their reports of excess personal property to prevent GSA from automatically programming the property for sale. [59 FR 50696, Oct. 5, 1994] § 101-45.103-2 Holding agency sales. All provisions of Parts 101-45 and 10146 shall be followed in conducting sales of Government-owned personal property. Agency internal procedures shall be issued to ensure compliance and uniformity and to protect the integrity of the sales process. [59 FR 50697, Oct. 5, 1994] § 101-45.103-3 Sales by GSA. (a) For property reported to GSA for disposal, the following basic services will be provided at reimbursable rates established by GSA on an annual basis. (1) Auction and spot bid sales. The following services are covered under the basic rate: (i) Property cataloging; (ii) Maintenance of mailing list; (iii) Printing and distribution of announcement to bidders on mailing list; (iv) Normal media advertising (one newspaper or equivalent); (v) Registration of bidders; (vii) Onsite contracting officer; (x) Follow-on collection of late payments; (xi) Security service; (xii) Deposit of proceeds; (xiii) Distribution of proceeds; (xiv) Financial and property line item accountability; and (xv) Contract administration. (2) Sealed bid sales. The following services are covered under the basic rate: (i) Property cataloging; (ii) Maintenance of mailing list; (iii) Printing/distribution of invitation for bids to bidders on mailing list; (iv) Bid opening; (v) Contract awards; (vi) Preparation of award documents; (vii) Financial and property line item accountability; and (viii) Contract administration; (b) GSA will deduct service charges from the proceeds of sale. (c) For sales proceeds that are reimbursable to the holding agency, net proceeds (sales proceeds less GSA's direct, and indirect costs) will be distributed to the agency via the on-line payment and accounting control (OPAC) system. (d) A portion of the proceeds from the sale of nonreimbursable surplus property will also be retained by GSA to cover its direct and indirect costs. The net proceeds will be deposited to miscellaneous receipts of the Treasury. (e) Rates for accessorial services, including transportation, storage, maintenance, and reconditioning of property prior to sale, will vary according to local market conditions and will be published in GSA regional bulletins available from the servicing GSA region. (f) Agencies may be consulted to assist GSA in the determination of the best method of sale and their requirements for accessorial services. (g) Property for which the sales contract is terminated for default will be resold at no cost to the holding agency. Property for which the sales contract is terminated for cause, e.g., misdescription of the property, will be resold at the holding agency's cost if the cause is attributable to the holding agency. [59 FR 50697, Oct. 5, 1994] § 101-45.103-4 Sales conducted at holding agency facilities. If GSA sells property from holding agency facilities, holding agencies shall be responsible for the following: (a) Providing the appropriate GSA regional office with information necessary for effective sale of property and the accounting data for appropriate application of gross proceeds; (b) Transporting property to a consolidated sales site when agreed to by the holding agency and GSA; (c) Providing for the inspection of property by prospective bidders; (d) Providing facilities for the conduct of sales and the essential administrative, clerical, or labor assistance when requested by GSA; and (e) Assisting in the physical lotting of property to be sold at agency facilities. [59 FR 50697, Oct. 5, 1994] § 101-45.104 Care and handling pending disposal. Pending disposal, each holding agency shall be responsible for performing, and bear the cost of, care and handling of its property. § 101-45.105 Exclusions and exemptions. § 101-45.105-1 Materials required for the national stockpile or the supplemental stockpile, or under the Defense Production Act. This part 101-45 does not apply to materials acquired for the national stockpile or the supplemental stockpile or to materials or equipment acquired under section 303 of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2093). However, to the extent deemed appropriate the provisions of this part 101-45 should be followed in the disposal of such materials. § 101-45.105-2 Disposal of certain vessels. The Secretary of Transportation has jurisdiction over the disposal of vessels of 1,500 gross tons or more which the Secretary determines to be merchant vessels or capable of conversion to merchant use. [53 FR 16121, May 5, 1988] § 101-45.107 Holding agency compliance function. Subject to the provisions of §10145.107-1 requiring referral of criminal matters to the Department of Justice, each holding agency shall perform investigatory functions as are necessary to insure compliance with the provisions of the Federal Property Act and with the regulations, orders, directives, and policy statements of the Administrator of General Services. Nothing in this §101-45.107 should be deemed to affect the jurisdiction of any agency over its own personnel or any existing arrangements with Department of Justice concerning the handling and prosecution of criminal matters. $101-45.107-1 Referral to other Government agencies. All information indicating violations by any person of Federal criminal statutes, or violations of section 209 of the Federal Property Act, including, but not limited to, fraud against the Government, mail fraud, bribery, attempted bribery, or criminal collusion, shall be referred immediately to the Department of Justice, for further investigation and disposition. Each holding agency shall make available to the Department of Justice, or to such other governmental investigating agency to which the matter may be referred by the Department of Justice, all pertinent information and evidence concerning the indicated violations; shall desist from further investigation of the criminal aspects of such matters except upon the request of the Department of Justice; and shall cooperate fully with the agency assuming final jurisdiction in establishing proof of criminal violations. After making the necessary referral to the Department of Justice, inquiries conducted by the holding agency compliance organizations shall be limited to obtaining information for administrative purposes. Where irregularities reported or discovered involve wrongdoing on the part of individuals holding positions in Government agencies other than the agency initiating the investigation, the case shall be reported immediately to the Administrator of General Services for an examination in the premises. § 101-45.107-2 Compliance reports. A written report shall be prepared on all compliance investigations conducted by each agency compliance organization. Each holding agency shall maintain files of all such reports. Until otherwise directed by the Administrator of General Services, there shall be transmitted promptly to GSA one copy of any such report which contains information indicating criminality on the part of any person or indicating substantial noncompliance with the Act or with the regulations, orders, directives, and policy statements of the Administrator of General Services. In transmitting such reports to the Administrator of General Services, the agency shall set forth the action taken or contemplated by the agency to correct the improper conditions disclosed by the investigation. Where any matter is referred to the Department of Justice, a copy of the letter of referral shall be transmitted to GSA. § 101-45.302 Sale to Government employees. To the extent not prohibited by the regulations of an executive agency, an employee of such agency (either as a civilian or as a member of the Armed Forces of the United States, including the U.S. Coast Guard, on active duty) may be allowed to purchase Government personal property. The term employee as used in this section includes an agent or immediate member of the household of the employee. [35 FR 14134, Sept. 5, 1970] § 101-45.303 Reporting property for sale. If holding agencies elect to have GSA sell their property, it shall be reported to the appropriate GSA regional office for the region in which the property is physically located in the manner outlined below: (a) Reportable property. Property required to be reported to the GSA regional offices for utilization screening as set forth in part 101-43, if not transferred or donated, will be programmed for sale by the GSA regional office. (b) Nonreportable property. Property not required to be reported for utilization screening and for which any required donation screening has been completed shall be reported to the appropriate GSA regional office on Standard Form 126, Report of Personal Property for Sale (illustrated in §10145.4901-126). Standard Form 126A, Report of Personal Property for SaleContinuation Sheet, shall be used if additional pages are required. Standard Forms 126 and 126A are stocked as fivepart carbon interleaved forms and may be obtained by submitting a requisition in FEDSTRIP/MILSTRIP format to the GSA regional office providing support to the requesting activity. [30 FR 2930, Mar. 6, 1965, as amended at 31 FR 5000, Mar. 26, 1966; 42 FR 40852, Aug. 12, 1977; 59 FR 50697, Oct. 5, 1994] § 101-45.303-1 Describing property. In the interest of good business practice, property reported for sale shall be described in commercial terminology and as fully and accurately as possible, including its condition. § 101-45.303-2 Display and inspection. Holding agencies shall assist prospective bidders to the maximum extent possible during the inspection period prescribed in the sales offering. However, no information shall be provided to a prospective bidder which is not available to all bidders. § 101-45.303-3 Delivery. (a) After full payment has been received from a buyer, the GSA regional office will notify the holding activity by copy of the GSA Form 27A, Purchaser's Receipt and Authority to Release Property, that property may be released to the purchaser. (See §§ 10145.4902-27A (over-the-counter and selfmailer)). Upon completion of a sale, the servicing GSA finance office will simultaneously forward to the holding activity additional copies of the GSA Form 27A and completed copies of Standard Form 1081, Voucher and Schedule of Withdrawals and Credits, for use as internal accounting documents. (b) If a purchaser fails to remove property within the period specified, the GSA regional office shall be advised of this fact, in writing, immediately in order that appropriate action may be taken. (c) The Standard Form (SF) 97, the United States Government Certificate to Obtain Title to a Vehicle, is a fourpart form issued on continuous feed paper. The original certificate is produced on secure paper to readily identify any attempt to alter the form. The SF 97 shall be signed in accordance with requirements established by the head of the agency selling the vehicle. The SF 97 is an accountable form and is serially numbered during the printing process. Each agency shall have an accountable officer who will be responsible for the requisition, storage, and issuance of the SF 97. Certificates showing erasures or strikeovers will be considered invalid. Proper precautions shall be exercised by all agency accountable officers to prevent blank copies of the SF 97 from being obtained by unauthorized persons. (d) Delivery of motor vehicles to purchasers shall be evidenced by submission to the purchaser of a completed original of the SF 97. Two copies of the SF 97 shall be furnished to the owning agency (one copy for the reporting office and one copy for the custodian) and the other copy shall be furnished the contracting officer of the agency effecting the sale or transfer of the motor vehicle. The SF 97 is illustrated at § 101-45.4901-97. Other certificates of release or bills of sale shall not be used in lieu of the SF 97. Instructions for the use of the SF 97 are in § 101-45.490197-1. [53 FR 16121, May 5, 1988, as amended at 57 FR 32446, July 22, 1992] § 101-45.304 Sales methods and procedures. § 101-45.304-1 Competitive bid sales. Except as provided in § 101-45.304-2, property shall be sold by competitive bid sale after advertising, in accordance with this §101-45.304-1. Competitive bid sales include the following: (a) Sealed bid sales. In sealed bid sales, bidders shall be required to submit, to the office designated for receipt and opening of bids, sealed written bids on authorized bid forms for public opening at a time and place designated. (b) Spot bid sales. In spot bid sales, bidders shall be furnished with bid forms in advance of the bidding, a bid form to be used for each lot or unit to be separately sold. Requests for bids on items offered for sale shall be made by the official in charge. In requesting bids, the official in charge shall announce the item, its identification number, and a brief description of the item or lot. The right to reject all such bids for a lot or item shall be reserved in the terms of sale; and when the Invitation for Bids so specifies, lots or items for which all bids have been rejected may be reoffered at the same sale in order to secure an acceptable bid price. After examining all bids, award shall be made or bids rejected immediately following the offering of the item or lot. The bids at spot bid sales shall not be disclosed prior to the announcement of award for any item or lot. Where mailed written or drop bids are permitted, they shall not be disclosed to the public prior to the announcement of award. Bidders may be required to register in advance of the sale. Any special condition of sale shall be set out in the Invitation for Bids in order to assure that all bidders are afforded an opportunity to compete on the same terms and conditions. (c) Auction sales. When the terms and conditions of sale have been published and distributed to participating buyers, any special or unusual conditions of sale shall be announced by the person conducting the auction, immediately prior to commencement of the sale. Offerings must reserve in the Government, the right to accept or reject any or all bids. Lots for which all offers have been rejected may be reoffered later at the same sale to secure acceptable bids, when the published terms and conditions so provide. § 101-45.304-2 Negotiated sales and negotiated sales at fixed prices. (a) Circumstances permitting negotiated sales. While it is the policy to sell property after publicly advertising for bids, property also may be sold by negotiation, subject to obtaining such competition as is feasible under the circumstances, where: (1) It is determined by the agency that the sale involves property: (i) That has an estimated fair market value not in excess of $15,000; (ii) Where public exigency will not admit of the delay incident to advertising; (iii) Where bid prices after advertising therefor are not reasonable (either as to all or some part of the property), or bid prices have not been independently arrived at in open competition, and it is determined that readvertising will serve no useful purpose: Provided, That all responsible bidders who responded to the previous advertising shall be afforded an opportunity to submit offers for the property; or (iv) That the disposal will be to a State, territory, possession, political subdivision thereof, or tax-supported agency therein, and that the estimated fair market value of the property and other satisfactory terms of disposal are obtained by negotiation. (See $10145.304-12.) (2) Full and adequate justification therefor has been submitted to the head of the selling agency or his designee for prior approval, and he has determined: (i) That the public health, safety, or national security will thereby be promoted; or (ii) That it is necessary in the public interest during the period of a national emergency declared by the President or the Congress. The authority of this subdivision shall be used only with respect to a particular lot or lots of personal property identified by the Administrator of General Services or a specifically described category or categories of property determined by the Administrator of General Services during any period fixed by the Administrator of General Services, but not in excess of three months. Declaration of a national emergency alone is not justification for use of this authority; there must be other reasons making use of negotiation necessary in the public interest. (3) Full and adequate justification therefor has been submitted to the Administrator of General Services for his prior approval, and he has determined that the property involved is of a nature and quantity which, if disposed of by advertising would cause such an impact on an industry or industries as to adversely affect the national economy: Provided, That the estimated fair market value of such property and other satisfactory terms of disposal can be obtained by negotiation. (4) Negotiation is otherwise authorized by the Act or other law. (b) Negotiated sales at fixed prices. (1) Property may be sold at fixed prices, either directly or through the use of disposal contractors, only with prior approval by the Administrator of General Services (or designee) of the property categories to be sold. (2) In accordance with §101-45.304-12, prior to offering property to the public, it may be offered at fixed prices, through State agencies for surplus property, to State and local governments (States, territories, possessions, political subdivisions thereof, or taxsupported agencies therein) which have expressed an interest in the property. (c) Explanatory statements. Subject to the exceptions stated in §101-45.3042(c)(2), the selling agency shall prepare an explanatory statement as required by section 203(e)(6) of the Act of the circumstances of each proposed disposal by negotiation. (1) Ten copies of each explanatory statement, mechanically reproduced, shall be submitted to the Administrator of General Services for review and transmittal by the Administrator to the appropriate committees of the Senate and House of Representatives and a copy thereof shall be preserved in the files of the selling agency. Such statements shall be submitted as early as practicable in advance of each proposal. Copies of the Administrator's transmittal letters to the committees will be furnished to the selling agency. In the absence of any action by a committee on the proposed negotiated disposal, the selling agency may consummate the sale on or after 35 days from |