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"any incorporated or unincorporated volunteer fire department, fire company, or other similar fire-fighting organization, volunteer reserve service, squad, or first-aid crew," such organizations are numerous in many States, and operate independently of others in adjoining communities.

The reviewing of records and stocks and the screening of available surplus against the competitive requests of the many fire-fighting and first-aid organizations in order that determinations of usability and need could be made would undoubtedly be laborious, and might often seriously interfere with regular operations for utilization of excess and delay the disposal of surplus property by sale.

The settlement of competing claims between individual fire-fighting and first-aid organizations, and of requests for donations from such groups and of vying demands on account of education, public health, and civil defense, would constitute a recurring problem likely to engender ill will and create

still further delays in warehouse clearance. To broaden the surplus property donation authority of the Federal Property and Administrative Services Act of 1949 to cover this new group would operate as an invitation to present still more proposals for inclusion of additional organizations. Adoption of such proposals would inevitably result not only in increased administrative costs and complication of disposal operations, but also in jeopardizing the orderly procedures for surplus property disposal now being carried out under the direction of GSA pursuant to the provisions of that act.

The nature of this legislative proposal is such as to make impossible any firm estimate by us of the probable cost attributable thereto.

The Bureau of the Budget has advised that there is no objection to the submission of this report to your committee. Sincerely yours,

FRANKLIN G. FLOETE, Administrator.

GENERAL SERVICES ADMINISTRATION,

October 4, 1957. Hon. WILLIAM L. DAWSON, Chairman, Committee on Government Operations,

House of Representatives, Washington, D. C. DEAR MR. CHAIRMAN : Your letter of April 2, 1957, requested a report by the General Services Administration on H. R. 6537, to authorize the disposition of certain obsolete and excess property to the United States Volunteer Life Saving Corps.

The bill proposes to create an exception from the general pattern of property utilization and disposal prescribed by the Federal Property and Administrative Services Act of 1949. GSA, as the agency charged with administration of that act, recommends that H. R. 6537 be not enacted. As will be shown hereinafter, the bill runs counter to the purpose expressed in the act “to provide for the Government an economical and efficient system for * * * the utilization of available property" and "the disposal of surplus property” (sec. 2, 40 U. S. C. 471).

Neither the Department of the Army nor the Department of the Navy nor the Department of the Air Force nor the Coast Guard, which would make the dispositions contemplated by H. R. 6537, is an "executive agency' or a "Federal agency” as those terms are respectively defined in sections 3 (a) and 3 (b) of the Federal Property and Administrative Services Act of 1949 (40 U. S. C. 472 (a), (b)). Rather, those three Departments are military departments within the Department of Defense, itself an executive agency, and the Coast Guard presently operates as a service in the Treasury Department which is an executive agency. The authority which the bill would confer on the Secretaries of the three military departments and on the Commandant of the Coast Guard to dispose of material which is obsolete, or excess to the respective needs of those governmental entities, would prevent further utilization of the property within the executive agencies of which those entities are part, and so would be repugnant to the requirement set forth in section 202 (c) of the act (40 U. S. C. 483 (c)) that each executive agency is to 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. More than that, the bill would be at variance with the further provision in section 202 (c) that (after no need for the property is found in an activity within the executive agency) the agency is to transfer the property to such other Federal agency as may have need for it, as excess—that is, property not required for the needs and the discharge of the responsibilities of the Federal agency having control of the property (sec. 3 (e) of the act, 40 U. S. C. 472 (e)). This procedure for promoting maximum utilization of excess property by agencies, charted pursuant to section 202 of the act, has as its wholesome objectives the minimization of expenditures by the Government for new property.

When no need for excess property is found in any Federal agency, the property then becomes surplus—i. e., not required for the needs and discharge of the responsibilities of all Federal agencies, as determined by the Administrator of General Services (sec. 3 (g); 40 U. S. C. 472 (g)). The effect of the enactment of H. R. 6537 would be to prevent any of the property proposed for disposition by the bill from ever becoming surplus. Personal property, after it has become surplus, is available (prior to sale or other disposal for a consideration) for donation for purposes of education, public health, or civil defense (sec. 203 (j); 40 U. S. C. 484 (j)). Obviously, the disposal to the United States Volunteer Life Savings Corps of property not yet determined to be surplus, making it totally unavailable for the presently authorized objectives, would further hinder attainment of the benefits of the property management procedures authorized by the Congress in the Federal Property and Administrative Services Act of 1949.

The nature of this legislative proposal is such as to make impossible any firm estimate by us of the probable cost attributable thereto.

The Bureau of the Budget has advised that there is no objection to the submission of this report to your committee. Sincerely yours,

FRANKLIN G. FLOETE, Administrator..

GENERAL SERVICES ADMINISTRATION,

Washington, D. C., June 4, 1957. Hon. WILLIAM L. DAWSON, Chairman, Committee on Government Operations,

House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN : Your letter of May 1, 1957, requested the views of the General Services Administration on H. R. 7067, 85th Congress, a bill to amend the Federal Property and Administrative Services Act of 1949 to permit the donation and other disposal of property to tax-supported public recreation agencies.

The purpose of the bill is to amend the Federal Property and Administrative Services Act of 1949, as amended, to include public recreation as an additional purpose for which the Administrator of General Services is authorized to donate surplus property and to include tax-supported public recreational agencies among the institutions authorized to receive surplus property. The bill places responsibility for determining whether surplus property is usable and necessary for public recreation purposes on the Secretary of Health, Education, and Welfare. The bill also authorizes the Administrator of General Services and the Secretary of HEW to dispose of surplus real property to tax-supported public recreation agencies for public recreation the same as presently provided in the act for properties to be used for health and education purposes. The provision authorizing the Secretary of HEW to take into consideration any public benefit which has accrued or may accrue to the United States from the use of such real property by the grantees is also applicable to transfers or conveyances for public recreation purposes. This bill is one of a number of bills which have been introduced for the purpose of extending the existing authorization for the donation or conveyance of surplus real and personal property to cover various special activities and organizations.

The enactment of this legislative proposal would necessarily increase the operating costs and impede the personal property disposal operations of GSA. Handling the numerous inquiries that may be expected, and reviewing records of stocks and the screening of available surplus against the competitive requests of various recreation agencies to determine the usability and need for such property will be laborious. In addition such reviews will seriously interfere with regular operations for utilization of excess, and delay the disposal of surplus

personal property by sale. We are also concerned with the possible ill will and delays in warehouse clearance that will arise out of the settlement of competing claims between various recreational agencies and between recreational agencies and agencies demanding property for educational, public-health, and civil-defense purposes.

Some of the objections stated above will be applicable in part to the difficulties that may be expected in our disposal of surplus real property. In addition the bill will amend materially the specific provisions of the Federal Property and Administrative Services Act pertaining to conveyances of real property for recreational purposes. Section 602 (a) of the Federal Property and Administrative Services Act of 1949, as amended, continues in effect section 13 (h) of the Surplus Property Act of 1944, as amended. Section 13 (h) (2) thereof provides as follows:

"Conveyances for park or recreational purposes made pursuant to the authority contained in this subsection shall be made at a price equal to 50 per centum of the fair value of the property conveyed, based on the highest and best use of the property at the time it is offered for disposal, regardless of the former character or use, as determined by the Administrator. Conveyances of property for historic monument purposes under this subsection shall be made without monetary consideration: Provided, That no property shall be determined under this paragraph to be suitable or desirable for use as an historic monument except in conformity with the recommendation of the Advisory Board on National Parks, Historic Sites, Buildings, and Monuments established by section 3 of the Act entitled 'An Act for the preservation of historic American sites, buildings, objects, and antiquities of national significance, and for other purposes,' approved August 21, 1935 (49 Stat. 666), and no property shall be so determined to be suitable or desirable for such use if (A) its area exceeds that necessary for the preservation and proper observation of the historic monument situated thereon, or (B) it was acquired by the United States at any time subsequent to January 1, 1900."

Subject bill if enacted will, in effect, eliminate the requirement for the payment of 50 percent of the fair value of the real property conveyed for recreational areas as required by section 13 (h) (2) and substitute the public benefit allowance provision now provided in section 203 (k) of the Federal Property and Administrative Services Act of 1949, as amended.

In this connection the Federal Property and Administrative Services Act of 1949, as amended, contains broad authority for the disposition of surplus real property to States and local governments and institutions for specific public uses either without consideration or under significantly favorable pricing formulas. While disposals for these purposes serve useful purposes they (1) frequently entail delays in the disposal of surplus real property by sale to the general public, (2) prevent the return of surplus real property to the local tax rolls, and (3) substantially reduce the monetary return to the Federal Government. Enactment of this measure would enlarge the scope of such disposals. With the increasing demands on available financial resources of the Federal Government to support and maintain the desired level of Federal governmental activities, any action which would result in the depletion of sources of revenue at this time is of doubtful wisdom.

For these reasons, GSA is opposed to the enactment of H. R. 7067.

The fiscal effects of the enactment of this measure on the returns that might be realized from the disposal of surplus property, as presently authorized, cannot be evaluated.

The Bureau of the Budget has advised that there is no objection to the submission of this report to your committee. Sincerely yours,

FRANKLIN G. FLOETE, Administrator.

GENERAL SERVICES ADMINISTRATION,

Washington, D. C., January 10, 1958. Hon. WILLIAM L. DAWSON, Chairman, Committee on Government Operations,

House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN : Your letter of September 10, 1957, requested a report by General Services Administration on H. R. 9522, to amend the Federal Property and Administrative Services Act of 1949 to authorize the disposal of surplus property to certain welfare agencies.

This bill is one of a number of bills which have been introduced for the purpose of extending the existing authorization for donation of surplus personal property (which is limited to the purposes of education, public health, and civil defense) to cover various other special activities and organizations.

In the case of H. R. 9522 the proposed extension is especially comprehensive. The welfare and recreation agencies which would be made eligble for donations of surplus personal property are defined in very inclusive terms by section 4 of the bill, the purpose of the measure evidently being to cover agencies such as the Salvation Army, YMCA, YWCA, Travelers Aid, and a number of other organizations (103 Congressional Record A7205, Aug. 29, 1957).

Notwithstanding how worthy may be the objectives of these welfare and recreation agencies, GSA objects to H. R. 9522 for the reasons hereinafter set forth.

The enactment of this legislative proposal would impede the handling of surplus property by the Government and introduce new elements of costs for the Government to pay. Specifically, it would :

(a) Delay the disposal of unneeded Government property while competing claims of individual welfare and recreation agencies are being considered with additional costs accruing to the Government for maintenance and storage of the property and attendant administrative tasks.

(b) Complicate the disposal of surplus property by introducing competition for available property between individual welfare and recreation agencies and other claimants on behalf of education, public health, and civil defense activities. This will present a recurring problem, likely to engender

ill will and create still further delays in warehouse clearance. To broaden the surplus property donation authority of the Federal Property and Administrative Services Act of 1949 to cover this comprehensive new group would operate as an invitation to present still more proposals for inclusion of further organizations. Enactment of H. R. 9522, or adoption of such additional proposals, would inevitably result not only in increased administrative costs and complication of disposal operations, but also in jeopardizing the orderly procedures for surplus disposal now being carried out under the direction of GSA pursuant to the provisions of that act.

The nature of this legislative proposal is such as to make impossible any firm estimate by us of the probable cost attributable thereto.

The Bureau of the Budget has advised that there is no objection to the submission of this report to your committee. Sincerely yours,

FRANKLIN G. FLOETE, Administrator.

GENERAL SERVICES ADMINISTRATION,

Washington, D.C., March 14, 1958. Hon. WILLIAM L. DAWSON, Chairman, Committee on Government Operations,

House of Representatives, Washington, D. C. DEAR MR. CHAIRMAN: Your letter of February 5, 1958, requested a report by General Services Administration on H. R. 10377, to amend the Federal Property and Administrative Services Act of 1949 to permit the donation of surplus property to volunteer fire-fighting organizations.

This bill is one of a number of bills which have been introduced for the purpose of extending the existing authorization for donation of surplus personal property (which is limited to the purposes of eduction, public health, and civil defense) to cover various other special activities and organizations.

Initially, we wish to point out that, in the drafting of H. R. 10377, there has been a failure to reflect the amendments made in section 203 of the Federal Property and Administrative Services Act of 1949 by Public Law 200 of the 84th Congress, approved August 1, 1955 (69 Stat. 430), and Public Law 655 of the 84th Congress, approved July 3, 1956 (70 Stat. 493).

Notwithstanding how worthy may be the objectives of these volunteer firefighting organizations, GSA objects to H. R. 10377 for the reasons hereinafter set forth.

The enactment of this legislative proposal would impede the handling of surplus property by the Government and introduce new elements of costs for the Government to pay. Specifically, it would

(a) Delay the disposal of unneeded Government property while competing claims of individual volunteer fire-fighting organizations are being considered, with additional costs accrging to the Government for mainteance and storage of the property and attendant administrative tasks.

(6) Complicate the disposal of surplus property by introducing competition for available property between individual volunteer fire-fighting organizations and other claimants on behalf of education, public-health, and civil-defense activities. This will present a recurring problem, likely to engender ill will and create still further delays in warehouse clearance. To broaden the surplus-property donation authority of the Federal Property and Administrative Services Act of 1949 to cover this comprehensive new group would operate as an invitation to present still more proposals for inclusion of further organizations. Enactment of H. R. 10377, or adoption of such additional proposals, would inevitably result not only in increased administrative costs and complication of disposal operations, but also in jeopardizing the orderly procedures for surplus disposal now being carried out under the direction of GSA pursuant to the provisions of that act.

The nature of this legislative proposal is such as to make impossible any firm estimate by us of the probable cost attributable thereto.

The Bureau of the Budget has advised that there is no objective to the submission of this report to your committee. Sincerely yours,

FRANKLIN FLOETE, Administrator.

GENERAL SERVICES ADMINISTRATION,

Washington, D. C. Hon. WILLIAM L. DAWSON, Chairman, Committee on Government Operations,

House of Representatives, Washington, D. C. DEAR MR. CHAIRMAN: Your letter of February 21, 1958, requested the views of the General Services Administration on H. R. 10789, 85th Congress, a bill to amend the Federal Property and Administrative Services Act of 1949 to permit the donation and other disposal of property to tax-supported public recreation agencies.

The purpose of the bill is to amend the Federal Property and Administrative Services Act of 1949, as amended, to include public recreation as an additional purpose for which the Administrator of General Services is authorized to donate surplus property, and to include tax-supported public recreational agencies among the institutions authorized to receive surplus property. The bill places responsibility for determining whether surplus property is usable and necessary for public recreation purposes on the Secretary of Health, Education, and Welfare. The bill also authorizes the Administrator of General Services and the Secretary of Health, Education, and Welfare to dispose of surplus real property to taxsupported public recreation agencies for public recreation the same as presently provided in the act for properties to be used for health and education purposes. The provision authorizing the Secretary of Health, Education, and Welfare to take into consideration any public benefit which has accrued or may accrue to the United States from the use of such real property by the grantees is also applicable to transfers or conveyances for public recreation purposes. This bill is one of a number of bills which have been introduced for the purpose of extending the existing authorization for the donation or conveyance of surplus real and personal property to cover various special activities and organizations.

The enactment of this legislative proposal would necessarily increase the operating costs and impede the personal property disposal operations of General Services Administration. Handling the numerous inquiries that may be expected, and reviewing the records of stocks and the screening of available surplus against the competitive requests of various recreation agencies to determine the usability and need for such property, will be laborious. In addition, such reviews will seriously interfere with regular operations for utilization of excess, and delay the disposal of surplus personal property by sale. We are also concerned with the possible ill will and delays in warehouse clearance that will arise out of the settlement of competing claims between various recreational agencies and between recreational agencies and agencies demanding property for educational, public-health, and civil-defense purposes.

Some of the objections stated above will be applicable, in part, to the difficulties that may be expected in our disposal of surplus real property. In addition, the bill will amend materially the specific provisions of the Federal Property

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