.S.C. 2778 et seq., also known as the 

Arms Export Control Act, and the 

implementing regulations 22 CFR parts 

120 through 130, also known as the 

International Traffic In Arms 

Regulations and 15 CFR parts 730 

through 774, also known as the Export 

Administration Regulations. 

Information on demilitarized materiel is 

provided at https://demil.osd.mil/. A 

consolidated list of prohibited entities 

or destinations may be found at http:// 

export.gov/ecr/eg_main_023148.asp. 

(x) Disposable assets (FEPP, scrap, 

NAF property, disposable (MAP 

property, etc.) may not be sold directly 

or indirectly to denied areas or any 

other areas designated by DoD 4160.28– 

M Volumes 1–3. 

(xi) DoD Components will update the 

DoD IUID Registry when an item of 

personal property with a UII is declared 

FEPP, excess and surplus personal 

property and is subject to reutilization, 

transfer, or sale. The procedures 

required to update the DoD IUID 

Registry are in § 273.9. 

(4) Responsibilities in selling personal 

property—(i) Selling agencies. Selling 

agencies: 

(A) Determine whether to sell as the 

holding agency or request another 

agency to sell on behalf of the holding 

agency. 

(B) Ensure the sale complies with the 

provisions of 40 U.S.C. 549, and any 

other applicable laws. 

(C) Issue internal guidance for 

utilizing methods of sale stipulated in 

subchapter B of 41 CFR chapter 102, 

and promote uniformity of sales 

procedures. 

(D) Obtain appropriate authorization 

to conduct sales of certain property or 

under certain conditions (e.g., approval 

by the agency head to use the 

negotiation method of sale). 

(E) Ensure that all sales are made after 

publicly advertising for bids, except as 

provided for negotiated sales in 41 CFR 

102–38.100 through 102–38.125. 

(F) Document the required terms and 

conditions of each sale, including but 

not limited to those terms and 

conditions specified in 41 CFR 102– 

38.75. 

(G) Sell personal property upon such 

terms and conditions as the head of the 

agency deems appropriate to promote 

fairness, openness, and timeliness. 

Standard Government forms (e.g., the 

Standard Form (SF) 114 series, ‘‘Sale of 

Government Property’’) are no longer 

mandatory, but may be used to 

document terms and conditions of the 

sale. 

(H) Assure that only representatives 

designated in writing by the selling 

agency as selling agent representatives 

(SARs) are appointed to approve the 

sale and bind the United States in a 

written contractual sales agreement. The 

DLA Disposition Services equivalent of 

SARs are SCOs. The selling agency 

determines the requirements for 

approval (e.g., select the monetary 

thresholds for awarding sales contracts). 

(I) Adequately train SARs in 

regulatory requirements and limitations 

of authority. Ensure SARs are cognizant 

in identifying and referring matters 

relating to fraud, bribery, or criminal 

collusion to the proper authorities in 

accordance with 41CFR 102–38.50 and 

102–38.225. 

(J) Obtain approvals as necessary prior 

to award of the property (e.g., an 

approval by the Attorney General of the 

United States to award property with a 

fair market value of $3 million or more 

or if it involves a patent, process, 

technique, or invention) as specified in 

41 CFR 102–38.325. 

(K) Be accountable for the care, 

handling, and associated costs of the 

personal property prior to its removal by 

the buyer. 

(L) Reconcile property and financial 

records to reflect the final disposition. 

(M) Make the property available to 

FCAs when a bona fide need exists and 

when no like items are located 

elsewhere prior to transfer of title to the 

property, to the maximum extent 

practicable. 

(N) Subject small quantities of low 

dollar value property in poor condition 

to the A/D Economy Formula (see 

Enclosure 3 to DoD Manual 4160.21, 

Volume 2). If there is no reasonable 

prospect of disposing of the property by 

sale (including a scrap sale), dispose of 

the property with the A/D processes. 

(O) Ensure that the DoD IUID Registry 

is updated for DoD personal property 

items marked with a UII in accordance 

with § 273.6. 

(ii) Sales conducted by DLA 

Disposition Services. As the major 

selling agency for the Department of 

Defense and an approved GSA Personal 

Property Sales Center, DLA Disposition 

Services must, in compliance with 

requirements in paragraph (a)(4)(i) of 

this section: 

(A) Carefully consider all factors and 

determine the best method of sale for 

personal property utilizing 

identification, segregation, 

merchandising, advertising, bid 

evaluation, and award principles to 

protect the integrity of the sales process. 

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(B) Utilize any publicly accessible 

electronic media for providing 

information regarding upcoming sales, 

invitations for bid (including sales terms 

and conditions), acceptance of bids, and 

bid results. 

(C) Provide direction to the DLA 

Disposition Services site through its 

internal operating procedures and 

automated systems. 

(D) Verify that personal property 

items marked with a UII and offered for 

sale have been updated in the DoD IUID 

Registry. 

(iii) Authorized methods of sale—(A) 

General. Sale of personal property is 

authorized in 41 CFR part 102–38 by the 

methods of sale identified in paragraphs 

(a)(4)(iii)(A)(1) through (4) of this 

section. (See § 273.12 for definitions.) 

(1) Sealed bid. 

(2) Spot bid. 

(3) Auction. 

(4) Negotiated sale. Criteria for 

negotiated sales include: 

(i) The estimated fair market value is 

not in excess of $15,000 and the sale is 

considered to be in the best interest of 

the USG. Large quantities of materiel 

were not divided nor disposed through 

multiple sales in order to avoid these 

requirements. 

(ii) For FEPP, the estimated fair 

market value is less than $250,000; sale 

is managed by DLA Disposition Services 

and authorized by DLA Disposition 

Services Director or designee. 

(iii) Disposal is to a State, territory, 

possession, political subdivision 

thereof, or tax-supported agency therein, 

and the estimated fair market value of 

the property and other satisfactory terms 

of disposal are obtained by negotiation. 

(iv) Bid prices after advertising are not 

reasonable and re-advertising would 

serve no useful purpose. 

(v) Public exigency does not permit 

delay, such as that caused by the time 

required to advertise a sale (e.g., 

disposal of perishable food or other 

property that may spoil or deteriorate 

rapidly). 

(vi) The sale promotes public health, 

safety, or national security. 

(vii) The sale is in the public interest 

in a national emergency declared by the 

President or Congress. This authority 

may be used only with specific lots of 

property or for categories determined by 

the GSA Administrator for a designated 

period but not more than 3 months. 

(viii) Selling the property 

competitively (sealed bid) would have 

an adverse impact on the national 

economy, provided that the estimated 

fair market value of the property and 

other satisfactory terms of disposal can 

be obtained by negotiation (e.g., sale of 

large quantities of an agricultural 

product that impacts domestic markets). 

(ix) The sale is otherwise authorized 

by 41 CFR chapter 102 or other law. 

(5) Negotiated fixed price. 

(i) The head of the selling agency or 

designee must determine and document 

that this method of sale serves the best 

interest of the government. 

(ii) This type of sale must include 

appropriate terms and conditions; must 

be publicized consistent with the nature 

and value of the property involved; and 

be awarded on a first-come, first-served 

basis. 

(B) Sales of surplus, foreign excess, 

and other categories of property. Within 

the constraints of the FMR-authorized 

methods of sale in paragraphs 

(a)(4)(iii)(A)(1) through (5) of this 

section, the types of sales that may be 

conducted for surplus, foreign excess, 

and other categories of property sold in 

the DoD Defense Materiel Disposition 

Program are: 

(1) One-time sales for disposal of 

property already generated. Actual 

deliveries may comprise several release 

transactions. 

(2) Term sales for the disposal of 

property generated over a period of time 

and in quantities that can be reasonably 

estimated for a specific period of time 

or are offered with minimum and 

maximum quantity provisions. 

(iv) Negotiated sales reporting. 

Negotiated sales reports are required by 

GSA within 60 calendar days after the 

close of each fiscal year. DoD 

Components include in the report a 

listing and description of all negotiated 

sales with an estimated fair market 

value in excess of $5,000. For each sale 

negotiated, the report must provide: 

(A) A description of the property. 

(B) The acquisition cost and date. If 

not known, an estimate of the 

acquisition cost, identified as such. 

(C) The estimated fair market value, 

including the date of the estimate and 

name of the estimator. 

(D) The name and address of 

purchaser. 

(E) The date of sale. 

(F) The gross and net sales proceeds. 

(G) A justification for conducting the 

negotiated sale. 

(v) GSA or DoD-authorized retail 

method of sale. Sales of small quantity, 

consumer-oriented property at 

negotiated, auction, or bid prices that 

are conducted on a first-come; firstserved; and as-is, where-is basis are 

considered retail sales. Credit or debit 

cards are the only authorized payment 

methods. Property having a fair market 

value exceeding $15,000 is subject to 

the limitations applicable to negotiated 

sales of surplus personal property. 

(A) Retail sales of surplus, FEPP, and 

abandoned privately owned property 

may be conducted whenever such a 

program can effectively and 

economically be used to supplement 

other methods of sale. Retail sales must 

be approved in writing at an agency 

level on a case-by-case basis, and the 

approval must specify the quantities 

and types of property and time period 

covered. These authorizations are 

limited to specific situations and types 

of property for which deviation can be 

fully justified. In addition: 

(1) All items must undergo screening, 

as appropriate, before being offered for 

retail sale. 

(2) Each item being sold must have a 

fair market value of less than $15,000. 

(3) All property received as items, if 

offered for sale by retail, must be sold 

as items and not by weight or lot, with 

the exception of scrap authorized for 

retail sale. 

(4) Prices established must reflect the 

estimated fair market value of the 

property and must be publicized to the 

extent consistent with the nature and 

value of the property. 

(5) Retail sales are limited to the 

Federal Supply Classification Codes 

(FSCs), according to the DEMIL code 

assigned and GSA approval, which are 

in 41 CFR chapter 102. 

(6) Property must be DEMIL Code A 

and have a DEMIL Integrity Code 1, 7, 

or 9. 

(7) The retail selling price of the 

property, based on the condition, may 

not be set below the price it would bring 

from a commercial vendor. 

(B) Approval in accordance with 41 

CFR chapters 101 and 102 is required to 

sell scrap by the retail sale method. 

(C) Only trained cashiers are 

authorized to collect and deposit 

proceeds received from a retail sale. 

Retail sales are open to the public and 

all USG personnel except: 

(1) DoD military and civilian 

personnel and contractors and military 

and civilian personnel and contractors 

of the USCG whose duties at the 

installation where the property is sold 

include any functional or supervisory 

responsibility for or within the DoD 

Materiel Disposition Program. 

(2) An agent, employee, or immediate 

member of the household of personnel 

in paragraph (a)(4)(v)(C)(1) of this 

section. 

(vi) Market impact. (A) DoD 

Components will give careful 

consideration to the adverse market 

impact that may result from the 

untimely sale of large quantities of 

certain surplus items. Where applicable, 

the selling agency or partner 

organizations consult with organizations 

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associated with the commodity 

proposed for sale to obtain advice on the 

market impact. 

(B) Property reporting and sale 

schedules are developed to ensure 

expeditious property disposal, 

maximum competition, maximum sale 

proceeds, good public relations, and 

uniform workload. 

(C) The selling agency will provide 

advance notice of all proposed or 

scheduled competitive bid sales (except 

negotiated) of surplus usable property. 

This includes property: 

(1) Located in the 50 United States, 

the District of Columbia, Puerto Rico, 

American Samoa, Guam, the Federated 

States of Micronesia, the Northern 

Mariana Islands, Palau, and the U.S. 

Virgin Islands. 

(2) With a total acquisition cost of 

$250,000 or more per sale. 

(3) With a minimum potential return 

of $5,000 per sale of scrap and 

recyclable material. 

(D) Submit the advance notice to: U.S. 

Department of Commerce, Office of 

Export Enforcement, High Point Plaza, 

4415 West Harrison Street, Suite 530, 

Hillside, IL 60162. 

(5) Advertising to promote free and 

open competition. DoD Components 

will: 

(i) Bring property offered for sale to 

the attention of the buying public by 

free publicity and paid advertising. 

(ii) Make every effort to obtain 

maximum free publicity through sites 

such as a Government-wide point of 

entry, https://www.fedbizopps.gov. 

(iii) Employ the amount of paid 

advertising commensurate with the type 

and value of property being sold. 

(iv) Distribute sale offerings to 

prospective purchasers before the first 

day of the inspection period. 

(6) Pre-sale activities—(i) Preparation 

and distribution of sale offerings—(A) 

Include in the offer to sell sale date and 

time, method of sale, description of the 

property being offered, selling agency, 

location of property, time and place for 

receipt of bids, acceptable forms of bid 

deposits and payments, and general and 

special terms and conditions of sale. 

DLA Disposition Services sale offerings 

are available on the DLA Disposition 

Services Web site 

(www.dispositionservices.dla.mil). 

(B) Establish a sales offering file that 

contains information about the property 

offered for sale from initiation to bid 

opening (e.g., sale catalog, withdrawals 

prior to bid opening, agreements with 

holding activities). 

(C) Prepare sale offerings to provide 

prospective purchasers with general 

information and instructions. 

(D) Include in each offering the 

specific conditions of sale, the contents 

of which are determined by the selling 

agency. The SF 114 series may be used 

to document the terms and conditions of 

a sale, but their use is not mandatory. 

Conditions of sale include, but are not 

limited to: 

(1) Inspection results. 

(2) Condition and location of 

property. 

(3) Eligibility of bidders. 

(4) Consideration of bids. 

(5) Bid deposits and payments. 

(6) Submission of bids. 

(7) Bid price determination. 

(8) Legal title of ownership. 

(9) Delivery, loading, and removal of 

property. 

(10) Default, returns, or refunds. 

(11) Modifications, withdrawals, or 

late bids. 

(12) Requirements to comply with 

applicable laws and regulations. 

(13) Certificate of independent price 

determination. 

(14) Covenant against contingent fees. 

(15) Limitation of government 

liability. 

(16) Award of contract. 

(E) DEMIL-required MLI property may 

not be sold unless DEMIL has been 

accomplished or it is offered for sale 

with DEMIL as a condition of sale. 

Incorporate the method and degree of 

DEMIL into the sales offering. 

(1) If DEMIL is a condition of sale, the 

sales offering must include a condition 

of sale stipulating that title of the 

property will not pass from the 

government to the purchaser until the 

property has been satisfactorily DEMIL 

and has been certified and verified in 

accordance with DoD 4160.28–M 

Volumes 1–3. 

(2) The sales offering must also 

include a requirement for the bidder to 

provide an EUC to the selling agency 

specifying the intended use and 

disposition of the property. The sales 

offering will also include an agreement 

by the buyer that they will obtain 

appropriate export authorizations from 

the Departments of Commerce or State 

prior to any export of the item. DLA 

Disposition Services uses DLA Form 

1822, ‘‘End-Use Certificate.’’ The EUC 

must be processed through designated 

approval channels prior to award of the 

property to the prospective customer. 

(3) The EUC for scrap mutilation 

residue must be incorporated into the 

sales offering for all MLI and CCLI 

property, including mutilation residue 

that may still be classified as DEMIL 

Code B or Q. 

(ii) Inspections. Each sales offering 

will include an electronic or physical 

inspection period of at least 7 calendar 

days before the bid opening. 

(iii) Bid deposits. The selling agency 

may incorporate a requirement for 

bidders to provide or post a bid deposit 

or a bid deposit bond in lieu of cash or 

other acceptable forms of deposit to 

protect the government’s interest. 

(iv) PM bid deposits. PM offerings will 

include a 20 percent bid deposit. A 

deposit bond may be used in lieu of 

cash or other acceptable form of deposit 

when permitted by the sales offering. If 

awarded, the bid deposit will be applied 

to the total contract price. Unsuccessful 

bid deposits will be returned. Bid 

deposit bonds will be returned to the 

bidder when no longer needed to secure 

the property. 

(v) Payments. (A) Selling agencies 

will implement a payment policy, 

pursuant to 41 CFR chapter 102 that 

protects the government against fraud. 

(B) Acceptable forms of payment 

include but are not limited to: 

(1) Guaranteed negotiable instruments 

made payable to or endorsed to the U.S. 

Treasury in any form (e.g., cashier’s 

check, certified check, traveler’s check, 

bank draft, or postal or telegraphic 

money order). 

(2) Canadian postal money orders 

designed for payment in the United 

States must state specifically that they 

are payable in U.S. dollars in the United 

States. 

(3) Electronic funds transfer. Special 

instructions are available through the 

DLA Disposition Services Web site and 

must be followed if this option is 

chosen. 

(4) Credit or debit cards. 

(5) Combinations of payment methods 

in paragraphs (a)(6)(v)(B)(1) through (5) 

of this section. 

(6) Other acceptable forms of payment 

include: 

(i) Uncertified personal or company 

check for amounts over $25.00 

accompanied by an irrevocable 

commercial letter of credit issued by a 

U.S. bank, payable to the Treasurer of 

the United States or to the selling 

agency. The check may not exceed the 

amount of the letter of credit. Each letter 

of credit must be an original or clearly 

state on its face that reproductions of 

the original document may be 

considered as an original document, and 

clearly state that requests for payment 

will be honored at any time they are 

presented by the selling agency. Selling 

agents will reject letters of credit with 

an expiration date. In addition, the 

minimum criteria required for 

acceptance of letters of credit are to state 

clearly that it is a commercial letter of 

credit (it need not say it is irrevocable, 

but it cannot say it is revocable); be on 

bank stationery; state the maximum 

amount guaranteed; state the name and 

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78194 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

address of the company or individual 

submitting the bid; state the sales 

offering number and opening date; and 

be signed by the issuer (authorized 

signature of bank official). 

(ii) Uncertified personal or company 

checks in the amount of $25.00 or less 

when submitted for ancillary charges 

(e.g., debt payment, storage charge, 

liquidated damages, interest). 

(iii) Any form of payment received 

from a NAF instrumentality or a State or 

local government. 

(7) Acceptable country currencies and 

information on exchange rates used 

must be provided in the sales offering 

and be incorporated into the sales 

offering. Generally, the exchange rate for 

receipt of monies or payments in 

designated currencies is established on 

the date of the deposit, which is 

generally the date of receipt. 

(8) FEPP buyers must pay in U.S. 

dollars or the equivalent in foreign 

currency that is readily convertible into 

U.S. dollars. Where U.S. dollars are not 

available, the acceptance of foreign 

currency is authorized subject to these 

conditions: 

(i) Payments exceeding the equivalent 

of $5,000 U.S. in individual sale 

transactions (that is, for the total of all 

items offered in a single sale, not for 

individual items included in a sale) may 

be accepted only after obtaining prior 

approval from the Defense Finance and 

Accounting Service (DFAS). When 

required, DFAS will submit the requests 

through the chain of command to DoS 

and Department of Treasury for 

approval. In countries where a 

considerable amount of FEPP may be 

available for sale and it may be 

necessary to accept foreign currency, the 

selling agency will request from DFAS 

an annual authorization, on a calendar 

year basis, to accept foreign currency. 

(ii) Payments of up to the equivalent 

of $5,000 U.S. for individual 

transactions, at the rate of exchange 

applicable to the USG, may be accepted 

without further consultation if 

assurance has been obtained through the 

local DoS representative that such 

currency may be used in payment of any 

or all USG expenditures in the country 

whose currency is accepted. This 

provision is applicable only when 

annual authorizations have not been 

received; it is not feasible to sell for U.S. 

dollars or to ship the property to a 

country (other than the United States, 

except where property is a type 

authorized for return) where it may be 

sold for U.S. dollars or a freely 

convertible foreign currency; the 

currency is not that of a country whose 

assets in the United States are blocked 

by Department of Treasury regulations; 

the currency is that of a country with 

which the United States maintains 

diplomatic relations; and foreign 

currency accepted need not be the 

currency of the country of sale if the 

currency offered is otherwise acceptable 

to DoS and Department of Treasury and 

can be accepted pursuant to U.S. and 

host government agreements governing 

the sale of FEPP. In this connection, the 

sales offerings will indicate the foreign 

currencies that will be accepted for a 

particular sale. 

(vi) Transfer of title. Selling agencies 

must document the transfer of title of 

the property from the government to the 

purchaser: 

(A) By providing to the purchaser a 

bill of sale. 

(B) By notification within a contract 

clause stipulating when the transfer is 

affected. For instance: 

(1) Upon removal from the exact 

location specified in the sales offering. 

(2) Upon certification and signature 

by the government that all required 

demilitarization has been accomplished 

in accordance with DoD Instruction 

4160.28. 

(C) By providing certifications 

required from the buyer prior to a 

transfer of title. An SF 97, ‘‘Certificate 

of Release of a Motor Vehicle,’’ 

(available at http://www.gsa.gov/forms) 

is required for the sale of vehicles. 

Selling agencies must provide internal 

guidance on how the transfer will occur 

and what documentation is required. 

(vii) Defaults. If a purchaser breaches 

a contract by failure to make payment 

within the time allowed or by failure to 

remove the property as required, or 

breaches other contractual provisions, 

the purchaser is in default. The selling 

agency representative will give the 

purchaser a written notice of default 

and a period of time to cure the default. 

(A) If the purchaser fails to cure the 

default, the selling agency is entitled to 

collect or retain liquidated damages as 

specified in the sales offer or contract. 

(B) If a bid deposit was required and 

the bidder secured the deposit with a 

deposit bond, the selling agency must 

issue the notice of default to the bidder 

and the surety company. 

(viii) Disputes. All sales offers will 

include the disputes clause contained in 

48 CFR 52.233–1 of the FAR. 

(7) Bidder eligibility criteria. (i) As a 

rule, selling agencies may accept bids 

from any person, representative, or 

agent from any entity. To be considered 

eligible for award of a sales contract, the 

bidder must be of legal age and not be 

debarred, suspended, or indebted to the 

USG, or from a denied area. Any 

exceptions must be authorized by the 

selling agency head, who has 

determined that there is a compelling 

reason to make the award. A list of 

parties excluded from federal 

procurement and non-procurement 

programs can be obtained on the GSA 

Excluded Parties List System Web site at 

http://epls.gov or the OSD DEMIL Web 

site at https://demil.osd.mil/. 

(ii) Personal property may be sold to 

a federal employee whose agency does 

not prohibit the employees from 

purchasing such property. Unless 

allowed by a federal or agency 

regulation, employees having nonpublic information regarding property 

offered for sale may not participate in 

that sale. This applies to an immediate 

member of the employee’s household. 

(8) Suspension and debarment of 

bidders. (i) 41 CFR 102–38.170, 31 

U.S.C. 6101 note, Executive Order 

12549, ‘‘Debarment and Suspension’’ 

(February 18, 1986), and Executive 

Order 12689, ‘‘Debarment and 

Suspension’’ (August 16, 1989) provide 

the authority for the suspension or 

debarment of bidders or contractors 

purchasing personal property from the 

government. The selling agent must 

follow the procedures described in 48 

CFR subpart 9.4 of the FAR to debar or 

suspend a person or entity from the 

purchase of personal property. The 

debarring official for DLA Disposition 

Services sales is the DLA Special 

Assistant for Contracting Integrity. 

(ii) Appointed SARs and SCOs will: 

(A) Prepare recommendations for 

suspension or debarment from the sale 

of Federal property and acquisition 

contracts. 

(B) Forward them to their respective 

servicing legal offices. 

(C) Prepare reports recommending 

suspension or debarment using the 

procedures described in 48 CFR subpart 

209.4 of the Defense FAR Supplement, 

current edition, in all cases where 

purchasers are recommended for 

suspension or debarment. 

(iii) In addition to applicable 

guidance in 48 CFR subpart 9.4 and 48 

CFR 45.602–1, 52.233–1, and 14.407 of 

the FAR and 48 CFR subpart 209.4 of 

the Defense FAR Supplement, current 

edition, contractors who are suspended, 

debarred, or proposed for debarment are 

also excluded from conducting business 

with the government as agents or 

representatives of another contractor. 

Firms or individuals who submit bids 

on sale solicitations on behalf of 

suspended or debarred contractors, or 

who in any other manner conduct 

business with the government as agents 

or representatives of suspended or 

debarred contractors, may be treated as 

affiliates as described in 48 CFR 9.403 

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of the FAR, and may be suspended or 

debarred. 

(iv) Parties who violate trade security 

control (TSC) policies may be 

recommended for debarment or 

suspension. 

(9) Indebted bidders and purchasers. 

(i) No awards may be made to bidders 

indebted to the government. Selling 

agencies will coordinate with DFAS to 

determine if a bidder is indebted to DoD 

and maintain local listings containing 

bidder name, address, sales contract 

information, amount of indebtedness, 

and date indebted. 

(ii) Circumstances where the SAR or 

SCO must initiate action include: 

(A) At bid opening. Bidders can bid 

if they cure the debt prior to the 

opening. 

(B) As the result of monies owed the 

contractor as a refund. 

(C) As a result of monies received for 

bid deposit. 

(D) As a result of failure to make 

payment for overages, ancillary charges, 

etc. 

(E) As a result of affiliation with 

suspended bidder. 

(iii) Checks received for debts will be 

deposited immediately and the bidder 

will not be notified until the check has 

cleared its bank. Cash or negotiable 

instruments will be deposited 

immediately. 

(iv) SARs or SCOs will contact the 

bidder and advise that the monies have 

been deposited to offset the specific 

indebtedness. 

(v) If a SAR or SCO suspects 

affiliation, the SAR or SCO will contact 

the bidder and advise that the monies 

have been deposited according to the 

procedures in 31 U.S.C. 3711–3720E for 

the collection of debts owed to the 

United States. 

(10) Bid evaluation—(i) Responsive 

bids and responsible bidders. (A) Only 

responsive bids (as defined in the 

§ 273.12) may be considered for award. 

(B) Bidders do not have to use 

authorized bid forms. The bid may be 

considered when the bidder agrees to all 

of the terms and conditions and 

acknowledges that the offer may result 

in a binding contract award. 

(C) The selling agency must determine 

that the bidder is a responsible person 

or represents a responsible entity. 

(ii) Late bids. The selling agency will 

consider late bids for award if the bid 

was delivered in a timely fashion to the 

address specified in the sales offering 

but did not reach the official designated 

to accept the bid by the bid opening 

time due to a government delay. 

(iii) Bid modification or withdrawal. 

(A) A bidder may modify or withdraw 

its bid prior to the start of the bid 

opening. After the start of the sale, the 

bidder will not be allowed to modify or 

withdraw its bid. 

(B) The selling agency representative 

may consider late bid modifications to 

an otherwise successful bid at any time, 

but only when it makes the terms of the 

bid more favorable to the government. 

(iv) Mistakes in bids prior to award. 

(A) The administrative procedures for 

handling mistakes in bids (prior to or 

after award) are contained in 41 CFR 

102–38.260, which utilizes the 

processes of 48 CFR 14.407 of the FAR 

for federal property sales. 

(B) The selling agency head or 

designee may delegate the authority to 

make administrative decisions regarding 

mistakes in bid to a central authority or 

alternate. This delegation may not be redelegated by the authority or alternate. 

(C) A signed copy of the 

administrative determination must be 

included in the contract file and 

provided to the Government 

Accountability Office, when requested. 

(v) Bid rejections. In the event a bid 

is rejected, the next most advantageous 

bid may be considered. If an entire sales 

offering is rejected, all items within that 

sale may be reoffered on another sale. 

(vi) Identical bids. If there are 

multiple high bids of the same amount, 

the SAR or SCO must consider other 

factors of the sale (e.g., payment 

arrangements, estimated removal time) 

that would make one offer more 

advantageous to the government. 

Otherwise, the SAR or SCO may use 

random tie breakers to avoid expense of 

reselling or reoffering the property. 

(vii) Suspected collusion. The SAR or 

SCO must refer any suspicion of 

collusion to the agency’s Office of the 

Inspector General or the Department of 

Justice (DOJ) through its legal counsel. 

(viii) Protests. Protests by bidders 

regarding validity of determinations 

made on the sale of personal property 

may be submitted to the DLA 

Disposition Services Comptroller 

General or comptroller general for the 

selling agent. 

(11) Awarding sales contracts—(i) 

Selling agents. SARs or SCOs will: 

(A) Be appointed by agency heads or 

their designees to act as selling agents 

for the USG. 

(B) Enter into and administer 

contracts for the sale of government 

property pursuant to the provisions of 

40 U.S.C. 101 et seq. and other 

applicable statutes and regulations. 

(C) Award and distribute contracts to 

responsible bidders whose bids conform 

to the sales offering and are the most 

advantageous to the government. 

(D) Be authorized to reject bids in 

accordance with paragraph (a)(10)(v) of 

this section. 

(E) Sign under the title of ‘‘Sales 

Agency Representative’’ or ‘‘Sales 

Contracting Officer.’’ 

(F) Sign all contracting 

documentation on behalf of the USG. 

(G) Be responsible for the proper 

distribution of sales proceeds. 

(ii) Approvals required for sales and 

awards. (A) Selling agencies will 

designate the dollar limitations of 

authority of their appointed SARs or 

SCOs. DLA Disposition Services SCOs 

may make awards of contracts on sales 

of usable property having a fair market 

value of less than $100,000. Except for 

antitrust advice limitations, awards of 

scrap property do not require approval 

by higher authority. 

(B) Selling agencies will notify the 

U.S. Attorney General whenever an 

award is proposed for personal property 

with an estimated fair market value of 

$3 million or more or if the sale 

involves a patent, process, technique, or 

invention per 41 CFR 102–38.325. 

Selling agencies will otherwise comply 

with all requirements of 41 CFR chapter 

102 including but not limited to the 

prohibition to dispose any such item 

until confirmation from the U.S. 

Attorney General that the proposed 

transaction would not violate antitrust 

laws. 

(C) The head of a selling agency or 

designee must approve all negotiated 

sales of personal property. Selling 

agencies must submit explanatory 

statements for each sale by negotiation 

of any personal property with an 

estimated fair market value in excess of 

$15,000 through GSA to the House and 

Senate Oversight Committee to obtain 

approval for the sale in accordance with 

40 U.S.C. 549. 

(iii) Processing mistakes in bid after 

award, claims, disputes, and appeals. 

Keeping the interests of the government 

in the forefront, SARs or SCOs will 

process these actions expeditiously and 

fairly, in accordance with established 

internal and external regulations and 

laws. SARs or SCOs will respond to 

each issue pertaining to mistakes in 

bids, claims, disputes, or appeals until 

it is resolved and provide a written final 

decision to the claimant or adjudicating 

agency, as appropriate, until the issue is 

closed. Retain any decisions made or 

actions taken in regard to these issues as 

official records, as required by agency or 

higher authority directives. 

(12) Notification process for 

dissemination of awards information. (i) 

The selling agency may only disclose 

bid results after the award of any item 

or lot of property has been made. No 

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information other than names may be 

disclosed regarding the bidder(s). 

(ii) Bids are disclosed as they are 

submitted on spot bids or auctions. 

(13) Contract administration. Selling 

agencies will prescribe contract 

administration procedures for the 

various methods of sale, to include 

procedures for: 

(i) Disseminating award information. 

(ii) Billing. 

(iii) Default and liquidation. 

(iv) Establishing contract folders, 

including file maintenance and 

disposition. 

(A) Contract administration files will 

consist of a sale folder, financial folder, 

individual contract folder(s), and an 

unsuccessful bids folder for each sale. 

(B) Selling agencies will develop 

procedures for maintaining, completing, 

reviewing, and auditing these files. All 

pertinent documentation, including 

EUC, licenses, pre-award reviews, etc., 

must be included in the files. 

(C) Documentation found in these 

files may be subject to 5 U.S.C. 552, also 

known as the Freedom of Information 

Act. All Privacy Act, privileged, exempt, 

classified, For Official Use Only, or 

sensitive information must be 

obliterated prior to release to the public. 

(v) Collection and distribution of sales 

proceeds. 

(vi) Ensuring all requirements of the 

contract (e.g., non-payment, required 

licenses) are met prior to releasing the 

property. 

(vii) Making modifications to 

contracts resulting from changes to the 

original contract. 

(viii) Handling public requests for 

information. 

(ix) Timely review and closure of each 

contract. 

(x) Timely review and closure of each 

sale. 

(14) Cashier functions and SAR or 

SCO responsibilities. (i) Cashiers must 

be duly trained in the handling and 

processing of monies collected as 

payment on sales. 

(ii) Cashiers must credit sales 

proceeds in accordance with chapter 5 

of Volume 11A of DoD 7000.14–R, 

‘‘Department of Defense Financial 

Management Regulations (FMRs)’’ 

(available at http://

comptroller.defense.gov/fmr/current/

11a/11a_05.pdf). 

(15) Inquiries regarding suspended or 

debarred bidders. Refer all inquiries 

regarding suspended or debarred 

bidders to the office effecting the action. 

(16) Release requirements following 

sales. (i) Removal of property is subject 

to general and special conditions of sale 

and the loading table as set forth in the 

sale offering and resulting contract. 

(ii) Prior to releasing sold property, 

assigned personnel will: 

(A) Verify the sale items to be 

delivered or shipped to purchasers 

against the sale documents to prevent 

theft, fraud, or inappropriate release of 

property. 

(B) When DLA Disposition Services is 

managing the sale and where an inplace receipt memorandum of 

understanding (MOU) has been 

executed, installation commanders will 

provide, by letter designation and upon 

request from DLA Disposition Services 

site, the names, telephone numbers, and 

titles of those non-DLA Disposition 

Services site personnel authorized to 

release property located at their 

activities. As changes occur, installation 

commanders will provide additions, 

deletions, and revisions in writing to 

DLA Disposition Services. 

(C) Weigh property sold by weight at 

the time of delivery to the purchaser. 

(D) Count or measure property sold by 

unit at the time of delivery. 

(iii) Purchasers are required to pay, 

before delivery, the purchase price of 

item(s) to be removed, based upon the 

quantity or weight as set forth in the 

sale offering, except for term sales. If 

prepayment of an overage quantity is 

not practicable or possible, payment 

will be due upon issuance of a 

statement of account after release of 

property. Sales of property to State and 

local governments do not require 

payment prior to removal. The DLA 

Disposition Services contract with its 

sales partners does not require payment 

prior to delivery of property to State and 

local governments only. 

(17) Withdrawal from sale. (i) 

Property that has been physically 

inspected, determined to be usable or 

needed, and thereby has survived 

screening is eligible for sale and may be 

requested to satisfy valid requirements 

within limitations specified in this 

paragraph. Generally, property past the 

screening cycle may not be withdrawn 

from sale. However, circumstances may 

require the withdrawal of property from 

sale to satisfy valid needs within the 

Department of Defense or FCAs. 

Donation recipients are not eligible to 

withdraw property from the sale unless 

they can provide DLA Disposition 

Services with documentation that an 

error was made by DLA Disposition 

Services and they should have been 

issued the property or the property was 

never available for electronic screening 

in GSA personal property database 

GSAXcess®. 

(ii) In many instances, the property 

remains at a DLA Disposition Services 

site after the title has been transferred. 

This property is ineligible for 

withdrawal to satisfy DoD needs. If the 

DoD Component intends to pursue 

purchasing the property from the 

commercial partner, transactions must 

be handled between the partner and the 

DoD Component without intervention 

from the DLA Disposition Services. 

(iii) Pursuant to 41 CFR chapter 102, 

due to the potential for adverse public 

relations, every effort will be made to 

keep withdrawals from sales to a 

minimum. These efforts will include 

searching for assets elsewhere in the 

disposal process. Exceptions to this 

policy will be implemented only when 

all efforts to otherwise satisfy a valid 

need have been exhausted and the 

withdrawal action is determined to be 

cost effective and in the best interest of 

the government. DoD Component heads 

will ensure that withdrawal authority is 

stringently controlled and applied. 

(iv) Make requests to the selling 

agency by the most expeditious means. 

With the exception of ICP or IMM and 

NMCS orders, requests will provide full 

justification including a statement that 

the property is needed to satisfy a valid 

requirement. 

(v) Withdrawals may not be processed 

subject to property inspection for 

acceptability. Inspect property before 

requesting withdrawal. 

(vi) Orders submitted by ICPs or 

IMMs do not require justification 

statements before award. 

(vii) With the exception of ICPs and 

IMMs, minimum written information 

required in the package for withdrawal 

requests includes: 

(A) Detailed justification as to why 

the property is required, including how 

the property will be used; such as 

applicability of materiel to active 

weapons systems. 

(B) Mission impact statement from a 

support, procurement, and funding 

standpoint if property is not withdrawn 

from sale (e.g., the effect on operational 

readiness requirements within a 

specified period of time). 

(C) A summary of efforts made to find 

assets meeting the requirement from 

other sources, including consideration 

of substitute items. 

(viii) When the DLA Office of 

Investigations, TSC Assessment Office, 

determines that property was 

incorrectly described, and that TSC or 

DEMIL requirements are applicable, 

property will either be withdrawn or a 

provision made to accomplish TSC or 

DEMIL, as appropriate. The TSC 

Assessment Office may request 

withdrawal of property and suspend 

further action regarding the property 

until the matter is resolved in 

accordance with the procedures in DoD 

Instruction 2030.08. 

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(ix) As property moves through the 

sales cycle, constraints are placed on 

requests for withdrawals from sale. 

(A) The area manager can approve 

requests for withdrawal during the 

period between the end of screening and 

the date the property is referred to DLA 

Disposition Services for sale cataloging 

or until a delivery order is signed by the 

commercial venture partner. The area 

manager can also approve withdrawals 

prior to bid opening for items on 

authorized local sales. 

(B) DLA Disposition Services can 

approve withdrawal requests from date 

of referral until the property is awarded. 

DLA Disposition Services can also 

return requests for withdrawal after 

award that do not include the required 

written information. 

(x) DLA approval, with DLA legal 

concurrence, is required on any 

withdrawal request after the award but 

before removal. 

(xi) When title has passed to the 

purchaser, the requestor must work 

directly with the purchaser. This 

includes commercial venture property. 

The SAR or SCO will provide contract 

information when requested. 

(18) Reporting requirement. (i) In 

accordance with 10 U.S.C. 2583, the 

Secretary of Defense will prepare an 

annual report identifying each public 

sale conducted (including property 

offered for sale and property awarded) 

by a DoD Component of military items 

that are controlled on the U.S. 

Munitions List pursuant to 22 U.S.C. 

121 and assigned a DEMIL Code of B in 

accordance with DoD 4160.28–M 

Volumes 1–3. For each sale, the report 

will specify: 

(A) The date of the sale. 

(B) The DoD Component conducting 

the sale. 

(C) The manner in which the sale was 

conducted (method of sale). 

(D) Description of the military items 

that were sold or offered for sale. 

(E) The purchaser of each item, if 

awarded. 

(F) The stated end-use of each item 

sold. 

(ii) The report is submitted not later 

than March 31 of each year. The 

Secretary of Defense is required to 

submit to the Committee on Armed 

Services of the House of Representatives 

and the Committee on Armed Services 

of the Senate the report required by this 

section for the preceding fiscal year. 

DLA Disposition Services includes 

shipments made during the reporting 

period to its business partner. 

(19) Special program sales—(i) 

Resource recovery and recycling 

program. (A) All DoD installations 

worldwide will have recycling programs 

as required by DoD Instruction 4715.4 

with goals for recycling as outlined in 

Executive Order 13514. 

(1) Pursuant to 10 U.S.C. 2577 and 48 

CFR subpart 209.4 of the DFARS, each 

installation worldwide will have or be 

associated with a QRP or recycling 

program available to the installation to 

appropriately dispose of all recyclable 

materials for all activities. This includes 

all DoD facilities not on a military 

installation, tenant, leased, and 

government owned-contractor operated 

(GOCO) space. 

(2) Installations having several 

recycling programs will incorporate 

them into the single installation QRP if 

possible, however a separate recycling 

program may be established to 

appropriately dispose of recyclable 

materials that cannot be recycled 

through the QRP. 

(3) Each DoD Component will 

designate a coordinator for each QRP 

and ensure the GOCO facilities 

participate in QRP. 

(B) Recyclable material includes 

material diverted from the solid waste 

stream and the beneficial use of such 

material. It is beneficial to use waste 

material as a substitute for a virgin 

material in a manufacturing process, as 

a fuel, or as a secondary material. 

Examples of material that can be 

recycled through QRP are provided in 

Table 1 of this section and those that 

cannot be recycled through QRP are 

provided in Table 2 of this section, both 

from the complete list in DoD 

Instruction 4715.4. 

(C) Continually review each QRP to 

identify material appropriate for waste 

stream diversion, explore recycling 

methods, and identify potential markets. 

Additional recyclable material includes 

not only material generating profit, but 

material whose diversion from the waste 

stream generate a savings to the 

Department of Defense in disposal costs, 

or when diversion is required by State 

or local law or regulation. Material 

generated from non-appropriated or 

personal funds (e.g., post consumer 

wastes from installation housing, and 

installation concessions) may be 

included. 

TABLE 1—EXAMPLES OF MATERIAL THAT CAN BE RECYCLED THROUGH QRP 

EXAMPLES OF MATERIAL THAT CAN BE RECYCLED THROUGH QRP 

1 .................... Typical recyclable material found in the municipal solid waste stream (glass, plastic, aluminum, newspaper, cardboard, etc.). 

2 .................... Scrap metal from non-defense working capital fund activities. 

3 .................... Expended small arms cartridge cases that are 50-caliber (12.7 mm) and smaller not suitable for reloading that have been mutilated or otherwise rendered unusable and gleanings made unusable for military firing e.g., crushed, shredded, annealed, or 

otherwise rendered unusable as originally intended prior to recycling in accordance with DoD Instruction 4715.4, except overseas. 

4 .................... Storage and beverage containers (metal, glass, and plastic). 

5 .................... Office paper (high-quality, bond, computer, mixed, telephone books, and Federal Registers). 

6 .................... Commissary store cardboard and exchange store wastes (cardboard), if the commissary or exchange chooses to use the QRP. 

7 .................... Scrap wood and unusable pallets. 

8 .................... Rags and textile wastes that have not been contaminated with hazardous material or HW. 

9 .................... Automotive and light truck-type tires. 

10 .................. Used motor oil. 

11 .................. Food wastes from dining facilities. 

12 .................. Office-type furniture that is broken or too costly to repair. 

13 .................. Donated privately owned personal property. 

TABLE 2—EXAMPLES OF MATERIAL THAT CANNOT BE RECYCLED THROUGH QRP 

EXAMPLES OF MATERIAL THAT CANNOT BE RECYCLED THROUGH QRP 

1 .................... PM-bearing scrap. 

2 .................... Scrap metal generated from a defense working capital fund activity. 

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78198 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

TABLE 2—EXAMPLES OF MATERIAL THAT CANNOT BE RECYCLED THROUGH QRP—Continued 

3 .................... Items, such as MLI indicated in item 10. of this table, that must be demilitarized (DEMIL) at any time during their life cycle, except for small arms and light weapons brass and gleanings as described in item 3. of Table 1. 

4 .................... Hazardous materials and waste. 

5 .................... Material that can be reused by the government for their original purpose without special processing. These items may or may 

not be MLI or CCLI. 

6 .................... Repairable items (e.g., used vehicles, vehicle or machine parts). 

7 .................... Unopened containers of oil, paints, or solvents. 

8 .................... Fuels (uncontaminated and contaminated). 

9 .................... MLI or CCLI (Only DEMIL Code A items may be candidates for recycling.). 

10 .................. Printed circuit boards containing hazardous materials. 

11 .................. Items required to be mutilated prior to sale or release to the public. 

12 .................. Ammunition cans, unless certified as MPPEH Designated as Safe in accordance with DoD 4160.28–M Volumes 1–3 and DoDI 

4140.62. 

13 .................. Usable pallets, unless DLA Disposition Services states otherwise. 

14 .................. Electrical and electronic components (These may be MLI or CCLI eligible only for Electronics Demanufacturing and DEMIL or 

mutilation.). 

(D) Installation commanders 

authorized by their DoD Component 

head, as appropriate, may sell directly 

recyclable and other QRP materials, or 

consign them to the DLA Disposition 

Services for sale. If selling directly, 

installations will: 

(1) Maintain operational records for 

annual reporting requirements, review, 

and program evaluation purposes. 

(2) Manage processes, reports, and 

proceeds distribution in accordance 

with 41 CFR chapters 101 and 102 and 

DoD 7000.14–R. 

(E) Excluded material is identified in 

Attachment 2 to DoD Instruction 4715.4, 

which provides a guide of eligible and 

ineligible materials. 

(F) Although scrap recyclable 

materials do not require formal 

screening, those purchased with 

appropriated funds, as surplus property 

under the FPMR and FMR, are available 

to meet RTD requirements. 

(G) When sold directly by the 

installation, use proceeds to reimburse 

the installation level costs incurred in 

operating the recycling program. After 

reimbursement of the costs incurred by 

the installation for operations (e.g., 

operation and maintenance and 

overhead), installation commanders 

may use the remaining proceeds as 

authorized by DoD Instruction 4715.4. 

(ii) Commercial Space Launch Act 

(CSLA). (A) The purpose of the CSLA, 

51 U.S.C. Chapter 509, is to promote 

economic growth and entrepreneurial 

activity through the utilization of the 

space environment for peaceful 

purposes; encourage the private sector 

to provide launch vehicles and 

associated launch services; and to 

facilitate and encourage the acquisition 

(sale, lease, transaction in lieu of sale, 

or otherwise) by the private sector of 

launch property of the United States 

that is excess or otherwise not needed 

for public use, in consultation with 

Secretary of Transportation. Donation 

screening is not required prior to sale. 

(B) The DoD Chief Information Officer 

(DoD CIO) has the primary 

responsibility for coordinating DoD 

issues or views with the Department of 

Treasury, other Executive department 

organizations, and the Congress on 

matters arising from private sector 

commercial space activities, particularly 

the operations of commercial ELVs and 

national security interests. 

(C) The DLA Disposition Services is 

the primary office to conduct CSLA 

sales following the direction for pricing 

and disposition as specified in DoD 

Directive 3230.3 Sales will be by 

competitive bid to U.S. firms or persons 

having demonstrated action toward 

becoming a commercial launch 

provider. The DoD CIO and the 

Secretary of the U.S. Air Force (USAF) 

designated representative will support 

DLA Disposition Services, as necessary, 

in the sale or transfer of excess and 

surplus personal property to the private 

sector, including the identification of 

potential bidders and any special sales 

terms and conditions. The generating 

activity will assist, as necessary, in 

completing sales transactions. 

(b) Security assistance or FMS—(1) 

Statutory authority. Authority for 

security assistance is provided primarily 

under 22 U.S.C. 2751 et seq. (also 

known as the Arms Export Control Act) 

and annual appropriation acts for 

foreign operations, export financing, 

and related programs. 

(2) Security assistance program 

requirements. (i) Security assistance 

transfers are authorized under the 

premise that if these transfers are 

essential to the security and economic 

well-being of friendly governments and 

international organizations, they are 

equally vital to the security and 

economic well-being of the United 

States. Security assistance programs 

support U.S. national security and 

foreign policy objectives. 

(ii) In coordination and cooperation 

with DOS, the Defense Security 

Cooperation Agency (DSCA) directs, 

administers, and provides overall 

procedural guidance for the execution of 

security cooperation and additional DoD 

programs in support of U.S. national 

security and foreign policy objectives; 

and promotes stable security 

relationships with friends and allies 

through military assistance, in 

accordance with DoD 5105.38–M. 

(3) Foreign purchased property. 

Disposal initiatives and actions will be 

in accordance with DoD 5105.38–M or 

guidance provided by security 

assistance implementing agencies on a 

case-by-case basis. 

(4) FMS disposal process summary— 

(i) Defense disposal services. (A) FEPP, 

excess, and surplus personal property 

may be made available to foreign 

countries and international 

organizations designated as eligible to 

purchase property or services in 

accordance with 22 U.S.C. 2151, 2321b, 

2321j, 2443, 2751, and 2778 et seq. Such 

defense articles may be made available 

for sale under the FMS Program. 

Transactions under this authority are 

reimbursable. 

(B) FMS transactions are completed 

by use of letters of offer and acceptance 

and the procedures specified in DoD 

5105.38–M. 

(ii) Grant transfer of excess defense 

articles (EDAs). 22 U.S.C. 2321j 

authorizes the U.S. Government to grant 

transfer of EDA to eligible foreign 

governments. For a transfer under this 

authority, DoD funds may not be used 

for packing, crating, handling, and 

transportation except under certain 

circumstances consistent with the 

guidance in 22 U.S.C. 2321j(e). 

(iii) FMS transportation. (A) As a 

general rule, FMS customers are 

responsible for all transportation costs. 

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Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 78199 

(1) The transportation costs can be 

written into the letters of agreement or 

the items can be shipped on a collect 

commercial basis. The implementing 

DoD Component or DLA Disposition 

Services will identify exceptions to this 

rule. 

(2) Sensitive and some other FMS 

shipments may be made via the Defense 

Transportation System (DTS). 

(i) Sensitive shipments not going 

through the DTS must be routed through 

a DoD-controlled port (Delivery Term 

Codes 8, B, or C). See Appendix E, 

paragraph H.1, Part II of the Defense 

Transportation Regulations 4500.9–R, 

‘‘Defense Transportation Regulations’’, 

current edition (available at http://

www.transcom.mil/dtr/part-ii/dtr_part_

ii_app_e.pdf). 

(ii) For these shipments, the 

implementing agency will provide 

separate instructions and funds 

citations. Transportation arrangements 

may be made by the supporting 

Transportation Office or DLA 

Disposition Services. 

(B) Unless otherwise directed by the 

implementing agency or DLA 

Disposition Services FMS Office: 

(1) Send small items collect via 

Federal Express or other parcel service 

to designated freight forwarder. 

(2) Send less than truckload 

shipments collect via common carrier to 

designated freight forwarder. 

(3) Prepare and send DD Form 1348– 

5, ‘‘Notice of Availability/Shipment,’’ 

for larger than truckload shipments to 

freight forwarder or other designated 

address. Upon receipt of DD Form 

1348–5, the recipient will provide 

shipping instructions or advise of pickup date. If shipping instructions are not 

received within 15 days after DD Form 

1348–5 is issued, follow up with freight 

forwarder and notify DLA Disposition 

Services if they are the implementing 

agency. 

(4) For sensitive Delivery Term Code 

8 property, in accordance with Part II of 

the Defense Transportation Regulation 

4500.9–R, and hazardous material 

property, the supporting transportation 

office must ensure that the property is 

released in accordance with all 

applicable regulatory requirements. The 

preferred option is to let the supporting 

transportation office accomplish notice 

of availability and property shipment 

processes. 

(5) On rare occasions, property may 

be transferred on a no-fee basis. The 

implementing agency or DLA 

Disposition Services will provide 

appropriate instructions on a case-bycase basis. 

(C) In accordance with 22 U.S.C. 

2403, construction equipment, 

including but not limited to tractors, 

scrapers, loaders, graders, bulldozers, 

dump trucks, generators, and 

compressors are not considered EDA for 

purposes of this section. 

(iv) FMS eligibility. Eligibility for FMS 

is listed in Table C4.T2 of DoD 5105.38– 

M. Eligibility to receive excess property 

as a grant pursuant to 22 U.S.C. 2151, 

2321, 2751, 2778 et seq. is established 

by the DOS and provided to DSCA. DoD 

Components will follow the latest 

guidance from DSCA showing which 

countries are eligible under the various 

authorities. 

(v) Controlled assets. (A) Foreign 

countries and international 

organizations may screen and request 

DLA Disposition Services assets during 

DLA Disposition Services reutilization 

screening periods. 

(B) 10 U.S.C. 2562 prohibits the sale 

or transfer of fire equipment to foreign 

countries and international 

organizations until RTD has been 

accomplished. Fire equipment 

remaining after these periods may be 

made available to security assistance 

customers with a certification to DSCA 

that the property is not defective and 

has completed all required excess 

property processes. 

(C) DSCA will provide guidance for 

the transfer of items. 

(D) Pricing of FMS is governed by 

DoD 7000.14–R. 

(c) Reutilization or transfer, excess 

screening, and issue (includes donation 

of DLA Disposition Services assets)—(1) 

Authority and scope. (i) The provisions 

of this section are based on the 

guidelines of 41 CFR chapters 101 and 

102. 

(ii) The scope of this section includes 

the RTD screening, ordering, issuing, 

and shipment of DoD FEPP, excess, and 

surplus personal property. 

(A) These procedures apply to the 

Military Departments, FCAs, donees, 

eligible foreign governments and 

international agencies, and any other 

activities authorized to screen and order 

FEPP, excess, and surplus personal 

property. 

(B) See § 273.8 for additional 

guidance on the DoD HAP, LEAs, DoD 

or Service museums, National Guard 

units, Senior Reserve Officer Training 

Corps (ROTC) units, morale, welfare, 

recreational activities (MWRAs), the 

MARS, Civil Air Patrol (CAP), and DoD 

contractors. 

(C) See § 273.8 and paragraph (b) of 

this section for additional information 

on foreign governments and 

international organizations. 

(2) General. (i) DoD policy, in 

accordance with 41 CFR chapters 101 

and 102, is to reutilize DoD excess 

property and FEPP to the maximum 

extent feasible to fill existing needs 

before initiating new procurement or 

repair. All DoD activities will shop for 

available excess assets and review 

referrals for assets to satisfy valid needs. 

DLA Disposition Services provide asset 

referrals via front end screening to ICPs 

daily. See individual Military 

Department guidance regarding 

eligibility and authority to withdraw 

excess property from DLA Disposition 

Services. 

(ii) Customers can electronically 

request specific NSNs for orders, 

whether DLA Disposition Services 

assets are available at the time the need 

arises. When an asset becomes available 

in the DLA Disposition Services 

inventory, an electronic notification will 

be sent to the customer for initiating an 

official order. See paragraph (c)(3)(vii) 

of this section for procedures on the 

automated want lists. 

(iii) The UII mark, if applicable, will 

not be removed from a personal 

property item offered for RTD. 

(3) Screening for personal property— 

(i) Screening. (A) DoD reutilization is 

accomplished electronically via 

MILSTRIP and DLA Transaction 

Services, through the DLA Disposition 

Services Web site. 

(B) At the end of the DoD exclusive 

internal screening cycle, DoD excess 

property (excluding FEPP, scrap and 

HW) is transmitted to the GSAXcess®, 

and GSA assumes control of federal 

agency transfer and donation screening. 

The property remains in DLA 

Disposition Services accounts and can 

be viewed on their Web site. 

(C) GSA federal screening is 

accomplished through the GSAXcess®

platform that is a customer interface to 

the Federal Disposal System (FEDS). 

DoD personnel may shop in GSAXcess®

at any time and search and select 

property from DoD and other FCAs. 

Transportation costs for other FCA 

property are borne by the DoD screener. 

DLA Disposition Services makes 

shipping arrangements for DoD orders 

in GSAXcess® and includes the 

transportation costs in the cost of the 

item. 

(D) Enclosure 7 to DoD Manual 

4160.21, Volume 2 and Enclosure 3 to 

DoD Manual 4160.21, Volume 4 

provides additional information on 

screening for excess personal property 

by category. 

(E) All references to days are calendar 

days unless otherwise specified. 

(F) With electronic screening, 

physical tagging of property at a DLA 

Disposition Services site to place a 

‘‘hold’’ until an order has been 

submitted is no longer authorized. 

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78200 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

(G) DLA Disposition Services 

provides reasonable access to 

authorized personnel for inspection and 

removal of excess personal property. 

(ii) CONUS screening timeline for 

excess personal property—(A) 

Accumulation period. DLA Disposition 

Services accumulates property 

throughout the week as it is inspected 

and added to the inventory system. As 

property is added to the inventory 

system, it is visible for ordering by DoD 

customers only. This accumulation 

period ends each Friday, prior to the 

start of the official 42 day screening 

timeline. 

(B) DoD and Special Programs 

screening Cycle (14 days). DoD and the 

Special Programs identified in § 273.8 

have exclusive ordering authority 

during the first 14 days of the screening 

timeline. DoD reutilization requirements 

have priority during this cycle, and 

property will not be issued to Special 

Programs until the end of this cycle. 

(C) FCA and donees screening cycle 

(21 days). FCAs and GSA-authorized 

donees screen property in GSAXcess®

during the following 21 days. FCA 

requirements have priority during this 

cycle, and property will not be issued to 

donees until the end of this cycle. 

During this cycle, DoD will search and 

select property in GSAXcess® rather 

than submit MILSTRIP orders, with the 

exception of priority designator (PD) 

01–03 and NMCS requisitions. DoD 

customers will submit PD 01–03 and 

NMCS requisitions to DLA Disposition 

Services, who will immediately fill 

these orders and notify GSA to make the 

record adjustment in GSAXcess®. 

(D) GSA allocation to donees (5 days). 

The following 5 days are set aside for 

GSA to allocate assets to fill donee 

requests. During this allocation period, 

no GSAXcess® ordering can be made. 

(E) Final reutilization/transfer/

donation (RTD2) screening (2 days). The 

final 2 days of screening are available to 

all RTD customers for any remaining 

property on a first come, first served 

basis. 

(F) Table 3 of this section summarizes 

the priority of issue and the timelines 

associated with screening and issue of 

property. 

TABLE 3—SUMMARY OF SCREENING AND ISSUE TIMELINES IN ORDER OF ISSUE PRIORITY

RTD Method Eligibility Screening period Issuing period 

Reutilization ............................................................ DoD ........................................................................ Days 1–14 ............ Days 1–42. 

Reutilization ............................................................ Special Programs .................................................. Days 1–14 ............ Days 15–42. 

Transfer .................................................................. All Federal Agencies .............................................. Days 15–35 .......... Days 15–42. 

Donation ................................................................. Authorized GSA Donees ....................................... Days 15–35 .......... Days 36–42. 

RTD2 ...................................................................... All RTD Customers ................................................ Days 41–42 .......... Days 41–42. 

Sale ........................................................................ General Public ....................................................... N/A ....................... N/A. 

(iii) FEPP screening timeline. (A) 

Screening timeline and procedures for 

FEPP will generally follow those listed 

in paragraph (c)(3)(ii) of this section. 

(B) During contingency operations, 

the ASD(L&MR) may approve expedited 

screening timelines and changes to issue 

priorities. 

(iv) DoD screening methods. (A) DoD 

reutilization screening is accomplished 

electronically via MILSTRIP and DLA 

Transaction Services through the DLA 

Disposition Services Web site. If the 

electronic method is unsuccessful, 

please fax the following on agency 

letterhead: Name, phone number, point 

of contact, internet provider (IP) 

address, and two signatures of 

authorized individuals to DLA 

Disposition Services Reutilization Office 

at fax commercial 269–961–7348 or 

DSN 661–7348. 

(B) Local screening at the DLA 

Disposition Services sites is on-site 

(visual) viewing of excess property. 

Physical inspection of property may not 

be possible for assets at depot recycling 

control points (RCPs), receipts in-place, 

or remote locations. 

(v) GSAXcess® screening. (A) Users 

must obtain an access code from GSA to 

screen through GSAXcess®. To learn 

about GSAXcess® and obtain access 

code information, see: http://

apps.fss.gsa.gov/Manuals/Feds_Users_

guide. 

(B) DoD customers must obtain access 

from GSAXcess® to search and select 

property. The DoD Accountable 

(Supply) Property Officer must provide 

GSA a letter (on official letterhead) or 

email (from a ‘‘.mil’’ address) requesting 

access for their representatives and 

include addresses, phone numbers, 

email addresses, and DoDAAC of those 

authorized to select property from 

GSAXcess®. Customers may select items 

once the access is granted. 

(C) DoD customers who only want to 

search for available property in 

GSAXcess® can also register for search 

only access at www.gsaxcess.gov. 

(vi) Screening exceptions. Generally, 

property cannot be screened before it is 

entered on DLA Disposition Services 

site’s accountable records. However, 

instances where screening prior to entry 

may be justified include: 

(A) Property needed to fulfill 

emergency orders, (e.g., PD 01–03, 

NMCS, disaster relief) and which may 

be processed as a ‘‘wash-post’’ 

transaction. The DLA Disposition 

Services site must be able to fully justify 

these actions and ensure a signed 

receipt copy of the DTID is returned to 

the generating activity. 

(B) Backlog situations where usable 

property is in danger of being damaged 

by the elements due to a lack of 

adequate storage and an authorized 

customer is on location. 

(vii) Automated want lists. (A) 

Customers may use the automated prereceipt information to flag desired 

NSNs. Use of this tool does not 

guarantee the items will become 

available. If notified that the item is in 

the excess inventory, customers must 

use standard MILSTRIP order 

procedures. For more guidance, see 

https://www.dispositionservices.dla.mil/

rtd03/index.shtml. 

(B) Customers may submit automated 

searches for recurring NSNs through the 

DoD Property Search Web site at 

https://www.dispositionservices.dla.mil/

rtd03/index.shtml. Results are emailed 

to the customer. 

(C) Customers may also submit a 

‘‘Want List’’ in GSAXcess®, which can 

help them locate excess property from 

civilian agencies. 

(viii) Specialized screening for ICPs. 

(A) DLA Disposition Services will 

electronically report to designated ICPs 

those assets with valid NSNs meeting 

dollar value and condition code criteria 

established by each DoD Component. 

The notification will be sent 

electronically to the recorded DoD 

wholesale manager (ICP or IMM) 

concurrently with recording the excess 

in the DLA Disposition Services system 

for accounting for excess property in 

DoD. Component IMMs may view the 

NSNs they requested during the first 5 

days of the accumulation period before 

the items become available to other DoD 

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activities. The ICPs must send their 

request to: 

DLA Disposition Services, Hart-DoleInouye Federal Center, 74 North 

Washington Avenue, Suite 2429, Battle 

Creek, Michigan 49037. 

(B) The DoD ICP or IMM will screen 

these notifications to determine if needs 

exist. DLA Disposition Services site 

excesses will be reutilized to satisfy 

known or projected buy and repair 

needs. 

(C) Orders for property during the 

internal screening periods will be 

prepared according to MILSTRIP and 

submitted to DLA Disposition Services. 

(ix) Issues to and turn-ins by special 

programs and activities—(A) DoD HAP. 

(1) The DoD HAP is authorized to 

dispose excess property through DoD 

DLA Disposition Services site channels. 

(2) Providing non-lethal DoD excess 

personal property for humanitarian 

purposes is authorized pursuant to 10 

U.S.C. 2557. Preparation and 

transportation of this property is carried 

out in accordance with 10 U.S.C. 2661. 

HAP allows DoD to make available, 

prepare, and transport non-lethal, 

excess DoD property for distribution by 

DOS for humanitarian reasons. The 

program is managed by the DSCA Office 

of Humanitarian Assistance and 

Demining. 

(3) In most instances, property issues 

will be from DLA Disposition Services 

inventories. The most commonly 

requested types of property are medical 

equipment, field gear, tools, clothing, 

rations, light vehicles, construction, and 

engineering equipment. DLA 

Disposition Services sites will issue all 

property destined for the HAP, with the 

exception of drugs and biologicals 

(Federal Supply Classification Code 

(FSC) 6505), which may be issued 

directly by the Military Departments. 

HAP orders and issues will be 

documented on DD Form 1348–1A 

‘‘Issue Release/Receipt Document.’’ 

(B) LEAs. In accordance with 10 

U.S.C. 2576a, DLA has established an 

office to permit civil police authority to 

acquire excess DoD property, and the 

Web site https://

www.dispositionservices.dla.mil/rtd03/

leso/index.shtml provides information 

to assist with the process. LEAs can 

contact DLA Disposition Services at: 

DLA Disposition Services, Hart-DoleInouye Federal Center, 74 North 

Washington Avenue, Suite 2429, Battle 

Creek, Michigan 49037, Toll free: 1– 

877–DLA–CALL, DSN: 661–7766, 

Commercial/FTS 269–961–7766. 

(1) 10 U.S.C. 2576a authorizes the 

Secretary of Defense, in consultation 

with the Director, Office of National 

Drug Control Policy, and DOJ, to 

transfer excess DoD property, including 

small arms, light weapons, and 

ammunition, to federal and State LEAs, 

including counterdrug and 

counterterrorism activities. The federal 

program is known as the 1033 Program. 

The DLA Disposition Services has 

managerial responsibilities in support of 

such transfers and will establish 

business relationships with 

participating States by memorandum of 

agreement (MOA). 

(2) LEAs will return sensitive or 

controlled DEMIL-required property 

originally ordered from DLA Disposition 

Services when no longer needed. 

DEMIL-required equipment that is the 

responsibility of the LEA must be 

demilitarized in accordance with DoD 

4160.28–M Volumes 1–3. Due to 

constant changes and development of 

new technology, Table 4 of this section 

is only a partial list of NSNs that may 

contain radioactive components as 

identified for Army Navy (AN) night 

vision equipment codes in DoD 

4160.28–M, Volume 2. These NSNs and 

many others should not be transferred to 

DLA Disposition Services sites. The 

turn-in activity will verify with the DLA 

Disposition Services site whether 

equipment contains radioactive 

components before turning in any night 

vision equipment. 

TABLE 4—NSNS WITH RADIOACTIVE

COMPONENTS

NSN No. Radioactive 

component 

5855–00–053–3142 ... AN/TVS–4 (prototype) 

5855–00–087–2942 ... AN/PVS–1 

5855–00–087–2947 ... AN/PVS–2 

5855–00–087–2974 ... AN/PVS–1 

5855–00–087–3114 ... AN/TVS–2 

5855–00–113–5680 ... MX–8201 

5855–00–156–4992 ... AN/PVS–3A 

5855–00–156–4993 ... MX–8201A 

5855–00–179–3708 ... AN/PVS–2A 

5855–00–179–3709 ... MX–7833 

5855–00–400–2619 ... MX–7833A 

5855–00–484–8638 ... AN/TVS–2B 

5855–00–688–9956 ... AN/TVS–4 

5855–00–688–9957 ... AN/TVS–4 

5855–00–760–3869 ... AN/PVS–2B 

5855–00–760–3870 ... AN/TVS–4A 

5855–00–791–3358 ... AN/TVS–2A 

5855–00–832–9223 ... MX–7833 

5855–00–832–9341 ... AN/PVS–3 

5855–00–906–0994 ... AN/TVS–4 

5855–00–911–1370 ... AN/TVS–2 

5855–01–093–3080 ... AN/PAS–7A 

5855–00–087–3144 ... AN/TVS–2 

(C) DoD or service museums. (1) Legal 

authority is provided by 10 U.S.C. 2572, 

which allows the loan, gift, or exchange 

of specified historic or obsolete or 

condemned military property. Approval 

authority for museum acquisitions from 

DLA Disposition Services sites 

expressly for the purpose of exchange 

must be granted by the activity having 

staff supervision over the museum. 

Approval authority includes: 

(i) U.S. Army: Chief of Military 

History (DAMH–MD), 1099 14th Street 

NW., Washington, DC 20005–3402. 

(ii) U.S. Navy: Curator for the Navy, 

Naval Historical Center, Building 108, 

Washington Navy Yard, Washington, DC 

20374–0571. 

(iii) U.S. Air Force: Director, National 

Museum of the United States Air Force, 

HQAFMC, 1100 Spaatz Street, WrightPatterson AFB, Ohio 45433–7102. 

(iv) U. S. Marine Corps: Marine Corps 

History Division, 3079 Moreel Avenue, 

Quantico, Virginia 22134. 

(v) U.S. Coast Guard Coast Guard 

Historian, Commandant (CG–09224), 

U.S. Coast Guard Headquarters, Douglas 

a. Munro Building, 2703 Martin Luther 

King Jr. Avenue, South East Stop 7031, 

Washington, DC 20593–7031. 

(2) The DoD or Military Department 

museums will use standard DoD 

processes to dispose excess property 

using DoDAACs. 

(3) The DoD and Military Department 

museums may obtain property from 

DLA Disposition Services sites for use, 

display, or exchange. With the 

exception of historical artifacts, 

stockpiling of property obtained from 

DLA Disposition Services sources for 

future exchange is prohibited. 

(4) The normal ordering procedures 

apply. The DD Form 1348–1A, in 

addition to routine information, will 

include: 

(i) The museum’s individual DoDAAC 

or the DoDAAC of the Service 

headquarters with central responsibility 

for historical property. 

(ii) A statement if the property is to 

be used for display, exchange, or use 

(e.g., property needed to maintain the 

museums’ buildings and grounds, for 

day-to-day housekeeping operations, or 

to maintain displays). 

(iii) Only DEMIL Code ‘‘A’’ property 

is requested. Examples of DEMIL Code 

A items suitable for housekeeping 

purposes by DoD museums may 

include: Federal Supply Classification 

Groups (FSGs) 52—hand tools; 53— 

hardware; 55—lumber; 56— 

construction materials; 61—electric 

wire; 62—lighting fixtures; 71— 

furniture; 72—furnishings; 75—office 

supplies; 79—cleaning equipment; 80— 

brushes and paints. Orders of property 

for exchange will reflect the DoDAAC of 

the DoD Military Department museums. 

An exception to this procedure applies 

to M151 series, M561, and M792 

(Gamma Goat) vehicles. Although coded 

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78202 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

as DEMIL Code A, exchange of the 

vehicles is prohibited. 

(5) DLA Disposition Services sites 

will: 

(i) Ensure DEMIL Code A property 

ordered by a museum for exchange 

purposes has no current challenges to 

that code. This applies to all items 

whether recorded in the DLA Logistic 

Information Service Federal Logistics 

Information System Master Item File or 

not, including scrap and captured 

military items. Excluded are the M151 

series vehicles, hazardous property, and 

MLI and CCLI, which are not authorized 

for museum exchanges. 

(ii) Ensure authorized property 

ordered by museums for exchange is 

released to the ordering museum 

personnel only. Identification of the 

individual is required. These personnel 

must be military or civilian employees 

of the museum, not volunteers or 

members of the museums’ private 

supporting organizations. 

(6) The DoD operating activities and 

Military Departments will: 

(i) Maintain accountable records 

according to appropriate DoD and 

Service regulations of all items 

withdrawn from DLA Disposition 

Services sites, to include all materiel 

transactions, receipts from the DLA 

Disposition Services site, and transfer 

and exchange documents. 

(ii) Provide to DLA Disposition 

Services a list of all the DoD museums 

and Service museums authorized to 

negotiate with DLA Disposition Services 

sites, including the name of the 

institution, address, telephone number, 

and the DoDAAC of the museum. 

(D) National Guard units. (1) National 

Guard Units will use the standard DoD 

processes to dispose excess DoD 

property through the use of DoDAACs. 

(2) Issues of excess DoD property and 

FEPP to National Guard units must be 

approved by the National Guard Bureau 

or the U.S. Property and Fiscal Officer 

(USP&FO), or their authorized 

representative, for the State in which 

the National Guard unit is located. 

Requests received from National Guard 

units that do not contain the signature 

of the USP&FO, their authorized 

representative, or the National Guard 

Bureau, will not be honored. 

(E) Senior ROTC units. (1) Senior 

ROTCs will use standard DoD processes 

to dispose excess DoD property using 

DoDAACs. 

(2) Military Departments’ Senior 

ROTC units may obtain excess DoD 

property and FEPP from DLA 

Disposition Services sites to support 

supplemental proficiency training 

programs. Orders to DLA Disposition 

Services sites must be approved by the 

installation commander or designee, 

normally responsible for providing 

logistical support to the instructors 

group. Property will be issued to the 

accountable officer of the school 

concerned. 

(F) USCG. As a recognized military 

service and a branch of the U.S. Armed 

Forces, and due to the association of the 

USCG to the U.S. Navy, DLA 

Disposition Services will accept USCG 

(DHS) excess property, USCG excess 

DoD property and FEPP for disposal. 

The principles outlined in paragraph 

(c)(3)(i) through (viii) of this section 

apply. 

(1) USCG excess DoD property may be 

transferred to the nearest DLA 

Disposition Services site after internal 

USCG screening. Physical retention of 

the property by the USCG is preferred, 

especially if size or economics prevent 

physical transfer. 

(2) Property physically turned in to 

the DLA Disposition Services site does 

not qualify for reimbursement. 

(3) After the USCG completes all RTD 

screening for aircraft and vessels, DLA 

Disposition Services may provide sales 

services through an in-place MOU that 

outlines all USCG and DLA Disposition 

Services responsibilities. 

(4) USCG aircraft may be transferred 

to the Aerospace Maintenance and 

Regeneration Group (AMARG), DavisMonthan Air Force Base, Arizona, 

according to the ISSA between the 

USCG and the USAF. 

(5) USCG orders must include a 

citation as to the USCG directive 

authorizing the unit to obtain the 

property listed on the order. In addition, 

the fund citation for transportation must 

be included on the DTID. Individual 

floating and shore units of the USCG 

may be delegated authority to order 

excess DoD property without 

Commandant, USCG approval. Indicate 

the delegating authority on all orders. 

The DLA Disposition Services site need 

not validate the authenticity of the 

authority, but only the fact that such 

authorization appears on the order. 

(G) U.S. Army Corps of Engineers 

(COE) civil works property. (1) Based on 

the association of Civil Works with the 

U.S. Army, the COE will use 

Department of the Army DoDAACs to 

transfer personal property through DLA 

Disposition Services for disposal, 

including hazardous property through a 

service contract. 

(2) COE civil works activities may 

order property through DLA Disposition 

Services as a DoD activity, using an 

assigned Army DoDAAC or as an FCA, 

using an address activity code through 

GSAXcess®. 

(H) MAP Property and Property for 

FMS. DoD Directive 5105.22 and 

paragraph (b) of this section provide 

additional procedures for MAP property 

or for property that can be purchased by 

eligible organizations through FMS. 

(1) Following the country decision to 

dispose through DLA Disposition 

Services, the country and Security 

Assistance Office will determine, in 

coordination with DLA Disposition 

Services, the proper disposal method 

(e.g., DEMIL or mutilation requirements, 

security classification, reimbursement 

decisions). 

(2) DLA Disposition Services, in 

coordination with the country and 

Security Assistance Office will make 

provision for in-country U.S. personnel, 

with assistance from local personnel, as 

appropriate, to act as DLA Disposition 

Services agent where turn-in by the 

generating activity and physical 

handling by the DLA Disposition 

Services site is impractical. In addition 

to MILSTRIP documentation 

requirements of DLM 4000.25–1, the 

generating activity will include the 

following data on the electronic turn-in 

document or DTID for MAP items. 

(i) Country. 

(ii) DTID number, to include at a 

minimum, in the first position, a service 

code (B, D, K, P, or T); in the second 

position, a country or activity code in 

accordance with DoD Directive 5230.20, 

and in the third position, the Julian 

date. 

(iii) Identification of MAP Address 

Directory Security Assistance Offices 

initiating turn-in. 

(iv) MAP account fund citation. 

(3) Screen disposable MAP property 

for reutilization, FMS, and transfer to 

fill known federal needs. Process 

disposable MAP property surviving 

reutilization, FMS screening, and other 

transfers to sale. 

(4) Process MAP property used for 

any purpose other than to meet 

approved DoD needs for RTD or sale on 

a reimbursable basis. 

(5) The allocation of weapons, 

ammunition, flyable aircraft (rotary and 

fixed-wing) and selected property will 

be accomplished by DLA, as 

coordinated with the Office of Deputy 

Assistant Secretary of Defense for 

Supply Chain Integration. 

(6) All other excess DoD property will 

be processed through DLA Disposition 

Services on a first-come, first-served 

basis. 

(I) DoD contractors and contractor 

inventory. (1) The disposal of DoD 

contractor inventory is generally the 

contractor’s responsibility in accordance 

with 48 CFR 45.602–1 of the Federal 

Acquisition Regulation, unless the 

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Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 78203 

contract specifies that excess DoD 

property be returned to the government, 

as a result of a determination by the CO 

at contract expiration that DLA 

Disposition Services disposal would be 

in the best interests of the government. 

Property physically turned in to the 

DLA Disposition Services site does not 

qualify for reimbursement to the 

generating activity. 

(2) If property is purchased and 

retained by a DoD contractor, net 

proceeds from the sale of the property 

will be deposited into the generating 

activity’s suspense account. 

(3) DLM 4000.25–1 permits the 

Military Department or Defense Agency 

management control activity (MCA) to 

withdraw or authorize the withdrawal 

of specified excess DoD property from 

DLA Disposition Services sites for use 

as government-furnished material or 

government-furnished equipment to 

support contractual requirements. 

(4) Orders will be completed in 

accordance with Chapter 11 of DLM 

4000.25–1 and include the DoDAAC 

assigned to the contractor. These orders 

must be processed by the MCA having 

cognizance of the applicable contract. 

(5) Property ordered must be 

authorized and listed in the DoD 

contract(s) for which the property will 

be used, recorded in the ICP’s MCA 

responsible for the contract, and the use 

of the ordered property approved by the 

CO or CO’s representative (COR) for 

such contract(s). Each electronic or 

manual order (DD Form 1348–1A) must 

contain the signature and title of the CO 

or COR authorizing the withdrawal of 

excess DoD property from the disposal 

system. Each order must also contain 

the certification: ‘‘For use under 

Contract No(s). ll.’’ The certification 

should be signed by an authorized 

official and should indicate his or her 

official title. 

(6) DLA Disposition Services sites 

cannot guarantee the property 

withdrawn meets minimum 

specifications and standards in terms of 

quality, condition, and safety. 

(J) NAF activities. (1) Includes 

expense items and NAF resale goods 

procured by NAF activities such as 

military exchanges and MWRAs or 

Services, but excludes commissary store 

trust fund account equipment. 

(2) DLA Disposition Services will not 

process property typically reclaimed 

from customers by the military 

exchanges such as used batteries, tires, 

oils, etc., as a part of their normal 

business. The NAF must process 

property in accordance with the 

guidance shown under Army and Air 

Force Exchange Service in DoD Manual 

4160.21, Volume 4 for disposal of these 

assets. 

(3) Acceptable types of property will 

be processed for federal screening only 

and are not eligible for donation. They 

are eligible for reutilization or transfer 

provided the generating NAF activities 

waive reimbursement or negotiate 

reimbursement with the ordering 

activity. 

(i) The generating activity will 

provide a statement on the DTID that 

the property was purchased with NAF 

to obtain appropriate reimbursement. If 

the DTID does not contain this citation, 

the property will be processed as 

normal excess DoD property. 

(ii) In addition to standard entries, 

documentation will contain the unit 

cost (in lieu of the Federal Logistics 

Data acquisition cost) recorded in the 

financial and accounting records of the 

NAF activity. DLA Disposition Services 

sites will use this value for inventory, 

reporting, reutilization, transfer, and 

sale purposes. 

(iii) Reimbursement will be completed 

between the generating activity and the 

order for property reutilized or 

transferred. Sales proceeds will be 

deposited in accordance with Volume 

11a, chapter 5 of DoD 7000.14–R (unless 

otherwise directed or superseded). 

(4) DoD MWRAs or Services may 

order excess DoD property and FEPP 

through the MWRAs/Services that have 

a DoDAAC on file with the DAAS. 

Requests for small arms or light 

weapons must be ordered by servicing 

accountable officers only and be 

approved by the designated DoD focal 

point as identified in Table 4 of this 

subpart. See DoD Manual 4160.21 

Volume 4 for guidelines on reutilization 

of small arms and light weapons. 

(5) NAF property ordered by or 

through a servicing accountable officer 

will be used and accounted for the same 

as all procurements, according to 

applicable Military Department or 

Defense Agency procedures. 

(6) Orders received by DLA 

Disposition Services sites directly from 

an MWRA or Military Department 

accountable officer will be for 

administrative and other purposes from 

which individuals will realize no direct 

benefits. 

(7) Orders will contain the MWRA or 

Service account number, the signature 

of the MWRA or Service Accountable 

Officer, and a statement that the 

property obtained without 

reimbursement will be identified 

separately in accounting records from 

property for which reimbursement was 

made. The order will include the 

statement that, when such property is 

obtained without reimbursement is no 

longer needed, it will be turned in to the 

nearest DLA Disposition Services site 

and that no part of the proceeds from 

sale or other disposition will be 

returned to the MWRAs or Services. 

Perpetuate this information from the 

order in follow-on documentation. 

(8) If the property is not reutilized, 

transferred, or sold, DLA Disposition 

Services will notify the NAF activity 

that accountability will revert to the 

NAF activity and further disposal 

processing will be the responsibility of 

the NAF activity. If the DLA Disposition 

Services site has taken physical custody, 

the NAF activity will be responsible for 

retrieving the property. 

(K) MARS. (1) MARS is an 

appropriated fund activity that operates 

under the jurisdiction of the Military 

Departments and is an integral part of 

the DoD communication system. MARS 

units will use standard DoD processes to 

dispose excess DoD property using 

DoDAACs. 

(2) The Military Departments 

responsible for MARS are authorized to 

order excess DoD property and FEPP 

through their respective accountable 

officers. The following ordering 

stipulations apply: 

(i) Designation of accountable officers 

and representatives authorized to screen 

and obtain excess DoD property and 

FEPP at DLA Disposition Services sites 

is described in this section. 

(ii) The property ordered is for 

immediate use by a MARS member or 

member station for its intended 

purpose; property may not be acquired 

for storage. When property requested is 

to be used for reclamation, written 

approval for such action must be 

obtained in advance from the Military 

Department MARS chief in coordination 

with the accountable officer. Property 

ordered for reclamation is limited to 

materiel in DCC X or S. 

(iii) Excess DoD property and FEPP 

ordered from a DLA Disposition 

Services site for MARS may be shipped 

to a DoD activity or picked up at a DLA 

Disposition Services site by personnel 

who are appropriately identified and 

approved. Property ordered for 

reclamation is designated for local 

pickup only at the DLA Disposition 

Services site. Maintain accountability of 

residue in accordance with Military 

Department directives. 

(3) The accountable officer will 

maintain accountability for all property 

acquired and issued to MARS members 

and MARS member stations. The 

property remains government property. 

(4) When the property is no longer 

needed for use by the MARS, the 

accountable officer arranges for the 

equipment to be turned in to the nearest 

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78204 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

DLA Disposition Services site, if 

economically feasible. If it is not 

economically feasible to turn in the 

property, the accountable officer will 

employ A/D procedures according to 

Enclosure 4 of DoD Manual 4160.21, 

Volume 2. 

(5) The respective Military 

Department may limit MARS orders to 

selected FSCs. 

(6) The release of property to MARS 

activities is governed by the following 

procedures: 

(i) Army MARS. In CONUS, the 

authority to order and obtain excess 

DoD property and FEPP to fill valid 

requirements is vested in the 

accountable MARS Program Manager 

(MPM) appointed by the Chief, Army 

MARS. Outside the CONUS, the 

authority to order and obtain excess 

DoD property and FEPP for the Army 

MARS program is vested in the 5th 

Signal Command MARS Director 

(Europe); 1st Signal Brigade U.S. Army 

Information System Command 

(USAISC) (Korea); USAISC Japan; and 

USAISC Western Command (Hawaii). 

The MPM who is the accountable officer 

appointed by the Chief, Army MARS 

will originate and sign all orders. 

Process orders through the applicable 

accountable officer for MARS 

equipment. 

(ii) Navy/Marine Corps MARS 

(NAVMARCORMARS). In CONUS, the 

authority to originate orders for excess 

DoD property and FEPP to fill valid 

requirements in the 

NAVMARCORMARS program is vested 

in the Chief, NAVMARCORMARS; 

Deputy Chief, NAVMARCORMARS; 

Directors of the 1st, 2nd, 3rd, 4th, 5th, 

and 7th MARS Regions; and the Officer 

in Charge, Headquarters Radio Station. 

All orders must be signed by the Chief, 

NAVMARCORMARS, or the Deputy 

Chief, NAVMARCORMARS. Process 

orders through the applicable 

accountable officer. Outside the 

CONUS, the authority to originate 

orders comes from Chief, 

NAVMARCORMARS; the Deputy Chief, 

NAVMARCORMARS; or a regional 

director or a specific designee of the 

Chief, NAVMARCORMARS. Process 

orders through the applicable 

accountable officer. 

(iii) USAF MARS. The Office of the 

Chief, USAF MARS, and staff, active 

duty Installation MARS Directors 

(IMDs), and active MARS affiliates are 

authorized to screen and identify 

property for USAF MARS use. MARS 

affiliates are identified by a valid AF 

Form 3666, ‘‘Military Affiliate Radio 

System Station License and 

Identification Card,’’ signed by the 

Chief, USAF MARS. The IMD is 

appointed in writing by the installation 

commander or a designated 

representative; this appointment 

constitutes authority for screening and 

identification of property. Orders for 

property for MARS reutilization must be 

approved by the Chief, USAF MARS, or 

designated representative; this approval 

authority cannot be delegated. All 

approved orders will be processed 

through the USAF MARS Accountable 

Property Officer or designated alternate, 

who will initiate and sign a DD Form 

1348–1A to authorize release of 

identified property. Authority to sign 

release documents will not be delegated. 

The accountable officer maintains 

current and valid identification of their 

MARS members to prevent 

unauthorized screening by MARS 

members or former members. 

(L) CAP. (1) The CAP is the official 

auxiliary of the USAF and is eligible to 

receive excess DoD property and FEPP 

without reimbursement subject to the 

approval of the Headquarters USAF, 

CAP (HQ CAP–USAF). Title to the 

property is transferred to the CAP upon 

the condition that the property be used 

by the CAP to support valid mission 

requirements. Authority for the CAP 

members to screen and obtain excess 

DoD property will be in writing and 

signed by an authorized official of the 

CAP–USAF. HQ CAP–USAF retains the 

authority to approve and control the 

types and amounts of items obtained by 

the CAP. 

(2) The CAP will remain accountable 

for all property acquired from the DoD 

disposal system and will maintain and 

safeguard the property from loss or 

damage. The CAP and its members are 

strictly prohibited from selling, 

donating, or bartering property 

previously obtained from the DoD 

disposal system under any 

circumstances. 

(3) The CAP is not eligible to screen 

or receive AMARG aircraft reported by 

the Military Departments and other 

governmental agencies. If flyable nonAMARG category ‘‘A’’ aircraft made 

available for screening by an owning 

Military Department are selected for 

issue and approved by the HQ CAP– 

USAF to fulfill valid CAP mission 

needs, the following procedures apply: 

(i) Flyable aircraft. The head of the 

owning Military Department will issue 

the aircraft to the accounts specified by 

the HQ CAP–USAF, ensuring that data 

plates and all available historical and 

modification records accompany the 

aircraft. The aircraft will be issued to 

the CAP upon condition that it be used 

by the CAP to support valid mission 

requirements. Prior to issuance, the 

appropriate CAP corporate officer (wing 

commander or higher) will execute a 

conditional gift agreement that specifies 

that the aircraft (parts, etc.) be issued 

and delivered to AMARG when it 

becomes excess to CAP’s mission needs. 

When the aircraft is no longer needed by 

the CAP, or as otherwise directed by the 

HQ CAP–USAF, the CAP will make 

arrangements through the HQ CAP– 

USAF for issue and delivery of the 

aircraft, data plates, and historical and 

modification records to AMARG. 

(ii) Reclamation of parts. If the HQ 

CAP–USAF elects to allow the CAP to 

use the aircraft for parts reclamation, the 

HQ CAP–USAF will contact the owning 

Military Department to make 

arrangements concerning reclamation of 

parts by the CAP. If the CAP declines to 

reclaim parts and components from the 

aircraft, the CAP will arrange through 

the HQ CAP–USAF for issue and 

delivery of the aircraft, data plates, and 

historical and modification records to 

AMARG. 

(iii) CAP aircraft. All CAP aircraft 

delivered to AMARG will be reported to 

the GSA for use by FCAs and authorized 

donees. The CAP and its members are 

strictly prohibited from selling, 

donating, or bartering aircraft obtained 

from a Military Department under any 

circumstances. 

(4) The CAP units will use assigned 

DoDAACs beginning in ‘‘FG’’ to transfer 

and order excess personal property. 

(5) CAP members will identify 

themselves for pickup of property as 

stated in this section. 

(M) Federal Civilian Agencies (FCAs). 

(1) These organizations include any 

non-defense executive agency or any 

member of the legislative or judicial 

branch of the government. 

(2) The processes discussed in this 

section apply to FCAs transferring to 

and ordering excess DoD property from 

DLA Disposition Services sites. 

(3) FCAs that want to use DLA 

Disposition Services for disposition 

management instead of GSA are 

required to review and follow 

instructions provided on the DLA 

Disposition Services Web site and to: 

(i) Comply with 31 U.S.C. 1535 (also 

known as the Economy Act). 

(ii) Initiate an Economy Act Order 

with DLA Disposition Services 

Comptroller for establishing financial 

transactions. Final acceptance of the 

Economy Act Order constitutes 

authority for FCAs to use DLA 

Disposition Services. The Economy Act 

Order must be renewed on October 1 of 

each year. DLA Disposition Services 

transaction activity billing (TAB) rates, 

sales rates, and actual disposal rates are 

used for billing FCAs. TAB rates are 

available on the DLA Disposition 

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Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 78205 

Services Web site. DLA Disposition 

Services will bill and the FCA will pay 

all costs for services rendered. Billing 

documentation will include contract 

line item number, administrative, and 

services costs, and will be processed 

quarterly. 

(iii) Ensure all laws and regulations 

are properly met prior to initiating a 

transfer transaction. Use DoD 

Instruction 4160.28; 41 CFR chapters 

101 and 102; 48 CFR subpart 9.4 and 48 

CFR 45.602–1, 52.233–1, and 14.407 of 

the FAR, current edition; and 5 U.S.C. 

552, Volume 11a, Chapter 5 of DoD 

7000.14–R, and Office of Management 

and Budget Circular A–76, 

‘‘Performance of Commercial Activities’’ 

(available at http://

www.whitehouse.gov/omb/circulars_

a076_a76_incl_tech_correction) as 

governing documents. 

(iv) Comply with DLM 4000.25–1, 

since in-transit control requirements are 

not applicable to FCA turn-ins. 

(v) Comply with § 273.7(d), (e), and (f) 

for transferring excess DoD property, 

using DD Form 1348–1A or DD Form 

1348–2, ‘‘Issue Release/Receipt 

Document with Address Label,’’ as 

DTIDs. Schedule turn-ins with the DLA 

Disposition Services site and assume 

responsibility for delivering usable and 

scrap property to DLA Disposition 

Services sites. Non-hazardous property 

may be received in-place using the 

standard DoD receipt in-place processes. 

Hazardous property cannot be 

physically accepted at the DLA 

Disposition Services site and will be 

processed in-place only, in accordance 

with paragraphs (c)(3)(viii)(M)(3)(vi) and 

(vii) of this section. Property will 

normally be turned in as individual line 

items; however, batchlotting by FSC of 

non-hazardous items with a combined 

acquisition value of up to $800 is 

permitted. Identify the transaction by 

using their officially assigned FCA 

activity address code (AAC). The first 

position of the AAC begins with 1 

through 9. Annotate ‘‘XP’’ funding code 

in blocks 52 and 53 and a disposal 

authority code of ‘‘F’’ in position 64 of 

the DTID. Annotate the DLA Disposition 

Services Economy Act Order Assigned 

Number in block 27. Include 

appropriate hazardous property 

documents containing the required 

information found in Volume 4 of DoD 

4160.21–M. Ensure that no radioactive 

material, waste, or other excluded 

hazardous property is turned in to the 

DLA Disposition Services site. Cover 

costs associated with substantiated sale 

contracts claims, if negligence or fault is 

established. Contact the appropriate 

DLA Disposition Services site for 

procedures to use when inventory 

discrepancies surface for property that 

the FCA is designated the custodian. 

The FCA will research and provide a 

report of the lost, damaged, or destroyed 

property. Procedures are contained in 

accordance with Volume 12, Chapter 7 

of DoD 7000.14–R. 

(vi) Work with DLA Disposition 

Services to obtain HW disposal contract 

support, pursuant to the provisions of 

the FAR; for hazardous property, FCAs 

will define disposal service 

requirements for HW disposal and 

provide a yearly estimate of HW streams 

that may be generated and placed on 

DLA Disposition Services disposal 

service contracts; cover costs associated 

with substantiated contracts claims, if 

negligence or fault is established; 

maintain physical custody of hazardous 

property; provide a designated FCA 

representative to act as a CO’s technical 

representative during pickup of 

hazardous property, and identify who 

will be trained and authorized to release 

the property for shipment, including 

signing shipping documents according 

to the procedures provided in 49 CFR 

part 172, subpart H. 

(vii) Comply with the following 

liability provisions. Should any DLA 

HW disposal contractors’ actions on 

behalf of the FCA result in a notice of 

potential liability to DLA or the FCA 

under 42 U.S.C. 9601 et seq. (also 

known as the Comprehensive 

Environmental Response, Compensation 

and Liability Act), 42 U.S.C. 6901 et seq. 

(also known as the Resource 

Conservation and Recovery Act), or any 

other provision of federal or State law, 

immediate notification will be provided 

to DLA Disposition Services or the FCA. 

The FCA retains ultimate liability for 

hazardous property; FCAs will be 

responsible for environmental response 

costs attributable to their generated 

hazardous property. FCA is considered 

the generator for reporting purposes in 

accordance with 42 U.S.C. 6901 et seq. 

and 9601 et seq.; according to the terms 

of DLA Disposition Services HW 

disposal contracts, DLA Disposition 

Services disposal contractors are 

responsible for spills or leaks during the 

performance of their contracts, which 

result from the actions of the 

contractors’ agents or employees; at no 

time will the DLA Disposition Services 

site dispose FCA excess DoD property or 

any provision of a HW contract for FCA 

property be interpreted or construed to 

require that funds be obligated or paid 

in violation of 31 U.S.C. 1341 or any 

other provisions of law. 

(4) FCAs will: 

(i) Work with DLA Disposition 

Services for DEMIL-required disposal 

support in accordance with the 

provisions of DoD Instruction 4160.28. 

(ii) Reimburse DLA Disposition 

Services for A/D-related services. 

(iii) Continue to turn in PM-bearing 

property at no charge in support of the 

DoD PMRP according to the procedures 

in Enclosure 5 to DoD Manual 4160.21, 

Volume 2. These transactions are 

accomplished through an ISSA. 

(iv) Pay for all services rendered, 

according to established requirements 

and fees. 

(5) Two months prior to the Economy 

Act Order’s expiration, the FCA will 

notify the DLA Disposition Services 

Comptroller whether continued services 

are desired. 

(i) If the Economy Act Order has not 

been re-established, DLA Disposition 

Services will continue to receive 

property for 60 days. 

(ii) FCAs will continue payments 

until all property that was received 

within the fiscal year has been 

processed, even if the Economy Act 

Order has expired. 

(iii) FCAs will pay at the rates 

established or re-established and 

maintain internal procedures to track 

DTIDs against billings for reconciliation. 

(6) The policies in 41 CFR chapter 101 

will be implemented when: 

(i) An official Economy Act Order is 

finalized and the DLA Disposition 

Services Finance Office ensures that an 

officially assigned FCA AAC is in the 

DLA Disposition Services Accounting 

System. (This will indicate to DLA 

Disposition Services sites that receipt of 

excess property from the requesting 

FCA is authorized.) 

(ii) A provisional copy or signed copy 

of a DD Form 1348–1A is the instant at 

which accountability for the FCA 

property (non-hazardous or hazardous) 

is transferred to a DLA Disposition 

Services site. 

(7) If at any time any issue requires 

resolution, a team approach will be used 

at the turn-in activity and DLA 

Disposition Services site level. Disputes 

that cannot be resolved will be elevated 

to the next corresponding level of the 

FCA and the DLA Disposition Services. 

If necessary, alternative dispute 

resolution will be used. 

(8) DLA Disposition Services sites 

will: 

(i) Reserve the right to refuse any turnin due to workload or resource 

constraints if support would seriously 

impair the DLA mission for the DoD. 

(ii) Receive and screen FCA property 

using the same method used for excess 

DoD property, except property will not 

be made available to those special 

program organizations who, because of 

enabling legislation, may only obtain 

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78206 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

excess DoD property; e.g., HAP, law 

enforcement support offices, and SEAs. 

(9) Sales proceeds, if any, will be 

deposited into the U.S. Treasury as 

miscellaneous receipts, unless 

otherwise specified by law. No 

reimbursement of proceeds will be 

made to the FCA. Contract claims 

resulting from the sale of federal 

property may be the responsibility of 

the FCA. 

(10) For hazardous property, DLA 

Disposition Services will notify FCAs of 

any: 

(i) New procedures pertaining to the 

disposal process or funding changes. 

HW contracts may be modified by 

mutual written consent of the parties. 

Modifications requiring resource 

changes may be given with enough 

advance notification for revisions or 

adjustments to be made during the 

budget formulation process and the 

hazardous disposal service contract 

process. 

(ii) Proposed changes to 

administrative support costs at least 60 

days in advance of a change. 

(11) DLA Disposition Services will 

ensure DEMIL-required property and 

property that may require export 

controls are processed appropriately. 

Property requiring DEMIL may be 

shipped to an alternate location either 

by DLA Disposition Services or by an 

FCA. These charges are included in the 

TAB rates. 

(12) FCAs desiring to order excess 

DoD property from DLA Disposition 

Services sites will follow the GSA 

procedures for acquiring property 

through GSAXcess®. Once excess DoD 

property is physically obtained from 

DLA Disposition Services, the property 

belongs to and must be disposed by the 

FCA. This includes property that is 

DEMIL or mutilation required. Turn-in 

of previously ordered property from the 

DLA Disposition Services will be 

accepted from only those FCAs that 

have established an Economy Act Order. 

(13) FCAs may continue to participate 

in the DoD PMRP at no charge, in 

accordance with Enclosure 5 to DoD 

Manual 4160.21, Volume 2. These 

transactions are accomplished via an 

ISSA between DLA Disposition Services 

and FCAs. 

(O) U.S. Postal Service (USPS). (1) 

USPS is not authorized to dispose 

excess DoD property through DLA 

Disposition Services without an FCA 

intragovernmental agreement. 

(2) If such an agreement is executed: 

(i) Items of a strictly postal nature, 

such as a carrier satchel embossed ‘‘U.S. 

Mail,’’ postal scales, or other equipment 

so similar in nature or design to official 

USPS equipment as to cause confusion 

may not be turned in to DLA 

Disposition Services sites, sold, or 

disposed to the general public until the 

USPS has been notified of the intended 

disposition and offered an opportunity 

to inspect the equipment. DLA 

Disposition Services sites will notify 

local post office inspectors of the 

existence of this property and arrange 

for its inspection if the USPS wants to 

prevent it from falling into the hands of 

unauthorized persons. 

(ii) DoD purchased or owned postal 

equipment with official postal 

identification markings may be 

transferred to the USPS through DLA 

Disposition Services site processing, 

under the standard transfer policies in 

41 CFR chapter 101. If transferred from 

DoD Components without going through 

an official DLA Disposition Services 

site, the DoD activity will negotiate with 

USPS for fair market reimbursement. 

(iii) Property not transferred that 

contains markings that would tend to 

confuse this property with official USPS 

equipment will have the markings 

removed before release for DLA 

Disposition Services site processing. 

(iv) Excess DoD postal equipment 

loaned to DoD Components by the USPS 

will be returned to the USPS. 

(P) American National Red Cross. 

Property that was processed or donated 

by the American National Red Cross to 

a Military Department and becomes 

excess DoD property may not be 

disposed without notice to and 

consultation with the American 

National Red Cross. This property will 

be returned without reimbursement to 

the American National Red Cross upon 

request, if that organization pays 

packing and shipping costs. 

(Q) DoD Computers for Learning 

(CFL). The DoD CFL program 

implements Executive Order 12999, 

‘‘Educational Technology: Ensuring 

Opportunity for All Children in the 

Next Century’’ and enables DoD to 

transfer excess IT equipment to prekindergarten through grade 12 schools 

and educational non-profit 

organizations through a DLA 

Disposition Services Web-based 

program. The DLA Disposition Services 

program replaces the DoD Computers 

for School, Educational Institution 

Partnership Program that was overseen 

by the Defense Information Systems 

Agency. 

(1) Eligible educational organizations 

serve pre-kindergarten through grade 12 

students and are public, private, or 

parochial schools or educational 

nonprofits classified as tax-exempt 

under section 501c of the United States 

tax code. Schools and educational 

nonprofits must be located within the 

United States and its territories. 

(i) Schools must register in the DLA 

Disposition Services Web-based CFL 

program and complete all point of 

contact and profile information. 

(ii) Schools must ensure that IT 

equipment transferred will be used for 

student and faculty training to augment 

existing IT equipment, to strengthen 

their infrastructure, or for other 

academic-related programs. 

(iii) All costs incurred in connection 

with the transfer of equipment through 

the CFL will be the responsibility of the 

school and include: Expenses in 

connection with the school’s inspection 

of the IT equipment at DoD sites; cost 

of packing, crating, marking, and 

loading the equipment on the carrier’s 

conveyance for transportation; and cost 

of transportation from DoD sites. 

(2) DoD IT equipment FSG 70 with a 

DEMIL Code of A and DEMIL Code of 

Q with an Integrity Code of 6 that is 

located in CONUS and has been 

accepted to a DLA Disposition Services 

site’s accountability records is eligible 

for transfer within DoD CFL once DoD 

screening is complete and the inventory 

is not requisitioned by DoD. 

(3) IT equipment is available on an 

‘‘as-is’’ basis, without warranties from 

DoD as to the condition of the 

equipment. Eligible equipment includes 

mainframes, minicomputers, 

microcomputers, modems, disk drives, 

printers, and items that are defined 

within the FSG 70 and are appropriate 

for use in CFL. 

(4) After the DoD excess screening is 

completed, providing there are no DoD 

requests, DLA Disposition Services will: 

(i) Make provisions for schools to 

receive information concerning DoD IT 

equipment that is available for transfer. 

(ii) Notify the schools of available 

equipment that matches the profile 

submitted by the school. 

(iii) ‘‘Freeze’’ the equipment when the 

school verifies a need so that other 

schools cannot be offered the same 

equipment. 

(iv) Review, approve, and notify 

generating activities to transfer to a 

school by generating a MRO from DLA 

Disposition Services system for 

accounting for excess surplus property 

in DoD to decrement quantity and 

preclude transmission to the FEDS. 

(v) While holding for transfer to 

schools, the following applies: 7-day 

accumulation (DoD can order anytime) 

and 14-day DoD screening (DoD can 

order anytime). 

(vi) On day 14, if still available, DLA 

Disposition Services will freeze the 

property and create a MILSTRIP 

initiating a transfer to school 

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Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 78207 

transaction. DLA Disposition Services 

will send MILSTRIP to the generating 

activity, who will arrange for the school 

to remove the item. Schools authorized 

a transfer are responsible for arranging 

the pickup or shipping of IT equipment. 

(vii) The IT equipment not designated 

to schools during the DoD CFL 

timeframe will be transmitted to 

GSAXcess® for FCAs and donees. 

(viii) Generating activities can specify 

a school for intended transfer once DLA 

Disposition Services has accountability 

of the equipment, through the DLA 

Disposition Services Web-based CFL 

program. From the DLA Disposition 

Services Home Page, the user may click 

on Property Search for Military, Federal, 

State, and Special Programs, then click 

on ‘‘Computers for Learning.’’ The CFL 

Program enables the generating activity 

to view the IT equipment that was 

turned in under their DoDAAC and then 

designate that equipment to approved 

schools. The generating activity has 7 

days to make this selection; otherwise, 

the equipment can be viewed by any 

eligible educational activity. 

(ix) Equipment not identified by a 

generating activity for a specific school 

will be made available to schools and 

educational non-profit organizations 

that are approved within CFL. 

(x) The authorized school is 

responsible for coordinating with the 

generating activity for the removal of 

equipment. 

(xi) The authorized school has 14 

days after receipt of authorization to 

remove the equipment. 

(xii) If the school does not remove the 

equipment within the 14 days, the 

generating activity will notify the DLA 

Disposition Services site of the nonremoval. 

(xiii) Upon receipt of notification, the 

DLA Disposition Services site will 

notify DLA Disposition Services to 

cancel the order. 

(R) Firefighter Transfer Program. The 

DoD has authorized the U.S. Department 

of Agriculture Forestry Service (USDA 

FS) to manage DoD firefighting property 

transfers provided for in accordance 

with 10 U.S.C. 2576b. Title to all 

Firefighter Property Transfer Program 

property will pass to the State upon: 

(1) The State taking possession of the 

equipment (such as removing or having 

the equipment removed from a DLA 

Disposition Services site). 

(2) The State receiving a DD 1348, 

‘‘DoD Single Line Item Requisition 

System Document (Manual),’’ or SF 97 

or both for the equipment. The DD Form 

1348 or SF 97 will indicate which 

property requires DEMIL (DEMIL Codes 

C, D, and F). 

(3) The USDA FS will track all 

equipment requiring DEMIL until final 

disposition and require the State to 

ensure that such equipment is either 

transferred to another DoD agency 

authorized to receive it or is returned to 

a DLA Disposition Services site when 

no longer required. USDA FS will 

require the State coordinate any such 

transfers and returns with the 

Distribution Reutilization Policy 

Directorate at DLA prior to the transfer. 

The recipients are responsible for 

funding shipment or removal. 

(x) Expedited processing (EP). (A) EP 

is the approved reduction of screening 

timeframes. In the zone of interior (ZI), 

EP may be used on a case-by-case basis. 

Situations where EP may be considered 

include backlog situations, potential 

deterioration from outside storage, or 

other compelling reasons. 

(B) GSA is the approving authority for 

EP for non-DEMIL required property 

within the ZI. DLA Disposition Services 

is the approving authority for DEMILrequired property within the ZI. 

(C) Current automation technology 

allows items going through EP to be 

visible on the DLA Disposition Services 

Web site and GSAXcess®. 

(D) In contingency operations the 

supported Combatant Command has the 

authority to accelerate screening 

timelines based on mission 

requirements and operational tempo. 

(xi) Screener identification and 

authorization. (A) Individuals visiting 

DLA Disposition Services sites to view, 

order, or remove property or for any 

other reason are required to provide 

proper identification as authorized 

representatives of a valid recipient 

activity. 

(1) Upon arrival at the DLA 

Disposition Services site, the 

individuals will sign the vehicle or 

visitor register indicating the vehicle 

registration number and the purpose of 

their visit. 

(2) Visitors representing donation 

recipients will only be allowed to 

complete the tasks identified under 

‘‘purpose of visit’’ on the vehicle or 

visitor register. 

(3) All screeners will specify the 

DoDAAC or AAC for which they are 

inspecting. 

(B) DoD screeners will further identify 

themselves as authorized 

representatives of a DoD Component by 

means of a current employee or Military 

personnel identification issued by the 

DoD activity. 

(C) FCA screeners will present current 

employee identification as valid 

authorization. This also applies to 

screeners representing mixed-ownership 

USG corporations. 

(D) Non-federal screeners will present 

an authorization on the letterhead of the 

sponsoring activity, identifying the 

bearer and indicating the nature of the 

authorization. This letter of 

authorization will be updated at least 

annually or as changes occur. 

(E) All SEA screeners will present a 

valid driver’s license or other Stateapproved picture identification or the 

letter of authorization. 

(F) DLA Disposition Services sites 

will refer problems in identifying 

screeners to the activity commander. 

For FCA and donation screeners, refer to 

the proper GSA regional office. 

(xii) Screening for property at DLA 

Disposition Services sites. (A) DLA 

Disposition Services sites will assist 

customers interested in obtaining 

property by referring them to the DLA 

Disposition Services Web site or by 

providing guidance for physical 

inspection and location of property. 

Assistance may also include use of a 

customer-designated personal computer 

to screen assets worldwide and establish 

a pre-defined customer want list. 

(B) When a prospective donation 

recipient contacts a DLA Disposition 

Services site or military installation 

regarding possible acquisition of surplus 

property, the individual or organization 

will be advised to contact the applicable 

SASP for determination of eligibility 

and procedures. 

(4) Orders for FEPP, excess, and 

surplus property from DLA Disposition 

Services and GSA—(i) General. (A) DoD 

activities, FCAs, and other authorized 

activities are permitted to order DoD 

FEPP, excess, and surplus personal 

property based on the property status at 

the time the authorized screener 

identifies its availability from the DLA 

Disposition Services Web site. This 

property may be ordered through DLA 

Disposition Services or GSA. 

(B) DLM 4000.25–1 requires orders for 

property on the DLA Disposition 

Services site’s accountable records to be 

prepared on DD Forms 1348–1A or 

1348–2. The use of the DLA Disposition 

Services Web site allows orders to be 

processed without hard copies of DD 

Forms 1348–1A or 1348–2. A separate 

order is required for each line item on 

a DLA Disposition Services site’s 

inventory (except batchlots that are 

grouped together). The shopper will 

furnish the appropriate information 

either electronically or by hard copy. 

(C) Orders for property in the GSA 

screening cycle will be submitted 

through GSAXcess®. Customers are 

required to complete and submit the SF 

122 ‘‘Transfer Order Excess Personal 

Property’’ to GSA. GSA will then 

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78208 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

transmit the order to DLA Disposition 

Services. 

(D) DoD activities (other than MWRAs 

or Services, which are covered in 

§ 273.6) must request Military 

Department or Defense Agency excess 

and FEPP through servicing accountable 

officers or their designated 

representatives. 

(E) See § 273.6 for special guidance 

affecting USCG ordering. 

(F) U.S. Army accountable supply 

officers should check with their finance 

accounting office prior to requesting 

items from DLA Disposition Services. 

Often, Army customers are billed 

internally for the items they have 

ordered from DLA Disposition Services. 

(G) The following principles apply to 

acquiring property from these sources, 

including Federal regulations, which 

apply to the Department of Defense, 

special programs and activities, FCAs, 

and donees when acquiring excess or 

surplus personal property: 

(1) There must be an authorized 

requirement. 

(2) The cost of acquiring and 

maintaining the excess personal 

property (including packaging, 

shipping, pickup, and necessary repairs) 

does not exceed the cost of purchasing 

and maintaining new materiel and does 

not exceed the value of property 

requested. 

(3) The sources of spare parts or repair 

and maintenance services to support the 

acquired item are readily accessible. 

(4) The supply of excess parts 

acquired must not exceed the life 

expectancy of the equipment supported. 

(5) The excess personal property will 

fulfill the required need with reasonable 

certainty without sacrificing mission or 

schedule. 

(6) Excess personal property must 

NOT be acquired with the intent to sell 

or trade for other assets. 

(7) DoD activities will request only 

that property that is authorized by the 

parent HQ or command. Activities may 

not request quantities of property 

exceeding authorized retention limits. 

(H) The special screening programs 

will request only property that is 

authorized by the program or activity 

accountable officer or program manager, 

whichever is applicable. If the special 

screening programs want DLA 

Disposition Services site to verify the 

FSC has been authorized before release, 

the accountable officer or program 

manager must provide a current 

authorized FSC list to the DLA 

Disposition Services site. The removal 

agent must sign any certification 

required, acknowledging understanding 

of rules of disposal, prior to removal of 

the property. 

(I) The Military Department 

accountable officer who designates DoD 

individuals to sign orders on their 

behalf must provide DLA Disposition 

Services sites with an electronic letter of 

authorization, identifying those 

individuals. The template for the letter 

is on the DLA Disposition Services Web 

site. It will include the full name, 

activity, DoDAAC, telephone number, 

address, and signature of the 

individuals authorized to sign and 

authenticate MROs. These individuals 

may be different from those who are the 

initial shoppers or those picking up the 

property. 

(ii) Emergency requests. (A) 

Telephone requests during non-duty 

hours may be made by contacting the 

DLA Disposition Services staff duty 

officer (SDO) (DSN 661–4233; 

Commercial, 269–961–4233). Under 

these circumstances, the SDO will 

record the request and will contact the 

DLA Disposition Services program 

manager to initiate proper action. 

(B) If a DoD activity has an emergency 

need for a surplus DoD item in the 

possession of a SASP, it may be 

requested from that SASP. The 

acquiring DoD activity must pay any 

costs of care, handling, and 

transportation that were incurred by the 

SASP in acquiring this property. 

(C) For requests for property to fill 

training aid and target need orders, see 

‘‘Training Aids and Target 

Requirements’’ in paragraph 147 of 

Enclosure 3 of DoD Manual 4160.21, 

Volume 4. 

(iii) Late orders. (A) If a DoD order is 

received after the screening timeline has 

expired, the customer will provide 

justification as to the true necessity for 

the property requested, indicating why 

other comparable property in the DLA 

Disposition Services inventory does not 

satisfy the need. See paragraph (a) of 

this section for more guidance if the 

property needs to be withdrawn from 

sale. 

(B) Orders for property received 

during the GSAXcess® screening period 

must be submitted according to GSA 

ordering procedures. 

(iv) Requests for small arms and light 

weapons. Small arms and light weapons 

(see § 273.12) will be processed 

according to the guidance in DoD 

Manual 4160.21, Volume 4. Table 5 of 

this section contains a list of Military 

Department and Defense Agency 

designated control points authorized to 

initiate orders or through which orders 

must be routed for review and approval 

before issue can be effected. 

TABLE 5—DOD DESIGNATED CONTROL POINTS FOR SMALL ARMS AND LIGHT WEAPONS ORDERING, REVIEWING, AND

APPROVING

Service/Agency Control point 

Army ..................................................... Director of Armament and Logistics Activity, Chemical Acquisition, ATTN: AMSTA–AC–ASI, Rock Island, IL 61299–7630, Telephone: DSN 793–7531, Commercial: (309) 782–7531. 

Air Force ............................................... WR–ALC/GHGAM, 460 Richard Ray Blvd. Suite 221, Robins AFB, GA 31098–1640, Telephone: DSN 

497–2877, Commercial: (478) 327–2877. 

Marine Corps ........................................ Commandant of the Marine Corps, ATTN: LPC, Headquarters, U.S. Marine Corps, 3000 Marine Corps, 

Pentagon, RM 2E211, Washington, DC 20350, Telephone: DSN 225–8900, Commercial: (703) 695– 

8900. 

Coast Guard ......................................... Commandant, ATTN: CG–7211, Commandant (CG–7211), U.S. Coast Guard HQ, Douglas A. Munro 

Bldg., 2703 Martin Luther King Jr. Ave. SE., Stop 7331, Washington, DC 20593–7331, (202) 372– 

2030. 

National Security Agency ..................... National Security Agency, Item Accounting Branch, ATTN: L112, Fort George Meade, MD 20755 6000. 

Defense Intelligence Agency ................ Defense Intelligence Agency, ATTN: RLE 2, Washington, DC 20340 3205. 

Defense Threat Reduction Agency ...... Headquarters, Defense Threat Reduction Agency, 8725 John J. Kingman Road MSC 6201, Fort 

Belvoir, VA 22060–6201, ATTN: BDLL, Telephone: DSN 427–0785, Commercial (703) 767–0785. 

(5) Condition of property ordered. 

Orders authorized by DLA Disposition 

Services or GSA regional offices will be 

processed as expeditiously as possible 

and according to the Uniform Materiel 

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Movement and Issue Priority System 

priority on the requisition. 

(i) DLA Disposition Services sites will 

determine the property requested is in 

as good a condition as it was during 

screening. 

(ii) If the ordered property has 

materially deteriorated from screening 

or receipt to inspection for shipment, 

the DLA Disposition Services site will 

advise the customer before shipment. 

The shipment will be suspended 

pending agreement by the customer that 

the property will be accepted in its 

present condition. 

(iii) Once ordered, and pending 

receipt of an approved transfer 

document or removal of the property, no 

parts may be removed without prior 

approval of DLA Disposition Services 

(for DoD orders) or GSA (for transfers 

and donations), and agreement by the 

customer that the property will be 

accepted in its altered condition. 

(6) Reimbursement requirements. (i) 

The generating activity will identify 

reimbursement requirements on the 

DTID when transferring property to the 

DLA Disposition Services site. Although 

not specifically a DLA Disposition 

Services responsibility, DLA Disposition 

Services sites may contact the 

generating activity when they suspect 

the generator may be eligible for 

reimbursement but has not noted it on 

the DTID. 

(ii) Issue of declared Military 

Department or Defense Agency FEPP, 

excess and surplus personal property to 

DoD users will be on a nonreimbursable basis except when the 

customer is prohibited by law from 

acquiring FEPP, excess and surplus 

property without reimbursement or 

where reimbursement is required by 

annotations on the receipt DTID. Issues 

to the USPS require fair-market value 

reimbursement. 

(iii) The requester will transfer funds 

to the generating activity without DLA 

Disposition Services site involvement. 

(iv) The DLA Disposition Services site 

will provide the name of the property 

requiring reimbursement when it is 

requested by the DoD or an FCA. The 

requesting activity and the generating 

activity must agree on the appropriate 

amount of funds, and how they will be 

transferred. When this is accomplished, 

the generating activity must give the 

DLA Disposition Services site a letter 

indicating what property is to be 

transferred and to whom. The DLA 

Disposition Services site will file a copy 

of this letter with the issue document to 

create an audit trail. 

(v) Issues of DoD FEPP, excess, and 

surplus personal property, other than 

foreign purchased property and other 

property identified as reimbursable, will 

be at no cost to FCAs and to SASPs. 

(A) Property purchased with working 

capital funds is not eligible for 

reimbursement in the transfer or 

donation program. GSA may direct 

transfers be made with reimbursement 

at fair market value. 

(B) Public law may prohibit FCAs 

from obtaining certain property. 

(C) FCAs, for the purpose of issue of 

excess property, include federal 

executive agencies other than the DoD; 

wholly owned government corporations; 

the Senate; the House of 

Representatives; the Architect of the 

Capitol and any activities under their 

direction; the municipal government of 

the District of Columbia; or non-federal 

agencies for whom GSA procures. 

(vi) Foreign purchased property 

reimbursements will be at the 

acquisition value. 

(vii) For special programs and 

activities, DLA Disposition Services 

sales to special account fund citations 

may be required in accordance with 

Volume 11a, Chapter 5 of DoD 7000.14– 

R. For DLA Disposition Services to 

provide timely and accurate 

reimbursements, the transportation 

account code address in DLA 

Transaction Services must be correct 

and current. 

(A) In accordance with DoD 4160.28– 

M Volumes 1–3, all DoD MLI and 

Commerce Control List (CCL) personal 

property, whether located within or 

outside the United States, will be 

transferred in accordance with 22 CFR 

parts 120 through 130 and 15 CFR parts 

730 through 774. 

(1) DoD MLI or CCL personal property 

will not be transferred to any foreign 

person or entity without DoS or DOC 

approval, authorization, license, license 

exception, exemption, or other 

authorization for the transfer. 

(2) Such property will not be 

transferred to prohibited or sanctioned 

entities or countries identified by the 

Departments of State, Commerce, and 

Treasury. A consolidated list of 

prohibited entities or destinations by 

these Departments may be found at 

http://export.gov/ecr/eg_main_

023148.asp. 

(3) Property will not be transferred to 

persons or entities from countries 

proscribed from trade under regulations 

maintained by the Office of Foreign 

Assets Control. The agency (e.g., GSA or 

USAF CAP Program Manager) 

approving the transaction must 

determine recipient eligibility prior to 

issuing the requisition to DLA 

Disposition Services. 

(4) If the agency approving the 

requisition cannot determine that a U.S. 

person or entity is involved with the 

property transaction, the recipient must 

obtain and provide the appropriate 

license or approval to the agency 

approving the transaction. 

(5) Approving agencies must be 

involved in any subsequent re-transfer 

requests by the recipient. The recipient 

must request the agency’s permission 

prior to taking any disposition action. If 

the approving agency authorizes the 

potential transfer, the recipient must 

then comply with 22 CFR parts 120 

through 130, also known as the 

International Traffic in Arms 

Regulations (ITAR), or 15 CFR parts 730 

through 780, also known as the Export 

Administration Regulations (EAR), as 

appropriate. 

(B) For USML and CCL property, DLA 

Disposition Services sites will require 

recipients to sign a statement 

acknowledging their responsibility to 

comply with U.S. export laws and 

regarding regulations. The statement 

must be signed prior to the release of the 

property according to the DEMIL 

procedures in DoD 4160.28–M Volumes 

1–3. If property is destined for export, 

the recipient must get appropriate 

export authorizations from the DoS or 

DOC in accordance with DoD 

Instruction 2030.08. 

(C) DLA Disposition Services sites 

may issue DEMIL-required property to 

approved special programs or GSA 

eligibility-approved FCAs without 

DEMIL being accomplished. 

(1) Prior to release from DoD control, 

DLA Disposition Services sites must 

obtain a written agreement (see 

Appendixes 1 and 2 of this section) 

from the requesting special program or 

FCA. 

(2) This agreement acknowledges that 

the recipient will DEMIL the USML 

property in accordance with DoD 

4160.28–M Volumes 1–3, when the 

property is no longer needed. 

(3) The agreement further states that 

if the property is to be re-transferred, the 

recipient must obtain approval from its 

program manager (approving agency) 

and in coordination with the DoD 

DEMIL program manager prior to further 

disposition or before releasing the 

USML property outside their control. 

The representative of the recipient is 

required to sign the DEMIL agreement 

before release of any USML property. 

(4) If the recipient requests DLA 

Disposition Services to perform final 

disposition, an MOA must be executed 

or in place with DLA Disposition 

Services for such services. 

(5) The DLA Disposition Services site 

will provide a completed copy of the 

certification to the GSA and retain a 

copy with the issue documentation. 

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78210 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

(D) DLA Disposition Services sites 

may transfer CCL (DEMIL Code Q) and 

non-DEMIL-required USML (DEMIL 

Code B) property that may have import 

and export controls to approved special 

programs or FCAs. Prior to release of 

such CCL and non-DEMIL-required 

USML property, the requesting special 

program or FCA must provide written 

notification to the DLA Disposition 

Services site (see Appendixes 3 and 4 of 

this section). This notification confirms 

recipient’s understanding that export or 

import of the CCL or non-DEMILrequired USML property is regulated by 

the USG and in many cases cannot be 

transferred (exported, imported, sold, 

etc.) to a foreign person, entity or 

foreign country without valid USG 

license or other authorization. 

(viii) GSA reviews and approves each 

order, each in its respective screening 

cycle (transfer or donation). 

(7) Shipment or pick-up elections by 

customers—(i) Criteria for non-RCP 

property. (A) DLA Disposition Services 

will make arrangements for shipment of 

non-RCP property from Military 

Department orders unless notified by 

the DoD Component of the intent to 

physically pick up the property. DLA 

Disposition Services has been 

authorized to use ground services for 

the movement of reutilization property. 

The DLA Disposition Services 

Transportation Office will notify DLA 

Disposition Services sites of the 

authorized carrier. 

(B) The DoD Component and special 

programs have 14 calendar days (15 

days from the date on the order) to 

remove the non-RCP property ordered 

during the DoD screening cycles. 

(C) Transfer (FCA) and donee (State 

agency) customers are always required 

to make their own pickup and shipment 

arrangements for non-RCP property 

orders and have 21 calendar days to 

remove non-RCP property ordered 

during the GSAXcess® screening cycle. 

(D) Standard transportation or 

preferred pick up of the property 

requested by DoD customers who are 

allocated property by GSA apply. 

(1) If DoD transfers customers order 

from the GSAXcess®, they also have 21 

days to remove the non-RCP property. 

(2) Customers required to pick up or 

arrange direct pickup must do so within 

the allotted standard removal time 

period unless it is extended by the DLA 

Disposition Services site chief. An 

example of justification for extended 

removal time would be as a result of a 

natural disaster (flood, snow, etc.). DLA 

Disposition Services site personnel may 

refuse MILSTRIPs or walk-in removals 

for customers who fail to pick up their 

property within the removal period and 

request cancellation of the order. 

(ii) Criteria for RCP property. (A) DLA 

Disposition Services will arrange for 

shipment of RCP property from Military 

Department and special program orders. 

(B) FCAs will designate the method of 

transportation for RCP property ordered 

using one of the following options: 

(1) The FCA arrange with carriers of 

their choice to remove the property from 

a designated staging area at the depot; 

or 

(2) The FCAs requests the DLA 

Disposition Services RCP Office to use 

an approved carrier under the DoD 

blanket purchase agreement awarded 

carrier for Domestic Express Small 

Package Service under the GSA 

Multiple Award Schedule for shipments 

of 150 pounds or less at http://

private.amc.af.mil/a4/domexpress/

spsindex.html. Use of this option for the 

smaller shipments requires a one-time 

notification to DLA Disposition Services 

of the preferred carrier and account 

number in the format. 

(C) FCAs must arrange with the 

carriers of their choice for shipments in 

excess of 150 pounds. 

(D) Donee (State agency) customers 

are always required to make their own 

pickup or shipment arrangements for 

RCP property orders from designated 

staging areas. 

(8) Packing, crating, and handling. 

See § 273.7. 

(9) Shipment and removals 

(transportation).—(i) DoD and 

designated DoD-supported customers. 

(A) Prudence in transportation services 

benefits the Military Departments, 

Defense Agencies, MARS, CAP, 

National Aeronautics and Space 

Administration (Space Shuttle Support), 

National Guard Units, Reserve Units, 

DoD contractor when approved by the 

CO, Senior ROTC, and MWRA/Services 

when ordered through the Military 

Department accountable officer and 

DLA Disposition Services. 

(B) In cases where the cost of the 

transportation exceeds the acquisition 

value of the property, DLA Disposition 

Services sites will evaluate the 

commodity and its actual value; make a 

judgment as to its true condition and the 

priority of the order. 

(1) The DLA Disposition Services site 

will contact the customer and provide 

the property’s estimated value and 

transportation cost to ship the property. 

(2) If a lower cost transportation mode 

is available, meets the requirements of 

the order, and the customer and DLA 

Disposition Services site agree, the DLA 

Disposition Services site will arrange for 

the alternate shipment mode. If it would 

not be cost effective to ship the property 

as requested, the customer will be asked 

to cancel the order. 

(3) If the customer reconfirms the 

need for the property, the following 

certification information will be 

provided to a DLA Disposition Services 

site along with the customer 

reconfirmation statement found in 

Appendix 5 of this section. DoD 

activities must prepare, sign, and submit 

a justification statement for property 

where the transportation costs exceed 

50 percent of the acquisition value of 

the property. The justification statement 

will be signed by the Property Book 

Officer or designated representative and 

will state: 

(i) The purpose for which the item is 

to be used and whether the item is 

mission-essential to the operation of the 

requestor’s activity. 

(ii) Any additional information 

deemed necessary to show criticality of 

the requisition. The statement should be 

included with the DD Form 1348. 

Failure to provide a statement may 

result in the requisition being canceled. 

(C) If the customer determines the 

shipment is not needed, the customer 

will initiate cancellation action 

according to the procedures in DLM 

4000.25–1. 

(D) The shipper will finance parcel 

post shipments between DoD agencies 

without reimbursement. 

(ii) Other customers (excluding 

transfer and donation customers). (A) 

LEAs are responsible for removing or 

making arrangements for shipments. 

(B) MWRAs not ordering property 

through a military accountable supply 

officer, DoD museums, academic 

institutions, and non-profit 

organizations for educational purposes, 

Senior ROTC units and FCAs must pay 

for transportation costs and must 

provide a fund citation prior to 

shipment or pick up of the property. 

(C) Only one carrier is authorized per 

agency, and once the agency has 

designated a carrier, 30 days notice is 

required to change a carrier. 

(D) FMS customers are responsible for 

most transportation costs associated 

with the movement of ordered property. 

(1) The DLA Disposition Services 

FMS Office will identify exceptions to 

this rule. Transportation of sensitive 

and other critical FMS shipments will 

be coordinated between the DLA 

Disposition Services FMS Office, the 

purchasing country, and other DoD 

agencies, as required. For these 

shipments, the DLA Disposition 

Services FMS Office will provide 

separate instructions and fund citations. 

(2) Transportation arrangements will 

be made by the DLA Disposition 

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Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 78211 

Services site or by the supporting 

transportation office. 

(E) HAP orders are shipped by DLA 

Disposition Services by surface to the 

central point using the most costeffective mode (and must remain within 

the assigned theater). At no time will 

HAP property be shipped by air unless 

directed by DLA Disposition Services. 

(10) Shipment or denial notifications. 

(i) DLA Disposition Services sites will 

use the guidance in DLM 4000.25–1 to 

prepare materiel release confirmations 

in response to MROs received from DLA 

Disposition Services. 

(ii) When shipments are complete, 

DLA Disposition Services sites will 

furnish a copy of the shipping 

document to the customer. This 

document confirms shipment. The 

customer will notify the DLA 

Disposition Services site if the property 

is not received within a reasonable 

period of time. FCAs will only be 

provided a copy of the SF 122, with 

annotation of the transportation data, 

when arrangements for DLA Disposition 

Services sites to ship the property have 

been made in advance. 

(iii) DLA Disposition Services sites 

will: 

(A) Advise the customer if the 

property requested is no longer 

available or of acceptable condition. 

(B) Document non-availability by a 

materiel release denial prepared in 

accordance with DLM 4000.25–1, if 

item(s) for an MRO are not available. 

(C) Issue a letter for all other nonavailability notifications, with a copy to 

GSA if they approved the order. The 

letter will contain the following data at 

a minimum: 

(1) NSN. 

(2) Order number. 

(3) Quantity not available. 

(11) Customer removal of ordered 

property—(i) Identification 

requirements. When a customer (DoD 

election to pick up property ordered 

from the DLA Disposition Services site 

or an FCA or donee) makes removal 

arrangements, the individuals removing 

the property must be properly 

identified. Coordinate with DLA 

Disposition Services prior to arrival to 

complete and transmit documents for 

identification. 

(A) Upon arrival at the DLA 

Disposition Services site, the 

individuals will identify themselves, 

sign a DLA Disposition Services visitor 

and vehicle register and indicate on the 

register the DoDAAC represented (for 

DoD activities) or AAC represented (for 

non-DoD activities), and the purpose of 

the visit. 

(B) Visitor and vehicle registers will 

be readily accessible (see paragraph (c) 

of this section). 

(ii) Documentation requirements. (A) 

Customers will: 

(1) Present an approved and 

authenticated DD Form 1348–1A, SF 

122, or 123 ‘‘Transfer Order Surplus 

Personal Property,’’ as appropriate, for 

specific property. The accountable 

officer or authorized individual(s) listed 

in the previously provided 

authentication letter must sign the DD 

Form 1348–1A, SF 122, or SF 123. 

(2) Provide designated carrier or 

removal agents with a copy of DD Form 

1348–1A or SFs 122 or 123, as 

appropriate, indicating removal 

authority. 

(i) DoD customers must have a hard 

copy of the electronically transmitted 

letter of authorization prior to removal, 

and an email response from DLA 

Disposition Services with verification of 

personnel authorized to remove 

property. 

(ii) Transfer and donation customers 

must provide a completed letter of 

authorization to remove property to the 

DLA Disposition Services site prior to 

removal for verification purposes. 

(B) DLA Disposition Services sites 

will: 

(1) Ensure the visitor and vehicle 

register for each direct issue includes: 

(i) Name of the individual receiving 

the property. 

(ii) DoDAAC or AAC or physical 

location address. 

(iii) Activity of the individual 

receiving the property. 

(2) Ensure each customer is issued a 

badge when signing in. 

(3) Ensure that DD Form 1348–1A or 

SF 122 or 123 is complete according to 

MILSTRIP and disposal requirements 

and is signed by the applicable 

accountable officer or authorized 

representative. 

(4) For DoD walk-in customers, ensure 

a current letter is on file at the DLA 

Disposition Services site identifying the 

accountable officer and authorized 

individual(s) signing and approving the 

order. 

(5) Fill the order. 

(6) Provide any appropriate 

disclaimers or certifications of usage or 

disposal to the customer for signature 

prior to releasing the property. 

(7) Furnish a copy of the completed 

shipping document to the respective 

accountable officer (record positions 

30–35 of DD Form 1348–1A). 

(8) If being removed by anyone other 

than the customer, verify that the carrier 

has valid documentation (a copy of DD 

Form 1348–1A or SFs 122 or 123, as 

appropriate) indicating removal 

authority. Arrange for completion of any 

disclaimers or certifications of usage or 

disposal with the customer, prior to 

releasing the property to the carrier. 

(9) In case of doubt as to the validity 

of pickup representatives, DLA 

Disposition Services sites should 

contact the accountable officer who 

prepared the order for DoD activities, or 

DLA Disposition Services for activities 

authorized to order as DoD special 

programs, or the GSA regional office for 

other FCAs or donees. 

Appendix 1 To § 273.15(c) 

DEMIL Agreement for DEMIL-Required 

USML Property to FCAs (DEMIL Codes C, D, 

E, OR F) 

BILLING CODE 5001–06–P 

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Figure 1. DEMIL Agreement for DEMIL-Required USML Property to FCAs 

(Attach to the DD Form 1348-IA, Release Document) 

A COPY OF THIS AGREEMENT MUST BE COMPLETED, SIGNED, AND DATED FOR EACH 

INDIVIDUAL DEMIL-REQUIRED LINE ITEM REQUESTED BY AN FCA RECIPIENT AND 

COORDINATED WITH GSA AND THE DOD DEMILITARIZATION PROGRAM OFFICE 

BEFORE REMOVAL OF SUCH PROPERTY FROM A DLA DISPOSITION SERVICES SITE. 

DD Form 1348-1 Release Document Number: 

NSN: 

Quantity: 

Noun Item Description: 

DEMILCode: 

DEMIL Integrity Code: 

DLA Disposition Services Site Location: 

Federal Civilian Agency: 

Complete Address: 

Telephone Number: 

E-mail Address: 

The recipient agrees by date and signature at the bottom of this form that, upon completion of 

utilization property will be returned to DLA Disposition Services for required demilitarization as 

prescribed by the current edition of DoD 4160.28-M, Volume 1, "Defense Demilitarization: Program 

Administration," on a reimbursable basis. 

Recipient will request disposition instructions from DLA Disposition Services with copy to the DoD 

DEMIL Program Office at ddpo@osd.mil. DEMIL will be accomplished based on the assigned 

DEMIL Code for such property. 

All transfers ofDEMIL-required USML are subject to a condition that prohibits further disposition 

including re-transfer, re-donations, trade, barter, exchange, lease, sale, import or export without prior 

written approval. If the recipient receives approval for further disposition ofUSML property from the 

GSA, in coordination with the DoD DEMIL Program Office, the DEMIL requirement will be 

perpetuated on the appropriate documentation. 

For additional information relating to export/import, recipients may contact the DoD DEMIL Program 

Office for assistance (see https://www.demil.osd.mil/). 

Once the approval has been received, the recipient further acknowledges and agrees that before any 

export or re-export of this property is attempted, they must contact the Directorate of Defense Trade 

Controls, Department of State (see http://www.pmddtc.state.gov/) to obtain the necessary export 

licensing approval or authorization. 
Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 78213 

Appendix 2 To § 273.15(c) 

DEMIL Agreement for DEMIL-Required 

USML Property to Special Programs (DEMIL 

Codes C, D, E, or F) 


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78214 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

Appendix 3 to § 273.15(c) 

Notification for CCL and Non-DEMILRequired USML Property to FCAS (DEMIL 

Codes B and Q) 


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Figure 3. Notification for CCL and Non-DEMIL-Reguired USML Property to FCAs 

(Attach to the DD Form 1348-1A, Release Document) 

A COPY OF THIS AGREEMENT IS TO BE COMPLETED, SIGNED, AND DATED FOR 

EACH INDIVIDUAL CCL AND NON-DEMIL-REQUIRED USML LINE ITEM 

REQUESTED BY AN APPROVED FCA BEFORE THE REMOVAL OF SUCH PROPERTY 

FROM A DLA DISPOSITION SERVICES SITE. 

DD Form 1348-1 Release Document Number: --------------

NSN: -----------------------------

Quantity:---------------------------

Noun Item Description: ______________________ _ 

DEMILCode: _____________________________________________ __ 

DLA Disposition Services Site Location: ____________ _ 

Federal Civilian Agency: ____________________ _ 

Complete Address: _______________________ _ 

Telephone Number: _______________________ _ 

E-mail Address: _________________________ _ 

Recipient is notified that the use, disposition, import, export, and re-export ofnon-DEMILrequired USML property is subject to provisions of DoD Instruction 2030.08, "Implementation 

of Trade Security Controls (TSC) for Transfers of DoD U.S. Munitions List (USML) and 

Commerce Control List (CCL) Personal Property to Parties Outside of DoD," and DoD 

Manual4160.28-M, Volume 1 "Defense Demilitarization Manual: Program Administration." 

CCL or non-DEMIL-required USML personal property released to parties outside DoD control 

are subject to applicable U.S. laws and regulations, including the Arms Export Control Act 

(parts 2778 et seq. of Title 22, U.S.C.) and the Export Administration Act ofl979 (parts 1701 

et seq of Title 50, U.S.C.); International Traffic in Arms Regulations (parts 12 et seq. of Title 

22 CFR); Export Administration Regulations (parts 730-799 of Title 15, CFR), and the 

Espionage Act (parts 793 et seq. of Title 18 U.S.C.), which, among other things, prohibits: 

• The making of false statements and concealment of any material information 

regarding the use or disposition, import, export, or re-export of the property; and 

• Any use or disposition, import, export, or re-export of the property that is not 

authorized in accordance with the provisions of the cited laws and regulations. 
78216 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

Appendix 4 To § 273.15(c) 

Notification for CCL and Non-DEMILRequired USML Property to Special 

Programs (DEMIL Codes B and Q) 


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Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 78217 


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Figure 4. Notification for CCL and Non-DEMIL-Required USML Property to Special Programs 

(Attach to the DD Form 1348-IA, Release Document) 

A COPY OF THIS AGREEMENT IS TO BE COMPLETED, SIGNED, AND DATED FOR 

EACH INDIVIDUAL CCL AND NON-DEMIL-REQUIRED USML LINE ITEM 

REQUESTED BY AN APPROVED SPECIAL PROGRAM BEFORE THE REMOVAL OF 

SUCH PROPERTY FROM A DLA DISPOSITION SERVICES SITE. 

DD Form 1348-1 Release Document Number: _____________ _ NSN: __________________________________________________ _ 

Quantity: ___________________________ _ 

Noun Item Description:----------------------- DEMILCode: ______________________________________________ _ 

DLA Disposition Services Site Location: _____________ _ 

Special Program Recipient: _____________________ _ 

Complete Address:------------------------

Telephone Number: ________________________ _ 

E-mail Address:--------------------------

Recipient is notified that the use, disposition, import, export, and re-export of Commerce Control 

List (CCL) or non-DEMIL-required USML property is subject to provisions of DoD Directive 

2030.8, "Implementation of Trade Security Controls (TSC) for Transfers of DoD U.S. Munitions 

List (USML) and CCL Personal Property to Parties Outside DoD Control." CCL or non-DEMILrequired USML personal property released to parties outside DoD control are subject to applicable 

U.S. laws and regulations, including the Arms Export Control Act (parts 2778 et seq. of Title 22, 

U.S.C.) and the Export Administration Act of 1979 (parts 1701 et seq. of Title 50, U.S.C.); 

International Traffic in Arms Regulations (parts 120 et seq. of Title 22, CFR); Export 

Administration Regulations (parts 730-799 of Title 15, CFR), and the Espionage Act (parts 793 et 

seq. of Title 18, U.S.C.), which, among other things, prohibits: 

• The making of false statements and concealment of any material information regarding 

the use or disposition, import, export, or re-export of the property; and 

• Any use or disposition, import, export, or re-export of the property that is not 

authorized in accordance with the provisions of the cited laws and regulations. 

The recipient acknowledges that all subsequent dispositions of the items are prohibited without 

prior written approval of the program manager. The program manager will coordinate with the 

DoD Demilitarization Office or TSC Program Office, for guidance, as appropriate. 
78218 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

Appendix 5 to § 273.15(c) 

Customer Reconfirmation 

Dated: December 10, 2014. 

Aaron Siegel, 

Alternate OSD Federal Register Liaison 

Officer, Department of Defense. 

[FR Doc. 2014–29251 Filed 12–24–14; 8:45 am] 

BILLING CODE 5001–06–C 


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