SURVEYS, STANDARDIZATION AND CATALOGING

SEC. 206. (a) As he may deem necessary for the effectuation of his functions under this title, and after adequate advance notice to the executive agencies affected, and with due regard to the requirements of the National Military Establishment as determined by the Secretary of Defense, the Administrator is authorized (1) to make surveys of Government property and property management practices and obtain reports thereon from executive agencies; (2) to cooperate with executive agencies in the establishment of reasonable inventory levels for property stocked by them and from time to time report any excessive stocking to the Congress and to the Director of the Bureau of the Budget; (3) to establish and maintain such uniform Federal supply catalog system as may be appropriate to identify and classify personal property under the control of Federal agencies: Provided, That the Administrator and the Secretary of Defense shall coordinate the cataloging activities of the General Services Administration and the National Military Establishment so as to avoid unnecessary duplication; and (4) to prescribe standardized forms and procedures, except such as the Comptroller General is authorized by law to prescribe, and standard purchase specifications.

(b) Each Federal agency shall utilize such uniform Federal supply catalog system and standardized forms and procedures and standard purchase specifications, except as the Administrator, taking into consideration efficiency, economy, and other interests of the Government, shall otherwise provide.

(c) The General Accounting Office shall audit all types of property accounts and transactions at such times and in such manner as determined by the Comptroller General. Such audit shall be conducted as far as practicable at the place or places where the property or records of the executive agencies are kept and shall include but not necessarily be limited to an evaluation of the effectiveness of internal controls and audits, and a general audit of the discharge of accountability for Government-owned or controlled property based upon generally accepted principles of auditing.

ANALYSIS

Section 206. Surveys, standardization, and cataloging (Sec. 206, 63 Stat. 390, as amended by sec. 1 (k), 66 Stat. 593; 40 U. S. C. 487)

(a) Surveys, supply catalog, and contract forms.--This subsection authorizes the Administrator, after adequate advance notice to the executive agencies affected, and with due regard to the requirements of the Department of Defense as determined by the Secretary thereof, to survey Government property and property management practices, to cooperate with executive agencies in the establishment of reasonable inventory levels and report excessive stocking to the Congress and the Budget Bureau, to establish and maintain a uniform Federal supply catalog system, and to prescribe standardized purchase and contract forms, procedures, and specifications.

Making surveys, requiring reports concerning Government property, and establishing inventory levels, with due regard for the requirements of agencies concerned, will obviously promote better supply and property management practices, and indeed performance of these functions is indispensable if the powers under sections 201 and 202 are to be effectively exercised. (See paragraphs 2 and 3 of the letter of the President, dated July 1, 1949, to all executive agencies, set forth in Appendix A.) The Administrator's reports on excessive stocking will enable the Appropriations Committees and Budget Bureau examiners to make suitable reductions in appropriations and estimates. The authority of the Administrator to make surveys of Government property and property management practices is not limited to personal property but includes both real and personal with the exceptions specified in the definition of the word "property" contained in section 3 of the Act.

The authority to standardize Government purchase and contract forms, procedures, and specifications has been in effect and in use for many years and is demanded by industry to make its relations with Government easier. It is confusing and costly, for example, to have a contract with terms, forms, and conditions for a supply item with one agency differing in meaning and effect from one for the same kind of item with another agency. Existing control over the standardization of the Government construction contract forms and leases is continued in effect by provision in section 602 (b).

A uniform Federal supply catalog system, which identifies and classifies personal property under the control of Federal agencies, is essential for a wellmanaged Federal supply system so that there may be a common supply language among all parties to a transaction. The catalog will ultimately mean large savings to the Government through reducing inventories of parts and supplies. Without such a catalog, identical items are carried in stock under different designations, swelling inventories to needless size. This cannot be avoided until each item is described, classified, and given a number for identification, so that duplications can be noted. The disposal of surplus Government personal property will thus likewise be speeded.

This subsection provided for coordination of the cataloging activities of the General Services Administration and the Department of Defense so as to avoid unnecessary duplication, and made it clear that that Department and the Administrator of General Services were to continue to cooperate toward the development of a Federal catalog system.

There should also be noted Public Law 436, 82d Congress, approved July 1. 1952, 66 Stat. 318, the Defense Cataloging and Standardization Act, entitled "An Act To provide for an economical, efficient, and effective supply management organization within the Department of Defense through the establishment of a single supply cataloging system, the standardization of supplies and the more efficient use of supply testing, inspection, packaging, and acceptance facilities and services". By this law there was established within the Department of Defense the Defense Supply Management Agency, charged with the duty of developing a single catalog system and related supply standardization program for the Department of Defense. (By Reorganization Plan No. 6 of 1953, effective June 30, 1953 (67 Stat. 638), the Defense Supply Management Agency was abolished, and all of its functions were transferred to the Secretary of Defense.) Section 11 of Public Law 436 reads as follows:

"The Administrator of General Services and the Secretary of Defense shall coordinate the cataloging and standardization activities of the General Services Administration and the Department of Defense so as to avoid unnecessary duplication."

(b) Catalog, forms, and specifications mandatory.-Due to the savings resulting from common use of the uniform supply catalog system, and of standardized forms and procedures, and of standard purchase specifications, this subsection requires Federal agencies to use them, when prescribed by the Administrator, except as he shall otherwise provide. The words "and standardized forms and procedures" appearing after "system" in this subsection were inserted by subsection (k) of section 1 of Public Law 522, 82d Congress, approved July 12, 1952 (66 Stat. 593). This insertion of these words was a perfecting amendment to clarify the authority under sections 205 and 206 (a) to prescribe standardized forms and procedures (except such as the Comptroller General is authorized to prescribe) for executive agencies.

(c) Audit of property accounts.-This subsection requires the General Accounting Office to audit all types of property accounts and transactions, such audit to he conducted when practicable at the site of the property or where records of the

APPLICABILITY OF ANTITRUST LAWS

SEC. 207. Whenever any executive agency shall begin negotiations for the disposition to private interests of a plant or plants, or other property, which cost the Government $1,000,000 or more, or of patents, processes, techniques, or inventions, irrespective of cost, the executive agency shall promptly notify the Attorney General of the proposed disposal and the probable terms or conditions thereof. Within a reasonable time, in no event to exceed sixty days after receiving such notification, the Attorney General shall advise the Administrator and the interested executive agency whether, insofar as he can determine, the proposed disposition would tend to create or maintain a situation. inconsistent with the antitrust laws. Upon the request of the Attorney General, the Administrator or interested executive agency shall furnish or cause to be furnished such information as it may possess which the Attorney General determines to be appropriate or necessary to enable him to give the advice called for by this section or to determine whether any other disposition or proposed disposition of surplus property violates the antitrust laws. Nothing in this Act shall impair, amend, or modify the antitrust laws or limit and prevent their application to persons who buy or otherwise acquire property under the provisions of this Act. As used in this section the term "antitrust laws" includes the Act of July 2, 1890 (ch. 647, 26 Stat. 209), as amended; the Act of October 15, 1914 (ch. 323, 38 Stat. 730), as amended; the Federal Trade Commission Act (38 Stat. 717), as amended; and sections 73 and 74 of the Act of August 27, 1894 (28 Stat. 570), as amended.

ANALYSIS

Section 207. Applicability of antitrust laws (Sec. 207, 63 Stat. 391; 40 U. S. C. 488)

This section requires any executive agency in beginning negotiations for the disposal of any plant or other property costing $1,000,000 or more, or of patents, processes, etc., irrespective of cost, to seek advice of the Attorney General, and it shall be the duty of the Attorney General to advise the executive agency whether the proposed disposition of the property would tend to create or maintain a situation inconsistent with the antitrust laws. The executive agency

must assist the Attorney General by furnishing him any information it may possess appropriate or necessary to the Attorney General's determination. This section also provides that nothing in the act shall modify or limit the applicability of the antitrust laws to persons who acquire property under the provisions of the act.

In one respect the section is broader than a similar provision in the Surplus Property Act of 1944 (sec. 20, 58 Stat. 775). Section 207 requires a determination by the Attorney General as to whether the proposed disposal would tend to create or maintain a situation inconsistent with the antitrust laws, while under the Surplus Property Act of 1944 the determination was whether the proposed disposition would violate the antitrust laws.

EMPLOYMENT OF PERSONNEL

SEC. 208. (a) The Administrator is authorized, subject to the civilservice and classification laws, to appoint and fix the compensation of such personnel as may be necessary to carry out the provisions of titles I, II, III, V, and VI of this Act.

(b) To such extent as he finds necessary to carry out the provisions of titles I, II, III, V, and VI of this Act, the Administrator is hereby authorized to procure the temporary (not in excess of one year) or intermittent services of experts or consultants or organizations thereof, including stenographic reporting services, by contract or appointment, and in such cases such service shall be without regard to the civilservice and classification laws, and, except in the case of stenographic reporting services by organizations, without regard to section 3709, Revised Statutes, as amended (41 U. S. C. 5).

(c) Notwithstanding the provisions of section 1222 of the Revised Statutes (10 U. S. C. 576) or of any other provision of law, the Administrator in carrying out the functions imposed upon him by this Act is authorized to utilize in his agency the services of officials, officers, and other personnel in other executive agencies, including personnel of the armed services, with the consent of the head of the agency concerned.

ANALYSIS

Section 208. Employment of personnel (Sec. 208, 63 Stat. 391, as amended by sec. 7 (b) (c), 64 Stat. 590; 5 U. S. C. 630h)

(a) Civil-service laws.-Employment of personnel is required by this subsection to be subject to the civil-service and classification laws. In Public Law 152 as originally enacted the final words of this subsection read: "titles I, II, III, and V of this Act". Section 7 (b) of Public Law 754 amended the text to read as above a perfecting amendment necessary to the insertion by Public Law 754 of the new title V in Public Law 152.

(b) Consultants-As an exception to the foregoing, this subsection grants to the Administrator limited authority to procure the temporary service of experts and consultants. In Public Law 152 as originally enacted the reference here was to "titles I, II, III, and V". Section 7 (c) of Public Law 754 amended the text to read as above, for the reason stated in the preceding discussion under section 208 (a).

(c) Officers of other agencies.-The principal purpose of this subsection is to authorize the Administrator, with the consent of the head of the agency concerned, to utilize the services of officials, officers and other personnel in other executive agencies including members of the armed services. This section contemplated that the Administrator might determine that a delegation of authority was not warranted in some cases and that the undertaking with appropriate assistance should proceed under the direction of the Administrator.