14 FAH-1 H-720
DISPOSAL PROCEDURES FOR DEPARTMENT AND FIELD OFFICES
(Office of Origin: A/LM)
14 FAH-1 H-721 DISPOSition of Domestic-located U.S. Government Personal PROPERTY
a. The phrase "Domestic State" for these procedures covers the disposition of Department of State personal property physically located in the United States, the U.S. Virgin Islands, American Samoa, Guam, Puerto Rico, the Federated States of Micronesia, the Marshall Islands, Palau, and the Northern Mariana Islands (reference 41 CFR 102-36.10).
c. The executive director of each bureau or office will ensure disposal of U.S. Government personal property is not conducted during the annual inventory cycle:
(1) For the purposes of disposal operations, the annual inventory cycle begins when the Physical Inventory Identification (PIID) is generated in ILMS;
(2) Sales and other disposal actions for personal property should be conducted prior to generating PIIDs in ILMS. This includes reconciling asset management records in ILMS Asset Management (AM);
(3) Bureaus and offices may continue disposal actions for personal property when their annual inventory has been certified by the Property Management Division (A/LM/PMP/PM); and
(4) The bureau or office property management officer (PMO) must fully describe any unusual or specialized circumstances that may require disposition of personal property during the annual inventory cycle and obtain written approval of a deviation from the Director, Property Management Division (A/LM/PMP/PM).
d. All U.S. Government personal property must be reviewed to prevent accumulation of property in offices, residences, or warehouses:
(1) That is no longer needed for official business;
(2) Requires replacement due to replacement criteria being met; or
(3) In such a condition that economical repair cannot occur.
e. Such property must be identified and reported in a timely way for disposition processing in order for the U.S. Government to achieve maximum return on investment. The U.S. Government uses several authorities and methods for disposition, depending on the type of property involved, including:
(1) Exchange/sale authority;
(2) Excess and surplus personal property;
(3) Government property on a contract;
(4) Foreign gifts;
(5) Unclaimed personal property (i.e. lost and found); or
(6) Voluntarily abandoned personal property.
f. A high-level overview of the various disposition processes is provided at 14 FAH-1 Exhibit H-721.
14 FAH-1 H-722 Inspection of Personal Property Prior to disposition
a. The custodial officer must ensure the 12 FAM 561 required security inspection is completed prior to the physical removal of unneeded U.S. Government personal property. This includes inspection by the employee who used the property for any classified, sensitive information or material. The Form DS-586, Turn-In Property Inspection Certification, is completed and signed by the employee, then signed by the unit security officer, then affixed to each property item that required inspection.
b. The employee to whom the property is assigned must inspect all desks, tables, loose cushions on sofas and chairs, book shelves, safes, filing cabinets, bookcases or any property with shelves or drawers. Drawers must be removed during inspection and areas behind and underneath the drawers examined to assure that they are emptied of all classified material. Office magnetic media, typewriters, data or word processing and automatic data processing (ADP) equipment must also be cleared of all ribbons or sensitive information stored in memory banks. Magnetic media consisting of hard drives, compact disks, thumb drives, or solid state drives have additional requirements for triple overwrite or specific methods for destruction. For domestic unclassified SBU hard drive disposition methods, see 12 FAM 623.10 plus 12 FAH-10 H-262.5-4 for media sanitization methods.
c. After the employee has completed the examination for classified material and signed Form DS-586, the custodial officer inspects the property and the unit security officer (SO) or the information systems security officer (ISSO) inspects the machines/systems equipment and signs Form DS-586 (bottom right block). The custodial officer ensures a completed and signed Form DS-586 is affixed to each property item in a place and manner that will not cause damage when removed. The back of a cabinet or chair and the inside panel of a desk are examples of locations.
d. In the absence of the employee or where common-use property is involved, the unit supervisor makes the initial check or assigns an employee to make the check.
e. The unit security officer must reset combinations to factory standards of 50-25-50 for safes and 10-20-30 for padlocks used with bar lock cabinets, or clearly mark the current combination on the item. Property having keys must have the keys securely attached to the item. No property in a locked state can be processed for disposition until opened and properly inspected.
14 FAH-1 H-723 Disposition of Unneeded property in the Washington, DC Metropolitian area
14 FAH-1 H-723.1 Use of GSAXcess and U.S. General Services Administration, Surplus Sales Center, Springfield, Virginia
a. Due to storage and removal issues at the major locations of the Department of State for unneeded property in the Washington DC, metropolitan area, A/LM/PMP maintains and funds a Memorandum of Understanding under authority of the Economy Act, 31 U.S.C. 1535, with the U.S. General Services Administration (GSA) Federal Acquisition Service.
b. Department use of the GSA Surplus Sales Center warehouse in Springfield, Virginia provides a more accessible location to physically move the surplus property to when the property reaches the sales stage of disposal. This allows GSA sales contracting officers to use fixed-price sales methods, internet-based auctions sales, and sealed-bid sales methods to achieve the maximum net sales proceeds versus the cost of conducting the sales.
c. The GSA Surplus Sales Center warehouse in Springfield, Virginia cannot physically accept certain types of personal property that, because of their characteristics, may not be sold by regulation or requires special handling. Examples include extremely hazardous personal property and hazardous waste, perishables, ammunition, weapons, animals, and controlled substances (see 41 CFR 102-40, Utilization and Disposition of Personal Property with Special Handling Requirements).
d. A/LM/PMP/PM will advise bureau or office accountable property officers (APO) and custodial officers of the types and conditions of alternative disposition processes as they evolve with market realities for the Washington, DC metropolitan area.
e. The bureau or office APO and custodial officer(s), should register for and attend the Foreign Service Institute course PA352 - ILMS Asset Management Excess Property Custodial Officer Training (Domestic). Contact A/LM/PMP/PM for domestic excess and surplus personal property disposition questions.
14 FAH-1 H-723.2 Use of ILMS-Excess Property Module for Excess/Surplus Personal Property Processing by GSA for Washington, DC Area
a. The bureau and office custodial officer(s) identify unneeded personal property in the ILMS-excess module and may change the location in ILMS to the excess property location code or leave the original ILMS location unchanged. Custodial officers may need to add to the ILMS excess module unneeded personal property that did not meet the Department of State accountable property criteria or is not already in ILMS. The custodial officer submits the unneeded personal property having a disposal condition code of 1, 4, or 7 in ILMS by clicking the "submit to APO approval" button.
b. Federal electronic equipment (FEA) in disposal condition code X (salvage) or S (scrap) should not be reported to GSAXcess for transfer to other U.S. Government agencies or the U.S. State Agencies for Surplus Property and should not be sold by GSA Surplus Sales Center. Instead, this property will be processed by recycling through certified recyclers (reference GSA Bulletin FMR B-34, Disposal of Federal Electronic Assets). Custodial officers should contact A/LM/PMP/PM who can provide information on the certified recyclers available for the Washington, DC area. Property items designated as Federal electronic assets (FEA) include:
(1) Copiers (Federal Supply Class (FSC) 3610);
(2) Telephone, fax machines, and communication equipment (Federal Supply Group (FSG) 58);
(3) Electronic equipment components (within FSG 59);
(4) Electrical and electronic properties measuring and testing instruments (FSC 6625);
(5) Digital cameras (within FSC 6720);
(6) Desktop and laptop/portable computers, computer monitors, displays, printers, peripherals, and electronic components (most of FSG 70);
(7) Television and other displays (e.g., FSC 7730); and
(8) Other items that clearly utilize solid state electronics technology or vacuum tubes to perform operational functions.
c. The custodial officer is responsible for identifying excess property and assigning the appropriate disposal condition code to each item. It is important that the custodial officer accurately inspect and assess the condition of the excess items. In evaluating the assets, the custodial officer should use the following table to assign a condition code to the personal property:
Disposal Condition Code
41 CFR 102-36.240
New or unused
1 or N
New. Property which is in new condition or unused condition and can be used immediately without modifications or repairs.
Used poor; Used, renovated, Repairs req. poor
4 or U
Usable. Property which shows some wear, but can be used without significant repair.
7 or R
Repairable. Property which is unusable in its current condition but can be economically repaired.
Salvage. Property which has value in excess of its basic material content, but repair or rehabilitation is impractical and/or uneconomical.
Scrap. Property which has no value except for its basic material content.
d The APO will receive a notification email from ILMS to review actions in the ILMS excess module and approve the transmission of descriptive information to GSAXcess to begin the disposition processes. The APO should ensure complete descriptive information is provided and that the personal property is not needed by their bureau or office. Once the APO, using the ILMS excess module, clicks on the "authorize excess" button, the descriptive information and reporting data is submitted by the ILMS interface to GSAXcess for acceptance and processing.
e. Once the acceptable data, including descriptive information, is successfully received in GSAXcess, the property is officially "excess" personal property and the 15-calendar day reutilization screening by all U.S. Government agencies and the eligible organizations under the State Agencies for Surplus Property begins. At the same time, descriptive information is made available in ILMS Ariba for internal Department of State screening.
14 FAH-1 H-723.2-1 Reutilization by the Department of State within the Washington, DC Metropolitan Area
a. Should the losing office or bureau request the "excess" personal property from ILMS Ariba during the 15-calendar day screening period, the custodial officer will change the personal property record in the ILMS excess module by clicking on the "excess transferred" button. This will automatically create a Form DS-584, Property Transaction, for the "reutilization" awaiting authorization by the custodial officer and approval by the APO if within the same bureau or office.
b. If "reutilization" is to a different bureau, office or post, then the APO and the bureau executive director of the owning bureau authorize and approve, respectively, the form DS-584, Property Transaction. The bureau accountable property officer will notify A/LM/PMP/PM who will complete the "reutilization" transaction in ILMS.
c. The ILMS excess module interfaces with GSAXcess to process a "withdrawal" of excess personal property "reutilized" by the Department of State based on the custodial officer or APO transaction in ILMS.
14 FAH-1 H-723.2-2 Transfer to Other U.S. Government Agency by GSA for the Department of State within Washington, DC Metropolitan Area
a. Should another U.S. Government agency request the personal property during the 15-calendar day screening period in GSAXcess, the GSA area property officer will make appropriate distribution among competing requests and the status of the transfer approval process can be viewed in GSAXcess.
b. When the ordering U.S. Government agency's authorized official signs and the GSA area property officer has approved the transfer, the GSAXcess system will send an email with the electronic version of the Form SF-122, Transfer Order Excess Personal Property (Link to GSA Form), for the custodial officer to release the excess personal property to the acquiring U.S. Government agency representative.
c. The custodial officer should contact the requesting agency's officials and ensure that physical pickup and removal of the excess personal property is accomplished within 15 calendar days from the date of the GSA area property officer approval of the Form SF-122 (reference 41 CFR 102.36.135).
d. The custodial officer must print and obtain the signature of the person removing the property on the electronic version of the Form SF-122s.
e. The custodial officer must upload the electronic version of Form SF-122 into the ILMS excess module and attach it to the asset(s) record (s) listed on the transfer document using the "attach document" button. Enter the word "Transfer" plus the transfer order number without spaces as the file name (i.e., Transfer990281835).
f. If the requesting agency does not remove the property within the 15 calendar days, the custodial officer should contact the GSA area property officer who approved the transfer to determine if a transfer to another U.S. Government agency or SASP will be approved, or if the property will continue in the disposition process to sales action.
g. The custodial officer or APO may receive up to three emails from GSAXcess indicating:
(1) The "excess" personal property has been requested by an organization;
(2) The requesting organization authorized official has electronically signed the transfer document in GSAXcess; and
(3) The GSA area property officer has electronically signed and approved the transfer document Form SF-122.
h. The receipt of the GSA area property officer electronically signed and approved transfer document Form SF-122 is the document that authorizes the Department of State custodial officer to physically release the property to the new owner, and is the record document to be uploaded to ILMS to show the property has been transferred to another U.S. Government agency.
14 FAH-1 H-723.3 Donation to U.S. State Agencies for Surplus Property (SASP) by GSA for Department of State within the Washington, DC Metropolitan Area
a. If no U.S. Government agency request for the "excess" personal property has been approved by the GSA area property officer within the 15-calendar day screening period, the property status changes from "excess" to surplus personal property (reference 41 CFR 102-37.30).
b. The GSA area property officer is then authorized to allocate and approve surplus personal property requests by an eligible organization under the U.S. State Agencies for Surplus Property (see 41 CFR 102-37.90 and 40 U.S.C. 549).
c. When the ordering organization's authorized official and the GSA area property officer have approved the transfer, the GSAXcess system will send an email with the electronic version of the Form SF-123, Transfer Order Surplus Personal Property, for the custodial officer to release the surplus personal property to the acquiring organization's representative.
d. The custodial officer must contact the requesting organization's officials and ensure that physical pickup and removal of the surplus personal property is accomplished within 15 calendar days from the date of the GSA area property officer approval of the Form SF-123 (reference 41 CFR 102.37.60).
e. The custodial officer must print and obtain the signature of the person removing the property on the electronic version of the Form SF-123.
f. The custodial officer must upload the electronic version of Form SF-123 into the ILMS excess module and attach it to the asset(s) record(s) listed on the transfer document using the "attach document" button. Enter the term "GSADonation" plus the transfer order number without spaces as the file name (i.e., GSADonation990281835).
g. If the requesting organization does not remove the surplus property within the 15 calendar days, the custodial officer should contact the GSA area property officer who approved the transfer to determine if another transfer to another SASP will be approved, or if the property will continue in the disposition process to sales action.
h. The custodial officer or APO may receive up to three emails from GSAXcess indicating:
(1) The surplus personal property has been requested by an organization;
(2) The requesting organization's authorized official has electronically signed transfer document in GSAXcess; and
(3) The GSA area property officer has electronically signed and approved the transfer document Form SF-123.
i. The receipt of the GSA area property officer electronically signed and approved transfer document Form SF-123 is the record document that authorizes the Department of State custodial officer to physically release the property to the new owner. It is the record document to be uploaded to ILMS to show the property has been transferred by GSA approved donation to an eligible organization under the U.S. State Agencies for Surplus Property.
j. Any remaining surplus personal property in GSAXcess that was not transferred (SF-122 or SF-123) moves to the surplus sales stage of disposition on the 16th calendar day (see 14 FAH-1 H-723.3). GSAXcess will send an email containing a list showing item control numbers, FSC, noun names, quantities and statuses of "GSA sales" for the remaining surplus items that were transmitted from the GSAXcess computer system to the GSA sales automation system (SASy) for processing by GSA sales contracting officers for sales action.
14 FAH-1 H-723.4 Physical Process for Surplus Personal Property to GSA Surplus Sales Center, Springfield, Virginia
a. GSAXcess will send an email having a sale control number starting with 1900 followed by several more zeros and a sequenced number (i.e., 19000000123) in the subject line. The text of the email contains a list showing item control numbers, FSC, noun names, quantities and status of "GSA sales" for the remaining surplus items that were transmitted from the GSAXcess computer system to the GSA sales automation system (SASy) for processing by GSA sales contracting officers for sales action.
b. The custodial officer or APO will receive a second email from GSAAuctions without a sales number. The custodial officer will ensure that the property listed exists and that the disposal condition code and descriptive information is correct.
c. The custodial officer will email A/LM/PMP/PM using GSADisposal@state.gov to schedule a physical pick up and attach a copy of the GSA sale email listing the property. The email must include the following information when scheduling pick up services:
(1) Date preferred for pick-up;
(2) Name, email and phone number of requestor (bureau or office person responsible for the pick-up);
(3) Name, email and phone number of alternate contact;
(4) ILMS business unit;
(5) Bureau or office symbol;
(6) Full address where the property is physically located; and
(7) Quantity of items to be picked up. Provide the quantity of items and number of pallets, plus attach the GSAXcess email notification listing the items.
d. The requestor will be contacted within 48 hours or the next business day to confirm the date and pick up time. The bureau or office is responsible for the disassembling and moving of the property to the loading dock. The property must be staged on the loading dock at the time of pick up.
e. Prior to pick up of the surplus personal property, the property custodian will shrink wrap and palletize the assets for pick up and move them to the loading dock area. A copy of the GSAXcess notification email must be attached to each pallet and nonpalletized item. Any cancellations must occur at least 48 hours prior to the scheduled pick up date and time. If cancellations are made less than 48 hours and your scheduled truck space cannot be filled, your bureau or office will be required to pay a cancellation fee equal to the cost of the number of trucks and laborers reserved.
f. The transportation contractor will physically deliver the surplus property to the GSA Surplus Sales Center at Springfield, Virginia and obtain a GSA-stamped and signed copy of the GSAXcess email with one copy emailed to the custodial officer and one copy emailed to A/LM/PMP/PM via GSADisposal@state.gov.
g. If there are no discrepancies, the custodial officer uses the ILMS excess module and enters "GSA SALE" into the "Requestor" field for the personal property taken to the GSA surplus sale center. Use the ILMS attachment process to upload the signed and GSA stamped electronic copy of the GSAXcess email. The file name should be the bureau or office ILMS business unit followed by the fiscal year and ending with the GSA sales transfer order number (i.e., AFOFY201619000000123). The custodial officer will click the "excess disposed" button in ILMS and the personal property status in ILMS will change to "Disposed."
14 FAH-1 H-723.5 Disposition of Property in Disposal Condition Code S - Scrap
a. The custodial officer must complete Form DS-1882, Domestic Excess Property, listing all personal property in disposal condition S (scrap) or X (salvage) and have the APO sign the Form DS-1882. When describing the property, please indicate one of these four material categories: metal, mixed, ADP, or wood.
b. The completed and signed Form DS-1882 must be sent to the A/LM/PMP/PM email GSADisposal@state.gov. Please include desired date(s) for pick up.
c. A/LM/PMP/PM will contact the GSA Surplus Sales Center to determine if there is a GSA-sealed bid term sale buyer for the type of property or if GSA has a certified recycler that can remove the property.
d. Upon receiving assignment of a GSA-sealed bid term sale buyer or certified recycler, A/LM/PMP/PM will provide the contact information and any relevant paperwork that must be completed for the pickup to the Department of State custodial officer. It is the custodial officer's responsibility to coordinate the pickup.
e. The custodial officer is responsible for ensuring information on the disposition is entered into ILMS-Asset Management and/or provided to A/LM/PMP/PM after the pickup to ensure any applicable information is submitted for the Department of State annual non-Federal Recipient Report (reference 14 FAH-1 H-727.4)
14 FAH-1 H-723.6 Use of Surplus Sales Proceeds to Offset Department of State Direct and Indirect Costs of Sales
a. 40 U.S.C. 571(b), payment of expenses of sale before deposit, along with the implementing U.S. Government-wide regulations at 41 CFR 102-38.295, provide the Department of State, as the holding agency, the ability to retain a portion of the sales proceeds to offset the direct costs and reasonably related indirect costs from the GSA Surplus Sale Center selling Department of State surplus personal property.
b. The Department of State direct sales costs and related indirect costs may include, but are not limited to:
(1) Transportation expenses for the surplus personal property to the GSA Surplus Sale Center at Springfield, Virginia;
(2) Equipment handling, including disassembly and reassembly, warehousing and storage expenses for the surplus personal property once it has reached the sale stage of disposition (generally on the 16th calendar day when the custodial officer receives the GSAAuctions email indicating the surplus property information is now in the GSA Sales Automation System (SASy));
(3) Labor and/or contract costs (i.e., equipment handling and transportation contract services of the surplus personal property to the GSA Surplus Sales Center at Springfield, Virginia);
(4) Demilitarization expense if required to permit the surplus personal property to be sold to the public;
(5) Environment services expense (i.e., recovery of greenhouse gases) if required to permit the surplus personal property to be sold to the public;
(6) Sale preparation;
(7) Supporting inspection of the surplus property prospective buyers;
(8) ILMS enhancements which directly support domestic surplus personal property sold by GSA sales contracting officers;
(9) Costs related to the U.S. Government-wide reporting requirements incurred in selling surplus personal property;
(10) Advertising. Generally, media advertising is the responsibility of, and conducted by the GSA Surplus Sales Center; however, if certain high-dollar or unique surplus property is to be sold, on occasion the holding agency may also provide additional advertisement of the GSA-conducted sales reference;
(11) Appraisal. Generally, the determination of the upset price by the GSA Surplus Sales Center contracting officer conducting the sale; and
(12) Department of State share of the U.S. Government-wide costs to support the eFAS internet portal (i.e., GovSales).
c. The Director, Property Management Division (A/LM/PMP/PM), must manage the sales proceeds returned after the GSA Surplus Sales Center has deducted the GSA sales costs (reference GSA Federal Management Regulation (FMR) Bulletin 2003-B3, "GSA personal property sales services and rates") in the following manner:
(1) Establish a process to track sales proceeds and match to direct and indirect costs incurred in order to support use of the sales proceeds;
(2) Establish internal controls over how funds (sales proceeds) are used:
(a) When the Office of Program Management and Policy (A/LM/PMP) determines that funds (sales proceeds) are to be used for ILMS software enhancements related to the excess property module, a detailed report must be prepared by the Director, Property Management Division (A/LM/PMP/PM), and submitted to A/LM/PMP confirming the funds (sales proceeds) are required for the enhancements; and
(b) If A/LM/PMP distributes any proceeds of sale of domestic surplus personal property to cover other bureau or office direct and indirect costs, then the Director, Property Management Division (A/LM/PMP/PM), is responsible to ensure funds are used in accordance with 41 CFR 102-38.295, paragraph b;
(3) Evaluate quarterly the amount of sales proceeds received from GSA Sales Center, Franconia, Virginia, against the actual cost of supporting the sales and request Global Financial Operations (CGFS/F) to deposit (at least annually) any overage of sales proceeds into the U.S. Treasury's miscellaneous receipts; and
(4) Document with enough detail to provide a level of assurance in the event of an audit or review by an oversight organization.
14 FAH-1 H-723.7 Items the GSA Surplus Sales Center Does not Accept
a. Items such as weapons, ammunition, property containing hazardous materials that the GSA Surplus Sales Center, Franconia, VA will not physically accept, or other large items, may be processed for disposition from their current physical locations (especially at warehouses) using the GSAXcess website to reduce the U.S. Government's cost to perform the disposition processes.
b. Replacement property that the bureau or office desires to process under the exchange/sale authority in order to retain the exchange allowance or net sales proceeds to offset the cost of acquisition for similar new property should use the procedures outlined in 14 FAH-1 H-726. However, when lack of storage space or security concerns limiting inspection of the property by the general public are involved, along with a history of low sales proceeds, it may be more cost effective to process as excess/surplus personal property, especially if the property is normally desired by the SASP (reference 41 CFR 102-39.45 and 41 CFR 102-37.110).
c. All Department of State property on a contract must be processed following the procedures of 14 FAH-1 H-725.
14 FAH-1 H-724 Disposition CHOICES for property located Domestically outside the Washington, DC Metropolitian area
a. The APO must determine if old property under the bureau or office control needs to be replaced to continue operations. If yes, the property should be processed as replacement property under exchange/sale authority (see 14 FAH-1 H-726). The exchange allowance or sales proceeds may be used to offset the cost of the new similar property to be acquired to continue operations.
b. If the APO determines that the unneeded property does not need to be replaced to continue operations or is not eligible to be processed under exchange/sale authority, it is processed as "excess" personal property without reimbursement and net sales proceeds deposited to the U.S. Treasury.
c. If the property is U.S. Government property located domestically on a contract, it is processed in accordance with 14 FAH-1 H-725.
14 FAH-1 H-724.1 Disposition of Excess Personal Property Located Domestically Outside the Washington, DC Metropolitan Area
a. The APO notifies the Department of State national utilization officer (NUO) or alternate NUO of the persons by name and activity address code that are delegated authority to report property as excess to the Department of State and manage the disposition processes for the bureau/office. The accountable property officers for some bureaus have decided to keep the disposition functions centralized at one location and other bureaus have assigned individuals at many different locations.
b. The NUO registers the accountable property officer designated individuals in the GSAXcess website with the authority to report property as excess or exchange/sale, or approve transfers to pre-K to 12th grade nonprofit schools.
c. The GSAXcess website registered users may be provided training from several sources including materials on the website, from the bureau APO, from the NUO alternate, or from GSA utilization specialists nationwide.
d. The APO authorized user, uses the GSAXcess website to enter descriptive narrative information and up to 12 digital pictures of the available excess property. Once the excess property is successfully entered in the GSAXcess website, the Department of State remains the property custodian and is responsible for facilitating the following:
(1) Safeguarding and maintaining the excess personal property throughout the disposition processes;
(2) Showing the property, if contacted by interested eligible parties;
(3) Coordinating removal and timely release to the property's new owner (Federal, State, or public);
(4) Ensuring at the time of sale that additional information is not provided to a buyer that was not made available to all potential eligible bidders in the formal sales listing;
(5) Ensuring that the successful purchaser removes the property using his or her own resources and equipment, and signs the purchase receipt as picked up, with no discrepancies; and
(6) Informing GSA utilization staff or sales contracting officer if the property is not removed as required by the terms of the sales contract or if any discrepancies occur.
e. Concurrently, U.S. Federal agencies are viewing and requesting the available excess personal property in the GSAXcess website at the same time as the SASP screens. The screening timeframes in the GSAXcess website is 21 calendar days except for the following:
(1) FSG 71 Furniture: 14 calendar days screening;
(2) Aircraft (FSC 1510, 1520): 60 calendar days screening;
(3) Vessels 50 feet and over: 60 calendar days screening; and
(4) Exchange/sale property: 2 calendar days screening.
f. GSA utilization staff distribute the property among any competing requesters and approve the electronic GSAXcess website version of Form SF-122, Transfer Order - Excess Personal Property, or Form SF-123, Transfer Order - Surplus Personal Property. The completed and digitally signed transfer documents are sent to the holding agency to identify the specific individual authorized to remove the property as the new owner. U.S. Federal agencies and SASP are responsible for the removal of the property within 15 calendar days. The custodial officer should notify the GSA utilization specialist if the property has not been removed in order to allow GSA to approve the transfer to another organization, or to ensure the property moves to the next disposition process which is sale (reference 41 CFR 102.36.135 and 41 CFR 102-37.110).
g. After Federal and SASP screening and transfers, the remaining property is considered surplus property and rolls over from the GSAXcess website to the sales processes of disposition. The GSA sales contracting officers use the same narrative description and digital pictures to determine the sale type, determine the upset price (the lowest price at which an auction item may be sold), and sale method that will result in the maximum net sales proceeds for the U.S. Government. Generally, the most cost-effective and efficient sale method is internet auction via GSA Auctions which allows electronic bids 24 hours a day, 7 days a week.
h. The GSA sales contracting officer determines the appropriate sale lots based on the type of property, condition and market conditions including past sales history. The custodial officer should ensure the property is still available and prepare sale lot number cards to place on the property.
i. During the inspection and sale bidding period, the custodial officer must ensure that no additional information is provided to any bidder that was not made available to all bidders via the information available from GSA Auctions for each sale lot.
j. GSA sales contracting officers award sales lots to the eligible bidder with the highest bid and collect the sales proceeds. The custodial officer should receive via email a copy of the purchaser's receipt informing the Department to whom the property should be released. The custodial officer should notify the GSA sales contracting officer if the purchaser has not removed the property in the time frame allowed in the sale. The GSA sales contracting officer may hold the purchase in default and reoffer the property in another sale. Any sales differences (e.g., quantity, description), problems or protests should be referred immediately to the GSA sales contracting officer for resolution. The custodial officer should ensure that only the purchaser or their representative (authorized in writing) removes the property. The custodial officer obtains from the party removing the property his or her signature and date on a copy of the purchaser's receipt that is retained by the Department.
k. After removal of all the property by the purchaser, the custodial officer and APO must ensure that ILMS property records are updated to reflect the actual disposition of the property.
14 FAH-1 H-724.2 FSG 70 Computer Equipment to Nonprofit U.S.-Located Schools
a. The Stevenson-Wydler Technology Innovation Act, 15 U.S.C. 3710(i), is the legal authority the Department of State may use to give excess Federal supply classification group (FSG) 70 computer equipment via transfer to nonprofit pre-kindergarten through 12th grade schools located in the United States. See Executive Order 12999, Educational Technology: Ensuring Opportunity for all Children in the Next Century, plus the requirements for employing environmentally sound practices with respect to the disposition of excess or surplus electronic products under Executive Order 13693, Planning for Federal Sustainability in the Next Decade. E.O. 12999 provides guidance on priorities and resulted in the development of the Computers for Learning website that registered schools use to view and select the computer equipment that U.S. Government agencies have reported as excess in the GSAXcess website with disposal condition code 1, 4, or 7.
b. The Department of State uses the GSAXcess website features to effect the transfer of computers and other equipment to the priority nonprofit pre-K through 12th grade schools located in the United States requesting the property via the GSA's Computers for Learning website.
c. The APO or designee registered to use the GSAXcess website must review the school's request, confirm the eligibility of the school, and either deny or approve the request using the GSAXcess website. The GSAXcess website produces an electronic version of Form SF-122, Transfer Order, Excess Personal Property, which documents the actual transfer.
d. The APO or designee registered to use the GSAXcess website must ensure that any remaining FSC 70 computer equipment not transferred to an eligible nonprofit pre-K through 12th grade school located in the United States completes the utilization screening processes for U.S. Federal agencies and SASP.
14 FAH-1 H-725 Disposition of Government Property on a Contract
a. The Federal Acquisition Regulations (FAR) govern the disposition of U.S. Government property on a contract at a domestic location. 48 CFR 45 contains the directions to the Government employees and the property clause at 48 CFR 52.245-1 provides direction to the contractor. The property clause is incorporated into the contract by reference whenever there is U.S. Government property involved in the contract.
b. The contracting officer should appoint in writing a plant clearance officer (PLCO) in accordance with 14 FAH-2 H-148:
(1) Contractor prepares Form SF-1428, Inventory Disposal Schedule, listing U.S. Government personal property no longer needed to support the contract and submits it to the PLCO appointed in writing by the contracting officer for the specific contract;
(2) PLCO reviews and accepts, or returns for correction, inventory disposal schedules within 10 days following receipt from a contractor;
(3) PLCO uses Form SF-1423, Inventory Verification Survey, to verify accepted schedules within 20 days following acceptance;
(4) PLCO must provide the contractor disposition instructions within 120 days after acceptance of Form SF-1428, Inventory Disposal Schedule;
(5) For contractor-acquired property only, the PLCO may:
(a) Authorize return of unused property to the supplier at fair-market value and credit the contract, less reasonable restocking fee, if applicable; and
(b) Authorize sale if not required by the U.S. Government and the contractor wishes to purchase a contractor-acquired or contractor-produced item at unit acquisition cost and credit the contract;
(6) PLCO must initiate reutilization to offer the property for use by other U.S. Government agencies, another U.S. Government contract, or the SASP. This is accomplished using the GSAXcess website. No reimbursement is permitted. The PLCO provides the Department of State NUO a copy of their appointment letter to obtain access to the GSAXcess website to report contractor-held property as no longer needed by the Department of State;
(7) The PLCO follows the procedures of 14 FAH-1 H-724.1, paragraphs d through k, for reporting the contractor-held U.S. Government property into the GSAXcess website and have GSA sales contracting officers conduct the sales using GSA auctions. For contractor-held U.S. Government-owned property outlined in 14 FAH-1 H-724.1, the plant clearance officer is responsible for all APO or custodial officer designated actions:
(a) Sales proceeds may be kept only if the contract or any subcontract thereunder authorizes the proceeds to be credited to the price or cost of the work (reference 40 U.S.C. 574(C), 41 CFR 102-38.295(c)(3), and 48 CFR 45.604-3);
(b) Otherwise, the proceeds of sale are to be credited to the Treasury of the United States as miscellaneous receipts, unless otherwise authorized by statute; and
(c) U.S. Government property on a contract may be processed pursuant to exchange/sale authority with the exchange allowance or sales proceeds the U.S. Government uses to offset the cost of new similar replacement property (reference 48 CFR 45.604-4 and 41 CFR 102-39);
(8) Donation in lieu of abandonment/destruction;
(9) Abandonment/destruction (i.e., trash, including landfill) in accordance with local environmental law or regulations; and
(10) The PLCO must promptly prepare Form SF-1424, Inventory Report, following disposition of all the property on an inventory disposal schedule. Form SF-1424 must be provided to:
(a) Administrative contracting officer; or
(b) Termination contracting officer; and
(c) Property administrator.
14 FAH-1 H-726 Replacement of Personal property UNDER Exchange/sale authority
14 FAH-1 H-726.1 Exchange/Sale Authority
a. The exchange/sale authority (40 U.S.C. 503) permits each executive U.S. Government agency when acquiring personal property worldwide to exchange or sell similar items. Under this provision, the Department may exchange or sell old property and apply the exchange allowance or sale proceeds to offset the payment for the similar new property acquired to continue operations.
b. Most of the old property at post is processed as exchange/sale because it is being replaced with similar property needed to continue operations. To reduce the cost of operations, the post should use the exchange/sale authority for old personal property that is wearing out, or obsolete, and must be replaced.
c. The detailed regulations and restrictions for exchange/sale are at 41 CFR 102.39. The following FSC groups of personal property are not eligible for processing using the exchange/sale authority (see 41 CFR 102-39.60 for additional restrictions):
(1) 10 Weapons;
(2) 11 Nuclear ordnance;
(3) 42 Firefighting, rescue, and safety equipment;
(4) 44 Nuclear reactors (FSC class 4470 only);
(5) 51 Hand tools;
(6) 54 Prefabricated structure and scaffolding (FSC class 5410 prefabricated and portable buildings, FSC class 5411 rigid wall shelters, and FSC class 5419 collective modular support system only);
(7) 68 Chemicals and chemical products, except medicinal chemicals; and
(8) 95 Clothing, individual equipment, and insignia.
d. The basic processes are as follows:
(1) The APO must determine whether an exchange or sale will provide the greater return to the U.S. Government. When estimating the return under each method, consider all related administrative and overhead costs, including the cost to conduct a sale;
(2) Exchange methods during procurement: The exchange, sometimes called a "trade-in" is formally stated by the vendor during the procurement. For example, the vendor may offer a $10 exchange for an old motor vehicle battery if post purchases a new battery for $100. So the actual final price for the transaction could be $90. An exchange can only be with the same vendor from whom the U.S. Government is purchasing the new property and can occur as follows:
(a) The supplier delivers the replacement new property to one organizational unit and removes the old property being replaced from that same organization unit; and
(b) The supplier delivers the new replacement property to one organization unit and removes the old property being replaced from a different organization unit of the same Federal agency;
(3) Prior to performing an exchange with a vendor, the APO should first solicit:
(a) Federal agencies known to use or distribute such property using the GSAXcess website. If a Federal agency wants to acquire and pay for the property, a reimbursable transfer is approved by the GSA utilization specialist for an amount not greater than the estimated fair-market value of the transferred property. The transfer proceeds are applied in whole or part payment for new similar property to continue operations. When information on the available old replacement property under exchange/sale authority at domestic location is entered by the APO or designee in the GSAXcess website, the property receives 2 calendar days screening; and
(b) SASP known to have an interest in acquiring such property: If a SASP is interested in acquiring the property, GSA utilization staff will prepare a negotiated sale at fixed price to the SASP in accordance with 41 CFR 102-38.125. The sales proceeds must be applied as a whole or part of a contribution to the payment for similar new property acquired to replace the old property; and
(4) The GSA sales contracting officer will conduct sale of exchange/sale property generally using Internet auction via GSA Auctions and the property physically remains at the Department of State domestic location.
e. The custodial officer and accountable property officer must ensure the exchange transactions to the vendor providing the new similar property is recorded in ILMS-Asset Management using the "exchange of exchange/sale property" transaction and the sale is entered using the "sale of exchange/sale property" transaction. The supporting documents should be uploaded to ILMS-Asset Management to both the disposition transaction and the acquisition transaction.
14 FAH-1 H-726.2 Annual Fiscal Year Exchange/Sale Report
a. 41 CFR 102-38.330 requires each U.S. agency to submit an annual fiscal year exchange/sale report as stated in 14 FAM 418.2. The bureau or office APO must ensure that the Department of State data is submitted and recorded in ILMS-Asset Management properly by close of each fiscal year. The data must reflect both exchange allowances and sales proceeds for each exchange/sale transaction completed throughout the fiscal year.
b. It is recommended that the bureau or office APO or custodial officer should review the ILMS-generated exchange/sale report for their bureau or office periodically (i.e., quarterly) throughout the fiscal year to confirm the data is correct and so any changes to the ILMS data can be completed prior to the end of the fiscal year (September 30).
14 FAH-1 H-727 Other Types of Personal Property Disposition Processes
14 FAH-1 H-727.1 Foreign Gifts and Decorations
a. The bureau or office APO or custodial officer does not process gifts from a foreign government above the minimum value of $415 effective January 1, 2020 through December 31, 2023 (reference U.S. General Services Administration Bulletin FMR B-50 and 5 U.S.C. 7342(a)(5)(A)) for disposition by GSA surplus sales center 14 FAH-1 H-723, or under 14 FAH-1 H-724 excess personal property), or under 14 FAH-1 H-726, replacement of personal property under exchange/sale authority.
b. A Department of State employee who has accepted a tangible gift of more than minimal value from a foreign government must report and forward the gift to the Office of Protocol within 60 days of acceptance (reference 22 CFR 3.6). The Office of Protocol works with the GSA to complete U.S. Government agency utilization screening (41 CFR-42.95), sale to the employee at the commercially appraised value of the gift (41 CFR-42.140); donated by GSA to a SASP (41 CFR-41.125; or GSA may offer the gift for public sale with the approval of the Secretary of State (41 CFR 102-42.145).
14 FAH-1 H-727.2 Unclaimed Personal Property
a. Unclaimed personal property means personal property unknowingly abandoned and found on premises owned or leased by the U.S. Government (i.e., lost and found property - reference 41 CFR 102-41.20 and 40 U.S.C. 552).
b. The Department of State must hold unclaimed personal property for 30 calendar days from the date it was found. Unless the previous owner files a claim, title to the property vests in the U.S. Government after 30 days (reference 41 CFR 102-41.120).
c. If the Department of State has a need for the property for official use and no claim has been made by the former owner, the Department may retain it for use on the 31st calendar day:
(1) Maintain records of unclaimed personal property retained for Department official use for 3 years after title vests in the U.S. Government to permit identification of the property should the former owner file a claim for the property; and
(2) The Department must deposit funds received from disposal of such property in a special account to cover any valid claim filed within the 3-year period.
d. If not needed for Department use or if Department use ends, the property may be reported to GSAXcess for processing as excess personal property:
(1) The property must be identified as "unclaimed personal property" and include an estimated fair-market value;
(2) The unclaimed personal property is eligible for transfer to other U.S. Government agencies with reimbursement of the estimated fair-market value. Any reimbursement from transfers of unclaimed personal property is held in a special account for a period of 3 years pending a claim from the former owner. After 3 years, the Department must deposit the funds into miscellaneous receipts of the U.S. Treasury; and
(3) The unclaimed personal property is not available for donation (reference 41 CFR 102-41.170) because reimbursement of fair-market value is required.
e. Unclaimed personal property not transferred for use by the U.S. Government agency may be competitively sold by GSA sales contracting officer with the sales proceeds held for 3 years pending a possible claim by the former owner. After 3 years, the sales proceeds are deposited in the U.S. Treasury as miscellaneous receipts (reference 41 CFR 102-41.180).
f. If the unclaimed property was sold, reimbursement to the former owner must not exceed any proceeds from the disposal of the property, less the costs of the U.S. Government care and handling of the property.
g. If not needed by the Department, unclaimed personal property may be abandoned or destroyed in accordance with 41 CFR 102-36.305 through 41 CFR 102-36.330. Contact A/LM/PMP/PM for a determination if title should pass immediately to the U.S. Government or if public notice is required, especially when the estimated resale value of the property is less than $500 (reference 41 CFR 102-41.125).
h. If the unclaimed property was abandoned or destroyed or otherwise used or transferred, reimbursement to the former owner must not exceed the estimated resale value of the property at the time of the vesting of the property with the U.S. Government, as determined by GSA (reference 41 CFR 102-41.135).
14 FAH-1 H-727.3 Voluntarily Abandoned Personal Property
a. Voluntarily abandoned property means personal property abandoned to any U.S. Government agency in a way that immediately vests title to the property in the U.S. Government. The evidence should be clear that the property was not simply lost by the owner (reference 41 CFR 102-41.20).
b. Personal property is voluntarily abandoned when the owner of the property intentionally and voluntarily gives up title to such property and title vests in the U.S. Government. The receiving agency ordinarily documents receipt of the property to evidence its voluntary relinquishment. Evidence of the voluntary abandonment may be circumstantial (reference 41 CFR 102-41.80):
(1) For example, U.S. Postal Service regulations restrict what may be mailed along with other import and export laws. The Department operational procedures may indicate that when items prohibited for pouch dispatch (nonmailable property listed on 14 FAM Exhibit 723.2) are discovered by security screeners, the customer (or representative) is given the option of coming to the screening facility to pick up the property. If the prohibited item is not picked up in 30 days, it is processed as voluntarily abandoned personal property and title is in the U.S. Government; and
(2) Other Department operations may have similar operational procedures which are made known to their customers.
c. Many types of voluntary abandoned property may need to be destroyed including alcoholic beverages, agricultural products, endangered species products, etc., or because the potential transfer to U.S. Government agencies or the U.S. State Agencies for Surplus Property for use or competitive public sale is not cost-effective. Contact A/LM/PMP/PM for a determination if specific voluntarily abandoned property should be abandoned or destroyed prior to the normal disposition processes.
d. Voluntarily abandoned personal property retained for Department official use loses its identity as voluntarily abandoned property. When no longer needed for Department use, it would then be processed as "excess" personal property.
e. If the Department of State does not need the voluntarily abandoned personal property, information about the property is reported to GSAXcess including an annotation that the property was "voluntarily abandoned":
(1) GSAXcess makes information about the voluntarily abandoned personal property available for transfer to U.S. Government agencies and the U.S. State Agencies for Surplus Property (SASP) and then for competitive public sale by GSA sales contracting officers;
(2) All transfers of voluntarily abandoned personal property to U.S. Government agencies or SASP will be without reimbursement (reference 41 CFR 102-41.115); and
(3) The net sales proceeds from voluntarily abandoned personal property may not be retained by the Department and must be deposited in the U.S. Treasury as miscellaneous receipts (reference 41 CFR 102-41.115).
14 FAH-1 H-727.4 Annual Non-Federal Recipient Report
a. Each executive U.S. Government agency must report annually to GSA a report of personal property obtained as excess or personal property determined to be no longer required and furnished within the United States to a recipient other than a Federal agency (reference 40 U.S.C. 529, 41 CFR 102-36.300 and GSA Bulletin FMR B-27).
b. "Furnished in any manner whatsoever" includes, but is not limited to, transfer, donation, loan, lease, license agreement, and sales transactions.
c. Non-Federal recipient includes all contractor (fixed price, cost reimbursable, etc.); all grantees (project, formula, etc.); and any other individual or organization that is not a U.S. Government agency. State and local government entities are regarded as non-Federal recipients. The reporting tool captures disposal information regarding property provided or conveyed to schools, State and local governments, contractors, grantees, donees, vendors (under either the exchange/sale provisions or under vendor take back provisions), sales recipients, certified recyclers and refurbishers, landfills, incinerators, and trash disposal companies.
d. The report must contain:
(1) Names of the non-Federal recipients, and their zip codes;
(2) Statuses of the recipients (contract, cooperative, project grantee, etc.); and
(3) Total original acquisition cost of excess personal property furnished to each type of recipient, by type of property (two-digit Federal Supply Classification groups).
e. The Director, Property Management Division (A/LM/PMP/PM) is the administrator of the GSA Personal Property Reporting Tool for the Department of State annual non-Federal recipient report each fiscal year.
f. A/LM/PMP/PM prepares the consolidated Department of State non-Federal recipient report each fiscal year for submission to GSA by December 29 each year using the GSA Personal Property Reporting Tool.
g. A negative report is required. Department of State personal property transferred, donated, or sold by GSA as part of the normal disposal processes do not need to be reported, since GSA will populate that information into the GSA Personal Property Reporting Tool.
h. It is imperative that the data reported to GSA be complete and accurate since it will be released by GSA to the data.gov website for transparency and public information.
14 FAH-1 H-728 and H-729 UNASSIGNED
14 FAH-1 Exhibit H-721
General Overview of the Disposition Processes
a. Bureaus and offices first and foremost should consider using the exchange/sale authority of 40 U.S.C. 503 and implementing U.S. Government-wide regulations 41 CFR 102.39. The exchange/sale authority permits the Department, when acquiring replacement property to transfer it with reimbursement to other U.S. Government agencies, exchange to vendor, or sell and apply the exchange allowance or net sales proceeds from sale in payment for the similar property being acquired. Bureaus and offices should only consider using the authority in 41 CFR 102-38.295 to retain proceeds of sale of surplus personal property for Department of State costs incurred during sales processing (14 FAH-1 H-723.6), when replacement property will not be acquired.
b. Identification of property:
(1) Does the old property need to be replaced to continue operations?
(a) Yes - The accountable property officer may process as replacement property under exchange/sale authority. See 14 FAH-1 H-726; or
(b) No - The accountable property officer may process as excess/surplus personal property:
(i) See 14 FAH-1 H-723.1, if the property is located in the Washington, DC metropolitan area, it may be processed using GSAXcess and for delivery to the GSA Surplus Sales Center, Springfield, Virginia;
(ii) If located domestically outside of the Washington, DC metropolitan area, it must be reported using the GSAXcess website (see 14 FAH-1 H-724.1); and
(iii) However, when lack of storage space or security concerns limiting inspection of the property by the general public are involved, along with a history of low sales proceeds, it may be more cost-effective to process as excess/surplus personal property, especially if the property is normally desired by the SASP (reference 41 CFR 102-39.45 and 41 CFR 102-37.110); and
(2) Is the U.S. Government property on a contract?
(a) Yes - The Plant clearance officer and contractor process as contractor-held property. Refer to the actual contract. Also, see 48 CFR 45, 48 CFR 52.245-1, and 14 FAH-1 H-725; or
(b) No - See 1, above;
c. Disposition processes for replacement property using exchange/sale authority:
(1) At time of the procurement of the new item, have vendor offer an exchange value for the old property;
(2) Offer the property to other U.S. Government agencies via the GSAXcess website (2 calendar days) or email with reimbursement required of fair-market value;
(3) Offer the property to U.S. State Agencies for Surplus Property via GSAXcess website (concurrent same 2 calendar days) or email - if requested use negotiated sale at fixed price;
(4) PDO determines if the offer of an exchange from vendor will return more than a U.S. Government conducted sale, including cost to conduct a sale:
(a) If exchange offer is more than expected net sales proceeds, you may conduct exchange with vendor; and
(b) If exchange offer is less than expected net sales proceeds, you should conduct sale and not exercise option to exchange with the vendor;
(5) The Department keeps exchange allowances from vendor or sales proceeds from sale under exchange/sale authority to offset cost of purchase of new similar property; and
(6) Record transaction data details accurately in ILMS for successful completion of the Department Annual Fiscal Year Exchange/Sale report.