(b) REIMBURSEMENT AT FAIR VALUE.—The amount of reimbursement re-
quired 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 SUP-
PLY CENTERS.—Excess property determined by the Administrator to be suit-
able for distribution through the supply centers of the General Services Ad-
ministration 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 Inte-
rior, without compensation, excess real property located within the reservation
of any group, band, or tribe of Indians that is recognized as eligible for serv-
ices 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 and transferred under
this section in trust for Oklahoma Indian tribes recognized by the Sec-
retary if the real property—
(A) is located within boundaries of former reservations in Okla-
homa, as defined by the Secretary, and was held in trust by the
Federal Government for an Indian tribe when the Government ac-
quired 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 grant-
ee of the agency, except as provided in this section.
(b) EXCEPTION FOR PUBLIC AGENCIES AND TAX-EXEMPT NONPROFIT OR-
GANIZATIONS.—
(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 orga-
nization 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 spon-
sored 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 miscellaneous re-
ceipts.
(2) TITLE.—Title to excess property obtained under this subsection
vests in the grantee. The grantee shall account for and dispose of the
property in accordance with procedures governing accountability for per-
sonal property acquired under grant agreements.
(c) EXCEPTION FOR CERTAIN PROPERTY FURNISHED BY SECRETARY OF
AGRICULTURE.—
(1) DEFINITION.—In this subsection, the term ‘‘State’’ means a State
of the United States, Puerto Rico, Guam, American Samoa, the Northern
Mariana Islands, the Federated States of Micronesia, the Marshall Is-
lands, Palau, the Virgin Islands, and the District of Columbia.
(2) IN GENERAL.—Under regulations and restrictions the Adminis-
trator may prescribe, subsection (a) does not apply to property furnished
by the Secretary of Agriculture to—
(A) a state or county extension service engaged in cooperative ag-
ricultural extension work under the Smith-Lever Act (7 U.S.C. 341
et seq.);
(B) a state experiment station engaged in cooperative agricul-
tural research work under the Hatch Act of 1887 (7 U.S.C. 361a
et seq.); or
(C) an institution engaged in cooperative agricultural research or
extension work under section 1433, 1434, 1444, or 1445 of the Na-
tional Agricultural Research, Extension, and Teaching Policy Act
of 1977 (7 U.S.C. 3195, 3196, 3221, or 3222), or the Act of October
10, 1962 (16 U.S.C. 582a et seq.), if the Federal Government retains
title.
(d) OTHER EXCEPTIONS.—Under regulations and restrictions the Adminis-
trator may prescribe, subsection (a) does not apply to—
(1) property furnished under section 608 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2358), to the extent that the Administrator deter-
mines that the property is not needed for donation under section 549 of
this title;
(2) scientific equipment furnished under section 11(e) of the National
Science Foundation Act of 1950 (42 U.S.C. 1870(e));
(3) property furnished under section 203 of the Department of Agri-
culture Organic Act of 1944 (16 U.S.C. 580a), in connection with the
Cooperative Forest Fire Control Program, if the Government retains
title; or
(4) property furnished in connection with a grant to a tribe, as de-
fined in section 3(c) of the Indian Financing Act of 1974 (25 U.S.C.
1452(c)).
§ 526. Temporary assignment of excess real property
(a) ASSIGNMENT OF SPACE.—The Administrator of General Services may
temporarily assign or reassign space in excess real property to a federal agen-
cy, for use as office or storage space or for a related purpose, if the Adminis-
trator determines that assignment or reassignment is more advantageous than
permanent transfer. The Administrator shall determine the duration of the as-
signment or reassignment.
(b) REIMBURSEMENT FOR MAINTENANCE.—If there is no appropriation
available to the Administrator for the expense of maintaining the space, the
Administrator may obtain appropriate reimbursement from the federal agen-
cy.
§ 527. Abandonment, destruction, or donation of property
The Administrator of General Services may authorize the abandonment or
destruction of property, or the donation of property to a public body, if—
(1) the property has no commercial value; or
(2) the estimated cost of continued care and handling exceeds the esti-
mated proceeds from sale.
§ 528. Utilization of excess furniture
A department or agency of the Federal Government may not use amounts
provided by law to purchase furniture if the Administrator of General Serv-
ices determines that requirements can reasonably be met by transferring excess
furniture, including rehabilitated furniture, from other departments or agen-
cies pursuant to this subtitle.
§ 529. Annual executive agency reports on excess personal
property
(a) IN GENERAL.—During the calendar quarter following the close of each
fiscal year, each executive agency shall submit to the Administrator of Gen-
eral Services a report on personal property—
(1) obtained as—
(A) excess property; or
(B) personal property determined to be no longer required for the
purpose of the appropriation used to make the purchase; and
(2) furnished within the United States to a recipient other than a fed-
eral agency.
(b) REQUIRED INFORMATION.—The report must set out the categories of
equipment and show—
(1) the acquisition cost of the property;
(2) the recipient of the property; and
(3) other information the Administrator may require.
SUBCHAPTER III—DISPOSING OF PROPERTY
§ 541. Supervision and direction
Except as otherwise provided in this subchapter, the Administrator of Gen-
eral Services shall supervise and direct the disposition of surplus property in
accordance with this subtitle.
§ 542. Care and handling
The disposal of surplus property, and the care and handling of the property
pending disposition, may be performed by the General Services Administra-
tion or, when the Administrator of General Services decides, by the executive
agency in possession of the property or by any other executive agency that
agrees.
§ 543. Method of disposition
An executive agency designated or authorized by the Administrator of Gen-
eral Services to dispose of surplus property may do so by sale, exchange, lease,
permit, or transfer, for cash, credit, or other property, with or without war-
ranty, on terms and conditions that the Administrator considers proper. The
agency may execute documents to transfer title or other interest in the prop-
erty and may take other action it considers necessary or proper to dispose
of the property under this chapter.
§ 544. Validity of transfer instruments
A deed, bill of sale, lease, or other instrument executed by or on behalf of
an executive agency purporting to transfer title or other interest in surplus
property under this chapter is conclusive evidence of compliance with the pro-
visions of this chapter concerning title or other interest of a bona fide grantee
or transferee for value and without notice of lack of compliance.
§ 545. Procedure for disposal
(a) PUBLIC ADVERTISING FOR BIDS.—
(1) REQUIREMENT.—
(A) IN GENERAL.—Except as provided in subparagraph (B), the
Administrator of General Services may make or authorize a dis-
posal or a contract for disposal of surplus property only after public
advertising for bids, under regulations the Administrator prescribes.
(B) EXCEPTIONS.—This subsection does not apply to disposal or
a contract for disposal of surplus property—
(i) under subsection (b) or (d); or
(ii) by abandonment, destruction, or donation or through a
contract broker.
(2) TIME, METHOD, AND TERMS.—The time, method, and terms and
conditions of advertisement must permit full and free competition con-
sistent with the value and nature of the property involved.
(3) PUBLIC DISCLOSURE.—Bids must be publicly disclosed at the time
and place stated in the advertisement.
(4) AWARDS.—An award shall be made with reasonable promptness by
notice to the responsible bidder whose bid, conforming to the invitation
for bids, is most advantageous to the Federal Government, price and
other factors considered. However, all bids may be rejected if it is in the
public interest to do so.
(b) NEGOTIATED DISPOSAL.—Under regulations the Administrator pre-
scribes, disposals and contracts for disposal may be negotiated without regard
to subsection (a), but subject to obtaining competition that is feasible under
the circumstances, if—
(1) necessary in the public interest—
(A) during the period of a national emergency declared by the
President or Congress, with respect to a particular lot of personal
property; or
(B) for a period not exceeding three months, with respect to a spe-
cifically described category of personal property as determined by
the Administrator;
(2) the public health, safety, or national security will be promoted by
a particular disposal of personal property;
(3) public exigency will not allow delay incident to advertising certain
personal property;
(4) the nature and quantity of personal property involved are such
that disposal under subsection (a) would impact an industry to an ex-
tent that would adversely affect the national economy, and the estimated
fair market value of the property and other satisfactory terms of disposal
can be obtained by negotiation;
(5) the estimated fair market value of the property involved does not
exceed $15,000;
(6) after advertising under subsection (a), the bid prices for the prop-
erty, or part of the property, are not reasonable or have not been inde-
pendently arrived at in open competition;
(7) with respect to real property, the character or condition of the
property or unusual circumstances make it impractical to advertise pub-
licly for competitive bids and the fair market value of the property and
other satisfactory terms of disposal can be obtained by negotiation;
(8) the disposal will be to a State, territory, or possession of the
United States, or to a political subdivision of, or a tax-supported agency
in, a State, territory, or possession, and the estimated fair market value
of the property and other satisfactory terms of disposal are obtained by
negotiation; or
(9) otherwise authorized by law.
(c) DISPOSAL THROUGH CONTRACT BROKERS.—Disposals and contracts
for disposal of surplus real and related personal property through contract
realty brokers employed by the Administrator shall be made in the manner
followed in similar commercial transactions under regulations the Adminis-
trator prescribes. The regulations must require that brokers give wide public
notice of the availability of the property for disposal.
(d) NEGOTIATED SALE AT FIXED PRICE.—
(1) AUTHORIZATION.—The Administrator may make a negotiated sale
of personal property at a fixed price, either directly or through the use
of a disposal contractor, without regard to subsection (a). However, the
sale must be publicized to an extent consistent with the value and nature
of the property involved and the price established must reflect the esti-
mated fair market value of the property. Sales under this subsection are
limited to categories of personal property for which the Administrator
determines that disposal under this subsection best serves the interests of
the Government.
(2) FIRST OFFER.—Under regulations and restrictions the Adminis-
trator prescribes, an opportunity to purchase property at a fixed price
under this subsection may be offered first to an entity specified in sub-
section (b)(8) that has expressed an interest in the property.
(e) EXPLANATORY STATEMENTS FOR NEGOTIATED DISPOSALS.—
(1) REQUIREMENT.—
(A) IN GENERAL.—Except as provided in subparagraph (B), an
explanatory statement of the circumstances shall be prepared for
each disposal by negotiation of—
(i) personal property that has an estimated fair market
value in excess of $15,000;
(ii) real property that has an estimated fair market value
in excess of $100,000, except that real property disposed of by
lease or exchange is subject only to clauses (iii)–(v) of this sub-
paragraph;
(iii) real property disposed of by lease for a term of not
more than 5 years, if the estimated fair annual rent is more
than $100,000 for any year;
(iv) real property disposed of by lease for a term of more
than 5 years, if the total estimated rent over the term of the
lease is more than $100,000; or
(v) real property or real and related personal property dis-
posed of by exchange, regardless of value, or any property for
which any part of the consideration is real property.
(B) EXCEPTION.—An explanatory statement is not required for
a disposal of personal property under subsection (d), or for a dis-
posal of real or personal property authorized by any other law to
be made without advertising.
(2) TRANSMITTAL TO CONGRESS.—The explanatory statement shall be
transmitted to the appropriate committees of Congress in advance of the
disposal, and a copy of the statement shall be preserved in the files of
the executive agency making the disposal.
(3) LISTING IN REPORT.—A report of the Administrator under section
126 of this title must include a listing and description of any negotiated
disposals of surplus property having an estimated fair market value of
more than $15,000, in the case of real property, or $5,000, in the case
of any other property, other than disposals for which an explanatory
statement has been transmitted under this subsection.
(f) APPLICABILITY OF OTHER LAW.—Section 3709 of the Revised Statutes
(41 U.S.C. 5) does not apply to a disposal or contract for disposal made
under this section.
§ 546. Contractor inventories
Subject to regulations of the Administrator of General Services, an execu-
tive agency may authorize a contractor or subcontractor with the agency to
retain or dispose of contractor inventory.
§ 547. Agricultural commodities, foods, and cotton or woolen
goods
(a) POLICIES.—The Administrator of General Services shall consult with
the Secretary of Agriculture to formulate policies for the disposal of surplus
agricultural commodities, surplus foods processed from agricultural commod-
ities, and surplus cotton or woolen goods. The policies shall be formulated to
prevent surplus agricultural commodities, or surplus foods processed from ag-
ricultural commodities, from being dumped on the market in a disorderly
manner and disrupting the market prices for agricultural commodities.
(b) TRANSFERS TO DEPARTMENT OF AGRICULTURE.—
(1) IN GENERAL.—The Administrator shall transfer without charge to
the Department of Agriculture any surplus agricultural commodities,
foods, and cotton or woolen goods for disposal, when the Secretary deter-
mines that a transfer is necessary for the Secretary to carry out respon-
sibilities for price support or stabilization.
(2) DEPOSIT OF RECEIPTS.—Receipts resulting from disposal by the
Department under this subsection shall be deposited pursuant to any au-
thority available to the Secretary. When applicable, however, net proceeds
from the sale of surplus property transferred under this subsection shall
be credited pursuant to section 572(a) of this title.
(3) LIMITATION OF SALES.—Surplus farm commodities transferred
under this subsection may not be sold, other than for export, in quan-
tities exceeding, or at prices less than, the applicable quantities and
prices for sales of those commodities by the Commodity Credit Corpora-
tion.
§ 548. Surplus vessels
The Maritime Administration shall dispose of surplus vessels of 1,500 gross
tons or more which the Administration determines to be merchant vessels or
capable of conversion to merchant use. The vessels shall be disposed of in ac-
cordance with the Merchant Marine Act, 1936 (46 App. U.S.C. 1101 et seq.),
and other laws authorizing the sale of such vessels.
§ 549. Donation of personal property through state agencies
(a) DEFINITIONS.—In this section, the following definitions apply:
(1) PUBLIC AGENCY.—The term ‘‘public agency’’ means—
(A) a State;
(B) a political subdivision of a State (including a unit of local
government or economic development district);
(C) a department, agency, or instrumentality of a State (includ-
ing instrumentalities created by compact or other agreement be-
tween States or political subdivisions); or
(D) an Indian tribe, band, group, pueblo, or community located
on a state reservation.
(2) STATE.—The term ‘‘State’’ means a State of the United States, the
District of Columbia, Puerto Rico, the Virgin Islands, Guam, the North-
ern Mariana Islands, and American Samoa.
(3) STATE AGENCY.—The term ‘‘state agency’’ means an agency des-
ignated under state law as the agency responsible for fair and equitable
distribution, through donation, of property transferred under this sec-
tion.
(b) AUTHORIZATION.—
(1) IN GENERAL.—The Administrator of General Services, in the Ad-
ministrator’s discretion and under regulations the Administrator may
prescribe, may transfer property described in paragraph (2) to a state
agency.
(2) PROPERTY.—
(A) IN GENERAL.—Property referred to in paragraph (1) is any
personal property that—
(i) is under the control of an executive agency; and
(ii) has been determined to be surplus property.
(B) SPECIAL RULE.—In determining whether the property is to
be transferred for donation under this section, no distinction may
be made between property capitalized in a working-capital fund es-
tablished under section 2208 of title 10 (or similar fund) and any
other property.
(3) NO COST.—Transfer of property under this section is without cost,
except for any costs of care and handling.
(c) ALLOCATION AND TRANSFER OF PROPERTY.—
(1) IN GENERAL.—The Administrator shall allocate and transfer prop-
erty under this section in accordance with criteria that are based on