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8 101-25.302–6 [Reserved)

has not been obtained, through the preparation and obtaining of authorized disposal schedules with the assistance of the National Archives and Records Administration.

(b) Removing office supplies, publications, and other nonrecord material from filing cabinets to more suitable storage equipment, except where the quantity of such material is small (as a rule, less than half a cabinet).

(c) Transferring to Federal Records Centers or approved agency records centers (to the extent that facilities are made available) inactive records not needed in daily business but not yet ready for disposal, when filing equipment can be released by such action.

(d) Shifting less active files, not transferable to approved records centers, to fiberboard storage boxes, using filing cabinets only when files are constantly used.

(e) Using filing cabinets with locks only when required by special needs that cannot be satisfied less expensively.

(f) Using letter-size filing cabinets instead of legal-size whenever possible.

(g) Using 5-drawer filing cabinets whenever available in lieu of 4-drawer cabinets.

8 101–25.302–7 Draperies.

Draperies are authorized for use where justified over other types of window coverings on the basis of cost, insulation, acoustical control, or maintenance of an environment commensurate with the purpose for which the space is allocated. Determining whether the use of draperies is justified is a responsibility of the agency occupying the building or space involved after consultation with the agency operating or managing the building. Authorized draperies shall be of non-combustible or flame-resistant fabric as required in $ 101–20.105-1.

[61 FR 14978, Apr. 4, 1996)

Subpart 101-25.4-Replacement

Standards

8 101-25.401 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 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 tradein value.

(29 FR 15993, Dec. 1, 1964, as amended at 53 FR 11848, Apr. 11, 1988; 61 FR 14978, Apr. 4, 1996)

88 101-25.302-3-101-25.302–4 [Re

served)

[29 FR 15994, Dec. 1, 1964)

§ 101-25.402 Motor vehicles.

Replacement of motor vehicles shall be in accordance with the standards prescribed in $ 101-38.402.

(53 FR 11848, Apr. 11, 1988)

8 101-25.302-5 Carpeting.

(a) 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 the need to maintain an environment commensurate with the purpose for which the space is allocated.

(b) In connection with new construction or alteration of space, if it is known that the area will eventually require carpeting, then resilient floor covering should be omitted and the carpeting installed initially.

8 101-25.403 [Reserved]

§ 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

(43 FR 18673, May 2, 1978, as amended at 49 FR 48546, Dec. 13, 1984)

on prices as shown in the current edition of the GSA Supply Catalog, applicable Federal Supply Schedules, or the lowest available market price). An exception is authorized in those unusual situations in which rehabilitation of the furniture at 75 percent or less of the cost of a new item would not extend its useful life for a period compatible with the cost of rehabilitation as determined by the agency head or his designee.

(38 FR 28566, Oct. 15, 1973]

g 101–25.404-1 Limitation.

Nothwithstanding the provisions in § 101–25.404, agencies shall limit acquisition of new office furniture to essential requirements as provided in $101-25.104. Replacement of correspondence filing cabinets will be governed by the provisions of $ 101–26.308.

mated 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.

[61 FR 14978, Apr. 4, 1996)

8 101-25.405 Materials handling equip

ment. (a) Materials handling equipment will not be replaced unless the esti

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(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 one-time repair costs. However, operating expenses such as fuels and lubricants, replacement tires and batteries, and antifreeze will not be included in the one-time 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

179–165 0-98-10

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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 outof-service 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.

(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.

(32 FR 12400, Aug. 25, 1967)

Subpart 101-25.5-Guidelines for

Making Purchase or Lease
Determinations

SOURCE: 31 FR 3462, Mar. 5, 1966, unless otherwise noted.

$ 101-25.501-2 Cost comparison meth

ods.

g 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 the Federal Acquisition Regulation (FAR) (48 CFR part 31) to the extent that the guidelines are consistent therewith.

(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 tradein 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.

(53 FR 11848, Apr. 11, 1988)

8 101-25.501 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.

g 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 lease determinations through a sampling of these transactions as GSA conducts supply management surveys and or reviews as provided in $ 101–25.114.

(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.

been established that the equipment under consideration can be used as provided in 88 101–25.502(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.

or

(31 FR 3462, Mar. 5, 1966, as amended at 45 FR 41948, June 23, 1980)

8 101–25.502 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. Inquiries should be addressed to the General Services Administration (FC), Washington, DC 20406.

§ 101-25.502–2 Lease method.

(a) The lease with option to purchase method shall be used when it is necessary or advantageous to proceed with acquisition of the equipment that meets program or system requirements but it is determined that purchase should be deferred because circumstances do not fully satisfy the conditions set forth in § 101–25.502–1.

(b) The lease/buy cost comparison method described in OMB Circular A104 is the preferred cost comparison method. Other methods (life-cycle cost, break even analysis, etc.) may be used in accordance with normal agency procedures. (Copies of OMB Circular A-104 may be obtained from the Executive Office of the President Publications Service, 725 17th Street, NW., room 2200, Washington, DC 20503.)

(c) A reevaluaton of the cost advantage of the lease over the exercise of purchase option credits or purchase of new replacement equipment should be performed before the renewal of the equipment lease.

[31 FR 3462, Mar. 5, 1966, as amended at 55 FR 33121, Aug. 14, 1990)

§ 101-25.503 [Reserved]

[31 FR 3462, Mar. 5, 1966, as amended at 53 FR 11848, Apr. 11, 1988]

§ 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

§ 101–25.504 Office copying machines.

(a) When selecting office copying machines, agencies shall take full advantage of any purchase options that may be available under the terms and conditions of the applicable Federal Supply Schedule contracts. Rental contracts provide for receiving credits, usually up to a certain specified limit, which may be applied towards the purchase price of the equipment being rented. Once the maximum credits have been accumulated, agencies should consider Subpart 101-26.2-Federal Requisitioning

System

101-26.200 Scope of subpart. 101-26.201 General. 101-26.202 Applicability. 101–26.203 Activity address codes. 101-26.204101-26.205 (Reserved] ] 101-26.206 GSA assistance.

Subpart 101-26.3-Procurement of GSA

Stock Items

purchasing the equipment, because additional rental payments will not further reduce the option to purchase price.

(b) Selection of the appropriate and most economical equipment for the application intended is the responsibility of the ordering agency. The selection process should include a review of the functional and financial advantages of all available copying processes (see 101-26.408).

(c) Before acquisition of equipment, a comparison shall be made of the relative costs of acquiring the equipment by use of the methods described in $ 101-25.502–1 and $101-25.502–2. The cost comparison shall be based on the best available information and estimates, including those factors in $101-25.502–1 and any other factors peculiar to office copying machines.

101-26.300 Scope of subpart. 101–26.301 Applicability. 101–26.301-1 Similar items. 101–26.301-2 Issue of used, repaired, and re

habilitated items in serviceable condi

tion. 101-26.302 Standard and optional forms. 101-26.303 Out-of-stock items. 101–26.304 Substitution policy. 101-26.305 Submission of orders to GSA. 101–26.306 Planned requisitioning for GSA

stock items. 101-26.307 Processing overages, shortages,

and damages. 101–26.308 Obtaining filing cabinets. 101–26.309 Cancellation of orders for GSA

stock items. 101–26.310 Ordering errors. 101--26.311 Frustrated shipments.

(31 FR 3462, Mar. 5, 1966, as amended at 42 FR 1031, Jan. 5, 1977; 55 FR 33121, Aug. 14, 1990]

Subparts 101-25.6-101-25.49

[Reserved]

PART 101-26-PROCUREMENT SOURCES AND PROGRAM

Subpart 101-26.4-Federal Supply

Schedules [Reserved)

Sec.

101-26.000 Scope of part.

Subpart 101-26.5-GSA Procurement

Programs

Subpart 101-26.1-General

101–26.100 Scope of subpart. 101-26.100-1 Procurement of lowest cost

items. 101-26.100-2 Request for waivers. 101–26.100_3 Warranties. 101-26.101 Utilization of long supply and ex

cess personal property. 101–26.102 Special buying services. 101-26.102–1 General. 101-26.102–2 Utilization by military agen

cies. 101-26.102-3 Procurement leadtime. 101–26.1024 Payment to GSA contractors. 101-26.103 Establishing essentiality of re

quirements. 101–26.103-1 Policy for personal property. 101-26.103_2 Restriction on personal conven

ience items. 101–26.104 End-of-year submission of req

uisitions for action by GSA. 101-26.105 Justification to support nego

tiated procurement by GSA for other

agencies. 101-26.106 Consolidation of requirements. 101–26.107 Priorities for use of supply

sources.

101-26.500 Scope and applicability of sub

part. 101-26.501 Purchase of new motor vehicles. 101-26.501-1 General. 101-26.501–2 Standardized buying programs. 101–26.501-3 Consolidated purchase program. 101-26.501-4 Submission of orders. 101-26.501-5 Procurement time schedules. 101-26.501-6 Forms used in connection with

delivery of vehicles. 101-26.501–7 Sale of vehicles. 101-26.501-8 [Reserved) 101-26.501-9 Centralized motor vehicle leas

ing program. 101-26.502 U.S. Government National Credit

Card. 101-26.503 Multiple award schedule pur

chases made by GSA supply distribution

facilities. 101-26.504 [Reserved] 101-26.505 Office and household furniture

and furnishings. 101-26.505–1 Description of office and house

hold furniture. 101-26.505-2 Description of office and house

hold furnishings.

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