H. R. 2068—20
of the Javits-Wagner-O’Day Act (41 U.S.C. 47) to be suitable
for procurement by the Government.
§ 503. Exchange or sale of similar items
(a) AUTHORITY OF EXECUTIVE AGENCIES.—In acquiring personal
property, an executive agency may exchange or sell similar items
and may apply the exchange allowance or proceeds of sale in whole
or in part payment for the property acquired.
(b) APPLICABLE REGULATION AND LAW.—
(1) REGULATIONS PRESCRIBED BY ADMINISTRATOR OF GENERAL
SERVICES.—A transaction under subsection (a) must be carried
out in accordance with regulations the Administrator of General
Services prescribes, subject to regulations prescribed by the
Administrator for Federal Procurement Policy under the Office
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.).
(2) IN WRITING.—A transaction under subsection (a) must
be evidenced in writing.
(3) SECTION 3709 OF REVISED STATUTES.—Section 3709 of the
Revised Statutes (41 U.S.C. 5) applies to a sale of property
under subsection (a), except that fixed price sales may be con-
ducted in the same manner and subject to the same conditions
as are applicable to the sale of property under section 545(d)
of this title.
§ 504. Agency cooperation for inspection
(a) RECEIVING ASSISTANCE.—An executive agency may use the
services, work, materials, and equipment of another executive
agency, with the consent of the other executive agency, to inspect
personal property incident to procuring the property.
(b) PROVIDING ASSISTANCE.—Notwithstanding section 1301(a) of
title 31 or any other law, an executive agency may provide services,
work, materials, and equipment for purposes of this section without
reimbursement or transfer of amounts.
(c) POLICIES AND METHODS.—The use or provision of services,
work, materials, and equipment under this section must be in
conformity with policies and methods the Administrator of General
Services prescribes under section 501 of this title.
§ 505. Exchange or transfer of medical supplies
(a) EXCESS PROPERTY DETERMINATION.—
(1) IN GENERAL.—Medical materials or supplies an executive
agency holds for national emergency purposes are considered
excess property for purposes of subchapter II when the head
of the agency determines that—
(A) the remaining storage or shelf life is too short to
justify continued retention for national emergency pur-
poses; and
(B) transfer or other disposal is in the national interest.
(2) TIMING.—To the greatest extent practicable, the head
of the agency shall make the determination in sufficient time
to allow for the transfer or other disposal and use of medical
materials or supplies before their shelf life expires and they
are rendered unfit for human use.
(b) TRANSFER OR EXCHANGE.—
(1) IN GENERAL.—In accordance with regulations the Adminis-
trator of General Services prescribes, medical materials or sup-
plies considered excess property may be transferred to another
H. R. 2068—21
federal agency or exchanged with another federal agency for
other medical materials or supplies.
(2) USE OF PROCEEDS.—Any proceeds derived from a transfer
under this section may be credited to the current applicable
appropriation or fund of the transferor agency and shall be
available only to purchase medical materials or supplies to
be held for national emergency purposes.
(3) DISPOSAL AS SURPLUS PROPERTY.—If the materials or sup-
plies are not transferred to or exchanged with another federal
agency, they shall be disposed of as surplus property.
§ 506. Inventory controls and systems
(a) ACTIVITIES OF THE ADMINISTRATOR OF GENERAL SERVICES.—
(1) IN GENERAL.—Subject to paragraph (2), and after adequate
advance notice to affected executive agencies, the Administrator
of General Services may undertake the following activities as
necessary to carry out functions under this chapter:
(A) SURVEYS AND REPORTS.—Survey and obtain executive
agency reports on Federal Government property and prop-
erty management practices.
(B) INVENTORY LEVELS.—Cooperate with executive agen-
cies to establish reasonable inventory levels for property
stocked by them, and report any excessive inventory levels
to Congress and to the Director of the Office of Management
and Budget.
(C) FEDERAL SUPPLY CATALOG SYSTEM.—Establish and
maintain a uniform federal supply catalog system that
is appropriate to identify and classify personal property
under the control of federal agencies.
(D) STANDARD PURCHASE SPECIFICATIONS AND STANDARD
FORMS
AND
PROCEDURES.—Prescribe standard purchase
specifications and standard forms and procedures (except
forms and procedures that the Comptroller General pre-
scribes by law) subject to regulations the Administrator
for Federal Procurement Policy prescribes under the Office
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.).
(2) SPECIAL
CONSIDERATIONS
REGARDING
DEPARTMENT
OF
DEFENSE.—
(A) IN GENERAL.—The Administrator of General Services
shall carry out activities under paragraph (1) with due
regard to the requirements of the Department of Defense,
as determined by the Secretary of Defense.
(B) FEDERAL SUPPLY CATALOG SYSTEM.—In establishing
and maintaining a uniform federal supply catalog system
under paragraph (1)(C), the Administrator of General Serv-
ices and the Secretary shall coordinate to avoid unnecessary
duplication.
(b) ACTIVITIES OF FEDERAL AGENCIES.—Each federal agency shall
use the uniformed federal supply catalog system, the standard
purchase specifications, and the standard forms and procedures
established under subsection (a), except as the Administrator of
General Services, considering efficiency, economy, or other interests
of the Government, may otherwise provide.
(c) AUDIT
OF PROPERTY ACCOUNTS.—The Comptroller General
shall audit all types of property accounts and transactions. Audits
shall be conducted at the time and in the manner the Comptroller
General decides and as far as practicable at the place where the
H. R. 2068—22
property or records of the executive agencies are kept. Audits shall
include an evaluation of the effectiveness of internal controls and
audits, and a general audit of the discharge of accountability for
Government-owned or controlled property, based on generally
accepted principles of auditing.
SUBCHAPTER II—USE OF PROPERTY
§ 521. Policies and methods
Subject to section 523 of this title, in order to minimize expendi-
tures for property, the Administrator of General Services shall—
(1) prescribe policies and methods to promote the maximum
use of excess property by executive agencies; and
(2) provide for the transfer of excess property—
(A) among federal agencies; and
(B) to the organizations specified in section 321(c)(2)
of this title.
§ 522. Reimbursement for transfer of excess property
(a) IN GENERAL.—Subject to subsections (b) and (c) of this section,
the Administrator of General Services, with the approval of the
Director of the Office of Management and Budget, shall prescribe
the amount of reimbursement required for a transfer of excess
property.
(b) REIMBURSEMENT AT FAIR VALUE.—The amount of reimburse-
ment required for a transfer of excess property is the fair value
of the property, as determined by the Administrator, if—
(1) net proceeds are requested under section 574(a) of this
title; or
(2) either the transferor or the transferee agency (or the
organizational unit affected) is—
(A) subject to chapter 91 of title 31; or
(B) an organization specified in section 321(c)(2) of this
title.
(c) DISTRIBUTION THROUGH GENERAL SERVICES ADMINISTRATION
SUPPLY CENTERS.—Excess property determined by the Adminis-
trator to be suitable for distribution through the supply centers
of the General Services Administration shall be retransferred at
prices set by the Administrator with due regard to prices established
under section 321(d) of this title.
§ 523. Excess real property located on Indian reservations
(a) PROCEDURES FOR TRANSFER.—The Administrator of General
Services shall prescribe procedures necessary to transfer to the
Secretary of the Interior, without compensation, excess real property
located within the reservation of any group, band, or tribe of Indians
that is recognized as eligible for services by the Bureau of Indian
Affairs.
(b) PROPERTY HELD IN TRUST.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
Secretary shall hold excess real property transferred under
this section in trust for the benefit and use of the group,
band, or tribe of Indians, within whose reservation the excess
real property is located.
(2) SPECIAL
REQUIREMENT
FOR
OKLAHOMA.—The Secretary
shall hold excess real property that is located in Oklahoma
H. R. 2068—23
and transferred under this section in trust for Oklahoma Indian
tribes recognized by the Secretary if the real property—
(A) is located within boundaries of former reservations
in Oklahoma, as defined by the Secretary, and was held
in trust by the Federal Government for an Indian tribe
when the Government acquired it; or
(B) is contiguous to real property presently held in trust
by the Government for an Oklahoma Indian tribe and
was held in trust by the Government for an Indian tribe
at any time.
§ 524. Duties of executive agencies
(a) REQUIRED.—Each executive agency shall—
(1) maintain adequate inventory controls and accountability
systems for property under its control;
(2) continuously survey property under its control to identify
excess property;
(3) promptly report excess property to the Administrator of
General Services;
(4) perform the care and handling of excess property; and
(5) transfer or dispose of excess property as promptly as
possible in accordance with authority delegated and regulations
prescribed by the Administrator.
(b) REQUIRED AS FAR AS PRACTICABLE.—Each executive agency,
as far as practicable, shall—
(1) reassign property to another activity within the agency
when the property is no longer required for the purposes of
the appropriation used to make the purchase;
(2) transfer excess property under its control to other federal
agencies and to organizations specified in section 321(c)(2) of
this title; and
(3) obtain excess property from other federal agencies.
§ 525. Excess personal property for federal agency grantees
(a) GENERAL PROHIBITION.—A federal agency is prohibited from
obtaining excess personal property for the purpose of furnishing
the property to a grantee of the agency, except as provided in
this section.
(b) EXCEPTION FOR PUBLIC AGENCIES AND TAX-EXEMPT NONPROFIT
ORGANIZATIONS.—
(1) IN
GENERAL.—Under regulations the Administrator of
General Services may prescribe, a federal agency may obtain
excess personal property for the purpose of furnishing it to
a public agency or an organization that is nonprofit and exempt
from taxation under section 501 of the Internal Revenue Code
of 1986 (26 U.S.C. 501), if—
(A) the agency or organization is conducting a federally
sponsored project pursuant to a grant made for a specific
purpose with a specific termination provision;
(B) the property is to be furnished for use in connection
with the grant; and
(C)(i) the sponsoring federal agency pays an amount
equal to 25 percent of the original acquisition cost (except
for costs of care and handling) of the excess property;
and
(ii) the amount is deposited in the Treasury as miscella-
neous receipts.