FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-00433A000100160003-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 35
• Document Creation Date: December 12, 2016
• Document Release Date: October 5, 2001
• Sequence Number: 3
• Publication Date: June 28, 1949
• Content Type: REPORT

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'81ST CONGRESS HOUSE OF REPRESENTATIVES I REPORT
1st Session No. 935
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES
ACT OF 1949
Tr. DAWSON, from the committee of conference, submitted the
following
CONFERENCE REPORT
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the Senate to the bill (H. R. 4754) to
simplify the procurement, utilization, and disposal of Government
property, to reorganize certain agencies of the Government, and for
other purposes, having met, after full and free conference, have agreed
to recommend and do recommend to their respective Houses as follows:
That the House recede from its disagreement to the amendment of
the Senate and agree to the same with an amendment as follows:
In lieu of the matter proposed to be inserted by the Senate amend-
ment insert the following :
That this Act may be cited as the "Federal Property and Administrative
Services Act of 1949".
TABLE OF CONTENTS
Sec. tip. Declaration of policy.
Sec. 3. Definitions.
TiTr.r, I-ORGANIZATION
Sec. 101. General Services Administration.
Sec. 102. Transfer of a fairs of Bureau of Federal Supply.
Sec. 103. Transfer of a fairs 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.
Sec. 108. Status of transferred employees.
.Sec. 109. General supply fund.
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Tertc 11-PROPF,ETY MANAGEMENT
Sec. 201. Procurement, warehousing, and related activities.
Sec. 202. Properly utilization.
Sec. 203. Disposal of surplus property.
Sec. 204. Proceeds from transfer and disposition of properly.
Sec. 205. Policies, regulations, and delegations.
Sec. 206. Surreys, standardization, and cataloging.
See. 207. Applicability of antitrust laws.
Sec. 208. Employment of personnel.
See. 209. Cis it remedies and penalties.
Sec. '10. Reports to Congress.
TiTLe III-1'RO" eIeAq F. yr PRoCEUt'RS
Ser. 301. Declaration of purpose.
Sex, 302. Application and procurement methods.
See. 303. Advertising requirements.
Sec- 304. Requirements of negotiated contracts.
Seep. 305. Advance payments.
Sec. 306. Waiver of liquidated damages.
Scc. 307. Aduainistratave determinations and delegations.
Sec. 308. Statutes continued in effect,
Sec. 309. Definitions.
Sec. 310. Statutes not applicable.
TITLE 11'--b'OReiUv E.VCES?S PROPERTY
Sec. 401. Disposal of foreign excess property.
Sec. 402. Methods and terms of disposal.
Sec. 403. Proceeds, foreign currencies.
Sec. 404. Miscellaneous provisions.
T-TLE 1'-Gr.vfRAL PROVISIONS
Sec. 501. Applicability of existing procedures.
Sec. 502. Itepeul and saving provisions.
Sec. 503. Authorization for appropriations.
Sec. 504. Separability.
Sec, 505. Effective date.
DECLARATION OF POLICY
SEC. 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 nonpersonal services,
urcrluding related functions such a contractinrg, inspection, storage, issue,
specifications, property identification, and classification, transportation
and traffic management, management of public utility .services, repairing
and converting, establis-h-scent of inventory lever, establishment of forms
and procedures, and representation before Federal and State regulatory
bodies; (b) the utilizationaf ac ilable property; (c) the disposal of surplus
property; and (d) records management.
SEC. a. A n.wd in this Ad?
(a) The term "executive agency" means any executive department or
independent establi,,hncen! in the executive branch of the Government, in-
clualing any wholly owned Government corporation.
(b) The term "Federal agency" means any executive agency or any
establishment in the legislative or judicial branch of the Government (ex-
cept the Senate and the lInuse of Representatives).
(c) The terra "Adrn-;n istrator" means the Administrator of General
Services provided for in title I hereof.
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(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 sub-
marines.
(e) The term "excess property" means any property under the control
of any Federal agency 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, Hawaii, Alaska, Puerto
Rico, and the Virgin Islands.
(q) 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 services,
other than personal and professional services, as the Administrator shall
designate.
(lc) 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 under 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 thereunder or of the termination of such contract
(or subcontract thereunder), prior to completion of the work, for the con-
venience or at the option of the Government.
SEC. 101. (a) There is hereby established an agency in the executive
branch of the Government which shall be known as the General Services
Administration.
(b) There shall be at the head of the General Services Administration
an Administrator of General Services who shall be appointed by the Pres-
ident 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 Depecty
Administrator of General Services who shall be appointed by the Admin-
istrator of General Services. The Deputy Administrator shall perform
such functions as the Administrator shall designate and shall be Acting
'Administrator of General Services during the absence or disability of the
Administrator and, unless the President shall designate another officer
of the Government, in the event of a vacancy in the office of Administrator.
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} FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
(d) Pendirr!) 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 prorisions of this Act as the President shall
designate and such officer while so serving shall receive the salary fixed
for the Administrator.
(e) Pending the effective date of other provisions of law fixing the rates
of compensation of the Administrator, the Deputy Administrator and
of the heads and assistant heads of the principal organizational units
of the General Services Administration, and taking into consideration.
pror''.ions of law governing the compensation of officers having com-
parable responsibilities and duties, the President shall fix for each of
!hem a rate of compensation which he shall deem to be commensurate
"mile thr responsibilities and duties of the re.spectiee offices inrolved.
Th.r.V SFER OF AFFAIRS OF BUREAU OF FEDERAL SUPPLY
.Sic. ltc'?. fa) The functions of (1) the Bureau of Federal Supply in
the Delia, tinent of the 1 reas?rry, (2) the Director of the Bureau of Federal
';apply, ' ) the personnel of such Bureau, and (4) the Secretary of the
Treason!. relating to the Bureau of Federal Supply, are hereby trans-
ferred to the :ldirrinistrator. The records, property, personnel, oblirp.r-
tion,s. and ronrrrritrnents of the Bureau of Federal Supply, together v-ith
xirch etlditiona1 records, property, and personnel of the Department of
the Treasury as the I)irertcr of the Bruea.u of the Budget shall determine
to relate primarily to functions transferred by this section or vested' in
the ;ldnriniatrrrtor by titles II, III, and 1', of this Art, are hereby trans-
ferred to the General Services Administration. The Bureau of Federal
Supply and the cjfice of Director of the Bureau of Federal Supply are
hereby abolished.
(b) The functions of the Director of Contract Settlement. and of the
!)ffec of Contract Settlement, transferred to the Secretory of the Treasury
by Reorganization Plan Numbered 1 of 1947, are transferred to the Ad-
arinistrator and shall be performed by him or, subject to his direction and
control, by surly officers and agencies of the General Services Administra-
tion as he may designate. The Contract Settlement Act Advisory Board
created by section 5 of the Contract Settlement Act of 19,14 (58 Stat. 6,119)
and the Appeal Board established under section. 13 (d) of that Act are
transferred from the Department of the Treasury to the General Services
Administration, but the.functiores of these Boards shall be performed by
them, respectively, under conditions and limitations prescribed by law.
There shall also be Irani ferred to the General Services Administration
such records. property, personnel, obligations, commitments, and unex-
pended balances (available or to be made available) of appropriations,
allocations, and other funds of the Treasury Department 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 notwit/rvtanding, 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, lien/yin- ten days after the effective (late 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
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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
shall determine.
SEC. 108. (a) All functions of the Federal Works Agency and of all
agencies thereof, together with all functions of the Federal Works Admin-
istrator, of the Commissioner of Public Buildings, and of the Commis-
sioner of Public Roads, are hereby transferred to the Administrator 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 Administrator,
the office of Commissioner of Public Buildings, and the office of Assistant
Federal Works Administrator.
SEC. 104. (a) The National Archives Establishment and its, functions,
records, property, personnel, obligations, and commitments are hereby
transferred to the General Services Administration. There are trans-
ferred to the Administrator (1) the functions of the Archivist of the United
States, except that the Archivist shall continue to be a member or chair-
man, as the ease 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 Administration
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 Commission, estab-
lished by the Act of June 19, 1981 (18 Stat. 1122), (2) the National
Archives Trust Fund Board, established by the Act of July 9, 1941
(55 Stat. 581), (3) the Board of Trustees of the Franklin D. Roosevelt
Library, established by the Joint Resolution of July 18, 1939 (53 Stat.
1062), and (1) 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 Govern-
ment 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 management practices and con-
trols 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.
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6 FEDERAL PROPERTY AND ADM USTRATIVE SERVICES ACT
TRANSFER FOR LIQUIDATION OF THE AFFAIRS OF THE WAR ASSETS
ADMINISTRATION
SEC. 105. The functions, records, property, personnel, obligations,
and commitments of the I 'ar Assets Administration are hereby transferred
to the General Services Administration. The functions of the War
Assets Administrator are hereby transferred to the Administrator of
General Services. The War Assets Administration, the office of the
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 Surplus
Property Act of 1944, as amended, may be continued in such positions
or may be apppointed to similar positions for such time as the Adminis-
trator may determine.
SEC. 106. The Adrrrinistrator 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 General
Services Administration. The Administrator is hereby authorized to
transfer the funds necessary to accomplish said functions and report such
transfers of funds to the Director of the Bureau of the Budget.
SEC. 107. (a) All unexpended balances of appropriations, allocations,
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, and so much of the
other unexpended balances of appropriations, allocations, or other unds
of the Department of the Treasury, a>uilablc or to be made available, as
the Director of the Bureau of the Budget shall determine to relate primarily
to functions transferred to or tested 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.
(b) W Shen other functions are transferred to the General-Services Adminis-
tration ,from any Federal agency, under section 201 (a) (2) or (3), or
otherwise under this Act, there shall be transferred such records, property,
personnel, appropriations, allocations, aother funds of such agency
to the General Services Administration as the hirector of the Bureau of
the Budget shall determine to relate primarily to the functions so
transferred.
STATUS OF TRANSFERRED EMPLOYEES
SEC. 108. Subject to other provisions of this title relating to personnel,
employees transferred by the provisions of this title shall be deemed to be
employees of the General Services Adniinistraiion and their reappointment
shall not be required by reason of the enactment Of this Act.
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FEDERAL PROPERTY AND ADMINISTRA S
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 supply 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 transferred 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 commit-
ments of the general supply fund created by such Act of February 27,
1929. The capital of the General 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 direction 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 discharge 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 determined
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 accord-
ance with law and regulations applicable on the date of enactment of this
Act to prices fixed by the Director of the Bureau of Federal 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 Ad-
ministrator with the approval of the Director of the Bureau of the Budget
to be indirect or overhead costs. Requisitioning 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 requisition-
ing agency on the basis of itemized invoices submitted by the Administra-
tor and receiving reports evidencing the delivery to the requisitioning
agency of such supplies or services: Provided, That in any case where
payment shall not have been made by the requisitioning agency within
forty-five days after the date of billing by the Administrator, reimburse-
ment 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 reimbursements,
advances of funds, and refunds or recoveries relating to supplies 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 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
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
S11/1)/y Fond without being covered info the Treasury of the United
Staffs; and such special deposit arcou.nt may be charged with payments
property chargeable to the General Supply Fund.
(e) The Comptroller General of the 1 'niter Slates shall make an annual
audit of the General Supply F'unul as of June 30, and there shall be covered
into the United States Treasury a? 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 result, of the audit, together with such, recommendations as he may
have regarding the status and operations 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 procure-
ment of supplies and nonpersonal scrrices authorized to be acquired by
mixed-oumers/tip Government corporations, or by the municipal govern-
ment of the District of Columbia, or by a requisitioning non-Federal
agency when the function of a Federal agency authorised to procure for it is
transferred to the General Services Administration: Provided, That the
prices charged by the Adlnietistrator 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.
PROCURF.MF T, WAREHOUSING, AND RELATED ACTIVITIES
Sic. 201. (a) The Administrator shall, in respect of executive agencies,
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 aetirities of the agencies concerned---
(1) prescribe policies and methods of procurement and supply of
personal property and non personal services, including related func-
tions such. as contracting, inspection. storage, issue, property identi-
fication and classification. transportation and traffic management,
management of public utility services, and repairing and converting;
and
(?) operate, and, after consultation with the executive agencies
affected, consolidate, take over, or arrange for the operation. by any
executive agency of warehouses, supply centers, repair shops, fuel
yards, and other similar facilities; and
(8) procure and supply personal property and non personal
services for the use of executive euji ncies in the pro Ier discharge of
their responsibilities, and perform .functions related to procurement
and supply such as those Tncntiwned above in subparagraph (1):
Provide,l, That contracts for public utility services may be made for
periods not exceeding ten years: and
(4) with respect to transportati,tr, and other public utility services
.for the use of executive agencies. represent such agencies in negotia-
tions with carriers and other public utilities and in proceedings
involving carriers or other public utilities before Federal and State
regulatory bodies;
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Provided, That the Secretary of Defense may from time to time, and unless
the President shall otherwise direct, exempt the National Military
Establishment from action taken or which may be taken by the Adminis-
trator 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 Government
Corporation Control Act), or the District of Columbia, or the Senate, or
the -louse 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.
PROPERTY UTILIZATION
SEC. 202. (a) In order to minimize expenditures for property, the Ad-
ministrator 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 Administrator,
(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 departments
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 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, 1911x,
to be without reimbursement or transfer of funds.
(f) The Director of the Bureau of the Budget shall prescribe regulations
providing for the reporting to said Director by executive agencies of such
reassignments or transfers of property between activities financed by differ-
ent appropriations 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 said Director r4ay determine.
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
(g) Whenever the Administrator determines that the temporary assign-
ment or reassignment of any space in excess real property to any Federal
agency for office, storage, or related facilities would be more advantageous
than the permanent transfer of such property, he may make such assign-
ment or reassignment for such period of time as he shall determine and
obtain, in the absence of appropriation available to him therefor, appro-
priate reimbursement from the using agency for the expense of main-
taining such space.
(h) The Administrator may authorize the abandonment, destruction,
or donation to public 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.
SEc. 203. (a) Except as otherwise provided in this section, the Admin-
istrator shall have supervision and direction. over the disposition of surplus
property. Such property shall be disposed 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 handling of surplus property, pending its disposition,
and the disposal of surplus property, may be performed by the General
Services Administration or, when so determined by the Administrator, by
the executive agency in possession thereof or by any other executive agency
consenting thereto.
(c) Any executive agency designated or authorized by the Administrator
to dispose of surplus pro e;ty may do so by sale, exchange, lease, permit,
or transfer, 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 concerns title or
other interest of any bona fide grantee or transferee for value and without
notice of lack of such compliance.
(e) Unless the Administrator shall determine that disposal by adver-
tising will in a given ease better protect the public interest, surplus property
disposals may be made without regard to any provision of 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 subcontractor 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 processed
from agricultural commodities, 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 surplus
.food processed from agricultural commodities, from being dumped on the
market in a disorderly manner and disrupting the market prices for agri-
cultural commodities.
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FEDERAL PROPER I
(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 com-
modities, foods, or cotton or woolen goods to be disposed of. Receipts
resulting from disposal by the Department of Agriculture under this
subsection shall be deposited pursuant to any authority available to the
Secretary of Agriculture, except that net proceeds of any sale of surplus
property so transferred shall be credited pursuant to section 201, (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 States Maritime Commission shall dispose of surplus
vessels of one thousand five hundred gross tons or more which the Commis-
sion determines to be merchant vessels or capable of conversion to merchant
use, and such vessels shall be disposed of only in accordance with the provi-
sions 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 Administrator
is authorized in his discretion to donate for educational purposes 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 educa-
tional 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 universities 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 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 Establishment, the Secretary of Defense shall determine whether
such property is usable and necessary 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 and necessary
for such purposes, he shall allocate it for transfer by the Administrator
to such educational 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 such regulations as he may prescribe, the Administrator is
authorized, in his discretion, to assign to the Federal Security Adminis-
trator for disposal such surplus real property, including buildings,
xt ures, and equipment situated thereon, as is recommended by the
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Federal Security Adininistralor as being needed for school, classroom, or
other educational use, or for use in the protectioit of public health, including
research.
(A) Subject to tine disapproral of the Administrator within thirty
flay, after notice to him by the Federal Security Administrator of a
proposed transfer of properly for school, classroom, or other educa-
tional use, the kederal Security ldn?irristrator, through such officers
or em ployee.s of lice Federal Security Agency as lie may designate,
may sell or /ruse such real property, including buildings, fixtures,
and equipment siluated thereon, for educational purposes to the
States and their political subdivisions and instrumentalities, and
tax-supported educational institutions, and to other nonprofit
educational institutions which have been held exempt from taxation
under 'tee/ion 101 (6) of the Internal Revenue Code.
(11) Subject to the disapproval of the Administrator u=ithin
thirty days after notice to lairn by the Federal S'curityAdministrator
of a proposed transfer of property for public-health use, the Federal
Security A,lntI'll istrator, through such officers or employees of the
federal Security . lgency as he may designate, may sell or lease such
real property for public-health purposes, including research, to
the States and their political subdir is-ions and instrumentalities,
and to leer-supported medical instilutiorrs, and to hospitals or other
similar institutions not operated for profit which have been held
cyan pl .from taxation under section 101 (6) of the Internal Revenue
lode.
(C) In fixing the sale or lease value of property to be disposed of
under subparagraph (A) and subparagraph (B) of this paragraph,
the Federal Security .ldministrator shall take into consideration any
benefit wh ieh has accrued or may accrue to the United Slates from the
use of such property/ by any such State, political subdivision, in-
strnrnentality, 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 days
other notice to him of any action to be taken under this subsection-
(A) The Federal Security Administrator, through such officers or
e.mnployces of the Federal Security Agency as he may designate, in the
case of property transferred pursuant to the Surplus Property/ Act of
194.1, as amended, and pursuant for this Act, to States, political sub-
divisions, and instrumentalities thereof, and tax-supported and other
nonprofit educational institutions for school, classroom, or other
edurutionol use;
(13) the Federal Security Achni.rristrator, 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 194.?, 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 fur profit, for use in the protection of public health (-including
research);
(U) the Secretary of the Interior, in the case of property trans-
ferred pursuant to the Surplus Property Act of 1041, as amended,
and pursuant to this Act, to States, political subdivisions, and
instrurrrentalilus thereof, and municipalities for use as a public park,
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES A
public recreational area, or historic monument for the benefit of the
public; or
(D) the Secretary of Defense, in the case of property transferred
pursuant to the Surplus Property Act of 194 , as amended, to
States, political subdivisions, and tax-supported instrumentalities
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, conditions,
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, reser-
vations, and restrictions contained in, and (II) convey, quitclaim,
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 he 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 accom-
plishment 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 subject 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 abandoned
and other unclaimed property on premises owned or leased by the Govern-
ment, to determine when title thereto vested in the United States, and to
utilize, transfer or otherwise dispose of such property. Former owners of
such property upon proper claim filed within three years, from the date of
vesting 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 trans-
ferred, the fair value therefor as of the time title was vested in the United
States as determined by the Administrator, less in either case the costs
incident to the care and handling of such property as determined by the
Administrator.
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 subsections (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 other revenue or receipts, then the net proceeds of the disposition or
transfer shall be credited to the reimbursable fund or appropriation or
paid 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 determined the property to be excess shall
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deem it uneconomical or impractical to ascertain the amount of net
proceeds. As used in this subsection, the term "net proceeds of the dis-
position 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 dis-
position is rescinded or does not become final, or payments for breach
of any warranty, and (L) may withdraw therefrom amounts so to be
refunded or paid, witltout regard to the origin of the funds withdrawn.
(d) here any contract entered into by an executive agency or any
subcontract under such contract authorises the proceeds of any sale of
property in the custodrt of the contractor or subcontractor to he credited
to the price or cost of the work capered by .such contract or subcontract,
the prover=ds if any such. sale shall be credited in accordance with the
contract ur subcontract.
(e) Any executive agency entitled to receive cash under any contract
covering the lease, sale or ot.icr disposition of surplus proper?tat may in
its discretion accept, in lieu of cash, any property determined bet the
lljunitious Board to be straterlice or critical mate] pal at the prevailing
market price ticereuf at the time the cash payment or payments Levine
or become due.
(f) Where credit has been extended in connection with any disposition
of surplus property under this title or by War Assets Administration
(or its predecessor agencies) under the Surplus Property Act of 1944, or
where such disposition has been by lease or perrnct, the Administrator
shall adrnin-iste-r and manage such credit, lease, or permit, 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. ?05. (a) The President may prescribe such policies and directives,
not inconsistent with the proviswns 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 require-
ments of the executive agencies shall prescribe principles and standards
of accounting fur property, cooperate with the Administrator and with
the executive agencies in the development of property accounting systems,
and approve such systems when deemed to be adequate and in Conformity
with prescribed principles and standards. From time to time the Gen-
eral Accounting Office shall examine such property accounting systems
as are established by the executive agencies to determine the extent of
compliance with prescribed principles and standards and approved sys-
tems. and the Comptroller General shall report to the Congress any.failure
to comply up%th 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 Acct, and the head of each
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executive agency shall cause to be issued such orders and directives as
such head deems necessary to carry out such regulations.
(d) The Administrator is authorized to delegate and to authorize suc-
cessive redelegation of any authority transferred to or vested in him by
this Act (except for the authority to issue regulations on matters of policy
having application to executive agencies, the authority contained in sec-
tion 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 Adman2s-
trator may (1) direct the undertaking of its performance by the General
Services Administration or by any constituent organization therein which
he may designate or establish; or (2) designate and authorize any execu-
tive agency to perform such function for itself; or (3) designate and author-
ize any other executive agency to perform such function; or (4) provide for
such performance by any combination of the foregoing methods. Any
designation or assignment 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 Admin-
istration and constituent organizations thereof) is authorized and directed
by the Administrator to carry out any function under this Act, the Admin-
istrator 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 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, 1946 (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.
SURVEYS, STANDARDIZATION AND CATALOGING
SEC. 206, (a) As he may deem necessary for the effectuation of his
functions under this title, and after adequate advance notice to the ex-
ecutive agencies affected. and with due regard to the requirements of the
National Military E'stablishme'nt as determined by the Secretary of De-
fense, the Administrator is authorized (1) to make surveys of Government
property and property management practices and obtain reports thereon
from executive agencies; (.) to cooperate with executive agencies in the
establishment of reasonable inventor?, 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 may be appropriate to
identify and classif?.J personal property under the control cf Federal
agencies: Provided, That the Administrator and the Secretary of Defense
shall coordinate the cataloging activities of the General Services Adminis-
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
tration anel the National llilettrrv Astablishmcnt so as to avoid unneces-
sary duplicat;on: and (41) to p-esrribe standardised forms and pro-
erdures. cia-pt such as the ('orrrptrollcr General ix authorized by lair to
prescribe, and standard purrha.xr .specifications.
(b) Isaelc 1'crleral agency sic-ill utilc-e such unif'rrm Federal supply
cctalog system and standard purrlnese spcr;fzcaturnx. except as the Ad-
rnin.istrator, lakinu into consideration eeffrcienry. eronomy, and other
interests of the Gorernrrrent, skull otirerwese pror;dr.
(e) The General Accounting Office shall audit all types of property
accounts and transactions at such times and in such manner as de-
termined by flee t ?omptroller 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-
nTrraed or controlled property based upon generally accepted principle's
of aurlitr:ng.
Si-.-r. 207. II henerer any executive agency shall begin negotiations. for
the disposition to private interests of a plant or plants, or other property,
which cost the Gorrrnanent $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 disposal and the
probable terms or coalitions thereof. Within a reasonable time, in no
ererrt to exceed sixty rings after receiving such -notification, the Attorney
General shall adr'ise 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.
f, porn the request of the Attorney General, I/ce Administrator or interested
executive agency shall furnish 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 adeiee 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 --let. As used in this section, the terra "antitrust laws"
includes the Act of July 2, 1890 (ch. 647, 26 Slut. 209), as amended;
the Act of October 15, 1914 (ch. 323, 38 Stat. 730), as amended; the
Federal Trade Commission ,let (38 Slat. 717), as amended; and sections
73 and 74 of the Act of August 27, 1894 (28 Slat. .570), as amended.
SEc. 208. (a) The -Iduecrcistrator is authorized, subject to the civil-
serrice and classification laws, to appoint and ,fir the compensation of
such personnel as may be necessary to carry out the provisions of titles
I, IT, III, and l ` of this Ad .
(b) To such exttcrt ass he finds necessary to carry out the provisions of
titles I, It. III, and V Of of !leis Act, the Administrator is hereby authorized
to procure the trrnporary (root in excess of one year) or intermittent
sere res of experts or consultants or organizations 1-kercuf, including'
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stenographic reporting services, by contract or appointment, and in such
cases such service shall be without regard to the civil-service and classifica-
tion laws, and, except in the case of stenographic reporting services by
organizations, without regard to section 3709, Revised Statutes, as
amended (L1 U. S. C. 5).
(c) Notwithstanding the provisions of section 1222 of the Revised
Statutes (10 0. S. C. 576) or of any other provision of law, the Adminis-
trator in carrying out the functions imposed upon him by 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 (2) be accountable
for the collection of any purchase price for such property which is deter-
mined to be uncollectible by the Federal agency responsible 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
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 bene-
fits from the United States or any Federal agency in connection with the
procurement, transfer, or disposition of property hereunder-
(1) shall pay to the United States the sum of $2,000 for each such
act, and double the amount of any damage which the United States
may have sustained by reason thereof, together with the cost of suit; or
(2) shall,' 2f the United States shall so elect, pay to the United
States, ,as liquidated damages, a sum equal to twice the consideration
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 Federalagency,
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,
money, or other consideration given to the United States or any
Federal agency for such money or property, as the case may be.
(c) The several district courts of the United States, the District Court
of the United States for the District of Columbia, and the several district
courts 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 persons 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 as 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.
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Sec. 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 rceonrimendations for amendments to this Act as he
may deem appropriate as the result, of the administration of such func-
tions. at which Time he slalll also cite Me laws becoming obsolete by reason
of passage or operation of the pros isions of this Act.
SEr. 301- T ht purpose of this title is to facilitate the procurement of
supplies and services:
SEC. 302. (a) The provisions of this title shall be applicable to pur-
chases and contracts. for supplies or services made--
(1) by the General ServicesAdministrationfor the use of such agency
or otherwise; and
(2) by any other executive agency (except any agency named in
section 2 (a) of the Awned Services Procurement Act of 1047),
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 pur-
suant 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 adzvanlagcuus to the Gorerntnent in, terms of economy,
efciency, 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 proportion of
the total pure/eases and contracts for supplies and services.for the Govern-
ment shah be placed is*ith- small-business concerns. IVheneccr 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. fur a period of at least fifteen
days, wherei?er 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 purchases and
contracts may b( 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 Iniblic exigency will not admit of the delay incident to
advertising;
(3) the aggregate amount involved does not exceed $1,000: Pro-
videdl, That no agency other than the General Services Administration
shall make any purchase qf, or contract for, supplies or services in
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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 manu-
facture or furnishing of supplies for experimentation, development,
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 date of the
last such report, the amount of the contract, and, with due considera-
tion 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 tech-
nical equipment, and as to which he determines that the procurement
thereof without advertising is necessary in special situations or in
particular localities in order to assure standardization of equipment
and interchangeability of parts and that such standardization and
interchangeability is necessary in the public interest; .
(13) for supplies or services as to which the agency head deter-
mines that bid 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 intention to negotiate and reasonable oppor-
tunity to negotiate shall have been given by the agency 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 opinion of the agency head bids received after advertising
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 erection,
repair, or furnishing of any public building or public improvement, 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 ad-
vertising as required by section 303, unless such contract is to be performed
outside the continental United States or unless negotiation of such contract
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is authorized by the provisions of paragraph (1), (2), (3), (9), (10),
(11), or (13) of subsection (c) of this section.
SEC. 30.3. W& never rrdrerfirinu is reryuired -
(a) The advertisement for bids shall be made a sufficient time previous
to the purchase or contract, and sprrintcations and invitations for bids
shall permit such .full and. frce competition as is consistent with the procure-
ment 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 promptness by
written notice to that responsible bidder whose bid, conforming to the
invitation for bids, will be most advantageous to the Government, price and
other factors considered: Provided, That all bids may be rejected when
the agency head determines that it L v in the frublic interest so to do.
titr_, 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
(e) 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 agreement or under-
standing for a commission, percentage, brokerage, or contingent fee,
excepting bona Jude employees or bona. Ale established commercial or
selling agencies maintained by the contractor for the purpose of securing
business, 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 or consideration the full
amount of such commission, percentage, brokerage, or contingent fee.
(b) The cost-plus-a-percentage-of-cost system of contracting shall not be
used, and in the case of acost-plats-afxed fee contract the fee shall not
exceed 10 per centunr 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 centunn of such esti-
mated cost is authorized in any such contract for experimental, develop-
mental, or research work and that a fee inclusive of the contractor's costs
and not in excess of 6 per centunr of the estimated 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 nr engineering services relating to any public works or utility
pre j('ct). Veit/ccr a cost rear a cost plus a (fixed-fee contract nor an in-
centire-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 uiit/tout the use of a cost or cost-plus-a fi cd fee contract or an
incenttive-type contract. All cost and cost-plus-a-fixedfee contracts shall
provide for advance notification by the curt-tractor 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
+i.ther $25,000 or 5 per ccntrcm of the total estimated cost of the prime
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVI E
contract; and a procuring agency, 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 perform-
fee contract.
ance of a cost or cost-plus-a-fixed-
SEC. 305. (a) The agency head may make advance payments under
negotiated contracts heretofore or hereafter executed in any amount 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 ad-
vance payments is in the public interest or in the interest of the national
defense and is necessary and appropriate in order to procure required
supplies or services under the contract.
(b) The terms governing advance payments may include as security
provision for, and upon inclusion of such provision 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 deposited and upon such of the
material and other property acquired for performance of the contract as
the parties shall agree.
SFC. 306. Whenever any contract made on behalf of the Government
by the agency head or by officers authorized by him so to do includes a
provision for liquidated damages for delay, the Comptroller General on
the recommendation of the agency head is authorized and empowered to
remit the whole or any part of such damages as in his discretion may be
just and equitable.
SEC. 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 individual purchases and contracts or with respect to classes of
purchases or contracts, and shall be final. Except as provided in sub-
section (b) of this section, the agency head is authorized to delegate his
powers 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 procurement 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 delegations and
determinations specified in section 302 (a) shall be delegable only to the
Deputy Administrator or to the chief official of any principal organiza-
tional 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 301. or by section 305 (a) shall
be based upon written findings made by the official making such deter-
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mination, which findings shall be final and shall be available within the
agency for a period of at least six years following the date of the determina-
tion. 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 pursuant
to the provisions of section 302 (c), except in a case covered by paragraphs
M. (3), (4t, (5), or (6) thereof, the data with respect to the negotiation
shall be p restrved in the files of the agency fora period of six years fullow-
ing Penal payment on such contract.
Sic. 308. No purchase or contract shall be exempt from the Act of
June 30, 1936 (49 Stat. 2036, as amended; 41 U. S. 0. 35 to 45), nr from
the Act of March 3, 1931 (46 Stat. 1494, as amended; 40 U. S. C. 276a
to 276a-G), solely by reason of having been entered into pursuant 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.
Sic. 309. As used in this title---
(a) The tern, "agency head" shall mean thr head or any assistant head
of any executi_ce agency, and may at the option of the Administrator
include the chief official of any principal organizational unit of the
General Services Aaministration.
(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 char-
acter, 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.
SFc. 310. The: following provisions of law shall not apply to the pro-
curement of supplies or seroices (1) by the Ceneral Services Admin-istra-
tion., 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).
TI17,I{; IT'- -FOREIGN EXCESS PROPERTY
Sic. 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 disposition of such
property, conform to the foreign, policy of the United States; (b) the
Secretary of State shall have the authority to use foreign currencies and
credits acquired by the United States under section 402 (b) of this Act
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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 in effect on the effective date of
this Act; (c) any, foreign 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 time be established by the Secretary
of the Treasury and, if and when reduced to United States currency, shall
be covered into the Treasury as miscellaneous receipts; and (d) the Depart-
ment of State shall, except to such extent as the President shall otherwise
determine, continue to perform other functions with respect to agreements
for the disposal of foreign excess property in effect on the effective date
of this Act.
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 importation 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 domestic shortages or other-
wise be beneficial to the economy of this country, or (b) for foreign cur-
rencies 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 advantageous to the Government. The
head of each executive agency responsible 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 may authorize the abandon-
ment, destruction, or donation of foreign excess property under his con-
trol 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 foreign
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 be established by the Secretary of the Treasury, and (b) shall, if in
United States currency, or when any proceeds in foreign currencies. or
credits shall be reduced to United States currency, be covered into the
Treasury as miscellaneous receipts: Provided, That the provisions of
section 201 (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: And provided further,
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That any executive agency dispossing of-foreign excess 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 neces-
sary 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 re1lard to the origin. of the funds withdrawn.
SEC. 404. (a) Time President may prescribe such policies, not ineon-
sistent with the provi_sion.s of this title, as he skull 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 pruv'i.sions of this title may be delegated, and successive
redelegat ion thcreuf may be autlu,rized, by such head to any official in
such agency or to the head of airy other cxceutire agency.
(c) The head of vetch executive agency responsible for the disposal of
foreign excess property hereunder may, as May be necessary to carry
out his functions water this title, (1) subject to the civil-service and classi-
fication laws, appoint a'md fix the compensation of personnel, and (2)
without regard to tlrc civil-service and cla.i/lcat'ion laws, appoint and
fix the compensation of personnel outside the continental limits of the
l United States.
((I) The head of each executive agency responsible for the disposal of
foreign excess property under this title dealt submit a report to Congress
in January of each year or at such other three or limes as he may deem
desirable relative to its activities under this title., together with any appro-
priate recommendations.
(e) There 1411 be transferred froin the Departtncnt of Slate to each
other executive agency affected by this title such records, property. person-
nel, obligations, conrrrritnte7mts, and urceperided balances of appropria-
at ons, allocations, and other funds, available or to be made available, as
the Director of the Bureau of the Budget shall determine to relate to,func-
tions of such agency under this title which have heretofore been adrninis-
tcred by the Departrrmermt of Stale.
SEC. 501. All poli(-ies, procedures, and directives prescribed-
,a.) by either the jlireetor, Bureau of Federal Supply, or the
.Secretary of the Treasury and relating to any, function transferred
to nr vested in the dminmstrator, by the provisions of this Act;
(b) by any officer of tlcc Gorcrnrnent under time authority of the
Surplus Property Act of 11144, as ainerided, or under other authority
with respect to surplus property or foreign excess property;
(c) by or under authority of the 1 l decal Works Administrator
or the head of any constituent agency of the federal Works Agency;
ain!
(d) by the archivist of the United States or any other officer or
body whose functions arc transferred by title I of this Act,
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in effect upon the effective date of this Act and not inconsistent herewith,
shall remain in full force and effect unless and until superseded, or except
as they may be amended, under the authority of this Act or under other
appropriate authority. .
SEC. 502. (a) There are hereby repealed-
(1) the Surplus Property Act of 1944, as amended (except sections
13 (d), 13 (g), 13 (h), 28, and 32 (b) (2)), and sections 501 and 502
of Reorganization Plan Numbered 1 of 1947: Provided, 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 12 o'clock noon (eastern standard time),
December 31, 1949;
(2) that portion of the Act entitled "An Act making supplemental
appropriations for the Executive Office and sundry independent
executive bureaus, boards, commissions, and offices, for the fiscal
year ending June 30, 1949, and for other purposes", approved
June 30, 1948 (Public Law 862, Eightieth Congress), as amended,
appearing 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 U. S. C. 546c);
(5) section 5 of the Act of July 11, 1919 (41 Slat. 67; 40 U. S. C.
311);
(6) the first and second provisos contained in the fifth paragraph
under the heading "Division of Supply" in section 1 of the Act of
December 20, 1928 (45 Stat. 1030; 40 U. S. C. 311 a);
(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-1);
(9) the Act of April 15, 1937 (50 Stat. 64; 5 U. S. C. 118d);
(10) the second proviso contained in the paragraph of the Act of
August 10, 1912 (37 Stat. 296; 5 U. S. C. 545), headed "Contingent
expenses, Department of Agriculture";
(.11) t'ie second proviso contained in the twentieth paragraph of
section 1 of the Act of March 2, 1917 (39 Stat. 973; 5 U. S. C. 1,9111);
(1.2) the twenty-sixth paragraph under the headin) "National
Parks" of the Act of January 24, 1923 (42 Stat. 12.15 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.
141; 5 U. S. C. 546) ;
(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);
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2f FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
(15) the sccomul proviso contained in the second paragraph under
the headint `' Clothing and camp and garrison equipage" of section 1
of the Act of August 1916 (39 Stat. 635; 10 VS. C. 1271);
(16) the Act of lfay 11. 1931) (53 ,Sat. 739; 10 1'. S. C. 1271x);
(17) t.2e,fifth paragraph under the kcadinty "Oice of the Chief
.Ri.Inal Offer" of the Act. -.f May Le, 1'117 (40 Stat. 43, as amended;
10 U. S. C. 1272);
(18) the third proviso contained in the second paragraph under
the heading "Of we of the Chief Signal Officer" of the Act of March
4, 1915 (3S Stat. 1064i 10 U. S. C. 1273);
(19) the fourteenth paragraph under the heading "Smithsonian
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 hos-
pital./or the insane" of section 1 of the Act of August 1, 1914 (38
Stat. 649; 24 lT. S. U 173);
(21) the second paragraph under the heading "Saint Elizabeths
Hospital" of Sect ion I 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 "I3urca?i of Supplies and Accounts" of the Act of August
22, 1912 (37 Stat. 346; 34 U. S. C. 531a);
(23) the second proviso of the,first paragraph under the heading
"Bureau of Yards and Docks" of the Act of August 29, 1916 (34
t U. S. C. 542);
(24) the proviso contained in the second paragraph under the
heading "Maintenance, Ouartcrrnastcr's Ilcpartincnt, Marine Corps"
of the Act of March 4, 1917 (39 Stat. 1189; 34 ( S. C. 723);
(25) the twentieth paragraph under the heading "Bureau of
Mines" of section I of the Aet 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, 1,915
(38 Slat. 1161; 41 U. S. 0. 26);
(27) the third paragraph under the heading "Interstate Commerce
CommissLion" of section I of the Act of August 1, 1911f (38 Stat. 627;
49 U. S. C. 58);
(28) the Act of June 6, 1941 (55 Scat. 217; 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 (4/5 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 flue first, third, and fifth paragraphs of section 1
of Executive Order _Numbered 61GG of June 10, 193.3, are hereby super-
seded, insofar as they relate to any function now administered by the
Bureau of Federal Supply except functions with respect to standard
contract forms.
(c) The authority eonfcrred by this Act i; in addition to any authority
conferred by any oilier 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 Gueerrnncnt Corporation Control Act (59 Stat. 597;
31 U. S. C. 8411).
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
(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, processing,
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
extent practicable, consistent with the fulfillment of the purposes of
the 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;
(3) any executive agency named in the Armed Services Procure-
ment Act of 1947, and the head thereof, with respect to the adminis-
tration of said Act;
(4) the National Military Establishment with respect to property
required for or located in occupied territories;
(5) the Secretary of Defense with respect to the administration of
the National Industrial Reserve Act of 1948;
(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 materials 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 May 7, 1926, as amended;
(8) the Secretary of the Army, the Secretary of the Navy, and the
Secretary of the Air Force urth 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, 1.9/0 (54 Stat. 712);
(9) the Secretary of Agriculture or tho Department of Agriculture
under (A) the National School Lunch Act (60 Stat. 230); (B) the
Farmers Home Administration Act of 194.6 (60 Slat. 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 August 24,
1935 (49 Stat. 774), as amended, with respect to the exportation and
domestic consumption of agricultural 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);
(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 Stat. 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 residential
property, or of other property (real or personal) held as part of or
acquired for or in connection with residential property, or in con-
nection with the insurance of mortgages, loans, or savings and loan
accounts under the National Housing Act;
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(12) the Tennessee Valley elufhority with respect to nonpersonal
service,,, with respect to the ,milers referred to in section Z101 (a)
(4), and with respect to any propert', acquired or to be acquired for
or in connection with any program of processing, manufacture, pro-
duction, or force account consstruetion: Provided, That the Tennessee
Palley Authority shall to the marirnurn extent that it may deem
practicable, consistent with the fulfillment of the purpose of its pro-
gram and the effective and eUcient conduct of its business, coordi-
nate its operations with the rerruiremnents of this Act and the policies
and regulations prescribed pursuant thereto;
(13) the Atomic Energy C'omanission;
(14) the Administrator of Civil Aeronautics or the Chief of the
Heather Bureau with respect to the disposal of airport property
and airway property.for use as such property. Tor the purpose of
of this paragraph the terr,cs "airport property" and "airway prop-
erty" shall have the respective meanings ascribed to them in the
International Aviation I acilities :let (62 Stat. !x.50);
(15) the Postmaster General or the Postal Establishment with
respect to the means and methods of distribution and transportation.
of the ,nails, and contracts, negotiations, and proceedings before
Federal and Stair regulatory and rate-snaking bodies, relating to
the transportation of the ,nails;
(16) the United States Maritime Commission with respect to
the construction, reconstruction, and reconditioning (including out-
fttting and equipping incident to the foregoing), the acquisition,
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 authors ed
by law, or nonadrninistrative activities incidental thereto: Provided,
That the United States _11aritime Conunission shall to the maximum
extent that it may deem practicable, consistent with the fulfillment of
the purposes of such programs and the effective and client conduct
of such activities, coordinate its operations with the requirements of
this Act, and the policies and regulations prescribed pursuant thereto;
(17) Central lritelligence Agency;
(18) e.ticept 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 procurement,
utilization, or disposal of property under any such law, whenever
but only to the extent he deems such action necessary to effectuate the
provisions of title II; nor
(19) for such period of trine as the President may specify, any
other authority of any executive agency which the President deter-
mines within one year after the effective date of this Act should, in the
public -interest, -stand unimpaired by this Act.
(e) Section. 3709, Revised Statutes, as amended (41 U. S. C. 5), is
amended by striking out "$100" -wherever it appears therein and inserting
in lieu thereof "$500".
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
SEC. 508. (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 hereto-
fore or hereafter appropriated, allocated, or available to it fcr purposes
similar to those provided for in sections 201, 202, 203, and 205 of this
Act.
SEC. 504. If any provision of this Act, or the application thereof to an?,
person or circumstances, is held invalid, the remainder of this Act, and
the applicaticn of such provision to other persons or circumstances, shall
not be affected thereby.
EFFECTIVE DATE
SEC. 505. This Act shall become effective on July 1, 1949, except that
the provisions of section 502 (a) (2) (repealing prior law relating to the
disposition of the affairs of the War Assets Administration) shall become
effective on June 30, 1949.
And the Senate agree to salve.
WILLIAM L. DAWSON,
CHET HOLIFIELD,
M. G. BURNSIDE,
R. WALTER RIEHLMAN,
RALPH HARVEY,
Managers on the Part of the House.
JOHN L. MCCLELLAN,
JAMES 0. EASTLAND,
CLYDE R. HOEY,
JOE MCCARTHY,
IRVING M. IVES,
Managers on the Part of the Senate.
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The managers on the part of the House at the conference on the
disagreeing votes of the two Houses on the amendment of the Senate
to the bill (11. R. 4754) to simplify the procurement, utilization, and
disposal of Government property, to reorganize certain agencies of
the Government, and for other purposes, submit the following state-
ment, in explanation of the effect of the action agreed upon by the
conferees and recommended in the accompanying conference report.
The, Senate amendment struck out all of the House bill after the
enacting clause and inserted a substitute amendment. The conferees
have agreed to at substitute for both the House bill and the Senate
amendment. Except for clarifying, clerical and necessary conforming
changes, the following statement explains the differences between the
House bill and the substitute agreed to in conference.
The conference substitute provides that the new agency shall be
known as the "General Services Administration," as provided in the
House bill, rather than as the "General Services Agency," as provided
in the Senate amendment. It, is desired that the term "Administra-
tion" come to be applied only to independent agencies, that do not
have Cabinet status, as in the case of the departments, and that. are
not primarily regulatory bodies as is the case with commissions.
This change is effected in harmony with the recognition of the long
over-due rea linement of elements within the generic governmental
terns "agency." It is the beginning of proper, and more fittingly
descriptive nomenclature, in governmental fields.
tinder the House bill the Senate and House of Representatives were
ncluded in the definition of "Federal agency" in section 3 (b). The
Senate amendment contained provision excluding the Senate and the
House of Representatives from the definition and specifying both
Houses of Congress, among the bodies for which the Administrator -
is to provide procurement and related services, only upon request,
as set out under section 201 (b). The substitute adopts the Senate
language. Thus the autonomy of the Congress is preserved, except
insofar as it, shall, upon its request, desire to be included in the procure-
ment and related services.
DESIGNATION OF TEMPORAI:Y ADMINISTRATOR
The House bill provides (see. 101 (d)) that rending the first appoint-
ment of an Administrator of General Services, the President may
designate the Federal Works Administrator in office immediately
prior to the effective date of the act to serve temporarily as Adminis-
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
trator and receive the compensation of the General Services Adminis-
trator. The Senate amendment provides that the functions of the
Administrator shall be performed temporarily by such officer of the
Government in office upon, or immediately prior to the effective
date of the act as the President shall designate. The substitute
adopts the Senate language with the addition of the House provision
for compensation, so that in case the incumbent of an abolished
office is designated, he will be entitled to receive compensation during
the period of his temporary service.
COMPENSATION OF ADMINISTRATOR AND OTHER OFFICERS
Under the House bill (sec. 109) the President is authorized to fix
the compensation of the Administrator, the Deputy Administrator,
and other named officers, pending the effective date of other provisions
of law fixing such compensation, and with regard to existing provisions
of law governing such compensation at a rate commensurate with the
responsibilities and duties of the respective offices.
The Senate amendment (see. 101 (e)) authorizes the President to
fix the compensation of the Administrator, Deputy Administrator, and
heads and assistant heads of the principal organizational units of the
General Services Administration at such rates, not in excess of
$15,000 per annum, as lie shall deem to be commensurate with respon-
sibilities and duties of the offices. The substitute (sec. 101 (e))
contains compromise language providing that pending the effective
date of other provisions of law fixing the compensation of the Adminis-
trator, Deputy Administrator, and heads and assistant heads of the
principal organizational units, and taking into consideration pro-
visions of law providing the compensation of offices having comparable
responsibilities and duties, the President shall fix rates of compensation
for each of them which he deems commensurate wit'i the responsi-
bilities and duties of the several offices. Thus the broader application
of the Senate provision (to heads and assistant heads of constituent
units) is adopted, but the House recognition of the pendency of other
salary legislation is retained and a new element requiring consideration
'of salaries paid to comparable officers is introduced in lieu of the
House reference to provisions of existing law governing compensation
of the officers named. It should be noted that under other provisions
of the substitute discussed in the following paragraph certain of the
offices named in the original House provision are abolished.
The House bill (sec. 102 (a)) transfers the Bureau of Federal Supply,
and its functions, records, property, personnel obligations and commit-
ments from the Department of the Treasury to the General Services
Administration, also providing for a Commissioner of Federal Supply
to be the head of the Bureau of Federal Supply. The Senate amend-
ment transfers the functions, records, personnel, etc., of the Bureau of
Federal Supply to the General Services Administrator and abolishes
that Bureau and the office of the Director. The substitute follows the
Senate amendment in that it provides for the abolition of the Bureau
and the office of the Director, but the language has been revised so that
functions are transferred to the Administrator, and records, property,
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personnel obligations and commitments are transferred to the Admin-
istration. This frametiork is in accordance with the recommendations
of the Commission on Organization of the Executive Branch of the
Goveriunent.
FEDERAL WORKS
The house bill would have transferred to the General Services Ad-
ministration the Public Building,.; and Roads Administrations and all
other functions of the Federal Works _tgency, and merely abolished
the Federal Works Agency and the Offices of the Administrator and
Assistant Adnrirlistrator thereof. The Senate amendment would leave
transferred Public Roads and abolished not only the Federal Works
Agency but also the Public Buildings Administriition, and the office
of the Commissioner thereof. The conference substitute follows
the Senate amendment substantially, though in slightly different
language, and, also, transfers the functions of the Commissioner of
Public. Roads to the Administrator of General Services. The 'sub-
stitute thus conforms to the strong recommendations of the Commis-
sion on Government Organization for an integrated organization with
all statutory authority and responsibility vested in the head of the
organization. For the same reasons the conference substitute has
omitted the prior language preservin the Bureau of Connnlunity
Facilities. Further, the substitute: deal fi~res the name of Public
Roads Administration to Bureau of Public Roads as anothe Step
toward standard governmental nomenclature.
'lime house text would have exempted from transfer to the Adminis-
trator the functions of the cilivist, of the United States, under the
act of July- 7, 194:3, respeetuig the destruction of certain historical
records. The Senate amendment struck out. this exemption. The
House conferees, accepted the Senate version because it conforms to
the recommendations of the Commission on Organization that, all
au thorny and responsibility be lodged in the head of the agency.
For the same reasons, the conferees adopted the House language which
transfers to the General Services Administration, the custody of
certain Federal funds now livid by several bodies connected with the
National Archives Establishment, and likewise also transferred to the
General Services Administration under both the Senate and House
texts.
The Senate amendment added as section 104 (c) a new provision
authorizing the Administrator (1) to survey and obtain reports on
Government records management, (2) to promote improved records-
management practices in the Government, including central storage
and disposal. and (3) to report to time Congress on such activities.
The conference substitute adopts the Senate provision as being a
good start- towards the improvement- of Government- records manage-
ment as recommended bV the Commission on Organization of the
Executive Branch of the Government.
In connection with internal regrouping and redish?ibution of
functions by the Adiiiiiiistrator, the Senate amendment required the
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approval of the Director of the Bureau of the Budget to the necessary
accompanying transfers of funds. It was felt that the authority in
this field should not be divided. ' The conferees, therefore, agreed
upon the House text, which authorizes the Administrator to make
such transfers of funds and merely requires him to appropriately
report such transfers to the Budget Director.
The Senate amendment with respect to the General Supply Fund
(sec. 109) establishes a new General Supply Fund and transfers to the
Administrator the assets of the present General Supply Fund. The
new fund is made available for the procurement of personal property
and nonpersonal services for executive agencies. Beginning July 1,
1950, only direct costs of procurement, handling, and distribution are
to be paid from the fund and prices fixed by the Administrator are not
to include indirect or overhead costs. Until July 1, 1950, prices are
to be fixed as now authorized. Provision is made for advance pay-
ment by requisitioning agencies; otherwise, payment is to be made on
vouchers in the usual manner, with the transfer and counter warrant
method authorized when payment has not been made within 45 days
after billing. The fund is a reimbursable fund, and the establish-
ment of a special deposit account for use by disbursing officers is author-
ized. Upon the annual audit of the fund by the Comptroller General,
any surplus found therein (all assets, liabilities, and prior losses con-
sidered) above the authorized capital goes to miscellaneous receipts.
The Comptroller General is to report the results of each annual audit
to the Congress, with any recommendations as to the status and opera-
tion of the fund. The fund maybe used for the procurement of supplies
and nonpersonal services requested by mixed-ownership Government
corporations, the District of Columbia and certain non-Federal
agencies, but in such cases, the prices charged are to include the esti-
mated indirect as well as direct costs.
The Senate amendment provided that the fund should not be
greater than $100,000,000. With one change to reduce this figure to
$75,000,000, the Senate amendment was accepted in lieu of section
210 (e) of the House bill, which merely amended the present authority
by providing that prices charged for supplies or nonpersonal services
furnished through the General Supply Fund should be fixed in amounts
estimated to represent two items of cost, i. e., purchase price and
transportation. It is felt that the Senate amendment reconstituting
the existing fund makes possible the simplification of certain procedures
and is more desirable.
TRANSPORTATION AND TRAFFIC MANAGEMENT
The Senate conferees receded from.the Senate amendment which
deleted references to transportation and traffic management in section
201 (a) and which in section 502 (b) provided for the continuance of
transportation and traffic management functions under Executive
Order 6166. The provision of section 201 (a) of the House bill with
respect to transportation and traffic management are in accordance
with the Recommendations of the Commission on Organization of
the Executive Branch of the Government and provide clear authority
,on this subject.
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The Senate amendment to section 201 (a) (3) provides that con-
tracts for public-utility services may be made by the Administrator
for periods not exceeding 10 yeaars. The purpose of the amendment is
to permit the Government to take advantage of discounts which may
be obtained o dv under contracts for periods of longer than 1 year,
particularly a :aver contracts for electric-power requirements. The
House conferee; are thus in agreement with the Senate amendment.
In section 201 (c) the Senate conferees receded from the language
of this subsection as contained in Senate amendment and accepted
the House language. This eliminates the proviso in the Senate bill
that items of personal property to be exchanged under this subsection
must be subject to exchange as a general practice in trade channels.
Subsection 204 (e) is intended to permit any executive agency to
accept on a projected basis strategic or critical material, as determined
by the Munitions Board, in lieu of cash, in payment of amounts due
the Government for rent, interest, or principal installments under
leases or sales of surplus property.
The price to be allowed in computing the value of the strategic or
critical material, shall be the prevailing market price thereof at the
time the cash payment or payment become or became due
The House conferees accepted the provisions of subsection 204 (f)
in the Senate tinicndrnent. This subsection makes it clear that the
Administrator is authorized to administer and manage any credit,
lease, or permit, and security therefor. taken in connection with the
disposition of surplus property, and it authorizes him to enforce, or
suitably adjust, or settle the rights of the Government thereto as he
considers in the best interest of the Government.
The conferees agreed on adoption of the House language in section
206 (a) (3) whereby provision is set up to establish and maintain such
uniform Federal supply catalog system as may be appropriate to
identify and classify personal property guider the control of Federal
agencies, provided, that the Administrator and the Secretary of De-
fense shall coordinate the cataloging activities of the General Services
Administration and the National Military Establishment so as to
avoid unnecessary duplication. The House language thus properly
coordinates the military and civilian approach to the speedy comple-
tion of the present much needed cataloging program. The theme is
cooperation.
In section 206 (b) the Senatereceded from its amendment limiting the
utilization of such uniform Federal supply catalog system and stand-
ard specification to executive agencies in favor of House language
applying to it- "Federal" agency. The conferees pressed for this fore-
going utilization, except as the Administrator, taking into considera-
tion efficiency, economy, and other interests of the Government, shall
otherwise provide. Thus the use of the cataloging system is made
mandatory by the Federal agencies, and not merely, within the dis-
cretion of the head of any such agency or agencies.
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 35
REPORTS TO CONGRESS
The House bill language in section 210 directed the Administrator
to submit a report to Congress, in January of each year and. at such
other times as he deems 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 that same time he is
directed to cite laws becoming obsolete by reason of passage or opera.
tion of the provisions of this act. This latter point is pertinent since
the Administrator will be immediately cognizant of such obsolete
laws falling within his purview.
The Senate amendment set out in section 502 (f) that the Adminis-
trator shall report to the Congress, in January of each year, and at
such other times as he may deem it desirable, the laws,becoming
obsolete by reason of the passage or operation of Title II and III
of this act.
It was consensus of the conferees that the language and location
of the House section 210 was more proper, less restrictive in scope,
and would. better afford the Congress accurate information for future
legislation.
Further, the House bill exempted from the act the special merchant
marine programs of the Maritime Commission (but not its general
administrative activities). The Senate amendment did not contain
this exemption. The House version was agreed to by the conferees
as being in conformity with other exemptions of special programs,
provided for in both the House bill and the Senate amendment.
In section 502 (a) (1) the House conferees accapted the Senate
amendment to this subsection which amendment saves section 13 (d)
of the Surplus Property Act of 1.944, as amended, from the repealer
clause until December 31, 1949. It is the intention of the conferees
to save Section 13 (d) of the Surplus Property Act of 1944, as amended.
WILLIAM L. DAWSON,
CHET HOL.IFIELD,
M. G. BURNSIDE,
R. WALTER RIEHLMAN,
RALPH HARVEY,
Managers on the Part of the house.
0
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