(a) of section 201. Government economy will be furthered by allowing these organizations, supported in whole or in part by the Federal Government, to take advantage of savings in procuring supplies which the Administrator can provide through the operation of a central procurement system.

The expression "or the Senate, or the House of Representatives," which appeared in this subsection as originally enacted in Public Law 152 between "District of Columbia" and "upon its request", was stricken out by section 8 (b) of Public Law 754. However, services and facilities authorized by the Act to be rendered or furnished shall be made available to the Houses of Congress and the Architect of the Capitol, but only upon their request, as provided in section 602 (e) of the Act which was inserted by section 8 (c) of Public Law 754. It is believed that, with the exceptions provided in the Act, the system of centralized procurement, strengthened by the statutory support which the Act provides, will prove its efficiency and economy in the years to come. This does not mean that every item must be procured by a central agency, but only that such an agency must be responsible for determining how every item shall be procured, and for prescribing the manner of procurement which is best under the circumstances.

(c) Application of trade-in allowances.—This subsection authorizes executive agencies to exchange or sell personal property and apply the trade-in allowance or proceeds of sale in whole or part payment for property acquired. This is an expansion of authority given under a number of previous statutes to specific agencies or with respect to specific types of property. While these statutes are repealed by section 602 (a) (8) to (28), the language here is intended to be sufficiently broad to preserve all such existing authority. For example, the Department of Agriculture may continue, subject, of course, to any regulations of the Administrator, to exchange publications without monetary appraisal or detailed listing as it has done in the past under that portion of the act of March 4, 1915 (5 U. S. C. 548), which is repealed by section 602 (a) (14). (See paragraph 5 of the letter of the President, dated July 1, 1949, to all executive agencies, set forth in Appendix B.)

PROPERTY UTILIZATION

SEC. 202. (a) In order to minimize expenditures for property, the Administrator shall prescribe policies and methods to promote the maximum utilization of excess property by executive agencies, and he shall provide for the transfer of excess property among Federal agencies and to the organizations specified in section 109 (f). The Administrator, with the approval of the Director of the Bureau of the Budget, shall prescribe the extent of reimbursement for such transfers of excess property: Provided, That reimbursement shall be required of the fair value, as determined by the Administrator, of any excess property transferred whenever net proceeds are requested pursuant to section 204 (b) or whenever either the transferor or the transferee agency (or the organizational unit affected) is subject to the Government Corporation Control Act (59 Stat. 597, 31 U.S. C. 841) or is an organization specified in section 109 (f); and that excess property determined by the Administrator to be suitable for distribution through the supply centers of the General Services Administration shall be retransferred as prices fixed by the Administrator with due regard to prices established in accordance with section 109 (b).

(b) Each executive agency shall (1) maintain adequate inventory controls and accountability systems for the property under its control, (2) continuously survey property under its control to determine which is excess property, and promptly report such property to the Administrator, (3) perform the care and handling of such excess property, and (4) transfer or dispose of such property as promptly as possible in accordance with authority delegated and regulations prescribed by the Administrator.

(c) Each executive agency shall, as far as practicable, (1) make reassignments of property among activities within the agency when such property is determined to be no longer required for the purposes of the appropriation from which it was purchased, (2) transfer excess property under its control to other Federal agencies and to organizations specified in section 109 (f), and (3) obtain excess property from other Federal agencies.

[(d), (e), (f)-repealed]

(g) Whenever the Administrator determines that the temporary assignment or reassignment of any space in excess real property to any Federal agency for office, storage, or related facilities would be more advantageous than the permanent transfer of such property, he may make such assignment or reassignment for such period of time. as he shall determine and obtain, in the absence of appropriation available to him therefor, appropriate reimbursement from the using agency for the expense of maintaining such space.

(h) The Administrator may authorize the abandonment, destruction, or donation to public bodies of property which has no commercial

value or of which the estimated cost of continued care and handling would exceed the estimated proceeds from its sale.

ANALYSIS

Section 202. Property utilization (Sec. 202, 63 Stat. 384, as amended by sec. 1 (f)-(h), 66 Stat. 593; 40 U. S. C. 483)

This section deals with the most important phase of property management, which is continuing use by the Government of the Government's property.

(a) Over-all direction of the Administrator of General Services; reimbursement for transfers of excess property.-This subsection directs the Administrator of General Services to prescribe policies and methods to promote the maximum utilization of excess property by executive agencies. He is to provide for transfers of such property among Federal agencies and to the District of Columbia government, mixed-ownership Government corporations, and certain indicated non-Federal agencies. The extent of reimbursement to be made for such transfers shall be determined by the Administrator, with the approval of the Director of the Bureau of the Budget. However, the proviso in the subsection requires that there be reimbursement of the fair value, as determined by the Administrator, of excess property transferred, whenever net proceeds are requested pursuant to section 204 (b) of the Act (where property was originally acquired by the use of reimbursable funds or funds not appropriated from the general fund of the Treasury), or when transfers are made to or from wholly-owned Government corporations and those organizations specified in section 109 (f) (principally mixed-ownership Government corporations and the government of the District of Columbia). The proviso also makes it clear that excess property that has been taken into supply centers of the General Services Administration for redistribution shall be retransferred to agencies at prices fixed by the Administrator with due regard to prices established in accordance with section 109 (b) of the Act.

This subsection was revised to read as above set forth by subsection (f) of section 1 of Public Law 522, 82nd Congress, approved July 12, 1952. Prior to that enactment, and as it appeared in Public Law 152, the subsection read as follows:

"SEC. 202. (a) In order to minimize expenditures for property, the Administrator shall prescribe policies and methods to promote the maximum utilization of excess property by executive agencies, and he shall provide for the transfer of excess property among Federal agencies."

Under this superseded subsection, and under subsection 202 (e) of Public Law 152 which was repealed by subsection (h) of section 1 of Public Law 522, reimbursement at fair value was required, with limited exceptions, for transfers of excess property between Federal agencies. These amendments made by Public Law 522 were intended to permit better utilization of excess property by other Federal agencies which have need for such property. A considerable amount of excess property which had been reported to the General Services Administration for redistribution to other Federal agencies could not under previous authority be transferred to the needing agencies, since reimbursement was required under the "fair value" provision of subsection 202 (e) of the Federal Property and Administrative Services Act of 1949. The needing agencies contended that they had no funds available for reimbursing the owning agency, and the General Services Administration did not have authority to transfer without reimbursement. As a result the best utilization of excess property was not attained. The revision of section 202 (a) of the Act liberalized the effect of the statute and at the same time provided a more flexible method for transfer so that greater utilization of excess property could be attained, while at the same time retaining existing exceptions specifically authorized by law.

The amendments made by Public Law 522 remove the need for requesting specific legislation in order that excess real property may be transferred between agencies without reimbursement. Further, the revision will permit betterquality available excess items to replace old items in poor condition, and thus will allow the disposal as surplus of the outmoded equipment and reduction of procurement of new property. Without such flexibility, available excess would have to be disposed of either by donation for educational or public health purposes or by sale unless another agency had an immediate or reasonably foresee

able need. The amendment will also facilitate use of excess property in the supply of furniture and furnishings for Government office buildings; the transfer of small lots of excess items where the cost of processing transfer documents is out of proportion to the value of the property; and, as provided in the Act, the taking of excess items into General Services Administration supply centers for later redistribution to agencies.

The committee reports accompanying H. R. 5350 which became Public Law 522 (House Report No. 1524 and Senate Report No. 2075, 82d Congress, 2d Session) stated that it was intended that when regulations are developed to implement this subsection, in collaboration with the Bureau of the Budget, due regard will be given to procedures that will either preclude undue augmentation of specific appropriations provided for the acquisition of property or take into account in subsequent appropriations prior transfers of excess property; and that transfers of excess property by the Administrator be carefully related to the actual supply needs and inventory situation in the receiving agency.

(b) Responsibility of executive agencies to survey property. This subsection imposes upon each executive agency the responsibility, in the first instance, (1) to maintain adequate inventory controls and accountability systems for its property (see also sec. 205 (b)), (2) to survey its property continuously to determine which is excess to its needs and promptly report excess property to the Administrator, (3) to care for such excess property, and (4) to transfer or dispose of such property in accordance with authority delegated and regulations prescribed by the Administrator.

(c) Responsibility of executive agencies to use property.—This subsection similarly imposes upon each executive agency the responsibility in the first instance to reassign property among activities within such agency, to transfer its excess property to other Federal agencies and to organizations specified in section 109 (f) of the Act, and to obtain for its use property which is excess to the needs of other agencies. The words at the end of clause (2) "and to organizations specified in section 109 (f)" were added by subsection (g) of section 1 of Public Law 522, 82d Congress, approved July 12, 1952. The purpose of the amendment was to authorize transfer of excess property to the District of Columbia government, mixed-ownership Government corporations, and certain indicated non-Federal agencies. Since the Administrator is directed by section 201 (b) of the Act to procure supplies and services for such corporations and the District, this amended subsection authorizes furnishing to them excess property from an additional and economical source, which likewise reduces the Government's surplus property disposal operation. There was thus restored to the District of Columbia government authority to receive Federal excess property, which was temporarily curtailed because of certain technical repeals made by Public Law 247, 82d Congress (sec. 1 (130) and (131)), which law is discussed in the analysis under section 212 of the Act.

Note relative to subsections (d), (e), and (f) formerly in section 202 of the Act. In section 202 of Public Law 152 as originally enacted there appeared subsections (d), (e), and (f), which were repealed by subsection (h) of section 1 of Public Law 522, and which read as follows:

"(d) Under existing provisions of law and procedures defined by the Secretary of Defense, and without regard to the requirements of this section except subsection (f), excess property of one of the departments of the National Military Establishment may be transferred to another department thereof.

"(e) Transfers of excess property between Federal agencies (except transfers for redistribution to other Federal agencies or for disposal as surplus property) shall be at the fair value thereof, as determined by, or pursuant to regulations of, the Administrator, unless such transfer is otherwise authorized by any law approved subsequent to June 21, 1944, to be without reimbursement or transfer of funds.

"(f) The Director of the Bureau of the Budget shall prescribe regulations providing for the reporting to said Director by executive agencies of such reassignments or transfers of property between activities financed by different appropriations as he shall deem appropriate, and the reassignments and transfers so reported shall be reported to the Congress in the annual budget or otherwise as said Director may determine."

The repeal of these three subsections is explained as follows:

Section 202 (d).-In view of the legislation establishing the Department of Defense, this authority with respect to the departments of that establishment was no longer necessary. Reassignments of property among the military departments and activities of the Department of Defense can be accomplished under the provisions of section 202 (c) of the Act. Moreover, the limitation in section 202 (d) to "existing provisions of law and procedures" would unduly restrict reassignments within the Department of Defense.

Section 202 (e).-The effect of the repeal of this provision has been considered above, in connection with subsection (a) of Section 202.

Section 202 (f).—This repeal was technical, not substantive. Reports of reassignments or transfers of property between agency activities financed by different appropriations can be required by the Director of the Bureau of the Budget, at his discretion, under the Budget and Accounting Procedures Act of 1950 (Public Law 784, 81st Congress, 64 Stat. 832). Special reference to reporting such information to the Congress can be deleted without detriment to the public service.

(g) Assignment of office and warehouse space. This subsection clarifies and strengthens previous law by authorizing the Administrator of General Services to assign and reassign space in excess real property to any Federal agency for office, storage, or related facilities. He may obtain reimbursement for such assignment in the absence of an appropriation available to him therefor. It is expected that operations under this subsection can and should materially lessen the present leasing of space for Government use in private office buildings.

(h) Abandonment or donation of property.-This subsection authorizes the abandonment, destruction, or donation to public bodies of property which has no commercial value, or of which the estimated cost of continued care and handling would exceed the estimated proceeds from its sale.