poses owned by the United States, including any wholly owned Government corporation, and any fixtures, appurtenances, and improvements of any kind located thereon; (b) any fixtures, structures, and other improvements (excluding standing timber and crops) owned by the United States; and (c) any fixtures, structures, and other improvements owned by the United States which are located on the public domain and lands reserved or dedicated for national-forest or national-park purposes or located on land that is not owned by the United States (19) "Related personal property" as used herein means any personal property

(a) Which is located in and (i) an integral or necessary part of, or (ii) essential to the use of productive capacity of land, fixtures, appurtenances and improvements; or

(b) Determined by the Administrator to be otherwise related to the real property.

(20) "Reserved materials" means uranium, thorium, and all other materials determined pursuant to section 5 (b) (1) of the Atomic Energy Act of 1916 (60 Stat. 761; 42 U. S. C. 1805), to be peculiarly essential to the production of fissionable material.

(21) "Reviewing authority" means a local, regional, or departmental board of review of a holding agency. It may consist of one or more persons.

(22) "Salvage" means personal property that is in such condition, or is of such a specialized nature, that it has no reasonable prospect of use as a unit, or is not usable as a unit without major repairs or alterations. Salvage has some value in excess of its basic material content.

(23) "Scrap" means personal property that has no value except for its basic material content, and includes waste.

(24) "Service educational activity" means any educational activity designated by the Secretary of Defense as being of special interest to the armed services, such as maritime academies or military, naval, Air Force, or Coast Guard preparatory schools.

(25) "Small business" means any concerns whose aggregate number of employees, including its affiliates, is less than 500.

(26) "State or local government" means a State, Territory, or possession of the United States, the District of Columbia, and any political subdivision or instrumentality thereof.

(27) "Surplus" when used with respect to any personal property means any excess personal property not required for the needs and the discharge of the responsibilities of all Federal agencies, as determined by the Administration. 4. Scope. This regulation provides for the economical and efficient utilization of excess personal property, and the disposal of all surplus personal property, located within the continental United States, Hawaii, Alaska, Puerto Rico, and the Virgin Islands.

5. Basic policy.-a. It is the policy of the Administrator to foster and assure maximum utilization of excess personal property by Federal agencies. Each Federal agency shall, as far as practicable, fulfill its needs for personal property by utilization of excess personal property; and the needs of Federal agencies to such property shall be paramount to any surplus disposal.

b. It is the policy of the Administrator that surplus personal property shall be disposed of in the most economical manner consistent with the best interests of the Government.

c. It is the policy of the Administrator that surplus personal property shall be disposed of promptly and in such a manner as to:

(1) Facilitate production for national defense requirements;

(2) Encourage and foster employment opportunities;

(3) Strengthen and preserve the competitive position of small business;

(4) Foster the development of new independent enterprises;

(5) Discourage monopoly, speculation and restraint of trade; and

(6) Strengthen and encourage the development and expansion of the education and public-health programs.

6. Utilization of excess personal property.-a. Surveys and inventory levels.— Each executive agency shall continuously survey personal property under its control and shall maintain its inventory of personal property at the absolute minimum consistent with economical and efficient conduct of the affairs of the agency.

b. Reassignment of personal property within executive agencies.-Each executive agency shall, as far as practicable, reassign personal property within activities of the agency when such property is determined to be no longer required

for the purposes of the appropriation from which it was purchased or the use to which it has been applied, and shall immediately discontinue procurement of items for which such property can reasonably be substituted or adapted.

c. Facilitating transfer of excess property.—Each executive agency shall, as far as practicable, make available excess personal property and facilitate the transfer of such property to other Federal agencies.

d. Filling requirements from excess property.-Each executive agency shall, as far as practicable, fulfill its requirements for personal property by obtaining excess personal property from other Federal agencies pursuant to the provisions of this regulation. Consideration shall be given to available excess personal property which economically may be substituted or adapted for the intended use. e. Legislative and judicial Federal agencies.-Federal agencies in the legislative and judicial branches are encouraged to report and transfer excess personal property, and fill requirements from excess personal property of other Federal agencies, in accordance with the provisions of this regulation. In reporting personal property as excess each Federal agency shall comply with the provisions of this regulation.

f. Loan of excess personal property for catastrophe relief.-Excess personal property, whether or not reported as excess under section 7, may, with the approval of an authorized field representative of an agency designated by the President under the provisions of the Independent Offices Appropriation Act, 1950 (or other similar provisions of law), to render assistance in alleviating hardship or suffering caused by any catastrophe, be loaned by any holding agency to any State or other non-Federal public body for use in alleviating such hardship or suffering. Where property so loaned has previously been reported as excess, information relating to such loan shall be furnished the General Services Administration office to which the report of excess was submitted.

7. Reporting of excess personal property.-a. Property required to be reported. Except for property transferred in accordance with section 8 of this regulation, all excess personal property shall be reported promptly as excess as provided in this section, subject to exceptions and modifications set forth below. b. Personal property covered by other regulations.—The following categories of personal property are covered by special regulations, and therefore this regulation shall apply to them only to the extent not precluded by the provisions of such special regulations:

(1) Typewriting machines (governed by Administrator's Temporary Regulation No. 4 and Federal Supply Service Circular Letter B-57, Revised);

(2) Strategic and critical materials (governed by War Assets Administration Regulation 17);

(3) Seized, abandoned, and forfeited property (see Bureau of Federal Supply Circular Letter B-27, Revised, May 4, 1948; and Federal Register for January 31, 1948 [13 F. R. 449];

(4) Property which, pursuant to Administrator's Temporary Regulation No. 5, has been determined to have no commercial value or of which the estimated cost of continued care and handling would exceed the estimated proceeds;

(5) Excess "related personalty" (governed by General Services Administration, Public Buildings Service Circular No. 1, dated March 8, 1950, as amended); (6) Excess "airport property" (governed by General Services Administration, Public Buildings Service Circular No. 1, dated March 8, 1950, as amended); (7) Government records (disposal governed by GSA Manual, Disposition of Federal Records, National Archives Publication No. 50-3).

c. Narcotics.-Excess opium and opium derivatives shall be reported in accordance with the regulations governing strategic and critical materials. Other excess narcotics, regardless of quantity, condition, or acquisition cost, shall be reported to the Bureau of Narcotics, Department of the Treasury, Washington 25, D. C., and shall not be disposed of without clearance from that Bureau. In the interest of assuring appropriate disposition of such narcotics and avoiding illicit traffic therein, the Bureau of Narcotics is willing as an accommodation to accept custody and arrange for the disposition of all such narcotics shipped to it prepaid in accordance with its shipping instructions.

d. Reserved materials.-Excess reserved materials shall be reported to the Atomic Energy Commission, Washington 25, D. C., in accordance with applicable regulations issued by the Atomic Energy Commission (see 10 C. F. R., pt. 40, as amended [14 F. R. 1156]).

e. Printing, binding, and blank-book equipment and supplies.-Excess machinery, equipment, material, and supplies for printing, binding, and blank-book work should be reported to the Public Printer for possible transfer, as provided in sec

tion 8 of this regulation, prior to reporting to the Administration under this regulation.

f. Intangible personal property.-Excess intangible personal property shall be reported to the Administration, Washington 25, D. C.,and shall not be transferred or disposed of without prior approval of the Administration; bonds, notes, or other securities authorized to be disposed of by the Secretary of the Treasury under section 5 of the act of April 3, 1945 (59 Stat. 48; 31 U. S. C. 741a), in the event that such securities shall be deemed to be excess intangible personal property, shall not be reported to the Administration.

g. General exceptions. The following excess personal property need not be reported unless otherwise directed by the Administration:

(1) All personal property not otherwise specifically provided for in this section and having an acquisition cost of less than $100 (consisting of an item or group of substantially identical items normally constituting a singleline entry on the reporting form);

(2) Perishables;

(3) Property dangerous to public health or safety;

(4) Scrap and salvage;

(5) Aircraft, and aircraft components, parts, and accessories in the custody of the Department of Defense;

(6) Arms, ammunition, and implements of war listed in the currently effective proclamation under the Neutrality Act, 22 U. S. C. 452 (i), in the custody of the Department of Defense. (See Appendix C.)

(7) Vessels of 1,500 gross tons or more;

(8) Animals;

(9) Used bedding;

(10) Used clothing;

(11) Technical hospital and medical supplies (except narcotics) and equipment;

(12) Sand, gravel, and stone quarried products;

(13) Standing timber and undressed logs;

(14) Property which may be transferred to other agencies under section 8 of this regulation;

(15) Property determined by competent authority to be classified for reasons of national security;

(16) Fuel oil resulting from stripping of vessels in preparation for lay-up by the Federal Maritime Administration of the Department of Commerce. Executive agencies having property in the categories specified in this subsection g shall, to the fullest extent practicable or economical, solicit Federal agencies (including the agencies specified in section 14 of this regulation) known to use or distribute such property and, wherever possible, arrange for transfers. If no need for such property is found within a reasonable time (which should not, unless the interests of Government otherwise require, exceed 60 calendar days from date of determination as excess, and should in many cases be considerably less than 60 days) holding agencies shall determine such property surplus and its disposal will be then governed by sections 16 and 17 of this regulation. Such property, however, shall not be determined surplus until the Federal Security Administrator has been afforded a period of 10 calendar days in which to determine whether the property would be usable and necessary for educational or public-health purposes, including research. Property of the Department of Defense shall not be determined to be surplus until screened by the Secretary of Defense for usability and need for service educational activities, or, if not so designated, until the Federal Security Administrator has been afforded the opportunity for screening as above provided.

h. Property at installations due to be discontinued.-Executive agencies that have installations which are due to be discontinued, closed, or abandoned and at which there will be excess property shall, unless inadvisable in the interest of national security, give informal advance notice of such situations as early as possible by letter to the appropriate regional directors of the administration. Except in emergencies where time does not permit, excess property subject to the reporting requirements of this section shall be reported in sufficient time to permit performance of the actions required by this regulation by the agencies' personnel at such locations. In such cases agencies shall state on the report the fact that the installation is to be discontinued, the scheduled date for the removal of personnel from the location, and the last date when the property will be needed.

i. Excess personal property on or within excess real property.-Excess related personal property, as defined in section 3b (19) of this regulation, shall be reported to the administration in accordance with General Services Administration, Public Building Service Circular No. 1, dated March 8, 1950, as amended. Excess personal property other than related personalty, located on or within excess real property shall be governed by this regulation. However, the fact of location on excess real property shall be noted on the report.

j. Form and distribution of reports.-Reports of excess personal property required by this regulation shall be made on Standard Forms 120, Report of Excess Personal Property, and 120, Continuation Sheet, set forth in appendix A hereto. (See sec. 23.) Reports required to be submitted to the administration shall be submitted as follows:

(1) Three copies to the appropriate administration field office for the region in which the property is located. (For the purposes of this regulation, the appropriate field office shall be as specified in appendix B hereto.)

(2) One copy to the Surplus Materials Procurement Section (S-721), Bureau of Supplies and Accounts, Department of the Navy, Washington 25, D. C., the designated screening unit for the Department of Defense.

k. Withdrawals.-Subject to the approval of the administration, or when in the interest of national security, reports of excess personal property may be withdrawn or corrected by the reporting agency at any time prior to transfer to another Federal agency or disposal. Request for withdrawals or notices of correction should be addressed to the General Services Administration office to which the report of excess personal property was forwarded.

1. Contractor inventory.-The provisions of this regulation shall not apply to contractor inventory except to the extent provided in section 18 of this regulation.

8. Transfers without reporting as excess.-Except as otherwise provided by section 7 of this regulation, or by other law, each executive agency may, whenever it has information regarding the need of another Federal agency for personal property, and unless otherwise directed by the administration, transfer excess personal property governed by this regulation directly to other Federal agencies without regard to the requirements of section 7 for reporting the property as excess. Excess property not transferred in accordance with this section shall be subject to the provisions of section 7.

9. Transfers at fair value; reimbursement.-a. Transfers of excess personal property under this regulation to other Federal agencies (including the agencies specified in sec. 14 of this regulation) shall be at the fair value thereof (the costs specified in sec. 11b chargeable to the transferee agency being additional), except that

(1) Transfers for redistribution or for disposal as surplus property (except as provided in sec. 13 of this regulation) shall be made without transfer of funds representing such fair value; and

(2) Transfers may be made without reimbursement or transfer of funds when so authorized by any law approved subsequent to June 21, 1944.

b. Unless directed otherwise by the administration, fair value of excess personal property under this regulation shall be determined by the holding agency by using the following formula which the administrator has determined will promote utilization and takes into consideration the other costs which transferee agencies will incur :

A-"New-excellent" means unused personal property, ready for use in a condition identical with new items delivered by a supplier.

B-"Usable—without repair" means personal property which has been used and requires no reconditioning or repair; and personal property which, although unused and requiring no reconditioning or repair, does not qualify for code A. C-"Usable minor repairs required" means personal property requiring minor repairs, to put into usable condition, whether used or unused.

D "All other" means personal property requiring major repairs, conversion or rehabilitation, and all other items which through deterioration, obsolescence, or other factors do not fit in codes A, B, or C and include scrap and salvage.

d. The preferred base for determining fair value is the current market delivered price of a new similar item in the commercial area serving the holding agency. There are various sources for determining such prices, such as(1) The Federal Supply Service, General Services Administration, zone price lists;

(2) Federal supply schedule prices;

(3) Manufacturers' catalogs, price lists, and discount sheets; and
(4) Local suppliers.

If obtaining such pricing information is impracticable the holding agency may use actual or estimated original acquisition cost.

e. In determining fair value pursuant to the formula in subsection b of this section, where doubt arises as to which fair value code applies to an item, preference should be given to that fair value code which will facilitate and encourage maximum utilization by other Federal agencies. Where application of the above formula will not achieve the intended purpose because of special circumstances or the peculiar nature of the property, the holding agency may use other criteria for arriving at fair value if approved or directed by the General Services Administration regional director for the area in which the property is located, or his designated representative. Where circumstances warrant, and the agencies concerned agree thereto, fair value prices higher than those arrived at by use of the formula specified in subsection b of this section may be used.

f. Disagreement between agencies as to the fair value shall be referred for final determination to the General Services Administration regional director for the area in which the property is located, or his designated representative.

10. Suspension of procurement; retention of custody.—a. Executive agencies shall when directed by the Administrator, suspend procurement of new items when excess personal property of the same type or of a type which may reasonably be adapted or substituted is available for transfer.

b. Pending transfer of excess personal property, the Administration may direct the holding agency to retain custody of property, or order custody of whole or part transferred to facilities of other executive agencies.

11. Cost of care and handling.-a. Each holding agency shall be responsible for performing care and handling of excess personal property pending disposition. b. Each holding agency shall bear the cost of care and handling. The costs incurred incident to transfer, including packing, preparation for shipment, loading, and transportation, shall be borne by the transferee agency; and where such costs are incurred by the holding agency they shall be reimbursed by the transferee agency upon appropriate billing, unless, because of the amount involved, it is uneconomical or impractical so to do.

12. Proceeds.-Each holding agency shall be responsible for billing and collecting the fair value of excess personal property transferred by it to other agencies, and shall deposit all such proceeds into the Treasury as miscellaneous receipts except as authorized by law enacted subsequent to June 30, 1949; and except that where the property transferred was acquired by the use of funds either not appropriated from the general fund of the Treasury or appropriated therefrom but by law reimbursable from assessment, tax, or other revenue or receipts, then the net proceeds of the transfer shall be credited to the reimbursable fund or appropriation or paid to the Federal agency which determined the property to be excess. Where the agency which determined the property to be excess deems it uneconomical or impractical to ascertain the amount of net proceeds, such proceeds shall be credited to miscellaneous receipts.

13. Transfer for redistribution.-a. Any organizational unit of the Administration authorized to perform redistribution functions is authorized to make necessary arrangements for the transfer to it for redistribution of available excess personal property in the custody of any Federal agency.

b. Where items included in the Federal Supply Service Store Stock Catalog are reported as excess, the Administration may take physical custody for purposes of redistribution of such items that are in suitable condition, as determined by the Administration, for redistribution within the Federal Govern