tion the reason that competitive procedures are not feasible.

§ 101-14.303 Disruption of markets.

Efforts shall be made in the acquisition of strategic and critical materials to avoid undue disruption of the usual markets of producers, processors, and consumers of such materials and to protect the United States against avoidable loss.

§ 101-14.304 Length of contracts.

Contracts entered into under this Subpart 101-14.3 shall not be for a period of more than 2 years. However, contracts for a period of more than 2 years may be entered into, if determined to be in the best interests of the Government and approved by the Commissioner, Federal Property Resources Service (D).

§ 101-14.305 Acquisition of strategic and critical materials by purchase.

GSA will contract for the purchase of strategic and critical materials. The purchase of these materials shall be in accordance with established Federal procurement practices as set forth in the Federal Procurement Regulations (41 CFR Chapter 1) and the General Services Administration Procurement Regulations (41 CFR Chapters 5 and 5A). Deviations from the Federal Procurement Regulations or General Services Administration Procurement Regulations shall be in accordance with 41 CFR 1-1.009 and § 5A-1.109. However, any deviation to those regulations which modifies or eliminates

part, competitive procedures means the solicitation of bids or offers from two or more potential suppliers of strategic and critical materials.

(b) Whenever the Commissioner, Federal Property Resources Service, determines that competitive procedures are not feasible in an acquisition, the Commissioner must notify the Committees on Armed Service of the Senate and House of Representatives in writing of the proposed acquisition at least 30 days before any obligation of the United States is incurred regarding this acquisition. The Commissioner will include in this notifica

proved as specified in § 101-14.302(b).

§ 101-14.306 Acquisition of strategic and critical materials by exchange.

(a) GSA may transfer at fair market value the materials listed in paragraph (b) of this section as payment for expenses for acquisition of strategic and critical materials. Expenses which may be paid for by exchange include transportation and other incidental expenses.

(b) The following materials may be exchanged under this section: (1) Subject to the notification requirements of paragraph (c) of this section, mate

rials which are (i) excess to stockpile requirements; and (ii) may cause a loss if left to deteriorate; and (2) materials in the stockpile the disposal of which is specifically authorized by law.

(c) Materials listed in paragraph (b)(1) of this section may be used for acquisitions of strategic and critical materials by exchange only if the Committees on the Armed Services of the Senate and House of Representatives are notified in writing of the proposed disposal at least 30 days before any obligation by the United States is incurred in connection with this disposal.

§ 101-14.307 Acquisition of strategic and critical materials by barter.

(a) Federal agencies are encouraged to use barter in the acquisition of strategic and critical materials when the acquisition is authorized by law (see paragraph (b) of this section), is practical, and is in the best interests of the United States.

(b) The Strategic and Critical Materials Stock Piling Act does not specifically authorize acquisition by barter.

To barter for strategic and critical materials, an agency must have specific authority to enter into barter agreements or arrangements. For example, section 204(f) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 485(f)), authorizes executive agencies entitled to receive cash under any contract covering the lease, sale, or other disposition of surplus property to accept instead of cash strategic and critical materials at the prevailing market price when the payments are due.

§ 101-14.308 Acquisition of strategic and critical materials for rotation purposes. GSA may provide for the rotation of any material in the stockpile when necessary to prevent deterioration of the material by replacing it with an equivalent quantity of substantially the same material. Materials may be acquired for rotation purposes by purchase (see § 101-14.305), exchange (see § 101-14.306), or barter (see § 10114.307).

PART 101-15-[RESERVED]

§ 101-17.001 Authority.

This part implements the applicable provisions of the Federal Property and Administrative Services Act of 1949, 63 Stat. 377, as amended; the Act of July 1, 1898 (40 U.S.C. 285); the Act of August 27, 1935 (40 U.S.C. 304c); the Public Buildings Act of 1959, as amended (40 U.S.C. 601 et seq.); the Rural Development Act of 1972 (86 Stat. 674); Reorganization Plan No. 18 of 1950 (40 U.S.C. 490 note); the Public Buildings Cooperative Use Act of 1976 (90 Stat. 2507); Executive Order 12072 of August 16, 1978 (43 FR 36869); the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 531-535); Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601); and the National Environmental Policy Act of 1969, as amended. [45 FR 37200, June 2, 1980]

§ 101-17.002 Basic policy.

GSA will acquire and use federally owned and leased office buildings and space located in the United States and will issue standards and criteria for the use of this space. GSA will assign and reassign this space to Federal agencies and certain non-Federal organizations. GSA has oversight responsibility for Federal agency compliance with Executive Order 12072, including space acquisition in urban areas accomplished under authority other than the Federal Property and Administrative Services Act of 1949, as amended. As required by section 901(b) of the Agriculture Act of 1970, 84 Stat. 1383, as amended by section 601 of the Rural Development Act of 1972, 86 Stat. 674 (42 U.S.C. 1322(b)), it is the responsibility of each agency to determine which of its new offices should be located in rural areas. When it is determined that agency space needs require an urban location, GSA and other Federal agencies shall be governed by the following policies for the assignment, reassignment, and use of buildings and space.

(a) Federal facilities and Federal use of space in urban areas shall serve to strengthen the Nation's cities and to make them attractive places to live and work. Federal space shall conserve existing urban resources and encour

age the development and redevelopment of cities.

(b) Serious consideration shall be given to the impact that a location or relocation will have on improving the social, economic, environmental, and cultural conditions of the communities in an urban area. To the extent feasible, plans and programs for meeting space needs shall enhance and support the development, redevelopment, and revitalization objectives and priorities of cities in urban areas and shall enhance and support the employment and economic base of these cities. Both positive and negative impacts of space acquisition actions shall be weighed with the objective of obtaining maxmum socioeconomic benefits from these actions.

(c) In meeting space needs in urban

areas:

(1) First consideration shall be given to a centralized business area and adjacent areas of similar character in the central city of Standard Metropolitan Statistical Areas (SMSA) defined by the Department of Commerce publication (Government Printing Office Stock Number 041-001-00101-8), including other specific areas of a city recommended by the elected chief executive officer of the local government or a designee, except where this type of consideration is otherwise prohibited. Space needs will be met outside the central business area of a central city of an SMSA only when one of the following circumstances exist:

(i) The service area of an activity is limited to a clearly defined sector of a city or a suburban or rural community, as is the case with satellite or branch offices; or where onsite activities are involved, such as inspection and/or maintenance operations at border stations, airports, seaports, or other similar activities;

(ii) Immediate compliance is not possible due to existing leasing commitments in areas outside the central business area (CBA). In these cases, plans for the future compliance shall be made; i.e., the activity shall be relocated to the central business area upon expiration of the lease;

(iii) The proposed facility or the activity's use of a facility is not in com

pliance with local land use or zoning ordinances; or

(iv) The elected chief executive officer of the local government or a designee advises the agency that an activity or facility should be located in an area of the central city other than the CBA.

(2) If location outside the central business area of the central city is required, preference shall be given to location within the central city.

(3) If location outside the central city is required, preference shall be given to locations in the central business area of noncentral cities.

(4) If location outside an SMSA is required, preference shall be given to central business area of non-SMSA cities.

(d) Decisions to relocate activities from existing noncentral business area locations into the central business area shall take into consideration an analysis of the comparative costs in relationship to the anticipated benefits of the proposed relocation. These cost/benefit analysis shall compare the costs of relocation into the central business area to the costs of alternative locations that would be delineated were there no plans to relocate the activity into the central business area. In conducting cost/benefit analyses the following steps shall be followed:

(1) An estimate of the comparative costs of a central business area location versus the costs of non-CBA locations shall be made, including an analysis of:

(i) The estimated annual per-squarefoot market rent for comparable space in the central business area versus similar estimated market rents for delineated noncentral business area locations under consideration, plus

(ii) The estimated per-square-foot costs of duplicating permanent specialtype alterations (such as laboratory or ADP space) amortized over the term of the lease and all renewal options; plus

(iii) The estimated per-square-foot cost of relocating offices to the various alternative locations, including the central business area amortized over the term of the lease and all renewal options, and