(a) Policy. When the need for equipment is so limited as to make it uneconomical to purchase, such equipment may be rented or obtained on loan.

(b) Advertising. The provisions of Subpart 1-2.1, requiring advertising for supplies or services, is applicable to rental of equipment. (See 18 Comp. Gen. 579.)

(c) Written contract. As a matter of good business, rental or loan arrangements should be covered by a written order, contract, or agreement, regardless of the amount involved, thereby fixing the responsibilities of the parties concerned.

(d) Special contract provisions—(1) Operating supplies. In the case of motorized equipment the specifications should state clearly whether the Government will furnish gasoline, fuel oil, lubricating oil, etc.

(2) Repairs by the Government. The contract should be specific as to which party shall be responsible for repair and maintenance of the equipment and the liability and extent of loss assumed by each. If the Government is to assume this responsibility, it is desirable to establish a monetary limit of liability therefor, such as not to exceed the value of the equipment being rented. The contract may provide for the assumption of liability for the equipment during the period it is in the Government's possession. Funds may be expended by the agencies for necessary repairs so long as the property continues in use by the Government. After the property has served its purpose, however, if there is damage to or loss of the property, a claim for such damages must be referred to the General Accounting Office for settlement unless the obligation of the Government is liquidated by the contract. For example, the contract may place a value on the property to be paid in the event of total loss.

(3) Rental period. The rental should be for a definite period of time and be

such as would not carry it beyond the time for which an appropriation is available. However, if the basis of payment is in terms of hours, days, etc., requirements may be stated in terms of estimates when the exact requirements are not known.

(e) Purchase option in rental contracts. When there is reason to believe that conditions may require continued use of the equipment to the extent that rental would be uneconomical, bidders may be asked to indicate in their bids at what price they would be willing to sell the equipment should the Government elect to purchase at a later date prior to the expiration of the rental agreement. Bidders should be asked also to indicate how much of the rental price may be applied against the purchase cost. Award of bids for rental-purchase of equipment should be based entirely upon the price and conditions of rental as the purchase may or may not be effected. (See 15 Comp. Gen. 1136.) 84-4.5081

Rental of equipment from Forest Service.

The Forest Service may rent equipment to other Federal agencies at rates sufficient to cover the cost of the repair, maintenance, and depreciation thereof. (16 U.S.C. 578, 580.)

§ 4-4.5033 Returnable containers.

(a) Trade custom. Supplies are sometimes funished in containers that are of such construction that they can be used repeatedly. Contractors very often do not include such containers in the sales contract, but loan or rent them to purchasers of their products, and it is desirable that the bid invitations provide for such loan or rental, and payment of cash value in case of loss or damage while in the possession of the Government. Contractors customarily loan such containers free for certain designated periods, such as 30, 60, or 90 days, after which there is a rental or demurrage charge for containers not returned before the end of the free period. The containers are usually numbered for purposes of identification.

(b) Demurrage computations. Frequently long periods elapse before some containers are emptied and returned, and if payment is made for demurrage of each container, considerable demurrage would frequently occur. Accordingly, provisions should be made in the bid for the return of the containers and

the payment of demurrage under "quantity basis" system. For example, with a 30-day free period, if 10 containers obtained July 1 are held for 45 days, and 10 obtained July 13 are held 15 days, no charges accrue under the "quantity basis" because 10 containers will have been returned at the close of July and the remaining 10 can be held until August 16. If demurrage had been payable on each individual container, there would have accumulated 150 days demurrage on the containers obtained July 1 and returned August 15, even though the 10 obtained July 15 were returned when only half the allowable free period had expired. (See 17 Comp. Gen. 301.)

(c) Suggested provisions for invitation to bid. There are quoted below suggested clauses covering containers, including oxygen and acetylene cylinders:

gas

Containers. Bidder must fill in completely the blank spaces below:

Containers owned by the contractor shall be loaned free of rental charge for a period of months. After the period of free use a rental of $... per month per container will be paid for their use by the Government for not to exceed ___ months. Provided: that where a record of the serial numbers of individual containers is not kept by the contractor, demurrage payments may be made on the quantity basis. All containers not returned to the contractor within the periods of free use and rental will be paid for at the rate of $.. each, all

rental charges in such cases to be applied as part of said price, and the Government to own the containers outright. All empty containers which are not retained and paid for will be returned to the contractor, transportation charges prepaid by the Government.

Gas cylinders. Bidder must fill in completely the blank spaces below:

Cylinders shall remain the property of the contractor and shall be loaned to the Government for a period of 30 days after the date of shipment of cylinders from contractor's plant. Beginning with the first day after the expiration of the 30-day free loan period, there will be charged, and the United States agrees to pay the contractor, a rental at the rate of $-.. per cylinder per day for the use of the cylinders not returned to the contractor.

All cylinders not returned to the contractor on or before the expiration of a 90day rental period or lost or damaged beyond repair while in the possession of the United States Government shall be paid for by the United States to the contractor at a replacement value of $... for each oxygen

ylinder of 200 to 220 cubic feet capacity

and $

for each acetylene cylinder of 200 to 250 cubic feet capacity.

Cylinders retained or lost and so paid for shall be considered the property of the United States. But if and when located they may, at the option of the Government, be returned to the contractor and, in such event, credit shall be allowed to the Government at the replacement value paid, less rental at the rate of cents per day beginning at the expiration of the free loan period as aforesaid to the date upon which cylinders are turned over to carrier for return to the contractor's plant.

See Part 101-20.

[32 F.R. 1179, Feb. 2, 1967]

§ 4-4.5089 Standard forms and blank. book work.

(a) Forms. The regulations of the Joint Committee on Printing and those of the General Services Administration, issued pursuant to the Federal Property and Administrative Services Act of 1949, as amended, require that standard forms be obtained from the GSA supply centers. By arrangement with the Government Printing Office, GSA also stocks for issue as supply items other forms commonly used by Federal agencies, such as miscellaneous forms, Civil Service Commission forms, etc. Agencies shall therefore obtain from the regional sup

ply centers, in accordance with established procedure covering the requisition of any regular supply item, such forms as are listed in the GSA Store Stock Catalog, except as provided below, or otherwise specifically authorized:

(1) Requirements in the District of Columbia will be filled from stocks of the Central Supply Section, as provided in § 4-5.

(2) Standard forms which require overprinting, serial numbering, or other alteration, and those requiring paper of a different grade, weight, or color, will be obtained from the Government Printing Office through the Office of Information, as provided in § 4-5.54.

(3) Orders for large quantities of forms which GSA is unable to fill from stock at either the region with which the order is placed or Region 3, Washington, D.C., will be ordered by GSA from the Government Printing Office for production and direct delivery to the requisitioning agency, when feasible, and when the size of the order justifies a separate printing. Government bills of lading, if required, will be furnished by GSA. In such cases, the GPO will bill GSA for the forms shipped and GSA will collect from the receiving agency.

(b) Blankbook work. Miscellaneous supplies, commonly known as blankbook work, such as stenographers' notebooks, ruled cards, stock columnar pads, etc., are also stocked by GSA supply centers, and are listed in the Store Stock Catalog. Agencies should obtain their requirements of such supplies from the supply centers, except for Washington, D.C., needs, which will be obtained from the Central Supply Section.

(1) Waiver. The Government Printing & Binding Regulations, issued by the Joint Committee on Printing, provide that blank books not available through GSA but regularly carried in stock by commercial dealers and which require no printing and/or binding operation after receipt of order may be procurred without obtaining a waiver from the Government Printing Office: Provided, That no order or orders issued by a purchasing office for each type of blank book exceeds $500 in any one year. 8 4-4.5090 Stenographic reporting.

Under authority of the Department of Agriculture Organic Act of 1944 (5 U.S.C. 55a and 520a), the Department is authorized to purchase stenographic reporting services. Such services will be

purchased in accordance with the rules governing purchases in general. The Department enters into a contract each year covering stenographic reporting service in the continental United States which provides for the transcribing of records of all public hearings conducted by the Department. That contract shall be utilized for stenographic reporting services required at all public hearings in connection with quasi-judicial, quasilegislative, and other administrative proceedings. Term contracts for reporting services are also entered into by the General Services Administration and other Government agencies. These latter contracts may be used for proceedings not covered by the Department contract; such as for security hearings, meeting, conferences, etc. Information concerning reporting services provided for under existing contracts may be obtained from the Procurement and Contract Management Division. § 4-4.5091

Telephones in private residences (Forest Service only).

Under certain conditions, appropriations of the Forest Service are available to pay for telephone service installed in residences of employees and of persons cooperating with the Forest Service. 16 U.S.C. 580F.

§ 4-4.5092 Trading stamps, redeemable coupons, etc.

(a) Purpose. It is the purpose of this section to state policy and procedures for the receiving, handling, and disposition of trading stamps, redeemable coupons, trade incentive items, etc., offered by suppliers as a means of granting a discount on purchases from them or as an inducement to trade with such suppliers.

(b) Authority. GSA Circular No. 190, Revised; Comptroller General Decision B-128096 (unpublished) of April 14, 1960.

(c) Policy. It has been indicated by the Comptroller General that the giving of trading starmps is a means of granting a discount for cash payment of small purchases. Accordingly, trading stamps, redeemable coupons, and the like, must be accepted unless their official utilization would obviously be impractical and economically unsound in accordance with the following criteria.

(d) Trading stamps and redeemable coupons. Every reasonable effort should be made to obtain prices not involving stamps or coupons of any kind. Where

this is not feasible, stamps or coupons must be accepted where they can be officially utilized as follows:

(1) Arrangements for redemption should be made at the lowest appropriate organization level of each agency. They may be redeemed for merchandise usable in the discharge of official functions. It may be possible to arrange with the trading stamp company to make redemption in cash, which could then be deposited to the credit of the applicable appropriation.

(2) If, in terms of practicality and administrative cost, redemption of trading stamps or redeemable coupons is not feasible, arrangements should be made for their transfer, without reimbursement or accountability, to a nearby Federal hospital or other similar Federal institutions such as those operated, managed, or supervised by any one of the following:

(1) Veterans

Administration (hospitals, centers, and domiciliaries)

(11) Public Health Service (HEW), or (iii) Department of Defense. Prior to such transfer, the transferring agency should ascertain whether the proposed recipient agency is prepared to receive and to utilize such trading stamps or coupons.

(3) In view of the administrative cost involved, it is not considered generally necessary to attempt utilization of redeemable coupons in the form of box tops, labels, etc., except in connection with large volume purchases where the negotiation of a special cash discount in lieu of recovery of such coupons may be feasible.

This contemplates that there would generally be no central collection of trading stamps or coupons; there are to be no accountability control records established thereon; that in general the internal procedures for handling trading stamps is to be such as will result in the least administrative burden or cost. If the above methods of achieving official utilization of trading stamps or coupons involves administrative costs out of proportion to the value to be realized, the circumstances thereof should be reported to the Office of Plant and Operations.

(e) Trade incentive items. It is customary in business generally to offer inducements to potential customers in the form of tangible items given free in return for trading with the firm. For

instance, service stations may offer free packets of seed, tableware, cigars, etc., with each tankful of gasoline, each oil change, etc., purchased from them. Most of these items have no feasible official use in this Department. The cost of collecting them for use by programs of other Federal agencies would ordinarily be unreasonable in relations to the value to be realized. Such items should not be accepted for personal use of the employee since to do so would be in the nature of accepting a gratuity. As a general rule, therefore, it is considered appropriate to refuse items of this character since it would obviously be impractical and economically unsound to attempt official utilization thereof. 84-4.5093 Training services.

Training services are defined in Department Personnel Manual, Chapter 410, Subchapter 1, paragraphs 9b and 10a; and generally cover training provided by non-Government employees or by, in, or through non-Government facilities. Outside training of employees is subject to prior approval by either the Director of Personnel, or the agency head or his designee in accordance with Department Personnel Manual, Chapter 410, Subchapter 3-2. The purchasing officer should have assurance that this approval has been obtained prior to purchasing training services. These services may be procured without formal advertising and payments may be made in advance to the employee or to the training facility without regard to Revised Statute 3648 (31 U.S.C. 529). Otherwise, purchase of such services should be made in accordance with the procurement procedures of this title subject, however, to the following special requirements: Section 14 of the Government Employees Training Act, 5 U.S.C. 4107(a) as implemented by Civil Service Training Regulations 5 CFR 410.504; and Department Personnel Manual, Chapters 410 and 732 which contains the following requirements:

(a) Training provided by organizations: When the outside training is to be conducted by, in, or through an organization, the requirements of 5 U.S.C. 4107 (a) are met if the purchasing officer determines that the organization is not on the list of organizations designated by the Attorney General pursuant to section 12 of Executive Order 10450 listed on Civil Service form 385, cited in the

Department Personnel Manual, Chapter 732, Subchapter 8-1.

(b) Training provided by an individual: when the training is to be conducted by an individual with whom contractual or other arrangements are made directly, a loyalty determination must be obtained from the office of personnel in accordance with Department Personnel Manual, Chapter 410, Subchapter 5-2c. This determination must be made prior to contracting with or otherwise arranging for the services except in emergency situations, under which circumstances such determination must be made prior to payment. In addition, there must be obtained from the individual an affidavit, certificate, or express -contractual warranty that he does not teach or advocate the overthrow of the · Government of the United States by force or violence. This requirement that an affidavit, certificate, or express contractual warranty must be obtained does not apply (1) to individuals who perform training under oral or other informal arrangements for periods of sixteen hours or less within a single program; or (2) to individuals who perform training without compensation by the Government (whether or not the Government provides payment or reimbursement for their travel and subsistence incident to such training). The following certificate, where applicable, must be dated and signed by the individual who is to perform the training, and will be sufficient for the purposes outlined above:

cordance with DPM AG Chapter 410, Subchapter 5-3c.

[29 F.R. 14286, Oct. 16, 1964, as amended at 86 FR. 20512, Oct. 23, 1971]

§ 4-4.5094 Tree seed, cones, and nursery stock (Forest Service only).

The Chief, Forest Service, is authorized, and may delegate such authority, to purchase, without advertising, whenever he determines that such method is in the public interest, (a) tree seed or cones or forage plant seed, when the amount involved does not exceed $10,000, and (b) forest tree nursery stock, when the amount involved does not exceed $500. (16 U.S.C. 504.)

§ 4-4.5095 Tuberculin, serums, antitoxins, etc.

Purchases may be made without advertising of samples of tuberculin, serums, antitoxins, or analogous products, of foreign or domestic manufacture, which are sold in the United States for the detection, prevention, treatment, or cure of diseases of domestic animals. (7 U.S.C. 430.)

that, except to provide materials required in or incident to research or experimental work where no suitable domestic product is available, no part of the funds appropriated by this Act shall be expended in the purchase of twine manufactured from commodities or materials produced outside the United States.

§ 4-4.5097 Typewriters.

See § 101-25.104 and 101-25.403. [32 FR. 1179, Feb. 2, 1967)

§ 4-4.5098 Used or reconditioned equip

ment.

(a) Policy. It is the policy of this Department that used or reconditioned equipment (not replacement parts for mechanical equipment, such as reconditioned parts for automobiles, et cetera) is not to be purchased when new equipment is available at a reasonable cost. New equipment is generally sold by persons having an interest in customer satisfaction; also, the purchaser of new equipment is reasonably sure of getting quality commensurate to the price. In addition, responsibility is more easily