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 dupli

cations 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 be conducted when practicable at the site of the property or where records of the executive agencies are kept, and include but not be limited to an evaluation of the effectiveness of internal controls and audits, and a general audit of the discharge of the duty to account for property. (See section 602 (c) of the Act, and paragraph 2 of the letter of the President to all executive agencies, set forth in Appendix A.)

APPLICABILITY OF ANTITRUST LAWS

SEC. 207. (a) Except as provided by subsection (c), no executive agency shall dispose of any plant, plants, or other property to any private interest until such agency has received the advice of the Attorney General on the question whether such disposal would tend to create or maintain a situation inconsistent with the antitrust laws. Whenever any such disposal is contemplated by any executive agency, such agency shall transmit promptly to the Attorney General notice of such proposed disposal and the probable terms or conditions thereof. If such notice is given by any executive agency other than the General Services Administration, a copy of such notice shall be transmitted simultaneously to the Administrator. Within a reasonable time, in no event to exceed sixty days, after receipt of such notification, the Attorney General shall advise the Administrator and any other interested executive agency whether, so far as he can determine, the proposed disposition would tend to create or maintain a situation inconsistent with the antitrust laws.

(b) Upon request made by the Attorney General, the Administrator or any other executive agency shall furnish or cause to be furnished to the Attorney General such information as the Administrator or such other executive agency may possess which the Attorney General determines to be appropriate or necessary to enable him to give the advice required by this section, or to determine whether any other disposition or proposed disposition of surplus property violates or would violate any of the antitrust laws.

(c) This section shall not apply to the disposal of―

(1) real property if the aggregate amount of the original acquisition cost of such property to the Government and all capital expenditures made by the Government with respect thereto is less than $1,000,000; or

(2) personal property (other than a patent, process, technique, or invention) with an acquisition cost of less than $3,000,000.

(d) Nothing contained in this Act shall impair, amend, or modify any of the antitrust laws or limit or prevent the application of any such law to any person who acquires in any manner any 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. 217, 63 Stat. 391, as amended by 72 Stat. 631; 40 U. S. C. 488)

This section originally required any executive agency in beginning negotiations for the disposal to private interests of any plant or other property costing $1,000,000 or more, or of patents or processes, etc., irrespective of cost, to seek advice of the Attorney General as to whether the proposed disposal would tend to create or maintain a situation inconsistent with the antitrust laws. Executive agencies are required to assist the Attorney General by furnishing any information appropriate or necessary to the Attorney General's determination and the Attorney General was required to make such determination and advise the Administrator of General Services and the interested executive agency within 60 days.

This section was amended in several respects by Public Law 85-680, (72 Stat. 631) approved August 19, 1958. The reference to beginning negotiations was removed, and it was provided that any executive agency, whenever disposal is contemplated, shall promptly transmit notice thereof to the Attorney General, with pertinent information. Another amendment requires any executive agency which has requested advice from the Attorney General to await the receipt thereof before making the disposal. There is now a further provision that when such notice is submitted to the Attorney General by an executive agency other than the General Services Administration a copy of such notice shall be submitted to the Administrator of General Services simultaneously.

An important amendment made by Public Law 85-680 provides that the terms of section 207 shall not apply to the disposal of (a) real property, if the aggregate amount of the original acquisition cost and all capital expenditures made by the Government with respect thereto are less than $1,000,000 (which eliminates maintenance expenses incurred by the Government from the computation of cost) or (b) personal property (other than a patent, process, technique, or invention) with an acquisition cost of less than $3,000,000.

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

Secton 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 to utilize commissioned officers in the armed services with the consent of the head of the agency concerned. While 10 U. S. C. 576, cited in text, was repealed by the Act of August 10, 1956, section 53, 70A Stat. 641, analogous provisions are contained in sections 3544 and 8544 of the revised and codified title 10 of the United States Code (Act of August 10, 1956, Public Law 1028). This section contemplates that when the Administrator determines a delegation of authority is not warranted, he may make use of personnel of other agencies (subject to the approval of the head of agencies concerned) who would perform under his direction.

CIVIL REMEDIES AND PENALTIES

SEC. 209. (a) Where any property is transferred or disposed of in accordance with this Act and any regulations prescribed hereunder, no officer or employee of the Government shall (1) be liable with respect to such transfer or disposition except for his own fraud, or (2) be accountable for the collection of any purchase price for such prop

erty which is determined to be uncollectible by the Federal agency responsible therefor.

(b) Every person who shall use or engage in, or cause to be used or engaged in, or enter into an agreement, combination, or conspiracy to use or engage in or to cause to be used or engaged in, any fraudulent trick, scheme, or device, for the purpose of securing or obtaining, or aiding to secure or obtain, for any person any payment, property, or other benefits from the United States or any Federal agency in connection with the procurement, transfer, or disposition of property hereunder

(1) shall pay to the United States the sum of $2,000 for each such act, and double the amount of any damage which the United States may have sustained by reason thereof, together with the cost of suit; or

(2) shall, if the United States shall so elect, pay to the United States, as liquidated damages, a sum equal to twice the consideration agreed to be given by the United States or any Federal agency to such person or by such person to the United States or any Federal agency, as the case may be; or

(3) shall, if the United States shall so elect, restore to the United States the money or property thus secured and obtained and the United States shall retain as liquidated damages any property, money, or other consideration given to the United States or any Federal agency for such money or property, as the case may be.

(c) The several district courts of the United States, the District Court of the United States for the District of Columbia, and the several district courts of the Territories and possessions of the United States, within whose jurisdictional limits the person, or persons, doing or committing such act, or any one of them, resides or shall be found, shall wheresoever such act may have been done or committed, have full power and jurisdiction to hear, try, and determine such suit, and such person or persons as are not inhabitants of or found within the district in which suit is brought may be brought in by order of the court to be served personally or by publication or in such other reasonable manner as the court may direct.

(d) The civil remedies provided in this section shall be in addition to all other criminal penalties and civil remedies provided by law.

ANALYSIS

Section 209. Civil remedies and penalties (Sec. 209, 63 Stat. 392; 40 U. S. C. 489)

(a) Liability of Government employees.-This subsection exempts officers and employees of the Government disposing of property under this act from liability with respect to such disposition, except for their own fraud, and from liability for the collection of any purchase price determined to be uncollectible. This provision is necessary because of the wide discretion which must be permitted persons charged with disposition under circumstances calling for swift action, and the tremendous volume of property covered by the Act.

(b) Civil penalties for fraud. This subsection deals with the civil liability of persons who engage in fraudulent activities for obtaining any payment, property, or other benefit from the Unted States in connection with procurement, transfer, or disposition of property. The United States is given the following options