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Federal Management Regulation; FMR Case 2004-102-1, Disposition of Personal Property - ComplianceOnline.com
41 CFR Part 102-35
[FMR Amendment 2007-01; FMR Case 2004-102-1; Docket 2007-001; Sequence
RIN 3090-AH93
Federal Management Regulation; FMR Case 2004-102-1, Disposition
Management Regulation (FMR) by revising coverage on personal property
and moving it into subchapter B of the FMR. This final rule adds a new
part to subchapter B of the FMR to provide an overview of the property
disposal regulation and provide definitions for terms found in the FMR
DATES: Effective Date: April 6, 2007.
Governmentwide Policy, Personal Property Management Policy, at (202)
501-3828, or e-mail at robert.holcombe@gsa.gov for clarification of
contact the Regulatory Secretariat, Room 4035, GS Building, Washington,
DC 20405, (202) 501-4755. Please cite FMR Amendment 2007-01, FMR Case
2004-102-1.
A proposed rule was published in the Federal Register on September
12, 2006 (71 FR 53646) soliciting comments on proposed changes to 41
CFR part 102-35. The due date for comments was extended in a Federal
Register proposed rule document on October 18, 2006 (71 FR 61445).
Comments were received from three respondents relating to the sale of
personal property. These comments do not directly address any
provisions contained in this final rule, and will be held for
consideration when the regulation covering the sale of Federal personal
property assets, Federal Management Regulation (FMR) part 102-38, is
released for comment. FMR part 102-38 is currently being reviewed
within GSA for revisions.
This final rule adds a new part, 102-35, to subchapter B of the FMR
to provide an overview of the property disposal regulation and to
definitions for terms found in FMR parts 102-36 through 102-42 (41 CFR
102-36 through 102-42). This part serves as a summary and overview of
the policies relating to the disposal of Federal personal property and
provides overall guidance for all methods of property disposal.
This part emphasizes the use of excess property from other agencies
as the first source of supply, and establishes the preference to
transfer excess property to Federal agencies for their own use before
transferring that property to agencies for use by non-Federal entities.
of the public which require the approval of the Office of Management
and Budget (OMB) under 44 U.S.C. 3501 et seq.
This final rule is exempt from Congressional review prescribed
List of Subjects in 41 CFR Part 102-35
Government employees, Personal property.
For the reasons set forth in the preamble, GSA amends 41 CFR chapter
102 as follows:
1. Part 102-35 is added to subchapter B of chapter 102 to read as
PART 102-35--DISPOSITION OF PERSONAL PROPERTY
102-35.5 What is the scope of the General Services Administration's
regulations on the disposal of personal property?
102-35.10 How are these regulations for the disposal of personal
property organized?
102-35.15 What are the goals of GSA's personal property regulations?
102-35.20 What definitions apply to GSA's personal property
102-35.25 What management reports must we provide?
102-35.30 What actions must I take or am I authorized to take
regardless of the property disposition method?
Sec.  102-35.5  What is the scope of the General Services
Administration's regulations on the disposal of personal property?
The General Services Administration's personal property disposal
regulations are contained in this part and in parts 102-36 through 102-
42 of this subchapter B as well as in parts 101-42 and 101-45 of the
Federal Property Management Regulations (FPMR)(41 CFR parts 101-42 and
101-45). With two exceptions, these regulations cover the disposal of
personal property under the custody and control of executive agencies
located in the United States, the U.S. Virgin Islands, American Samoa,
Guam, Puerto Rico, the Northern Mariana Islands, the Federated States
of Micronesia, the Marshall Islands, and Palau. The exceptions to this
coverage are part 102-39 of this subchapter B, which applies to the
replacement of all property owned by executive agencies worldwide using
the exchange/sale authority, and Sec. Sec.  102-36.380 through 102-
36.400, which apply to the disposal of excess property located in
countries and areas not listed in this subpart, i.e., foreign excess
personal property. The legislative and judicial branches are encouraged
to follow these provisions for property in their custody and control.
Sec.  102-35.10  How are these regulations for the disposal of personal
The General Services Administration (GSA) has divided its
regulations for the disposal of personal property into the following
(a) Disposition of excess personal property (part 102-36 of this
subchapter B).
(b) Donation of surplus personal property (part 102-37 of this
(c) Sale of surplus personal property (part 102-38 of this
(d) Replacement of personal property pursuant to the exchange/sale
authority (part 102-39 of this subchapter B).
(e) Disposition of seized and forfeited, voluntarily abandoned, and
unclaimed personal property (part 102-41 of this subchapter B).
(f) Utilization, donation, and disposal of foreign gifts and
decorations (part 102-42 of this subchapter B).
(g) Utilization and disposal of hazardous materials and certain
categories of property (part 101-42 of the Federal Property Management
Regulations (FPMR), 41 CFR part 101-42).
Sec.  102-35.15  What are the goals of GSA's personal property
(a) Improve the identification and reporting of excess personal
(b) Maximize the use of excess property as the first source of
supply to minimize expenditures for the purchase of new property, when
Note to Sec.  102-35.15(b): If there are competing requests among
Federal agencies for excess property, preference will be given to
agencies where the transfer will avoid a new Federal procurement. A
transfer to an agency where the agency will provide the property to a
non-Federal entity for the non-Federal entity's use will be secondary
to Federal use.
(c) Achieve maximum public benefit from the use of Government
property through the donation of surplus personal property to State and
local public agencies and other eligible non-Federal recipients;
(d) Obtain the optimum monetary return to the Government for
surplus personal property sold and personal property sold under the
exchange/sale authority; and
(e) Reduce management and inventory costs by appropriate use of the
abandonment/destruction authority to dispose of unneeded personal
property that has no commercial value or for which the estimated cost
of continued care and handling would exceed the estimated sales
proceeds (see FMR Sec. Sec.  102-36.305 through 102-36.330).
Sec.  102-35.20  What definitions apply to GSA's personal property
The following are definitions of, or cross-references to, some key
terms that apply to GSA's personal property regulations in the FMR (CFR
Parts 102-36 through 102-42). Other personal property terms are defined
in the sections or parts to which they primarily apply.
Accountable Personal Property includes nonexpendable personal
property whose expected useful life is two years or longer and whose
acquisition value, as determined by the agency, warrants tracking in
the agency's property records, including capitalized and sensitive
Accountability means the ability to account for personal property
by providing a complete audit trail for property transactions from
receipt to final disposition.
Capitalized Personal Property includes property that is entered on
the agency's general ledger records as a major investment or asset. An
agency must determine its capitalization thresholds as discussed in
Financial Accounting Standard Advisory Board (FASAB) Statement of
Federal Financial Accounting Standards No. 6 Accounting for Property,
Plant and Equipment, Chapter 1, paragraph 13.
Control means the ongoing function of maintaining physical
oversight and surveillance of personal property throughout its complete
life cycle using various property management tools and techniques
taking into account the environment in which the property is located
and its vulnerability to theft, waste, fraud, or abuse.
Excess personal property (see Sec.  102-36.40 of this subchapter
Exchange/sale (see Sec.  102-39.20 of this subchapter B).
Executive agency (see Sec.  102-36.40 of this subchapter B).
Federal agency (see Sec.  102-36.40 of this subchapter B).
Foreign gifts and decorations (for the definition of relevant
terms, see Sec.  102-42.10 of this subchapter B).
Forfeited property (see Sec.  102-41.20 of this subchapter B).
Inventory includes a formal listing of all accountable property
items assigned to an agency, along with a formal process to verify the
condition, location, and quantity of such items. This term may also be
used as a verb to indicate the actions leading to the development of a
listing. In this sense, an inventory must be conducted using an actual
physical count, electronic means, and/or statistical methods.
National property management officer means an official, designated
in accordance with Sec.  102-36.45(b) of this subchapter B, who is
responsible for ensuring effective acquisition, use, and disposal of
excess property within your agency.
Personal property (see Sec.  102-36.40 of this subchapter B).
Property management means the system of acquiring, maintaining,
using and disposing of the personal property of an organization or
responsibility of that agency until final ownership is determined by
Sensitive Personal Property includes all items, regardless of
value, that require special control and accountability due to unusual
rates of loss, theft or misuse, or due to national security or export
control considerations. Such property includes weapons, ammunition,
explosives, information technology equipment with memory capability,
cameras, and communications equipment. These classifications do not
preclude agencies from specifying additional personal property
classifications to effectively manage their programs.
Surplus personal property (see Sec.  102-37.25 of this subchapter
Utilization means the identification, reporting, and transfer of
excess personal property among Federal agencies.
Sec.  102-35.25  What management reports must we provide?
(a) There are three reports that must be provided. The report
summarizing the property provided to non-Federal recipients and the
report summarizing exchange/sale transactions (see Sec. Sec.  102-
36.295 and 102-39.75 respectively of this subchapter B) must be
provided every year (negative reports are required). In addition, if
you conduct negotiated sales of surplus personal property valued over
$5,000 in any year, you must report this transaction in accordance with
Sec.  102-38.115 (negative reports are not required for this report).
(b) The General Services Administration (GSA) may request other
reports as authorized by 40 U.S.C. 506(a)(1)(A).
Sec.  102-35.30  What actions must I take or am I authorized to take
(a) You must maintain property in a safe, secure, and cost-
effective manner until final disposition.
(b) You have authority to use the abandonment/ destruction
provisions at any stage of the disposal process (see Sec. Sec.  102-
36.305 through 102-36.330 and Sec.  102-38.70 of this subchapter B).
(c) You must implement policies and procedures to remove sensitive
or classified information from property prior to disposal. Agency-
affixed markings should be removed, if at all possible, prior to
personal property permanently leaving your agency's control.
(d) Government-owned personal property may only be used as
authorized by your agency. Title to Government-owned personal property
cannot be transferred to a non-Federal entity unless through official
procedures specifically authorized by law.
[FR Doc. E7-3958 Filed 3-6-07; 8:45 am]