PROVISION OF RECLAIMED SILVER TO AGENCY COMMERCIAL CONTRACTORS AS GOVERNMENT FURNISHED MATERIAL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00498A000200070004-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: September 6, 2000
• Sequence Number: 4
• Publication Date: October 13, 1976
• Content Type: MF

Approved For Release 2001/04/05: CIA-RDP79-00498A00020007000
MEMORANDUM FOR: Director of Logistics
Chief, Audit Staff, 0/IG
SUBJECT Provision of Reclaimed Silver to
Agency Commercial Contractors as
Government Furnished Material
REFERENCE Federal Property Management Regulations,
Subchapter H, Part 101-42.3
1. Attached regulation of the General Services
Administration (GSA) establishes a procedure whereby
federal agencies may requisition silver or other precious
metals for use as Government furnished material by
commercial contractors. Silver requisitioned under
this procedure is available for 35 cents per troy ounce
as compared to the commercial market price of $4.50 per
troy ounce. GSA advances that requisitions for silver
under this procedure do not require explanations or
justifications; the only criteria being that the re-
quisitioning agency has contributed silver to the recla-
mation program and that the amount of silver requisitioned
does not exceed the total amount contributed.
2. Audit Staff has been informed that the Agency
has not utilized this economical source of silver for use
by contractors, although some 6,000 pounds of silver
bearing material with a market value of over $250,000
have been contributed to the program by the Agency.
3. The process for acquisition of the reclaimed
silver, as described informally by GSA representatives,
seems uncomplicated and involves the following steps:
a. Identification by the Contracting
Officer of procurement action requiring silver
in contract performance;
b. Stipulation in Requests for Proposals
that amounts and values of silver required be
specified in bids;
46-8.
C CT 1976
STATINTL
Approved For Release 2001/04/05: CIA-RDP79-00498A000200070004-8
 Approved For Release 2001/04/05: CIA-RDP79-00498A000200070004-8
a .. ic.,,,, Pro,ui,;s,, giv,4ln; contracts with successful
bidders that silver will be provided as GFM; and
d. Requisition of silver from GSA for
delivery to a specific location.
4. In view of the potential savings available to the
Agency through use of this source of silver, I suggest
that you explore the feasibility of the above described
procedure in Agency procurement. Please advise me of your
findings.
STATINTL
Attachment:
as stated
Distribution:
Orig - Addressee
,,Y- DDA
1 - 0/IG
1 - O/Comp/DCI
1 - D/Fin
Approved For Release 2001/04/05: CIA-RDP79-00498A000200070004-8
 Approved For Release 2001/04/05: CIA-RDP79-00498A000200070004-8
SUE`PART 101-42.3 RECOVERY OF PRECIOUS METALS
AND CRITICAL MATERIALS
may be contacted at the following Ad-
dress: Defense Supply Agency, DOI) P~e-
cious Metals Recovery Program M~Ln-
ager, Cameron Station, Alexalldia,
Virginia 7.23:14.
101.-42.303-2 1J6lir.ltiion of 1) 011)-
recovered ))1'/'c lolls 111('ti1IS 114 (GoVl!r11-
H1ent-funlislell 11111terial ((;.]"M):! ill
Federal Procurements.
To determine the need for recovered
precious Metals as GFM to reduce new
procurement costs, each agency shall re-
view procurements for which precious
metals will be required by a contractor.
Each agency having requirements for re-
fined precious metals as GFM should
submit a request to the Commander,
Defense Industrial Supply Center, 700
Robbins Avenue, Philadelphia, Pennsyl-
vania 19111. A copy of each such req lest
shall be sent to the General Scrvice9 Ad-'
ministration (FWR), Washington, D.C,
20406. Each agency requesting precious
metals under the DOD Precious Metals
Recovery Program shall also contribute
ally Ir,cnProl.ted aeennlulatinns of silver,
frold, and lllatiuunl to I.he 1 )I'CU'MItO In
acco['dlnuCc with ? 101 42.303-1. Nor-
mally, the amount of precious metals
authorized for sale to individual agencies
would not exceed the quantity of such
refined metals derived from the agency
contributions of precious metal.-,bearing
matelisls to the program. Exceptions to
this limitation will be made on a case by
ease basis if refined precious metals on
hand exceed DOD requirements. No
minimum ordering quantity is prescribed.
There is a nominal charge for the refined
precious metals to cover the administra-
tive and processing costs. Such costs,
however, arc substantially lower than
the current market price of fine silver,
gold, and platinum.
FEDERAL PROPERTY MANAGEMENT REGULATIONS
(AMENDMENT H?91, JULY 1975)
Approved For Release 2001/04/05 :,CIA-RDP79-00498A000200070004-8
 VIE if 4p nn if4om'
OFFICIAL ROUTING SLIP
D NAME AND ADDRESS
DATE
INITIALS
z
$OCT197
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
tt:
marks:
V~ .r
,Al Y
FOLD HERE TO RETURN TO SENDER
FROM: NAME, ADDRESS AND PHONE NO.
DATE
ssociate Deputy Director for lministration, 7D 24 H s, x5767 I
!D' OCT i9,~t
UNCLASSIFIED CONFIDENTIAL
SECRET --
No. 237 Use previous editions
DA:MJMalanick (18 Oct 76)
stribution:
IOrig RS D/Log w/cy of Att
fl-' T DDA Subject w/cy of Att
1 DDA Chrono W/o Att
1 MJ'1 Chrono w/o Att
IA-R
DP79-00498AOQ0200070004-8
DDIA r 9 try
File
t: Memo dtd 13 Oct 76 to D/Log fr
11 /A f1 /-I-
Reclaimed Silver to Agency v ;
C omme r. urn Fo ea90 2001/04/05: CIA-RDP79-00498A000200070004 8
Govern, s Pr ~Tatr~r ~,