[PUBLIC LAW 152--81ST CONGRESS] [CHAPTER 288--1ST SESSION] [H.R. 4754] AN ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP54-00177A000200050096-2
• Release Decision: RIFPUB
• Original Classification: U
• Document Page Count: 64
• Document Creation Date: December 12, 2016
• Document Release Date: July 3, 2002
• Sequence Number: 96
• Publication Date: March 2, 1950
• Content Type: REGULATION

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PUBLIC LAW 152-818T CONGRESS]
[CHAPTER 288-1sT SESSION
[H. R. 4754]
AN ACT
To simplify the procurement, utilization and disposal of Government property,
to reorganize certain agencies of the Government, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
That this Act may be cited as the "Federal Property and Adminis-
trative Services Act of 1949".
Sec. 2. Declaration of policy.
Sec. 3. Definitions.
TITLE I-ORGANIZATION
Sec. 101. General Services Administration.
Sec. 102. Transfer of affairs of Bureau of Federal Supply.
Sec. 103. Transfer of affairs of the Federal Works Agency.
Sec. 104. Records management : Transfer of the National Archives.
Sec. 105. Transfer for liquidation of the affairs of the War Assets Administration
See. 106. Redistribution of functions.
Sec. 107. Transfer of funds.
Sec. 108. Status of transferred employees.
See. 109. General supply fund.
TITLE II-PROPERTY MANAOEMENT
Sec. 201. Procurement, warehousing, and related activities.
Sq1c. 202. Property utilization.
Sec. 203. Disposal of surplus property.
Sec. 204. Proceeds from transfer and disposition of property.
Sec. 205. Policies, regulations, and delegations.
S. 206. Surveys, standardization, and cataloging.
Si . 207. Applicability of antitrust laws.
Sec. 208. Employment of personnel.
Sec. 209. Civil remedies and penalties.
Sec. 210. Reports to Congress.
TITLE III-PROCUREMENT PROCEDURA
Sec. 801. Declaration of purpose.
See. 802. Application and procurement methods.
Sec. 803. Advertising requirements.
Sec. 304. Requirements of negotiated contracts.
S c. 305. Advance payments.
Sec. 806. Waiver of liquidated damages.
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[Pva. Law 152.1
Sec. 807. Administrative determinations and delegationse.
Sec. 308. Statutes continued in effect.
Sec. 809. Definitions.
Sec. 310. Statutes not applicable.
TITLE IV-FOREIGN EXCESS PROPERTY
Sec. 401. Disposal of foreign excess property.
Sec. 402. Methods and terms of disposal.
Sec. 403.. Proceeds ; foreign currencies.
Sec. 404. Miscellaneous provisions.
TITLE V-GENERAL PROVISIONS
Sec. 501. Applicability of existing procedures.
Sec. 502. Repeal and saving provisions.
Sec. 503. Authorization for appropriations.
Sec. 504. Separability.
Sec. 505. Effective date.
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, including related functions such as contracting, inspection,
storage, issue, specifications, property identification and classification,
transportation and traffic management, management of public utility
services, repairing and converting, establishment of inventory levels,
establishment of forms and procedures, and representation before
Federal and State regulatory bodies; (b) the utilization of available
property; (c) the disposal of surplus property; and (d) records
management.
SEG. S. As used in this Act-
(a) The term "executive agency" means any executive department
or independent establishment in the executive branch of the Govern-
ment, including any wholly owned Government corporation.
(b) The term "Federal agency" means any executive agency or any
establishment in the legislative or judicial branch of the Government
(except the Senate and the House of Representatives).
(c) The term "Administrator" means the Administrator of General
Services provided for in title I hereof.
(d) The term "property" means any interest in property of any
kind except (1) the public domain and lands reserved or dedicated for
national forest or national park purposes; and (2) naval vessels of
the following categories : Battleships, cruisers, aircraft carriers,
destroyers, and submarines.
(e) The term "excess property" means any property under the con-
trol of any Federal 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.
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[PuB. LAW 152J
(g) The term "Surplus property" means any excess property not
$ equired 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,
onvrating, rehabilitating, operating, preserving, protecting, insuring
acking, storing, handling, conserving, and transporting excess and
urplus property, and, in the case of property which is dangerous to
ublic health or safety, destroying or rendering innocuous such
roperty.
(1) The term "person" includes any corporation, partnership, firm,
sociation, trust, estate, or other entity.
(j) The term "nonpersonal services" means such contractual serv-
ces, other than personal and professional services, as the Adminis-
rator shall designate.
(k) Th., term "contractor inventory" means (1) any property
squired by and in the possession of a contractor or subcontractor
nder a contract pursuant to the terms of which title is vested in the
overnment, and in excess of the amounts needed to complete full
erformance under the entire contract; and (2) any property which
e Government is obligated to take over under any type of contract
4s a result either. of any changes in the specifications or plans there-
.der or of the termination of such contract (or subcontract there-
nder), prior to completion of the work, for the convenience or at.
t e option of the Government.
TITLE I-ORGANIZATION
GENERAL SERVICES ADMINISTRATION
SEC. 101. (a) There is hereby established an agency in the execu-
tive branch of the Government which shall be known as the General
Services Administration.
(b) There shall be at the head of the General Services Administra-
tion an Administrator of General Services who shall be appointed by
the President by and with the advice and consent of the Senate, and
rform his functions subject to the direction and control of the
resident.
(c) There shall be in the General Services Administration a Deputy
Administrator of General Services who shall be appointed by the
Administrator of General Services. The Deputy Administrator shall
p rform such functions as the Administrator shall designate and shall
b Acting Administrator of General Services during the absence or
disability of the Administrator and, unless the President shall desig-
nate another officer of the Government, in the event of a vacancy in
the office of Administrator.
(d) Pending the first appointment of the Administrator under the
9 ovisions of this-section, his functions shall be performed temporarily
such officer of the Government in office upon or immediately prior
to the taking of effect of the provisions of this Act as the President
shall designate, and such officer while so serving shall receive the
salary fixed for the Administrator.
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[PUB. LAW 152.] 4
(e) Pending the effective date of other provisions of law fixing the
rates of compensation of the Administrator, the Deputy Administra-
tor and of the heads and assistant heads of the principal organizational
units of the General Services Administration, and taking into consid-
,oration provisions of law governing the compensation of officers hav-
ing comparable responsibilities and duties, the President shall fix for
each of them a rate of compensation which he shall deem to be com-
mensurate with the responsibilities and duties of the respective offices
involved.
TRANSFER OF AFFAIRS OF BUREAU OF FEDERAL SUPPLY
SEO. 102. (a) The functions of (1) the Bureau of Federal Supply
in the Department of the Treasury, (2) the Director of the Bureau of
Federal Supply, (3) the personnel of such Bureau, and (4) the Secre-
tary of the Treasury, relating to the Bureau of Federal Supply, are
hereby transferred to the Administrator. The records, property, per-
sonnel, obligations, and commitments of the Bureau of Federal Supply,
together with such additional records, property, and personnel of the
Department of the Treasury as the Director of the Bureau of the
Budget shall determine to relate primarily to functions transferred by
this section or vested in the Administrator by titles II, III, and V,
of this Act, are hereby transferred to the General Services Adminis-
tration. The Bureau of Federal Supply and the office of Director of
the Bureau of Federal Supply are hereby abolished.
(b) The functions of the Director of Contract Settlement and of the
Office of Contract Settlement, transferred to the Secretary of the
Treasury by Reorganization Plan Numbered 1 of 1947, are transferred
to the Administrator and shall be performed by him or, subject to his
direction and control, by such officers and agencies of the General
Services Administration as he may designate. The Contract Settle-
ment Act Advisory Board created by section 5 of the Contract Settle-
ment Act of 1944 (58 Stat. 649) and the 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 func-
tions of these Boards shall be performed by them, respectively, under
conditions and limitations prescribed by law. There shall also be
transferred to the General Services Administration such records,
property, personnel, obligations, commitments, and unexpended bal-
ances (available or to be made available) of appropriations, alloca-
tions, and other funds of the Treasury 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 notwithstanding, there may
be retained in the Department of the Treasury any function referred
to in subsection (a) of this section which the Director of the Bureau
of the Budget shall, within ten days after the effective date of this Act,
determine to be essential to the orderly administration of the affairs
of the agencies of such Department, other than the Bureau of Federal
Supply, together with such records, property, personnel, obligations,
commitments, and unexpended balances of appropriations, allocations,
and other funds, available or to be made available, of said Department,
as said Director shall determine.
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oB. dw
TRANSFER OF AFFAIRS OF THE FEDERAL WORKS AGENCY
SEC. 103. (a) All functions of the Federal Works Agency and of
all agencies thereof, together with all functions of the Federal Works
Administrator, of the Commissioner of Public Buildings, and of the
Commissioner of Public Roads, are hereby transferred to the Admin-
istrato 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, anJ
all records, property, personnel, obligations, and commitments of the
Federal Works Agency, including those of all agencies of the Federal
Works Agency.
(b) There are hereby abolished the Federal Works Agency, the
Public Buildings Administration, the office of Federal Works Admin-
istrator, the office of Commissioner of Public Buildings, and the office
of Assistant Federal Works Administrator.
SEC. 104. (a) The National Archives Establishment and its func-
tions, records, property, personnel, obligations, and commitments are
hereby transferred to the General Services Administration. There
are transferred to the Administrator (1) the functions of the Archivist
of the United States, except that the Archivist shall continue to be a
member or chairman, as the case may be, of the bodies referred to in
subsection (b) of this section, and (2) the functions of the Director
of the Division of the Federal Register of the National Archives
Establishment. The Archivist of the United States shall hereafter be
appointed by the Administrator.
(b) There are also transferred to the General Services Administra-
tion the following bodies, together with their respective functions and
such funds as are derived from Federal sources : (1) The National
Archives Council and the National Historical Publications Cgmmis-
sion, established by the Act of June 19, 1934 (48 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 (4) the Administrative Committee established
by section 6 of the Act of July 26, 1935 (49 Stat. 501), which shall
hereafter be known as the Administrative Committee of the Federal
Register. The authority of the Administrator under section 106
hereof shall not extend to the bodies or functions affected by this
subsection.
(c) The Administrator is authorized (1) to make surveys of Gov-
ernment records and records management and disposal practices and
obtain reports thereon from Federal agencies; (2) to promote, in
cooperation with the executive agencies, improved records manage-
ment practices and controls in such agencies, including the central
storage or disposition of records not needed by such agencies for their
current use; and (3) to report to the Congress and the Director of
the Bureau of the Budget from time to time the results of such
activities.
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TRANSFER FOR LIQUIDATION OF THE AFFAIRS OF THE WAR ASSETS
ADMINISTRATION
SEC. 105. The functions, records, property, personnel obligations,
and commitments of the War Assets Administration are hereby trans-
ferred to the General Services Administration. The functions of the
War Assets Administrator are hereby transferred to the Administra-
tor of General Services. The War Assets Administration, the office of
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 Sur-
plus Property Act of 1944, as amended, may be continued in such posi-
tions or may be appointed to similar positions for such time as the
Administrator may determine.
REDISTRIBUTION OF FUNCTIONS
SEC. 106. The Administrator is hereby authorized, in his discretion,
in order to provide for the effective accomplishment of the functions
transferred to or vested in him by this Act, and from time to time, to
regroup, transfer, and distribute any such functions within the Gen-
eral Services Administration. The Administrator is hereby author-
ized 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, alloca-
tions, or other funds available or to be made available, for the use of
the Bureau of Federal Supply, the War Assets Administration, the
Federal Works Agency, and the National Archives Establishment,
and so much of the other unexpended balances of appropriations, allo-
cations, or other funds of the Department of the Treasury, available
or to be made available, as the Director of the Bureau of the Budget
shall determine to relate primarily to functions transferred to or vested
in the Administrator by the provisions of this Act, shall be transferred
to the General Services Administration for use in connection with the
functions to which such balances relate, respectively.
(b) When other functions are transferred to the General Services
Administration from any Federal agency, under section 201 (a) (2)
or (3), or otherwise under this Act, there shall be transferred sue
recor s, property, personnel, appropriations, allocations, and other
funds of such agency to the General Services Administration as the
Director of the Bureau of the Budget shall determine to relate pri-
marily to the functions so transferred.
SEe. 108. Subject to other provisions of this title relating to per-
sonnel, employees transferred by the provisions of this title shall be
deemed to be employees of the General Services Administration and
their reappointment shall not be required by reason of the enactment
of this Act.
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Sao. 109. (a) There is hereby authorized to be set aside in the
Treasury a special fund which shall be known as the General Supply
Fund. Such fund shall be composed of the assets of the general sup-
ply fund (including any surplus therein) created by section 3 of the
Act of February 27, 1929 (45 Stat. 1342; 41 U. S. C. 7c), and trans-
ferred to the Administrator by section 102 of this Act, and such sums
as may be appropriated thereto, and .the fund shall assume all of the
liabilities, obligations and commitments of the general suppl fund
created by such Act o? 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 direc-
tion and control of the Administrator (1) for procuring personal
property (including the purchase from or through the Public Printer
of standard forms and blankbook work for field warehouse issue) and
nonpersonal services for the use of Federal agencies in the proper dis-
charge of their responsibilities and (2) for paying all elements of
cost of the procurement, handing, and distribution thereof, except
that on and after July 1, 1950, those elements of cost which are deter-
mined by the Administrator with the approval of the Director of the
Bureau of the Budget to be indirect or overhead costs shall not be paid
from the fund.
(b) Payment by requisitioning agencies shall be at prices fixed by
the Administrator. Until July 1, 1950, such prices shall be fixed in
accordance with law and regulations applicable on the date of enact-
ment of this Act to prices fixed by the Director of the Bureau of Fed-
eral Supply. On and after such date, such prices shall be fixed at
levels so as to recover so far as practicable all costs except those which
are determined by the Administrator with the approval of the Director
of the Bureau of the Budget to be indirect or overhead costs. Requi-
sitioning agencies shall pay by advance of funds in all cases where
it is determined by the Administrator that there is insufficient capital
otherwise available in the General Supply Fund. Advances of funds
also may be made by . agreement between the requisitioning agencies
and the Administrator. Where an advance of funds is not made,
requisitioning agencies shall promptly reimburse the General Services
Administration on vouchers prepared by the requisitioning agency on
the basis of itemized invoices submitted by the Administrator and
receiving reports evidencing the delivery to the requisitioning agency
of such supplies or services : Provided, That in any case where pay-
ment shall not have been made by the requisitioning agency within
forty-five days after the date of billing by the Administrator, reim-
bursement may be obtained by the Administrator by the issuance of
transfer and counterwarrants supported by itemized invoices.
(c) The General Supply Fund shall be credited with all reimburse-
ments, advances of funds, and refunds or recoveries relating to sup-
plies or services procured through the fund, including the net proceeds
of disposal of surplus supplies procured through the fund and receipts
from carriers and others for loss of, or damage to, supplies procured
through the fund; and the same are hereby reappropriated for the
purposes of the fund.
(d) A special deposit account may be established as a part of the
General Supply Fund with the Treasurer of the United States for use
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by the chief disbursing officer or any regional disbursing officer,
Department of the Treasury, which may be credited with (1) funds
advanced from the General Supply Fund account on the books of the
Division of Bookkeeping and Warrants and (2) other funds properly
for credit to the General Supply Fund without being covered into the
Treasury of the United States ; and such special deposit account may
be charged with payments properly chargeable to the General Supply
Fund.
(e) The Comptroller General of the United States shall make an
annual audit of the General Supply Fund as of June 30, and there
shall be covered into the United States Treasury as miscellaneous
receipts any surplus found therein, all assets, liabilities, and prior
losses considered, above the amounts transferred or appropriated to
establish and maintain said fund, and the Comptroller General shall
report to the Congress annually the results of the audit, together with
such recommendations as he may have regarding the status and oper-
ations of the fund.
(f) Subject to the requirements of subsections (a) to (e), inclusive,
of this section, the General Supply Fund also may be used for the
procurement of supplies and nonpersonal services authorized to be
acquired by mixed-ownership Government corporations, or by the
municipal government of the District of Columbia, or by a requisi-
tioning non-Federal agency when the function of a Federal agency
authorized to procure for it is transferred to the General Services
Administration : Provided, That the prices charged by the Adminis-
trator in such cases shall be fixed at levels which he estimates will be,
sufficient to recover, in addition to the direct costs of the procurement,
handling, and distribution of such supplies and services, the indirect
and overhead costs that the Administrator determines are allocable
thereto.
PROCUREMENT, WAREHOUSING, AND RELATED ACTIVITIES
SEC. 201. (a) The Administrator shall in respect of executive agen-
cies, and to the extent that he determines that so doing is advantageous
to the Government in terms of economy, efficiency, or service, and with
due regard to the program activities of the agencies concerned-
(1) prescribe policies and methods of procurement and supply
of personal property and nonpersonal services, including related
functions such as contracting, inspection, storage, issue, property
identification and classification2 transportation and traffic man-
agement, managem(mt of public utility services, and repairing
and converting; and
(2) operate, and, after consultation with the executive-agencies
affected, consolidate, take over, or arrange for the operation by
any executive agency of warehouses, supply centers, repair shops,
fuel yards, and other similar facilities; and
(3) procure and supply personal property and nonpersonal
services for the use of executive agencies in the proper discharge
of their responsibilities, and perform functions related to procure-
ment and supply such as those mentioned above in subparagraph
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(1) : Provided That contracts for public utility services may be
made for perioDds not exceeding ten years; and
(4) with respect to transportation and other public utility
services for the use of executive agencies, represent such agencies
in negotiations with carriers and other public utilities and in pro-
ceedings involving carriers or other public utilities before Federal
and State regulatory bodies;
Provided, That the Secretary of Defense may from time to time and
unless the President shall otherwise direct, exempt the National Mili-
tary Establishment from action taken or which may be taken by the
Administrator under clauses (1), (2), (8), and (4) above whenever
he determines such exemption to be in the best interests of national
security.
(b) The Administrator shall as far as practicable provide any of
the services specified in subsection (a) of this section to any other
Federal agency, mixed ownership corporation (as defined in the Gov-
ernment Corporation Control Act), or the District of Columbia, or
the Senate, or the House of Representatives, upon its request.
(c) In acquiring personal property any executive agency, under
regulations to be prescribed by the Administrator, may exchange or
sell similar items and may apply the exchange allowance or proceeds
of sale in such cases in whole or in part payment for the property
acquired : Provided That any transaction carried out under the
authority of this subsection shall be evidenced in writing.
SEC. 202. (a) In order to minimize expenditures for property, the
Administrator shall prescribe policies and methods to promote the
maximum utilization of excess property by executive agencies, and
he shall provide for the transfer of excess property among Federal
agencies.
(b) Each executive agency shall (1) maintain adequate inventory
controls and accountability systems for the property under its control,
(2) continuously survey property under its control to determine which
is excess property, and promptly report such property to the. Admin-
istrator, (3) perform the care and handling of such excess property,
and (4) transfer or dispose of such property as promptly as possible
in accordance with authority delegated and regulations prescribed
by the Administrator.
(c) Each executive agency shall, as far as practicable, (1) make
reassignments of property among activities within the agency when
such property is determined to be no longer required for the purposes
of the appropriation from which it was purchased, (2) transfer excess
property under its control to other Federal agencies, and (3) obtain
excess property from other Federal agencies.
(d) Under existing provisions of law and procedures defined by the
Secretary of Defense, and without regard to the requirements of this
section except subsection (f), excess property of one of the depart-
ments of the National Military Establishment may be transferred to
another department thereof.
(e) Transfers of excess property between Federal agencies (except
transfers for redistribution to other Federal agencies or for disposal
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[Mi. LAW 152.] 10
as surplus property) shall be at the fair value thereof, as determined
by, or pursuant to regulations of, the Administrator, unless such
transfer is otherwise authorized by any law approved subsequent to
dune 21, 1944, to be without reimbursement or transfer of funds.
(f) The Director of the Bureau of the Budget shall prescribe regu-
lations providing for the reporting to said Director by executive agen-
cies of such reassignments or transfers of property between activities
financed by different 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 may
determine.
(g) Whenever the Administrator determines that the temporary
assignment 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 assignment or reassignment for such period of time
as he shall determine and obtain, in the absence of appropriation avail-
able to him therefor, appropriate reimbursement from the using agency
for the expense of maintaining such space.
(h) The Administrator may authorize the abandonment, destruc-
tion, or donation to 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.
DISPOSAL OF SURPLUS PROPERTY
SEC. 203. (a) Except as otherwise provided in this section, the
Administrator shall have supervision and direction over the disposi-
tion 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 dispo-
sition, 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 Admin-
istrator to dispose of surplus property 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 con-
cerns 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 case better protect the public interest, surplus
property disposals may be made without regard to any provision of
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existing law for advertising until 12 o'clock noon, eastern standard
time, December 31, 1950.
(f) Subject to regulations of the Administrator, any executive
agency may authorize any contractor with such agency or subcon-
tractor thereunder to retain or dispose of any contractor inventory.
(g) The Administrator 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 sur-
plus food processed from agricultural commodities, from being dumped
on the market in a disorderly manner and disrupting the market prices
for agricultural commodities.
(h) Whenever the Secretary of Agriculture determines such action
to be required to assist him in carrying out his responsibilities with
respect to price support or stabilization, the Administrator shall
transfer without charge to the Department of Agriculture any surplus
agricultural commodities, foods, or cotton or woolen goods to be dis-
posed of. Receipts resulting from disposal by the Department of Agri-
culture under this subsection shall be deposited pursuant to any author-
ity available to the Secretary of Agriculture, except that net proceeds
of any sale of surplus property so transferred shall be credited pur-
suant to section 204 (b), when applicable. Surplus farm commodities
so transferred shall not be sold, other than for export, in quantities
in excess of, or at prices less than those applicable with respect to
sales of such commodities by the dommodity Credit Corporation.
(i) The United States Maritime Commission shall dispose of sur-
plus vessels of one thousand five hundred gross tons or more which
the Commission determines to be merchant vessels or capable of con-
version to merchant use, and such vessels shall be disposed of only in
accordance with the provisions of the Merchant Marine Act, 1936,
as amended, and other laws authorizing the sale of such vessels.
(j) (1) Under such regulations as he may prescribe, the Adminis-
trator is authorized in his discretion to donate for educational pur-
poses in the States, Territories, and possessions without cost (except
for costs of care and handling) such equipment, materials, books
or other supplies under the control of any executive agency as shall
have been determined to be surplus property and which shall have
been determined under paragraph 2 or paragraph 3 of this subsection
to be usable and necessary for educational purposes.
(2) Determination whether such surplus property (except surplus
property donated in conformity with paragraph 3 of this subsection)
is usable and necessary for educational purposes shall be made by the
Federal Security Administrator, who shall allocate such property on
the basis of needs and utilization for transfer by the Administrator
of General Services to tax-supported school systems, schools, colleges,
and universities, and to other nonprofit schools, colleges, and universi-
ties which have been held exempt from taxation under section 101 (6)
of the Internal Revenue Code, or to State departments of education
for distribution to such tax-supported and nonprofit school systems,
schools, colleges, and universities; except that in any State where
another agency is designated by State law for such purpose such
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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 deter-
mine 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 Aecretary 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 Admin-
istrator is authorized, in his discretion, to assign to the Federal
Security Administrator for disposal such surplus real property,
including buildings, fixtures, and equipment situated thereon, as is
recommended by the Federal Security Administrator as being needed
for school, classroom, or other educational use, or for use in the protec-
tion of publi c health, including research.
(A) Subject to the disapproval of the Administrator within
thirty days after notice to him by the Federal Security Admin-
istrator of a proposed transfer of property for school, class-
room, or other educational use, the Federal Security Adnlinis-
trator, through such officers or employees of the Federal Security
Agency as he may designate, may sell or lease such real property,
including buildings, fixtures, and equipment situated thereon, for.
educational purposes to the States and their political subdivi-
sions and instrumentalities, and tax-supported educational insti-
tutions, and to other nonprofit educational institutions which
have been held exempt from taxation under section 101 (6) of
the Internal Revenue Code.
(B) Subject to'the disapproval of the Administrator within
thirty days after notice to him by the Federal Security Adminis-
trator of a proposed transfer of property for public-health use,
the Federal Security Administrator, through such officers or
employees of the Federal Security Agency as he may designate,
may sell or lease such real property for public-health purposes,
including research, to the States and their political subdivisions
and instrumentalities, and to tax-supported medical institutions,
and to hospitals or other similar institutions not operated for
profit which have been held exempt from taxation under.section
101 (6) of the Internal Revenue Code.
(C) In fixing the sale or lease value of property to be disposed
of under subparagraph (A) and subparagraph (B) of this para-
graph, the Federal Security Administrator shall take into consid-
eration. any benefit which has accrued or may accrue to the United
States from the use of such property by any such State, political
subdivision, instrumentality, 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
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days after notice to him of any action to be taken under this
subsection-
(A) The Federal Security Administrator, through such officers
or employees of the Federal Security Agency as he may designate,
in the case of property transferred pursuant to the Surplus
Property Act of 1944, as amended, and pursuant to this Act,
to States, political subdivisions, and instrumentalities thereof,
and tax-supported and other nonprofit educational institutions for
school, classroom, or' other educational use;'
(B) the Federal Security Administrator, through such officer
or employees of the Federal Security Agency as he may designate,
in the case of property transferred pursuant to the Surplus
Property Act of 1944, as amended, and pursuant to this Act,
to States, political subdivisions and instrumentalities thereof,
tax-supported medical institutions, and to hospitals and other
similar institutions not operated for profit, for use in the pro-
tection of public health (including research) ;
(C) the Secretary of the Interior, in the case of property trans-
ferred pursuant to the Surplus Property Act of 1944, as amended
and pursuant to this Act, to States, political subdivisions, and
instrumentalities thereof, and municipalities for use as a public
park, public. recreational area, or historic monument for the
benefit of the public; or
(D) the Secretary of Defense, in the case of property trans-
ferred pursuant to the Surplus Property Act of 1944, as amended,
to States, political subdivisions, and tax-supported instrumentali-
ties thereof for use in the training and maintenance of civilian
components of the armed forces,
is authorized and directed-
(i) to determine and enforce compliance with the terms, condi-
tions; reservations, and restrictions contained in any instrument
by which such transfer was made;
(ii) to reform, correct, or amend any such instrument by the
execution of a corrective, reformative, or amendatory instrument
where necessary to correct such instrument or to conform such
transfer to the requirements of applicable law ; and
(iii) to (I) grant releases from any of the terms, conditions,
reservations, and restrictions contained in, and (II) convey, quit-
claim, or release to the transferee or other eligible user any right
or interest reserved to the United States by, any instrument by
which such transfer was made, if 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 accomplishment of the purpose for which such
property was so transferred : Provided, That any such release,
conveyance, or quitclaim deed may be granted on, or made sub-
ject to, such terms and conditions as he shall deem necessary to
protect or advance the interests of the United States.
(1) The Administrator is authorized to take possession of abandoned
and other unclaimed property on premises owned or leased by the Gov-
ernment, to determine when title thereto vested in the United States,
and to utilize, transfer or otherwise dispose of such property. Former
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owners of ouch 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 transferred the fair value therefor as of the
time title was vested in the Unites States as determined by the Admin-
istrator, less in either case the costs incident to the care and handling
of such property as determined by the Administrator.
PROCEEDS FROM TRANSFER OR DISPOSITION OF PROPERTY
SEa. 204. (a) All proceeds under this title from any transfer of
excess property to a Federal agency for its use, or from any sale,
lease, or other disposition of surplus property, shall be covered into
the Treasury as miscellaneous receipts, except as provided in subsec-
tions (b), (c), (d), and (e) of this section.
(b) Where the property transferred or disposed of was acquired by
the use of funds either not appropriated from the general fund cf 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 deter-
mined the property to be excess shall deem it uneconomical or imprac-
tical to ascertain the amount of net proceeds. As used in this sub-
section, the term "net proceeds of the disposition or transfer" means
the proceeds of the disposition or transfer minus all expenses incurred
for care and handling and disposition or transfer.
(c) Any Federal agency disposing of surplus property under this
title (1) may deposit, in a special account with the Treasurer of the
United States, such amount of the proceeds of such dispositions as it
deems necessary to permit appropriate refunds to purchasers when any
disposition is rescinded or does not become final, or payments for
breach of any warranty, and (2) may withdraw therefrom amounts
so to be refunded or paid, without regard to the origin of the funds
withdrawn.
(d) Where any contract entered into by an executive agency or any
subcontract under such contract authorizes the proceeds of any sale of
property in the custody of the contractor or subcontractor to be credited
to the price or cost of the work covered by such contract or subcontract,
the proceeds of any such sale shall be credited in accordance with the
contract or subcontract.
(e) Any executive agency entitled to receive cash under any contract
covering the lease, sale or other disposition of surplus property may in
its discretion accept, in lieu of cash, any property determined by the
Munitions Board to be strategic or critical material at the prevailing
market price thereof at the time the cash payment or payments became
or become due.
(f) Where credit has been extended in connection with any disposi-
tion of surplus property under this title or by War Assets Adminis-
tration (or its predecessor agencies) under the Surplus Property Act
of 1944, or where such disposition has been by lease or permit, the
Administrator shall administer and manage such credit, lease, or per-
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vs. dw b
mit, and any security therefor, and may enforce adjust, and settle
any right of the Government with respect thereto in such manner and
upon such terms as he deems in the best interest of the Government.
POLICIES, REGULATIONS, AND DELEGATIONS
SEC. 205. (a) The President may prescribe such policies and direc-
tives, not inconsistent with the provisions of this Act as he shall deem
necessary to effectuate the provisions of this Act, which policies and
directives shall govern the Administrator and executive agencies in
carrying out their respective functions hereunder.
(b) The Comptroller General after considering the needs and
requirements of the executive agencies shall prescribe principles and
standards of accounting for property, cooperate with the Adminis-
trator and with the executive agencies in the development of property
accounting systems, and approve such systems when deemed to be ade-
quate and in conformit with prescribed principles and standards.
From time to time the General Accounting Office shall examine such
property accounting systems as are established by the executive agen-
cies to determine the extent of compliance with prescribed principles
and standards and approved systems, and the Comptroller General
shall report to the Congress any failure to comply with such principles
and standards or to adequately account for property.
(c) The Administrator shall prescribe such regulations as he deems
necessary to effectuate his functions under this Act, and the head o1
each executive agency shall cause to be issued such orders and direc-
tives as such head deems necessary to carry out such regulations.
(d) The Administrator is authorized to delegate and to authorize
successive redelegation of any authority transferred to or vested in
him by this Act (except for the authority to issue regulations on mat-
ters of policy having application to executive agencies, the authorit
contained in section 106, and except as otherwise provided in this Act
to any official in the General Services Administration or to the head
of any other Federal agency.
(e) With respect to any function transferred to or vested in the
General Services Administration or the Administrator by this Act,
the Administrator may (1) direct the undertaking of its performance
by the General Services Administration or by any constituent organi-
zation therein which he may designate or establish; or (2) designate
and authorize any executive agency to perform such function for
itself; or (3) designate and authorize any other executive agency to
perform such function; or (4) provide for such performance by any
combination of the foregoing methods. Any designation or assign-
ment of functions or delegation of authority to another executive
agency under this section shall be made only with the consent of the
executive agency concerned or upon direction of the President.
(f) When any executive agency (including the General Services
Administration and constituent organizations thereof) is authorized
and directed by the Administrator to carry out any function under
this Act, the Administrator may, with the approval of the Director
of the Bureau of the Budget, provide for the transfer of appropriate
personnel, records, property, and allocated funds of the General
Services Administration, or of such other executive agency as has
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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.
SIIRVEYS, 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
executive agencies affected, and with due regard to the requirements
of the National Military Establishment as determined by the Secretary
of Defense, the Administrator is authorized (1) to make surveys of
Government property and property management practices and obtain
reports thereon from executive agencies; (2) to cooperate with execu-
tive agencies in the establishment of reasonable inventory levels for
property stocked by them and from time to time report any excessive
stocking to the Congress and to the Director of the Bureau of the
Budget; (3) to establish and maintain such uniform Federal supply
catalog system as may be appropriate to identify and classify personal
property under the control of Federal agencies : Provided, That the
Administrator and the Secretary of Defense shall coordinate the cata-
loging activities of the General Services Administration and the
National Military Establishment so as to avoid unnecessary duplica-
tion; and (4) to prescribe standardized forms and procedures, except
such as the Comptroller General is authorized by law to prescribe, and
standard purchase specifications.
(b) Each Federal agency shall utilize such uniform Federal supply
catalog system and standard purchase specifications, except as the
Administrator, taking into consideration efficiency, economy, and other
interests of the Government, shall otherwise provide.
(c) The General Accounting. Office shall audit all types of property
accounts and transactions at such times and in such manner as deter-
mined by the Comptroller General. Such audit shall be conducted as
far as practicable at the place or places where the property or records
of the executive agencies are kept and shall include but not necessarily
be limited to an evaluation of the effectiveness of internal controls and
audits, and a general audit of the discharge of accountability for
Government-owned or controlled property based upon generally
accepted principles of auditing.
APPLICABILITY OF ANTITRUST LAWS
SEC. 207. Whenever any executive agency shall begin negotiations
for the disposition to private interests of a plant or plants, or other
property, which cost the Government $1,000,000 or more, or of patents,
processes, techniques, or inventions, irrespective of cost, the executive
agency shall promptly notify the Attorney General of the proposed
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disposal and the probable terms or conditions thereof. Within a
reasonable time, in no event to exceed sixty days after receiving such
notification, the Attorney General shall advise the Administrator and
the interested executive agency whether, insofar as he can determine,
the proposed disposition would tend to create or maintain a situation
inconsistent with the antitrust laws. Upon the request of the Attorney
General, the Administrator or interested executive agency shall fur-
nish or cause to be furnished such information as it may possess which
the Attorney General determines to be appropriate or necessary to
enable him to give the advice called for by this section or to determine
whether any other disposition or proposed disposition of surplus
property violates the antitrust laws. Nothing in this Act shall
impair, amend, or modify the antitrust laws or limit and prevent their
application to persons who buy or otherwise acquire property under
the provisions of this Act. As used in this section the term "antitrust
includes the Act of July 2, 1890 (ch. 6 4 7, 6
2 Stat. 209), as
amended; the At of October 15, 1914 (ch. 323, 38 Stat. 730), as
amended; the Federal Trade Commission Act (38 Stat. 717), as
amended; and sections 73 and 74 of the Act of August 27, 1894
(28 Stat. 570), as amended.
SEC. 208. (a) The Administrator is authorized, subject to the civil-
service and classification laws, to appoint and fix the compensation of
such personnel as may be necessary to carry out the provisions of titles
I, II, III, and V of this Act.
(b) To such extent as he finds necessary to carry out the provisions
of titles I II, III, and V of this Act the Administrator is hereby
authorized to procure the temporary not in excess of one year) or
intermittent services of experts or consultants or organizations thereof,
including stenographic reporting services, by contract or appointment,.
and in such cases such service shall be without regard to the civil-
service and classification laws, and, except in the case of stenographic
reporting services by organizations, without regard to section 3709,.
Revised Statutes, as amended (41 U. S. C. 5).
(c) Notwithstanding the provisions of section 1222 of the Revised,
Statutes (10 U.. S. C. 576) or of any other provision of law, the
Administrator in carrying out the functions imposed upon him 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.
CIVIL REMEDIES AND PENAIl1TES
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 determined to be uncollectible by the Federal agency respon-
sible therefor.
(b) Every person who shall use or engage in, or cause to be used or
engaged in, or enter into an agreement, combination, or conspiracy to
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use or engage in or to cause to be used or engaged in, any fraudulent
trick, scheme, or device, for the purpose of securing or obtaining, or
aiding to secure or obtain, for any person any payment, property, or
other benefits from the United States or any Federal agency in con-
nection with the procurement, transfer, or disposition of property
hereunder-
(1) shall pay to the United States the 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, if the United States shall so elect, pay to the United
States, as liquidated damages, a sum equal to twice the considera-
tion agreed to be given by the United States or any Federal agency
to such person or by such person to the United States or any
Federal agency, as the case may be; or
(3) shall, if the United States shall so elect, restore to the
United States the money or property thus secured and obtained
and the United States shall retain as liquidated damages any
property, 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.
REPORTS TO CONGRESS
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 recommendations for amendments to this Act
as he may deem appropriate as the result of the administration of
such functions, at which time he shall also cite the laws becoming
obsolete by reason of passage or operation of the provisions of this Acts
TITLE III-PROCUREMENT PROCEDURE
DECLARATION OF PURPOSE
SEC. 301. The purpose of this title is to facilitate the procurement
of supplies and services.
APPLICATION AND PROCUREMENT METHODS
SEC. 302. (a) The provisions of this title shall be applicable to
purchases an contracts for supplies or services made-
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(1) by the General Services Administration for the use of
such agency or otherwise; and
(2) by any other executive agency (except any agency named
in section 2 (a) of the Armed Services Procurement Act of 1947),
to the extent of and in conformity with authority delegated by
the Administrator pursuant to the provisions of this subsection.
The Administrator may delegate to the head of any other such agency
authority to make purchases and contracts for supplies or services
pursuant to the provisions of this title (A) for the use of two or
more executive agencies or B) in other cases upon a determination
by the Administrator that by reason of circumstances set forth in
such determination such delegation is advantageous to the Govern-
ment in terms of economy, efficiency, or national security. Notice
of every such delegation of authority so made shall be furnished to
the General Accounting Office.
(b) It is the declared policy of the Congress that a fair propor-
tion of the total purchases and contracts for supplies and services for
the Government shall be placed with small-business concerns. When-
ever it is proposed to make a contract or purchase in excess of $10,000
by negotiation and without advertising, pursuant to the authority of
paragraph (7) or (8) of section 302 (c) of this title suitable advance
publicity, as determined by the agency head with due regard to the
type of supplies involved and other relevant considerations, shall be
given for a period of at least fifteen days, wherever practicable, as
determined by the agency head.
(c) All purchases and contracts for supplies and services shall be
made by advertising, as provided in section 303, except that such pur-
chases and contracts may be negotiated by the agency head without
advertising if-
(1) determined to be necessary in the public interest during the
period of a national emergency declared by the President or by the
Congress ;
(2) the public exigency will not admit of the delay incident to
advertising;
(3) the aggregate amount involved does not exceed $1,000:
Provided, That no agency other than the General Services Admin-
istration shall make any purchase of, or contract for, supplies or
services in excess of $500 under this paragraph except in the
exercise of authority conferred by the Administrator to procure
and furnish supplies and services for the use of two or more
executive agencies
4 for personal or professional services;
(5) for any service to be rendered by any university, college, or
other educational institution;
(6) the supplies or services are to be procured and used outside
the limits of the United States and its possessions;
(7) for medicines or medical supplies i
(8) for supplies purchased for authorized resale;
(9) for supplies or services for which it is impracticable to
secure competition ?
(10) the agency head determines that the purchase or contract
is for experimental, developmental, or research work, or for the
manufacture or furnishing of supplies for experimentation, devel-
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opnient, 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 consideration given to the national security, a description of
the work required to be performed thereunder;
(11) for supplies or services as to which the agency head deter-
mines that the character, ingredients, or components thereof are
such that the purchase or contract should not be publicly disclosed ;
(12) for equipment which the agency head determines to be
technical equipment, and as to which he determines that the pro-
curement thereof without advertising is necessary in special situ-
ations or in particular localities in order to assure standardization
of equipment and interchangeability of parts and that such stand-
ardization and interchangeability is necessary in the public
interest;
(13) for supplies or services as to which the agency head
determines that 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 nego-
tiate and reasonable opportunity 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 adver-
tising evidence any violation of the antitrust laws he shall refer such
bids to the Attorney General for appropriate action.
(e) This section shall not be construed to (A) authorize the erec-
tion, repair, or furnishing of any public building or public improve-
ment, but such authorization shall be required in the same manner
as heretofore, or (B) permit any contract for the construction or
repair of buildings, roads, sidewalks, sewers, mains, or similar items to
be negotiated without advertising as required by section 303, unless
such contract is to be performed outside the continental United States
or unless negotiation of such contract is authorized by the provisions
of paragraph (1), (2), (3), (9), (10), (11), or (13) of subsection
(c) of this section.
ADVERTISING REQUIRI~MENTs
SEc. 303. Whenever advertising is required-
(a) The advertisement for bids shall be made a sufficient time
previous to the purchase or contract and specifications and invitations
for bids shall permit such full and free competition as is consistent
with the procurement of types of supplies and services necessary to
meet the requirements of the agency concerned.
(b) All bids shall be publicly opened at the time and place stated
in the advertisement. Award shall be made with reasonable prompt-
ness by written notice to that responsible bidder whose bid, conform-
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ing to the invitation for bids, will be most advantageous to the Govern-
ment2 price and other factors considered : Provided, That all bids may
be rejected when the agency head determines that it is in the public
interest so to do.
REQUIREMENTS OF NEGOTIATED CONTRACTS
SEC. 304. (a) Except as provided in subsection (b) of this section,
contracts negotiated pursuant to section 302 (c) may be of any type
which in the opinion of the agency head will promote the best interests
of the Government. Every contract negotiated pursuant to section
302 (c) shall contain a suitable warranty, as determined by the agency
head, by the contractor that no person or selling agency has been
employed or retained to solicit or secure such contract upon an agree-
ment or understanding for a commission, percentage brokerage, or
contingent fee, excepting bona fide employees or bona ?lde 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 a.inul 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 a cost- plus- a-fixed-fee contract the fee
shall not exceed 10 per centum of the estimated cost of the contract
exclusive of the fee, as determined by the agency head at the time of
entering into such contract (except that a fee not in excess of 15 per
centum of such estimated cost is authorized in any such contract for
experimental, developmental, or research work and that a fee inclusive
of the contractor's costs and not in excess of 6 per centum of the esti-
mated cost, exclusive of fees, as determined by the agency head at the
time of entering into the contract, of the project to which such fee is
applicable is authorized in contracts for architectural or engineering
services relating to any public works or utility project). Neither a
cost nor a cost-plus-a-fixed-fee contract nor an incentive-type contract
shall be used unless the agency head determines that such method of
contracting is likely to be less costly than other methods or that it is
impractical to secure supplies or services of the kind or quality
required without the use of a cost or cost-plus-a-fixed-fee contract or
an incentive-type contract. All cost and cost-plus-a-fixed-fee con-
tracts shall provide for advance notification by the contractor to the
procuring agency of any subcontract thereunder on a cost-plus-a-
fixed-fee basis and of any fixed-price subcontract or purchase order
which exceeds in dollar amount either $25,000 or 5 per centum of the
total estimated cost of the prime contract; and a procuring 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 performance of a cost or
cost-plus-a-fixed-fee contract.
ADVANCE PAYMENTS
SEC. 305. (a) The agency head may make advance payments under
negotiated contracts heretofore or hereafter executed in any amount
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not exceeding the contract price upon such terms as the parties shall
agree : Provided, That advance payments shall be made only upon
adequate security and if the agency head determines that provision
for such advance payments is in the public interest or in the interest
of the national defense and is necessary and appropriate in order
to procure required supplies or services under the contract.
(b) The terms governing advance payments may include as secu-
rity provision for and upon inclusion of such 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 depos-
ited and upon such of the material and other property. acquired for
performance of the contract as the parties shall agree.
WAIVER OF LIQUIDATED DAMAGES
SEc. 306. Whenever any contract made on behalf of the Government
by the agency head or by officers authorized by 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 empow-
ered to remit the whole or any part of such damages as in his discre-
tion 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 pro-
vided in subsection (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 paragrapi (10) of section
302 (c) shall be delegable only to a chief officer responsible for pro-
curement and only with respect to contracts which will not require the
expenditure of more than $25,000. The power of the Administrator
to make the delegations and determinations specified in section 302 (a)
shall be delegable only to the Deputy Administrator or to the chief
official of any principal organizational unit of the lGeneral Services
Administration.
(c) Each determination or decision required by paragraphs (10),
(11), (12), or (13) of section 302 (c), by section 304 or by section
805 (a) shall be based upon written findings made by the official
making such determination, which findings shall be final and shall
be available within the agency for a period of at least six years follow-
ing the date of the determination. A copy of the findings shall be
submitted to the General Accounting Office with the contract.
(d) In any case where any purchase or contract is negotiated pur-
suant to the provisions of section 302 (c), except in a case covered by
paragraphs (2), (3), (4), (5), or (6) thereof, the data with respect
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to the negotiation shall be preserved in the files of the agency for a
period of six years following final payment on such contract.
SEC. 308. No purchase or contract shall be exempt from the Act of
June 30, 1936 (49 Stat. 2036, as amended; 41 U. S. C. 35 to 45), or
from the Act of March 3, 1931 (46 Stat. 1494, as amended; 40 U. S. C.
276a to 276a-6), solely by reason of having been entered into pur-
suant to section 302 (c) hereof without advertising, and the provisions
of said Acts and of the Act of June 19, 1912 (37 Stat. 137, as amended;
40 U. S. C. 324 and 325a), if otherwise applicable, shall apply to such
purchases and contracts.
SEC. 309. As used in this title-
(a) The term "agency head" shall mean the head or any assistant
head of any executive agency, and may at the option of the Adminis-
trator include the chief official of any principal organizational unit
of the General Services Administration.
(b) The term "supplies" shall mean all property except land, and
shall include, by way of description and without limitation, public
works, buildings, facilities ships, floating equipment, and vessels of
every character, type and description (except the categories of naval
vessels named in section 3 (d) ), aircraft, parts, accessories, equipment,
machine tools and alteration or installation thereof.
STATUTES NOT APPLICABLE
SEC. 310. The following provisions of law shall not apply to the
procurement of supplies or services (1) by the General Services
Administration, or (2) within the scope of authority delegated by the
Administrator to any other executive agency :
Revised Statutes, section 3709, as amended (41 U. S. C. 5) ;
Revised Statutes, section 3735 (41 U. S. C. 13) ;
Sections 1 and 2 of the Act of October 10, 1940 (54 Stat. 1109, as
amended ; 41 U. S. C. 6 and 6a).
SEC. 401. Each executive agency having foreign excess property
shall be responsible for the disposal thereof : Provided, That (a) the
head of each such executive agency shall, with respect to the disposi-
tion of such property, conform to the foreign policy of the United
States; (b) the Secretary of State shall have the authority to use for-
eign currencies and credits acquired by the United States under section
402 (b) of this Act in order to effectuate the purposes of section
32 (b) (2) of the Surplus Property Act of 1944, as amended, and the
Foreign Service Buildings Act of May 7, 1926, as amended (including
Public Law 547, Seventy-ninth Congress (60 Stat. 663) ), and for the
purpose of paying any other governmental expenses payable in local
currencies, and the authority to amend, modify, and renew agreements
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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 Department
of State shall, except to such extent as the President shall otherwise
determine, continue to perform other functions with respect to agree-
ments for the disposal of foreign excess property in effect on the
effective date of this Act.
SEC. 402. Foreign excess property may be disposed of (a) by sale,
exchange, lease, or transfer, for cash, credit, or other property, with or
without warranty, and upon such other terms and conditions as the
head of the executive agency concerned deems proper ; but in no event
shall any property be sold without a condition forbidding its importa-
tion into the United States, unless the Secretary of Agriculture (in the
case of any agricultural commodity, food, or cotton or woolen goods
or the Secretary of Commerce (in the case of any other property3
determines that the importation of such property would relieve domes-
tic shortages or otherwise be beneficial to the economy of this country,
or (b) for foreign currencies or credits, or substantial benefits or the
discharge of claims resulting from the compromise or settlement of
such claims by any executive agency in accordance with the law,
whenever the head of the executive agency concerned determines that
it is in the interest of the United States to do so. Such property may
be disposed of without advertising when the head of the executive
agency concerned finds so doing to be most practicable and to be advan-
tageous to the Government. The head of each executive agency respon-
sible for the disposal of foreign excess property may execute such
documents for the transfer of title or other interest in property and
take such other action as he deems necessary or proper, to dispose of
such property; and may authorize the abandonment, destruction, or
donation of foreign excess property under his control which has no
commercial value or the estimated cost of care and handling of which
would exceed the estimated proceeds from its sale.
PROCEEDS, FOREIGN CURRENCIES
SEC. 403. Proceeds from the sale, lease, or other disposition of for-
eign excess property, (a) shall, if in the form of foreign currencies
or credits, be administered in accordance with procedures that may
from time to time be established by the Secretary of the Treasury, and
(b) shall, if in United States currency, or when any proceeds in for-
eign currencies or credits shall be reduced to United States currency,
be covered into the Treasury as miscellaneous receipts: Provided,
That the provisions of section 204 (b) (which by their terms apply
to property disposed of under title II) shall be applicable to proceeds
of foreign excess property disposed of for United States currency
under this title IV : And provided further, That any executive agency
disposing of foreign excess property under this title (1) may deposit,
in a special account with the Treasurer of the United States, such
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amount of the proceeds of such dispositions as it deems necessary to
permit appropriate refunds to purchasers when any disposition is
rescinded or does not become final, or payments for breach of any
warranty, and (2) may withdraw therefrom amounts so to be refunded
or paid, without regard to the origin of the funds withdrawn.
MISCELLANEOUS PROVISIONS
SEC. 404. (a) The President may prescribe such policies, not incon-
sistent with the provisions of this title, as he shall deem necessary, to
effectuate the provisions of this title, which provisions shall guide each
executive agency in carrying out its functions hereunder.
(b) Any authority conferred upon any executive agency or the
head thereof by the provisions of this title may be delegated, and
successive redelegation thereof may be authorized, by such head to
an official in such agency or to the head of any other executive agency.
(c) The head of each executive agency responsible for the disposal
of foreign excess property hereunder may, as may be necessary to
carry out his functions under this title, (1) subject to the civil-service
and classification laws, appoint and fix the compensation of personnel,
and (2) without regard to the civil-service and classification laws,
appoint and fix the compensation of personnel outside the continental
limits of the United States.
(d) The head of each executive agency responsible for the disposal
of foreign excess property under this title shall submit a report to
Congress in January of each year or at such other time or times as
he may deem desirable relative to its activities under this title, together
with any appropriate recommendations.
(e) There shall be transferred from the Department of State to each
other executive agency affected by this title such records, property
personnel, obligations, commitments, and unexpended balances of
appropriations, allocations, and other funds, available or to be made
available, as the Director of the Bureau of the Budget shall determine
to relate to functions of such agency under this title which have
heretofore been administered by the Department of State.
TITLE V-GENERAL PROVISIONS
SEC. 501. All policies, procedures, and directives prescribed-
(a) by either the Director, Bureau of Federal Supply, or the
Secretary of the Treasury and relating to any function transferred
to or vested in the Administrator, by the provisions of this Act ?
(b) by any officer of the Government under the authority 01
the Surplus Property Act of 1944, as amended, or under other
authority with respect to surplus property or foreign excess
property;
(c) byy or under authority of the Federal Works Administra-
tor or the head of any constituent agency of the Federal Works
Agency; and
(d) by the Archivist of the United States or any other officer
or body whose functions are transferred by title I of this Act,
in effect upon the effective date of this Act and not inconsistent here-
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with, 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. 602. (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 o Reorganization Plan Numbere 1 of 1947: Pro-
vided, That, with respect to the disposal under this Act of any
surplus real estate, all priorities and preferences provided for
in said Act, as amended, shall continue in effect until 12 o'clock
noon (eastern standard time), December 31, 1949-
(2) that portion of the Act entitled "An Act making supple-
mental appropriations for the Executive Office and sundry inde-
pendent executive bureaus, boards, commissions, and offices, for
the fiscal year 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. 878; 34 U. S. C.
546c) ;
(5) section 5 of the Act of July 11, 1919 (41 Stat. 67; 40 U. S. C.
811) ;
(6) the first and second provisos contained in the fifth para-
graph under the heading "Division of Supply" in section 1 of the
Act of December 20 1928 (45 Stat. 1030; 40 U. S. C. 311a) ;
(7) the Act entitled "An Act to authorize the Secretary of the
Army, the Secretary of the Navy, and the Secretary of the Air
Force to donate excess and surplus property for educational
purposes", approved July 2, 1948 (Public Law 889, Eightieth
Congress) ~
(8) section 203 of the Act of June 26, 1943 (57 Stat. 195, as
amended ; 5 U. S. C. 118d-1) ;
(9) the Act of April 15,1937 (50 Stat. 64; 5U. 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. 645), headed "Con-
tingent expenses, Department of Agriculture";
(11) the second proviso contained in the twentieth paragraph
of section 1 of the Act of March 2, 1917 (39 Stat. 973; 6 U. S. C.
494) ;
(12) the twenty-sixth paragraph under the heading "National
Parks" of the Act of January 24, 1923 (42 Stat. 1215; 16
U. S. C. 9);
(13) the fifth paragraph under the heading "Experiments and
demonstrations in livestock production in the cane-sugar and
cotton districts of the United States" of the Act of June 30, 1914
(38 Stat. 441; 5 U. S. C. 546) ;
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(14) the proviso contained in the second paragraph under the
heading "Library, Department of Agriculture" of the Act of
March 4,1915 (38 Stat. 1107; 5 U. S. C. 548)
(15) the second proviso contained in the second paragraph
under the heading Clothing and camp and garrison equipage"
of section 1 of the Act of August 29, 1916 (39 Stat. 635; 10
U. S. C. 1271) ;
(16) the Act of May 11 1939 (53 Stat. 739; 10 U. S. C. 1271a)
(17) the fifth paragraph under the heading "Office of the Chief
Signal Officer" of the Act of May 12, 1917 (40 Stat. 43, as
amended ; 10 U. S. C. 1272) ;
(18) the third proviso contained in the second paragraph under
the heading "Office of the Chief Signal Officer" of the Act of
March 4, 1915 (38 Stat. 1064; 10 U. S. C. 1273) ;
(19) the fourteenth paragraph under the heading "Smithso-
nian nstitution" of section 1 of the Act of March 3, 1915 (38 Stat.
839; 20 U. S. C. 66) ;
(20) the second paragraph under the heading "Government
hospital for the insane" of section 1 of the Act of August 1, 1914
(38 Stat. 649;241J. S. C. 173) ;
(21) the second paragraph under the heading "Saint Eliza-
beths Hospital" of section 1 of the Act of June 12, 1917 (40 Stat.
153; 24 U. S. C. 174);
(22) the proviso contained in the second paragraph under the
heading "Bureau of Supplies and Accounts" of the Act of August
22,1912 (37 Stat. 346; 34 U. S. C. 531a) ;
(23) the second proviso of the first paragraph under the head-
ing "Bureau of Yards and Docks" of the Act of August 29, 1916
(34 U. S. C. 532) ;
(24) the proviso contained in the second paragraph under the
heading "Maintenance, Quartermaster's Department, Marine
rps" of the Act of March 4, 1917 (39 Stat. 1189; 34 U. S. C.
7Q3);
(25) the twentieth paragraph under the heading "Bureau of
Mines" of section 1 of the Act of July 19, 1919 (41 Stat. 200; 40
U. S. C. 118) ;
(26) the first sentence of section 5 of the Act of March 4, 1915
(38 Stat. 1161; 41 U. S. C. 26) ;
(27) the third paragraph under the heading "Interstate Com-
merce Commission" of section 1 of the Act of August 1, 1914 (88
Stat. 627.49 U. S. C. 58) ;
M tie Act of June 6, 1941 (55 Stat. 247; 14 U. S. C. 31b) ;
section 4 of the Act of June 17, 1910 (36 Stat. 531; 41
U. S. C. 7);
(30) the Act of February 27, 1929 (45 Stat. 1341; 41 U. S. C.
7a, 7b 7c, and 7d) ;and
(31S section 1 of the Act of May 14, 1935 (49 Stat. 234; 41
U. S. C. 7c-1).
(b) The provisions of the first, third, and fifth paragraphs of section
1 of Executive Order Numbered 6166 of June 10, 1933, are hereby
superseded, insofar as they relate to any function now administered
by the Bureau of Federal Supply except functions with respect to
standard contract forms.
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(c) The authority conferred by this Act is in addition to any
authority conferred by any other law and shall not be subject to the
provisions of any law inconsistent herewith, except that sections 205
(b) and 206 (c) of this Act shall not be applicable to any Government
corporation or a ecy which is subject to the Government Corporation
Control Act (59 Stnat. W; 31 U. S. C. 841).
(d) Nothing in this Act shall impair or affect any authority of-
(1 the-President under the Philippine Property Act of 1946
(60 tat. 418; 22 U. S. C. 1381) ;
(2) any executive agency with respect to any phase (including,
but not limited to procurement, storage, transportation; process-
ing, and disposals 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 con-
duct of its business, coordinate its operations with the require-
ments of this Act and the policies and regulations prescribed
pursuant thereto;
(3) any executive agency named in the Armed Services Pro-
curement Act of 1947, and the head thereof, with respect to the
administration of said Act;
(4) the National Military Establishment with respect to prop-
ert 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 mate-
rials which the authorized procuring agency shall certify to the
Commissioner of Customs to be strategic and critical materials
procured under said Act may be entered, or withdrawn from
warehouse, free of duty;
(7) the Secretary of State under the Foreign Service Buildings
Act of May 7, 1926, as amended ;
(8) the Secretary of the Army, the Secretary of the Navy, and
the Secretary of the Air Force with respect to the administration
of section 1 (b) of the Act entitled "An Act to expedite the
strengthenin of the national defense", approved July 2, 1940
(54 Stat. 712 ;
(9) the Secretary of Agriculture or the Department of Agri-
culture under (A) the National School Lunch Act (60 Stat. 230) ;
(B) the Farmers Home Administration Act of 1946 (60 Stat.
1062) ; (C) the Act of August 31, 1947, Public Law 298, Eightieth
Congress, with respect to the disposal of labor supply centers
and labor homes, labor camps, or facilities; (D) section 32 of
the Act of August 24, 1935 (49 Stat. 774), as amended, with
respect to the exportation and domestic consumption of agricul-
tural products; or (E) section 201 of the Agricultural Adjustment
Act of 1938 (52 Stat. 36) or section 203 (j) of the Agricultural
Marketing Act of 1946 (60 Stat. 1082) ;
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[Pvn. Lew 16L
(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 resi-
dentiai property, or of other property (real or personal) held as
part of or acquired for or in connection with residential property,
or in connection with the insurance of mortgages, loans, or savings
and loan accounts under the National Housing Act;
(12) the Tennessee Valley Authority with respect to nonper-
sonal services, with respect to the matters referred to in section
201 (a) (4), and with respect to any property acquired or to be
acquired for or in connection with any program of processing,
manufacture, production, or force account construction : Provided,
That the Tennessee Valley Authority shall to the maximum extent
that it may deem practicable, consistent with the fulfillment of
the purpose of its program and the effective and efficient conduct
of its business coordinate its operations with the requirements
of this Act anA the policies and regulations prescribed pursuant
thereto ;
13) the Atomic Energy Commission ;
14) the Administrator of Civil Aeronautics or the Chief of the
Weather Bureau with respect to the disposal of airport property
and airway property for use as such property. For the purpose
of this paragraph the terms "airport property" and "airway prop-
erty" shall have the respective meanings ascribed to them in the
International Aviation Facilities Act (62 Stat. 450) ;
(15) the Postmaster General or the Postal Establishment with
respect to the means and methods of distribution and transporta-
tion of the mails, and contracts, negotiations, and proceedings
before Federal and State regulatory and rate-making bodies,
relating to the transportation of the mails;
(16) the United States Maritime Commission with respect to
the construction, reconstruction, and reconditioning (including
outfitting and equipping incident to the foregoing), the acquisi-
tion, procurement operation, maintenance, preservation, sale,
lease, or charter of any merchant vessel or of any shipyard, ship
site, terminal, pier, dock, warehouse, or other installation necessary
or appropriate for the carrying out of any program of such
Commission- authorized by law, or nonadministrative activities
incidental thereto : Provided, That the United States Maritime
Commission shall to the maximum extent that it may deem
practicable, consistent with the fulfillment of the purposes of
such programs and the effective and efficient conduct of such
activities, coordinate its operations with the requirements of this
Act, and the policies and regulations prescribed pursuant thereto;
Central Intelligence A enc
18) exeep as prove e sections (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
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procurement, utilization, or disposal of property under any such
law, whenever but only to the extent he deems such action neces-
sary to effectuate the provisions of title II; nor
(19) for such period of time as the President may specify any
other authority of any executive agency which the President deter-
mines within one year after the effective 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 insert-
ing in lieu thereof "$500".
AUTHORIZATIONS FOR APPROPRIATIONS AND TRANSFER AUTHORITY
SEC. 503. (a) There are hereby authorized to be appropriated such
sums as may be necessary to carry out the provisions of this Act.
(b) When authorized by the Director of the Bureau of the Budget,
any Federal agency may use, for the disposition of property under this
Act, and for its care and handling pending such disposition, any funds
heretofore or hereafter appropriated, allocated, or available to it for
purposes similar to those provided for in sections 201, 202, 203, and
205 of this Act.
SEPARABILITY
SEC. 504. If any provision of this Act, or the application thereof to
any person or circumstances, is held invalid, the remainder of this
Act, and the application of such provision to other persons or circum-
stances, 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 dispositio, of the affairs of the War Assets Administration) shall
become effective on June 30, 1949.
Approved June 30, 1949.
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alr
81ST CONGRESS SENATE I REPORT
1st Session No. 475
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES
ACT OF 1949
Mr. MCCLELLAN, from the Committee on Expenditures in the
Executive Departments, submitted the following
REPORT
The Committee on Expenditures in the Executive Departments,
having had under consideration the matter of Government property
management and the reorganization of certain Government agencies
in connection therewith, report the following bill (S. 2020) to sim-
plify the procurement, utilization, and disposal of Government prop-
erty, to reorganize certain agencies of the Government, and for other
purposes, and recommend that it do pass.
I. HISTORICAL BACKGROUND
The need for an efficient, businesslike system of property manage-
ment has long been recognized. In 1943 the House passed, and this
committee reported favorably, a bill (H. R. 2795) designed to fulfill
that need. While being considered that bill was overtaken by the
more immediate and special ;problem of disposing of our war surplus
without dislocating our national economy. In the end, the Con-
gress deferred action on long-range property management and, in-
stead, adopted the Surplus Property Act of 1944 limited in objective
to dealing with war-generated surplus and limited in life to 3 years
after the date of cessation of hostilities. That date will occur on
December 31, 1949.
In a special message dated March 5, 1948,-the President recom-
mended that the Congress renew consideration of Government prop-
erty management and directed the Federal Works Administrator to
submit a draft bill. Following the general pattern of that draft, this
committee unanimously reported out a bill termed the Federal Prop-
erty Act of 1948 (S. 2754, 80th Cong.) which would have provided a
S. Rept. 475, 81-1-1
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2 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
uniform system for property management. Due to the press of other
work, the Senate did not take up this bill before adjournment.
In the middle of February of this year the Federal Works Adminis-
trator, with the approval of the Director of the Bureau of the Budget,
acting on behalf of the President, presented again a draft bill for a
uniform property management system. That draft was substantially
the same as the prior bill--S. 2754, Eightieth Congress-and was in-
troduced in this Congress as S. 990. Simultaneously there was in-
troduced S. 991 designed to carry out the recommendations of the
Commission on Organization of the Executive Branch of the Govern-
ment for an Office of General Services-supply activities. In these
two bills most provisions are common, the important differences being
(a) the designation of the central housekeeping agency; (b) the treat-
ment of military procurement; (c) the inclusion in S. 991 of records
management, which was omitted from S. 990; and (d) the more de-
tailed and specific coverage of substantive matters in S. 990.
In the bill as introduced and reported herewith the committee has
,retained the common features of S. 990 and S. 991, and incorporated
the essential provisions of S. 597-a bill for the more economical
operation of the general supply fund. In the main, the committee has
adopted the substantive provisions of S. 990 and the organizational
structure provided for in S. 991, with modifications and additions
designed to make the resulting legislation more workable.
If. GENERAL STATEMENT
Six years ago the confused state of legislation dealing with Govern-
ment property management was described as follow
Efficient executive management of the Government's great and growing invest-
nlent in equipment, materials, and supplies, and the control of the Congress over
the use and disposition of such property are seriously handicapped by the lack of
comprehensive legislation. The essential foundation of management standards
in determining what and what quantities should be bought, and similar standards
to govern utilization are conspicuous by their absence. Although the accrual of
surpluses is an inevitable feature of the active operations of Government, the
determination and release of such surpluses are entirely within the discretion of
thousands of widely scattered executives * * * Even under normal con-
ditions the results of such a situation are apparent in excessive stocks, unneces-
sary duplication, lack of maximum utilization, unauthorized augmentation of
congressional appropriations by free transfer of cash equivalents from one to
another, heavy direct losses to the Treasury, and waste in other forms. (1943
report of the House Committee on Expenditures in the Exeeutiv. Departments
on H. R. 2795, quoted with approval in 1944 in the report of this committee on
the same bill.)
Leading off ' it11 report on an Office of General Services, the Com-
mission on Organization of the Executive Branch of the Government
has this to say on the subject:
Three major internal activities of the Federal Government now suffer from a
lack. of central direction. These are supply, records management, and the opera-
tion and maintenance of public buildings. These activities are carried on in
several places within the executive branch with varying degrees of adequacy.
While, as: &:: general rule, centralized direction is lacking, there are some instances
of the exact reverse of this situation in which operations are centrally controlled
down to. the smallest detail.
To the general public, the "housekeeping" activities listed above are little
known, but unless they are properly administered; the executive branch cannot be
effectively managed.
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
In the second part of the same report, relating to Federal supply
activities, the Commission starts by saying:
4The Federal Government runs one of the greatest supply businesses in the world.
It is spending more than $6,000,000,000 a year for new material, supplies, and
equipment for the regular activities of the civilian and military agencies. In addi-
tion, since 1941, the Federal Government has been engaged in enormous purchases
for export in connection with lend-lease and foreign-aid programs. It makes huge
purchases of strategic and critical materials from foreign sources, and imports
them for the national stock pile.
The Federal Government also has in storage, in the continental United States,
military and civilian inventories valued at $27,000,000,000. No one knows
accurately the total worth of Government personal property currently being
used, but its million or more motor vehicles, for example, have a value of at least
$2,000,000,000. The Government also pays out more than $1,000,000,000 yearly
for transportation of property, and $440,000,000 in salaries of the nearly 150,000
employees working in supply operations.
As recommended by the Commission on Government Organization,
the bill here reported establishes a General Services Agency, headed
by an Administrator directly and personally responsible to the Presi-
dent, who, in turn, is authorized to issue policies and directives which
shall govern the Administrator and all executive agencies. Also as
recommended by the Commission, there are transferred to the new
agency (a) the Bureau of Federal Supply of the Treasury Department,
which now has limited over-all responsibility for the procurement of
personal property and for the cataloging, supply, and utilization of
such property; (b) the National Archives Establishment, which now
has limited responsibility in the field of records management, mainly
having to do with the maintenance and preservation of historical
records; and (c) the Public Buildings Administration of the Federal
Works Agency, which provides and manages most office and ware-
house facilities for the Government. To round out this organizational
structure, the bill also transfers to the General Services Agency (a)
the War Assets Administration which, under present law, would be
liquidated on June 30 of this year and its functions scattered among
several agencies; and (b) all other functions of the Federal Works
Agency. These other functions of the Federal Works Agency like-
wise are of a service character and the committee feels that they
logically belong in any General Services Agency. These service
functions consist generally of the design and construction of public
buildings, the disposal of surplus real property, the conduct (in the
Public Roads Administration) of the Federal-aid road program and
the provision of roads for other agencies, the custody and maintenance,
on behalf of the National Military Establishment, of plants and
machine tools in the National Industrial Reserve, disaster relief, the
administration of certain functions of the water-pollution-control
program, etc. Management of the general services of the Govern-
ment cannot be conducted efficiently unless these responsible units
are brought under a common leadership and direction. In so doing,
and recognizing that this is a relatively new field for the Government,
the bill authorizes the Administrator to transfer, regroup, and dis-
tribute functions within the agency.
The Commission, in its report on the Department of Commerce,
has also recommended that the Public Roads Administration be trans-
ferred to that Department as an important component of a new aline-
ment of transportation, services (recommendation No. 7). The
committee has, however, withheld action on such transfer until some
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4 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
determination is made relative to the over-all program to be accepted
by Congress on the reorganization of the Department of Commerce,
.and on the proposed consolidation of transportation agencies.
Likewise, the bill also transfers the Bureau of Community Facilities
to the new General Services .Agency. The Hoover Commission has
recommended (recommendation No. 4, on the Department of the
Interior) that community services be centralized in general building
construction services. In the bill, the President is given authority to
continue the Bureau of Community Facilities within the new agency
for such time as he may determine, and the Congress should consider
this problem further in connection with related. reorganizations.
'While fixing management responsibility, the bill provides operating
machinery flexible enough to cope with the needs for specialized
service. For instance, the Secretary of Defense is authorized, unless
the President otherwise directs, to exempt the National Military
Establishment from uniform procurement whenever he deems such
exemption required in the interest of national security. Similarly
exempted from central control are the purchase and disposal of farm
products under programs conducted by the Department of Agriculture
for purposes of price support or stabilization. On the other hand, the
bill contemplates the continuation of centralized contracting for, pro-
curement and distribution of, supplies and services to meet the con-
solidated requirements of the executive agencies, and the use of such
facilities by other Federal agencies, where determined to be advan-
tageous to the Government. In other respects, the bill provides,
generally, for uniform policies and methods of procurement, supply,
and related functions. This is expected to stop the great losses pre-
viously incurred by the Government through competition of executive
agencies for the same articles in the same markets, unnecessary buying,
lack of quantity purchases, and other inefficiencies.
Equally great losses have been suffered by the Government through
purchasing of new articles by one agency when serviceable articles of
the same type are available in the inventories of other agencies and
excess to their needs. The bill is expected to stop these losses. It
provides a uniform system for the identification and classification of
property, and for the standardization of contract forms, specifications,
and procedures. It requires executive agencies to maintain reasonable
inventory levels and to establish adequate inventory controls. The
Comptroller General is authorized to prescribe principles and standards
for property accounting. The bill requires continuing surveillance by
every executive agency of the property under its control and it
authorizes the Administrator to make surveys of such property and
of property-management practices. Through these measures, the
committee believes that there can be, and, if efficiently administered,
that there will be maximum utilization of property already owned by
the Government and minimum purchasing of new property.
Again in line with the recommendation of the Commission on
Government Organization, the bill provides a central system relating
to traffic management, transportation, and other public-utility services
for the use of executive agencies.
As most of the objectives of the Surplus Property Act of 1944 have
largely been attained, the bill, in harmony with existing law, dispenses
with all priorities and preferences on personal property. The commit-
tee believes, however, that, from time to time, there will become
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FEDERAL PROPERTY AND. ADMINISTRATIVE SERVICES ACT
surplus to the Government, books, equipment, or other supplies the
sale of which would realize little monetary return but which would be
usable by and of great benefit to our schools and colleges. The bill
therefore authorizes the Administrator, in his discretion, to donate
such surplus property for educational purposes upon the recommen-
dation of the Federal Security Administrator. The committee
believes that the authority vested in the Federal Security Adminis-
trator is broad enough to authorize him to redelegate his authority to
some other person designated by him, and that the appropriate
designee in this specific instance would be the Commissioner of
Education.
Surplus real property generated by World War II is in a different
situation. Accordingly, the committee has retained priorities and
preferences with respect to the disposition of surplus real property,
including public benefit allowances for education, health, municipal
airports, public parks, and recreational purposes.
Title III extends to the General Services Agency the principles of
the Armed Services Procurement Act of 1947, with appropriate modi-
fications principally designed to eliminate provisions applicable.'
primarily to the military. The Administrator of General Services
under certain circumstances is also permitted to delegate to any
other executive agency, not named in the Armed Services Procurement
Act, authority, under certain circumstances, to make purchases and
contracts pursuant to the provisions of title III. This title provides
for the modernization of procurement methods and procedures. It
clarifies and preserves the formal advertising method of procurement,
but at the same time, under proper control, authorizes negotiation in
certain classes of cases. This title is designed to cope with future as
well as presently existing situations, and to constitute a comprehensive
code of procurement methods and procedures.
The committee believes that title III is substantially in accord with
the recommendation made by the Commission on Organization of the
Executive Branch of the Government in its Report on the Organization
and Management of Federal Supply Activities, that legislation be
enacted to apply the principles of the Armed Services Procurement
Act of 1947 to buying by all agencies, this authority, however, to be
lodged in the President (recommendation No. 2, p. 40, of the Combined
Report on Office of General Services, and Supply Activities). Title
III is substantially in accord with the report unanimously adopted by
the Procurement Policy Board of the War Production Board in the
fall of 1945 and in accord with legislation drafted by a special com-
mittee of the Procurement Policy Board.
Under the administration of the Department of State, most of the
surplus property generated in foreign areas as a result of World War II
has either been sold or has been committed for sale. The remaining
small inventory is widely dispersed and of specialized or technical
character; in most cases the cost of transportation back to this country
probably would exceed either the use value to the Government or the
sales return in the commercial market. Title IV of the bill deals with
this problem and provides that the agencies responsible for such prop-
erty shall dispose of it where located abroad, taking into consideration
the foreign policy of the United States. As a practical matter, this
means that the armed services will dispose of surplus property located
in foreign countries pursuant to policies established by the Secretary
of State.
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6 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
As stated above, existing :authority of the National Archives Estab-
lishment with respect to records management is considerably limited.
Accordingly, authority has been granted to the Administrator to sur-
vey and report to Congress what action is necessary to improve records-
management activities. The committee feels that this bill will
authorize the Administrator of General Services to make a start in this
field. Later, when this problem has been more thoroughly studied,
the Congress might enact new and broader legislation for records
management in line with the recommendation of the Commission on
Organization of the Executive Branch of the Government.
The committee feels very strongly that the economies resulting
directly from consolidation of agencies are and should be only a be-
ginning to the savings which will accrue to the Federal Treasury u?Ider
the bill. Many millions more can be and must be shaved from ex-
penditures for property management through merger of common
services and the resultant reduction of overhead and elimination of
duplicatory activities. Further, as previously noted, the maximum
use of Federal property by the Federal Government will, with efficient
administration, reduce procurement requirements to a minimum.
Except as noted hereinafter, the provisions of this bill are sub-
stantially identical with those of S. 1809, reported by the Committee
on Expenditures in the Executive Departments on May 9, 1949. The
changes of substance which have been made in this bill are the
following:
1. Agencies transferred to General Services Agency.--Sections 102 (a)
and 103 of S. 1809 would have transferred to the General Services
Agency, as organizational entities, the Bureau. of Federal Supply
of the Treasury Department, and the Public Buildings Administration
and the Public Roads Administration of the Federal Works Agency,
together with their respective functions, personnel, property, and
obligations. Sections 102 (a) and 103 of this bill transfer only the
Public Roads Administration to the General Services Agency as an
organizational unit. The other agencies named above will be abolished
as organizations, and their functions, personnel, property, and
obligations will be transferred to the General Services Agency, to be
administered there in such manner as the Administrator shall deter-
mine. This change has been made to conform more closely to the
recommendations of the Commission on Organization of the Executive
Branch of the Government, which stress the need for centralization
of authority and the maintenance of flexibility in the internal organi-
zation of an agency such as the General Services Agency.
2. Salaries of officers of General Services Agency.-Sections 101 (a),
102 (a), and 103 (d) of S. 1809 would have prescribed the salaries
payable to the Administrator and certain other officers of the General
Services Agency, such salaries to be fixed in accordance with the
provisions of other general legislation with respect to salaries of
Government officers and employees. Such provisions have been
omitted from this bill, and there has been substituted therefor a
new section 101 (e), which authorizes the President to fix the salaries
of such officers at rates, not in excess of $15,000 per annum in any
case, commensurate with the duties and responsibilities of their
respective offices.
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 7
3. Records management and transfer of National Archives.-Section
104 (a) of S. 1809 would have excepted from the functions of the
Archivist of the United States transferred to the Administrator of
General Services the functions of the Archivist under the act entitled
"An act to provide for the disposal of certain records of the United
States Government," approved July 7, 1943 (57 Stat. 380), as amended.
This bill (a) eliminates that exception, and (b) contains a now sub-
section 104 (c) authorizing the Administrator to survey Government
records and records m.anagem.ent, promote improved records manage-
ment practices, and report the results of such activities to the Congress
and to the Director of the Bureau of the Budget.
4. General supply fund.-This bill contains in section 502 (a) three
new paragraphs, (29), (30), and (31), which repeal cert%in existing
statutes governing the present general supply fund administered by
the Treasury Department. In substitution therefor, this bill adds a
new section 109 which establishes a new general supply fund of the
kind contemplated by S. 597. The new fund will consist of the assets
of the present fund, and such additional sums as the Congress may
appropriate, but shall not exceed $100,000,000. Such fund (a) shall
be available for use by the Administrator as a revolving fund in the
procurement of personal property and nonpersonal services for use by
Federal agencies, mixed-ownership Government corporations, the
District of Columbia, and certain non-Federal agencies, and (b) shall
be audited annually by the Comptroller General, who shall report to
the Congress the result of each such audit. Requisitioning agencies
shall pay for property and services so procured by advances or reim-
bursements made by them to the fund. Until July 1, 1950, prices for
such property and services shall be fixed in accordance with present
law and practice. Thereafter, there shall be excluded from the
prices charged Federal agencies all elements of cost for indirect or
overhead expenses of the General Services Agency (as ascertained by
the Administrator with the approval of the Director of the Bureau of
the Budget) and such expenses shall be paid out of appropriated funds.
Prices charged other requisitioning agencies may, however, include
cost elements for such indirect or overhead expenses.
5. Surplus property disposals for educational and public health pur-
poses.-Paragraph (1) of subsection 502 (a) of S. 1809 provided for
the indefinite continuation of certain provisions of the Surplus Prop-
erty Act of 1944, as amended, including (a) section 13 (a), providing
for the disposal of surplus property to States, local subdivisions there-
of, and certain nonprofit institutions for educational and public
health purposes, and (b) provisions establishing priorities and prefer-
ences governing the disposal of real estate under that act. Such pro-
visions have been omitted from this bill, and there has been substi-
tuted therefor a new paragraph (1) in subsection (k) of section 203.
The new paragraph authorizes the Administrator of General. Services
to assign surplus real estate to the Federal Security Administrator
for transfer to States, local subdivisions thereof, and certain non-
profit institutions for educational and public health purposes, subject
to the disapproval by the Administrator within 30 days after notice
to him of any such contemplated transfer. Specific provision is made
for the continuance under this paragraph of the "public benefit allow-
ances" heretofore granted to such transferees under the Surplus
Property Act of 1944. The net effect of this change is to carry over
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~S FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
into the bill as permanent legislation the substance of comparable pro-
visions of the Surplus Property Act of 1944, but to clarify in some
particulars the language employed for that purpose and to simplify
the rigid priority system established by that act in the interest of
economy in administration.
6. Exemptions from terms of act. -In paragraph (17) of subsection
502 (d) the Central Intelligence Agency has been added to the list
of agencies whose existing statutory authority is not to be affected
by the enactment of the bill.
The bill commences with a short title styled the "Federal Property
and Administrative Services Act of 1949," following which is a table
of contents.
Section 2. Declaration of policy
This is very brief and states the intent of the Congress to provide
for the Government an economic and efficient system for (a) the pro-
curement and supply of personal property and nonpersonal services
and performance of related functions; (b) the utilization of available
property; (c) the disposal of surplus property; and (d) records manage-
ment. Other sections of the bill implement items (a), (b), and (c)
by consolidating the present scattered property functions and by
providing a new uniform charter for property management. Item
(d) is implemented only by the transfer of the National Archives
Establishment to the General Services Agency. Additional legisla-
tion will be necessary to establish an effective system of records
management. Such a system, however, should be built around the
National Archives Establishment, and should be administered in the
General Services Agency, so that this transfer is a logical first step
toward its creation.
Section 3. Definitions
Several definitions require special note. "Property" includes all
interests in property except the public domain and the major classes
of naval vessels. "Excess property" means any property under the
control of any Federal agency not required for its needs and responsi-
bilities as determined by the head thereof. "Surplus property"
means any property which has been declared excess by a particular
Federal agency and which, after a survey of the needs of other Fed-
eral agencies, is determined by the Administrator of General Services
no longer to be required by the Federal Government as a whole.
Section 101. General Services Agency
(a) Establishment of General Services Agency.-This subsection
provides for the establishment in the executive branch of the Govern-
ment of a new agency to be known as the General Services Agency.
(b) Administrator of General Services.-This subsection provides
that the new agency shall be headed by a new officer of the Govern-
ment, entitled "Administrator of General Services," to be appointed,
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after the enactment of this legislation, by the President by and with
the advice and consent of the Senate.
(c) Deputy Administrator.-This subsection provides for a Deputy
Administrator to be appointed by the Administrator. The Deputy
Administrator will perform such functions as the Administrator may
designate and be Acting Administrator during the absence or disability
of the Administrator and (unless the President designates another
officer to serve as Administrator) in the event of a vacancy in that
office.
(d) Performance of functions pending first appointment.-This sub-
section provides that, pending the first appointment of an Administra-
tor, his functions shall be performed, temporarily, by such officer as
the President shall designate.
(e) Compensation of Administrator, Deputy Administrator, heads
and assistant heads of the principal organizational units.-This section
authorizes the President to establish the rate of compensation for the
Administrator, Deputy Administrator, the heads and assistant heads
of the principal organizational units, at such rates as he shall deem to
be commensurate with their duties and responsibilities. A limitation
has been inserted so that the salary of any one of these officials shall
not exceed $15,000 per annum.
Section 102. Abolition of Bureau of Federal Supply and transfer of
contract-settlement functions
(a) Transfer of functions of the Bureau of Federal Supply.-This sub-
section provides for transferring to the General Services Agency the
functions, records, and personnel of the Bureau of Federal Supply,
now in the Department of the Treasury, and for vesting in the Ad-
miaistrator of General Services the functions of Treasury personnel
relating to the Bureau of Federal Supply.
It also provides for abolishing the Bureau of Federal Supply, thereby
permitting the Administrator of General Services to establish such
organization as he deems necessary.
The Bureau of Federal Supply has been in the Department of the
Treasury since 1933 and exercises central procurement functions for
the executive branch of the Government. Its functions are not essen-
tially related to the primary fiscal and tax functions of the Depart-
ment of the Treasury so that the Bureau may readily be severed
from the Department without impairment of the Department's effi-
ciency. Functions of the Secretary of the Treasury transferred to
the General Services Agency include all functions vested in him by
law, but performed by the Bureau for him under appropriate delega-
tion; for example, stock piling under Strategic and Critical Materials
Stock Piling Act (60 Stat. 596) and functions of over-all supervision
and review of the performance of Bureau functions incidental to his
position as head of the Department.
(b) Transfer of contract-settlement _functions.~-This subsection pro-
vides for transfer to the Administrator of General Services of the
functions, transferred to the Secretary of the Treasury a little over
2 years ago, of the Director of Contract Settlement and the Office
of Contract Settlement created by the Contract Settlement Act of
1944 (58 Stat. 649; 41 U. S. C. 101-125). These functions relate to
the establishment of uniform policies and procedures for the settle-
ment of terminated war contracts by Government contracting agencies
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and, because of the almost complete liquidation of the contract termi-
nation program, are now routine and insignificant. Such little work
as has been recently required in. connection with this program has
been carried on in the Treasury primarily by the Bureau of Federal
Supply. It would be in the interest of good management to have this
Bureau continue to wind up that program. This subsection likewise
transfers from the Treasury to the General Services Agency the Appeal
Board and the Contract Settlement Advisory Board also created by
the Contract Settlement Act of 1944. This transfer is for housekeep-
ing purposes only. The Secretary of the Treasury does not, nor will
the Administrator of General Services, review decisions of the Appeal
Board which will perform its functions under conditions and limita-
tions prescribed by law.
(c) Functions retained in the Treasury.-This subsection permits
the Bureau of the Budzet to retain in the Treasury Department
certain minor functions of the Bureau of Federal Supply, for example,
as to printing, which properly pertain to the Treasury Department.
Section 108. Transfer of affairs of the Federal Works Agency
(a) Transfer functions and constituent organizations.--This subsection
provides for the transfer of the Public Roads Administration, together
with its functions, records, and personnel to the General Services
Agency. All other functions, records, personnel, and funds of the
Federal Works Agency, Federal. Works Administrator, and Com-
missioner of Public Buildings are transferred to the Administrator of
General Services.
(b) Abolition of Federal Works Agency.--This subsection abolishes
the Federal Works Agency, Public Buildings Administration, Office
of the Federal Works Administrator, Office of the Commissioner of
Public Buildings, and the Office of the Assistant Federal Works
Administrator.
(c) Continuation of Bureau of Community Facilities.-This subsec-
tion provides that the President may continue the Bureau of Com-
munity Facilities of the Federal Works Agency as a constituent of the
General Services Agency for such time as he may determine.
Section 104. Records management: Transfer of the National Archives
(a) Transfer of the National Archives Establishment.-This sub-
section transfers to the General Services Agency the functions, records,
and personnel of the National Archives Establishment, and to the
Administrator of General Services the functions of the Archivist of the
United States.
(b) Transfer of National Archives Council and other bodies.--This
subsection transfers to the General Services Agency the National
Archives Council, the National Historical Publications Committee,
the National Archives Trust Fund Board, the Board of Trustees of
the Franklin D. Roosevelt Memorial Library, and the Administration
Committee of the Federal Register, . and provides that the authority
of the Administrator under section 106 shall not extend to those bodies
or their functions.
(c) Surveys of Government records.-This subsection authorizes the
Administrator to make surveys of Government records, records
management, disposal practices, and obtain reports on records and
disposal procedures from Federal agencies. The Administrator is
authorized to promote improvements in records management, storage,
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
and disposition of records and to report to Congress and to the Director
of the Bureau of the Budget the results of such activities.
Section 105. Transfer for liquidation of the affairs of the War Assets
Administration
This section provides for the liquidation of the affairs of the War
Assets Administration as an agency and transfers its remaining func-
tions, and its records, property, personnel, obligations, and commit-
ments to the General Services Agency. It also permits the retention
of certain special assistants and other experts now holding appoint-
ments without regard to the provisions of the civil-service laws and
the Classification Act of 1923, as amended, and their appointment to
similar positions.
The retention in employment and the status of other personnel
transferred from War Assets Administration to the General Services
Agency will be governed by applicable provisions of existing law.
Section 106. Redistribution of functions
Under this section the Administrator of General Services, in order
effectively to perform the functions vested in him under the terms of
this bill, is authorized to regroup and distribute within the Agency,
functions transferred to or vested in him by the bill, and, with ap-
proval of the Director of the Bureau of the Budget, to make appro-
priate transfers of funds in connection therewith. Approval of the
Director is required in order to assure that funds are expended for
the purpose for which they were appropriated, but it is not intended
to give him a veto power over the Administrator so far as the
organization of the Agency is concerned.
Section 107. Transfer of funds
(a) This section transfers to the General Services Agency for ac-
tivities under the bill the appropriations, allocations, or other funds
available to the Department of the Treasury, the War Assets Admin-
istration, the Federal Works Agency, and the National Archives
Establishment for the functions transferred.
(b) Transfer of functions of other agencies.-This subsection pro-
vides that in the event that any other Federal agency, or any of its
components, which are not specifically identified in this bill, are
transferred to the General Services Agency, the functions, records,
personnel, and funds of such organizations shall be transferred to the
General Services Agency.
Section 108. Status of transferred employees
This section ,provides that, subject to other provisions of this title
relating to personnel, employees transferred shall be deemed to be
employees of the General Services Agency so as not to require
reappointment.
Section 109. General supply fund
(a) This subsection reconstitutes the existing general supply fund
for use by or under the direction of the, Administrator. It establishes
a ceiling on the capital of the fund and increases the present authorized
capital by the amount of surplus therein at the end of the fiscal year
1949, varying for that fiscal year the rule that the surplus found in the
fund as of June 30 be covered into the Treasury as miscellaneous re-
ceipts. The subsection continues the general purposes for which the
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fund may be used, providing specifically for its availability for procur-
ingersonal property (including the purchase from or through the
Public Printer of standard forms and blankbook work for field ware-
house issue) and nonpersonal services for the use of Federal agencies in
the proper discharge of their responsibilities, and for paying all ele-
ments of cost of the procurement, handling, and distribution thereof
except, effective July 1, 1950, those elements of cost which are deter-
mined to be indirect or overhead costs. The authorizations to use the
fund to procure standard forms and blankbook work from the Public
Printer and to make the fund's facilities available to all Federal agen-
cies should contribute to the extension of the benefits of centralized
procurement to all cases where such methods are more efficient and
economical.
In eliminating the indi ect end overhead costs from the costs which
may be charged to the fund, cognizance has been taken of the recom-
mendations of the Commission on Government Organization that the
present surcharge on the price of commodities purchased centrally be
eliminated and that the administrative costs of the central procure-
ment agency be paid through direct appropriation. The provisions
of this subsection are the result of an effort to find a practical solution
of the problem of the surcharge. It is intended that the general supply
fund be used to pay only those elements of cost directly applicable to
its procurement, handling, and distribution activities, such as the pur-
chase price and transportation to first storage point of supplies and
services; the cost of equipment and material used exclusively in the
handling, repair, and distribution of supplies; breakage, shrinkage, and
other inventory losses; the costs of personal services of personnel em-
ployed in contracting and processing of orders for, and inspecting on
receipt of, supplies purchased from the fund; and the cost of direct
labor employed on the warehousing and distribution activities of the
fund. Other costs, such as general supervisory, clerical and account-
ing costs, office and miscellaneous equipment and supplies, which are
not incurred directly in connection with the procurement, handling,
and distribution of supplies and services purchased from the fund will,
as determined by the Administrator with the approval of the Director
of the Bureau of the Budget, be budgeted and provided for by direct
appropriation.
. (b) This subsection provides for the fixing of prices of supplies and
services sold from the General Supply Fund under the laws and regu-
lations now applicable until July 1, 1950, and thereafter on the basis of
recovering only the direct costs as outlined in connection with subsec-
tion (a) above. Reimbursement procedures are simplified by giving
increased scope to the advance payment method of financing purchases
from the fund, and by substantially reducing certain cumbersome and
costly alternative procedures. The revised reimbursement procedures
give effect, to the fullest extent practicable, to sound accrual account-
ing principles so that the books of the purchasing agencies will more
accurately reflect the value of supplies and services actually received,
and thus further the program which is under way to improve account-
ing throughout the Government. Prompt processing of reimburse-
ments is essential to the successful operation of the program. To
insure against undue delay, provision is made for reimbursement of the
fund by transfer and counterwarrant if payment is not made by a requi-
sitioning agency within 45 days after billing.
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FEDERAL PROPERTY AND ADMINISTRA7{IVE SERVICES ACT 13
(c) This subsection provides that the general supply fund shall be
credited with all reimbursements, advances, and refunds relating to
supplies or services procured through the fund, including the net pro-
ceeds of disposal of surplus property of the fund. It substantially
reenacts existing law. Since the general supply fund is a revolving
fund, it is appropriate that these moneys be so credited in the interest
of smoothness of its operation and to avoid its depletion.
(d) Under this subsection the most effective utilization of cash
resources of the fund is provided for, by authorizing the establishment
of a special deposit account into which all advances and fund receipts
may be deposited, and from which payments may be made imme-
diately. Under this simplification of the present collection and dis-
bursement procedures applicable to the fund, cash will be available
for use promptly after collection, without sacrificing any necessary
controls.
(e) This subsection alters the previous requirement that all surplus
in the fund, as determined in the annual audit by the Comptroller
General, must be covered into the Treasury as miscellaneous receipts,
by permitting losses incurred by the fund in prior years, as well-as all
assets and liabilities, to be considered in ascertaining the amount of
such surplus. This change takes cognizance of the fact that such prior
losses represent impairments of the fund capital, unless made good from
earnings, and also will counteract any tendency to establish prices at
too high a level. Als-_), there is added the requirement that the Comp
troller General report to the Congress annually the results of the audit.
Such reports, and his recommendations as to the status and operations
of the fund, should be helpful to the Congress in its consideration of
supply activities.
(f) This subsection makes the procurement facilities of the fund
available to mixed-ownership Government corporations, to the munici-
pal government of the District of Columbia, and, in certain cases, to
non-Federal agencies, but requires that prices charged for supplies
furnished these agencies shall be fixed at levels estimated by the
Administrator to be sufficient to recover, in addition to the direct
costs, the indirect costs determined by the Administrator to be allo-
cable thereto. It is contemplated that a minimum of increased work
will be entailed by the different treatment of agencies procuring under
this subsection, considering the provision for cost estimates. The
entire amount of reimbursements by such agencies will be deposited
into the fund, subject to annual covering into miscellaneous receipts
of any surplus which may remain in the fund at the close of the fiscal
year. To the extent applicable, all the other features of subsections
(a) to (e), inclusive, will govern procurements under this subsection.
This deals with the subject of property management within the
United States.
Section 201. Procurement, warehousing, and related activities
(a) Centralized control.-This subsection authorizes the Administra-
tor of General Services, where it is advantageous to the Government,
to regulate the policies and methods of executive agencies with respect.
to the procurement and supply of personal property and nonpersonal
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14 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
services, including related functions such as contracting, inspection,
storage, issue, specifications, property identification and classification,
transportation and traffic management, management of public-utility
services, repairing and converting, and establishment of forms and
procedures. The Administrator may himself procure such personal
property and nonpersonal services and perform such related functions,
may consolidate and operate or arrange for the operation of suitable
warehouses, repair shops, and similar facilities, and may represent
executive agencies in negotiations with, and in proceedings before,
regulatory bodies involving carriers and other public utilities.
The Administrator is authorized to negotiate contracts for public-
utility services, for agencies and departments, where it is deemed ad-
vantageous to the Government, for periods in excess of 1 year but
not exceeding 10 years.
The provisions with respect to traffic management and management
of public-utility services, and representation are not intended to
abrogate any authority of the Department of Justice with respect to
legal proceedings. This authority over procurement matters vested
in the Administrator is a restatement of authority currently exercised
by the Bureau of Federal Supply, except that the control over the
purchases of wholly owned Government corporations is new, and that
the relationship with the National Military Establishment is some-
what changed. The Secretary of Defense is authorized, unless the
President shall otherwise direct, to exclude procurement for the
National Military Establishment from control of the Administrator
where the Secretary deems exclusion in the best interest of national
security. Combat equipment and other items of peculiar importance
to the armed forces could thus readily be excluded by the Secretary
of Defense. At the same time, the Administrator would be in a
better position to serve the armed forces more fully in meeting their
other supply requirements, and he can appeal to the President if he
thinks the Secretary of Defense has wrongly excluded him from any
field.
(b) Services to the legislative and judicial branches, and mixed-
ownership corporations.-This subsection authorizes the Administrator
upon the request of any agency in the legislative or judicial branches
of the Government, or of any mixed-ownership Government corpora-
tion, or of the District of Columbia, to purchase, warehouse, and dis-
tribute personal property and nonpersonal services to meet their needs.
Government economy will be furthered by allowing these organiza-
tions, supported in whole or in part by the Federal Government, to
take advantage of savings in procuring supplies which the Adminis-
trator can provide through the operation of a central procurement
system.
It is believed that with the exceptions provided in the bill, the system
of centralized procurement, strengthened by the statutory support
which the bill provides, will prove its efficiency and economy in the
years to come. This does not mean that every item must be procured
by a central agency, but only that such an agency must be responsible
for determining how every item shall be procured, and for prescribing
the manner of procurement which is best under the circumstances.
(c) Application of trade-in allowances.-This subsection authorizes
executive agencies to exchange or sell personal property and apply the
trade-in allowance or proceeds of sale in whole or part payment for
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 15
property acquired where such exchange is the common commercial
practice. This is an expansion of authority given under a number of
existing statutes to specific agencies or with respect to specific types
of property.
Section 202. Property utilization
This section deals with the most important phase of property
management, which is continuing use by the Government of the
Government's property.
(a) Over-all direction of Administrator of General Services.-This
subsection fixes upon the Administrator of General Services the over-
all responsibility to prescribe the policies and methods to promote
the greatest use in the entire executive establishment of property
which is excess to the needs of one particular establishment and also
to provide for the transfer of such property among Federal agencies.
(b) Responsibility of executive agencies to survey property.-This
subsection imposes upon each executive agency the responsibility,
in the first instance, (1) to maintain adequate inventory controls and
accountability systems for its property (see also sec. 205 (b)), (2)
to survey its property continuously to determine which is excess to
its needs and promptly report excess property to the Administrator,
(3) to care for such excess property, and (4) transfer or dispose of
such property in accordance with authority delegated and regulations
prescribed by the Administrator.
(c) Responsibility of executive agencies to use property.-This sub-
section similarly imposes upon each executive agency the responsibility,
in the first instance, to reassign property among activities within such
agency, to transfer its excess property to other agencies, and to obtain.
for its use property which is excess to the needs of other agencies.
(d) Transfer of property within National Military Establishment.
This subsection permits the free transfer of excess property among the
Departments of the National Military Establishment under existing
provisions of law and procedures defined by the Secretary of Defense.
(e) Terms for transfer of excess property.-This subsection generally
requires that transfers of excess property between Federal agencies
shall be at the fair value thereof, as determined by the Administrator
of General Services. Exceptions are made in the case of a transfer
for general distribution among Federal agencies or for disposal as
surplus property or where such transfer without reimbursement is
otherwise authorized by recent legislation. "Transfers for redistribu-
tion to other Federal agencies" refers to instances where property is
turned over to the Bureau of Federal Supply for redistribution rather
than transferred direct for the use of another agency. When the re-
distribution occurs the transfer should be at fair value.
(f) Transfer of property within an agency.-Under this subsection
transfers of property among activities financed by different appro-
priations to the same agency must be reported to the Director of
the Bureau of the Budget and, in turn, reported to the Congress.
(g) Assignment of office and warehouse space.-This subsection
clarifies and st:rengtliens existing law by authorizing the Administrator
of General Services to assign and reassign space in excess real property
to any Federal agency for office, storage, or related facilities. He
may obtain reimbursement for such assignment in the absence of an
appropriation available to him therefor. It is expected that operations
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16 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
under this subsection can and should materially lessen the present
leasing 9f space for Government use in private office buildings.
(h) Abandonment or donation of property.---This subsection author-
izes the abondonment, destruction, or donation to public bodies, of
property having no commercial value, or the estimated proceeds from
its sale.
Section 203. Disposal of surplus property
(a) Responsibility of General Services Administrator.--This sub-
section provides that the General Services Administrator shall have
supervision and direction over the disposition of property surplus
to the needs of the entire Government.
(b) Care and handling of surplus property.-This subsection pro-
vides that the care and handling of surplus property pending its
disposition, and the disposal of surplus property, may be performed by
the General Services Agency or any executive agency designated by
the Administrator. An agency other than the one in possession,
however, cannot be designated to perform care and handling or dis-
posal without its consent. _
(c) Terms of disposal.-This subsection provides that any agency
disposing of surplus property may do so by sale, exchange, lease,
permit, or transfer, for cash, credit, or other property, with or without
warranty, and may execute such documents for the transfer of the
property as may be necessary.
(d) Title of transferees.-This subsection is designed to protect the
interest of bona fide grantees or transferees. It makes instruments
purporting to transfer title or other interest in surplus property under
this act, which are executed by an executive agency, conclusive evi
dence of compliance with the provisions of the act in the absence of
notice of defects.
(e) Advertising for bids.--This subsection provides that surplus
property disposals may be made without regard to provisions of
existing law for advertising, unless otherwise determined by the
Administrator, until December 31, 1950. Thereafter, advertising
and competitive, bids will be required in disposing of such amount,
of surplus real property generated by World War II as is not sold by
that date.
(f) Adjustments for contractor inventories.-This subsection provides
that contractors or subcontractors with executive agencies may be
authorized to retain or dispose of their contractor inventories.
(g) Consultation with Secretary of Agriculture.-This subsection
requires the Administrator to consult with the Secretary of Agriculture
in formulating policies for the disposal of surplus agricultural com-
modities, surplus food processed from agricultural commodities, and
surplus cotton and woolen goods, and further requires that such
policies shall be formulated to prevent surplus agricultural commodi-
ties or surplus food products from being dumped on the market in
such manner as to disrupt the market prices for agricultural com-
modities.
(h) Disposal of agricultural commodities.-This subsection requires
the Administrator to transfer to the Department of Agriculture with-
out charge, any surplus agricultural commodities, foods, or cotton or
woolen goods, whenever the Secretary determines it necessary in
carrying out his responsibilities with respect to price support or
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 17
stabilization, and further requires that the receipts from disposals
by the Department of Agriculture shall be deposited pursuant to
authority available to the Secretary of Agriculture and the net proceeds
of sales of property so transferred shall be credited pursuant to the
provisions relating to proceeds in section 105 (b). It also provides
that, except when sold for export, surplus farm commodities so trans-
ferred may not be sold in quantities in excess of or at prices less than
those relating to such commodities when sold by the Commodity
Credit Corporation.
(i) Disposal of vessels for merchant use.-This subsection establishes
the United States Maritime Commission as the statutory disposal
agency for surplus vessels of 1,500 gross tons or more, which it deter-
mines to be merchant vessels or capable of conversion to merchant
use. Such vessels are to be disposed of in accordance with the Mer-
chant Marine Act of 1936 and other laws relating to the sale of such
vessels.
(j) Donations for educational purposes.-This subsection authorizes
the Administrator of General Services, in his discretion, to donate
surplus personal property usable for educational purposes as deter-
mined by the Federal Security Administrator, who shall allocate such
property on the basis of needs and utilization for transfer by the Ad-
ministrator of General Services, either direct or through State depart-
ments of education, to tax-supported and nonprofit school systems,
schools, colleges, and universities. Provision is also made for allo-
cation by the Secretary of Defense for transfer by the Administrator
to educational activities of special interest to the armed services,
such as maritime academies or military or naval preparatory schools,
of surplus property of the National Military Establishment which the
Secretary determines to be usable for such acti` ities. It is expected
that the Federal Security Administrator will delegate to the United
States Commissioner of Education authority to make determinations
and allocations under his general supervision, and that the Secretary
of Defense will similarly delegate to an appropriate official his au-
thority under this subsection.
(k) Transfers of surplus real property, for public use.-(1) Under the
Surplus Property Act of 1944, as amended, surplus real property has
been transferred for public health and educational purposes subject
to a public-benefit allowance to States and political subdivisions
thereof and to tax-supported or nonprofit educational and medical
institutions which have been held exempt from taxation under section
101 (6) of the Internal Revenue Code. This paragraph authorizes
the Administrator in his discretion to assign to the Federal Security
Administrator for disposal to such organizations surplus real property
which has been recommended by the Federal Security Administrator
as being needed for public health and education. It further provides
that the Federal Security Administrator in fixing the sale or lease
value of such property shall take into consideration any benefit
which has accrued or may accrue to the United States from the use
of such property by any eligible State, political subdivision, instru-
mentality, or institution.
(2) Under the Surplus Property Act of 1944, as amended, surplus
property has been transferred, and under this act will continue to be
transferred, to States and political subdivisions thereof, and to tax-
supported or nonprofit educational and medical institutions for
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18 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
specified uses, subject to various conditions and reservations. This
paragTaph would permit the head of the interested Government
agency, subject to disapproval by the General Services Administra-
tor, to enforce compliance with such terms, conditions, or reservations;
to reform, correct, or amend the instruments of transfer by which
such conditions or reservations are imposed; and to grant releases
(including conveyances by quitclaim deed, in the case of real estate)
from such conditions, reservations, and restrictions to the original
transferee or to another eligible user. Such releases are to be con-
ditioned upon findings that the property no longer serves the purpose
for which the transfer was made or that release will not prevent ac-
complishment of the purpose of such transfer, and upon such other
conditions as may be necessary to protect or advance the interests of
the United States.
(1) Abandoned property.-Authorizes the Administrator to take
possession of abandoned and other unclaimed property on Govern-
ment premises 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 will have 3 years from the date of
vesting of title in the United States to file claim and if such claim
is found proper are to be paid the proceeds realized from the disposi-
tion of the property, or, if the property is used or transferred, its fair
value as of the time title 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. It is
contemplated that if such property is utilized or transferred its fair
value will be paid by the receiving agency in line with the provisions of
section 202 (e), and that such amounts and proceeds realized from
dispositions will be covered into the Treasury as miscellaneous receipts
pursuant to section 204 (a). Under other authority in the bill
appropriations may be made for payment of any claims presented by
the rightful owners.
Section 204. Proceeds from transfer or disposition of property
(a) Deposit of proceeds into miscellaneous receipts.-This subsection
requires all proceeds from the transfer of excess property to a Federal
agency or from the sale, lease, or other disposition of surplus property
to be covered. into the Treasury as miscellaneous receipts, with the
exceptions noted in subsections (b), (c), and (d).
(b) Crediting of reimbursable funds.-This subsection provides that
in cases where the property was acquired by funds either not appro-
priated from the general fund of the Treasury, or appropriated there-
from and by law reimbursable from assessments, taxes, or other
revenues, the net proceeds of the disposition or transfer of such
property shall be credited to the reimbursable fund or appropriation
or paid to the Federal agency declaring such property excess. It
further provides that the proceeds shall be credited to miscellaneous
receipts if the agency declaring the property excess shall deem it
uneconomical or impracticable to ascertain the amount of net
proceeds.
(c) Refunds to purchasers.--This subsection provides that Federal
agencies disposing of surplus property may deposit in a special
account with the Treasury whatever amounts they deem necessary
to permit refunds to purchasers when any disposition is rescinded, or
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 119
for'breaches of warranty, and to withdraw the amounts so to be
refunded or paid.
(d) Proceeds from contractors' sales.-This subsection recognizes
that the contractual provisions authorizing the proceeds of sales of
property to be credited to price or cost of the work covered by the
contract, are controlling and are not subject to the requirements of
the act relating to covering proceeds into the Treasury as miscellaneous
receipts.
(e) Management of credit and security.-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 authorizes him to en-
force, adjust, and settle the rights of the Government with respect
thereto.
Section 205. Policies, regulations, and delegations
(a) Presidential policies.-By reason of the impact of this legisla-
tion upon all agencies in the executive establishm.ent, this subsection
authorizes the President, if he deems it advisable, to prescribe over-all
policies and directives to govern the Administrator of General Services
and executive agencies in operations under this act.
(b) Property accounting systems.-This subsection requires the
Comptroller General, after considering the needs and requirements
of 'executive agencies, to prescribe principles and standards of account-
ing for property, to cooperate with the Administrator of General
Services and the executive agencies in developing property accounting
systems, to approve satisfactory systems, to examine agency systems
to determine the extent of compliance with principles, standards, and
approved systems, and to report to the Congress cases of failure to
comply therewith or adequately to account for property.
This is more flexible and vests more authority in the operating
agencies than the recent independent offices appropriations acts, which
prohibit the several agencies there named from installing or main-
taining any property accounting system not prescribed or approved
by the Comptroller General. The committee urges cooperation
between the Comptroller General and other agencies in order that
operating needs and costs may be fully considered. This section
applies to all executive departments and agencies, with the exception,
as provided in section 502 (c), of corporations and agencies subject
to the Government Corporation Control Act.
(c) Regulations of the Administrator.-This subsection requires the
Administrator to prescribe regulations for the effectuation of his
functions under the act, and also requires the head of each executive
agency to issue such orders and directives as are necessary to carry out
such regulations.
(d) Delegations of authority.-Under this subsection the Adminis-
trator may redelegate his authority excepting, however, the authority
to issue policy regulations and the authority to make reorganizations
within the General Services Agency.
(e) Designation of other agencies.-So as to provide the greatest use
of existing personnel and facilities within established agencies, this
subsection authorizes the Administrator to designate other executive
agencies to perform various procurement, utilization, or disposal
functions with the proviso that any such designation shall be made
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20 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
only with the consent of the agency concerned or upon direction of the
President.
This proviso would not apply to the authority of the Administrator
to prescribe regulations and the duty of agency heads to implement
them under subsection (c).
(f) Transfer of personnel and funds.-When any designation is made
under subsection (d) the Administrator may, under this subsection,.
transfer funds and personnel to the affected executive agency.
(g) Advisory committees.-This subsection authorizes the Adminis-
trator to establish advisory committees to advise with him in carrying
out his functions. Experience has demonstrated the value of such
committees to Government officers where Government programs affect
closely business and industry. Specific statutory authorization is
necessary because of the prohibitions against unauthorized boards and
commissions in title 31, United States Code, section 673, volume 35,
Statutes at Large, page 1027. Compare also title 5, United States
Code, section 83, volume 37, Statutes at Large, page 1.24, and title 31,
United States Code, section 551, volume 49, Statutes at Large, page 19.
Because of the better control over the membership and activities of
industry committees which is possible when they are established
pursuant to statute, it would be advisable to provide specifically for
such committees even apart from these laws.
(h) Consultation with other agencies.-This subsection makes it
mandatory for the Administrator to advise and consult with affected
Federal agencies.
Section 206. Surveys and standardization
(a) Surveys, supply catalog, and contract forms.-This subsection
authorizes the Administrator to survey Government property and
management practices, to cooperate with executive agencies in the
establishment of reasonable inventory levels and. to report excessive
stocking to the Congress and the Budget Bureau, to establish and
maintain a uniform Federal supply catalog system, and to prescribe
standardized purchases and contract forms, procedures, and specifi-
cations. Making surveys, requiring reports concerning Government
property, and establishing inventory levels, with due regard for the
requirements of agencies concerned, will obviously promote better
supply practices, and indeed. are indispensable if the powers under
sections 201 and 202 are to be effectively exercised. The Adminis-
trator's reports on excessive stocking will enable the Appropriations
Committees and Budget Bureau examiners to make suitable reduc-
tions in appropriations and estimates. The authority to standardize
Government purchase and contract forms, procedures, and specifica-
tions has been in effect and in use for many years and is demanded by
industry to make its relations with Government easier. It is confus-
ing and costly, for example, to have a contract for a supply item, with
one agency, different in meaning and effect from one for the same
kind of item with another agency. Existing control over the stand-
ardization of the Government construction contract forms and leases
is continued in effect by provision in section 502 (b).
A uniform Federal supply catalog system, which identifies and
classifies personal property under the control of Federal agencies, is
essential for a well-managed Federal supply system so that there may
be a common supply language among all parties to a transaction.
The catalog will ultimately mean large savings to the Government
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through reducin inventories of parts and supplies. Without such a
catalog, identical l items are carried in stock under different designa-
tions, swelling inventories to needless size. This cannot be avoided
until each item is described, -lassified, and given a number for identifi-
cation, so that duplications can be spotted at once. The disposal of
surplus Government personal property will thus likewise be speeded.
Provision is made for coordinating catalog activities with those of the
National Military Establishment.
This subsection makes it clear that the National Military Establish-
ment and the Bureau of Federal Supply will continue to cooperate
toward the development of a Federal catalog system, as requested by
the President, in accordance with the agreement (appendix A) signed
by them.
(b) catalog and specifications mandatory.-Due to the savings result-
ing from common use of the uniform supply catalog system and of
standard purchase specifications, this subsection requires executive
agencies to use them as far as practicable when prescribed by the
Administrator. It is contemplated that questions of practicability,
where dispute arises, will be settled by the Administrator.
(c) Audit of property accounts.-This subsection requires the General
Accounting Office to audit all types of property accounts and trans-
actions, such audit to be conducted at the site when practicable of
the property or records and to iilude an evaluation of the effective-
ness of internal controls and audits and a general audit of the discharge
of the duty to account for property.
Section 207. Applicability of antitrust laws
This section requires any executive agency in beginning negotiations
for the disposal of any plant or other property costing $1,000,000 or
more, to seek advice of the Attorney General, and it shall be the duty
of the Attorney General to advise the executive agency whether the
proposed disposition of the property would tend to create or maintain
a situation inconsistent with the antitrust laws. The executive agency
must assist the Attorney General by furnishing him any requisite
information it may possess essential to the Attorney General's
determination. This section also provides that nothing in the act
shall modify or limit the applicability of the antitrust laws to persons
who acquire property under the provisions of the act.
In one respect the section is broader than a similar provision in the
Surplus Property Act of 1944. It requires a determination by the
Attorney General as to whether the proposed disposal would tend to
create or maintain a situation inconsistent with the antitrust laws,
while under existing law the determination is whether the proposed
disposition will violate the antitrust laws.
Section 208. Employment of personnel
(a) Civil-service laws.-Employment of personnel is required by
this subsection to be subject to the civil-service and classification laws.
(b) Consultants.-As an exception to the foregoing, this subsection
grants to the Administrator limited authority to procure the temporary
service of experts and consultants.
(c) Officers of other agencies.-The principal purpose of this sub-
section is to authorize the Administrator to utilize commissioned
officers in the armed services with the consent of the head of the
agency concerned.
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
Section 209. Civil remedies and penalties
(a) Liability of Government employees.-This subsection exempts
officers and employees of the Government disposing of property under
this act from liability with respect to such disposition, except for
their own fraud, and from liability for the collection of any purchase
price determined to be uncollectible. This provision is necessary
because of the wide discretion which must be permitted persons
charged with disposition under circumstances calling for swift action,.
and the tremendous volume of property covered by the act.
(b) Civil penalties for fraud.-This subsection deals with the civil
liability of persons who engage in false, fraudulent, or fictitious activi-
ties or conceal or misrepresent material facts or act with intent to
defraud the United States, or who enter into an agreement or con-
spiracy, or cause other persons to do any of the foregoing. The
United States is given the option of selecting among three different
measures of damages-
1. Any person engaged in such activities can be sued for the
sum of $2,000, for each such act, plus twice the amount of the
damage sustained by the United States, plus the cost of suit.
2. The United States may recover from such person the amount,
of consideration paid by it to such person, or twice the amount
of consideration which such person agreed to give the United
States.
3. The United States may keep the property acquired by
reason of the above-described fraud, plus the consideration given.
to it for that property.
Section 210. Reports to Congress
This section requires the Administrator to submit to Congress in
January of each year and at such other times as he may deem it
desirable, a report regarding the administration of his functions
under the act, together with any recommendations for amendments,
which he may deem appropriate.
This title follows in structure, and is identical in language, with the
Armed Services Procurement Act with a few appropriate changes and
omissions.
Section 301. Declaration of purpose
This section states that the purpose of title III is to facilitate the
procurement of supplies and services.
Section 302. Application and procurement methods
(a) This subsection makes the provisions of title III applicable to
purchases and contracts for supplies or services made by the General.
Services Agency either for its own use or otherwise, including cen-
tralized procurement. By delegation the Administrator may au-
thorize any other civilian executive agency to use the procedure set
forth in title III when such agency is designated to perform a central
procurement function. In addition, authority to use the procedures
set forth in title III may be delegated by the Administrator to another
civilian executive agency in other cases where the Administrator
determines that such delegation is advantageous to the Government
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in terms of economy, efficiency, or national security. It is required
that the Administrator's determination in such other cases set forth
the circumstances upon which the determination is based. The
terms "economy" and "efficiency" will be broad enough to cover
cases where authority is delegated to negotiate contracts under 302
(c) (5) and 302 (c) (10) of this title. This title does not confer upon
any civilian executive agency any vested right to receive such delega-
tion. It is expected that such power of delegation will not be exercised
indiscriminately but rather will be used with care and discretion. It
is also expected that the Administrator will make periodic reviews to
determine whether the authority so delegated has been properly used,
and that he will either take such action as may be necessary to correct
any misuse or will withdraw the delegation. After the Administrator
has made such delegation he shall give notice thereof to the General
Accounting Office.
(b) This subsection states the policy that a fair proportion of the
total purchases and contracts shall be placed with small. business
copcerns and. further provides that notice of intent to negotiate shall
be published in certain cases.
(c) Initially, this subsection reaffirms the basic principle that pur-
chases and contracts shall be made by advertising. Negotiation is
made permissible in certain excepted cases, however, to provide flexi-
bility in Government procurement.
(1) This paragraph would permit automatic and immediate transi-
tion from more rigid peacetime advertising procedures to a completely
flexible system if the President or the Congress declares the existence
of a national emergency.
(2) This provision is an adaptation of a portion of section 3709 of
the Revised Statutes as amended by section 9 (a) of the act of August
2, 1946 (60 Stat. 809; 41 U. S. C. 5). Whenever urgency requires an
immediate purchase this exception would. be available irrespective of
whether the emergency could or should have been foreseen.
(3) This paragraph extends to the General Services Agency the
power to negotiate if the aggregate amount involved does not exceed
$1,000. However, no delegation of such authority may be m:Ide to
other executive agencies under this paragraph for purchases or con-
tracts for supplies or services in excess of $500 unless such purchasing
or contracting is for centralized procurement.
(4) This provision permitting negotiation for personal or profes-
sional services is an adaptation of the exception from :advertising
provided by section 3709 of the Revised Statutes, as amended, herein-
above referred to.
(5) This paragraph would permit negotiation of contracts for tech-
nical assistance, expert study and the application of specialized knowl-
edge to be performed by any university, college, or other educational
institution. This would cover matters which might not clearly
qualify as experimental, developmental, or research work under
paragraph (10) of this section.
(6) Under this paragraph if supplies or services are to be procured
and used outside the limits of the United States and its possessions the
contracts or purchases may be negotiated. In such cases it is fre-
quently impracticable or uneconomical to advertise.
(7) Due to the technical nature, special characteristics, and differing
qualities of medicines and medical supplies it is sometimes extremely
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difficult if not impossible to describe adequately in detailed specifica-
tions the exact characteristics of qualities needed. In such cases the
need for negotiation is clear.
(8) Where supplies are purchased for authorized resale, the pur-
chasing agency must accommodate the brand preference or the quality
preference of the organization requesting the purchase. This para-
graph therefore provides authority to negotiate such purchases,
(9) This paragraph provides for negotiation where it is impractica-
ble to secure competition and places upon the agency concerned the
maximum responsibility for decisions as to when it is impracticable.
It is intended that this paragraph should be construed liberally.
(10) The very nature of a research and development contract does
not ordinarily lend itself to formal advertising. This paragraph
therefore provides that contracts for experimental, developmental,
or research work or for the manufacture or furnishing of supplies for
experimentation, development, research, or test may be negotiated
and provides also for periodic reports to the Congress of action taken
under this paragraph.
(11) It is provided that in cases where the purchase or contract
should not be publicly disclosed negotiation may be employed. In
such cases public disclosure through advertising would clearly be
adverse to the interests of the Government.
(12) This paragraph permits negotiation of contracts for technical
equipment in order to assure standardization of equipment and inter-
changeability of parts when such standardization and interchange-
ability is necessary in the public interest. It is intended that this
authority should be used in special situations or in particular localities
and such provision has been therefore added to the language as it
appears in section 2 (c) (13) of the Armed Services Procurement Act
of 1947. The paragraph would protect in every way possible the
principles of competition and antimonopoly consistent with the
occasional need for such standardization, and section 307 (b) of this
title provides that the agency head may not delegate his responsibility
for making any of the determinations required under this paragraph.
(13) Permits negotiation for supplies or services when it is deter-
mined that bid prices after advertising are not reasonable either as to
all or some part of the requirements or have not been independently
arrived at in open competition. It is designed to cope with cases in-
cluding those where all bids received are too high, although not actually
identical or apparently collusive. The committee believes that this
paragraph will be most useful to break collusive bidding, follow-the-
leader pricing, rotated low bids, identical bids requiring drawing of
lots, uniform estimating systems, refusal to classify the Government as
other than a retail buyer regardless of the quantity purchased, and
similar other practices. Notification of the intention to negotiate
after such advertising and reasonable opportunity to negotiate must
be given to each responsible bidder and also the negotiated price must
be the lowest negotiated price offered by any responsible. supplier.
This paragraph is a modification of paragraph 2 (c) (15) of the Armed
Services Procurement Act of 1947. The modification will remove a
restriction which in cases such as sudden upward market fluctuations
might make it impossible to secure the needed supplies.
(14) This provision would preserve the authority to negotiate
contracts conferred by other permanent legislation, for example, the
Strategic and Critical Materials Stock Piling Net (60 Stat. 596; 50
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
U. S. C. 98-98h). This paragraph also has the effect of permitting
negotiation under any relevant law which may be subsequently
enacted whether said. law is general or special legislation.
(d) The immediate furnishing of evidence of possible violations of
the antitrust laws to the Department of Justice as.required by this
subsection will facilitate appropriate action where violations exist
and will have a valuable moral effect on bidders. Compliance with
this paragraph is not to be construed, however, as a condition pre-
cedent before exercise of the authority conferred by this title.
(e) For clarity this subsection provides that section 302 does not
authorize or change the existing requirements for authorization for
the erection or repair of buildings, roads, sidewalks, or similar items.
Section 303. Advertising requirements
(a) This section would establish broad standards for advertising,
reserving appropriate discretion in the agency. It is considered both
unnecessary and unwise to prescribe detailed and restrictive require-
ments, and it is believed that such matters should be left to be dealt
with by regulation. The section provides that advertising shall be
so conducted as to secure such full and free competition as is consistent
with the procurement of types of supplies and services needed.
(b) This subsection provides for the public opening of bids and
reaffirms the principles that the award shall be made to the responsible
bidder whose bid is most advantageous to the Government, price and
other factors considered, and that the Government may reject all
bids when such action is deemed advisable. The question as to
whether a particular bidder is a "responsible bidder" requires sound
business judgment and involves evaluation of the bidder's experience,
facilities, technical organization, reputation, financial resources, and
other factors and a broad discretion is accordingly reserved to the
agency with respect to the making of such determination.
Section 304. Requirements of negotiated contracts
(a) The right to use the most suitable type of contract is a necessary
and inseparable adjunct to theright to negotiate and. this subsection
therefore permits negotiated contracts to be of any type which in the
opinion of the agency head. will promote the best interests of the
Government, except as provided in subsection (b). Authority to
negotiate contracts in the first instance carries with it equal authority
to negotiate subsequent changes in the terms of negotiated contracts
and such amendments may also be of such type as the agency head
believes will promote the best interests of the Government. This
subsection also provides that every negotiated contract shall contain
a suitable warranty against contingent fees.
(b) This subsection prohibits the cost-plus-a-percentage-of-cost
system of contracting and prescribes maximum fees in. connection with
cost-plus-a-fixed-fee con; racts. 'Neither a cost nor a cost-plus-a-
fixed-fee contract nor an incentive-type contract may be used unless
it is determined that such method is likely to be less costly than other
methods or that it is impracticable to secure supplies or services of the
kind or quality without the use of such type of contract.
Section 305. Advance payments
(a) This permits the agency head to make advance payments under
negotiated contracts upon adequate security if the agency head
determines such payments to be in the public. interest or in the interest
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
of the national defense and necessary and appropriate in order to
procure the required supplies or services. This authority is essential
in periods of emergency and in peacetime it is often the only way in
which it can be made possible for a small business concern to handle
Government contracts. Often institutions of learning, research,
laboratories, inventors, and similar contractors who perform most
of the experimental, research, and developmental contracts need ad-
vance payments because they do not have sufficient funds to finance
or are unwilling to finance such contracts completely out of their
own resources. The power to make advance payments is permissive
only, and under section 307 (b) of this title may not be delegated by
the agency head.
(b) The additional form of security by way of lien which is provided
for by this subsection is a permissive feature which may be very useful,
especially in the event that a joint bank account, a controlled account,
or a special bank account is established in connection with an advance
payment.
Section 306. Waiver of liquidated damages
This section permits the Comptroller General, in his discretion, upon
proper recommendation by the agency concerned, to remit sums due
the Government under contract terms providing for the assessment of
liquidated damages for a delay in performance. This will permit the
Comptroller General to meet those situations in which the strict appli-
cation of the liquidated damages provisions would be inequitable either
in whole or in part and regardless of whether timely notice is given with
respect to the delay.
Section 307. Administrative determinations and delegations
(a) This subsection provides that the determinations and decisions
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 that such determinations and
decisions shall be final. It allows delegation by the agency head
except in those cases designated in subsection (b) of this section. The
determinations and decisions so made will not be made subject to
invalidation or challenge by the Comptroller General or the courts.
However, the broader the power or the more important, the decision or
determination, the higher the level at which the decision or determi-
nation will be made.
(b) This subse-,tion prohibits the agency head from delegating the
power to make the determinations or decisions specified in paragraphs
11 and 12 of section 302 (c), which concern respectively contracts
which should not be publicly disclosed and standardization of tech-
nical equipment and in section 305 (a), concerning the making of
advance payments. This subsection also restricts the power of the
agency head to make the decision or determinations specified in para-
graph (10) of section 302 (c) which concerns experimental, develop-
mental, or research contracts. Furthermore, under this subsection
the Administrator's power to delegate to another civilian executive
agency the right to use the authority provided under title III can
be delegated by the Administrator only to the Deputy Administrator
of the General Services Agency or to the chief official of any principal
organizational unit of the General Services Agency. It is believed
that such power to confer authority upon another civilian agency
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 27
should be exercised only at a high level within the General Services
Agency.
(c) As a further safeguard this subsection requires that determina-
tions or decisions concerning research and development contracts, con-
tracts which should not be publicly disclosed, standardization of
technical equipment, and negotiation after advertising, the type of
contract to be used and the making of advance payments shall be
based upon written findings, that these findings shall be final, and
shall be available within the agency for at least 6 years after making
such determination. Furthermore, it provides that a copy of the
findings shall be furnished to the General Accounting Office with the
contract.
(d) Data with respect to negotiation is required to be preserved in
the agency for 6 years following final payment on the contract except
where negotiation is pursuant to public exigency, a dollar amount, for
personal or professional services, for services to be rendered by an
educational institution, or for supplies or services which are to be
purchased and used outside the limits of the United States or its
possessions.
Section 308. Statutes continued in effect
This section provides that contracts executed under this title shall
not be exempt from the provisions of the Walsh-Healey Act, the
Davis-Bacon Net, or the 8-hour law by reason of their having been
entered into by negotiation.
Section 309. Definitions
(a) This subsection defines the term "agency head" as used in
title III to mean the head, or an assistant head of any executive
agency, and provides that the term may at the option of the Adminis-
trator include the chief official of any principal organizational units
of the General Services Agency. This is deemed salutary in order to
reserve the power of determination and decision at an adequately
high level, and at the same time to designate the officials intended to
be covered.
(b) This subsection defines supplies to include all property except
land, and to include, by way of description and without limitation,
public works, buildings, facilities, ships, floating equipment, vessels,
aircraft, parts accessories, equipment, machine tools, and alteration
or installation thereof. These illustrations are intended only as
examples and the committee has attempted to meet present and
future contingencies.
Section 310. Statutes not applicable
This section provides that the following acts shall not be applicable
to the procurement of supplies or services by the General Services
Agency :
Revised Statutes, section 3709, as amended, which concerns
formal advertising;
Revised Statutes, section 3735, which prohibits the making of
contracts for "stationery or other supplies" for more than 1
year; and
Sections 1 and 2 of the act of October 10, 1940, which set forth
certain specific exemptions from Revised Statutes, section 3709,
which are not in harmony with this title.
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28 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
These statutes would also be suspended for procurement made by
another civilian executive agency, under proper delegation of authority
made by the Administrator and solely within the scope of that
authority, and such suspension would be limited to the extent and
within the purview of the authority thus delegated.
TITLE IV. FOREIGN EXCESS PROPERTY
Section 401. Disposal of foreign excess property
This section. generally provides that, except where commitments
exist under previous agreements, all excess property located in foreign.
areas shall be disposed of by the owning agency. The head of the
agency in. question is directed to conform to the foreign policy of the
United States in making such disposals. The section provides further
that the Secretary of State shall continue to administer existing agree
ments with respect to the disposal of foreign excess property and
shall have authority to amend, modify, and renew such agreements
in order to carry on the foreign educational exchange program and.
the purposes of the Foreign Service Buildings Act and to provide
local currencies under procedures established by the Secretary of the
Treasury for the payment of expenses of the United State' in the
country in question.
Section 402. Methods and terms of disposal
This section authorizes disposals of foreign excess property under
terms similar to those in the Surplus Property Act of 1944, as amended,
under which foreign disposals are currently being made. Foreign
excess property may be disposed of by sale, exchange, lease, or trans-
fer, 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. Such property may be disposed of
for foreign currencies or credits, or substantial benefits or the dis-
charge 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. Disposals may be made
without advertising when the head of the executive agency finds such
a course to be most practicable and to be most advantageous to the
Government. Sales of agricultural commodities, food, or cotton or
woolen goods must include a condition forbidding importation into
the United States unless the Secretary of Agriculture determines that
such property is in short supply in this country. The head of the
executive agency responsible for disposal may execute the documents
necessary to transfer the interest of the United States in the property
and may authorize abandonment, destruction, or donation of foreign
excess property under his control which has no commercial value or
the estimated costs of care and handling of which would exceed the
estimated proceeds of sale.
Section 403. Proceeds: foreign currencies
This section provides that the proceeds from sales of foreign excess
property shall, if in the form of foreign currencies or credits, be ad-
ministered in accordance with procedures prescribed by the Secretary
of the Treasury and shall, if in United States currency or when reduced
to United States currency, be covered into the Treasury as miscel-
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FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 29
laneous receipts. The provisions of section 204 (b) relating to reim-
bursable funds or appropriations shall apply to proceeds of foreign
excess property under this title. The section further. provides that
any executive agency disposing of surplus property under this title
may establish a special account with the Treasurer of the United
States from which appropriate refunds to purchasers may be made.
Section 404. Miscellaneous provisions
(a) Presidential policies.-The President is granted general author-
ity to pres-.ribe politics deemed necessary to execute the provisions
of this title.
(b) Delegation, of authority.-Any authority conferred upon any
executive agency under this title may be delegated and successive
redelegations authorized by the head of such agency to any official in
such agency or to the head of another executive agency.
(c) Employment of personnel.-The head of each executive agency
responsible for the disposal of excess property hereunder may, subject
to the civil-service and classification laws, appoint and fix the com-
pensation of necessary personnel and without regard to the civil-
service and classification laws appoint and fix the compensation of
personnel outside the continental limits of the United States as may
be necessary to carry out his functions.
(d) Reports to Congress.-Each agency responsible for foreign dis-
posal shall make annual reports to Congress relative to its activities
under this title.
(e) Transfer of personnel, funds, etc.-Such records, property, per-
sonnel obligations, commitments, and unexpended balances of appro-
priations, allocations, and other funds as are determined by the
Director of the Bureau of the Budget to relate to the functions trans-
ferred to another executive agency under this title shall be transferred
from the Department of State to that agency.
Section 501. Applicability of existing procedures
This section continues in effect all existing policies and procedures
until superseded or amended under authority of the act.
Section 502. Repeal and saving provisions
(a) Repeal of Surplus Property Act, certain exceptions. -This subsec-
tion repeals all the Surplus Property Act of 1944 except (i) sections
13 (g) and (h), relating to transfers for education and health, the
airport program, and parks, recreation, and historic monuments and
section 32 (b) (2) relating to the foreign-scholarship program, all of
which are retained as permanent legislation; and (ii) section 28
suspending a statute of limitations. The provisions of the Supple-
mental Independent Offices Appropriation Act, 1949 (Public Law 862,
80th Cong.), as amended, abolishing the War Assets Administration
as of June 30, 1949, and assigning its property-disposal functions to
several different agencies, are likewise repealed, as are two statutes
authorizing the armed services to donate obsolete personal property
for educational purposes. The latter statutes were superseded by
Public Law 889, Eightieth Congress, which is likewise repealed, since
it will be superseded by the donation provisions in section 203 (j)..
This subsection also repeals parts of some 23 statutes relating to use
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30 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
of trade-in allowances which will be superseded by section 201 (e).
Finally, this subsection repeals section 4 of the act of June 17, 1910
(36 Stat. 531; 41 U. S. C. 7), concerning the General Supply Com-
mittee; the net of February 27, 1.929 (45 Stat. 1341; 41 U. S. C. 7a,
7b, 7c, and 7d), concerning central procurement by the Secretary of
the Treasury and authorizing the establishment and use of the general
supply fund; and section 1 of the act of May 14, 1935 (49 Stat. 234;
41 U. S. C. 7c--1), covering the use of the general supply fund for the
operation of the Government fuel yards. These provisions will be
superseded upon the enactment of the general scheme of Government
procurement contemplated in this bill which will more effectively
accomplish the same objectives.
(b) Repeal of Executive Order 6166.-This subsection supersedes
Executive Order 6166 so far as it relates to the Bureau of Federal
Supply, except for the functions reserved with respect to standardizing
contract forms, such as the lease and the construction contract form.
(c) Declaration of additional authority.-By this subsection the au-
thority conferred by the act is declared supplemental and not subject
to other legislation.
(d) Special exemptions from the act.-This subsection exempts from
operations under the act a number of activities requiring special treat-
ment. Chief among these are programs for price support, stabiliza-
tion, grants to farmers, and foreign aid; procurement procedures under
the Armed Services Procurement Act of 1947 (this statute is concerned
only Nyithprocedures and it is not intepAjox _by itainclusion. in this sub-
section to grant any exemption from the substantive provisions of the
e stocIi piling of critical materials; the national school-lunch
program; the Housing and Home Finance Agency with respect to the
disposal of residential property; and the Atomic Energy Commission.
(e) Limitation on open-market purchases.-This subsection amends
section 3709 of the Revised Statutes as amended by raising from $100
to $500 the limit on the amount that can be expended in an open-
market purchase without advertising or bidding.
(f) This subsection from the standpoint of management should be-
come one of the important parts of the bill. The bill as written
specifically repeals 28 statutes. There are several hundred more stat-
utes which relate to the subject matter of this bill and this subsection
requires the Administrator to thoroughly study these and report to
the Congress those which are obsolete and should be repealed.
Section 503. Authorization for appropriations and transfer authority
(a) Authorization for appropriations.-This subsection authorizes
appropriations generally without specification as to amount.
(b) Transfer authority.-Under this subsection an executive agency
may use for care and handling of property funds heretofore appro-
priated to it for purposes contemplated by sections 201, 202, 203, and
204 of the act.
Section 504. Separability
Each provision of the act is declared separable so far as validity is
concerned.
Section 505. Effective date
The effective date of the act is established as July 1, 1949, except
that one clause relating,to the War Assets Administration is made
effective June 30.
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APPENDIX A
STATEMENT OF AGREEMENT BETWEEN THE MUNITIONS BOARD, NATIONAL DE-
FENSE ESTABLISHMENT, AND THE BUREAU OF FEDERAL SUPPLY, DEPARTMENT
OF TIIE TREASURY, ON PROCEDURES FOR THE DEVELOPMENT OF A UNIFORM
FEDERAL CATALOG SYSTEM
The Munitions Board Cataloging Agency has embarked upon a comprehensive
3-year program to provide a uniform catalog system for all items of armed services
supply. This program was initiated in recognition of the urgent military need for
a common language for supply activities. The Bureau of Federal Supply has
been active in the planning for a Federal catalog systern in compliance with
Presidential directives and its basic responsibility for the development and
maintenance of the Federal Standard Stock Catalog. This planning was partici-
pated in by the Military Establishment and several of the larger civil establish-
ments. There is now pending before the Congress a bill to reorganize and simplify
the procurement, utilization, and disposal of Government property, and for other
purposes, which provides, among other things, for the transfer of the Bureau of
Federal Supply to the Federal Works Agency and authorizes the Federal Works
Administrator "As he may deem necessary for the effectuation of his functions
under this title, and after adequate advance notice to the agencies affected, and
with due regard to the requirements of the National Military Establishment as
determined by the Secretary of Defense * * * to establish and maintain such
uniform Federal supply catalog system to identify and classify personal property
under the control of Federal agencies as may be appropriate * * *." Also
"each executive agency shall utilize such uniform Federal supply catalog system
and standard purchase specifications as far as practicable, takin~ into considera-
tion efficiency, economy, and other interests of the Government.'
Pending action of the Congress on the above bill, it is recognized that the inter-
ests of the Federal Government can best be served through continuing close
cooperation and working contacts between the cataloging activities of the civil
and military establishments. To this end the following agreements have been
reached between the Munitions Board and the Bureau of Federal Supply:
(1) That the present plans and procedures of the Munitions Board Cataloging
Agency are satisfactory for initiating Federal catalog operations. It is under-
stood that the agency is further developing the elements of cataloging in accord-
ance with the basic principles developed under the sponsorship of the United
States Standard Commodity Catalog Board;
(2) That certain revisions and expansions in plans and procedures must be
made as work progresses to provide for the requirements of civilian agencies;
(3) That the question of classification will require close coordination with the
civilian agencies and the Munitions Board Cataloging Agency in order to develop
a commodity supply classification system which will be practical and workable
for all organizations;
(4) That any civilian agency having major supply problems should be repre-
sented on the Technical Group of the Munitions Board Cataloging Agency.
The Bureau of Federal Supply will, with the concurrence of the Bureau of the
Budget, develop recommendations to the Cataloging Agency as to the agencies
which should be represented;
(5) That the Bureau of Federal S'rpply shall have one member and one alter-
nate on the Executive Group of the Munitions Board Cataloging Agency, for
representation of civilian agencies.
(6) That after completion of the current "3-year program" of the Munitions
Board Cataloging Agency, the respective future responsibilities of the Agency and
the Bureau of Federal Supply would, in the absence of legislative direction, be
determined by agreement between the Secretary of Defense and the Secretary of
the Treasury;
(7) That the Bureau of Federal Supply will be responsible for such coordination
as will assure that cataloging developments initiated by the Munitions Board
Cataloging Agency are made available to interested civil establishments.
(Signed) CLIFTON E. MACK,
Bureau of Federal Supply, Treasury Department.
(Signed) Maj. Gen. PATRICK W. TIMBERLAKE,
Munitions Board.
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 Approved For Release 2002/07/31 : CIA-RDP54-00177A000200050096-2
32 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
THE WHITE HOUSE,
Washington, January 18, 1945.
Hon. HAROLD D. SMITH,
Director, Bureau of the Budget, Washington, D. C.
MY DEAR MR. SMITH: I think it important that the executive departments
and agencies develop more systematic records and procedures for use in all
transactions requiring a description of items of real and personal property.
The large number of actions relating to the acquisition, care, use, and disposal
of Federal property has greatly accentuated the need for this improvement in
governmental practices, both for the effective prosecution of the war and for the
more orderly conduct of peacetime affairs. Such records and procedures should
be developed by the several departments and agencies chiefly concerned in
accordance with a uniform central plan developed by you. This plan should in-
clude a uniform property classification and a uniform item identification system,
covering all commodities, which together might be known as the United States
standard commodity catalog.
Accordingly, it is my desire that you proceed without delay to secure the
preparation and maintenance of such a catalog, utilizing all relevant systems
and methods now in use by the Government to the extent that they conform with
the central plan, and utilizing also the facilities and services of the agencies
principally concerned. It is my wish, and I hereby request, that each department
and agency shall assume such share of the work and responsibility as you may
determine. Any necessary costs to the several departments and agencies beyond
those they are now incurring for similar activities should be included in additional
estimates of appropriations.
When the standard commodity catalog or any part of it is ready for use it
should be promulgated by you for use throughout the Government in all relevant
activities involving the procurement, storage, issue, disposal, or intra-Govern-
ment transfer of property, the listing or cataloging of property, and the collection
and tabulation of commodity information.
Pending the formalizing of these instructions in an Executive order, I wish you
would convey to all departments and agencies my instructions regarding this
matter and take whatever steps are necessary to develop and maintain the
catalog.
Sincerely yours, FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE,
Washington, July 15, 1946.
Hon. PAUL H. APPLEBY,
Acting Director, Bureau of the Budget, Washington 25, D. C.
MY DEAR MR. APPLEBY: [ have your memorandum with reference to the
general plan for the development and maintenance of a Federal catalog system
which would standardize for all agencies the classification and item numbering of
property purchased by the Federal Government. I agree with you that the
proposed unified system will result in significant improvements and economies in
stipply operations of the Government.
Pending further study of some features of the proposed plan, including the need
for legislation and the budget that should be sought, I desire that further develop-
ment of the Federal catalog system be continued through interdepartmental
cooperation and joint working arrangements. I concur in your recommendation
that the United States Standard Commodity Catalog Board, which has been
advising you on this matter, should continue its work, under your general super-
vision. The Board should complete the development of all phases of the uniform
plan and coordinate with this plan the cataloging activities of the agencies chiefly
concerned.
I request that you arrange with the Secretary of the Treasury for the Procure-
ment Division to organize a central staff to assist the Board in developing the
details of the uniform system and in the work required for the coordination of
agency cataloging activities with this system. I further request that you advise
the Secretary of War and the Secretary of the Navy, together with the heads of
such other departments and agencies as you may determine, of my desire that the
cataloging operations of these agencies be continued and that they be conducted in
conformity with the plans for the Federal catalog system. The services performed
by the central staff established in the Procurement Division will thereby be utilized
in the cataloging operations of these departments and agencies. Those depart-
ments and agencies utilizing such services should reimburse the Procurement
Division therefor from their regular appropriations.
Sincerely yours, HARRY S. TRUMAN.
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