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ADMINISTRATIVE DETERMINATIONS AND DELEGATIONS

SEC. 307. (a) The determinations and decisions provided in this title to be made by the Administrator or other agency head may be made with respect to individual purchases and contracts or with respect to classes of purchases or contracts, and shall be final. Except as provided in subsection (b) of this section, the agency head is authorized to delegate his powers provided by this title, including the making of such determinations and decisions, in his discretion and subject to his direction, to any other officer or officers or officials of the agency.

(b) The power of the agency head to make the determinations or decisions specified in paragraphs (12) and (13) of section 302 (c) shall not be delegable, and the power to make the determinations or decisions specified in paragraph (11) of section 302 (c) shall be delegable only to a chief officer responsible for procurement and only with respect to contracts which will not require the expenditure of more than $25,000. The power of the Administrator to make the delegations and determinations specified in section 302 (a) shall be delegable only to the Deputy Administrator or to the chief official of any principal organizational unit of the General Services Administration.

(c) Each determination or decision required by paragraphs (11), (12), (13), or (14) of section 302 (c), by section 304 or by section 305 (c) shall be based upon written findings made by the official making such determination, which findings shall be final and shall be available within the agency for a period of at least six years following the date of the determination. A copy of the findings shall be submitted to the General Accounting Office with the contract.

(d) In any case where any purchase or contract is negotiated pursuant to the provisions of section 302 (c), except in a case covered by paragraphs (2), (3), (4), (5), or (6) thereof, the data with respect to the negotiation shall be preserved in the files of the agency for a period of six years following final payment on such contract.

ANALYSIS

Section 307. Administrative determinations and delegations (Sec. 307, 63 Stat. 396, as amended by sec. 5, 72 Stat. 966; 41 U. S. C. 257)

(a) Finality of determinations and decisions; delegation of powers.-This subsection provides that the determinations and decisions to be made by the Administrator or other agency head may be made with respect to individual purchases and contracts or with respect to classes of purchases or contracts and that such determinations and decisions shall be final. It allows delegation by the agency head except in those cases designated in subsection (b) of this section. The determinations and decisions so made will not be made subject to invalidation or challenge by the Comptroller General or the courts. However, the broader the power or the more important the decision or determination, the higher the level at which the decision or determination will be made.

(b) Restrictions upon delegation. This subsection prohibits the agency head from delegating the power to make the determinations or decisions specified in paragraphs (12) and (13) of section 302 (c), which concern, respectively, contracts which should not be publicly disclosed and standardization of technical equipment. This subsection also restricts the power of the agency head to make the decisions or determinations specified in paragraph (11) of section 302 (c) which concerns experimental, developmental, or research contracts. Furthermore, under this subsection the Administrator's power to delegate to another civilian executive agency the right to use the authority provided under ti "I

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can be delegated by the Administrator only to the Deputy Administrator of the General Services Administration or to the chief official of any principal organ. izational unit of the General Services Administration. Thus, such power to con fer authority upon another civilian agency is to be exercised only at a high level within the General Services Administration.

The amendment of August 28, 1958 (72 Stat. 966) renumbered the paragraphs (10), (11), and (12) to (11), (12), and (13), to bring them in line with other provisions of this Act. The amendment of August 28, 1958, also made delegable by the agency head authority to determine to make advance payments.

(c) Requirement for written findings.—As a further safeguard this subsection requires that determinations or decisions concerning research and development contracts, contracts which should not be publicly disclosed, standardization of technical equipment, negotiation after advertising, the type of contract to be used, and the making of advance payments shall be based upon written findings, that these findings shall be final, and shall be available within the agency for at least 6 years after making such determination. Furthermore, it provides that a copy of the findings shall be furnished to the General Accounting Office with the contract.

(d) Preservation of data with respect to negotiation.-Data with respect to negotiation is required to be preserved in the agency for 6 years following final payment on the contract except where negotiation is pursuant to public exigency, under a dollar amount limitation, for personal or professional services, for services to be rendered by an educational institution, or for property or services which are to be purchased and used outside the limits of the United States or its possessions.

STATUTES CONTINUED IN EFFECT

SEC. 308. No purchase or contract shall be exempt from the Act of June 30, 1936 (49 Stat. 2036, as amended; 41 U. S. C. 35 to 45), or from the Act of March 3, 1931 (46 Stat. 1494, as amended; 40 U. S. C. 276a to 276a-6), solely by reason of having been entered into pursuant to section 302 (c) hereof without advertising, and the provisions of said Acts and of the Act of June 19, 1912 (37 Stat. 137, as amended; 40 U. S. C. 324 and 325a), if otherwise applicable, shall apply to such purchases and contracts.

ANALYSIS

Section 308. Statutes continued in effect. (Sec. 308, 63 Stat. 397; 41 U. S. C. 258) This section provides that contracts executed under this title shall not be exempt from the provisions of the Walsh-Healey Act, the Davis-Bacon Act, or the 8-hour law by reason of their having been entered into by negotiation.

DEFINITIONS

SEC. 309. As used in this title

(a) The term "agency head" shall mean the head or any assistant head of any executive agency, and may at the option of the Administrator include the chief official of any principal organizational unit of the General Services Administration.

[(b)-repealed]

ANALYSIS

Section 309. Definitions (Sec. 309, 63 Stat. 397, as amended by sec. 1 (h), 66 Stat. 593; 41 U. S. C. 259)

(a) This subsection defines the term "agency head" as used in title III to mean the head or an assistant head of any executive agency, and provides that the term may at the option of the Administrator include the chief official of any

principal organizational unit of the General Services Administration. This was deemed salutary in order to reserve the power of determination and decision at an adequately high level, and at the same time to designate the officials intended to be covered.

(b) Section 309 as originally enacted in Public Law 152 contained a subsection (b) which read as follows:

"The term 'supplies' shall mean all property except land, and shall include, by way of description and without limitation, public works, buildings, facilities, ships, floating equipment, and vessels of every character, type and description (except the categories of naval vessels named in section 3 (d)), aircraft, parts, accessories, equipment, machine tools and alteration or installation thereof."

This subsection was repealed by subsection (h) of section 1 of Public Law 522 of the 82d Congress, approved July 12, 1952. The purpose of such repeal is explained in the analysis of title III following section 301 of the Act.

STATUTES NOT APPLICABLE

SEC. 310. (a) The following provisions of law shall not apply to the procurement of property or services (1) by the General Services Administration, or (2) within the scope of authority delegated by the Administrator to any other executive agency:

Revised Statutes, section 3709, as amended (41 U. S. C. 5);
Revised Statutes, section 3735 (41 U. S. C. 13);

Sections 1 and 2 of the Act of October 10, 1940 (54 Stat. 1109, as amended; 41 U. S. C. 6 and 6a).

(b) Reference in any Act, except subsection (a) of this section, to the applicability of Revised Statutes, section 3709, as amended (41 U. S. C. 5), to the procurement of property or services by the General Services Administration or any constituent organization thereof, or any other executive agency delegated authority pursuant to section 302 (a) (2), shall be deemed to be reference to section 302 (c) of this Act.

ANALYSIS

Section 310. Statutes not applicable (Sec. 310, 63 Stat. 397, as amended by sec. 1 (m), (n), 66 Stat. 594, and sec. 6, 72 Stat. 966; 41 U. S. C. 260) (a) Specification of certain laws not applicable to procurement.—This subsection provides that the following acts shall not be applicable to the procurement of property or services by the General Services Administration:

Revised Statutes, section 3709, as amended, which concerns formal advertising;

Revised Statutes, section 3735, which prohibits the making of contracts for "stationery or other supplies" for more than year; and

Sections 1 and 2 of the Act of October 10, 1940, which set forth certain specific exemptions from Revised Statutes, section 3709, which are not in harmony with this title. (Section 1 was repealed by sec. 1 (98)-(105) of Public Law 247, 82d Congress, and section 2 was repealed in part and amended in part by secs. 1 (106-108), 3 (8), (9), and 4 (9) of said law which is referred to in the analysis following section 212.)

These statutes are also suspended for procurement made by another civilian executive agency, under proper delegation of authority made by the Administrator and solely within the scope of that authority, and such suspension is limited to the extent and within the purview of the authority thus delegated.

(b) Construction of references to section 3709 of Revised Statutes.-This subsection was added by subsection (n) of section 1 of Public Law 522 of the 82d Congress, approved July 12, 1952 (66 Stat. 594), which also inserted "(a)" after "Sec. 310." in the text above. The purpose of the addition of subsection (b) was to make a technical clarification, by substituting reference to section 302 (c) of

the Act for section 3709, Revised Statutes, as amended, whenever the latter is cited in any law affecting the procurement of property or services by the General Services Administration. Section 3709 is the general statute requiring advertising except in certain specified cases. Authority to negotiate and enter into contracts generally without advertising is frequently granted by providing that contracts may be made "without regard to" the provisions of section 3709. Section 310 of the Act made section 3709 inapplicable to the General Services Administration since title III, particularly section 302 (c), provides somewhat more liberal exceptions from the advertising requirement. However, where the Congress has previously granted a complete exemption from the advertising requirement by authorizing the making of contracts without regard to the provisions of section 3709, as in the Strategic and Critical Materials Stock Piling Act, it was certainly not intended by the enactment of the Federal Property and Administrative Services Act of 1949 to make contracts under the former act subject to the restrictions of section 302 (c). This subsection provides, in effect, that when section 3709 is inapplicable to a certain type of contract, section 302 (c) shall likewise be inapplicable to that type of contract when made by the General Services Administration.

A technical amendment was made by section 6 of Public Law 85-800, approved August 28, 1958 (72 Stat. 966). It provides that agencies authorized to observe in procurement the advertising and negotiation procedures of title III need not observe the kindred requirements of section 3709, Revised Statutes. Existing exemptions from the applicability of section 3709, Revised Statutes, are automatically transferred and preserved. References of section 3709, Revised Statutes, to such agencies are hereafter to be considered as references to section 302 (c) of the Act.

TITLE IV-FOREIGN EXCESS PROPERTY

DISPOSAL OF FOREIGN EXCESS PROPERTY

SEC. 401. Each executive agency having foreign excess property shall be responsible for the disposal thereof: Provided, That (a) the head of each such executive agency shall, with respect to the disposition of such property, conform to the foreign policy of the United States; (b) the Secretary of State shall have the authority to use foreign currencies and credits acquired by the United States under section 402 (b) of this Act in order to effectuate the purposes of section 32 (b) (2) of the Surplus Property Act of 1944, as amended, and the Foreign Service Buildings Act of May 7, 1926, as amended (including Public Law 547, Seventy-ninth Congress (60 Stat. 663)), and for the purpose of paying any other governmental expenses payable in local currencies, and the authority to amend, modify, and renew agreements in effect on the effective date of this Act; (c) any foreign currencies or credits acquired by the Department of State pursuant to such agreements shall be administered in accordance with procedures that may from time to time be established by the Secretary of the Treasury and, if and when reduced to United States currency, shall be covered into the Treasury as miscellaneous receipts; and (d) the Department of State shall, except to such extent as the President shall otherwise determine, continue to perform other functions with respect to agreements for the disposal of foreign excess property in effect on the effective date of this Act.

ANALYSIS

Section 401. Disposal of foreign excess property (Sec. 401, 63 Stat. 397; 40 U. S. C. 511)

This section generally provides that, except where commitments exist under previous agreements, all excess property located in foreign areas shall be dis

posed of by the owning agency. The head of the agency in question is directed to conform to the foreign policy of the United States in making such disposals. The section provides further that the Secretary of State shall continue to administer existing agreements with respect to the disposal of foreign excess property and shall have authority to amend, modify and renew such agreements in order to carry on the foreign educational exchange program and the purposes of the Foreign Service Buildings Act and to provide local currencies under procedures established by the Secretary of the Treasury for the payment of expenses of the United States in the country in question.

METHODS AND TERMS OF DISPOSAL

SEC. 402. Foreign excess property may be disposed of (a) by sale, exchange, lease, or transfer, for cash, credit, or other property, with or without warranty, and upon such other terms and conditions as the head of the executive agency concerned deems proper; but in no event shall any property be sold without a condition forbidding its importation into the United States, unless the Secretary of Agriculture (in the case of any agricultural commodity, food, or cotton or woolen goods) or the Secretary of Commerce (in the case of any other property) determines that the importation of such property would relieve domestic shortages or otherwise be beneficial to the economy of this country, or (b) for foreign currencies or credits, or substantial benefits or the discharge of claims resulting from the compromise or settlement of such claims by any executive agency in accordance with the law, whenever the head of the executive agency concerned determines that it is in the interest of the United States to do so. Such property may be disposed of without advertising when the head of the executive agency concerned finds so doing to be most practicable and to be advantageous to the Government. The head of each executive agency responsible for the disposal of foreign excess property may execute. such documents for the transfer of title or other interest in property and take such other action as he deems necessary or proper to dispose of such property; and may authorize the abandonment, destruction, or donation of foreign excess property under his control which has no commercial value or the estimated cost of care and handling of which would exceed the estimated proceeds from its sale.

ANALYSIS

Section 402. Methods and terms of disposal (Sec. 402, 63 Stat. 398; 40 U. S. C. 512)

This section authorizes disposals of foreign excess property under terms similar to those in the Surplus Property Act of 1944, as amended, under which foreign disposals were previously made. Foreign excess property may be disposed of by sale, exchange, lease, or transfer, for cash, credit, or other property, with or without warranty, and upon such other terms and conditions as the head of the executive agency concerned deems proper. Such property may be disposed of for foreign currencies or credits, or substantial benefits or the discharge of claims resulting from the compromise or settlement of such claims by any executive agency in accordance with the law, whenever the head of the executive agency concerned determines that it is in the interest of the United States to do so. Disposals may be made without advertising when the head of the executive agency finds such a course to be most practicable and to be most advantageous to the Government. Sales of any property must include a condition forbidding importation into the United States unless the Secretary of Agriculture (in the case of any agricultural commodity, food, or cotton or woolen goods) or the Secretary of Commerce (in the case of any other property) determines that such property is in short supply in this country. The head of the

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