Federal Acquisition Service U.S. General Services Administration July 2011 Doug Janka Area Property Officer (APO) Personal Property Management (PPM) Personal Property Utilization and Donation Course Chicago, IL

U&D Course Objectives Train client agencies to effectively dispose of their Federal excess personal property Provide historical background and overview of the disposal program. Review everyone’s responsibilities. Provide useful information throughout the course of the week that will help everyone improve their ability to do their job!

U & D COURSE AGENDA Legislative History and Regulations GSA Structure and Players Responsibilities Review Disposal Process Utilization, Donation, Sales, A&D Special Handling Requirements Review GSA Systems Recycling Resources GSA Products and Services Overview

U & D Course Handouts Personal Property Disposal Guide Publications Property Disposal Websites Presentations Will be A vailable on GSAXcess.gov Homepage

Federal Acquisition Service U.S. General Services Administration July 2011 Legislative History, Statutes Organization and Functions Property Disposal Overview

Objectives 1.Examine History, Legislative Statutes, Regulation and Policy 2.Gain understanding of Responsibilities 3.GSA Organization and Functions 4.Overview of Personal Property Disposal Process 5.GSA systems and key websites

Legislative History The Constitution Forces of Evolution The President and Congress… Enabling Statutes Administrative Law (Regulation, Policy, Orders) Special Authorities

Article IV: Vested in Congress the authority to acquire and dispose of property on behalf of the United States. Subsequently, Congress passed legislation establishing policies to serve the interests of the taxpayers. Today, Congress remains the ultimate arbitrator in determining the public’s best interest in disposing of Federal Property.

Forces of Evolution World Wars Program Fragmentation Presidents and Congress Expanding Role of Government

Major Presidential Milestone: Executive Order 3019 Post WWI, President Wilson directed surplus (war) materials, supplies and equipment be transferred to Government establishments (Federal agencies) and Congress designated the Secretary of Treasury to administer the process. Origins of UTILIZATION Program

Major Presidential Milestone: Public Law Congress Authorized Secretary of War to sell surplus machine tools under control of War Department at 15% of cost to educational institutions. Origins of DONATION program

Major Congressional Milestones: Public Law Allowed aeronautical equipment to be given for display purposes to museums Public Law Authorized the Secretary of Navy to provide property “without cost”.

Major Congressional Milestone: Public Law Known as the “Surplus Property Act of 1944”. Temporary statute created to address huge WWII surplus. The Act set up several entities to manage the disposal process including the Reconstruction Finance Corp., Surplus Property Administration, War Assets Corp., War Assets Administration and Federal Security Administration. Allowed the donation of property to educational, public health, local governments and nonprofit institutions at reduced or no cost for public benefit.

Major Congressional Milestones: Public Law Known as the “Federal Property and Administrative Services Act of 1949”. Established GSA as the sole successor to administer the provisions of this Act. GSA assumed overall responsibility for property management matters government-wide.

Major Congressional Milestones: Public Law Established that no property could be donated for use in a state except through a “State Agency for Surplus Property (SASP)”. The Department of Health, Education and Welfare (DHEW) was designated to screen and allocate surplus property for civil defense purposes Public Law Transferred responsibility of the donation program from DHEW to GSA.

Major Congressional Milestones: Public Law , Stevenson-Wydler Technology Innovation Act and Executive Order Permits agencies to give research equipment to educational institutions for scientific education/research and computers to schools Public Law Codified the Property Act into Title 40, United States Code, ”Public Buildings, Property, and Works”.

Property Regulations and Administrative Law GSA, Office of Governmentwide Policy FAR (Federal Acquisition Regulations) FPMR (Federal Property Management Regulations) FMR (Federal Management Regulations) Executive Agency Orders

Deviations/Waiver from the FMR Require written waiver from GSA Office of Government-wide Policy Division DoD Dept of Interior – Aviation Mgt. Dept of Energy – Mgmt and Contractor maintained property USDA/ARS – livestock and commodities

FPMR to FMR… FMR Utilization Donation Sales* Exchange/Sale Foreign Gifts FMR Utilization Donation Sales* Exchange/Sale Foreign Gifts The regulations are still in the process of change... …From Federal Property Management Regulations to Federal Management Regulations … Currently… FPMR Hazardous and other categories of special handling Seized/Forfeited * & still apply for sales of special classes FPMR Hazardous and other categories of special handling Seized/Forfeited * & still apply for sales of special classes

GSA Organization OGP: Office of Governmentwide Policy Creates and revises regulations for the procurement, management and disposal of property for all executive agencies.

GSA Organization FAS: Federal Acquisition Service Dedicated to procuring goods and services for the government. Manages operations including a nationwide property management disposal system for Excess Personal Property. PBS: Public Building Service Acquires space on behalf of the federal government through new construction and leasing, and acts as a caretaker for Federal Real property. Landlord of Federal government

GSA, FAS Structure Central Office Plans, directs and coordinates the U & D and Sale of personal property. Maintains a national database for consolidating all excess/surplus personal property. Regional Offices plus Field Offices 11 Region offices strategically located in the U.S Region and field offices are staffed with Specialists in the Utilization, Donation and Sales of Federal excess and surplus personal property.

GSA Area Property Officers (APO) Provide expert advise and training Problem Solving Promotes program objectives Approves transfer orders

OTHER GROUPS OF INTEREST OR PLAYERS DLA / DRMO / RCP USA-FEPP NASASP

DLA/DRMO/RCP Due to the unique nature of DOD assets GSA delegated certain authorities to DOD DOD reassigned property management responsibility to DLA, Disposition Services with field sites called DRMO’s. All military services must turn their excess property into a DRMO, which consolidates the data and reports the excess property to GSA. A recycling control point (RCP) is a method for managing the disposal of excess inventory at a DLA military supply depot. Property is reported electronically to GSA for screening. Selected property is shipped free of charge to Federal activities and staged for pickup by SASPs.

USA-FEPP Users and Srceeners Association/Federal Excess Personal Property is an independent nonprofit consortium of Federal agencies, cost reimbursement contractors, project grantees, universities and others who acknowledge the prime directive to use excess personal property as the first source of supply. The purpose is to share expertise, alert members to program changes, promote the use of excess, develop professionalism and to provide a unified voice concerning Federal personal property management.

NASASP National Association of State Agencies for Surplus Property Motto: Pro Bono Publico (For the public good) The purpose of NASASP and its’ 56 state members is to partner with GSA and to save taxpayer dollars by extending the useful life of surplus to public agencies and nonprofit organizations in health and education.

Disposal Process GSA Responsibilities Executive Agency Responsibilities Overview of Disposal Process

The Big Picture The Federal Government Purchases more supplies and materials than any other entity in the world. Requires effective, efficient U&D FMR : Disposition of Excess Personal Property

GSA Sustainability Plan GSA has set a goal to help the government achieve Zero Environmental Footprint (ZEF). Personal Property plays an important role and has been a leader in the reuse of property since its inception in Personal Property is often referred to as the “Original Green Program”. Accordingly, our green theme for Personal Property is: Reuse is Recycling...

GSA Region and Field Office Responsibilities Provide utilization, donation and sales training. Promote excess & surplus for agency needs. Expedite the disposal process when justified. Allocate and approve transfers and donations. Conduct sales of surplus & exchange/sale property. Maintain systems to facilitate property disposal Provide expert customer field support with Area Property Officers (APOs).

Agency Responsibilities for Acquiring Excess Use Excess as first source of supply Acquire only what is needed to support mission Facilitate timely removal of excess Maintain system for property accountability Perform care and handling, protect against hazards such as fire, theft, vandalism, weather. Maintain appropriate inventory levels

Agency Responsibilities for Disposing of Excess Reassign idle property internally Survey inventory and determine excess Promptly report excess property to GSA Perform care and handling Provide reasonable access for inspection and removal Ensure compliance with environmental, health, safety and national security regulations

Overview of Disposal Process Agency declares Excess or Exchange/Sale? Internal Reuse Special Disposal Authority GSA Utilization GSA Donation GSA Sales Abandonment/Destruction – Recycling

Federal Asset Sales GSA Allocate to

Excess vs. Exchange/Sale Excess “means any personal property under the control of any Federal agency that is no longer required for that agency’s needs” Exchange/Sale “means property not excess to the needs of the holding agency but eligible for replacement. Exchange allowance or proceeds of sale must be applied towards replacement item” Exchange/Sale “means property not excess to the needs of the holding agency but eligible for replacement. Exchange allowance or proceeds of sale must be applied towards replacement item”

Federal Asset Sales GSA Allocate to

Step 1: Internal Screening Once internal procedures are complete, an agency can report property to GSA. GSA offers AAMS (Agency Asset Management System) to support internal screening/redistribution. AAMS is a screening module within GSAXcess that can be customized to meet your agency’s needs for reporting and internal screening. DOE, VA, DOC, Agriculture

Federal Asset Sales GSA Allocate to

Use of Special Authorities Exchange/Sale property (FMR ) Stevenson-Wydler Act Executive Order Computers for Learning Dept of Defense – 13 special authorities under Defense Appropriations Act - HAP / LESO Direct Transfer to other Federal Agency if under $10,000 (Mandatory copy provided to GSA)

Key Requirements requires that… generally, all excess property is to be reported to GSA requires that… generally, all excess property is to be reported to GSA requires that… “all executive agencies must, to the maximum extent practicable, fill requirements for personal property by using existing agency property or by obtaining excess property from other Federal agencies in lieu of new procurements”

Federal Asset Sales GSA Allocate to

Step 2: Report Excess to GSA Notification to GSA of available excess 3 Methods of Reporting to GSAXcess® On-line Batch SF 120 Reference: 41 CFR through

Must All Excess Property Be Reported to GSA? Direct Transfer property Abandonment/Destruction property Non-appropriated Fund property Scrap, except aircraft in scrap condition Perishables Hazardous Waste Property dangerous to public health/safety NRC-Controlled Materials Classified or Sensitive FMR

Condition Codes for Reporting… Disposal Condition Code Definition 1New. Property which is in new condition or unused condition and can be used immediately without modifications or repairs. 4Usable. Property which shows some wear, but can be used without significant repair. 7Repairable. Property which is unusable in its current condition but can be economically repaired. XSalvage. Property which has value in excess of its basic material content, but repair or rehab is impractical and/or uneconomical. SScrap. Property which has no value except for its basic material content. Good & accurate descriptions are critical!

How long does the disposal process take? Screening Time Frames –Internal screening varies by agency –21 calendar days normal Federal/Donation screening –First 7 days of 21 day period - Computers For Learning (CFL) –14 calendar days – Office Furniture (FSC 7110) –Removal – 15 days normal, 21 days for DOD excess Sales Time Frames – calendar days average sales cycle time (includes verifying availability, posting, collection & removal) Total cycle time ≤ 57 calendar days

However, we are flexible…. GSA may extend or shorten the screening time due to: –Agency Relocation –Lack of Storage –Sudden generation of large amounts of property –Potential loss or damage to property –Other appropriate justifiable circumstances

Who is accountable for excess property pending disposal? YOU, THE OWNING AGENCY, Retain possession Remain accountable and maintain stewardship over excess property reported to GSA pending disposal instructions (FMR )

New Homepage…… gsaxcess.gov

GSAXcess Main Menu options for Reporting, Searching and CFL Functions.

Computers For Learning (CFL) GSA Role Provide systems to facilitate transfers Agency Role Report excess computers on GSAXcess View school requests on GSAXcess.gov Allocate computers to schools using the CFL functions menu on GSAXcess Approve transfer in GSAXcess Coordinate release of computers to schools School Role Register on ComputersForLearning.gov Screen & Request available inventory Pick up computers from holding agency

Schools need to register directly on CFL Website Homepage for ComputersForLearning.gov

Federal Asset Sales GSA Allocates to

Step 3: Excess: Screening & Federal Transfers Search available property On-line GSAXcess® Physical screening “Screening” period normally 21 calendar days (14 days for furniture) Submit request via GSAXcess® Electronice Approval Reference: 41 CFR through

Step 3: Excess: Screening & Federal Transfers Property in GSAXcess® is available for screening by and transfer to: Federal agencies, their contractors, cooperatives and grantees Senate and House of Representatives DC Government Mixed-ownership Government corporations Agency property personnel must have access to GSAXcess® to request property Via NUO or APO

Golden Rules of Acquiring Excess Property… There must be an authorized need for the property You must not acquire excess personal property with the intent to sell or trade for other assets

Who pays for the Transportation for Excess Property? Acquiring agency is required to pay shipping and transportation costs. When applicable, acquiring agency may have to pay packing, loading, and dismantling costs.

Step 4: Federal Surplus Donation Program … At the completion of screening for Federal use, property not transferred is declared surplus Property is donated from GSA through State Agencies for Surplus Property

Step 4: Federal Surplus Donation Program… Eligible Participants include: State and local public agencies Nonprofit educational and public health institutions Nonprofit and public programs for the elderly Educational activities of special interest to the Department of Defense Public airportsFMR

Federal Agency Priorities for use of Excess Property 1. Agency Inventories 2.Excess from Other Agencies 3.Federal Prison Industries, UNICOR 4.Ability One - NIB/NISH 5.Federal Stock Programs, SOP, CSC 6.Federal Supply Schedules 7.Commercial Sources

Utilization and Donation… Reuse is Recycling... The Most Cost Effective Disposal of a Government Asset is its Continued Use in a Tax-Supported Program

What if the Property is not Transferred or Donated???? Can Agencies conduct sales on their own ?

Step 5: Sales Property not donated becomes eligible for sales Agencies must sell via an approved Sales Center or have waiver GSA Auctions® is an Approved FAS Sales Center Multiple sales methods/multiple commodities, nationwide Internet auctions via GSA Auctions® Live auctions Sealed bid sales GSA sales provide national exposure, state-of-the-art elements, competitive bidding, and maximum returns

Step 5: Sales Property not donated becomes eligible for sales Agencies must sell via an approved Sales Center or have waiver GSA Auctions® is an Approved FAS Sales Center Multiple sales methods/multiple commodities, nationwide Internet auctions via GSA Auctions® Live auctions Sealed bid sales GSA sales provide national exposure, state-of-the-art elements, competitive bidding, and maximum returns

GovSales.gov - Single Point of Entry for Citizens Linked to USA.gov Will display all government assets available for purchase GSAAuctions linked to GovSales.gov Federal Asset Sales Centers Encompasses: Real and Personal Property Surplus Exchange/sale Forfeited As of 2007, all agencies must use an approved sales center to sell their surplus personal property. Currently, GSA is 1 of 4 approved FAS Sales Centers

Gives you the abililty to track your sale items on line, make changes, withdraw items, and report exchange /sale property

What can I expect if item sells? When an item sells a copy of the Purchaser’s Receipt will be sent via at the time of payment to the custodian. Upon pick up of the property, the custodian should have the bidder or shipping company sign the receipt for pick up, and fax this back to the GSA sales contracting officer.

What can I expect if and item does not sell? When an item doesn’t sell, the Sales Contracting Officer (SCO) will contact the owning agency’s Point of Contact (POC) and coordinate a second attempt to sell. If the item doesn’t sell after agreed attempts by the owning agency and SCO, a return letter for local disposal or an from the Sales Contracting Officer will be sent to the owning agency POC.

Step 6 – So, what happens if You Cannot Transfer, Donate Nor Sell the Property? You may, Exercise authority to Abandon/Destroy property provided the agency makes a written finding that the property has no commercial value or the estimated cost of care and handling would exceed the proceeds from its sale. FMR thru 330

But Remember… You must not A&D property in a manner that is dangerous to public health or safety. Choose a responsible recycling company. If an entity wants to buy the property, you must implement sales procedures.

Property Disposal Summary There are 6 main phases of the Federal disposal process 1.Internal reuse 2.Report excess to GSA 3.Excess transfer 4.Surplus donation 5.Sales to the public 6.A & D / Recycling There is specific terminology –Excess –Surplus –Report –Screen and Select There are systems supporting the program –GSAXcess®- ComputersForLearning –GSA Auctions® - MySales

Great Lakes Region PPM Staff Stephanie Wilson-Coleman, Director Ph: (312) Miriam Van gerpen, Supv. Ph: (312) , Kiki Lambropoulus Ph: (312) , Area Property Officers OH, MI - Doug Janka Ph: (513) , WI, IL - Maria Lopez Ph: (312) , IN, MN - Taronda Reed Ph: (312) , Sales Contracting Officers OH - Candice Waddles Ph: (312) , IL - William Siggeman Ph: (312) , MI, IN - Mary Scott Ph: (517) , MN, WI - Dorianne Hale Ph: (312) ,