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Orders under Federal Supply
Schedule contracts.

Orders for GSA stores stock.
Furnishing information to con-
tractors.

Payment for GSA stores stock.

Subpart 1-5.10 [Reserved]

AUTHORITY: The provisions of this Part 1-5 Issued under sec. 205 (c), 63 Stat. 390; 40 U.S.C. 486(c).

Subpart 1-5.1—[Reserved]

Subpart 1-5.2—[Reserved]

Subpart 1-5.3-Excess Personal

Property

SOURCE: The provisions of this Subpart 1-5.3 appear at 29 F.R. 10187, July 24, 1964. unless otherwise noted.

81-5.300 Scope of subpart.

This subpart sets forth policies and related material regarding the use of excess personal property as a source of supply. This subpart does not include, modify, or supersede instructions concerning the reassignment of personal property within executive agencies and the transfer of excess, or other instructions concerning the utilization of Government-owned personal property, which are contained in Part 101-43 of the Federal Property Management Regulations.

(30 F.R. 16111, Dec. 28, 1965]

§ 1-5.301 Definition of excess personal property.

"Excess personal property" means any personal 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.

§ 1-5.302 Policy.

To the fullest extent practicable, agencies shall use excess personal property as the first source of supply in fulfilling their requirements and requirements of their cost-type contractors.

§ 1-5.303 Implementation of policy.

(a) In giving effect to the policy stated in § 1-5.302, agencies should provide that:

(1) Personnel authorized to approve actions for procurement or other acquisition of personal property will make positive efforts to obtain excess before such actions are undertaken.

(2) Personnel mentioned in (1) of this 1-5.303 (a) will receive available information concerning excess personal property from appropriate General Serv. ices Administration regional offices.

(b) Prior to procurement or other acquisition of property, careful and receptive consideration shall be given to utilization of known usable excess personal property of a similar type, including the possibility of substitution or adaptation of excess items not identical with requested items, whether the excess items are unused, rehabilitated, or in used condition, and regardless of whether the intended acquisition would be from General Services Administration stores stock or from other sources of supply.

81-5.304 Assistance by General Serv.

ices Administration in filling requirements from excess.

(a) Information regarding the availability of excess personal property may be obtained through the following:

(1) Personal contact with the General Services Administration or the holding installation.

(2) Review of excess personal property catalogs and bulletins circularized by the General Services Administration.

(3) Submission of personal property requirements to the regional offices of the General Services Administration. (GSA Form 1539, Request for Excess Personal Property, is available for this purpose.)

(4) Examination and inspection of reports and samples of excess personal property assembled for this purpose in General Services Administration regional offices.

(b) The General Services Administration will assist agencies in meeting their requirements for property of the types excepted from reporting as excess by 8 101-43.312 of the Federal Property Management Regulations. Federal agencies requiring such property should contact the appropriate GSA regional office. GSA area utilization officers, stationed at military points throughout the

United States which generate the largest amounts of excess, are screening and offering for Government use nonreported excess personal property as it becomes available for transfer.

[29 F.R. 10187, July 24, 1964, as amended at 30 F.R. 16111, Dec. 28, 1965]

Subpart 1-5.4-Procurement of Prisonmade Products

SOURCE: 39 FR 41710, Dec. 2, 1974, unless otherwise noted.

§ 1-5.400 Scope of subpart.

This subpart prescribes the policies and procedures to be followed in the procurement of products and services produced or performed by Federal Prison Industries, Inc. (FPI).

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(a) Federal Prison Industries, Inc. is a wholly owned government corporation of the District of Columbia which was established in 1934 by Act of Congress and an Executive order. The corporation now operates under the authority of 18 U.S.C. 4121-4128.

(b) The corporation is self-supporting and administered by a board of six directors appointed by the President to serve without compensation. The board represents industry, labor, agriculture, retailers and consumers, the Department of Defense, and the Attorney General.

(c) The chief function of the corporation is to provide training and employment for prisoners confined in Federal penal and correctional institutions. A substantial part of the earnings of the corporation is expended in carrying out a comprehensive vocational training program under which more than half of the prisoners receive occupational training in connection with the industries and the maintenance activities of the institutions themselves.

(d) Diversified products and services are produced or provided so that no single private industry shall bear an undue burden of competition from the products of prison workshops or activities and that there is minimum competition with private industry and free labor.

§ 1-5.402 Mandatory procurement of prison-made products.

Federal departments, agencies, and all other government institutions of the United States shall purchase the products which are produced by FPI and listed in their "Schedule of Products

Made in Federal Penal and Correctional Institutions" (hereinafter called the "Schedule") to the extent that such products are available and meet the requirements of the ordering office.

§ 1-5.403 Preferences in the choice of procurement sources.

(a) Suitable Government used or excess property is the first source of supply (see § 1-1.302-1).

(b) Where similar products are produced both by Federal penal and correctional institutions and by workshops for blind and other severely handicapped, but the products are not available from FPI, they shall be procured from the workshops for blind and other severely handicapped before utilizing commercial sources.

(c) Services shall be procured from workshops for blind and other severely handicapped to the extent they are available before such services are procured from FPI or commercial sources.

(d) Other sources of supply may be utilized when products or services are not available as provided in paragraphs (a), (b), and (c) of this § 1-5.403.

§ 1-5.404 Schedule of products and

services.

Products manufactured by Federal penal and correctional institutions are produced in strict conformance with Federal or other applicable specifications. Their sale is restricted by law to departments and agencies of the Federal Government. The products and services available are listed in the Schedule.

§ 1-5.405 Non-mandatory procurement of prison-made products.

If a product is not listed on the Schedule but is of a type normally produced by Federal penal and correctional institutions, agencies are encouraged to solicit FPI to determine the feasibility of adding the item to its Schedule.

§ 1-5.406
§ 1-5.406-1 Carload quantities

Procurement procedures.

and

items not stocked by the General Services Administration (GSA). Orders for (a) carload lots, and (b) products which are not stocked by GSA shall be prepared in accordance with the procedures contained in the Schedule and forwarded in duplicate to Federal Prison Industries, Inc., U.S. Department of Justice, Washington, DC 20537.

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(a) A clearance by FPI is required before procuring products from other sources which are available from FPI, except

(1) For purchases of less than carload lots of common use items, as listed in Schedule A of the Schedule, when they are purchased from the Federal Supply Service of GSA;

(2) When immediate delivery or performance is required by public exigency; (3) When suitable used or excess Government property can be secured;

(4) When the products are procured and used outside the United States;

(5) When requirements are for unlisted items other than canvas itmes, signs, or furniture costing $100 or less;

or

(6) When orders are for listed items amounting to $25 or less that require delivery within 10 days (refer to individual sections of the Schedule for special clearance instructions pertaining to a particular class of product).

(b) Formal clearance on FPI Form 34 will be issued promptly for all products which are not available. Telegraphic clearances may be issued in emergencies, but clearances cannot be issued subsequent to purchase. Clearances should be attached to the initial voucher to prevent an exception being taken by the General Accounting Office.

(c) General or blanket clearances may be issued when classes of products are not available.

(d) Purchases from other sources because of lower prices are not authorized, and no clearances may be issued on this basis.

(e) Disputes regarding price, quality, character, or suitability of products produced by FPI are subject to arbitration as specified in 18 U.S.C. 4124. The statute provides that the arbitration shall be conducted by a board consisting of the Comptroller General of the United States, the Administrator of General Services, and the Director of the Office of Management and Budget, or their representatives. The decisions of the board are final and binding on all parties.

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(b) Complete rebuilding of major components of contractor-owned or contractor-leased equipment will require the approval of the contracting officer in each specific instance. Before issuing an authorization, the agency contracting officer shall determine the advantage to the Government to be obtained therefrom and shall take into consideration any recommendations of the contractor.

(c) Except as otherwise specifically authorized by the Administrator of General Services at the request of the agency Involved, Government prime contractors and their subcontractors shall not be authorized to obtain interagency motor pool vehicles and related services for use In connection with the performance of any contract or subcontract other than cost-reimbursement type.

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cles and related services shall be given only under the following conditions:

(1) The agency determines that provision of motor pool vehicles and related services to its contractor will accomplish agency contractual objectives and will effect demonstrable economies;

(2) The contractor or subcontractor shall procure automobile liability insurance covering bodily injury and property damage, with such limits of liability as may be required or approved by the agency, protecting the contractor, subcontractor, and the Government against third party claims arising from the ownership, maintenance, or use of a motor pool vehicle;

(3) Periodic checks will be made by the agency to assure that authorized contractors and subcontractors are using vehicles and related services exclusively under cost-reimbursement type contracts and subcontracts; and

(4) The contractor or subcontractor will assume the cost or expense of any use of motor pool vehicles and services not related to the performance of the contract without the right of reimbursement from the Government for such cost or expense.

(b) Authorizations shall be in writing and shall cite the number of the costreimbursement type contract or subcontract; specify any applicable limitations on the authority, including the period of eligibility; and any other pertinent Information.

(c) Agencies authorizing contractor use of interagency motor pool vehicles and related services are subject to the responsibilities and liabilities provided in Subpart 101-39.8 of Part 101-39 of this title.

§ 1-5.503 Means of obtaining service.

(a) Requests for service by authorized contractors and subcontractors shall be submitted in writing to the appropriate General Services Administration regional office, Transportation and Communications Service, Motor Equipment Division. Such requests shall include the following information:

(1) Two copies of agency authorization to obtain vehicles or related services from General Services Administration;

(2) Number of vehicles and/or related services required and period(s) of use:

(3) A list of the names of employees of the authorized contractor who are eligible to request vehicles and related services;

(4) A listing of the make, model, and serial number of contractor-owned or contractor-leased equipment authorized to be serviced; and

(5) Billing instructions and address. (b) Requests involving unusual quantities of vehicles should be submitted as far in advance as possible to facilitate inaking vehicles available.

§ 1-5.504 Use of services.

Use of interagency motor pool vehicles. their service and maintenance, and the use of related services by cost-reimbursement type contractors and subcontractors shall be in accordance with Part 10139 of this title and with instructions in the Operators Packet which is furnished with each interagency motor pool vehicle. "Official use" of interagency motor pool vehicles and related services by authorized Government contractors and subcontractors is defined in § 101-39.602 of this title.

Subpart 1-5.6-[Reserved]

Subpart 1-5.7— [Reserved]

Subpart 1-5.8-Procurement of Products of the Blind and Other Severely Handicapped

SOURCE: 39 FR 24898, July 8, 1974, unless otherwise noted.

§ 1-5.800 Scope of subpart.

This subpart prescribes policies and procedures for carrying out the requirements of the Wagner-O'Day Act, as amended (Pub. L. 92-28, 85 Stat. 77 (41 U.S.C. 46-48c)), and the rules of the Committee for Purchase from the Blind and Other Severely Handicapped (41 CFR Part 51; 38 FR 16316, June 21, 1973; 38 FR 19045, July 16, 1973; as amended by 39 FR 35365, October 1, 1974). [41 FR 53662, Dec. 8, 1976]

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ment List may be obtained by submitting GSA Form 457, FSS Publications Mailing List Application, to the General Services Administration, Building 41, Federal Center, Denver, Colorado 80225. The Procurement List is identified by Mailing Code OOSC-0002. All other correspondence to the Committee should be addressed to the Executive Director of the Committee at the address listed on the inside front cover of the Procurement List.

[39 FR 24898, July 8, 1974, as amended at 41 FR 53662, Dec. 8, 1976]

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As used in this subpart, the following terms have the meanings stated.

(a) "Act" means the Wagner-O'Day Act of June 25, 1938, as amended by Pub. L. 92-28, June 23, 1971, 85 Stat. 77 (41 U.S.C. 46-48c).

(b) "Committee" means the Committee for Purchase from the Blind and Other Severely Handicapped.

(c) "Central nonprofit agency" means an agency organized under the laws of the United States or of any State, operated in the interest of the blind or other severely handicapped, the net income of which does not inure in whole or in part to the benefit of any shareholder or other individual, and designated by the Committee to facilitate the distribution (by direct allocation, subcontract, or other means) of orders of the Government for commodities and services on the Procurement List among workshops for the blind or workshops for other severely handicapped, and to assist the Committee in administering these regulations.

(d) "Government" and "entity of Government" mean any entity of the Legislative branch or Judicial branch, any executive agency, military department, Government corporation or independent establishment, U.S. Postal Service or any nonappropriated fund instrumentality of the Armed Forces.

(e) "Ordering office" means any activity in an entity of the Government that places orders for the procurement of any commodity or service on the Procurement List.

(f) "Military resale commodities" means commodities on the Procurement List sold for the private, individual use of authorized patrons of Armed Forces commissaries or exchanges, or like activities of other Government departments and agencies.

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