125-035-0025 Financing and Service Charges (1) ORS 279.822 authorizes the use of the Department of Administrative Services Operating Fund (the Fund) to finance the acquisition and distribution of Federal surplus property. The Fund is maintained by the collection of service and handling charges from property donations to the donees of the Federal Surplus property. (2) The service charge is based on the pro-rated expenses incurred annually by the SASP including but not limited to the following major cost areas: personnel, transportation, utilities, fuels, telephone, warehousing, storage, compliance, insurance, printing, supplies and travel. Service charges shall be assessed at a rate designed to cover all direct and indirect costs involved in acquiring and distributing Federal surplus property. (3) The service charges shall be fair and equitable in relation to the service performed. Emphasis shall be placed on keeping the service charge to a minimum but at the same time providing the necessary service and funds to operate the SASP on a sound financial basis. Other factors considered in applying service charges are; original acquisition cost, present value, screening cost, quantity, condition, desirability of the property, transportation cost, loading and unloading cost, packing and crating, administrative costs, repair and rehabilitation, utilization and compliance. (4) Service charges for Federal surplus property are determined by the expenses and factors listed in sections (2) and (3) of this rule. When the Fund’s balance is determined by SASP to be either insufficient or excessive, service changes shall be adjusted accordingly. (a) The maximum service charge per item of property shall not exceed $15,000; (b) If a donee screens and arranges delivery of Federal surplus property, the service charge assessed to the donee shall be 4% of acquisition value for miscellaneous items, and 6% for licensed vehicles, boats, and heavy equipment, or property requiring an 18 month restriction period; (c) If the SASP screens and arranges delivery of Federal surplus property to a donee, the service charge shall be 4% of acquisition value for miscellaneous items, and 7% for licensed vehicles, boats, and heavy equipment, or property requiring an 18 month restriction period; (d) If the Federal surplus property is handled at SASP’s distribution center, the following service charge schedule shall be used: (A) Acquisition Cost $0–$5,000, Percent Charge 0–30%; (B) Acquisition Cost $5,001–$20,000, Percent Charge 0–25%; (C) Acquisition Cost Above $20,000, Percent Charge 0–15%; (e) Federal surplus property made available to eligible nonprofit providers of assistance to homeless individuals shall be distributed at a nominal cost for care and handling of the property. (5) Exceptions — the following exceptions to Section 4, subsections (a)–(e) of this rule address problem areas which are frequently encountered. Special or extraordinary costs may be added to, or subtracted from the service charge as follows: (a) Rehabilitated property — direct costs for property rehabilitation shall be added to the service charge. The SASP reserves the right to rehabilitate Federal surplus property, except when such property is received by the donee directly from the Federal holding agency. (b) Overseas property — additional direct costs for obtaining the Federal surplus property may be added; (c) Long-haul property — charges for major items with unusual costs may be added. Any such costs which are anticipated shall be discussed with the donee prior to shipment; (d) Special handling — an additional charge may be made for dismantling, packing, crating, shipping, delivery and other extraordinary handling charges; (e) Screening — Extraordinary costs incurred in screening property may be added; (f) Condition code — when an obvious incorrect condition code has been assigned, the correct code shall be used for discount purposes. (g) Acquisition cost — when an incorrect acquisition cost has been detected, there shall be an adjustment in service charges to reflect the correct acquisition cost. The correct acquisition cost will determined by researching available records for similar equipment or supplies, including federal stock/pricing manuals. (6) In event the program authorized by ORS 279.800, et seq., is abolished, any balance in the Fund which is attributable to SASP’s activities shall be divided among the participating donees during the immediately preceding fiscal year, in accordance with, and except as otherwise allowed or provided in, ORS 279.822(3). (7) Service charge payments remitted to SASP by donees shall be used to cover the direct and indirect costs of operations and, indirectly, for the benefit of the participating donees, and for no other use or purpose. SASP’s costs of operation include, as provided by state law, acquiring and/or improving offices and warehouse facilities. (8) Service charge payments received by SASP may be used, among other purposes, to purchase necessary equipment and supplies, to repair and rehabilitate equipment, and to purchase replacement parts. (9) Minimum service charges shall be assessed to donees in cases where the SASP provides document processing only and no other direct costs are involved. Based on an analysis of SASP expenses to facilitate the transfer of Federal surplus property, the service charge shall be discounted twenty-five percent for the donee locating and screening the property, and ten percent for direct pickup by the donee. These discounts shall be based upon the service charge that would have been assessed if the Federal surplus property had been transferred from the SASP distribution center. Statutory/Other Authority: ORS 279 & 283 History: GS 1-1994, f. & cert. ef. 11-1-94 GS 8-1986, f. & ef. 10-10-86 GS 3-1984, f. 6-29-84, ef. 6-30-84