16. Disposal of surplus personal property by donation.-a. Scope. This section implements section 203 (j) of the act, providing for the donation of certain surplus property to educational and public-health institutions and service educational activities. It does not pertain to the abandonment, destruction, or donation to public bodies, under section 202 (h) of the act, of property which has no commercial value or of which the estimated cost of continued care and handling would exceed the estimated proceeds (covered by General Services Administration Temporary Regulation No. 5).

b. Needs of Federal agencies paramount.-Any need for personal property expressed by any Federal agency (including the agencies specified in sec. 14 of this regulation) shall be paramount to any educational use determination or allocation by the Federal Security Administrator or the Secretary of Defense, if such need shall be made known to the holding agency prior to shipment or delivery to donees pursuant to this section.

c. Donation to service educational activities.—(1) Screening by Secretary of Defense. (a) In reporting excess personal property of the Department of Defense to the Administration, the Secretary of Defense shall designate, by appropriate notation on each report, any items of donable property which he determines, subject to utilization by Federal agencies in accordance with subsection b of this section, to be usable and necessary for service educational activities. Donable property not so designated shall be deemed to have been determined by the Secretary of Defense not to be usable and necessary for service educational activities, and, subject to utilization by Federal agencies, shall be available for screening by the Federal Security Administrator in accordance with this section. (b) With respect to excess property of the Department of Defense not required to be reported to the Administration, the Secretary of Defense shall determine the items of donable property that are usable and necessary for service educational activities, subject to utilization by Federal agencies, prior to determination as surplus.

(2) Allocations and transfers by Secretary of Defense.-Donable property which has been designated and determined by the Secretary of Defense to be usable and necessary for service educational activities shall, unless otherwise directed by the Administrator, be available for allocation by the Secretary of Defense when determined surplus in accordance with sections 7g and 15 of this regulation, and may thereafter be donated to eligible applicants. Applications to be submitted by service educational activities shall be in such form as may be prescribed by the Secretary of Defense.

d. Donation to educational and public-health institutions.-(1) Responsibility of Federal Security Administrator.-Both nationally and by areas. the Federal Security Administrator shall determine the over-all requirements of educational and public-health institutions for donable property on the basis of needs and utilization. Instructions for use of such institutions in obtaining donable property, including terms and conditions, shall be as prescribed by the Federal Security Administrator.

(2) Cooperation of holding agencies.-Holding agencies shall cooperate with the Federal Security Administrator in locating donable property. Upon reasonable request, holding agencies shall make available to the Federal Security Administrator complete informatión regarding the quantity, description, condition, and location of donable personal property in their inventories. However, nothing in this paragraph shall be deemed to require holding agencies to prepare or mail reports or listings of such property not otherwise required.

(3) Screening by Federal Security Administrator.--In order to locate donable property which is usable and necessary for educational or public-health purposes, including research, the Federal Security Administrator shall be permitted to screen, at appropriate times, holding agencies' excess personal property (and lists and records thereof, when available) not required to be reported to the Administration under this regulation, excent_categories of property set forth in section 7g (2), (3) (6), and (15). The Federal Security Administrator also shall be permitted to screen at appropriate times, in Administration field offices, reports of excess personal property submitted by holding agencies under this regulation.

(4) Determination by Federal Security Administrator.-The Federal Security Administrator may determine that any excess donable property screened pursuant to paragraph (3) above is usable and necessary for educational or public-health purposes, including research, subiect to the provisions of section 16c. Each such determination shall be made within the 10-day period specified in section 7g and 15 of this regulation and shall be submitted in triplicate to

the appropriate field office of the Administration, as listed in appendix B, with one additional copy submitted to the holding agency. If donation of the property covered by the determination is approved by the Administration, one copy showing such approval shall be transmitted to the office of the Federal Security Agency which submitted the determination, and one copy to the holding agency, which shall be the authority of the holding agency to hold such property for donation to educational or public-health institutions for a period not to exceed 40 calendar days from date of the determination by the Federal Security Administrator. If the donation of any property covered by such determination is disapproved by the Administration, in whole or part, notice of such disapproval shall be forwarded to the office of the Federal Security Agency which submitted the determination, and a copy of such determination with appropriate notation shall be forwarded to the holding agency with instructions for disposition of the property covered by such disapproval.

(5) Allocation by Federal Security Administrator.-The Federal Security Administrator may allocate to educational or public-health institutions such donable property, approved by the Administration for donation, as to which-a determination has been made pursuant to paragraph (4) above. Applications from educational or public-health institutions shall adequately describe the donable property applied for, supply shipping instructions, provide that the applicant agrees to pay, and certify that funds are available to pay the costs of care and handling incurred incident to donation, including packing, preparation for shipment, shipping, loading, and transporting such property. Such application shall not require shipment of unreasonably small quantities. The Federal Security Administrator shall endorse such application with a certification in the following form:

Pursuant to the Federal Property and Administrative Services Act of 1949, Public Law 152, Eighty-first Congress, and regulations promulgated thereunder, the Federal Security Administrator certifies that he has determined that the property herein requested is usable and necessary for educational or public-health purposes, including research; that it is hereby allocated to the applicant on the basis of needs and utilization; and that the applicant is eligible to receive such property in accordance with said act.

The original and two copies of the certified application (or less if mutually agreed upon) shall be transmitted to the holding agency by the Federal Security Administrator.

(6) Donation and shipment by holding agencies.-Upon receipt, within the 40-day period prescribed by paragraph d (4) of this section, of a properly certified application for donable property, the holding agency shall donate and promptly ship or deliver the property covered thereby in accordance with the shipping instructions contained in such application. If such certified application is not received within the 40-day period prescribed by paragraph d(4) of this section, it may be disposed of as surplus in accordance with section 17 of this regulation. The holding agency may, however, under appropriate circumstances, recognize certified applications received after the expiration of such period.

e. Delegations of authority.-Pursuant to section 205 (d) of the act, authority is hereby delegated, to the heads of all executive agencies, with full power of redelegation, to donate and to execute transfers and deliveries of donable property in accordance with this section.

17. Disposal of surplus personal property other than by donation.-a. Responsibility for disposal.-Each holding agency shall, except as otherwise provided in this regulation or other order of the Administrator, dispose of surplus personal property in its possession in accordance with this regulation.

b. Care and handling pending disposal.-Pending disposal, each holding agency shall be responsible for performing, and bear the cost of, care and handling of surplus personal property.

c. Disposal methods and procedures.—(1) General.-Except as provided in sections 7 and 16 of this regulation, holding agencies shall dispose of surplus personal property in accordance with this section.

(2) Competitive bid sales.-Holding agencies shall, except as otherwise provided by this section, sell surplus personal property by competitive bid sale after advertising, in accordance with this section. Competitive bid sales shall include the following:

(a) Sealed bid sales.-In sealed bid sales, bidders shall be required to submit to the office designated for receipt and opening of bids, sealed written bids on authorized bid forms for public opening at a time and place designated.

(b) Spot bid sales.-In spot bid sales, held after advertising in accordance with this section, bidders shall be furnished with bid forms in advance of the bidding, a bid form to be used for each lot or unit to be separately sold. Requests for bids on items offered for sale shall be made by the official in charge. In requesting bids, the official in charge shall announce the item, its identification number, and a brief description of the item or lot. The right to reject all such bids shall be reserved in the terms of sale; and lots for which all bids have been rejected may be reoffered at the same sale in order to secure an acceptable bid price. Awards shall be made or bids rejected immediately following the offering of the item or lot. The bids at spot bid sales shall not be disclosed except at the announcement of award for any item or lot. Where mailed written bids at spot bid sales are permitted, they shall be sealed and not disclosed except at the announcement of award. Bidders may be required to register in advance of the sale. Any special conditions of sale shall be issued in printed form to everyone attending the sale. Final payment on such sales must be by cash, certified check, cashier's check, bank draft, express or postal money order, payable to the Treasurer of the United States, except as provided in paragraphs d (4) and d (6) of this section. Deposits shall be in similar form or in such other form of security as may be acceptable to the contracting officer.

(c) Auction sales.—Sales of surplus personal property by holding agencies may be made by public auction. Such sales may be made either by qualified personnel of holding agencies, or public auctioneers when authorized. Terms and conditions of sale shall be announced by the person conducting the auction, immediately prior to commencement of the sale. Final payment on such sales must be by cash, certified check, cashier's check, bank draft, express or postal money order, payable to the Treasurer of the United States, except as provided in paragraphs d (4) and d (6) of this section. Deposits shall be in similar form or in such other form of security as may be acceptable to the contracting officer. Such offerings must reserve in the Government the right to accept or reject any or all bids. Lots for which all offers have been rejected may re reoffered later at the same sale to secure acceptable bids.

(3) Advertising.-(a) General.-Adequate public notice of offering of surplus personal property for sale shall be given. Except where the nature or condition of the property does not permit, advertising shall be made in sufficient time previous to sale to permit full and free competition. The extent of solicitation shall have due regard to the quantity and type of property to be sold, the logical market for disposal, the type of sale contemplated, and the public interest. Each public notice of offering of surplus personal property for sale shall include the following statement: "This property has been screened against the known defense requirements of the Federal Government." Three copies of all invitations or other offering literature shall be transmitted, at the time of offering, to the appropriate Administration field office for the region in which the property is located.

(b) Sealed bid sales.-In the case of sealed bid sales, advertising shall be by distribution of written invitations for bids (including public posting thereof and may be supplemented by newspaper or trade journal advertising (ordered in accordance with existing law) where advisable.

(c) Spot bid sales.-Advertising in the case of spot bid sales shall be by written invitation for bids or other appropriate written notice (including public posting thereof). Notice of such sales may also be given appropriate newspaper or trade journal advertising (ordered in accordance with existing law) where advisable.

(d) Auction sales.-In the case of auction sales, newspaper or trade journal advertising ordinarily should be employed (ordered in accordance with existing law) in addition to other written notice deemed appropriate.

(4) Lotting. To the extent practicable, and consonant with the type of property and usual commercial practice, property offered for sale shall be assembled into reasonably sized lots of like or similar categories of items.

(5) Inspection by bidders.-Sufficient time prior to the date for submission of bids shall be allowed to permit inspection by potential purchasers. (6) Negotiations.—Holding agencies may sell surplus property by negotiated sale where

(a) The reasonable recovery value involved in any case does not exceed $500;

(b) The property is such a hazard to health or property as to require immediate disposition;

(c) The property will spoil or deteriorate so rapidly as to require immediate disposition;

(d) After adequate advertising as required by paragraph c (3) of this section, no acceptable bids have been received; provided, that all responsible bidders who responded to the previous advertising shall be offered an opportunity to participate in the negotiations;

(e) Authorized under paragraph c (10) of this section;

(f) Otherwise authorized by law; or

(g) Authorized by the Administrator.

Written justification for negotiated sales in excess of $500 shall be prepared and filed with the record of disposal in each case. Agencies making sales by negotiation shall secure competition to the maximum extent feasible under the circumstances.

(7) Reviewing authority.-Approval by a reviewing authority of each holding agency shall be required for each proposed award involving the type of sale and acquisition cost (actual or estimated) of property as follows:

(a) By negotiation-$1,000 or more;

(b) By competitive bid sale-$10,000 or more.

(8) Dangerous property.—No property shall be disposed of that is dangerous to public health or safety without rendering innocuous such property or providing adequate safeguards therefor.

(9) Property controlled by other law.-No property shall be disposed of in violation of any other applicable law.

(10) Sales for catastrophe relief.-Surplus personal property may, with the approval of an authorized field representative of an agency designated by the President under the provisions of the Independent Offices Appropriation Act, 1950 (or other similar provisions of law) to render assistance in alleviating hardship or suffering caused by any catastrophe, be disposed of by the holding agency through negotiated sale to any State or other non-Federal public body which is in possession (see sec. 6f of this regulation), without regard to the provisions of this regulation relating to donation for educational and publichealth purposes.

(11) Sales to Government employees.-Holding agencies shall not sell surplus personal property to persons known to be officers or employees of the Federal Government, except to the extent determined by the heads of such agencies to be in the best interest of the Government, and under procedures and safeguards, prescribed by the heads of such agencies, adequate to preclude collusion and fraud.

d. Terms and conditions of sale.—(1) Promulgation of standard form of sales contract and continuation sheet.-Standard Form 114, "Sale of Government Property, Invitation, Bid, and Acceptance" and Standard Form 114a, "Continuation Sheet," as set forth in appendixes D and E, are hereby prescribed for use by execlutive agencies in connection with contracts for the sale of Governmentowned personal property. (See sec. 23.) These forms may be used for sealed bid sales and, with appropriate modification, for other competitive bid sales and negotiated sales.

(2) Special conditions.-Additional terms, conditions, and instructions considered necessary, may be incorporated in invitations in which these forms are used, and changes in the general sale terms and conditions may be made, where necessary, by so providing in the invitations. (Changes in Standard Form 114 itself are not authorized by this paragraph.)

(3) Government as shipper.-The Government shall not be shown as shipper on collect commercial bills of lading in the case of sale of surplus property unless under the terms and conditions of sale the Government is obligated to load the property on the carrier's conveyance.

(4) Credit. When approved by the head of a holding agency or his designee, any holding agency may provide for sale of surplus personal property on credit where deemed necessary or desirable in furtherance of the basic policy objectives set forth in section 5c herein or in the best interests of the Government. In such cases, the terms and conditions of sale shall specifically provide therefor. (5) Deposits.-Subject to paragraph (6) immediately below, deposits in connection with bids on surplus personal property may be required where the head of the holding agency deems such action necessary or desirable in furtherance of the objectives of this regulation or in the best interests of the Government.

(6) State and local governments.-In the case of sales to State and local governments and instrumentalities thereof, the requirements of bid deposit and payment for property prior to removal may be waived to the extent that compliance therewith is precluded by laws applicable to such governments, or where otherwise deemed in the best interest of the Government.

e. Agricultural commodities, foods processed therefrom, and cotton and woolen goods. (1) Disposal by holding agencies.-Surplus agricultural commodities, surplus foods processed from agricultural commodities, and surplus cotton or woolen goods may be disposed of by the holding agency in accordance with this section, without reference to the Department of Agriculture, in the following instances:

(a) Where the quantity of such commodity or product in any one location has an acquisition cost not in excess of $5,000; or

(b) Where such commodity or product must be disposed of immediately to prevent spoilage; or

(c) Where the quantity to be sold during any month has an acquisition cost not in excess of:

(i) Raw cotton, wheat and other grains, flour, leaf tobacco, and cotton or woolen goods-$300,000;

(ii) Meat, poultry and poultry products, peanuts and other fats and oils $50,000;

(iii) All other agricultural commodities, and foods processed from agricultural commodities-$25,000.

(2) Required reference to the Department of Agriculture.—With respect to quantities of surplus agricultural commodities, surplus foods processed from agricultural commodities, and surplus cotton or woolen goods, in excess of the amounts specified in subparagraph (1) (c) immediately above, holding agencies shall obtain from the Administrator, Production and Marketing Administration, Department of Agriculture (designated for this purpose by the Secretary of Agriculture):

(a) A determination, with appropriate instructions, that the commodities or products should be transferred to the Department of Agriculture for disposition as provided by section 203 (h) of the act; or

(b) A statement setting forth the conditions and prices which should be used by the holding agency in the disposition of the commodities or products.

(3) Authorization for transfers to Department of Agriculture.-Authority is hereby delegated, with full power of redelegation, to the heads of all executive agencies to execute transfers without charge to the Department of Agriculture in accordance with paragraph (2) immediately above.

f. Disposal of certain vessels by the Secretary of Commerce.-The act provides that the Secretary of Commerce shall dispose of surplus vessels of 1,500 gross tons or more which the Secretary determines to be merchant vessels or capable of conversion to merchant use, and such vessels shall be disposed of only in accordance with the provisions of the Merchant Marine Act, 1936, as amended, and other laws authorizing the sale of such vessels; therefore, such vessels are excluded from this section.

g. Applicability of antitrust laws.-Whenever any holding agency shall begin negotiations for the disposition to private interests of property which cost the Government $1,000,000 or more, or of patents, processes, techniques, or inventions, irrespective of cost, the agency shall promptly notify the Attorney General and the Administrator of the proposed disposal and the probable terms or conditions thereof; and shall await advice from the Attorney General who will advise both the Administrator and the holding agency whether, insofar as he can determine, the proposed disposition would tend to create or maintain a situation inconsistent with the antitrust laws. In the event that the Attorney General advises that the proposed disposition would tend to create or maintain a situation inconsistent with the antitrust laws, the holding agency shall solicit further instructions from the Administrator before completing any disposition.

h. Proceeds from disposal. All proceeds from the disposal of surplus personal property shall be covered into the Treasury as miscellaneous receipts, except as otherwise authorized by law enacted subsequent to June 30, 1949, or as provided in paragraphs (1), (2), (3) or (4) below:

(1) Where the property disposed of was acquired by the use of funds either not appropriated from the general fund of the Treasury or appropriated therefrom but by law reimbursable from assessment, tax, or other revenue or receipts, then the net proceeds of the disposition shall be credited to the reimbursable fund or appropriation or paid to the Federal agency which determined such