obsolete provisions and does not provide for the central leadership and direction necessary to coordinate the complex activities concerned with the procurement, use, and disposal of Government property. The Congress has considered basic revisions in the Government's system of property management in the past. The Seventy-seventh and Seventy-eighth Congresses devoted much attention to this subject. This work was interrupted, however, by the more urgent ned for emergency legislation to provide for the disposal of surplus war property. The Surplus Property Act of 1944 was enacted for this purpose. The War Assets Administration and its predecessor agencies have been responsible for the disposal of surplus war property at home. The Department of State has been responsible for disposing of surplus property located abroad. The Surplus Property Act was not designed to be permanent property management legislation. Rather, its purpose was to achieve a number of special objectives which would make the disposal of the huge war surpluses a constructive force in demobilization and reconversion. An effective job has been done in achieving these objectives. Disposal operations have been carried on without the uncontrolled dumping of surplus stocks which would have created hazards to business and employment. Many thousands of veterans have been assisted in establishing or improving their own business, professional, and agricultural enterprises. The competitive position of small business has been protected and strengthened. State and local governments and schools throughout the country have received substantial benefits. Our surplus property abroad has been disposed of in a manner which would make the greatest contribution to world recovery efforts. The critical period in disposing of war surpluses is now drawing to a close. By June 30, 1948, the total amount of war property declared surplus, both at home and abroad, will have reached nearly $40,000,000,000, in terms of original cost. By that date, it is expected that all but about $6,000,000,000 in property will have been disposed of. Of the original $40,000,000,000 total, property costing about $11,000,000,000 was located abroad, of which about $600,000,000 will be left next June. This small remaining inventory, which is widely dispersed, can be liquidated most efficiently by transferring responsibility for its disposal from the Department of State to the owning agencies-primarily the Departments of the Army and Navy. Where appropriate, the disposal of this property would continue to be conducted so as to assist our international programs. About $29,000,000,000 of the $40,000,000,000 total represented property located in the United States and its Territories and possessions. The greatest number of buyers has been interested in consumer and producer goods which constitute the main types of surplus personal property useful in a peacetime economy. It is estimated that on June 30 only about $500,000,000 of a total of almost $10,000,000,000 of such goods wil remain. Much of this small remainder will have limited sales appeal and all of it will face increasingly stiff competition from the record output of our industries. As inventories of surplus goods decline, unit costs of disposal will necessarily rise. Furthermore, disposal costs are held at high levels by the rigid priority and preference provisions of the present law. Unless the law is changed, we will soon reach the point at which it will cost the Government more to dispose of these goods than it receives from their sale. We should therefore simplify the disposal procedure and make possible reduced costs by providing for the elimination of these cumbersome provisions when the remaining quantities of this property are no longer of sufficient size to justify their maintenance. The same considerations apply to aircraft, aircraft components, electronic equipment, and other miscellaneous items, of which about 1.2 billion dollars, mainly aircraft components, are expected to remain on June 30 from a total of nearly 10 billion dollars. No useful purpose would be served by retaining the present priority and preference provisions of the law for these items, for which there is very limited demand. A different situation exists with respect to surplus real property. Of a total of somewhat more than 9 billion dollars of such surplus there will remain on June 30 a substantial amount-some 2.6 billion dollars of property awaiting disposition and an additional 1.1 billion dollars under lease. A long-range program will be required for the ultimate disposition of this property. Removal of preferences and priorities applying to this type of property would not result in substantial economies but would, on the other hand, confuse a large number of current negotiations for the orderly sale of important assets. The War Assets Administration has served well as an emergency agency for the disposal of surplus war property. It would not be suitable, however, to maintain a large independent agency to liquidate the remaining personal property and to deal with the longer range disposal of real property. The War Assets Administration, therefore, should be terminated at the end of this fiscal year and the remainder of the war surplus property disposal program transferred to a permanent agency. At the same time that these actions relating to surplus war property are taken, we should improve our permanent system for the procurement, use, and disposal of property. The problem of providing for orderly liquidation of the surplus warproperty program and the problem of establishing a new and better system for administering the property-management functions of the Government are intimately related. Both should be considered together. Efforts to achieve permanent improvement should be directed toward two main objectives: First, such procurement, disposal, and other property management functions as can best be performed at a central point should be consolidated in a single Government agency. Second, adequate provision should be made for the coordination throughout the Government of those property management activities which are not to be performed by this central agency. Government supply activities with respect to personal property, such as procurement and warehousing, are now centralized to a considerable extent in the Bureau of Federal Supply of the Treasury Department. Certain exemptions from these central supply activities are made, as in the case of the National Military Establishment for reasons of national security. Moreover, some items are purchased for the Government not by the Bureau of Federal Supply but by other agencies with special competence. Appropriate exceptions for such cases as these should, of course, be continued. At the present time, Government procurement and disposal functions are not in the same agency. They should be brought together. Common direction of purchasing and disposal activities will permit the establishment of an efficient system to insure that equipment no longer needed by one agency is made available to other agencies and to prevent the purchase of new equipment when surplus equipment is already available. Furthermore, the centralized services concerned with personal property are closely related to centralized services concerned wtih real property and they should be brought together in the same agency. At the present time, central services with respect to real property are primarily the responsibility of the Public Buildings Administration of the Federal Works Agency. Taking all these considerations into account, I am convinced that the Federal Works Agency should be made the central property management agency of the Government, by transferring to it the Bureau of Federal Supply and the remaining war surplus disposal functions of the War Assets Administration. Placing the Bureau of Federal Supply and the surplus disposal functions of the War Assets Administration in the same agency will make possible common direction of purchasing and disposal operations, thus presenting obvious opportunities for economies. Placing the Bureau of Federal Supply in the same agency with the Public Buildings Administration will facilitate the procurement of utility services, the operation of repair shops, and the provision of other common services affecting both real and personal property. To improve the administration of those property management activities which are not centralized, each executive agency should be required by law to maintain an adequate inventory control of its property, to shift property which has served its original purpose to other uses within the agency when appropriate, and to report to the Federal Works Administrator any property no longer needed. Furthermore, the Federal Works Administrator should be given authority to establish a uniform system of identifying and classifying property, to make surveys of Government property management activities, and to prescribe uniform policies. To accomplish these objectives, I recommend that the Congress enact legislation for the following purposes: 1. To terminate the War Assets Administration and transfer to the Federal Works Agency the function of liquidating the remaining domestic surplus war property. The priorities and preference requirements of the Surplus Property Act applying to personal property should be eliminated in the near future. Those applying to real property should continue in effect until December 31, 1949. 2. To transfer the responsibility for liquidating the remaining surplus war property abroad from the Department of State to the owning agencies. 3. To transfer the Bureau of Federal Supply and its functions to the Federal Works Agency. 4. To provide on a permanent basis for the orderly and economical procurement, use, and disposal of Government property under the central leadership and direction of the Federal Works Administrator. It is especially important that the Federal Works Administrator be given responsibility for developing improved methods, and that sufficient flexibility be provided in the law to permit the adoption of new methods without delay. I have requested the Federal Works Administrator to submit to the appropriate committees of the Congress proposed legislation to carry out this program. The enactment of such legislation will abolish our largest remaining war agency and provide for an orderly liquidation of the present war-surplus disposal program. It will establish an improved system for managing the Government's property, and mark a major advance toward the development of a central service agency for the Federal Government. These steps will make an important contribution to the efficient and economical conduct of the Government. THE WHITE HOUSE, March 5, 1948. HARRY S. TRUMAN. [Committee Print March 18, 1948] A BILL To reorganize and simplify the procurement, utilization, and disposal of Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SHORT TITLE That this Act may be cited as the "Federal Property Act of 1948". Sec. 2. Declaration of policy. Sec. 3. Definitions. TABLE OF CONTENTS TITLE I-PROPERTY MANAGEMENT Sec. 101. Transfer of the Bureau of Federal Supply and of the affairs of the War Assets Sec. 102. Procurement, warehousing, and related activities. Sec. 103. Property utilization. Sec. 104. Disposal of surplus property. Sec. 105. Proceeds from transfer or disposition of property. Sec. 107. Surveys and standardization. Sec. 108. Applicability of antitrust laws. Sec. 109. Employment of personnel. TITLE II-FOREIGN EXCESS PROPERTY Sec. 201. Disposal of foreign excess property. TITLE III-GENERAL PROVISIONS Sec. 301. Applicability of existing procedures. Sec. 305. Effective date. DECLARATION OF POLICY SEC. 2. It is the intent of Congress in enacting this legislation to provide for the Government an economic and efficient system for (a) the procurement and supply of personal property and nonpersonal services; (b) the utilization of available property; and (c) the disposal of surplus property. DEFINITIONS SEC. 3. As used in this Act (a) The term "executive agency" means any executive department or independent establishment in the executive branch of the Government, including any wholly owned Government corporation. (b) The term "Federal agency" means any executive agency or any establishment in the legislative or judicial branch of the Government. (c) The term "Administrator" means the Federal Works Administrator. (d) The term "property" means any interest in property of any kind except (i) the public domain and lands reserved or dedicated for national forest or national park purposes; and (ii) naval vessels of the following categories: Battleships, cruisers, aircraft carriers, destroyers, and submarines. (e) The term "excess property" means any property under the control of any Federal agency which is not required for its needs and responsibilities, as determined by the head thereof. (f) The term "foreign excess property" means any excess property located outside the continental United States, Hawaii, Alaska, Puerto Rico, and the Virgin Islands. (g) The term "surplus property" means any excess property not required for the needs and responsibilities of the Federal Government, as determined by the Administrator. (h) The term "care and handling" includes completing, repairing, converting, handling, and transporting, and, in the case of property which is dangerous to public health or safety, destroying or rendering innocuous such property. (i) The term "person" includes any corporation, partnership, firm, association, trust, estate, or other entity. (j) The term "nonpersonal services" means such contractual services, other than personal and professional services, as the Administrator shall designate. (k) The term "contractor inventory" means (i) any property acquired by and in the possession of a contractor or subcontractor under a contract pursuant to the terms of which title is vested in the Government, and in excess of the amounts needed to complete performance under such contract; and (ii) any property which the Government is obligated to take over under any type of contract as a result either of any change in the specifications or plans thereunder or of the termination of such contract (or subcontract thereunder), prior to completion of the work, for the convenience or at the option of the Government. TITLE I-PROPERTY MANAGEMENT TRANSFER OF THE BUREAU OF FEDERAL SUPPLY AND OF THE AFFAIRS OF THE WAR ASSETS ADMINISTRATION TO THE FEDERAL WORKS AGENCY SEC. 101. (a) The Bureau of Federal Supply in the Department of the Treasury and its functions, records, property, personnel, obligations, and commitments, are hereby transferred from the Department of the Treasury to the Federal Works Agency, together with such additional records, property, and personnel of the Department of the Treasury as the Director of the Bureau of the Budget shall determine to relate primarily to functions transferred by this subsection or vested in the Administrator by this title. There shall be at the head of such Bureau a Commissioner of Federal Supply, who shall be appointed by the Administrator and who shall receive compensation at the rate of $10,000 per annum. The functions of (i) the Director of the Bureau of Federal Supply, (ii) the personnel of such Bureau, and (iii) the Secretary of the Treasury, relating to the Bureau of Federal Supply, are hereby transferred to the Administrator. (b) The functions, records, property, personnel, obligations, and commitments of the War Assets Administration are hereby transferred to the Federal Works Agency, there, together with the functions vested in the Administrator by this title and relating to the disposal of surplus property, to be administered in a Bureau of Surplus Property, which is hereby established, and at the head of which shall be a Commissioner of Surplus Property who shall be appointed by the Administrator and receive compensation at the rate of $10,000 per annum. The functions of the War Assets Administrator are hereby transferred to the Federal Works Administrator. The War Assets Administration and the office of the War Assets Administrator are hereby abolished. For a period of three years, or until such earlier time within that period as the Administrator shall otherwise determine, (i) personnel transferred by this subsection shall retain and enjoy only such employment rights, within the Federal Works Agency, as relate to (1) the functions and activities which compose the Bureau of Surplus Property, and (2) such of the functions and activities provided for in this title and relating to property utilization as are now engaged in by the War Assets Administration, and (ii) no employment right in connection with any such functions or activities shall accrue to the other personnel of the Federal Works Agency until the end of the aforesaid three-year period or the aforesaid determination of the Administrator, if made within that period. Personnel now holding appointments granted under section 5 (b) of the Surplus Property Act of 1944, as amended, may be continued in such positions or may be appointed to similar positions for such time as the Administrator may determine. Nothing in this subsection shall be construed to prevent any person from acquiring or retaining employment rights generally in the Federal Works Agency otherwise than by the provisions of this subsection. (c) All unexpended balances of appropriations, allocations, or other funds available or to be made available, for the use of the Bureau of Federal Supply and of the War Assets Administration, and so much of the other unexpended balances of appropriations, allocations, or other funds of the Department of the Treasury, available or to be made available, as the Director of the Bureau of the Budget shall determine to relate primarily to functions transferred from such Department or vested in the Administrator by the provisions of this title, shall be transferred to the Federal Works Agency for use in connection with said functions. (d) The Administrator is hereby authorized, in his discretion, (i) in order to provide for the effective accomplishment of the functions transferred by this section or vested in him by this title, and from time to time, to reorganize the several bureaus and administrations within the Federal Works Agency, to regroup, transfer, and distribute any such functions within the Federal Works Agency, and with the approval of the Director of the Bureau of the Budget to make appropriate transfers of funds in connection therewith; and (ii), at such time as he may deem appropriate, to abolish the Bureau of Surplus Property. (e) Any other provision of this section notwithstanding, there may be retained in the Department of the Treasury any function referred to in subsection (a) of this section which the Director of the Bureau of the Budget shall, within ten days after the effective date of this Act, determine to be essential to the orderly administration of the affairs of the agencies of such Department, other than the Bureau of Federal Supply, together with such records, property, personnel, obligations, commitments, and unexpended balances of appropriations, allocations, and other funds, available or to be made available, of said Department, as said Director shall determine. PROCUREMENT, WAREHOUSING, AND RELATED ACTIVITIES SEC. 102. (a) The Administrator shall, in respect of executive agencies, and to the extent that he determines that so doing is advantageous to the Government in terms of economy, efficiency, or service, and with due regard to the program activities of the agencies concerned (i) prescribe policies and methods of procurement of personal property and nonpersonal services, and of warehousing, stocking, transportation, and distribution of personal property, and (ii) operate, and after consultation with the executive agencies affected, consolidate, take over, or arrange for the operation by any executive agency of, warehouses, supply centers, repair shops, fuel yards, and other similar facilities, and (iii) procure personal property and nonpersonal services: Provided, That no action by the Administrator for or in relation to executive agencies (other than the Federal Works Agency) under clause (i) above and no taking over by the Administrator of warehousing functions or of procurement functions shall be effected until the Administrator has given the head of each executive agency concerned adequate advance notice: And provided further, That the Administrator shall not perform the functions referred to in clauses (i), (ii), and (iii) above, for or in relation to the National Military Establishment, in any respect which the Secretary of Defense with the approval of the President shall in the interest of national security specify, nor in respect of any matter referred to the President under this proviso pending the decision of the President thereon. (b) The Administrator may provide any of the services specified in subsection (a) of this section to any other Federal agency, mixed ownership corporation (as defined in the Government Corporation Control Act), or the District of Columbia, upon its request. PROPERTY UTILIZATION SEC. 103. (a) In order to minimize expenditures for property, the Administrator shall prescribe policies and methods to promote the maximum utilization |