§ 101-25.302-4 mum machines. Standards for the use of portable computing machines shall be established by each agency, using as a base the miniin standards prescribed this § 101-25.302-4. Portable computing machines include adding machines, calculators, and comptometers, manually or electrically operated, listing or nonlisting, but do not include posting or accounting machines. (a) When the need for a machine has been determined, the following standards shall be used in determining the type of machine to be acquired: (1) Manual machines should be used where electric current is not conveniently available or portability is required, where reasonable protection is desired against emergency shutdown (for example, in the event of continued power failures or civil defense dispersal), or where limited requirement does not warrant electric machines. Electric machines should be used in all other instances. (2) Listing machines should be used where it is definitely determined that a printed result is neecssary to the operation. (3) Calculators or comptometers shall be used where the operation to be performed contains a volume of work which is impractical of accomplishment by the use of slide rules, computation tables, or adding and subtracting machines. (b) Features required in a machine for a particular operation should be determined in advance and makes and models of machines having such features should be evaluated carefully with a view to the selection of the machine which will result in the lowest overall cost to the Government. Carpeting is authorized for use where it can be justified over other types of floor covering on the basis of cost, safety, insulation, acoustical control, the degree of interior decoration required, or to maintain an environment commensurate with the purpose for which the space is allocated, as when executive or unitized office furniture is authorized under § 101-25.302-1. (a) In connection with new construction or alteration to space, if it is known that the area will eventually require carpeting, then resilient floor covering should be omitted and the carpeting installed initially. To the extent practicable, desks without locks available from GSA supply depot stock shall be used to the exclusion of those with locks. Requirements for desks with locks shall be reviewed in the light of standards included in this section by a responsible official who must approve the validity of the requirement prior to acquisition. In addition to the standards in this section, agencies may establish such criteria for desks with locks as are appropriate. The use standards for desks with locks are: (a) A desk with locks may be required if necessary to secure official Government documents because of the sensitive nature of the information included in the documents which might cause embarrassment or program disruption if prematurely revealed. This does not include classified material since a locked desk does not provide adequate storage security. (b) A desk with locks may be required if necessary to store information on individuals, unrestricted release of which could cause embarrassment, or compromise, or place such individuals in an untenable situation. This does not include material or documents of a personal nature, the need for which does not support use of a desk with locks. [33 F.R. 16384, Nov. 8, 1968] § 101-25.303 vehicles. Gasoline for use in motor (a) Each agency shall, except as provided in § 101-25.303(b), use regular grade gasoline in the operation of its motor vehicles, the majority of which have engines designed to render unimpaired performance with use of regular grade gasoline. (b) The use of premium grade gasoline shall be restricted to: (1) Vehicles whose engines are specifically designed for and require a higher octane fuel than regular grade gasolines (manufacturers' printed specifications or operating instructions shall be the determining factor for such use). (2) Unusual operating conditions, such as a vehicle passing from a zone of very high altitude to one of very low altitude in the course of routine operation, or in operation requiring high torque at low speed and elevated air temperature. (3) Special services where accelerated pickup or sustained speed is required, such as law enforcement, firefighting, and emergency vehicles. (4) Specific situations where regular grade gasoline is unobtainable. Subpart 101-25.4-Replacement SOURCE: The provisions of this Subpart 101-25.4 appear at 29 F.R. 15994, Dec. 1, 1964, unless otherwise noted. § 101-25.401 General. This subpart prescribes minimum replacement standards to be used by executive agencies desiring to replace specified types of items indicated in this subpart. Executive agencies shall retain items which are in usable and workable condition even though the standard permits replacement, provided the item can continue to be used or operated without excessive maintenance cost or substantial reduction in trade-in value. § 101-25.402 Motor vehicles. If a motor vehicle has been wrecked or damaged (including wear caused by abnormal operating conditions) beyond economical repair, such unit may be replaced without regard to the standards in this § 101-25.402 after certification to that effect by the head of the agency or his designee. The standards prescribed in this § 101-25.402 are not applicable to the Department of Defense. (a) Passenger cars and station wagons may be replaced when they have been operated for six years or 60,000 miles, whichever occurs first. (b) Ambulances may be replaced when they have been operated for seven years or 60,000 miles, whichever occurs first. (c) Buses for 11 or more passengers may be replaced when they have been operated for eight years. Without regard to years of use, such buses may be replaced when they have been operated the following number of miles: 36-094-70- -10 (f) Where a bureau or comparable organizational unit owns eight or more vehicles in any one of the following classes, not more than 25 percent of the vehicles in such class may be replaced in any one fiscal year. Where the total number of vehicles in any one class is less than eight, not more than two of such vehicles may be replaced in any fiscal year. However, all vehicles to be replaced shall meet the age or mileage replacement standards contained in this § 101-25.402. (1) Automobiles (sedans, coupes, etc.). (2) All other passenger-carrying vehicles (station wagons, ambulances, buses). (3) All trucks and truck tractors. § 101-25.403 Office machines. Replacement of office machines shall be in accordance with the standards prescribed in paragraphs (a) and (b) of this section. The acquisition cost of comparable machines may be obtained from applicable Federal Supply Schedules with due consideration given to prices obtainable when the quantities involved exceed the maximum order limitation. In such instances, price information, unless available within the agency, may be obtained from the contracting office indicated in the schedule. Estimated repair or overhaul costs shall be obtained from contractors providing service under GSA term contracts where provided or at the lowest rate available from other sources. Cost obtained shall include transportation costs. (a) Electrically operated office machines (typewriters, adding machines, comptometers, and desk calculators, excluding the electronic type) under 12 years of age or manually operated office machines under 15 years of age shall not be replaced unless: (1) The estimated one-time repair or overhaul cost of a machine under 8 years of age exceeds 50 percent of the replacement cost for a comparable new model, without regard to trade-in or sale value; or (2) The estimated one-time repair or overhaul cost of a machine 8 years of age and over exceeds 25 percent of the replacement cost for a comparable new model, without regard to trade-in or sale value. (b) Notwithstanding the limitations prescribed in paragraph (a) of this section, office machines may be replaced under the following conditions provided a written justification supporting such replacement is approved by the agency head or an authorized designee and is retained in the agency files: (1) In those cases where there is a continuing history of breakdowns with corresponding loss of productivity through downtime. Judgments in those cases should be based upon personal knowledge of the machine operator or supervisor, and by repair records; or (2) When office machines lack essential features required in the performance of a particular task which is continuing in nature and other suitable machines are not readily available. [33 F.R. 7668, May 24, 1968] § 101-25.404 Furniture. Furniture (office, household and quarters, and institutional) shall not be replaced unless the estimated cost of repair or rehabilitation (based on GSA term contracts), including any transportation expense, exceeds at least 75 percent of the cost of a new item of the same type and class (based on prices as shown in the current edition of the GSA Stock Catalog, applicable Federal Supply Schedules, or the lowest available market price). An exception is authorized in (a) Materials handling equipment will not be replaced unless the estimated cost of necessary one-time repair or reconditioning of each piece of equipment exceeds, at lowest available cost, the applicable percentage of acquisition cost as shown in column 3 of the following table. Equipment eligible for replacement under the criteria established by this standard may be repaired provided the expected economical life is extended commensurate with the expenditure required. Prior to incurring repair costs for equipment eligible for replacement, consideration should be given to the continuing availability of repair parts. (1) Years in use shall be determined in accordance with the following: (i) An operating month is considered equal to 100 operating hours. For materials handling equipment in storage, one month in storage equals 50 hours of operation. (ii) The number of years in use is determined by dividing the number of operating months by 12. The fractional years in use resulting from this computation will be rounded to the nearest full year. (2) In using the maximum allowable one-time repair limits in column 3 of the table, costs such as parts, labor, and transportation incident to the repairs, are to be included in computing onetime repair costs. However, operating expenses such as fuels and lubricants, replacement tires and batteries, and antifreeze will not be included in the onetime repair cost estimate. (b) Notwithstanding the limitations prescribed in § 101-25.405(a), materials handling equipment may be replaced under the following conditions provided a written justification supporting such replacement is approved by the agency head or an authorized designee. The justification shall be retained in the agency files. (1) When the cumulative repair costs on a piece of equipment appears to be excessive as indicated by repair records. However, because an item of equipment accrues repair costs equal to the acquisition cost, it is not necessarily indicative of the current condition of the equipment. For example, a substantial repair expenditure included in the cumulative cost may actually have resulted in restoring the equipment to as good as new condition. While cumulative repair costs suggest an area for investigation, they should not be used as the principal ingredient in the repair/replacement decision making process. (2) When repair parts are not available causing excessive equipment out-ofservice time. (3) When the equipment lacks essential features required in a particular task which is of a continuing nature and other suitable equipment is not readily available. [32 F.R. 12400, Aug. 25, 1967] Subpart 101-25.5-Guidelines for Making Purchase or Lease Determinations SOURCE: The provisions of this Subpart 101-25.5 appear at 31 F.R. 3462, Mar. 5, 1966, unless otherwise noted. § 101-25.500 Scope of subpart. This subpart prescribes guidelines to be used by executive agencies in determining whether acquisition of equipment of the types specified in this subpart should be by purchase or lease. If appropriate, executive agencies should use these guidelines in the determination, allowance, or evaluation of costs under FPR 1-15 to the extent that the guidelines are consistent therewith. § 101-25.501 General. Studies conducted by the Federal Government indicate that in many cases substantial savings can be realized through purchasing rather than leasing certain equipment. These studies emphasize the need for making cost comparisons prior to determining method of acquisition. § 101-25.501-1 Acquisition tions. considera (a) Prior to acquisition of the types of equipment specified in this subpart (and to other types as appropriate) consideration shall be given to: (1) Length of time the equipment is to be used, including extent of usage, e.g., three shifts for 2 years, and including potential additional use by another Federal agency if the equipment becomes excess to the acquiring agency; (2) Financial and other advantages of all types and makes available; (3) Leasing costs and purchase options; (4) Costs of purchase and installation; (5) Imminent technological improvements; and (6) Other pertinent factors. (b) Where an agency already has leased equipment in its possession, consideration shall be given to the feasibility of purchasing such equipment or new equipment of a similar or different type and make. § 101-25.501-2 Cost comparison methods. (a) Different methods may be used for projecting pertinent factors into a cost comparison of alternative methods of acquisition. These range from highly technical methods which include the consideration of factors such as interest rates, technological life, and trade-in or salvage value to a basic method which simply compares the cost of purchasing and maintaining equipment against the cumulative costs of leasing. Irrespective of the method used for cost comparison, the point in time at which cumulative leasing costs exceed purchase costs for specific types of equipment usually does not vary significantly. (b) A simplified method of making a comparative cost analysis of the alternative methods of acquisition is illustrated for each type of equipment for which purchase or lease guidelines and criteria are established in this Subpart 101-25.5. § 101-25.501-3 Reviewing application of guidelines. (a) The acquiring agency has the primary responsibility for appropriate application of the guidelines established in this Subpart 101-25.5. However, GSA will review data relating to equipment acquisitions involving purchase or lease determinations through a sampling of these transactions. Such reviews will be conducted in connection with regular surveys and studies of agency supply management practices and when providing on-site assistance in the development of agency property accounting systems, or through periodic reporting requirements to be established as required. (b) Copies of cost comparisons and any other pertinent data used to support decisions to lease or purchase equipment shall be retained in the acquiring agency's case file. § 101-25.502 Methods of acquisition. (a) The determination as to whether equipment is to be acquired by purchase or lease shall be made in each case only after comparison of the relative costs of the equipment through use of the methods shown in this § 101-25.502. Cost comparisons shall include those elements affecting the acquisition cost of the specific types of equipment set forth in this Subpart 101-25.5. The method selected shall be that which offers the greatest advantage to the Government under the circumstances applying to each situation, cost and other factors considered. (b) Upon request, GSA will assist agencies in making appropriate determinations to lease or purchase equipment by providing the latest information on pending price adjustments to Federal Supply Schedule contracts and other factors such as recent or imminent technological developments, new techniques, and industry or market trends. Inquires should be addressed to General Services Administration, Federal Supply Service, Procurement Operations Division, Washington, D.C. 20406. § 101-25.502-1 Purchase method. (a) A cost advantage can be obtained by the purchase method provided the equipment is used beyond the point in time at which the cumulative leasing costs exceed purchase costs. The purchase method shall be used when it has been established that the equipment under consideration can be used as provided in §§ 101-25.502 (a) and 101-25.502 (b) beyond the point in time at which the purchase method begins to provide a cost advantage. (b) The acquisition of selected equipment by the purchase method should not be ruled out in favor of leasing such equipment merely because of the possibility that future technological improvements may render the selected equipment less desirable. |