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(Enclosure 8)



The total inventory of excess and surplus personal property on hand at naval activities in the continental United States and its Territories and possessions at the end of April was $122.7 million. This compares with $113.2 million at the end of March 1952, an increase of $9.5 million. These figures included all property from the time it becomes excess to the reporting activity until it is finally disposed of by redistribution in the Navy, by transfer, sale, or other means.

Reports were received from 104 activities but 72.5 percent of the inventory was accounted for by the following activities : Activity:

Inventory U. S. Marine Corps.

$18, 316, 000 NSD Clearfield

15, 461, 000 NSC Oakland -

11, 834, 000 NABD Port Hueneme..

10, 142, 000 NSD Mechanicsburg

7, 602, 000 NSD Scotia.

6, 272, 000 NAS Norfolk.

4, 410, 000 NASD Philadelphia.

3, 780,000 NSY Norfolk

3, 551, 000 NSC Norfolk.

2, 647, 000 NSY Mare Island..

2, 613,000 NS San Diego

2, 358, 000


88, 986, 000 The general disposal instructions require that material excess to an activity be reported to the cognizant Bureau or supply demand control point (SDCP) for disposition instructions. If the Bureau or SDCP considers it excess to its needs it is referred to the Surplus Materials Division (SMD) of the Bureau of Supplies and Accounts. SMD screens it with the other bureaus, SDCP's, Army and Air Force. If no requirements are found it is then reported to the Federal Supply Service (FSS) of the General Services Administration (GSA) where similar screening is accomplished for the other Federal agencies. Property not used by other Federal agencies or donated to educational institutions is referred back by FSS to the holding activity for disposition.

The breakdown of the above inventory according to the status of the property is as follows:

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Each status above may be considered to be a potential delaying factor in this process of screening and disposing of excess and surplus property. The balance of this report consists of a separate discussion of each of these factors. (1) Awaiting Bureau or SDCP clearance

Property awaiting clearance by cognizant bureaus or supply demand control points showed a decrease of 5.8 percent during April and remained first in importance. This category now represents 27.3 percent of the total inventory. The total at the end of April was $33.4 million compared with $35.5 million at the end of March. The breakdown of this total by bureau follows:



33, 434



(2) Pending local disposal action

This category remained second in importance for the second consecutive month. Property in this status represented 25.5 percent of the total in April and 21.1 percent in March. During April there was an increase of $7.4 million in the amount of property which was pending local disposal action. The following six reporting activities accounted for approximately 65 percent of the total amount of property pending local disposal action. Activity:

Amount U. S. Marine Corps.

$7, 716, 000 NSD Mechanicsburg

3, 351, 000 NSC Oakland

3, 277, 000 NASD Philadelphia

2, 447, 000 NAS Norfolk

2, 276, 000 NSY Mare Island--

1, 328, 000



20, 425,000 (3) Awaiting SMD clearance

Excess property in this status on April 30 amounted to $22.8 million. This is $10.4 million or 84 percent more than was reported the previous month. Marine Corps property accounted for most of this increase.

The following activities reported properly with an acquisition cost of over $1 million awaiting SMD clearance. Activity:

Amount U. S. Marine Corps..

$10, 600,000 NSD Scotia--

2, 116, 000 NABD Port Hueneme.

2, 001, 000 NSC Oakland

1, 399, 000 NSD Mechanicsburg

1, 289, 000 (4) Not yet reported to bureaus

This category showed an increase of 10 percent during April. The total for April was $18.8 million compared with the March total of $17.1 million. NSD Clearfield reported the largest increase in this category ($1.8 million). (5) Awaiting FSS clearance

This category contained $12.9 million of excess property on April and moved from third in importance to fifth. This represents a decrease of 31.3 percent during April.

The following naval activities reported sizable amounts of property in this category: Activity:

Amount NSD Scotia ($2,771,000 BuShips cognizance).

$3, 275, 000 NSD Mechanicsburg ($841,000 BuShips cognizance)

1, 298, 000 NSC Oakland ($803,000 BuAer cognizance)

1, 211, 000


(6) Property referred for sale to authorized selling activities by their satellite

activities This classification contained $3.4 million of property, a decrease of 39.1 percent from the March figure. All activities reported less than $1 million pending sales for their satellite activities.


The eleventh report on the status of excess and surplus personal property shows an increase of 8.3 percent in the inventory of excess and surplus property during April 1952.

Property awaiting bureau or SDCP clearance, property awaiting FSS clearance, and property reported to authorized selling activities for sale showed decreases during April.

The increase of 30.9 percent in property pending local disposal action was largely accounted for by the Marine Corps.

The large increase in property awaiting SMD clearance was almost entirely due to the $10.6 million reported by the Marine Corps.

Further information on the status of excess and surplus property may be found in the statistical tables which follow :



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Washington 25, D. C., October 9, 1950,


To: Heads of Federal agencies.
Subject: Utilization of Excess Personal Property and Disposal of Surplus Per-

sonal Property. 1. Purpose. This regulation prescribes policies and methods governing the reporting and utilization of excess-personal property and the disposal, including donation, of surplus personal property. This regulation is issued pursuant to the authority vested in the Administrator of General Services by the provisions of the Federal Property and Administrative Services Act of 1949, Public Law 152, Eighty-first Congress, as amended by Public Law 754, Eighty-first Congress.

2. Contents.The provisions of this regulation are grouped under the following sections :

1. Purpose.
2. Contents.
3. Definitions.
4. Scope,
5. Basic policy.
6. Utilization of excess personal property.
7. Reporting of excess personal property.
8. Transfers without reporting as excess.
9. Transfers at fair value; reimbursement.
10. Suspension of procurement; retention of custody.
11. Cost of care and handling.
12. Proceeds.
13. Transfer for redistribution.
14. Obtaining excess personal property.
15. Determination of excess personal property as surplus.
16. Disposal of surplus personal property by donation.
17. Disposal of surplus personal property other than by donation.
18. Contractor inventory.
19. Applicability of Federal excise taxes.
20. Holding agency compliance functions.
21. Performance report.
22. Records and reports.
23. Standard forms.
24. Authority under other laws.
25. Rescreening of surplus personal property for defense purposes.
26. Agency regulations.
27. Exceptions and deviations.
28. Rescission of regulations.
29. Effective date

3. Definitions.--a. Terms defined in the act.Terms not defined in subsection b of this section which are defined in the Federal Property and Administrative Services Act of 1949, as amended, hereinafter referred to as the act, shall in this regulation have the meaning given to them in the act.

b. Other term 8.-(1) “Administration” means the General Services Administration acting by or through the Administrator of General Services or a designated official to whom functions under this regulation have been delegated by the Administrator.

(2) "Administrator" means the Administrator of General Services.

(3) "Agricultural commodity" means a product resulting from the cultivation of the soil or husbandry on farms and in the form customarily marketed by farmers.

(4) “Airport property” as used in this regulation means any surplus real property including improvements and personal property located thereon as part of the operating unit, which, in the determination of the Administrator of Civil Aeronautics, is essential, suitable, or desirable for the development, improvement, operation, or maintenance of a public airport; or reasonably necessary to fulfill the immediate and foreseeable future requirements of the owner or operator for the development, improvement, operation or maintenance of a publie airport, including property needed to develop sources of revenue from nonaviation businesses at a public airport.

(5) "Care and handling” includes preserving, protecting, packing, storing, handling, conserving, transporting, preparing for shipment, and loading excess and surplus personal property, and, in the case of property which is dangerous to public health or safety, destroying or rendering innocuous such property.

(6) “Contractor inventory” means (a) any property acquired by and in the possession of a contractor or subcontractor (including Government-furnished property) under a contract pursuant to the terms of which title is vested in the Government, and in excess of the amounts needed to complete full performance under the entire contract; and (b) any property which the Government is obligated or has the option to take over under any type of contract as a result either of any changes in the specifications or plans thereunder or of the termina. tion of such contract (or subcontract thereunder), prior to completion of the work, for the convenience or at the option of the Government.

(7) "Cotton or woolen goods” means any textile, article, or product resulting from the processing or manufacturing, in whole or in major part, of cotton or wool.

(8) "Donable property” means surplus equipment, materials, books, or other supplies, under the control of any executive agency, except (a) such property as may be specified from time to time by the Administrator, (b) property which, by other law, is precluded from donation under this regulation, and (c) property which was acquired by the use of funds either not appropriated from the general fund of the Treasury or appropriated therefrom but by law reimbursable from assessment, tax, or other revenue or receipts, unless the holding agency deems it uneconomical or impracticable to dispose of the property other than by donation.

(9) “Educational institution" means any tax-supported school system, school, college, and university, any other nonprofit school, college, and university which has been held exempt from taxation under section 101 (6) of the Internal Revenue Code and any State department of education or other State agency desig. nated by State law to receive property for and distribute it to such tax-supported and nonprofit school systems, schools, colleges, and universities within the State.

(10 "Excess" when used with respect to personal property means any such property under the control of any Federal agency which is not required for its needs and the discharge of its responsibilities, as determined by the head thereof.

(11) "Executive agency" means any executive department or independent establishment in the executive branch of the Government, including any wholly owned Government corporation.

(12) “Federal agency” means any executive agency or any establishment in the legislative or judicial branch of the Government (except the Senate and the House of Representatives and the Architect of the Capitol and any activities under his direction).

(13) "Holding agency" means the executive agency which has accountability for the property involved.

(14) "Intangible personal property” includes but is not limited to such classes of personal property as patents, patent rights, processes, techniques, inventions, and copyrights, except as, in a given case or class of cases, may be excluded by the Administrator.

(15) “Narcotics” means the following drugs or preparations thereof: (a) Opium, coca leaves, cocaine, or any salt, derivative, or preparation of opium, coca leaves, or cocaine; (b) isonipecaine (demerol); (c) any drug found by the Secretary of the Treasury and proclaimed by the President to have an addictionforming or addiction-sustaining liability similar to morphine or cocaine, such as methadon (delephine, adanon) and nisentil; and (d) marijuana (Cannabis sativa L.).

(16) "Personal property” means property of any kind or any interest there in, except real property and naval vessels of the following categories: Battleships, cruisers, aircraft carriers, destroyers, and submarines.

(17) "Public-health institution” means any tax-supported medical institution, hospital, clinic, and health center, any other nonprofit medical institution, hospital, clinic, and health center which has been held exempt from taxation under section 101 (6) of the Internal Revenue Code, and any State department of health or other State agency designated by State law to receive property for and distribute it to such tax-supported and nonprofit medical institutions, hospitals, clinics, and health centers within the State.

(18) “Real property” means (a) any interest in land (except the public domain and lands reserved or dedicated for national-forest or national-park pur

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