EXEMPTIONS RELATING TO UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100190005-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 65
• Document Creation Date: November 17, 2016
• Document Release Date: August 6, 2000
• Sequence Number: 5
• Publication Date: July 13, 1955
• Content Type: REPORT

Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
EXEMPTIONS RELATING TO UTILIZATION AND
DISPOSAL OF SURPLUS PROPERTY
HEARING
SUBCOMMITTEE ON REORGANIZATION
COMA I.TTEE ON
GOVERNMENT OPERATIONS
UNITED STATES SENATE
EIGHTY-FOURTH CONGRESS
S. 2367
A BILL RELATING TO THE AUTHORITY OF THE GENERAL
SERVICES WITH RESPECT TO THE UTILIZATION
AND DISPOSAL OF EXCESS AND SURPLUS
GOVERNMENT PROPERTY UNDER
THE CONTROL OF EXECUTIVE
AGENCIES
Printed for the use of the Committee on Government Operations
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1955
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
SENATE COMMITTEE ON GOVERNMENT OPERATIONS
JOHN L. McCLELLAN, Arkansas, Chairman
HENRY M. JACKSON, Washington JOSII'H It. McCARTHY, Wisconsin
JOIIN F. KENNEDY, MassaeIiusetts KARL E. MUNDT, South Dakota
STUART SYMINGTON, Mis,ouri MARGARET CHASM SMITH, Maine
SAMUEL J. ERVIN, Ja., North Carolina NORRIS COTTON, New Hampshire
HUBERT H. HUMPHREY, Minnesota GEORGE H. BENDER, Ohio
STROM THURMOND, South Carolina THOMAS P. MARTIN, Iowa
WALTER I,. REYNOLDS Chief Clerk and Staff` Director
ANN M. GRicxis, Assistant Chief Clerk
Gr.ENN K. SHazvar, Professional Staff Member
ELI F. NOBLEMAN, Professional Staff Member
RICHARD J. O'MELIk, Professional Staff 2IIcns cr
SuBCO&I-UITTEP, ON REORGANIZATION
JOHN .. KENNEDY, Massachusetts, Chairman
HUBERT H. IHUMPHREY, Minnesota MARGARET CHASE SMITH, Maine
STROM THUIIMOND, South Carolina NORRIS COTTON, New Hampshire
STUART SYMINGTON, MisFourl THOMAS E. MARTIN, Iowa
MII,E7 SCULL, Jr., Professional Staff Alember
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
CONTENTS
S. 2367, a bill relating to the authority of the Administrator of General
Services with respect to the utilization and disposal of excess and sur-
plus Government property under control of executive agencies--------- 2
Staff Memorandum No. 84-1 1, Subcommittee on Reorganization, relative
to bill S. 2367---------------------------------------------------- 2
Appendix A-Recommendations of the Hoover Commission upon stat-
utory exemptions from General Services Administration authority
relative to disposal of surplus property_ ----------------------- 6
S. 2591 (revised bill), to amend section 602 of the Federal Property and
Administrative Services Act of 1919 with respect to the utilization and
disposal of excess and surplus property under the control of executive
agencies----------------------------- ---------------------------- 32
Statement of-
Brundage, Percival F., Deputy Director of the Bureau of the Budget,
accompanied by George Mullins, Bureau of the Budget ----------- 29
Elliott, Maxwell If., General Counsel, General Services Administra-
tion, accompanied by Lewis C. Tuttle, Deputy Director, Personal
Property Utilization and Disposal Division, and Raymond G.
Church, Assistant Director, Real Property Disposal Division, Gen-
eral Services Administration--------------------------------- 14
Wise, Gerald S., Executive Director, Hoover Commission Task Force
On Federal Surplus Property, Baltimore, Md___________________ 9
Letters, statements, etc., submitted for the record by-
Elliott, Maxwell It., General Counsel, General Services Administra-
tion: General Services Administration's regulations dealing with
utilization and disposal of classified property-------------------- 17
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
EXEMPTIONS RELATING TO UTILIZATION AND
DISPOSAL OF SURPLUS PROPERTY
WEDNESDAY, JULY 13, 1955
UNITED STATES SENATE,
SUBCOMMITTEE ON REORGANIZATION,
OF TIIF, COMMITTEE ON GOVERNMENT OPERATIONS,
Washington, D. C.
The subcommittee met, pursuant to call, at 11 a. in. in room 155,
Senate Office Building, 'Washington, D. C., Senator John F. Kennedy,
subcommittee chairman, presiding.
Present : Senator John F. Kennedy, Democrat, Massachusetts; Sen-
ator Thomas E. Martin, Republican, Iowa.
Present also : Ann M. Grickis, assistant chief clerk; Miles Scull, Jr.,
professional staff member, Glenn K. Shriver, professional staff
member.
Senator KENNEDY. The hearing will come to order.
Today the Reorganization Subcommittee of the Senate Committee
on Government Operations is convened to hear testimony on certain
aspects of the report on the use and disposal of Federal surplus prop-
erty submitted to the Congress by the Commission on Organization
of the Executive Branch of the Government, the Hoover Commission.
The diligent and comprehensive efforts of the Hoover Commission,
chairmaned by former President Herbert Hoover, have resulted in
approximately 360 positive recommendations contained in nearly 20
separate reports. Of these reports those dealing with paperwork
management, transportation, legal services, surplus property, busi-
ness enterprises, depot utilization, real property and budget and ac-
counting have been referred to the Senate Committee on Government
Operations, and to this subcommittee.
It is our intention to hold hearings on the legislative recommenda-
tions and to recommend enactment of those bills which in our judg-
ment will result in greater governmental efficiency and economies in
the Government operation. I am hopeful that it will be possible to
report out a bill this session based upon the recommendations of the
Commission on utilization and disposal of surplus property, and
that in the early months of the next session it will be possible to con-
tinue our hearings on the other legislative proposals of the Hoover
Commission reports which have been referred to this subcommittee.
In particular, the subcommittee is interested in S. 2367 introduced
in the Senate on June 28, 1955, which is intended to implement rec-
ommendations Nos. 4 and 20 of the Hoover Commission report on
surplus property.
The problems involved in utilizing Government-owned property
in the most efficient manner and in disposing of surplus property to
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
2 UTILIZATION 1!.ND DISPOSAL OF SURPLUS PROPERTY
the best interests of the Government are complicated and have oc-
cupied the time and talents of many congressional committees and a
large number of people: in the executive branch of the Government.
Because of the billiens of dollars invested by the taxpayers in the
property owned by the. Federal Government. it is important that we
continue to explore these matters to the end that the taxpayers can be
assured that the property purchased by their money is being wisely
used and disposed of when it is necessary in such a manner most bene-
ficial to the Government and to the people.
(S. 2367, together with the staff memorandum No. 84-4-1, Subcom-
r;iittee on Reorganization, dated July 5, 1955, is as follows:)
[;,. 23117, 84th Cong., 1st sess.1
A B,11 1, Relating to the authority of the Administrator of General services with respect
to the utilization and disposal of excess and surplus Government property under the
control of executive agencie?
Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled, That, notwithstanding tiie provisions of sec-
tion 002 (d) of the Federal Property and Administrative Services Act of 1949,
as amended, or of any other provision of law, on and after sixty days after the
date of enactment of this Act, the Administrator of General Services shall have
exclusive authority with :'espect to the utilization and disposal of excess and
surplus Government prope_,ty, real and personal, as defined _n the Federal Prop-
erty and Administrative Cervices Act of 1949, as amended, which is Linder the
control of any executive agency: Provided, however, That the President may
make such specific exemptions by Executive order from the exercise of such au-
thority by the Administrator of General Services as,he deems to be necessary in
the public interest: And provided further, That this section shall not be appli-
cable to property under the control of executive agencies outside of the conti-
nental limits of the United States, Hawaii, Alaska, Puerto )4.ico, and the Virgin
Islands.
SEC. "'. All laws and parts of laws which are inconsistent with the provisions
of this Act are hereby repealed.
CF.NATE GOIEzN!TENT nPEItATlONB Co;brni I? itE,
SITncOMr3MITTEE ON REORGANIZATION,
SIFAFF MEMORANDUM No. 84-1-1
To : Members of Subcommittee on Reorganization.
from : Miles Scull, Jr., professional staff member.
Subject: Hearings on S. 2167, Mr. Smathers (for Mr. Kennedy) ; relating to
the authority of the Administrator of General Services with respect to
utilization and disposal of excess and surplus Government property under
the control of executive agencies.
Hearings on this bill have been set for 10 a. in., Wednesday, July 13, 1955.
S. 2367 implements recommendations of the Hoover Commission Report on
Surplus Property, and the Hoover Commission Task ForcE Report on Surplus
Property, as hereafter indicated.
If enacted into law the bill would remove statutory exemptions of certain
executive departments and agencies from the General Services Administra-
tion's authority governing the utilization and disposal of surplus property, both
real and personal. Specif: tally, the bill would make the exemptions in section
602 (d) of Public Law 1512, the Federal Property and Administrative Services
Act of 1949 as amended, inapplicable to section 202 (property utilization) ; sec-
tion 203 (disposal of surplus property) ; and section 204 (pr(cedures for transfer
or disposition of property) of the Act.
The bill does this by giving the Administrator of General Services exclusive
authority with respect to utilization and disposal of excess and surplus Gov-
ernment property, real and personal, (as defined by Public Law 152) *
which is under control of any executive agency."
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY 3-
However, the bill gives the President authority to "make such specific ex-
emptions from the exercise of such authority by the Administrator of General
Services as he deems to be necessary in the public interest." Also, the bill is
limited to the continental United States and its possessions.
In effect, therefore, the bill lifts the statutory exemptions, but empowers the
President to either continue exemptions in force, (or impose new exemptions)
in the interests of national security, or otherwise as he deems best.
I(OOPN:R COMMISSION RECO-MMENDATIOyS
The Hoover Commission, in its Report on Surplus Property, made the follow-
ing specific recommendations concerning statutory exemptions from General
Services Administration authority :
Recowiniendation-No.4, Report on Surplus Property (p. 21)
"That the Federal Property and Administrative Services Act of 1949, as
amended, be revised :
"(a) to eliminate all statutory exemptions for the executive branch of
the Government from General Services Administration authority for utili-
zation and disposal of all excess and surplus personal property. [Italics
added.]
"(b) to authorize the President to prescribe by Executive order specific
exemptions from General Services Administration authority where fully
justified in the public interest."
Recommendation No.. 20, Report on Surplus Property (p. 81)
"That the Federal Property and Administrative Services Act of 1949, as
amended, be revised :
"(a) to eliminate all statutory exemption for the executive branch of the
Government from General Services-Mu linistrati op authority for utiliza-
tion and disposal of all excess and surplus real property [italics added ] ;
"(b) to authorize the President to prescribe by Executive order specific
exemptions front. General Services Administration authority where fully
justified in the public interest."
(The Hoover Commission's justification for the above recommendations is at-
tached to this tnemorandmu as appendix A.)
In addition to its Report on Surplus Property, the Hoover Commission, in its
Report on Real Property &lanagemuent, made the following recommendation
which would remove statutory exemptions in Public Law 152 relating to all
phases of real property management, as well as disposal of surplus property.
Recommendation No. 4, Report on Real Property Management (p. 15)
"That the Federal Property and Administrative Services Act of 1949, as
amended, be revised-- -
"(a) to eliminate all statutory exemptions for the executive branch of the
Government from the authority of the General Services Administration re-
lating to real property management [italics added] ;and
"(b) to authorize the President to prescribe by Executive order specific
exemptions front the authority of the General Services Administration re-
lating to real property management where such exemptions are fully justified
in the public interest."
(The textual justification of the Hoover Commission for this recommendation
is attached in appendix A.)
IIOOCER COMMISSION TASK FORCE RECOMMENDATIONS
The Hoover Commission Task Force Report op Surplus Property contains the
following recommendations concerning statutory, exemptions of executive de-
partments and agencies under Public Law 152:
Recommendation No. 3, Task Force Report, Chapter 2: Excess Personal
Property (p. 52)
"3. That section 602 (d) of the Federal Property and Administrative Serv-
ices Act of 1949, as amended, be revised to require those agencies therein
exempted from the provisions of the act to report all excess personal property
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
4 UTILIZATION 2ND DISPOSAL OF SURPLUS PROPERTY
in their inventory to the Material Redistribution Division for screening, except
for those categories of property which are classified for security reasons or
which under present reguh-tions are classified as nonreportable."
It may be noted that this recommendation (repeated on p. 88) applies solely
to the reporting of "exce:,s persona] property" to the Material Redistribution
Division of the Department of Defense.' The following recommendations apply
to disposal of surplus property, personal and real.
Recommendations Nos. 1, 2, and 3, Task Force Report, Chapter 4: Disposal of
15wrplus Property (p. 16.4)
"It is recommended :
"1. That present delegations of authority for property disposal by the. Admin-
istrator of General Services to Federal departments and agencies to be con-
tinued. (See p. 119.)
That agencies now exempt under provisions of Public Law 152 be made
subject of General Service:; Administration regulation over their disposal opera-
tions, excepting for properties which are classified for security reasons. (See
V. 116.)
"3. That the Administrator of General Services, under the authorities and
responsibilities prescribed for him by Public Law 152, iss ie adequate regula-
tions to govern disposal methods and establish uniform disposal procedures.
(See p. 118.)
Recommendation No. 1, tatik-force report, chapter 5; real property (p. 201)
"It is recommended :
"1. Exemption from the provisions of Public Law 152 should be rescinded as
follows :
"(a) Tennessee Valley Authority, Housing and Home Finance Agency, and
the Government Printing Office, with respect to the disposal of real property; and
"(b) Maritime Commission with respect to the disposal of shipyards, ship
sites, terminals, piers, dock!;, and warehouses."
AGENCIES, DEI'AUTATENTS, OR. OFFICIALS PRESENTLY EKEMPTED
The following agencies, departments, or officials are presently- exempted by
section 602 (d) of Public Law 152 from authority of the General Services Admin-
istration, partial or complete, over the disposal of excess or surplus property:
602 (d) (1). The President, under the Philippine Property Act of 1946.2
602 (d) (2). Any executive agency with respect to price support, grants to
farmers, stabilization, foreign aid, relief, etc.
602 (d) (4). The National Military Establishmentwith respect to * * * occu-
pied territories!
602 (d) (5). The Secret.ry of Defense with respect to the National Industrial
Reserve Act of 1948.
002 (a) (7). The Secretary of State under the Foreign Service Buildings Act
oi' May 7, 1926.2
602 (d) (8). The Secretaries of the Army, Navy, and Air Force with respect
to the act entitled "An Act to Expedite the Strengthening of the National
Defense," approved July 2, 19-10 (54 Stat. 712).
602 (d) (9). The Secretary or the Department of Agriculture under (a) the
National School Lunch Act. (b) the Farmers Home Administration Act of 1946,
Public Law 298, 80th Congress (disposal of labor supply centers, etc.), and
various other acts.
602 (d) (10). The Secretary of Agriculture, Farm Credit Administration,
etc., under the Farm Credit Act of 1937.
602 (d) (11). The Hou:dng and Home Finance Agency or any constituent
agency therein, with respec : to certain property under the National Housing Act.
602 (d) (12). The Tennessee Valley Authority with respect to any property
acquired in connection with any program of processing, manufacture, production,
or force account construct'.on.
i "Excess" property Is property which is not needed by one agence, but may be utilized
by another agency. "Surplus" property is property which has been declared excess by one
agency, is not needed or cannot: be utilized by another agency (I. e., the Government has no
need for it), and, therefore, may be disposed of by donation (to States, etc.), by public
sale, or scrapping.
2 Not affected by S. 2367, the provisions of which are limited to the United States and
possessions.
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY 5
002 (d) (13). The Atomic Energy Commission.
602 (d) (14). Administrator of Civil Aeronautics or the Chief of the Weather
Bureau, with respect to airport or airway property.
602 (d) (16). The United States Maritime Commission.
602 (d) (17). The Central Intelligence Agency.
602 (d) (18). Joint Committee on Printing.
An analysis of section 602 (d) of Public Law. 152, with more detailed descrip-
tion of the exemptions listed above will be provided members of the subcommittee
in advance of the hearings.
GENERAL
Agencies were granted exemptions by the Congress from the provisions of Pub-
lis Law 152, governing disposal of surplus property for a variety of reasons,
among them-
(a) The agencies convinced Congress they could better dispose of their
own surplus property ;
(b) The Congress believed that the national security would be better
served if certain agencies retained authority to dispose of certain types of
property;
(c) Certain types of property (for example, contaminated materials)
could best be disposed of by the owning agencies;
The Hoover Commission, as noted in the accompanying appendix, maintains
that most of these statutory exemptions should be eliminated-
(a) Because the justification for exemptions made by agencies in 1949 in
many instances no longer exists; and
(b) Central disposal of surplus property by General Services Adminis-
tration would produce economies.
The General Services administration will favor lifting most statutory exemp-
tions. Most of the agencies affected will not, although there is indication the
administration will support S. 2367 so long as the President is given authority
to exempt agencies by Executive order.
Staff investigation indicates that exemptions of certain agencies, such as
Atomic Energy Commission, Central Intelligence Agency, and Maritime Com-
mission sale of ships, partially or completely, probably should be continued,
either on a statutory or executive basis. On the other hand, GSA will present
testimony indicating that exemptions of many other agencies, departments, and
officers should be eliminated or curtailed.
It is difficult to estimate the savings that would accrue from giving GSA
authority for disposal of surplus property owned by the presently exempted
agencies. GSA will make a forceful argument that substantial savings would be
realized based upon net recovery to the Government on its own disposals and
that recovered by certain exempted agencies. The Hoover Commission task force
director has been requested to present an estimate of savings to the subcommittee
at the hearing.
It should be noted that S. 2367, the Hoover Commission recommendations, and
the section citations from Public Law I r)2, apply only to statutory exemptions
governing disposal of excess or surplus property. Public Law 152 also exempts
agencies from General Services Administration authority over other functions.
1. The bill does not eliminate any exemptions. It does away with statutory
exemptions, but empowers the President to continue existing exemptions, modify
those in existence, or impose new ones, by Executive order.
2. The removal of exemptions from GSA authority does not necessarily mean
that GSA would conduct all agency surplus property disposal programs. GSA
now has authority to delegate the operation of surplus property disposal pro-
grams to agencies. Points that might be raised in connection with utilization
of this authority are:
(a) To what extent has the GSA delegated this authority in the past?
For disposal. of real property? Of personal property?
(b) Should the President (if given the authority) eliminate certain
exemptions; to what extent does the GSA intend to operate the disposal
programs ; to what extent to delegate authority?
65642-55--2
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
(c) What has been the past experience on disposal costs? Is GSA's
record better than indi''idual agencies?
(For the fiscal quarter ending March 31, 1955, GSA showcd a net return of 12
percent of the initial cost of disposal items, TVA 29 percent, ABC 20 plus percent,
and t:he Armed Services 7 percent. Source : Bureau of the Budget.)
Should GSA take over operation of large scale disposal programs, obviously
that agency would require more money and more people.
(d) How many additional employees would be required if GSA assumed
operational responsibility for military disposal programs--400, 500, 600?
How much more money, etc.? Who would be accountable?
(It is the staff's understanding that GSA has or intends to propose a program
which woudl give that agency operational authority for disposal of military
Surpluses.)
3. The President, if given the authority in S. 2367, would not at once remove
exemptions granted to certain agencies, such as the Central Intelligence Agency,
the Atomic Energy Commission, the Department of Agriculture (for price support
programs, etc.), the Federal Housing Administration, and others.
Such across-the-board application of GSA's regulations would create serious
problems with respect to certain specific programs, such as the Department of
Agriculture's price or conmodity-support programs! and the Federal Housing
A.dministration's real property-disposal programs, which would probably out-
weigh economies which might be gained.
4. Economies.-As noted previously, the overall cost of the Government's
present disposal programs--and economies that might acc:cne by greater cen-
tralization of disposal authority in GSA-are difficult to ascertain, but witnesses
have been asked to project such figures, either for specific agencies, or the overall
program.
Muss Sc 'r.L, Jr.
RECOMMENDATIONS OF TIIE HoovER COMMISSION UPON STATUTORY EXEMPTIONS
FROM GENERAL SERVICES ADMINISTRATION AUTHORITY RELATIVE TO DISPOSAL
OF SURPLUS PRORERTY
i sport on ,'surplus Property
Recommendation No. 4, L'oover Cosnnission report on sere-plus property (pp.
20-21)
"STATUTORY BASIS FOR UTILIZATION
"The statutory basis for efficient utilization of excess property is the Federal
Property and Administrative Services Act of 1941), as amended (Public Law
1,12, 81st Cong.). By this act the Administrator of Genera. Services is respon-
sible for prescribing policies and methods to promote maximum utilization of
excess property by executive agencies. Availability of such property is made
known by a screening process.
"Various civilian agencies are entirely or partially exempted by law from
reporting their excess property for screening or from other phases of property
management. These inclufe the Department of Agriculture, The Housing and
home Finance Agency, the Tennessee Valley Authority, the Atomic Energy
Commission, the Central Intelligence Agency, and the Federal Maritime Ad-
ministration. Because of ouch exemptions, opportunities are lost for redistribu-
tion and utilization of excer?,ses.
"Our task force noted fir example that surplus sales offerings of the Mari-
t'me Administration, included standard pipe and tubing, cable, steel. beams,
office equipment, building riaterials, industrial machinery and other common-use
l hems.
"Public interest demands that with the exception of certain property classi-
fied for security reasons, and unless the economy of operations require other-
wise, exemptions from the responsibility to report excess property for screening
by defense and civilian agencies should be held to a minimum. The exemp-
tions now granted in the Federal Property and Administrative Services Act of
1^D49 should be individually reviewed with a view to requiring rejustification
in each case.
"Recom:nmendation No. 4
"That the Federal Property and Administrative Services Act of 1949, as
amended, be :revised :
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY 7
"(a) To eliminate all statutory exemptions for the executive branch of the
Government from General Services Administration authority for utilization and,
disposal of all excess and surplus personal property.
"(b) To authorize the President to prescribe by Executive order specific
exemptions from General Services Administration authority where fully justi-
fied in the public interest."
Recornm.endation No. 20, Hoover Commission report on surplus property (pp.
79-81)
"STATUTORY BASIS FOR REAL PROPERTY DISPOSAL
"Prior to enactment of the Federal Property and Administrative Services
Act of 1949, real property-management responsibilities were scattered among
the heads of many agencies. The 1949 legislation provided a central vehicle
to achieve more economical and efficient use and more orderly disposal of Teal
property.
"However, as noted in the discussion of excess and surplus personal prop-
erty, a number of agencies still are exempt from General Services Administra-
tion jurisdiction with respect to certain disposal functions. The principal
agencies exempt or partially exempt for the disposal of domestic real prop-
erty are:
"1. Atomic Energy Commission, completely exempt but voluntarily disposes
real property through General Services Administration in certain cases.
"2. Central Intelligence Agency, completely exempt.
"3. Tennessee `Talley Authority, with respect to the disposal of land and
buildings.
"4. Maritime Administration, with respect to the disposal of shipyards, ship
sites, terminals, piers, docks, and warehouses.
"5. Housing and Home Finance Agency, with respect to disposal of residential
or other real property held or acquired in connection with housing insurance and
loan activities.
"6. Civil Aeronautics Administration, with respect to airport property and
airway property for use as such property.
"As in the case of recommendation No. 4 which dealt with excess and surplus
personal property, we believe that the public interest also demands that, with
the exception of certain real property classified for security reasons, and unless
the economy of operations requires otherwise, exemptions from General Services
Administration authority in connection with the reporting and screening of excess
real property and the disposal of real property should be held to a minimum.
The exemptions now granted by the Federal Property and Administrative Serv-
ices Act of 1949, as amended, should be reviewed individually with a view to
requiring rejustification in each case.
"Recommendation No. 20
"That the Federal Property and Administrative Services Act of 1949, as amend-
ed, be revised :
"(a) To eliminate all statutory exemptions for the executive branch of the
Government from General Services Administration authority for utilization and
disposal of all excess and surplus real property ;
"(b) To authorize the President to prescribe by Executive order specific exemp-
tions from General Services Administration authority where fully justified in the
public interest."
Report On Real Property Management
Recoamnendation. No. i, Hoover Commission Report on Real Property Manage-
ment (pp. 7-15)
"The intent of Congress in enacting the Federal Property and Administrative
Services Act of 1949 (Public Law 152, 81st Gong.) as stated in the `declaration
of policy' was to provide for the Government an economical and efficient system
for: (a) the procurement and supply of personal property and nonpersonal
services; (b) the utilization of available property; (c) the disposal of surplus
property; and (d) records management.
"Although `property' as defined in the act is not limited to personal property,
the act contains no provision for a unified management of real property. Title
II of the act is called property management but it is primarily concerned with
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
C i UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY
personal property and in no way spells out the concept of real property manage-
ment.
"The act authorized the Administrator of General Services 'to make surveys
of Government property and property management practices and obtain, reports
thereon from executive agencies.' Moreover, a Presidential directive (14 F. R.
3699) of July 1, 1949, increased the responsibility and authority of the Admin-
istrator in this respect and directed him, in consultation with the Bureau. of the
Budget, to establish stanc.ards, regulations, manuals, and procedures to guide
the executive agencies 'in ascertaining whether their operations in the field of
property and records management are efficient and economica * * *'
"Our task force noted that those regulations one real-property management
resulting from such surveys which have been issued by the Administrator of
General Services are not complied with by other Government agencies and no
effort is made to enforce compliance. Those manuals which have been issued
I ave primary application to the internal activities of tl.e General Services
Administration itself and apply to other agencies only when they are tenants
of buildings operated by they General Services Administration.
"The sum of all of thi , is that present laws touch on the subject of real
property management, but no fundamental concept In this area has been devel-
oped. The Administrator of General Services appears to have far-reaching
responsibilities for real property management, but his authority to accomplish
these responsibilities is unclear and diffused.
"Neither the General Services Administration nor the Bureau of the Budget is
charged with the respom ibility of overall real property management; policy
and procedures, nor are the various Federal agencies obligated to follow man-
agement policy directives.
"Another source of confusion is the fact that a number of executive agencies
are entirely or partially exempted from the authority of the Administrator of
General Services, by the Federal Property and Administrative Service Act of
1949, as amended, as follows :
"(a) Lands exempted.--Public domain; national forests; national parks.
"(b) Executive agencicr wholly exempted. The Atomic Energy Commission
end the Central Intelligence Agency.
"(c) Executive agencies: exempted from certain provisions relating to real
properti/.-(1) Departmei t of Defen;e with respect to the departmental reserve,
the National Industrial Re>erve, and property in foreign territories.
"(2) The Commodity Corporation c=f the Department of Agriculture.
" (3) Properties of the Department of States in foreign countires.
"(4) Rousing and Home Finance Agency, residential properties.
"(d) Buildings exempted.-(1) Post office buildings used predominantly for
post office purposes.
"(2) Any building located in any foreign country.
"(3) The Treasury Building and the Bureau of Engraving and Printing
I tuilding.
"(4) Buildings of the Bureau of Standards,
"(5) Buildings of the Smithsonian Institution.
"(6) Any building of the Department of Defense, unless a permit for its use
by another agency or agencies shall have been issued by the secretary of Defense.
"(7) Any building which the Director of the Bureau of the Budget finds to
be a part of a group of buildings whirls are (a) located in the same vicinity; (b)
utilized wholly or predominantly for the special purposes cf the agency having
custody thereof, and (c) not generally suitable for the use of other agencies.
"Our task force stated Effective execution by GSA of its responsibility under
Public Law 152 (81st Cong.) becomes almost impossible under such omissions
and restrictions.'
"1 However, as regards space assignment, sec. 210 (e) of the Federal. Property and
Administrative Services Act of 1949, as a}vended, provides that 'Notwithstanding any other
provision of law, the Administrator is authorized, in accordance with policies and direc-
lives prescribed by the Presir ant under s-'c. 203 (a) and after consultation with the heads
of the executive agencies affected, to assign and reassign space In all executive agencies in
e-overnment-owned and leased buildings in and outside the District of Columbia upon a
determination by the Admini::trator that such assignment or reassignment is advantageous
1-0 the Government in terms of economy, efficiency, or national security.' (this provision
,vould appear to be in conflict with the provisions for exemption."
Approved For Release 2000/08/17 : CIA-~DP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY 9
With the exception of certain real property classified for security reasons, and
unless economy and efficiency of operations require otherwise, public Interest de-
mands that exemptions should be held to a minimum. For greater flexibility
and effectiveness of management to meet varying circumstances, exemptions,
where justifiable, should be by Executive order. The exemptions now granted by
the Federal Property and Administrative Services Act of 1949, as amended,
should be reviewed individually with a view to requiring a rejustification in each
case.
"Recommendation No. f
"That the Federal Property and. Administrative Services Act of 1919, -as
amended, be revised---
"(a) to eliminate all statutory exemptions for the executive branch of the Gov-
ernment from the authority of the General Services Administration relating to
real property management; and
"(b) to authorize the President to prescribe by Executive order specific ex-
emptions from the authority of the General Services Administration relating to
real property management where such exemptions are fully justified in the public
interest."
Senator KENNEDY. It is our intention to hear first this morning
from Mr. Gerald S. Wise, of Baltimore, Md., who was staff director
of the Hoover Commission Task Force on Utilization and Disposal
of Surplus Property, who will explain the reasons for the recoin-
inendation in this field made by the task force and accepted by the
Hoover Commission.
We are glad to see you, Mr. Wise.
STATEMENT OF GERALD S. WISE, EXECUTIVE DIRECTOR, HOOVER
COMMISSION TASK FORCE ON FEDERAL SURPLUS PROPERTY,
BALTIMORE, MD.
Mr. WISE. Mr. Chairman and members of the committee, I am
making this statement in the unavoidable absence of Gen. Robert
E. Wood, who is chairman of the task force referred to.
Senator KENNEDY. I want to express my regret that General Wood
was not able to be here, because I know how much time and effort he
gave to the task force and the report itself, and what general contribu-
tions he has made, but we are particularly glad to have you, because
I know how much work you did on it, too.
Mr. Wisx. This statement is made without prior consultation with
General Wood, owing to the fact that he has been in Europe, but with
knowledge of his concurrence with my views on the matter.
Various civilian agencies are entirely, or partially exempt from the
provisions of Public Law 152 of the 81st Congress, which provides
that administration over surplus Federal property shall be vested
within the General Services Administration. Our task force has no
knowledge as to the reasons wily these exemptions were specifically
provided in section 602-D of that law, but assumes from the nature
of the exempt agencies that they individually felt that their various
interests would be served best by the provision of such exem ption,
and the right to manage their own property without compromise,
delay, or submission of judgment to another administration.
The agencies specifically exempted included the Department of
Agriculture, Atomic Energy Commission, the Housing and Home
Finance Agency, the Central Intelligence Agency, the Tennessee
Valley Authority, and the Federal Maritime Administration.
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
10 UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY'
In the course of our inquiry into the whole broad question of the
use and disposal of surplus property, we found frequent and extensive
disposals by these agencies, under their own administration; disposals
obviously occurring; under ground rules laid down by them, which
may, or may not, have been coordinated with GSA, and which may
not necessarily have I:een in keeping with the broad experience, and
ground rules of that ar:;ency.
I do not imply that no coordination was effected by these agencies
kti'i_th GSA, nor that the materials which were excess to their require-
.nents were not screened by GSA to be sure that dis-oosal would. not be
;4ffected at substantial. loss to the Government, while other agencies
.night be buying thai; same material. In fact, we have reason to
iielieve that the assistance and advice of GSA is rather generally
sought by the exempt agencies. On the other hand, we did find
instances of sales of substantial quantities of common-use materials
such as lumber, pipe, construction materials and equipment, tools,
and even of real property, which we are convinced could have been
utilized by other agencies, had the disposals been positively subject
to the provisions of the Federal Property and Administration Services
Act of 1949.
The GSA is better ?,ble to de-`ermine the impact apon the economy
,f large-scale disposal,,;. It is better equipped to determine the method
Of sale, and in most in:,lances, to provide the most advantageous sales
ogencv. GSA has approved contract sales agents; it has buyers' lists,
:rn extensive field organization 4.rained in procedure, and can protect
the ins erests of the Government in any type of disposal. What is more
iinportalit is that GSA is the one agency which can find the most ad-
antageous customer for all Government surplus, through its screening
processes. The greate,t; potential customer for Government surplus
is the United States Government, and GSA is the one agency charged
with the job of insuring utilization within the Government, before
surplus is fed back into the national economy at a tremendous mark-
down in value.
Our task force was of the opinion that if GSA was to be effective
for all other agencies, including the vast complexities of the Depart-
raent of Defense, that it might be equally effective for those exempt
agencies, and we have sso recommended. We did recognize that na-
tional security and public interest might be prejudiced if certain clas-
sified matters was indi..,criminately dumped into public view.
The Hoover Commission endorsed this specific recommendation,
and from their report to the Congress in April of this year, entitled
"Surplus Property," or page 21 of their report, I quote :
P,.ecom 7nendation No. IV
That the Federal Properly and Administrative Service Act of 1949, as amended,
he revised ;
(a) to eliminate all stautory exemptions for the executive branch of the
Government from General Services Administration authority for utilization and
disposal of all excess and sr rplus personal property.
(b) to authorize the President to prescribe by Executive order specific exemp-
tions from General Servic?s Adminh;tration authority where fully justified: in
the public interest.
Now, as I see this w.iol.e proposal, exemptions are an invitation to
bureaucracy and defe,,J organizational' and functional integration.
We find a crying need :or better integration of the business functions
of the Government.
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CI~ QP 9 A0flq,a$ 9fl005-011
UTILIZATION AND D
There are just too many watertight compartments in Government.
There is too much, I might say, empire building, a tendency to be
all things in all matters.
There are too many duplications of functions. There are too many
cases of the right hand within the Government not knowing what the
left hand is doing.
You may ask what savings might be involved in these recommenda-
tions, and I would say, first, that the committee should be aware of
the fact that of all inventories of the Government in a ready-for-issue
status-I am speaking of inventories of supplies, materiel, equipment
of all sorts-there is approximately only three-quarters of 1 percent
of this Nation's total inventory which is in the hands of all civilian
executive agencies, meaning that well in. excess of 99 percent of the
Federal inventories are in the hands of the, Department of Defeccse.
In respect to savings, I would say that they would occur primarily
in utilization. I might stop there to say that the inventories of all
civilian executive agencies as of September 1, 1954, including the stock-
piles and warehouses of the General Services Administration and. even
including the fuel stockpiles of that Administration were very small
in relation to the total held by the Government. If I remember cor-
rectly, they were somewhere in the neighborhood of $290 billion at
that time.
When you isolate that portion of that limited inventory, and I say
"limited" even though it is a very large inventory, but limited iii rela-
tion to the $60 billion of personal property which the Government
probably holds in total today. What proportion of that inventory
might turn out to be excess to the requirements of the agencies now
holding it or surplus to any requirement of the Government may be
quite limited. Nevertheless we know that it is a multi-million-dollar
program.
We did review the offeri errs and sales held during the 8 or 10 months
of our inquiry into this entire subject and we found rather substantial
disposals being handled.
We feel that the savings are going to occur primarily in utilization
if subjected to the screening processes of the General Services Admin-
istration. We feel that You will eliminate some duplication of organ-
ization as obviously all of these agencies must maintain policy and
operational personnel for the purpose of effectuating their disposals.
We feel that there will be less possibilities of market dislocation,
should there occur any dumping of any substantial quantities of any
particular commodity.
And we also feel there are better returns to the Government if this
program is put in the hands of qualified, trained disposal personnel.
I shall be glad to answer any specific questions, Mr. Chairman.
Senator KENNEDY. We appreciate your statement etovet much.
Senator MARTIN. This is a very good, clear statement, giving us
the information. I want to add that to your comment. I have no
particular question to ask about it.
I would like to know about the departments that you list i,, the
third paragraph. Are, they the only ones?
Mr. WISE. Not necessarily. I find that the real property task force
of the Hoover Commission has apparently gone into the matter a little
further than we may have and has found some other partial exenip-
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
12 UTILIZATION _A-?VD DISPOSAL OF SURPLUS PROPERTY
Lions in a variety of other agencies, particularly applicable to real
property.
Senator MARTIN. How are those exemptions established?
Mr. WrsE. They were specifically established, I be sieve, in the public
law of the 81st Congress, Public Law 152. And I presume they were
negotiated by the presentation of factual information which the Con-
gress saw fit to accept; at; that timr,.
Senator KENNEDY. Is there some difference between the task-force
report; and the recommendation s of the, Hoover Commission? Did
me task force make ai recomm nndatio.n that certain exemptions be
repealed, while the hoover Commission made the recommendation
that all exemptions be repealed?
Mr. WISE. No, I think we were in complete harmony on that.
We did recognize, as I stated, that there would be certain circum-
stances under which such agencies as the Central Intelligence Agency
or the Atomic Energy Commission might have disposals which would
prejudice their operations were they to be submitted to complete cross
reference with the General Services Administration, and for that
reason we did recommend the oportunity for the President to stipulate
these exemptions, but we feel. that in general they should all be re-
scinded.
I believe that S. 2367 as drawn provides adequately for this. I
think it is in harmony both with the recommendations of the Corrr-
Mission and of our task :orce.
Senator KENNEDY. `i"hat is going to happen to the programs which
have been administered, for example by the Department of Agricul-
ture, for the disposal of surpluses? Unless the President grants an
exemption, the handling of these surpluses would t-e removed from
the Department of Agr,culture and transferred to the General Serv-
ices Administration, would it not
Mr. WzsE. I was so sure you were going to. ask that question that
I did. give it some thought ? Therefore, I am not justing giving an
off-the-cuff opinion.
Our task force did not consider the impact of this upon the ad-
ministration of agricultural products. As a matter of fact, we ex-
eltlded the public domain, agricultural products, and the stockpiles of
the Department of Defense from any consideration in our studies.
We felt that those were static factors for which thera was a national
reason and they were no; to be thrown into the:hopper of what should
be done about these things, so far as our task force deliberations were
concerned.
I do not believe that the General Services Administration has the
field organization, nor the intelligence, nor has it had any similarity
of consideration betwee:a the type of material which it has admin-
istered in the past and the huge problem of agricultural surpluses.
And I do not believe that they should be included in this consideration-
[ am making reference here to equipment, real property, inven-
tories, supplies, lumber, machinery, tools.
Senator KENNEDY. In other words, there would be no program of
the Department of Agriculture which involves agricultural conmrodi-
ties which would be affected by your recommendation or by the bill
as you understand it?
Mr. WrsE. Not in my personal opinion. And as far as the bill is
concerned, I was not able to read into S. 2367 the fact that this would
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
IClLIZArIO\ AND DISPOSAL OF SURPLUS PROPERTY 13
transfer cognizance over surplus farm commodities to the General
Services Administration.
Senator KENNEDY. As far as the question of whether the Congress.
or the President should make exemptions, why do you feel that it
is going to be so much more efficient for the President to decide what
agency should be granted exemptions than it is for the Congress to
do it?
Mr. tiVzsE. I think the President should have the cCnlstriutional
power to referee a dispute. I think oftentimes congressional intent
may be read in two fashions. I think it calls for a referee. I think
that elan should be the President.
Senator KENNEDY. On some of these agencies which are exempt,
for example, TVA, where the disposal of the surplus would be, trans-
ferred to General Services Administration, why does the task force
believe that the President can determine best whether TVA should
continue to exercise these functions or the GSA- should perfor711 tllein,
better than the Congress can!
Mr. WISE. I do not know that I can decide that he would in that
particular case, but I could see it if you asked about the Central In-
telligence Agency or the Atomic Energy Commission. I think there
might be certain occasions within either of those agencies which nec-
essarily should be. brou2lit up for consideration by the Congress.
It is possible for certain cases to be involved here which are a matter
of concern of the :rational Security Council, perhaps, rather titan the
Congress.
Senator KENNEDY. Is it die feeling of the task force that the ex-
enlptions have been. gr,nited too generously ill the past by the Con-
gress ?
Mr. Wises. Yes.
Senator KENNEDY. And that if they start fresh then the President
would be expected to confine his exemptions to matters involving the
national security, and that all of the rest involving- merely matters of
efficiency would be exemptions which would not ie granted by line
even though they have been granted in the past by the Congress; is
that correct?
Afr. W.sz. Yes. Today they stand as .statutory exemptions, and if
we remove the statutory exemptions, there is always the opportunity
for the exemption when needed by executive action of the President.
I have no strong feeling as to whether that power should be accorded
to the President o1? left; with the Congress, but it seems to inc that
would be it happy solution, because someone may challenge this legis-
lation, saying, "Now, this is the thing to do with a certain highly
classified matter."
Senator KENNEDY. Just. one. last question. Is it your task force
finding than because of these exemptions many items which have been
declared "excess" by these different exeni pted agencies and have. been
disposed of could have been of use to the Government in other agencies,
if tie procedures which you suggested were followed?
Mr. WISE. That is correct, sir.
Just witnessing the offerings of sales of road building equipment, of
the TVA, for instance, it seemed to us improbable that some agencies
of this Government of ours could not use very expensive equipment
running into millions of dollars which are being sold at auction. Ido
6642-55- 3
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
14 UTILIZATION AND DISPOSAL OF SURPLUA PR")PERTY
not know that they failed in any way to clear these with the (i(nera;l
So;?Vice- Adrninistrat.ion. They may have been screened, but never-
tholess the loophole does exist today which would ? ive theta the r~r_r,wer
to dispose of this equipment without. screening. And that in itself is
not good organizational principle, as we see it.
Senator KENNEDY. lac. you have any further questions. Sena for
blaa?tin ?
7enator MARTIN. I do not have ,ny further question.
Senator KENNEDY. lr. Scull, would you care to ask any (fuestions?
y41'. CULL. Yes. Mr. Chairman.
'Jr. lVise, slid the tast force-or are you in a. position to do so-
estmate dollar savings oli the elimination of exernptious? I recall the
task force estimated sitvintzs of some $2 billion if all its recommenda-
i,oiis were enacted. I nnas wondering if part of that won Id be at-
ti.ibinted to the removal of exemptions.
i .1r. j>trist~,. I would say that it would be relatively small. Ilowever,
wh'n this or any other committee goes into the matter of the adoption
of i lie backbone of the report of this task force, I would be very happy
to i ry to justify that $2 :)illion, which is not just $2 billion, but. it is
2 billion a year.
hir. s TITLE. That, is all, Mr. Chairman.
`senator KE.NNEnY. If you have no further remarks to make, I want
to 1hank von again for your assistance. If we do need any further
in formation we shall be iii touch with you. I nv-ant Ic, thank you for
all of your efforts in behalf of the task force and for coming here.
f.r. WISE. Thank you, sir.
Senator KENNEDY. We will neat hear from Mr. Maxwell Elliott,
genera] counsel of the General Services Administration.
STATEMENT OF MAXWELL H. ELLIOTT, GENERAL COUNSEL., AC-
COMPANIED BY LEWIS C. TUTTLE, DEPUTY DIRECTOR, PERSONAL
PROPERTY UTILIZAT::ON AND DISPOSAL DIVISION, AND :RAY-
MOND G. CHURCH, ASSISTANT DIRECTOR, REAL PROPERTY DIS-
POSAL DIVISION
Mr. ELLIOTT. I have Mr. Tuttle with me, deputy director of our
Personal Property Utilization and Disposal Division.
Senator KENNEDY. Do you have a statement that you want to file?
;dir. ELLIOTT. I (lid not prepare a statement.
Senator KENNEDY. We shall be glad to hear from you.
M-lr. ELLIOTT. I would l-ke to make just one or two brief introductory
remarks of the historical background that perhaps might be useful to
you and Senator Martin.
The General Services Administration was created originally to be
a property management agency as the result of the recommendations
of the first Hoover Com!nission, and the legislation creating it, was
unanimously reported our, by both the Senate and the House commit-
tee;, at the time, and as I recall was unanimously passed by the Si nate
and the House.
It was, shall we say, a trial at that point.
A lot of it was crystal ball gazing, because there never had been in
the Federal Government a central property management agency, To
that end, therefore, by either administrative agreement. before the leg-
islation was presented to the Congress or during the course of congres-
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
IJTILIZAT(O7N AND DISPOSAL OF SURPLUS PROPERTY
sional consideration, a number of exemptions were written imo the
'et. I think perhaps that was sound at that time. It was the best guess
that could be made at that time.
however, (; years of General Services Administration existence have
gone by, and it does not appear to be particularly workable to continue
these relatively inflexible statutory exemptions.
There are two reasons: One is that requirements change from year
to year or even sometimes from month to month. And where an agency
should be exempted in a particular area, 2 years from now perhaps it
should )lot..
Another reason is that time Congress must necessarily paint its pic-
ture with a broad brush. The exemptions must be in broad terms or
not at all.
Consequently there arises a situation where parts of agency activities
that are now exempt should be. Now we take care of that administra-
tively by giving them delegations. On the other hand, there are
statutory exemptions that cover far too much. There are some that
should be in a particular agency and not in others.
For that reason we feel ill General Services Administration that. it
would be helpful to our mission, which is to get greater efficiency and
economy in the Government, if the statutory exemptions were removed
and if there were reposed in the executive branch the power to make
exemptions from time to time as the situation warrants.
We are also in complete accord with your bill that that power should
rest in the President to make or not, to make these exemptions.
I think, in essence, that is our general position.
Senator Do }'ou agree with Mr. AVise about the effect of
this bill on the disposal of agricultural surpluses?
Mr. ELLIOTT. 11Ir. Tuttle. is far more familiar than I with the actual
operating details. He tells me. that. we do. lie can says that more
specifically.
Senator ICu: xrr:m. Would they be affected by this bill?
Mr. TUTTLE. They could be. However, I think we agree with what
Mr. Wise indicated. to you that General Services Administration is
not going to claim any special talent for disposing of farm counmodi-
t.ies and other agricultural surpluses.
There is a tremendous job to be clone in other personal property
areas.
Senator KENNEDY, Y011 might have the power if this bill were
passed. It seems to lime it might muddy the waters in the considera-
tion of the bill by the Congress. TheI question then is whether we
ought to write into the bill, ill order to insure that you do not have
the control, the exemption which is now in effect, that nothing in this
act. shall. impair or affect any authority of any executive agency with
respect to any phase including lint not limited to procurement., storage,
transportation, processing, and disposal of any program conducted for
the purpose of resale, price support granted to farmers, stabilization,
transfer to Federal (government., and so on and so forth.
In other words to insure that GSA would not have this power. be-
cause obviously the question would be raised in the Congress whether
that exemption should not. be written in.
Mr. ELLIOTT. If I could comment on that, sir, the language of that
exemption is an illustration of what I was talking about before of
being too broad. It talks about any property relating to any pro-
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
16 UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY
(Dram, which would include not only the tLeth al surplus agricultural
ronmlodities, but won](] include the equipment and machinery and.
other things that. mighi'. be related to the carrying on of that program,
v:Iuclr Mr. Wise was tal Icing about.
Certainly. I concede the wisdom of their being exempted.
lwould like to raise this question. Every agency, I am sure, will
feel it has its own special problem. If you start ettina down time
bars by giving one it statutory exemption, maybe then pressures might
lrra brought upon you tc give a, lot of others statutory exemptions.
Sellator KENNEDY. It would scent that. the equipment for handling
ar,~ rienltnral surpluses and the surplus products themselves are not
comparable to that used by other agencies. I do not believe Congress
mould want to transfer to the General Services Administration, even
if i.t. is suggested that it could be 'ransferred, the function of disposing
of agricultural surpluses. I thick the subcommittee will have to con-
s,ider that. I know that Senator Martin would be interested in the
quest ion of disposing o" agricultural products.
Mr. h:LLIOTT. I woulc request, sir, in line with Mr. Wise's statement
that if the committee does propose to make such an exemption that it
elmanae the present language, so that it is pinpointed to the agricul-
Iural commodities and_ does not take in the equipment.
Senator KENNEDY. Wi i would be. glad to receive any suggestion you
r rrFhtIlave.
Mr. ilcinn?rr. All right, sir, we can work with the staff on that.
Senator ALARTTN. 'When the General Services Administration was
,?reated at that. time, of course, we had to meet a yerv serious need for
(-on?eniration of that. particular fnnctioli. I ran into it particularly
it the stockpile operate-m. We had some 2)4 different governmentod
agencies having a hand at some 1>Oint or other in the acquisition and
disposal of materials from the military stockpile, in strategic. and
critical materials.
' Ve knew from that operation the importance of creating one
agency that would be fully responsible and also with commensurate
a,Oners to carry out that responsibility.
T did not follow the n11 extent of the exemptions and the impact.
but it strikes me that. this question of the disposal of farm surpluses
.coy a ld lae a very good testing point on just. how far you would want
it extended, whether :You would want to include that.
It seems to me also that in Senator Kennedy's bill we have an ade-
quate safeguard as to the classified material, the classified items. It,
world seem to me that we have an adequate safeguard there for those
ifmus that should not be turned over for any particular reason.
I believe you stated you favored complete elimination of statutory
exemptions.
Mr. Eia.IOTT. That is correct.
Senator MARTIN. And to leave it completely in tie power of the
President to specify what ones should be exempted.
Mr. ELLIOTT. That is correct, sir. If such a bill could be passed
way won Id recommend that.
Senator MARTIN. On this point about, agricultural surpluses, I got
from your comment, yon would not object to pinpointing that ?
Mr. ELLlarr. No, sir. I think that we would go further. We
would recommend that exemption if the bill were passed.
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY 17
Senator MARTIN. Are there any others that you would recommend
for special treatment? Perhaps that is a little too big a question to
have immediately answered. I would like to have the advantage of
your consultation on that point further, because we do not want to
leave out any that should be pinpointed in the bill.
Mr. ELLIOTT. I think there are a few that we will check.
Senator MARTIN. Could you supply us with that?
Mr. ELLIOTT. Yes. There are a lot of others that we could not
give a categorical recommendation as to time. We could say they
should be exempt now, but perhaps should not be in the future.
Agricultural commodities are the type that I think we could say,
yes, that ought to be.
Another that I could think of would be merchant vessels.
Senator MARTIN. We will need that information. We should have
your recommendations because of your working knowledge of this,,
based on several years' experience.
Mr. ELLIOTT. Yes.
Senator MARTIN. And your suggestions would be most welcome to
us. We need them.
Mr. Eni IOTT. All right, sir.
(The recommendations of the General Services Administration
relative to exemptions are contained in a revised bill, S. 2591, which
appears on p. 32.)
Mr. TUTTLE. There is one point on the matter of classified property
that I think is worth mentioning. There are other agencies, other than
.those that are currently exempted, which generate classified property
as excess today. And General Services k-dininistration, we feel, takes
care of it adequately by regulation. We provide in the main that
classified property shall not be reported as "excess" except for certain
categories where transfers between this agency and that agency can
be worked out to the good of the Government.. And we provide some
disposal coverage., so far as classified property is concerned.
Senator MARTIN. Do you have a summary of such action taken?
Mr. TUTTLE. It is by regulation.
Senator MARTIN. I mean, are those points easily outlined for us?
Mr. TUTTLE. I think probably the committee would like to have, a
copy of the 2 or 3 pages of the General Services Administration utili-
zation and disposal portions of the regulations which apply to that.
We would be glad to furnish those.
(The regulations referred to are as follows:)
[GSA Reg. 1-III-302.01 (March, 1, 1955)]
SEOTIoN 302.00 REPORTING EXCESS PROPERTY
302.01. Reporting Requircments.
a. Reporting. Excess property shall be reported promptly as provided in this
section, subject to exceptions and modifications set forth in subsections 302.02
and 302.03 below.
b. Form and Distribution of Reports. Reports of excess property shall be
made on Standard Forms 120, Report of Excess Personal Property, and 120a,
Continuation Sheet (Exhibits 7 and 8, Appendix A), in accordance with the in-
structions in Exhibit 7a, Appendix A. Reports to the Administration shall be
submitted in three copies to the appropriate Administration regional office for
the region in which the property is located. (See Exhibit 2, Appendix C.)
c. Typewriters. Typewriters shall not be included on Standard Form 120 with
any other personal property and the following additional descriptive information
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
18 UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY
must be provided: make, model, type (standard, silent, noiseless, portable, or
electric), carriage width, tyae face, and serial number.
d. Excess Personal Property on or Within Excess Real Property. Excess re-
lated personal property shall be reported to the Administration in accordance
with GSA Reg. 2-IV-201.00. Excess personal property, other than related per-
sonal property, located on or within exeeess real property, shall be governed. by this
Part. The fact of location on excess real property shall be noted on the report.
e. Property at Installatic21s Due to he 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 advance notice of such situations as early as possible by
letter to the appropriate Administration regional office. In such cases, agencies
shall state that the installation is to be discontinued, the scheduled date for the
removal of personnel from :he location, and the last date when the property will
be needed. As soon as possible after filing the advance notice, the excess shall
be reported in accordance with this section.
302.02. h'xeeptirm.s.
a. Unless otherwise directed by the Administration, the following excess prop-
erty shall not be reported :
1. All property havirg an acquisition cost of less than $100 per line item,
except office furniture which must be reported ;
2. All property in Condition Codes N-1, E-I, 0-4, R--3, and R-4, except
office furniture which must be reported ;
3. Perishables ;
4. Property dangerot.s to public health and safety;
5. Scrap and salvage, provided that the property is strictly in accordance
with the definitions for scrap or salvage ;
6. Arms, ammunition, and implements of war listed in the currently effec-
tiv(, proclamation under the Neutrality Act of 1939, as amended, section
12 I i ) , 22 U. S. C. 452 I i) , in the custody of the Department of Defense (Ex-
hihi t; 1, Appendix C) and the components, parts, accessories, attachments,
and related items desitenated by subsections 75.2 through 75.10 of the Regu-
lations of the Secretary of State, effective January 1, 1954 (Exhibit In,
Appendix C). However, the following property, despite its inclusion in the
carrent proclamation aid/or in the further breakdown of the Department of
State (Exhibit la, App radix C), when determined excess, shall be reported :
(a) Store ships ; ice breakers ; surveying ships ; i;ransports ; salvage
vessels; naval lighters; naval barges; naval dredge..; labor transporta-
tion barracks ships ; Coast Guard Cutters : patrol crafts : cargo ships ;
lightships ; tugs ; radio ships : special vessels ; auxiliary vessels ; Trans-
portation Corps tugs-100 ft. ; Transportation Corps tugs-65 ft. ; T-boats ;
barges ; cranes, floating ; and repair ships, floating, unless such vessels
are of 1500 gross tons or more. (From Category IX, Exhibit 1, Appen-
dix C.)
(b) Commercial electrical equipment and supplies; photographic
equipment and supplies ; fue oil handling equipment ; special clothing
and personal equipment; shop and warehouse mt;.chinery, tools and
equipment, including materials handling vehicles, and parts for such
vehicles and equipment; paulins; cordage; leather and fabric; and gen-
eral purpose hardware, unless items in these categories are excepted from
reporting by virtue of age or condition pursuant to other subparagraphs
of this subsection 302.02. (From Category X, Exhibit 1, Appendix C.)
(c) Radio communications equipment, including that bearing mili-
tary designations ; and parachutes for personnel, cargo and deceleration
purposes. (From Category XI (a) and XI (e), Exhibit 1, Appendix C.)
7. Vessels of 1,500 gross tons or more;
S. farts and components which have utility only on or in connection with
the operation of boats or vessels;
9. Animals:
10. Technical hospital and medical supplies (except narcotics) and equip-
mesTt. The term "tech,aical" shall. be construed to mean only items peculiar
to hospital or medical use. Excess common use or general-purpose items,
maclading microscopes, glassware, blankets, and beds, even though located
i,i hospitals, laboratories, or medi~!al depots, shall be reported :
11. Sand, gravel, anti stone-quarried products;
12. Standing timber sad undressed logs:
V. Property which may be transferred to other agencies in accordance
with subsection 303.06 of this Part ;
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17: CIA-RDP59-00224A00010POE'~~005-019
UTILIZATION AND D[SPOSAL OF SURPLUS PRt?
14. Property determined by competent authority to be classified for reasons
of national security ;
15. Fuel oil resulting from stripping of vessels in preparation for lay-up
by the Federal Maritime Administration of Department of Commerce ;
16. Components, parts and accessories peculiar and applicable only to
naval vessels of the following categories: battleships, cruisers, aircraft
carriers, destroyers, and submarines ;
17. Parts for locomotives ;
18. Motor vehicles that qualify for replacement under replacement stand-
ards provided in GSA Reg. 1-I[1-203.00;
19. Typewriters that qualify for replacement under replacement stand-
ards provided in GSA Reg. 1-111-203.00;
20. Materials-handling equipment which was manufactured 10 years or
more prior to the date such equipment is determined to be excess ;
21. All automotive parts in other than N-l., N-2, or E-1 condition and all
automotive parts which are peculiar to models manufactured 6 or more
years prior to the date such parts are determined to be excess ;
22. All automotive parts peculiar to vehicles not required by GSA regula-
tions to be reported ;
23. All construction equipment parts in other than N-1, N-2, or E-1 con-
dition and all parts which are peculiar to construction equipment manu-
factured 10 years or more prior to the date such parts are determined to
be excess ;
24. All materials handling equipment parts in other than N-1, N-2, or
E-1 condition and all parts which are suitable for use only on materials
handling equipment, including both warehouse and yards equipment. manu-
factured 10 years or more prior to the date such parts are determined to
be excess ;
25. Parts and components for electronic equipment ;
26. Aircraft parts and components in the custody of civilian agencies;
27. Harness and other horse equipment ; -
28. Blank forms peculiar to the Department of Defense ;
2:1. Forage ;
30. Field ranges and stoves peculiar to military operations ;
31. "Weasel," "Water Buffalo," and "half-track" type automotive equip-
nient ;
32. Special mobile equipment of the Department of Defense of the fol-
lowing types: showers, bakeries. laundies, and refrigeration chambers;
33. Cartridge belts and ammunitions carriers ;
34. Scabbards;
35. Canvas protective coverings for firearms and other military type
items. (This does not include tarpaulins.) ;
36. Bridge pontons and their supporting accessories and equipment ;
37. Military type headwear, leggings, Navy blue jacket jumpers and im-
pregnated Irotective clothing ; and
38. Antiaircraft searchlights and all parts and components thereof.
302.03. Pfodifications.
a. Narcotics. Excess opium and opium derivatives regardless of condition
shall be reported by the holding agency to the Administration in accordance
with Emergency Procurement Regulation No. 1. All other excess narcotic
drugs and such excess opium and opium derivatives as have been rejected as
strategic and critical material for stockpile purposes under Emergency Procure-
ment Regulation No. 1, may be determined to be surplus by the holding agency
without reporting as excess, after such agency has complied with the utilization
requirements of subsections 101.03 and 301.08 of this Chapter.
b. Reserved Materials. Excess reserved materials shall be reported to the
Atomic Energy Commniission, Washington 25, 1). C., in accordance with applicable
regulations issued by the Atomic Energy Commission (see 10 CFR, 1949 ed.,
Part 40, as amended). s Excess ma.-
c. Printing, Bin.dintl and Blank Book Egtcipvieat and Supplies.
chinery, equipment, material and supplies for printing, binding and blank book
work should be reported to the Public Printer for possible transfer, as provided
in subsection 303.06 of this Part, prior to reporting to the Administration.
d. Intangible Property. Excess intangible property, shall be reported to the
Administration, Washington 25, 1). C., and shall not be transferred or disposed
of without prior approval of the Administration. Bonds, notes, or other securities
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
X20 UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY
authorized to be disposed of by the Secretary of the Treasury under Section 5
(f the Act of April 3, 1995 (Si) Stair. 48; 31 U. S. C. 741a), in the event that
such security shall be deemed to bo excess intangible property, shall not be
reported to the Administration.
e. Contractor Inventors! Reports of excess contractor inventory ;,hall be
reported in accordance with section 30-4.00 of this Part.
302.04 Withdrawals. Subject to the approval of the Administration, or when
hi the interest of national security, reports of excess 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 th? Administration regional office to which the report
of excess property was forwarded.
Si:cvIoY 304.00 CONTRACTOR INVENTORY
304.01 General. Subject to the limitations contained in tiis Part and Chan-
ter IV, any executive ages-y may auihorize any of its contractors or their sub-
contractors to retain or dispose of any contractor inventory under such orders
such agency may prescribe.
304.02 Ut-ili;ation.
a. l.ach executive agency shall provide for use of contractor inventory within
such agency to the rnaximt: nr extent feasible, prior to retention or disposal by a
contractor. In addition, each executive agency shah]. -comply with the utilization
requirements and procedures of this Part with respect to the following types of
contractor inventory:
1. Typewriting machines ; office furniture, machinc,a, equipment, and supplies
motor vehicles and autornoi ive equipment ; printing and binding equipment ; con-
struction equipment (except hand tools) ; and all items included in the Adminis-
tration Stores Stock Catalog.
2. Types of property for which known requirements exist either in the con-
tracting agency or other Federal agencies. Contractors shall be kept currently
advised by the contacting agency of such types.
3. Excess property, the quantity or dollar amount of which is substantial, in
accordance with criteria established by each agency, or as may be directed from
time to time by the Administration.
4. Reserved materials.
5. Narcotics.
0. Intangible personal property.
7. Strategic and critical materials.
8. Such other types of property as may, from time to time, be designated by
the Administration.
b. In the case of contractor-owned contractor inventory, compliance with the
ut lization requirements and procedures of this fart with respect, to the cate-
gories in paragraph a. above should ordinarily occur prior to the Government's
exercising the applicable option to take over such property. When utilization
efforts disclose that an agency will accept transfer of such property, the appropri-
ate agency shall take the necessary action to acquire title fcr the Government.
Senator MARTIN. I th ink that we should know what you have done,
by your own regulations;. That would have some definite bearing on
what we should do with [,his legislation.
Your power for such regulation is, I suppose, based on the law
creating the General Services Administration?
Mr. TUTTLE. That is lorrect. The basic Federal Property Act of
1919.
Mr. ELLIoTT. There is one other point, I think, that I should make;
that is, as we look at it, the important thing is;utilization rather than
disposal.
'T'hat is how the Congress looked at it when we were created. That
ties into a lot of other thi ags.
We may be in a better position to know than the declaring holding
agency, where there is another use for the property through some of
our other activities, our paperwork management and records-manage-
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY 21
meat responsibility, for instance, or our procurement responsibility.
We may be in a position to know where things are excess to one agency,
,can be used or can devise means of having them used.
Senator MARTIN. You are the only agency that does have the over-
all perspective on that.
Mr. ELLIOTT. That is correct.
Senator MARTIN. By the very nature of your organization you have
that in the various departments.
Mr. ELLIOTT. That is correct, we do. I did want to point out that
this matter of excess ties into new procurement and also in some
cases to records ,laid paperwork management.
Mr. TUTTLE. On the matter of agencies reporting property excess,
I understand that there was some feeling back when the basic act
was put together, that this screening process could take a good deal of
time. We would like to say that in the last 5 years we have pro-
gressed through trial and error, and we feel that we have developed
screening system for excess property which is
a governmentwide
economical and yet effective. This is about the way it works.
There is today a maximum of 90 days taken for the screening of
any excess personal property among Government agencies. That is
operated through the GSA's 10 regional offices.
At the end of the 90 (lays if not sooner, if further utilization has
not been found within the ~overmnent for the property, it is auto-
matically released as surplus and can be disposed of without delay
under General Services Administration regulations.
We think we have the time clown to about a minimum in which we
can explore productively these possible avenues for further use.
Mr. ELLIOTT. I might, say the same consideration, of course, applies
to real property. We have been talking about personal property.
Senator KENNEDY. Do these agencies, for example, TVA and others,
which are exempted, clear with you first before they find out if there
is any use for surpluses in the Government before they dispose, of it?
Mr. ELLIOTT: There is no fixed pattern on that, sir. The Atomic
Energy Commission is quite cooperative in their clearance with us.
The Tennessee Valley Authority, on the other hand, does not clear
with us on real property at all. And rarely so on personal property.
Of course, on real property you get into another aspect, and that
is the requirement in our act for obtaining the advice of the Attorney
General as to consistency with the antitrust laws. That clearance is
obtained under our act.
On these exempted independent disposals-in. those cases they do not
obtain, that is, for instance, in the case of the TVA.
Senator KENNEDY. Excluding the agricultural surpluses, what per-
centage of the property which is now disposed of by exempted agen-
cies would this bill bring under the control of the General Services
Administration?
Mr. ELLIOTT. I would like to break my answer into two categories,
personal property and real property.
Mr. Tuttle could answer as Io the personal property.
Mr. TUTTLE. Mr. Chairman, we could not give you a percentage
answer on the personal property, because there is an area in these last
few years where the exempted agencies have not reported to the Gen-
eral Services Administration at all. I mean some of their excess
personal property.
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
22 UTILIZATION J!.ND DISPOSAL OF SURPLUS PROPERTY
We do not know the volume of it or the original acquisition costs.
And they are not regr ired to report to the GSA the value of their
total generations of excess. They report only the generations o:f excess
which they feel come under the purview of the Federal Property Act.
Mr. Elliott mentioned the Tennessee Valley Authority. Thee Ten-
r essee Valley Authority reports to us quarterly on property under the
Property Act. They report )nercly the dollar value of excess generated
and surplus disposed of. And in the fiscal :year 1:154, according to
TVA reports $5,000 worth of property was reported to General Serv-
ices Administration as excess for screening in the Government. And
out of a total of $1,909,000 generated as excess by the Tennessee Valley
authority, falling under the Property Act.
Of that $1,909.000 none was transferred for further use in the
Government, none was donated for educational purposes; and all but
$5,000, in other words, $1,904,0011, was sold as surph_s.
I any just using the Tennessee Valley Authority as on e :ample.
W 1'hat additional property was said by theTennesse(' Valley Authority
and its value, we do not know.
Senator IKENNEDY. What I was concerned about is, if these. exemp-
tions are removed, exce )ting the. agricultural surpluses, what percent-
age of the property th.it you are now discussing would you have to
dispose of, because of the additional controls you would get over the
property of these formerly exempted agencies? What, would be the
dollar value?
I aiu trying to get an idea of how much this would increase -our
work and the value of the property you have to dispose of if this, bill
were passed.
Mr. ELLIOTT. It would not only be disposal, but also utilization.
Senator KENNEDY. I nnderstaa;d.
Mr. TuTTLE. It would certainly be. several million dollars worth of
additional property that. would be reported to the (general Services
Administration for utilization work. Let its assume the value to be
$1.0 million.
I think that would be a reasonable guess. If out, of that, $3 million
were utilized through. the General Services Administration) efforts, we
estimate the savings to be somewhere near $3 million to the Govern-
DIcut.
The reason for that estimate `s that much of the property that is
generated as "excess" is carried at its original 'cost, to the (hovwnunent.
And costs today, that, k,. replacement costs, are so ii-inch higher than
if you use acquisition costs as the savings measure. ou many of these
transfers you are not toy far from the real fact. So that pins it down
a little better.
Senator KENNEDY. The savings you feel would be there--there
would he some savings if this bill went into effect, because the pro-
cedures followed by the exempted agencies would not be as effective
for the utilization and disposal of the property as the procedures
which the General Services Administration would bc, able to follow?
Mr. '1'uTTLE. We de not knnow.
On property which is "excess" in the hands of an executive agency
we do not know whether there are any particular utilization efforts
undertaken by those agencies today. We do know that if the prop-
erty were reported to the General Services Administration that we
would put it. through this 90-day procedure that. we have.
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY 23
And we feel that, much good property would thereby be transferred
for further use.
Senator KENNEDY. You do not know the total valuation of, the
property disposed of by the exempted agencies last year, do you?
Mr. 'I~UTTLE. No, sir, we do not, because we cannot require them to
tell us. They report to us only on what they dispose of and generate
as excess which would fall under the act.
Mr. ELLIOTT. Let me explain one reason why that is. The Gen-
eral Services Administration is pretty much of a decentralized agency.
The operations are, carried out, through the regional offices. We have
10 of those all over the country. They are the ones who do this
screening to ascertain whether there is use in those regions. They
basically do it. They have the machinery set up. They are equipped
organizationally to do it.
An individual agency such as the Tennessee Valley Authority,
located in the Tennessee. Valley Authority area is not in a position
to know what are the needs of the other Federal agencies elsewhere
in the country. They are not organizationally set up to do that.
Senator KENNEDY. The only other point that I wanted to make
was that in considering this: question of exempting the agricultural
surpluses, perhaps you might consider also writing language which
would exempt those programs where the disposal of the surplus is
part of an organized governmental program which is really in a
different category.
Mr. ELL.IOTr T. Yes.
Senator KENNEDY. What abort the subject of utilization and dis-
posal of real property.
Mr. ELLIOTT. That is correct. On the real property, I have Mr.
Raymond G. Church here who is the Assistant Director of our Real
Property Disposal Division. Could you give an estimate on the
amount of real property?
Mr. Criurucx. We likewise have never made a compilation of. the.
disposals by other agencies who have the authority to dispose of it
under these exemptions.
Mr. ELLIOTT. I would like to give the committee, if I might, one
example.
Senator KENNEDY. Thank you very much.
Mr. EA LI.IOTT. I would like to given one example of what happens
in the real property field when, as Mr. Wise says, the left hand does
not know what the right hand of Government is doing.
There is a law on the books, known as Public Law 364, which
establishes departmental reserves within the Department of Defense
of various industrial plants. There is a provision in that law that
permits them when they are temporarily not needed by the Depart-
ment of Defense to outlease those plants.
In consequence, they are never reported to the General Services
Administration. Let me give you an example of two plants.
One is a plant that was reported to General Services Administra-
tion. It was declared as surplus. That is at New Castle, Pa.
Its original cost was $1213 million. We subsequently leased it to
United Engineering on a rental basis that was roughly 7 percent of
gross sales which a year ago produced or a year and a half ago, an
annual rental of about $1,600,000, which a gain is around 7 percent of
the return on the Government's investment.
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
24 UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY
Out in Canton, Ohio, there is $28 million plant very similar to the
plant in Pennsylvania. It is in the departmental reserve which the
Navy leased to the E. W. Bliss & Co. They leased on terms roughly of
2.5 percent of gross m llions over $8 million, which gave an annual
return to the Government of about $245,000 or less than 1 percent re-
turn on the capital investment.
The consequence bei:lg that riot only did the Treasury lose some
money, but more important than that-and how it came to our atten-
tion was that the United came in to us and said, "Here is a competing
plant, and one of our principal competitors, and we cannot live with
that kind of competition when we are paying the Government
$1,600,000 and they are only paying $245,000.'
So there is an inequity among citizens dealing with the Government
as a result of that.
To me, that is almost more important, that the Government should
not step in and give somebody a competitive advantage over another
through the left hand not knowing what the right hand is doing.
Senator ]KENNEDY. Does that condition exist, and continue to exist
today?
M. ELLIOTT. Mr. Church, would you care to fill in on that; that
is;, the details of that? Senator Kennedy wants to 1:now if the situa-
tion continues today.
Mr. CHURCH. Yes. Dnited has given up its lease and retired from
that activity, and we hLve the property surplus available for disposal.
Mr. ELLIOTT. We have a contract broker employed who is trying
very hard to find a purchaser or a new lessee.
Mr. CiinncH. Whereas the Navy is still leasing that one.
Mr. ELLIOTT. Outside of the actual difference in the return there,
you do have a situation where, through inadvertence and lack of coor-
dination, two highly competitive firms are not being treated on the
same basis with the Government, with the result that one is under a
competitive disadvantage.
Senator MARTIN. Have you had any experiences similar to that in
property you disposed of, where you inadvertently had given advan-
tage to one competitor over another?
Mr. ELw,rm?r. 1 can only speak, sir, from the time since General
Services Administraticri was created. I cannot speak of what hap-
pened prior to that in relation to its predecessors. That could have
happened under the War Assets, under the tremencous pressure and
volume that they had.
I would like either lei' _r. Church or Mr. Tuttle to correct me; if they
know of any such corrections, to speak up. I do not know of any
myself.
T)o ti ou know of any i -i the personal property field ?
Mr. TUrrLE. No, sir; I do not, offhand.
Mr. CHURCH. We are going even so far as requiring these tenants
who outlease the commercial or industrial. plants, to pay taxes to the
local authorities. It will be placing them on a competitive basis with
other industries.
Mr. ELLIOTT. I think Senator Martin's question was whether or not
'we ourselves rented to everybody the same, so far as a lease is con-
cerned, or whether through inadvertence the General Services Ad-
ministration in its own. sale was treating one different from the other.
Mr. CHURCH. No.
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY 25
Senator MARTIN. It is pretty hard to dispose of some of that prop-
erty without that question coming up.
Mr. ELLIOTT. Yes, it is.
Senator MARTIN. Especially in the strategic material field, where
there is extreme shortages at times.
What do you-open it up for bidding?
Mr. ELLIOTT. As you know, sir, of course, actually we have made
no appreciable disposals from the stockpile except on obsolescence.
Senator MARTIN. That is all you can dispose of, of course.
Mr. ELLIOTT. On those obsolescent situations what we have (lone,
sir, is to consult the industry, either by getting representatives in our-
selves, or utilizing the Department of Commerce and industry advisory
committees, taking the lead with the industry in setting up terms that
are fair to the whole industry, for two reasons :
We treat everybody fairly within the industry, and also to avoid
any improper impact.
Senator MARTIN. I do not know how you can avoid some feeling of
partiality when you dispose of some of the materials that are extremely
in short supply.
Mr. ELLIOTT. Let us take as an illustration, copper, where there has
not been a disposal, but there has been diversion, due to the copper
shortage.
For a while we had those distributed. That was not material that
came in to Government, but it was material which the Government
had contracted for, but in which we let the contractors postpone the
deliveries to the Government so that the material would be available
to industry.
Originally we had that distribution set up by the Business and De-
fense Services Administration of the Department of Commerce. Cur-
rently, however, Dr. Arthur S. Flemming, who, as you know, is the
Director of Defense Mobilization, makes policy guidance and direc-
tions, and has said: "Let that be distributed through normal channels
of industry." So we do not attempt to direct that disposition at the
present time. We merely postpone deliveries and let the copper flow
through the normal industrial channels.
But where there is a direct disposal for obsolescence from the stock-
pile-and we have had several cases-and I could supply you later, if
you wish, with documentation on it-we have called in industry and
worked out the problem with the particular segment of the industry
as a whole.
Senator MARTIN. You are going to run into tough situations, for
example, when they dipped into the copper stockpile itself under the
Presidential directive.
Mr. ELLioTT. Yes, sir.
Senator MARTIN. There is no question that there is tremendous com-
petition by hungry industrialists for material that was scarce.
Mr. ELLIOTT. At the time, there were actually withdrawals of cop-
per from the stockpile, as distinguished from the diversions.
As I recall, copper was then under allocation and it was distributed
under the allocation system.
. Senator MARTIN. That would not ordinarily arise, but you could get
into a situation where you would have a very difficult task to avoid a
charge of favoritism in the disposal of those materials.
Mr. ELLIOTT. That is perfectly true.
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
26 UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY
Senator MARTIN. It; applies also to the diversion of materials, more
generally there, because we do not have very much dipping into the
stockpiles.
Mr. ELLIOTT. That is correct. All we can do is to try to minimize it..
Senator .MARTIN. That is right. I would not expect your agency to
avoid all charges of fry voritism under all circumstances. It is Just be-
yond human ability to avoid such charges in ahighly competitive
market for some of these items.
If I might make an observation, I think it would minimize cases of
that kind to have the work concentrated in one age icy as much as we
can.
Senator KENNEDY. I low much do you anticipate it will increase the
4a1T of the General Services Administration?
Mr. ELLTO'LT. Again. I would like to refer you to Mr. Tuttle and Mr.
Church in their respeel;ive fields.
Hr. TUT'T.E. Well, i o the field of personal property, Mr. Chairman,
,ve can Visualize, know ng fairly well. the size of the exempted agencies
and the areas of the e~;emptions which would be listed, we can antici-
pate perhaps about a roan-year per regional office. That would be 10
,nag-years for the Gereral Services Administratior, nationwide.
M'r. ELLro'rr. How about real property?
Mr. Cxunorr. In terms of man-years, we have never made an esti-
rnate--we have never considered that.
Mr'. ELLIOTT. Could you give the committee some idea of the general
order of it?
Mr. Ciroiu,x. At t4, present time we have a sts.ff of, say. 6 in a
region; it might double it to the extent of 10.
Mr. ELLIOTT. Depending on where the volume of the property was
located?
Mr. CFiuecx. Yes.
Sen,etor KENNEDY. Could you give its some estirtrate and supply
these figures, as to how much it would be for the total, overall?
Mr. ELLIOTT. Yes, sir, if the committee could give its a little time
to get it, I think that we can give you a much closer guess.
(The information reonested was not received up to the time this
bearing went to press. It will ba placed on file with the subcommittee
when received.)
Senator KENNEDY. Do you anticipate that the President would
provide a good many of the exemptions which are -low in effect, for
the Atomic Energy Commission, the Secretary of Defense, et cetera?
Mr. Era,roTT. I would think that the basic difference between the
statutory exemption and the Presidential exemption would be that
the Presidential exemp,i on- could be much more specific and detailed,
so that instead of, as it is presently, across-the-board exemptions for
the Atomic Energy Commission, there would be an exemption for the
Atomic Energy Commission in some measure, particularly as to
fi-4sionable materials, let's say, but not things such as common-use
items, such as office supplies-there would not be an exemption.
Senator KENNEDY. I think it would be. helpful to the committee if
you could perhaps write me a. letter and give me some idea in these
particularly sensitive agencies, particularly like Defense and Atomic
Energy Commission, how it might be possible to operate under this
bill.
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
UTILIZATION AND DISPOSAL OF Su RPLUS PROPERTY 27
Mr. ELLIarT. All right, sir; we shall be glad to do so.
Senator Kin N1:DY. I think questions will be raised relative to elimi-
nating exemptions for those agencies, unless we could give some
.assurances that the material which was important to the work of the
agency would not be affected.
Mr. Eta.[oi?r. Of course, we could not speak for what the President
would do.
Senator KI'.NNt:DI . I understand that.
Mr. ELLIOTT. We, can tell the committee what we would recommend
in terms of that.
Senator KENNEDY. Perhaps you could analyze these exemptions,
which I think could be done, and briefly give its some sort of idea what
has been done in th' past and what could be done under this bill.
Mr. ELLIOTT. We shall certainly be glad to do so.
(The information requested was not received up to the time this
hearing went to press, but will be placed on file with the subcommittee.)
Senator KENNEDY. We have one last question, and then perhaps
we will hear from Mr. Brundage.
Mr. Scm.L. I would like to ask one question.
Mr. Elliott, the General Services Administration now disposes of
some military surpluses?
Mr. ELLIOTT. That is correct.
Mr. ScuLL. Not to a great extent?
Mr. ELLIOTT. A. certain amount is reported to us as excess.
Mr. ScuL7.. Reported as excess?
Mr. ELLIOTT. For Utilization."
Mr. SCULL. Right.
Mr. ELIAOTT. We do very little actual disposal of the surplus, so far
as personal property is concerned.
Mr. ScuLL. Could you tell the subconilimittee how that operation is
working? For example, I understand that you are now handling a
large volume of Army personnel files. If you could very briefly give
us the situation on how that is working, I think it would be helpful.
Mr. ELLIOTT. All right. I would be glad to do so, with Mr. Tuttle's
assistance. That is an interesting case, and it illustrates the general
point I was making before about how this matter of excess ties into
procurement and paperwork ma.nagemennt.
Not too long ago the Civil Service Commission issued some regula-
tions relative to the handling of personnel folders.
The Army decided that on the basis of those regulations, their so-
called 201 folders---those are the folders that the Army uses for their
personnel files-were no longer suitable or usable for the new proce-
dure. They therefore declared "excess" to us a supply which aggre-
gated about 7 million folders, or about 15-year supply of personnel
folders.
When that reached our people, Mr. Tuttle's office, they recognized
that this civil service regulation was not merely applicable to the
Army but it was common to all Government agencies. They there-
fore got in touch with our records management people in General
Services Administration and went to the Civil Service and got the
civil service regulation revised, so that these folders can now be used
not only by the Army but all governmental agencies.
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
28 UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY
As the result of having that stock of 201 folders, I believe, Mr.
Tuttle, that we are going to stop new procurement of personnel folders
in the Government unt l this stock is used up; is that correct?
Mr. TUTTLF. That is correct.
Mr. ELLIOTT. They will not be available only to the Army for the
next 15 years, but also to some of the other agencies.
Mr. TUTTLE. The Civil Service Commission is still drafting the
change, but there is agreement that this new regulation will be so
worded that, this folder can be used across the Government. When
it is used by other agencies, there will be an overprint on it.
Senator KENNEDY. There are 15 years' worth of these folders, did
you say?
Mr. TUTTLE. The Commission estimated for new employees across
the Government and rep lacements, you would use about 400,000 folders
a year. On that basis, 7-million-plus folders would give you about
15 years-15 to 18 years' supply for the Government as a whole.
Senator KENNEDY. 'Who would purchase these, the Department of
the Defense?
Mr. TUTTLE. Well, this happens to be of that Department. These.
7 million are Army folders.
Senator KENNEDY. \'Vere they purchased by the Army, for the
Army?
Mr. TUTTLE. They were purchased by the Army.
Senator KENNEDY. Then you had 15 years' supply for the Govern
ment as a whole. How: any would that have provided for the Army
They were the ones who originally purchased it?
Mr. TUTTLE. How much it would be I could not gay offhand..
Senator KENNEDY. What was their reasoning?
Mr. TUTTLE. They proposed to dispose of these folders, because
under the civil-service regulation this became an obsolete folder.
Senator KENNEDY. I was just wondering why they bought them, in
the first place.
Mr. TUTTLE. We have not checked into that aspect of it.
Senator KENNEDY. Thank you very much, Mr. Elliott and Mr. Tuttle and Mr. Church. Wf . appreciate your being here.
Mr. ELLIOTT. Thank emu.
Senator KENNEDY. We, did ask for additional information o11 a.
couple of matters. If you could give us that as soon as convenient,
wO won ld like to have you do so. We would like to let on this legis-
lation this session, so we would like to get the information as quickly
as possible.
Mr. ELLIOTT. I wonder if I might make one comment. It is not
especially germane to the bill, except the bill relates to the removal of
exemptions from utilization and disposal.
I think either now or sometime this committee might consider the
advisability of removing the exemption generally with respect to the
activities under the Federal Property Act, that is, removing them
with respect to procurement and transportation and other fields of
supply, as well as for utilization and disposal.
I believe that is in line with some other recommendations in other
reports of the Hoover Commission, notably the transportation report.
Senator KENNEDY. We will be taking those up next year, anyway.
Mr. ELLIOTT. All right.
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY 29
Senator KENNEDY. Mr. Brundage, we will be glad to hear from you
now. We appreciate very much your being here.
Would you care to file your statement, and then proceed orally?
STATEMENT OF PERCIVAL F. BRUNDAGE, DEPUTY DIRECTOR OF
THE BUREAU OF THE BUDGET, ACCOMPANIED BY GEORGE
MULLINS, BUREAU OF THE BUDGET
Mr. BRUNDAGE. I will be very happy to.
(The prepared statement of Mr. Percival F. Brundage, the Deputy
Director of the Bureau of the Budget, is as follows:)
STATEMENT OF PERCIVAL F. BRUNDAGE, DEPUTY DIRECTOR OF THE BUREAU OF TIFE
BUDGET, ON S. 2307, A B1 LL RELATING TO THE AUTHORITY OF THE ADMINISTRATOR
OF GENERAL SERVICES tiVFI'H RESPECT TO THE UTILIZATION AND DISPOSAL OF
EXCESS AND SURPLUS GOVERNMENT PROPERTY UNDER THE CONTROL OF EXECUTIVE
AGENCIES
Mr. Chairman and members of the committee, I am pleased to have this op-
portunity to state the views of the Bureau of the Budget concerning S. 2367
which is similar to S. 2247 and II. R. 0568. All of these bills were introduced
during this session of Congress for the purpose of repealing statutory exemptions
from the authority of the Administrator of General Services with respect to
the utilization and disposal of excess and surplus Government real and personal
property. These bills also contain provisions authorizing the President to grant
by Executive order such specific exemptions as he deems to be necessary in
the public. interest. These three bills would implement recommendations Nos.
4 and 20 in the report on surplus property submitted to the Congress in April
1955 by the Commission on Organization of the Executive Branch of the Gov-
ernment.
Similar recommendations pertaining to other responsibilities of the Adminis-
trator of General Services are included in reports of the Hoover Commission on
Real Property Management, Depot Utilization, and Transportation. Bills to
remove exemptions from authority of the Administrator in the field of trans-
portation management have also been introduced. These include H. R. 6563,
H. R. 6854, and IT. R. 6855. In general, my comments regarding S. 2307 also
apply to these other bills and recommendations. We believe the extent of
exemptions from the authority of the Administrator should be considered all at
one time rather than on a piecemeal basis.
The General Services Administration was created after many studies, includ-
ing those of the first Hoover Commission, had shown the need for standariza-
tion, coordination, and centralized control in the Government's management of
property and administrative services. A central authority was clearly needed
which could be held responsible for regulating and controlling the so-called house-
keeping functions in the Government. The Federal Property and Administrative
Services Act of 1919 established the Administrator of General Services for
this purpose and gave him authority either to prescribe policies and methods
for managing property and other housekeeping services, or to take over the
operating responsibility for these functions. after consultation with the agencies
affected. His authority covered the entire executive branch of the Govern-
ment except for a few agencies or programs within agencies which were explicitly
exempted in section 602 (d) of the act. These included the Atomic Energy
Commission, the Tennessee Valley Authority, the Central Intelligence Agency,
and certain specific programs within the Housing and Home Finance Agency,
and the Departments of State, Defense. Agriculture, Commerce, and Post Office.
In addition, section 201 (a) of the act contained a provision that the Secretary
of Defense could exempt the Department of Defense from the control of the
Administrator unless directed otherwise by the President. Since this basic
legislation was enacted additional statutes have assigned various property man-
agement functions to other agencies or have exempted certain programs from the
control of the Administrator. An example is the Atomic Energy Act of 1954.
The effect of S. 2367 would be to repeal all of these statutory exemptions,
insofar as they apply to the utilization and disposal of excess and surplus prop-
erty, and to authorize the President to make similar or modified exemptions by
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
30 UTILIZATION AND DISPOSAL OF SURPLUS P:3oPERTY
Executive order. The similar hills relating to transportation would remove the
exemptions but would not intborize the President to make exemptions by Exe-
cutive order.
We believe the Administrator of General Services should have strong authority
in the field of property anc. supply management. This is especially true of the
utilization and. disposal of excess and surplus property because uniform policies
and procedures are necessary if these functions are to be performed properly.
We favor enactment of S. 2367, S. 2247, or H. R. 6568 because we believe it is
entirely proper to reexain.ne the need for the exemptions which have been
granted, to withdraw those which are no longer warranted, to modify or curtail
those which are unnecessarily broad, and to grant only those which are suffici-
ently justified. We believe it is also proper for the executive branch to assume
responsibility for conducting such examinations and acting upon then subject.
of course, to the right of the Congress to obtain reports explaining reasons for
exemptions granted by Executive order,
In general, the Administrator of General Services should have full authority
in the management and disposal of property acquired for use by the Government.
But the subcommittee understands, I em sure, that some exemptions from stand-
ard governmentwide procedures and controls will continue to be necessary or
advisable. There are instances in which management and disposal of property
are essential parts of a specialized program for which an ag ncy is responsible.
Ire such instances, we believe that these functions should not be placed under the
control of an agency which assumes no responsibility for program results. For
example, the procurement and sale of agricultural products are part of the price
stabilization activities of the Commodity Credit Corporation. We would not
favor placing such activities under the control of the General Services Adminis-
tration.
']'here are other instance;, in which some form of exemption is advisable be-
cause special skills or knohvleddge are needed. For example, the disposal of metal
scamp and equipment which has been contaminated in the atomic energy pro-
gram requires special know. edge of the industrial effects and protective methods
for the sale and subsequent use of such material. Regulations for utilization
and disposal of ordinary supplies and equipment may not be applicable in such-
instances.
I am not prepared at thin time to comment in detail regarding each of the ex-
emptions now granted by str.tnte. We would need to make further studies before
we could recommend action i on specific exemptions. However, we believe some
exemptions are necessary not only for excess and surplus property but also for
transportation and other general services functions. If they are not provided by
statute, the President should have authority to grant them when justified.
~['he Administrator of General Services has granted exemptions in some in-
stances in addition to those provided by statute. We believe he should continue
to have authority to make ranch exemptions as may from time to time prove to
be desirable, in addition to the authority provided to the President in S. 2367.
We believe final authority to withhold exemptions affecting an agency's basic'
program responsibility should not he vested in a central administrative serv-
ices agency which cannot assume responsibility for the success or failure of the
program.
5. 2367 provides that repeal of statutory exemptions would not take effect
for 60 days, whereas the other bills do not provide a specific date. We believe
that a future effective date would be highly desirable in order to permit time to
obtain facts and reach decisions as to whether exemptions should be continued,
modified, or withheld by Executive order. We are not certain, however, that 60
days is sufficient and would favor a 90 day period for this purpose.
In conclusion, I shall coriment briefly on the faet that S. 2367 does not con-
cern property in foreign countries. We agree with this lim tation. The prob-
lem of surplus property in foreign countries requires attention but we believe it
should be considered separately.
Senator KENNEDY. You may proceed.
Nfr. IBRUNDAGE. Mr. Chairman, we are in favor of the bills upon
which you have asked our advice, S. 2367, S. 2247, and H. R. 6563.
Thca program of the krill is set forth in the recommendations in the,
Hoover Commission resort; as you know, we feel that control of the
utilization and disposal of excess and surplus property should be cen--
tralized in one agency. It is more efficient and can bry done better.
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A0001091q$005-%.1
UTILIZATION AND DISPOSAL OF SURPLUS PROP
We feel that the decision to allow the President the authority to
exempt certain agencies is sound. An example of an exemption I
would favor is procurement and sale of agricultural products as part.
of the price stabilization activities of the Commodity Credit Corpora-
tion. We would favor an exemption in that case.
Also, at the bottom of page 4 of my statement, I mention the special
skills or knowledge needed in certain cases, such as the disposal of
metal scrap and equipment that has been contaminated and is part of
the Atomic Energy Commission program, which requires special care
and knowledge as to proper utilization.
I think other exemptions would have to be the result of study as to
the actual operation of the present programs.
I think that covers about the substance of my presentation.
Senator KENNEDY. Have you heard from the agencies affected by
this bill?
Mr. BRTJNnAQE. I do not think we have circulated them specifically
on this bill.
Mr. MULLINS. We have heard from some agencies regarding the
Hoover Commission reconmtendations, upon which these bills are
based. We have had reports on S. 2247, but I do not believe any of
the a encies were requested to report on this particular bill.
Senator KENNEDY. Is the Budget Bureau making any survey of
what action the administration takes, that is, administrative agencies
take on the recommendations of the Hoover Commission ?
Mr. BRUNDAGE. We have a staff working on all of their racorn-
mendations. They are summarizing their proposals under recom-
mendation numbers and have asked the agencies to report on dhein.
Senator KENNEDY. I think that the subcommittee next. January
would be interested in getting some sort of a report on what action
the administrative agencies have taken to implement the Hoover Coin-
mission recommendations, aside from those which require legislation
by the Congress-just the administrative decisions.
Opt course, it is ranch too early, I think, now. I think next January
we would like to take that up.
Mr.BRUNDAGE. We are classifying the recommendations to identify
those which can be effected by Executive order, and those whip h can
be accomplished without any specific legislation or Executive order.
We will be very happy to do that,.
Senator MARTIN. I have no questions.
Senator KENNEDY. I want to thank you for this information, lT-
cause your position gives its a pretty good resume of all of the depart-
ments-as to the recommendations.
Mr. BRUNDAGE. We are right in the middle of it now.
Senator KENNEDY. We need that information seriously.
Mr. BRZINDAGE. We will try to get it, and send it up as soon as we
can.
Senator KENNEDY. The Bureau of the Budget. is in favor of this par-
ticular bill?
Mr. BRUNDAGE. Yes.
Senator KENNEDY. We thank you for coming.
Mr. BRUNDAGE. Thank. you.
Senator KENNrnY. The hearing is now adjourned.
(Whereupon, at 12: 15 p. m., the subcommittee. adjourn(,.d.)
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
32 UTILIZATION AND DISPOSAL OF SURPLUS PROPERTY
(Subsequently, the following revised bill, S. 2591, was introduced
by Senators Kennedy and Martin of Iowa:)
[S. 2591, 54th Cong., 1st sees.]
A PILL To amend section 502 of the Federal Property and Administrative Services Act of
1949 .with respect to the utilization and disposal of excess and surplus property under
the control of executive agencies
Be it enacted by the Senate and (louse of Representatives of the United States
of +mcrica in Congress assembled, That section 602 of the Federal Property and
Administrative Services .>,et of 1949 (63 Stat. 399, 40 U. S. C. 474), as amended.,
is heheby amended by adding at the end thereof a new subsection to read as
follows :
"(g) (1) Notwithstanding the provisions of subsection (d) of this section or
of any law other than this Act, the Administrator shall exercise the authority
vested in hirn by this Act: with respeA to the utilization and disposal of all excess
and surplus property, real and personal, which is under the control of any execu-
tive agency, except that nothing in this Act shall impair or affect any authority
of--
"(A) any executive agency to dispose of property ulder its control when
such disposal is made as specifically authorized by law in a particular man-
nor, to a particular cass or classes of persons, or for particular purposes, as
part of or in furtherance of program activities of such agency, including, but
not limited to, disposal by the Department of Agriculture of agricultural
commodities acquire(!. under price support or other agricultural assistance
programs, and disposal by the Tennessee Valley Author_ty of reservoir lands,
or inplace power equipment facilities with appurtenant rights-of-way to
power distributors, and of other property similarly disposed of by such
Authority in connection with its program activities, bu, the agency carrying
out such program shall, to the maximum extent practicable consistent with
the fulfillment of the purposes of the program and the effective and efficient
conduct of its busine e, coordinate its operations with the requirements of
this Act and the policies and regulations prescribed pursuant thereto; or
"(R) the Joint Coiimtttee on Printing under the Act entitled 'An Act pro-
viding for the public printing and binding and the distribution of public
documents', approved. January 12, 1895 (58 Slat. 601), as amended, or any
other Act.
"(2) The President may by Executive order make such speeific exemptions from
the exercise by the Administrator of General Services of his authority under this
subsection with respect to the utilization and disposal of excess and surplus
properly as the President teems to be necessary in the public interest. Each such
proposed Executive order shall be published in the Federal Register not less than
thirty days prior to the issuance thereof. The President shall submit a report
[o the Congress in January of each year to and including the year 1.960 of all
I,xecut;ive orders issued I ereunder during the preceding ct.lendar year and the
reasons therefor."
Sac. 2. This Act shall b come effective ninety days after 'ts enactment.
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
PUBLIC LAW 152-81ST CONGRESS]
[CHAPTER 288-1ST SESSION]
[II. R.. 4754]
AN ACT
To simplify the procurement, utilization, and disposal of Government property,
to reorganize certain agencies of the Government, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
That this Act may be cited as the "Federal Property and Adminis-
trative Services Act of 1949".
Sec. 2. Declaration of policy.
See. 3. Definitions.
Sec. 101. General Services Administration.
Sec. 102. Transfer of affairs of bureau of Federal Supply.
Sec. 103. Transfer of affairs of the Federal Works Agency.
Sec. 104. Records management : Transfer of the National Archives.
Sec. 105. Transfer for liquidation of the affairs of the War Assets Administration.
Sec. 106. Redistribution of functions.
Sec. 107. Transfer of funds.
-See. 108. Status of transferred employees.
.Sec. 109. General supply fund.
Sec. 201. Procurement, warehousing, and related activities.
Sec. 202. Property utilization.
Sec. 203. Disposal of surplus property.
:Sec. 204. Proceeds from transfer and disposition of property.
Sec. 205. Policies, regulations, and delegations.
Sec. 206. Surveys, standardization, and cataloging.
Sec. 207. Applicability of antitrust laws.
Sec. 208. Employment of personnel.
Sec. 209. Civil remedies and penalties.
:Sec. 210. Reports to Congress.
Sec. 301. Declaration of purpose.
Sec. 302. Application and procurement methods.
Sec. 303. Advertising requirements.
See. 304. requirements of negotiated contracts.
Sec. 305. Advance payments.
See. 306. Waiver of liquidated damages.
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
[Pos. LAW 152.1 2
Sec. 307. Administrative, determinations and delegations.
Sec. 308. Statutes continued in effect.
See. 300. Definitions.
Sec. 310. Statutes not a )plicable.
TrrcE IV-F rlnaN EXCESS PROPERTY
Sec. 401. Disposal of foreign excess property.
Sec. 402. Methods and terms of disposal.
Sec. 403. Proceeds; foreign currencies.
Sec. 404. Miscellaneous provisions.
TITLE V--GENERAL PROVISIONS
Sec. 501. Applicability of existing procedures.
Sov. 502. Repeal and Sa1.ing provisions.
Sec. 503. Authorization for appropriations.
Sec.504. Separability.
Sec. 505. Effective date.
Sisc. 2. It is the intent of the Congress in enacting this legislation to
provide for the Government an economical and efficient system for (a)
the procurement and supply of personal property and nonpersonaI
services, including related functions such as contracting, inspection,
storage, issue, specifications, property identification and classification,
transportation and traffic management, management of public utility
services, repairing aid converting, establishment of inventory levels,
establishment of fo ?ms and procedures, and representation before
Federal and State regulatory bodies; (b) the utilization of available
property; (c) the disposal of surplus property; and (d) records
management.
SHc. 3. As used in this Act--
(a) The term "executive agency" means any executive department
or independent establishment in the executive branch of the Govern-
ment, including any wholly owned Government corporation.
(b) The terns "Feleral agency" means any executive agency or any
establishment in the legislative or judicial branch of the Government
(except the Senate ,i,nd the House of Representatives).
((.-,) The term "Administrator" means the Administrator of General
Services provided for in title I hereof.
(d) The term "property" means any interest in property of any
kind except (1) the public domain and lands reserved or dedicated for
national forest or national park purposes; and (2) naval vessels of
the following categories: Battleships, cruisers, aircraft carriers,
destroyers, and submarines.
(e) The term "excess property" means any property under the con-
trol of any Federal ii gency which is not required for its needs and the
discharge of its responsibilities, as determined by the head thereof.
(f) The term "foreign excess property" means any excess property
located outside the continental United States, Havwaii, Alaska, Puerto,
Rico, and the Virgin Islands.
Approved For Release 2000/08/17 : CIA-+2DP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-DP59-00224A000100190005-0
(PUB. LAW 152.j
(g) The term "surplus property" means any excess property not
required for the needs and the discharge of the responsibilities of all
Federal agencies, as determined by the Administrator.
(h) The term "care and handling" includes completing, repairing,
converting, rehabilitating, operating, preserving, protecting, insuring
packing, storing, handling, conserving, and transporting excess and
surplus property, and, in the case of property which is dangerous to
public health or safety, destroying or rendering innocuous such
property.
(i) The term "person" includes any corporation, partnership, firm,
association, trust, estate, or other entity.
(j) The term "nonpersonal services" means such contractual serv-
ices, other than personal and professional services, as the Adininis-
trator shall designate.
(k) The term "contractor inventory" means (1) any property
acquired by and in the possession of a contractor or subcontractor
under a contract pursuant to the terms of which title is vested in the
Government, and in excess of the amounts needed to complete full
performance tinder the entire contract; and (2) any property which
the Government is obligated to take over under any type of contract
as a result either of any changes in the specifications or plans there-
under or of the termination of such contract (or subcontract there-
under), prior to completion of the work, for the convenience or at
the option of the Government.
SEC. 101. (a) There is hereby established an agency in the execu-
tive branch of the Government. which shall be known as the General
Services Administration.
(b) There shall be at the head of the General Services Administra-
tion an Administrator of General Services who shall be appointed by
the President by and with the advice and consent of the Senate, and
perform his functions subject to the direction and control of the
President.
(c) There shall be in the General Services Administration a Deputy
Administrator of General Services who shall be appointed by the
Administrator of General Services. The Deputy Administrator shall
perform such functions as the Administrator shall designate and shall
be Acting Administrator :)f General Services during the absence or
disability of the Administrator and, unless the President shall desig-
nate another officer of the Government, in the event of a vacancy in
the office of Administrator.
(d) Pending the first appointment of the Administrator under the
provisions of this section, his functions shall be performed temporarily
by such officer of the Government in office upon or immediately prior
to the taking of effect of the provisions of this Act as the President
shall designate, and such officer while so serving shall receiv-,~ the
salary fixed for the Administrator.
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
(POs. LAW 152.1 4
(e) Pending the effective date of other provisions of law fixing the
rates of compensatio:i of the Administrator, the Deputy Administra-
tor and of the heads and assistant heads of the principal organizational
units of the General :services Administration, and taking into consid-
eration provisions of law governing the compensation of officers hav-
ing comparable responsibilities and duties, the President shall fix for
each of them a rate of compensation which he shall deem to be com-
mensurate with the responsibilities and duties of the respective offices
involved.
Sec. 102. (a) The functions of (1) the Bureau of Federal Supply
in the Department oil the Treasury, (2) the Director of the Bureau of
Federal Supply, (3) the personnel of such Bureau, and (4) the Secre-
tary of the Treasury, relating to the Bureau of Federal Supply, are
hereby transferred to the Administrator. The records, property, per-
sonnel, obligations, and commitments of the Bureau of Federal Supply,
together with such additional records, property, and personnel of the
Department of the Treasury as the Director of the Bureau of the
Budget shall determine to relate primarily to functions transferred by
this section or vested in the Administrator by titles II, III, and V,
of this Act, are here Dy transferred to the General Services Adminis-
tration. The Bureau of Federal Supply and the office of Director of
the Bureau of Federal Supply are hereby abolished.
(b) The functions of the Director of Contract Settlement and of the
Office of Contract Kettlement, transferred to the Secretary of the
Treasury by Reorgal.ization Plan Numbered 1 of 1947, are transferred
to the Administrator and shall be performed by him or, subject to his
direction and control, by such officers and agencies of the General
Services Administration as he may designate. The Contract Settle-
ment Act Advisory Board created by section 5 of the Contract Settle-
ment Act of 1944 (58 Stat. 649) and the Appea. Board established
under section 13 (d) of that Act are transferred from the Department
of the Treasury to the General Services Administration, but the func-
tions of these Boards shall be performed by them, respectively, under
conditions and limirations prescribed by law. There shall also be
transferred to the General Services Administration such records,
property, personnel, obligations, commitments, and unexpended bal-
ances (available or to be made available) of appropriations, alloca-
tions, and other funds of the Treasury Departmert as the Director of
the Bureau of the Budget shall determine to relate primarily to the
functions transferred by the provisions of this subsection.
(c) Any other provision of this section notwithstanding, there may
be retained in the Department of the Treasury any function referred
to in subsection (a) of this section which the Director of the Bureau
of the Budget shall, within ten days after the effective date of this Act,
determine to be essential to the orderly administration of the affairs
of the agencies of such Department, other than the Bureau of Federal
Supply, together with such records, property, personnel, obligations,
commitments, and unexpended balances of appropriations, allocations,
and other funds, available or to be made available, of said Department,
as said Director shat.. determine.
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-~DP59-00224A000100190005-0
[PuB. LAw 152.1
TRANSFER OF AFFAIRS OF THE FEDERAL WORKS AGENCY
SEC. 103. (a) All functions of the Federal Works Agency and of
all agencies thereof, together with all functions of the Federal Works
Administrator, of the Commissioner of Public Buildings, and of the
Commissioner of Public Roads, are hereby transferred to the Admin-
istrator of General Services. There are hereby transferred to the
General Services Administration the Public Roads Administration,
which shall hereafter be known as the Bureau of Public Roads, and
all records, property, personnel, obligations, and commitments of the
Federal Works Agency, including those of all agencies of the Federal
Works Agency.
(b) There are hereby abolished the Federal Works Agency, the
Public Buildings Administration, the office of Federal Works Admin-
istrator, the office of Commissioner of Public Buildings, and the office
of Assistant Federal Works Administrator.
SEC. 104. (a) The National Archives Establishment and its func-
tions, records, property, personnel, obligations, and commitments are
hereby transferred to the General Services Administration. There
are transferred to the Administrator (1) the functions of the Archivist
of the United States, except that the Archivist shall continue to be a
member or chairman, as the case may be, of the bodies referred to in
subsection (b) of this section, and (2) the functions of the Director
of the Division of the Federal Register of the National Archives
Establishment. The Archivist of the United States shall hereafter be
appointed by the Administrator.
(b) There are also transferred to the General Services Administra-
tion the following bodies, together with their respective functions and
such funds as are derived from Federal sources : (1) The National
Archives Council and the National Historical Publications COmrnis-
sion, established by the Act of June 19, 1934 (48 Stat. 1122), (2) the
National Archives Trust Fund Board, established by the Act of Jul
9. 1941 (55 Stat. 581), (3) the Board of Trustees of the Franklin I)
Roosevelt Library, established by the Joint Resolution of July 18,1939
(53 Stat. 1062), and (4) the Administrative Committee established
by section 6 of the Act of July 26, 1935 (49 Stat. 501), which shall
hereafter be known as the Administrative Committee of the Federal
Register. The authority of the Administrator under section 106
hereof shall not extend to the bodies or functions affected by this
subsection.
(c) The Administrator is authorized (1) to make surveys of Gov-
ernment records and records management and disposal practices and
obtain reports thereon from Federal agencies; (2) to promote, in
cooperation with the executive agencies, improved records manage-
ment practices and controls in such agencies, including the central
storage or disposition of records not needed by such agencies for their
current use; and (3) to report to the Congress and the Director of
the Bureau of the Budget from time to time the results of such
activities.
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
IPus. Lew 152.1 6
TRANSFER FOR LIQ17IDATION OF THE AFFAIRS OF THE WAR ASSETS
ADMINISTRATION
St,c. 105. The fun-,tions, records, property, personnel, obligations,
and commitments of the War Assets Administration are hereby trans-
ferred to the Genera' Services Administration. The functions of the
War Assets Administrator are. hereby transferred to the Administra-
tor of General Services. The War Assets Administration, the office of
thy War Assets Administrator, and the office of Associate War Assets
Administrator are hereby abolished. Personnel now holding appoint-
ments granted under the second sentence of section 5 (b) of the Sur-
plus Property Act of 1944, as a mended, may be continued in such posi-
tions or may be appointed to similar positions for such time as the
Administrator may c:.etermine.
SE:c. 106. The Administrator is hereby authorized, in his discretion,
in order to provide for the effective accomplishment of the functions
transferred to or vested in him by this Act, and from time to time, to
regroup, transfer, and distribute any such functions within the Germ-
oral Services Administration. The Administrator is hereby author-
ized to transfer the funds necessary to accomplish said functions and
report such transfer.:; of fund to the Director of the Bureau of the
Budget.
Si;c. 107. (a) All unexpended balances of appropriations, alloca-
tions, or other funds available or to be. made available, for the use of
the Bureau of Federal Supply, the War Assets Administration, the
Federal Works Agency, and the National Archives Establishment,
a.nd so much of the oilier unexpended balances of appropriations, allo-
cations, or other funds of the Department of the Treasury, available
or to be made available, as the, Director of the Bureau of the Budget
shall determine to relate primarily to functions transferred to or vested
in the Administrator by the provisions of this Act., shall be transferred
to the General Services Administration for use in connection with the
functions to which such balances relate, respectively.
(h) When other functions are transferred to the General Services
Administration fron, any Federal agency, under section 201 (a) (2)
or (:l), or otherwise under this Act, there shall be transferred such
records, property, personnel, appropriations, allocations, and other
funds of such agency to the General Services Administration as the
Director of the Bureau of the Budget shall deterline to relate pri-
marily to the functio is so transferred.
Six. 108. Subject to other provisions of this title relating to per-
sonnel, employees transferred by the provisions of this title shall be
deemed to be employees of the General Services Administration and
their reappointment shall not be required by reason of the enactment
of this Act.
Approved For Release 2000/08/17 : CIA-+2DP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CI RDP59-00224A000100190005-
[PUB. Lew 152.
SEC. 109. (a) There is hereby authorized to be set aside in the
Treasury a special fund which shall be known as the General Supply
Fund. Such fund shall be composed of the assets of the general sup-
ply fund (including any surplus therein) created by section 3 of the
Act of February 27, 1929 (45 Stat. 1342; 41 U. S. C. 7c), and trans-
ferred to the Administrator by section 102 of this Act, and such sums
as may be appropriated thereto, and the fund shall assume all of the
liabilities, obligations, and commitments of the general supply fund
created by such Act of February 27, 1929. The capital of the eneral
Supply Fund shall be in an amount not greater than $75,000,000. The
General Supply Fund shall be available for use by or under the direc-
tion and control of the Administrator (1) for procuring personal
property (including the purchase from or through the Public Printer
of standard forms and blankbook work for field warehouse issue) and
nonpersonal services for the use of Federal agencies in the proper dis-
charge of their responsibilities, and (2) for paying all elements of
cost of the procurement, handling, and distribution thereof, except
that on and after July 1, 1950, those elements of cost which are deter-
mined by the Administrator with the approval of the. Director of the
Bureau of the Budget to be indirect or overhead costs shall not be paid
from the fund.
(b) Payment by requisitioning agencies shall be at prices fixed by
the Administrator. Until July 1, 1950, such prices shall be fixed in
accordance with law and regulations applicable on the date of enact-
ment of this Act to prices fixed by the Director of the Bureau of Fed-
eral Supply. On and after such date, such prices shall be fixed at
levels so as to recover so far as practicable all costs except those which
are determined by the Administrator with the approval of the Director
of the Bureau of the Budget to be indirect or overhead costs. Requi-
sitioning agencies shall pay by advance of funds in all cases where
it is determined by the Administrator that there is insufficient capital
otherwise available in the General Supply Fund. Advances of funds
also may be made by agreement. between the requisitioning agencies
and the Administrator. Where an advance of funds is not made,
requisitioning agencies shall promptly reimburse the General Services
Administration on vouchers prepared by the requisitioning agency on
the basis of itemized invoices submitted by the Administrator and
receiving reports evidencing the delivery to the requisitioning agency
of such supplies or services : Provided, That in any case where pay-
ment shall not have been made by the requisitioning agency within
forty-five days after the date of billing by the Administrator, reim-
bursement may be obtained by the Administrator by the issuance of
transfer and counterwarrants supported by itemized invoices.
(c) The General Supply Fund shall be credited with all reimburse-
ments, advances of funds, and refunds or recoveries relating to sup-
plies or services procured through the fund, including the net proceeds
of disposal of surplus supplies procured through the fund and receipts
from carriers and others for loss of, or damage to, supplies procured
through the fund, and the same are hereby reappropriated for the
purposes of the fund.
(d) A special deposit account may be established as a part of the
General Supply Fund with the Treasurer of the United States for use
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
(PUS. Lew 152.1 8
by the chief disbursing officer or any regional disbursing officer,
Department of the Treasury, which may be credited with (1) funds
advanced from the General Supply Fund account on the books of the
Division of Bookkeeping and Warrants and (2) other funds properly
for credit to the General Supply Fund without being covered into the
Treasury of the United States ; and such special deposit account may
be charged with payments properly chargeable to the General Supply
Fund.
(e) The Comptroller General of the United Sates shall' make an
annual audit of the General Supply Fund as of June 30, and there
shall be covered into the United States Treasury as miscellaneous
receipts any surplus found therein, all assets, liabilities, and prior
losses considered, above the amounts transferred or appropriated to
establish and maintain said fund, and the Comptroller General shall
report to the Congress annually the results of the audit, together with
such recommendations as he may have regarding the status and oper-
ations of the fund.
(f) Subject to the requirements of subsections (a) to (e), inclusive,
of this section, the General Supply Fund also may be used for the
procurement of supplies and nonpersonal services authorized to be
acquired by mixed-ownership Government corporations, or by the
municipal government of the District of Columbia, or by a, requisi-
tioning non-Federal agency when the function of a. Federal agency
authorized to procure for it is transferred to the General Services
Administration: Provided, That the prices charged by the Adminis-
trator in such cases shall be fixed at levels which he estimates will be
sufficient to recover, in addition to the direct costs of the procurement,
handling, and distribution of such supplies and services, the indirect
and overhead costs that the Administrator determines are allocable
thereto.
TITLE II-PROPERTY MANAGEMENT
PROCUREMENT, WAREIIOUSINO, AND RELATED ACTIVITIES
SFc. 201. (a) The Administrator shall, in respect of executive agen-
cies, and to the extent that he determines that so doing is advantageous
to the Government in. terms of economy, efficiency, or service, and with
due regard to the program activities of the agencies concerned-
(1) prescribe policies and methods of procurement and supply
of personal property and nonpersonal services, including related
functions such as contracting, inspection, storage, issue, property
identification and classification, transportation and traffic man-
agement, management of public utility services, and repairing
and converting; and
(2) operate, and, after consultation with the executive agencies
affected, consolidate, take over, or arrange for the operation by
any executive a ?ency of warehouses, supply centers, repair shops,
fuel yards, and ether similar facilities; and
(3) procure and supply personal property and nonpersonal
services for the use of executive agencies in the proper discharge
of their responsibilities, acid perform functions related to procure-
ment and supply such as those mentioned above in subparagraph
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
9 [Pus. Lsw 152.1
(1) : Provided, That contracts for public utility services may be
made for periods not exceeding ten years; and
(4) with respect to transportation and other public utility
services for the use of executive agencies, represent such agencies
in negotiations with carriers and.other public utilities and in pro-
ceedings involving carriers or other public utilities before Federal
and State regulatory bodies;
Provided, That the Secr taryy of Defense may from time to time and
unless the President shall otherwise direct, exempt the National Mi1i-
tary Establishment from action taken or which may be taken by the
Administrator under clauses (1), (2), (3), and (4) above whenever
he determines such exemption to be in the best interests of national
security.
(b) The Administrator shall as far as practicable provide any of
the services specified in subsection (a) of this section to any other
Federal agency, mixed ownership corporation (as defined in the Gov-
ernment Corporation Control Act), or the District of Columbia, or
the Senate, or the House of Representatives, upon its request.
(c) In acquiring personal property, any executive agency, under
regulations to be prescribed by the Administrator, may exchange or
sell similar items and may apply the exchange allowance or proceeds
of sale in such cases in whole or in part payment for the property
acquired : Provided, That any transaction carried out under the
authority of this subsection shall be evidenced in writing.
SEC. 202. (a) In order to minimize expenditures for property, the
Administrator shall prescribe policies and methods to promote the
maximum utilization of excess property by executive agencies, and
he shall provide for the transfer of excess property among Federal
agencies.
(b) Each executive agency shall (1) maintain adequate inventory
controls and accountability systems for the property under its control,
(2) continuously survey property under its control to determine which
is excess property, and promptly report such property to the Admin-
istrator, (3) perform the care and handling of such excess property,
and (4) transfer or dispose of such property as promptly as possible
in accordance with authority delegated and regulations prescribed
by the Administrator.
(c) Each executive agency shall, as far as practicable, (1) make
reassignments of property among activities within the agency when
such property is determined to be no longer required for the purposes
of the appropriation from which it was purchased, (2) transfer excess
property under its control to other Federal agencies, and (3) obtain
excess property from other Federal agencies.
(d) Under existing provisions of law and procedures defined by the
Secretary of Defense, and without regard to the requirements of this
section except subsection (f), excess property of one of the depart-
ments of the National Military Establishment may be transferred to
another department thereof.
(e) Transfers of excess property between Federal agencies (except
transfers for redistribution to other Federal agencies or for disposal
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
]PUB. Lew 152.] 10
as surplus property) shall be at the fair value thereof, as determined
by, or pursuant to regulations of, the Administrator, unless such
transfer is otherwise authorized by any law approved subsequent to
June 21, 1944, to be without reimbursement or transfer of funds.
(f) The Director of the Bureau of the Budget shall prescribe regu-
lations providing for the reporting to said Director by executive aen-
cies of such reassignments or transfers of property between activities
financed by different ,:.ppropriations as he shall deem appropriate, and
the reassignments and transfers so reported shall be reported to the
Congress in the annual budget or otherwise as raid Director may
determine.
(g) Whenever the Administrator determines that the temporary
assignment or reassiinment of any space in excess real property to
any Federal agency for office, storage, or related facilities would be
more advantageous tl an the permanent transfer of such property, he
may make such assig:zment or reassignment for such period of time
as he shall determine and obtain, in the absence of appropriation avail-
ableto him therefor, appropriate reimbursement from the using agency
for the expense of maintaining such space.
(h) The Administrator may authorize the abandonment, destruc-
tion, or donation to pr blic bodies of property which has no commercial
value or of which the estimated cost of continued care and handling
would exceed the estimated proceeds from its sale.
Sic. 203. (a) Except as otherwise provided in this section, the
Administrator shall 1_ave sup-vision and direction over the disposi-
tion of surplus property. Such property shall be cisposed of to such
extent, at such time, in such areas, by such agencies. at such terms and
conditions, and in such manner, as may be prescribed in or pursuant
to this Act.
(b) The care and 1 andling of surplus property, pending its dispo-
sition, and the disposal of surplus property, may be performed by the
General Services Administration or, when so determined by the
Administrator, by th3 executive agency in possession thereof or by
any other executive agency consenting thereto.
(c) Any executive rgency designated or authori; ed by the Admin-
istrator to dispose of surplus property may do so by sale, exchange,
lease, permit, or tram;fer, for cash, credit, or other property, with or
without warranty, and upon such other terms and conditions as the
Administrator deems proper, and it may execute such documents for
the transfer of title or other interest in property and take such other
action as it deems necessary or proper to dispose of such property
under the provisions of this title.
(d) A deed, bill of sale, lease, or other instrument; executed by or on
behalf of any executive agency purporting to transfer title or any
other interest in surplus property under this title shall be conclusive
evidence of compliance with the provisions of this title insofar as con-
cerns title or other interest of any bona fide grantea or transferee for
value and without not: ce of lack of such compliance.
(e) Unless the Administrator shall determine that disposal by adver-
tising will in a given case better protect the public interest, surplus
property disposals may be made without regard to any provision of
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
11 [Pus. LAw 152.1
existing law for advertising until 12 o'clock noon, eastern standard
time, December 31, 1950.
(f) Subject to regulations of the Administrator, any executive
agency may authorize any contractor with such agency or subcon-
tractor thereunder to retain or dispose of any contractor inventory.
(g) The Administrator, in formulating policies with respect to the
disposal of surplus agricultural commodities, surplus foods procesed
from agricultural coininodities, and surplus cotton or woolen goods,
shall consult with the Secretary of Agriculture. Such policies shall be
so formulated as to prevent surplus agricultural commodities, or sur-
plus food processed from agricultural commodities, from being dumped
on the market in a disorderly manner and disrupting the market prices
for agricultural commodities.
(h) Whenever the Secretary of Agriculture determines such action
to be required to assist him in carrying out his responsibilities with
respect to price support or stabilization, the Administrator shall
transfer without charge to the Department of Agriculture any surplus
agricultural commodities, foods, or cotton or woolen goods to be dis-
posed of. Receipts resulting from disposal by the Department of Agri-
culture under this subsection shall be deposited pursuant to any autlior-
ity available to the Secretary of Agriculture, except that net proceeds
of any sale of surplus property so transferred shall be credited pur-
suant to section 204 (b), when applicable.. Surplus farm commodities
so transferred shall not be sold, other than for export, in quantities
in excess of, or at prices less than, those applicable with respect to
sales of such commodities by the Commodity Credit Corporation.
(i) The United Slates Maritime Commission shall dispose of sur-
plus vessels of one thousand five hundred gross tons or more which
the Commission determines to be merchant vessels or capable of con-
version to merchant use, and such vessels shall be disposed of only in
accordance with the provisions of the Merchant Marine Act, 1936,
as amended, and other laws authorizing the sale of such vessels.
(j) (1) Under such regulations as he may prescribe, the Adminis-
trator is authorized in his discretion to donate for educational pur-
poses in the States, Territories, and possessions without cost (except
for costs of care and handling) such equipment, materials, books,
or other supplies under the control of any executive agency as shall
have been determined to be surplus property and which shall have
been determined under paragraph 2 or paragraph 3 of this subsection
to be usable and necessary for educational purposes.
(2) Determination whether such surplus property (except surplus
property donated in conformity with paragraph 3 of this subsection)
is usable and necessary for educational purposes shall be made by the
Federal Security Administrator, who shall allocate such property on
the basis of needs and utilization for transfer by the Administrator
of General Services to tax-supported school systems, schools, colleges,
and universities, and to other nonprofit schools, colleges, and universi-
ties which have been held exempt from taxation under section 101 (6)
of the Internal Revenue Code, or to State departments of education
for distribution to such tax-supported and nonprofit school systems,
schools, colleges, and universities; except that in any State where
another agency is designated by State law for such purpose such
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
[PUB. LAW 152.E 12
transfer shall be made to said agency for such distribution within the
State.
(3) In the case. of surplus property under the control of the
National Military Es.ablishment, the Secretary of Defense shall deter-
mine whether such property is usable and necesss.ry for educational
activities that are of special interest to the armed services, such as
maritime academies or military, naval, Air Force, or Coast Guard
preparatory schools. If such Secretary shall determine that such
property is usable ard necessary for such purposes, he shall allocate
it for transfer by tl.e Administrator to such edreational activities.
If he shall determine: that such property is not usable and necessary
for such purposes, it may be disposed of in accordance with paragraph
2 of this subsection.
(k) (1) Under su:h regulations as he may prescribe, the Admin-
istrator is authorized, in his discretion, to assign to the Federal
Security Administrator for disposal such surplus real property,
including buildings, fixtures, and equipment situated thereon, as is
recommended by the Federal Security Administrator as being needed
for school, classroom, or other educational use, or for use in the protec-
tion of public health, including research.
(A) Subject to the disapproval of the Administrator within
thirty days after notice to him by the Federal Security Admin-
istrator of a proposed transfer of property for school, class
room, or other educational use, the Federal Security Adminis-
trator, through s ich officers or employees of the Federal Security
Agency as he may designate, may sell or lease such real property,
including buildings, fixtures, and equipment si_.uated thereon, for
educational purposes to the States and their political subdivi-
sions and instrur. iental and tax-supported educational insti-
tutions, and to ether nonprofit educational institutions which
have been held exempt from taxation under section 101 (6) of
the Internal Revenue Code.
(B) Subject to the disapproval of the Administrator within
thirty days after notice to him by the Federal Security Adminis-
trator of a proposed transfer of property for public-health use,
the Federal Security Administrator, through such officers or
employees of the. Federal Security Agency as he may designate,
may sell or lease such real property for public-health purposes,
including research, to the States and their political subdivisions
and instrumentalities, and to tax-supported medical institutions,
and to hospitals or other similar institutions not operated for
profit which have been held exempt from taxation under section
101 (6) of the Internal Revenue Code.
(C) In fixing the sale or lease value of property to be disposed
of under subparagraph (A) and subparagraph (B) of this para-
graph, the Federal Security Administrator shall take into consid-
eration any benefit which bas accrued or may accrue to the United
States from the t..se of such property by any such State, political
subdivision, instrumental ii y, or institution.
(D) "States" as used in this subsection includes the District of
Columbia and the Territories and possessions of the United States.
(2) Subject to the disapproval of the Administrator within thirty
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA IRDP59-00224A000100 ,900051e93
days after notice to him of any action to be taken under this
subsection-
(A) The Federal Security Administrator, through such officers
or employees of the Federal Security Agency as he may designate,
in the case of property transferred pursuant to the Surplus
Property Act of 1944, as amended, and pursuant to this Act,
to States, political subdivisions, and instrumentalities thereof,
and tax-supported and other nonprofit educational institutions for
school, classroom, or other educational use;
(B) the Federal Security Administrator, through such officer
or employees of the Federal Security Agency as he may designate,
in the case of property transferred pursuant to the Surplus
Property Act of 1944, as amended, and pursuant to this .Act,
to States, political subdivisions and instrumentalities thereof,
tax-supported medical institutions, and to hospitals and other
similar institutions not operated for profit, for use in the protection of public health (including research)
(C) the Secretary of the Interior, in the case of property trans-
ferred pursuant to the Surplus Property Act. of 1944, as amended,
and pursuant to this Act, to States, political subdivisions, and
instrumentalities thereof, and municipalities for use as a public
park, public recreational area, or historic monument for the
benefit of the public; or
(D) the Secretary of Defense, in the case of property trans-
ferred pursuant to the Surplus Property Act of 1944, as ainended,
to States, political subdivisions, and tax-supported instrumentali-
ties thereof for use in the training and maintenance of civilian
components of the armed forces,
is authorized and directed-
(i) to determine and enforce compliance with the terms, condi-
tions, reservations, and restrictions contained in any instrument
by which such transfer was made;
(ii) to reform, correct, or amend any such instrument by the
execution of a corrective, reformative, or amendatory instrument
where necessary to correct such instrument or to conform such
transfer to the requirements of applicable law ; and
(iii) to (I) grant releases from any of the terms, conditions,
reservations, and restrictions contained in, and (II) convey, quit-
claim, or release to the transferee or other eligible user any right
or interest reserved to the United States by, any instrument by
which such transfer was made, if lie determines that the property
so transferred no longer serves the purpose for which it was
transferred, and that such release, conveyance, or quitclaim deed
will not prevent accomplishment of the purpose for which such
property was so transferred: Provided, That any such release,
conveyance, or quitclaim deed may be granted on, or made sub-
ject to, such terms and conditions as he shall deem necessary to
protect or advance the interests of the United States.
(1) The Administrator is authorized to take possession of a bandoned
and other unclaimed property on premises owned or leased by the tiov-
ernment, to determine when title thereto vested in the United States,
and to utilize, transfer or otherwise dispose of such property. Former
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
1PUB. LAW 152.1 14
owners of such property upon proper claim filed within three years
from the date of ve ting of title in the United States shall be paid
the proceeds realized from the disposition of such property or, if the
property is used or transferred, the fair value therefor as of the
time title was vested in the United States as determined by the Admin-
istrator, less in either case the costs incident to the care and handling
of such property as determined by the AdministrfAor.
PROCEEDS FLOM TRANSFER OR DISPOSITION OF PROPERTY
SEC. 204. (a) All proceeds under this title from any transfer of
excess property to a Federal agency for its use, or from any sale,
lease, or other disposition of surplus property, shall be covered into
the Treasury as miscellaneous receipts, except as provided in subsec-
tions (b), (c), (d), and (e) of this section.
(b) Where the property transferred or disposed of 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 ocher revenue or receipts, then the net proceeds of
the disposition or transfer shall be credited to the reimbursable fund or
appropriation or pad to the Federal agency which determined such
property to be excess: Provided, That the proceeds shall be credited
to miscellaneous receipts in any case when the agency which deter-
mined the property to be excess shall deem it uneconomical or imprac-
tical to ascertain the amount of net proceeds. As used in this sub-
section, the term "net proceeds of the disposition or transfer" means
the proceeds of the disposition or transfer minus all expenses :incurred
for care and handling and disposition or transfer.
(c) Any Federal agency disposing of surplus property under this
title (1) may deposit. in a special account with the Treasurer of the
United States, such amount of the proceeds of such dispositions as it
deems necessary to permit appropriate refunds to purchasers when any
disposition is rescinded or does not become final, or payments for
breach of any warranty, and (2) may withdraw therefrom amounts
so to be refunded or paid, without regard to the Drigin of the funds
withdrawn.
(d) Where any contract entered into by an executive agency or any
subcontract under su^h contract authorizes the proceeds of any sale of
property in the custody of the contractor or subconti-actor to be credited
to the price or cost of the work covered by such contract or subcontract,
the proceeds of any such sale shall be credited in accordance with the
contract or subcontract.
(e) Any executive agency entitled to receive cash under any contract
covering the lease, sate or other disposition of surp'us property may in
its discretion accept, in lieu of cash, any property determined by the
Munitions Board to be strategic or critical material at the prevailing
market price thereof at the tine the cash payment or payments became
or become due.
(f) Where credit has been extended in connecticn with any disposi-
tion of surplus prop-rty under this title or by Wtr Assets Adminis-
tration (or its predecessor ag(:.ncies) under the Surplus Property Act
of 1944, or where srch disposition has been by lease or permit, the
Administrator shall administer and manage such credit, lease, or per-
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIAI~DP59-00224A000100t1p0Q0- 9
mit, and any security therefor, and may enforce, adjust, and settle
any right of the Government with respect thereto in such manner and
upon such terms as he deems in the best interest of the Government.
POLICIES, REGULATIONS, AND DELEGATIONS
SEC. 205. (a) The President may prescribe such policies and direc-
tives, not inconsistent with the provisions of this Act, as he shall deem
necessary to effectuate the provisions of this Act, which policies and
directives shall govern the Administrator and executive agencies in
carrying out their respective functions hereunder.
(b) The Comptroller General after considering the needs and
requirements of the executive agencies shall prescribe principles and
standards of accounting for property, cooperate with the Adminis-
trator and with the executive agencies in the development of property
accounting systems, and approve such systems when deemed to be ade-
quate and in conformity with prescribed principles and standards.
From time to time the General Accounting Office shall examine such
property accounting systems as are established by the executive agen-
cies to determine the extent of compliance with prescribed principles
and standards and approved systems, and the Comptroller General
shall report to the Congress any failure to comply with such principles
and standards or to adequately account for property.
(c) The Administrator shall prescribe such regulations as he deems
necessary to effectuate his functions under this Act, and the head of
each executive agency shall cause to be issued such orders and direc-
tives as such head deems necessary to carry out such regulations.
(d) The Administrator is authorized to delegate and to authorize
successive redelegation of any authority transferred to or vested in
him by this Act (except for the authority to issue regulations on mat-
ters of policy having application to executive agencies, the authority
contained in section 106, and except as otherwise provided in this Act)
to any official in. the General Services Administration or to the head
of any other Federal agency.
(e) With respect to any function transferred to or vested in the
General Services Administration or the Administrator by this Act,
the Administrator may (1) direct the undertaking of its performance
by the General Services Administration or by any constituent organi-
zation therein which he may designate or establish; or (2) designate
and authorize any executive agency to perform such function for
itself; or (3) designate and authorize any other executive agency to
perform such function; or (4) provide for such performance by any
combination of the foregoing methods. Any designation or assign-
ment of functions or delegation of authority to another executive
agency under this section shall be made only with the consent of the
executive agency concerned or upon direction of the President.-
(f) When any executive agency (including the General Services
Administration and constituent organizations thereof) is authorized
and directed by the Administrator to carry out any function under
this Act, the Administrator may, with the approval of the Director
of the Bureau of the Budget, provide for the transfer of appropriate
personnel, records, property, and allocated funds of the General
Services Administration, or of such other executive agency as has
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
LPuB. Lew 152.J 16
theretofore carried out such function, to the executive agency so
authorized and directed.
(g) The Administrator may establish advisory committees to advise
with him with respect to any function transferred. to or vested in the
Administrator by this Act. The members thereof shall serve without
compensation but shall be entitled to transportation and. not to exceed
$25 per diem in lieu of subsistence, as authorized by section 5 of the
Act of August 2, 1916 (5 U. S. C. 73b-2), for persons so serving.
(h) The Administrator shall advise and consult with interested
Federal agencies with a view to obtaining their advice and assistance
in carrying out the purposes of this title.
SURVEY 3, STANDARDIZATION AND CATALDOING
Sec. 206. (a) As lie may deem necessary for the effectuation of his
functions under this title, and after adequate advance notice to the
executive agencies affected, and with due regard to the requirements
of the National Military Establishment as determined by the Secretary
of Defense, the Adir inistrator is authorized (1) to make surveys of
Government property and property management practices and obtain
reports thereon from executive agencies; (2) to cooperate with execu-
tive agencies in the establishment of reasonable inventory levels for
property stocked by them and from time to time report, any excessive
stocking to the Congress and to the Director of the Bureau of the
Budget; (3) to establish and maintain such uniform Federal supply
catalog system as nisi be appropriate to identify and classify personal
property under the control of Federal agencies: Prorided, That the
Administrator and tl e Secretary of Defense shall coordinate the cata-
loging activities of the General Services Administration and the
National Military Establishment so as to avoid unnecessary duplica-
tion; and (4) to prescribe standardized forms and procedures, except
such as the ComptroL.'.er General is authorized by law to prescribe, and
standard purchase specifications.
(b) Each Federal: gency shall utilize such unifcrm Federal supply
catalog system and standard purchase specificatians, except as the
Administrator, taking into consideration efficiency, economy, and other
interests of the Government, shall otherwise provide.
(c) The General Accounting Office shall audit all types of property
accounts and transactions at such times and in such manner as deter-
mined by the Comptroller General. Such audit shall be conducted as
far as practicable at the place or places where the property or records
of the executive agencies are kept and shall include but not necessarily
be limited to an evaluation of the effectiveness of internal controls and
audits, and a general audit of the discharge of accountability for
Government-owned or controlled property based upon generally
accepted principles o1' auditing.
Sax;. 207. Whenever any executive agency shall begin negotiations
for the disposition tc private interests of a plant er plants, or other
property, which cost the Government $1,000,000 or more, or of patents,
processes, techniques, or inventions, irrespective of cost, the executive
agency shall promptly notify the Attorney General of the proposed
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIArFDP59-00224A000100t,QpQ
disposal and the probable terms or conditions thereof. Within a
reasonable time, in no event to exceed sixty days after receiving such
notification, the Attorney General shall advise the Administrator and
the interested executive agency whether, insofar as he can determine,
the proposed disposition would tend to create or maintain a situation
inconsistent with the antitrust laws. Upon the request of the Attorney
General, the Administrator or interested executive agency shall fur-
nish or cause to be furnished such information as it may possess which
the Attorney General determines to be appropriate or necessary to
enable him to give the advice called for by this section or to determine
whether any other disposition or proposed disposition of surplus
property violates the antitrust laws. Nothing in this Act shall
impair, amend, or modify the antitrust laws or limit and prevent their
application to persons who buy or otherwise acquire property under
the provisions of this Act. As used in this section the term "antitrust
laws" includes the Act of July 2, 1890 (ch. (347, 26 Stat. 209), as
amended; the Act; of October 15, 1.914 (ch. 323, 38 Stat. 730), as
amended; the Federal Trade Commission Act (38 Stat. 717), as
amended; and sections 73 and 74 of the Act of August 27, 1894
(28 Stat. 570), as amended.
EMPLOYMENT OF PERSONNEL
SEC. 208. (a) The Administrator is authorized, subject to the civil-
service and classification laws, to appoint and fix the compensation of
such personnel as may be necessary to carry out the provisions of titles
1111, 111, and V of this Act.
(b) To such extent as lie finds necessary to carry out the provisions
of titles I, II, III, and V of this Act, the Administrator is hereby
authorized to procure the temporary (not in excess of one year) or
intermittent services of experts or consultants or organizations thereof,
including stenographic reporting services, by contract or appointment,
and in such cases such service shall be without regard to the civil-
service and classification laws, and, except in the case of stenographic
reporting services by organizations, without regard to section :1709,
Revised Statutes, as amended (41 U. S. C. 5).
(c) Notwithstanding the provisions of section 1222 of the Revised
Statutes (10 U. S. C. 576) or of any other provision of law, the
Administrator in carrying out the functions imposed upon him byy this
Act is authorized to utilize in his agency the services of officials,
officers, and other personnel in other executive agencies, including
personnel of the armed services, with the consent of the head of the
agency concerned.
SEC. 209. (a) Where any property is transferred or disposed of in
accordance with this Act and any regulations prescribed hereunder,
no officer or employee of the Government shall (1) be liable with respect
to such transfer or disposition except for his own fraud, or (`,) be
accountable for the collection of any purchase price for such property
which is determined to be uncollectible by the Federal agency respon-
sible therefor.
(b) Every person who shall use or engage in, or cause to be used or
engaged in, or enter into an agreement, combination, or conspiracy to
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
true. Lew 162.1 18
use or engage in or to cause to be used or engaged. in, any fraudulent
trick, scheme, or device, for the purpose of securing or obtaining, or
aiding to secure or obtain, for any person any payment, property, or
other benefits from the United States or any Federal agency in con-
nection with the procurement, transfer, or disposition of property
hereunder-
(1) shall pay to the United States the sun, of $2,000 for each
such act, and double the amount of any damage which the United
States may hav, sustained by reason thereof, together with the
cost of suit; or
(2) shall, if the United States shall so elect, pay to the United
States, as liquidated damages, a sum equal to twice the considera-
tion agreed to be given by the United States or any Federal agency
to such person or by such person to the United States or any
Federal agency, as the case may be; or
(3) shall, if the United States shall so elect, restore to the
United States the money or property thus secured and obtained
and the United States shall retain as liquidated damages any
property, moneyy, or other consideration given to the United States
or any Federal agency for such money or property, as the case
may be.
(e) The several district courts of the United States, the District
Court of the United States for the District of Columbia, and the
several district courti of the Territories and possessions of the United
States, within whose jurisdictional limits the person, or persons, doing
or committing such act, or any one of them, resides or shall be found,
shall wheresoever such act may have been done or committed, have
full power and jurisdiction to hear, try, and determine such suit, and
such person or perso: is as are not inhabitants of or found within the
district in which suit is brought may be brought in by order of the
court to be served personally or by publication or in such other
reasonable manner a:;~ the court. may direct.
(d) The civil remedies provided in this section shall be in addition
to all other criminal penalties and civil remedies provided by law.
REPORTS TO CONGRESS
Sac. 210. The Administrator shall submit a report to the Congress,
in January of each year and at such other times as he may deem it
desirable, regarding the administration of his functions under this
Act, together with such recommendations for amendments to this Act
as he may deem appropriate as the result of the administration of
such functions, at w;Ilch time he shall also cite the laws becoming
obsolete by reason of passage or operation of the provisions of this Act.
TITLE 111--PROCUREMENT PROCEDURE
DECLARATION OF PURPOSE
Sac. 301. The purpose of this title is to facilitate the procurement
of supplies and services.
APPLICATION AND PROCUREMENT METHODS
Sr;c. 302. (a) The provisions of this title shall be applicable to
purchases and contracts for supplies or services made-
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-FI@P59-00224A0001001QQQS 452.1
(1) by the General Services Administration for the use of
such agency or otherwise; and
(2) by any other executive agency (except any agency named
in section 2 (a) of the Armed Services Procurement Act of 1947),
to the extent of and in conformity with authority delegated by
the Administrator pursuant to the provisions of .this subsection.
The Administrator may delegate to the head of any other such agency
authority to make purchases and contracts for supplies or services
pursuant to the provisions of this title (A) for the use of two or
more executive agencies or (B) in other cases upon a determination
by the Administrator that by reason of circumstances set forth in
such determination such delegation is advantageous to the Govern-
ment in terms of economy, efficiency, or national security. Notice
of every such delegation of authority so made shall be furnished to
the General Accounting Office.
(b) It is the declared policy of the Congress that a fair propor-
tion of the total purchases and contracts for supplies and services for
the Government shall be placed with small-business concerns. When-
,ever it is proposed to make a contract or purchase in excess of $10,000
by negotiation and without advertising, pursuant to the authority of
paragraph (7) or (8) of section 302 (c) of this title, suitable advance
publicity, as determined by the agency head with due regard to the
type of supplies involved and other relevant considerations, shall be
given for a period of at least fifteen days, wherever practicable, as
determined by the agency head.
(c) All purchases and contracts for supplies and services shall be
made by advertising, as provided in section 303, except that such pur-
chases and contracts may be negotiated by the agency head without
advertising if-
(1) determined to be necessary in the public interest during the
period of a national emergency declared by the President or by the
Congress ;
(2) the public exigency will not admit of the delay incident to
advertising ;
(3) the aggregate amount involved does not exceed $1,000:
Provided, That no agency other than the General Services Admin-
istration shall make any purchase of, or contract for, supplies or
services in excess of $500 under this paragraph except in the
exercise of authority conferred by the Administrator to procure
and furnish supplies and services for the use of two or more
executive agencies;
(4) for personal or professional services;
(5) for any service to be rendered by any university, college, or
other educational institution;
(6) the supplies or services are to be procured and used outside
the limits of the United States and its possessions;
(7) for medicines or medical supplies;
(8) for supplies purchased for authorized resale;
(9) for supplies or services for which it is impracticable to
secure competition ;
(10) the agency head determines that the purchase or contract
is for experimental, developmental, or research work, or for the
manufacture or furnishing of supplies for experimentation, devel-
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
[POs. Lew 152.] 20
opment, research, or test: Provided, That beginning six months
after the effective date of this title and at the end of each six-month
period thereafter, there shall be furnished to the Congress a, report
setting forth the name of each contractor with whom a contract
has been entered into pursuant to this paragraph (10) since the
(late of the last such report, the amount of the contract, and, with
clue consideration given to the national security, a description of
the work required to be performed thereunder;
(11) for supplies or services as to which the agency head deter-
mines that the character, ingredients, or components thereof are
such that the purchase or contract should not be publicly disclosed;
(12) for equipment which the agency head determines to be
technical equipment, and as to which he determines that the pro-
curement thereof without advertising is necessary in special situ-
ations or in particular localities in order to assure standardization
of equipment and interchangeability of parts an:l that such stand-
ardization and interchangeability is necessary in the public
interest;
(13) for supplies or services as to which the agency head
determines that Did prices after advertising therefor are not
reasonable (either as to all or as to some part of the requirements)
or have not been independently arrived at in open competition :
Provided, That no negotiated purchase or contract may be entered
into under this paragraph after the rejection of all or some of
the bids received unless (A) notification of the .ntention to nego-
tiate and reasonable opportunity to negotiate shall have been
given by the ages-;y head to each responsible bidder and (B) the
negotiated price is the lowest negotiated price offered by any
responsible supplier; or
(14) otherwise authorized by law.
(d) If in the opinicn of the agency head bids received after adver-
tising evidence any violation of the antitrust laws he shall refer such
bids to the Attorney General for appropriate action.
(e) This section shall not be construed to (A) authorize the erec-
tion, repair, or furnishing of any public building or public improve-
ment, but such authorization shall be required in the same manner
as heretofore, or (B) permit any contract for the construction or
repair of buildings, roads, sidewalks, sewers, mains, or similar items to
be negotiated without advertising as required by section 303, unless
such contract is to be performed outside the continental United States
or unless negotiation of such contract is authorized by the provisions
of paragraph (1), (2), (3), (t)), (10), (11), or (13) of subsection
(c) of this section.
;d)VERTISING REQUIREMENTS
SEC. 303. Whenever advertising is required-
(a) The advertisement for bids shall be made a sufficient time
previous to the purchase or contract, and specifications and invitations
for bids shall permit such full and free competition as is consistent
with the procurement of types of supplies and services necessary to
meet the requirements: of the agency concerned.
(b) All bids shall be publicly opened at the time and place stated
in the advertisement. Award shall be made with reasonable prompt-
ness by written notice to that responsible bidder whose bid, conform
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA- ?P59-00224A000100190005-0
[Pus. Liw 152.]
ing to the invitation for bids, will be most advantageous to the Govern-
ment price and other factors considered : Provided, That all bids may
be rejected when the agency head determines that it is in the public
interest so to do.
REQUIREMENTS OF NEGOTIATED CONTRACTS
SEC. 304. (a) Except as provided in subsection (b) of this section,
contracts negotiated pursuant to section 302 (c) may be of any type
which in the opinion of the agency head will promote the best interests
of the Government. Every contract negotiated pursuant to section
302 (c) shall contain a suitable warranty, as determined by the agency
head, by the contractor that no person or selling agency has been
employed or retained to solicit or secure such contract upon an agree-
ment or understanding for a commission, percentage, brokerage, or
contingent fee, excepting bona fide employees or bona fide established
commercial or sellingagencies maintained by the contractor for the
purpose of securing usiness, for the breach or violation of which
warranty the Government shall have the right to annul such contract
without liability or in its discretion to deduct from the contract price
sir consideration the full amount of such commission, percentage,
brokerage, or contingent fee.
(b) The cost-phis-a-percentage-of-cost system of contracting Shall
not be used, and in the case of a cost-plus-a-fixed-fee contract the fee
shall not exceed 10 per centum of the estimated cost of the contract,
exclusive of the fee, as determined by the agency head at the time of
entering into such contract (except that a fee not in excess of 15 per
centum of such estimated cost is authorized in any such contract for
experimental, developmental, or research work and that a fee inclusive
of the contractor's costs and not in excess of 6 per centum of the esti-
mated cost, exclusive of fees, as determined by the agency head at the
time of entering into the contract, of the project to which such fee is
applicable is authorized in contracts for architectural or engineering
services relating to any public works or utility project). Neither a
cost nor a cost-plus-a-fixed-fee contract nor an incentive-type contract
shall be used unless the agency head determines that such method of
.contracting is likely to be less costly than other methods or that it is
impractical to secure supplies or services of the kind or quality
required without the use of a cost or cost-plus-a-fixed-fee contract or
an incentive-type contract. All cost and cost-plus-a-fixed-fee con-
tracts shall provide for advance notification by the contractor to the
procuring agency of any subcontract thereunder on a cost-plus-a-
fixed-fee basis and of any fixed-price subcontract or purchase order
which exceeds in dollar amount either $25,000 or 5 per centum of the
total estimated cost of the prime contract; and a procuring agencyy,
through any authorized representative thereof, shall have the right
to inspect the plans and to audit the books and records of any prime
contractor or subcontractor engaged in the performance of a cost or
cost-plus- a-fixed-fee contract.
SEC. 305. (a) The agency head may make advance payments under
negotiated contvs ,ts heretofore or hereafter executed in any amount
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
IPuu. Lew 152.] 22
not exceeding the contract price upon such terms as the parties shall
agree : Provided, That advance payments shall be made. only upon
adequate security and if the agency head determines that provision
for such advance payments is in the public interest or in the interest
of the national defense and i necessary and appropriate in order
to procure required supplies or services under the contract.
(b) The terms governing advance payments may include as secu-
rity provision for, and upon inclusion of such prevision there shall
thereby be created, a lien in favor of the Government, paramount
to all other liens, upon the supplies contracted for, upon the credit,
balance in any special account in which such payments may be depos-
ited and upon such of the material and other property acquired for
performance of the contract as the parties shall agree.
WAIVER OF LIQUIDATED DAMAGES
SEC. 306. Whenever any contract made on behalf of the Government
by the agency head or by officers authorized by hirr, so to do includes
a provision for liquidated damages for delay, the Comptroller General
on the recommendation of the agency head is authorized and empow-
ered to remit the whole or any part of such damages as in his discre-
tion may be just and equitable.
Sic. 307. (a) The determinations and decisions provided in this title
to be made by the Administrator or other agency head may be made
with respect to indiv-dual purchases and contracts or with respect
to classes of purchases or contracts, and shall be final. Except as pro-
vided in subsection (b) of this section, the agency head is authorized
to delegate his power, provided by this title, including the making
of such determinations and decisions, in his discretion and subject to
his direction, to any other officer or officers or officials of the agency.
(b) The power of the agency head to make the determinations or
decisions specified in paragraphs (11) and (12) of section 302 (c) and
in section 305 (a) shall not be delegable, and the power to make the
determinations or decisions specified in paragraph (10) of section
302 (c) shall be delegable only to a chief officer responsible for pro-
curement and only with respect to contracts which will not require the
expenditure of more than $25,000. The power of the Administrator
to make the delegation ~ and determinations specified in section 302 (a)
shall be delegable onl,' to the Deputy Administrator or to the chief
official of any principal organizational unit of the General Services
Administration.
(c) Each determination or decision required by paragraphs (10),
(11), (12), or (13) of section 302 (c), by section 304 or by section
305 (a) shall be based upon written findings made by the official
making such determination, which findings shall be final and shall
be available within the agency for a period of at least six years follow-
ing the date of the determination. A copy of the findings shall be
submitted to the General Accounting Office with the contract.
(d) In any case where any purchase or contract is negotiated pur-
suant, to the provision, of section 302 (c), except in a case covered by
paragraphs (2), (3), (4), (5), or (6) thereof, the data with respect
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CI~FDP59-00224A000100190005-0
[Pus. LAW 152.
to the negotiation-shall be preserved in the files of the agency for a
period of six years following final payment on such contract.
STATUTES CONTINUED IN EFFECT
SEC. 308. No purchase or contract shall be exempt from the Act of
June 30, 1936 (49 Stat. 2036, as amended; 41 U. S. C. 35 to 45), or
from the Act of March 3, 1931 (46 Stat. 1494, as amended; 40 U. S. C.
276a to 276a-6), solely by reason of having been entered into pur-
suant to section 302 (c) hereof without advertising, and the provisions
of said Acts and of the Act of June 19, 1912 (37 Stat. 137, as amended;
40 U. S. C. 324 and 325a), if otherwise applicable, shall apply to such
purchases and contracts.
SEC. 309. As used in this title-
(a) The term "agency head" shall mean the head or any assistant
head of any executive agency, and may at the option of the Admi riis-
trator include the chief official of any principal organizational unit
of the General Services Administration.
(b) The term "supplies" shall mean all property except land, and
shall include, by way of description and without limitation, public
works, buildings, facilities, ships, floating equipment, and vessels of
every character, type and description (except the categories of naval.
vessels named in section 3 (d)), aircraft, parts, accessories, equipment,
machine tools and alteration or installation thereof.
STATUTES NOT APPLICABLE
SEC. 310. The following provisions of law shall not apply to the
procurement of supplies or services (1) by the General Services
Administration, or (2) within the scope of authority delegated by the
Administrator to any other executive agency :
Revised Statutes, section 3709, as amended (41 U. S. C. 5) ;
Revised Statutes, section 3735 (41 U. S. C. 13) ;
Sections 1 and 2 of the Act of October 10, 1940 (54 Stat. 1109, as
amended ; 41 U. S. C. 6 and 6a).
TITLE IV-FOREIGN EXCESS PROPERTY
DISPOSAL OF FOREIGN EXCESS PROPERTY
SEC. 401. Each executive agency having foreign excess property
shall be responsible for the disposal thereof : Provided, That (a) the
head of each such executive agency shall, with respect to the disposi-
tion of such property, conform to the foreign policy of the United
States; (b) the Secretary of State shall have the authority to use for-
eign currencies and credits acquired by the United States under section
402 (b) of this Act in order to effectuate the purposes of section
32 (b) (2) of the Surplus Property Act of 1944, as amended, and the
Foreign Service Buildings Act of May 7, 1926, as amended (including
Public Law 547, Seventy-ninth Congress (60 Stat. 663) ), and for the
purpose of paying any other governmental expenses payable in local
currencies, and the authority to amend, modify, and renew agreements
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
(Pins. Lew 152.1 24
in effect on the effe-five date of this Act; (c) an.yforeign currencies;
or credits acquired by the Department of State pursuant to such
agreements shall be administered in accordance with procedures that
may from time to tine be established by the Secretary of the Treasury
nnd, if and when reduced to United States currency, shall be. covered
into the Treasury ar miscellaneous receipts; and (d) the Department
Of State shall, except: to such extent as the President shall otherwise
determine, continue to perform other functions with respect to agree-
ments for the disposal of foreign excess property in effect on the
effective date of this Act.
r 1ETHODS AND TERMS OF DTSPOSAI,
SEC. 402. Foreign excess property may be disposed of (a) by sale,
exchange, lease, or transfer, for cash, credit, or other property, with or
without warranty, and upon such other terms and conditions as the
head of the executive agency concerned deems proper; but in no event
shall any property be sold without a condition forbidding its importa-
tion into the United States, unless the Secretary of Agriculture (in the.
case of any agricultural commodity, food, or cotton or woolen goods)
or the Secretary of Commerce (in the case of any other property)
determines that the importation of such property would relieve domes-
tic shortages or othe -wise be beneficial to the economy of this country,,
or (b) for foreign currencies or credits, or substantial benefits or the
discharge of claims resulting from the compromise or settlement of
such claims by any executive agency in accordance with the law,
whenever the head of the executive agency concerned determines that
it is in the interest of the United States to do so. Such property may
be disposed of without advertising when the head of the executive
agency concerned finds so doing to be most practicable and to be advan-
tageous to the Government. Tfie head of each executive agency respon-
sible for the disposal of foreign excess property may execute such
documents for the transfer of title or other interest in property and
take such other action as he deems necessary or proper to dispose of
such property; and :nay authorize the abandonment, destruction, or
donation of foreign excess property under his control which has no
commercial value or the estimated cost of care and handling of which
would exceed the estimated proceeds from its sale.
PROCEEDS, FOREIGN CURRENCIES
SEc. 403. Proceeds from the sale, lease, or other disposition of for-
eign excess property (a) shall, if in the form of foreign currencies
or credits, be administered in accordance with procedures that may
from time to time he established by the Secretary of the Treasury, and
(b) shall, if in United States currency, or when any proceeds in for-
eign currencies or credits shall be reduced to United States currency,
be covered into the Treasury as miscellaneous receipts : Provided,
That the provisions of section 204 (b) (which by their terms apply
to property disposed of under title II) shall be applicable to proceeds
of foreign excess property disposed of for United States currency
under this title IV: 1nd provided further, That any executive agency
disposing of foreign excess property under this title (1) may deposit,
in a special account with the Treasurer of the United States, such
Approved For Release 2000/08/17 : CIA-kDP59-00224A000100190005-0
 Approved For Release 2000/08/17: CIA-PP59-00224A000100PQQQ,,.
amount of the proceeds of such dispositions as it deems necessary to
permit appropriate refunds to purchasers when any disposition is
rescinded or does not become final, or payments for breach of any
warranty, and (2) may withdraw therefrom amounts so to be refunded
or paid, without regard to the origin of the funds withdrawn.
SEC. 404. (a) The President may prescribe such policies, not incon-
sistent with the provisions of this title, as he shall deem necessary to
effectuate the provisions of this title, which provisions shall guide each
executive agency in carrying out its functions hereunder.
(b) Any authority conferred upon any executive agency or the
head thereof by the provisions of this title may be delegated, and
successive redelegation thereof may be authorized, by such head to
an official in such agency or to the head of any other executive agency.
(c) The head of each executive agency responsible for the disposal
of foreign excess property hereunder may, as may be necessary to
carry out his functions under this title, (1) subject to the civil-service
and classification laws, appoint and fix the compensation of personnel,
and (2) without regard to the civil-service and classification laws,
appoint and fix the compensation of personnel outside the continental
limits of the United States.
(d) The head of each executive agency responsible for the disposal
of foreign excess property under this title shall submit a report to
Congress in January of each year or at such other time or times as
he may deem desirable relative to its activities under this title, together
with any appropriate recommendations.
(e) There shall be transferred from the Department of State to each
other executive agency affected by this title such records, property,
personnel, obligations, commitments, and unexpended balances of
appropriations, allocations, and other funds, available or to be made
available, as the Director of the Bureau of the Budget shall determine
to relate to functions of such agency under this title which have
heretofore been administered by the Department of State.
TITLE V-GENERAL PROVISIONS
APPLICABILITY OF EXISTING PROCEDURES
SEC. 501. All policies, procedures, and directives prescribed-
(a) by either the Director, Bureau of Federal Supply, or the
Secretary of the Treasury and relating to any function transferred
to or vested in the Administrator, by the provisions of this Act;
(b) by any officer of the Government under the authority of
the Surplus Property Act of 1944, as amended, or under other
authority with respect to surplus property or foreign excess
21
property ;
(c) by or under authority of the Federal Works Administra-
tor or the head of any constituent agency of the Federal Works
Agency ; and
(d) by the Archivist of the United States or any other officer
or body whose functions are transferred by title I of this Act,
in effect upon the effective date of this Act and not inconsistent here-
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
(Pvs. LAw 152.1 26
with, shall remain in full force and effect unless and until superseded,
or except as they mad; be amended, under the authority of this Act or
under other appropriate authority.
I1 PEAL AND SAVING PROVISIONS
SEC. 502. (a) Thera are hereby repealed-
(1) the Surplus Property Act of 1944, as amended ((except
sections 13 (d), 13 (g), 13 (li), 28, and 32 (b) (2) ), and sections
501 and 502 of Peorganization Plan Numberc.d 1. of 1947: Pro-
vided, That, with respect to the disposal under this Act of any
surplus real estate, all priorities and preferences provided for
in said Act, as amended, shall continue in effect until 1.2 o'clock
noon (eastern standard time), December 31, 1949;
(2) that portion of the Act entitled "An Act making supple-
mental appropriations for the Executive Office and sundry inde-
pendent executive bureaus, boards, commissions, and offices, for
the fiscal year er ding June 30, 1949, and for other purposes",
approved June 30, 1948 (Public Law 862, Eightieth Congress),
as amended, apl.e.aring under the caption "Surplus property
disposal";
(3) the Act entitled "An Act to authorize the Secretary of War
to dispose of material no longer needed by the Army", approved
February 28, 1936 (49 Stat. 1147; 10 U. S. C. 1258) ;
(4) the Act entitled "An Act to authorize the Secretary of the
Navy to dispose of material no longer needed by the Navy",
approved May 23, 1930, as amended (46 Stat. 378; 34 IT. S. C.
546c) ;
(5) section 5 of the Act of July 11, 1919 (41 Stat. 67; 40 U. S. C.
31);
(6) the first and second provisos contained in the fifth para-
graph under the heading "Division of Supply" in section "I of the
Act of December 90, 1928 (45 Stat. 1030; 40 U. S. C. 311a) ;
(7) the Act entitled "An Act to authorize the Secretary of the
Army, the Secretary of the Navy, and the Secretary of the Air
Force to donate excess and surplus property for educational
purposes", approved July 2, 1948 (Public Law 889, Eightieth
Congress) ;
(8) section 203 of the Act of June 26, 1943 (57 Stat. 195, as
amended; 5 U. S. C. 118d-3);
(9) the Act of A. pril 15,1037 (50 Stat. 64; 5 U. S. C. 118d)
;
(10) the second proviso contained in the paragraph of the Act
of August 10, 1919 (37 Stat. 296; 5 U. S. C. 545), headed "Con-
tingent expenses, Department of Agriculture";
(11) the second proviso contained in the twentieth paragraph
of section 1 of the Act of March 2, 1917 (39 Stat. 973; 5 U. S. C.
494) ;
(12) the twenty-sixth paragraph under the heading "National
Parks" of the Act of January 24, 1923 (41), Stat. 1215; 16
U. S.C.9);
(13) the fifth paragraph under the heading "Experiments and
demonstrations in livestock production in the cane-sugar and
cotton districts of the United States" of the Act of June 30, 1914
(38 Stat. 441; 5 U. S. C. 546) ;
Approved For Release 2000/08/17 : CIA-~DP59-00224A000100190005-0
 Approved For Release 2000/08/17: CIA-pP59-00224A00010011P00p5 O
(14) the proviso contained in the second paragraph under the
heading "Library, Department of Agriculture" of the Act of
March 4,1915 (38 Stat. 1107; 5 U. S. C. 548) ;
(15) the second proviso contained in the second paragraph
under the heading `Clothing and camp and garrison equipage"
of section 1 of the Act of August 29, 1916 (39 Stat. 635; 10
U. S. C. 1271)
;
(16) the Act of May 11, 1939 (53 Stat. 739 ; 10 U. S. C. 127 1a)
(17) the fifth paragraph under the heading "Office of the Chief
Signal Officer" of the Act of May 12, 1917 (40 Stat. 43, as
amended; 10 U. S. C. 1272) ;
(18) the third proviso contained in the second paragraph under
the heading "Office of the Chief Signal Officer" of the Act of
March 4, 1915 (38 Stat. 1064; 10 U. S. C. 1273) ;
(19) the fourteenth paragraph under the heading "Smithso-
nian Institution" of section 1 of the Act of March 3,1915 (38 Stat.
839. 20 U. S. C. 66)
(20) the second paragraph under the heading "Government
hospital for the insane" of section 1 of the Act of August 1, 1914
(38 Stat. 649; 24 U. S. C. 173) ;
(21) the second paragraph under the heading "Saint Eliza-
beths Hospital" of section 1 of the Act of June 12, 1917 (40 Stat.
153; 24 U. S. C. 174) ;
(22) the proviso contained in the second paragraph under the
heading "Bureau of Supplies and Accounts" of the Act of August
122,1912 (37 Stat. 346; 34 U. S. C. 531a) ;
(23) the second proviso of the first paragraph under the head-
ing "Bureau of Yards and Docks" of the Act of August 29, 1916
(34 U. S. C. 532) ;
(24) the proviso contained in the second paragraph under the
heading "Maintenance, Quartermaster's Department, Marine
Corps" of the Act of March 4, 1917 (39 Stat. 1189; 34 U. S. C.
723) ;
(25) the twentieth paragraph under the heading "Bureau of
Mines" of section 1 of the Act of July 19, 1919 (41 Stat. 200; 40
U. S. C. 118) ;
(26) the first sentence of section 5 of the Act of March 4, 1915
((38Stat.1161;41 IT. S. C. 26) 9
(27) the third paragraph under the heading "Interstate Com-
merce Commission" of section 1 of the Act of August 1, 1914 (38
Stat. 627; 49 U. S. C. 58) ;
(28) the Act of June 6, 1941 (55 Stat. 247; 14 U. S. C. 31b);
(29) section 4 of the Act of June 17, 1910 (36 Stat. 531; 41
U. S. C. 7);
(30) the Act of February 27, 1929 (45 Stat. 1341; 41 U. S. C.
7a, 7b, 7c, and 7d) ; and
(31) section 1 of the Act of May 14, 1935 (49 Stat. 234; 41
U. S. C. 7c-1).
(b) The provisions of the first, third, and fifth paragraphs of section
1 of Executive Order Numbered 6166 of June 10, 193.,, are hereby
superseded, insofar as they relate to any function now administered
by the Bureau of Federal Supply except functions with respect to
standard contract forms.
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP 9-00224A000100190005-0
1PvB. Lew 152.1
(c) The authority conferred by this Act is in addition to any
authority conferred by any other law and shall not be subject to the
provisions of any law inconsistent herewith, except that sections 205
(b) and 206 (c) of this Act shall not be applicable to any Government
corporation or agency which is subject to the Government Corporation
Control Act (59 Stat. 597; 31 U. S. C. 841).
(d) Nothing in this Act shall impair or affect any authority of-
(1) the President under the Philippine Property Act of 1946
(60 Stat. 418; 22 U. S. C. 1381) ;
(2) any executive agency with respect to any phase (including,.
but not limited to, procurement, storage, transportation, process-
ing, and disposal) of any program conducted for purposes of
resale, price support, grants to farmers, stabilization, transfer to
foreign governments, or foreign aid, relief, or rehabilitation:
Provided, That the agency carrying out such program shall, to
the maximum exent practicable, consistent with the fulfillment
of the purposes o:f the program and the effective and efficient con-
duct of its business, coordinate its operations with the require-
ments of this Act. and the policies and regulations prescribed
pursuant thereto ;
(3) any executive agency named in the Armed Services Pro-
curement Act of 1947, and the head thereof, with respect to the-
administration of said Act;
(4) the National Military Establishment with respect t:o prop-
erty required for or located in occupied territories;
(5) the Secretary of Defense with respect to the administration
of the National Industrial Reserve Act of 194E;
(6) the Secretary of Defense, the Munitions Board, and the
Secretaries of the Army, Navy, and Air Force with respect to the
administration of the Strategic and Critical Materials Stock
Piling Act (60 Stat. 596), and provided that any imported mate-
rials which the authorized procuring agency shall certify to the
Commissioner of Customs to be strategic and critical materials
procured under said Act may be entered, or withdrawn from
warehouse, free of duty ;
(7) the Secretary of State under the Foreign Service Buildings
Act of RM,iy 7, 1926, as amended;
(8) the Secretary of the Army, the Secretary of the Navy, and
the Secretary of the Air Force with respect to the administration
of section 1. (b) of the Act entitled "An Act to expedite the
strengthening of the national defense", approved July 2, 1940
(54 Stat. 712) ;
(9) the Secretary of Agoiculture or the Department or Agri-
culture under (A) the National School Lunch Act (60 Stat. 230) ;
(B) the Farmers Home Administration Act of 1946 (60 Stat.
1062) ; (C) the Act of August 31, 1947, Public Law 298, Eightieth
Congress, with respect to the disposal of labor supply centers,
and labor homes, labor camps, or facilities; (D) section 32 of
the Act of Augu,a;t 24, 1935 (49 Stat. 774), as amended, with
respect to the exportation and domestic consumption of agricul-
tural products; or (E) section 201 of the Agricultural Adjustment
Act of 1938 (52 Stat. 36) or section 203 (j) of the Agricultural
Marketing Act of 1946 (60 Stat. 1082) ;
Approved For Release 2000/08/17 : CIA-~2DP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
[PVB. LAW 1i2.!
(10) the Secretary of Agriculture, Farm Credit Administration,
or any farm credit board under section 6 (b) of the Farm Credit
Act of 1937 (50 Stitt. 706), with respect to the acquisition or
-disposal of property ;
(11) the Housing and Home Finance Agency, or any officer or
constituent agency therein, with respect to the disposal of resi-
dential property, or of other property (real or personal) held as
part of or acquired for or in connection with residential property,
or in connection with the insurance of mortgages, loans, or savings
and loan accounts under the National Housing Act;
(12) the Tennessee Valley Authority with respect to nonper-
sonal services, with respect to the matters referred to in section
201 (a) (4), and with respect to any property acquired or to be
acquired for or in connection with any program of processing,
manufacture, production, or force account construction : Provided,
That the Tennessee Valley Authority shall to the maximum extent
that it may deem practicable, consistent with the fulfillment of
the purpose of its program and the effective and efficient conduct
of its business, coordinate its operations with the requirements
of this Act and the policies and regulations prescribed pursuant
thereto ;
(13) the Atomic Energy Commission;
(14) the Administrator of Civil Aeronautics or the Chief of the
Weather Bureau with respect to the disposal of airport property
and airway property for use as such property. For the purpose
of this paragraph the terms "airport property" and "airway prop-
erty" shall have the respective meanings ascribed to them in the
International Aviation Facilities Act (62 Stat. 450) ;
(15) the Postmaster General or the Postal Establishment with
respect to the means and methods of distribution and transporta-
tion of the mails, and contracts, negotiations, and proceedings
before Federal and State regulatory and rate-making bodies,
relating to the transportation of the mails;
(16) the United States Maritime Commission with respect to
the construction, reconstruction, and reconditioning (including
outfitting and equipping incident to the foregoing), the acquisi-
tion, procurement, operation, maintenance, preservation, sale,
lease, or charter of any merchant vessel. or of any shipyard, ship
site, terminal, pier, dock, warehouse, or other installation necessary
or appropriate for the carrying out of any program of such
Commission authorized by law, or nonadministrative activities
incidental thereto: Provided, That the United States Maritime
Commission shall to the maximum extent that it may deem
practicable, consistent with the fulfillment of the purposes of
such programs and the effective and efficient conduct of such
activities, coordinate its operations with the requirements of this
t, and the policies and regulations prescribed pursuant thereto;
17) Central Intelligence Agency;
18) except as provided in subsections (a) and (b) hereof, any
-other law relating to the procurement, utilization, or disposal of
property : Provided, That, subject to, and within the scope of
authority conferred on the Administrator by other provisions of
this Act, he is authorized to prescribe regulations to govern any
Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
 Approved For Release 2000/08/17 : CIA-RDP59-00224A000100190005-0
[Pos. Lew 152.1 30
procurement, utili:.ation, or disposal of property under any such
law, whenever but only to the extent he deems such action. neces-
sary to effectuate the provisions of title II; nor
(19) for such period of time as the President may specify, any
other authority of any executive agency which the President deter-
mines within one year after the effective (late of this Act should,
in the public interest, stand unimpaired by this Act.
(c) Section 3709, Revised Statutes, as amenc`led (41 17. S. C. 5), is
amended by striking oi:.t "$100" wherever it appears therein and insert-
ing in lieu thereof "$500",
SEC. 503. (a) There are hereby authorized to be appropriated such
sums as may be necessary to carry out the provisions. of this Act.
(b) When authorized by the .Director of the Bureau of the Budget,
any Federal agency may use, for the disposition of property under this
Act, and for its care and handling pending such disposition, any funds
heretofore or hereafter appropriated, allocated, or available to it for
purposes similar to those provided for in sections 301, 202, 203, and
205 of this Act.
SEC. 504. If any provision of this Act, or the application thereof to
any person or circumstances, is held invalid, the remainder of this
Net, and the application of such provision to other persons or circum-
tances, shall not be affected thereby.
SEC. 505. This Act shall become effective on July 1, 1949, except that
the provisions of section 502 (a) (2) (repealing prier law relating to
the disposition of the affairs of the War Assets Administration) shall
become effective on June 30, 1949.
Approved June 30, 1949.
Approved For Release 2000/08/17 : CIA-FDP59-00224A000100190005-0