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 5-2. 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

(c) Schools or other facilities which (1) discriminate because of race, creed, color, or national origin in the admission or subsequent treatment of students or (2) place any restrictions on trainees because of race, creed, color, or national origin, may not be used for training at Government expense. If an agency plans to make use of a school or facility, and does not know whether it complies with this policy, the agency shall submit a report to the Office of Personnel in accordance with DPM AG Chapter 410, Subchapter 53c.

[29 FR 14286, Oct. 16, 1964, as amended at 36 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.)

§ 4-4.5097 Typewriters.

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

§ 4-4.5098 Used or reconditioned equipment.

(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 fixed than when used equipment is purchased.

(b) Purchase provisions. If new equipment is not available, or the price thereof is excessive, and it is necessary to advertise for used or reconditioned equipment, care should be taken to specify clearly just what quality or what degree of precision is required. Bidders should be requested to indicate the place at which the equipment may be inspected. The Government should make an inspection prior to the award. (See Subpart 4-14.1.)

§ 4-4.5099 Visual services.

(a) Washington, D.C. area. All art and graphic, exhibit, still photograph, motion picture production requirements and photographic production equipment shall be ordered through the Office of Governmental and Public Affairs on a reimbursable basis, except as otherwise authorized by that

Office. Projection equipment and still cameras are excluded from this requirement.

(b) Field offices. Field procurement offices shall insure that adequate consultation with information and visual equipment specialists is obtained in the making of purchases or contracts for visual requirements (see 3 AR Chapter 9).

(c) Prior approvals. All procurement of motion picture production equipment, production services, and processing arrangements shall have prior approval of the Office of Governmental and Public Affairs.

(d) Microform Retrieval Equipment Guide. As a guide for determining equipment selection and other general information concerning the uses of microfilm retrieval equipment, agencies may obtain from GSA supply depots the Microform Retrieval Equipment Guide. Ordering information is shown below.

§ 4-4.5099b Year-end purchasing.

(a) Applicable statute. Public Law 159, (31 U.S.C. 712a) restricts the use of appropriations "made specifically for the service of any fiscal year,

to the payment of expenses properly incurred during that year, or to the fulfillment of contracts properly made within that year."

(b) Policy. It is the Department's policy, to insure that the same test of need is applied for any proposed expenditures at or near the close of the fiscal year as at the beginning or at any other time during the year. No unnecessary expenditures of year-end balances of funds (which would otherwise revert to the Treasury) for supplies, materials, etc., shall be authorized.

(c) Pertinent factors. It is recognized that during the closing months of the year a considerable amount of purchasing may occur (1) because of the

agricultural nature of the work, such as seasonal programs, (2) where no amount of advance planning can materially affect the timing of purchases, as in the cases where special appropriations are made late in the year and in such unusual instances as restoration expenses due to disasters, unavoidable procurement delays, etc., (3) in connection with continuing appropriations, where fiscal-year ends have no particular significance in timing purchases, and (4) where, as a matter of administrative determination, obligations for needed supplies, equipment or services have been deferred until the latter part of the fiscal year, to insure that adequate funds are available throughout the year to cover unexpected expenses, without the need for seeking supplemental appropriations.

(d) Documentation. Because of the continued interest in the general subject of year-end purchasing, agency procurement records should be so maintained that if required for reporting purposes factors having a significant effect on last quarter buying could be readily submitted.

(e) Procurement planning. Program needs shall be identified by those responsible for procurement in cooperation with program managers. Such needs shall be scheduled for procurement at the time of year that is most advantageous, all factors considered, including those factors in paragraph (d) of this section. For purchase documents submitted to GSA near the end of the fiscal year see § 101-26.104 of this title.

[42 FR 10687, Feb. 23, 1977]

this title and Part 104-18 of Agriculture Property Management Regulations. See 1 AR 673 for required approvals for establishment, consolidation, change in location or abolition of offices. See § 104-18.150 of Agriculture Property Management Regulations for required approvals for long-term leases required under 7 U.S.C. 2250a. Leases shall be made only by persons to whom, or incumbents of positions to which, space acquisition and assignment authority has been delegated pursuant to § 104-18.104 of Agriculture Property Management Regulations. When formal advertising is used or the annual rental exceeds $10,000, leases shall be made only by persons who have been delegated procurement contracting authority. (See § 4-1.404 of this title.)

[42 FR 10687, Feb. 23, 1977]

84-4.5402 Forms, specifications and provisions.

(a) Forms. Standard Forms 2, 2-A, and 2-B shall be used in accordance with FPR Subpart 1-16.6 for all advertised and negotiated leases of real property other than vacant land in the United States and its possessions. These forms may be used elsewhere at the discretion of the agency, with the additional provision that "Government" whenever it appears in the forms means the United States Government. They may also be used with appropriate modifications for leasing of vacant land. Also, modifications may be made as permitted by Subpart 1-16.6 except for the automatic renewal provisions referred to therein. Automatic renewal provisions are prohibited.

(b) Specifications and general provisions. Specifications and additional general provisions, not inconsistent with Standard Form 2-A may be used as required.

(c) Termination provision. There is no objection to a provision authorizing termination by the Government upon appropriate written notice if it is anticipated that the premises may not be required for the full term of the lease. This becomes particularly important when it is anticipated that Government-owned space may become available. However, termination provisions

tend to increase costs and each case should be considered on its merits.

(d) Renewal option provisions. Provisions for renewal from year to year at the option of the Government may be included. Such renewals must be accomplished by issuance of affirmative notice prior to the beginning of each renewal term. No automatic renewal provisions shall be used. (See § 44.5410.)

[33 FR 11765, Aug. 20, 1968]

§ 4-4.5403 Availability of Governmentcontrolled space.

Prior to taking leasing action, agencies should investigate thoroughly to determine whether suitable space is available under Government ownership, under lease by other Government agencies, or can be obtained rent free. (See §§ 101-18.102 and 10147.201-2(b).)

[33 FR 11765, Aug. 20, 1968]

84-4.5404 Formation of lease contracts.

Leases amounting to more than $10,000 per year shall be made by formal advertising where feasible. Normally, this will be true where (a) more than one prospective lessor has available real property meeting the Department's requirements satisfactorily, (b) there are available specifications adequate to permit competition between prospective lessors on a common basis, and (c) sufficient time is available for public advertising. Otherwise leases shall be made by negotiation in accordance with Parts 1-3 of this title. Advertised leases shall be made in accordance with Parts 1-2 of this title to the extent applicable, except that Standard Form 2-A shall be used in lieu of Standard Form 32. Where a lease is made as the result of advertising, the accepted bid shall be incorporated in the lease.

[42 FR 10687, Feb. 23, 1977]

§ 4-4.5405 Period of lease.

A lease shall cover only the period of time for which the funds to be charged are available, except in the case of long-term leases pursuant to § 104-18.150(a).

[33 FR 11765, Aug. 20, 1968]

§ 4-4.5406 Rental limitation of Economy Act.

The Economy Act of 1932, as amended (40 U.S.C. 278a), limits the annual rental to be paid for any building or part of a building in the United States to 15 percent of the fair market value of the building or part thereof, as the case may be, occupied by the Government, except where the rental does not exceed $2,000 per year. The amount to which this limitation is applied is determined by deducting from the rental stated in the lease the actual cost of any services furnished by the lessor. Bids shall not be accepted and contracts shall not be negotiated at rental rates exceeding this limitation.

[33 FR 11765, Aug. 20, 1968]

84-4.5407 Evidence of authority.

A bid or lease executed by an individual other than the owner of the property to be leased must be accompanied by evidence of the agent's authority to so act. (See Instructions for completing Standard Form 2-A.)

[42 FR 10687, Feb. 23, 1977]

§ 4-4.5408 Leases with Government employees.

No lease shall be entered into for the rental of premises owned by an employee of the Federal Government except when all of the following conditions have been met:

(a) It has been determined that the activity must be located in the particular city or town;

(b) Formal advertising, including distribution of invitations to bid to all possible sources of supply, reveals no other suitable premises are available;

(c) The Government's contracting officer has no interest directly or indirectly in the premises; and

(d) The transaction is approved by the Agency Head in writing. [33 FR 11765, Aug. 20, 1968]

§ 4-4.5409 Contingent fees.

The procedures in Subpart 1-1.5 shall be followed in connection with leases.

[33 FR 11765, Aug. 20, 1968]

(a) Renewal by notice. Where a valid option to renew exists, it is not necessary to obtain competition prior to issuing the notice of renewals; however, agencies should be careful to determine that cheaper suitable premises are not available prior to taking renewal action.

(b) Renewal by agreement. Where there is no option to renew a lease, the lease may be extended from year to year if informal competition is obtained each year showing that the continued occupancy of the premises is to the advantage of the Government. Prepare a record of competition obtained and file with the lease. Any change in the terms of the lease may be made in the renewal agreement if justified by the competition except that an additional renewal option cannot be obtained in a renewal agreement unless there is formal competition, or except where the nature of the occupancy precludes other competition.

[33 FR 11765, Aug. 20, 1968, as amended at 42 FR 10687, Feb. 23, 1977]

§ 4-4.5411 Recording leases.

While normally it is not necessary to record leases of the Government, the recording laws in certain states provide that unless recorded, a lease containing a renewal option is not valid against a subsequent purchaser of fee ownership of the property covered by the lease, even with knowledge. Where such recording laws exist, leases containing a renewal option should be recorded if failure to record would result in loss to the Government. Likewise, leases that contain an option by the Government to purchase the premises should also be recorded to protect the interest of the Government.

[33 FR 11765, Aug. 20, 1968]

PART 4-5-SPECIAL AND DIRECTED SOURCES OF SUPPLY

Subpart 4-5.3-Excess Personal Property

Sec.

4-5.302 Policy.