for the Federal utilization screening of such property by GSA for a 45-day period following DOD screening.

b. GSA Screening. Upon completion of DOD screening, AFSSC will forward to the apropriate GSA regional office annotated copies of reports of available excess production equipment. Production equipment screened by AFSSC and reported to GSA shall not be circularized to DOD activities.

c. Donation Screening. After the property becomes surplus on the ARD, a 15-day period is provided for DHEW application (Form 136) for educational, public health, or civil defense purposes. Upon expiration of the donation period, that portion of the production equipment for which no GSA instructions have been received for utilization transfer or donation, will be disposed of by the owning agency by sale or by other means.

5. Reimbursement

Transfers of excess contractor inventory, including production equipment, shall be without reimbursement in accordance with Government-wide policy established by Title 1 of GSA Regulations (and by 4160.9 within DOD). All direct costs incident to transfer, including packing, crating, preparation for shipment, loading and transportation, but not including overhead or administrative costs, will be borne by the transferee agency or donee. Where such costs are incurred by the holding agency, it shall be reimbursed by the transferee agency upon appropriate billing, unless waived by the holding agency.

6. Inspection of property

Owning service representatives as designated on the SF 120 will facilitate the physical inspection of Inventory Schedule property by prospective transferees or donees at the contractor's plant. Inspection shall be confined to property specifically reported as excess to the needs of the contractor as termination inventory and will be conducted in such a manner to avoid interruption of the contractor's operations. The DHEW will generally obtain information about donable contractor inventory from the appropriate GSA regional office. However, DHEW and its authorized State representatives may obtain availability information concerning non-reportable excess inventory directly from cognizant military contracting offices.

7. Packing contracts

Some contractor plants may not have facilities nor the desire to handle the packing, crating, and preparation for shipment of property approved for transfer or donation. Therefore, it is suggested that each regional Personal Property Division arrange with the regional TPUS to establish GSA packing contracts in areas which generate large quantities of contractor inventory as has been done in Region 9.

8. Reporting requirements

Beginning September 1, 1961, GSA Form 1242, Excess Personal Property Utilization Activities, shall be used to record all excess personal property contractor inventory transactions handled by GSA. Excess contractor inventory reported to GSA and excess contractor inventory screened by GSA but not reported shall be shown on applicable lines of the above form. Acquisition cost will be the book value shown on the Inventory Schedules.

The above excess contractor inventory data will be reported to the Central Office on the monthly GSA Form 1242 report. In addition, a separate GSA Form 1242 containing only contractor inventory data on lines 2, 4, 7, 9, 16, 17, 18, and 22 will be attached to the region's monthly GSA Form 1242.

Instructions will be issued shortly to provide for EAM recording of the important data relative to contractor inventory as an integral part of the EAM activity in the personal property utilization program,

APPENDIX 5: SECTION 203 OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949

SEC. 203. (j) (1) Under such regulations as he may prescribe, the Administrator is authorized in his discretion to donate without cost (except for costs of care and handling) for use in any State for purposes of education, public health, or civil defense, or for research for any such purpose, any equipment, materials, books, or other supplies (including those capitalized in a working capital or similar fund) under the control of any executive agency which shall have been determined to

be surplus property and which shall have been determined under paragraph (2), (3), or (4) of this subsection to be usable and necessary for any such purpose. In determining whether property is to be donated under this subsection, no distinction shall be made between property capitalized in a working-capital fund established under section 405 of the National Security Act of 1947, as amended, or any similar fund, and any other property. No such property shall be transferred for use within any State except to the State agency designated under State law for the purpose of distributing, in conformity with the provisions of this subsection, all property allocated under this subsection for use within such State. (2) In the case of surplus property under the control of the Department of Defense, the Secretary of Defense shall determine whether such property is usable and necessary for educational activities which are of special interest to the armed services, such as maritime academies or military, naval, Air Force, or Coast Guard preparatory schools. If such Secretary shall determine that such property is usable and necessary for such purposes, he shall allocate it for transfer by the Administrator to the appropriate State agency for distribution to such educational activities. If he shall determine that such property is not usable and necessary for such purposes, it may be disposed of in accordance with paragraph (3) or paragraph (4) of this subsection.

(3) Determination whether such surplus property (except surplus property allocated in conformity with paragraph (2) of this subsection) is usable and necessary for purposes of education or public health, or for research for any such purpose, in any State shall be made by the Secretary of Health, Education, and Welfare, who shall allocate such property on the basis of needs and utilization for transfer by the Administrator to such Štate agency for distribution to (A) taxsupported medical institutions, hospitals, clinics, health centers, school systems, schools, colleges, and universities, and (B) other non-profit medical institutions, hospitals, clinics, health centers, schools, colleges, and universities which are exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1954. No such property shall be transferred to any State agency until the Secretary of Health, Education, and Welfare has received, from such State agency, a certification that such property is usable and needed for educational or public health purposes in the State, and until the Secretary has determined that such State agency has conformed to minimum standards of operation prescribed by the Secretary for the disposal of surplus property.

(4) Determination whether such surplus property (except surplus property allocated in conformity with paragraph (2) of this subsection) is usable and necessary for civil defense purposes, including research, in any State shall be made by the Federal Civil Defense Administrator, who shall allocate such property on the basis of need and utilization for transfer by the Administrator of General Services to such State agency for distribution to civil defense organizations of such State, or political subdivisions and instrumentalities thereof, which are established pursuant to State law. No such property shall be transferred until the Federal Civil Defense Administrator has received from such State agency a certification that such property is usable and needed for civil defense purposes in the State, and until the Federal Civil Defense Administrator has determined that such State agency has conformed to minimum standards of operation prescribed by the Federal Civil Defense Administrator for the disposal of surplus property. The provisions of sections 201(b), 401 (c), 401(e), and 405 of the Federal Civil Defense Act of 1950, as amended, shall apply to the performance by the Federal Civil Defense Administrator of his responsibilities under this section.

(5) The Secretary of Health, Education, and Welfare and the Federal Civil Defense Administrator may impose reasonable terms, conditions, reservations, and restrictions upon the use of any single item of personal property donated under paragraph (3) or paragraph (4), respectively, of this subsection which has an acquisition cost of $2,500 or more.

(6) The term "State", as used in this subsection, includes the District of Columbia, the Commonwealth of Puerto Rico, and the Territories and possessions of the United States.

(k) (1) Under such regulations as he may prescribe, the Administrator is authorized, in his discretion, to assign to the Secretary of Health, Education, and Welfare for disposal such surplus real property, including buildings, fixtures, and equipment situated thereon, as is recommended by the Secretary of Health, Education, and Welfare as being needed for school, classroom, or other educational use, or for use in the protection of public health, including research.

(A) Subject to the disapproval of the Administrator within thirty days after notice to him by the Secretary of Health, Education, and Welfare of a

proposed transfer of property for school, classroom, or other educational use, the Secretary of Health, Education, and Welfare, through such officers or employees of the Department of Health, Education, and Welfare as he may designate, may sell or lease such real property, including buildings, fixtures, and equipment situated thereon, for educational purposes to the States and their political subdivisions and instrumentalities, and tax-supported educational institutions, and to other nonprofit educational institutions which have been held exempt from taxation under section 101 (6) of the Internal Revenue Code.

(B) Subject to the disapproval of the Administrator within thirty days after notice to him by the Secretary of Health, Education, and Welfare of a proposed transfer of property for public-health use, the Secretary of Health, Education, and Welfare, through such officers or employees of the Department of Health, Education, and Welfare as he may designate, may sell or lease such real property for public-health purposes, including research, to the States and their political subdivisions and instrumentalities, and to taxsupported medical institutions, and to hospitals or other similar institutions not operated for profit which have been held exempt from taxation under section 101 (6) of the Internal Revenue Code.

(C) In fixing the sale or lease value of property to be disposed of under subparagraph (A) and subparagraph (B) of this paragraph, the Secretary of Health, Education, and Welfare shall take into consideration any benefit which has accrued or may accrue to the United States from the use of such property by any such State, political subdivision, instrumentality, or institution.

(D) "States" as used in this subsection includes the District of Columbia, the Commonwealth of Puerto Rico, and the Territories and possessions of the United States.

(2) Subject to the disapproval of the Administrator within thirty days after notice to him of any action to be taken under this subsection

(A) the Secretary of Health, Education, and Welfare, through such officers or employees of the Department of Health, Education, and Welfare as he may designate, in the case of property transferred pursuant to the Surplus Property Act of 1944, as amended, and pursuant to this Act, to States, political subdivisions, and instrumentalities thereof, and tax-supported and other nonprofit educational institutions for school, classroom, or other educational use;

(B) the Secretary of Health, Education, and Welfare, through such officer or employees of the Department of Health, Education, and Welfare as he may designate, in the case of property transferred pursuant to the Surplus Property Act of 1944, as amended, and pursuant to this Act, to States, political subdivisions and instrumentalities thereof, tax-supported medical institutions, and to hospitals and other similar institutions not operated for profit, for use in the protection of public health (including research);

(C) the Secretary of the Interior, in the case of property transferred pursuant to the Surplus Property Act of 1944, as amended, and pursuant to this Act, to States, political subdivisions, and instrumentalities thereof, and municipalities for use as a public park, public recreational area, or historic monument for the benefit of the public;

(D) the Secretary of Defense, in the case of property transferred pursuant to the Surplus Property Act of 1944, as amended, to States, political subdivisions, and tax-supported instrumentalities thereof for use in the training and maintenance of civilian components of the armed forces; or

(E) the Federal Civil Defense Administrator, in the case of property transferred pursuant to this Act to civil defense organizations of the States or political subdivisions or instrumentalities thereof which are established by or pursuant to State law,

is authorized and directed

(i) to determine and enforce compliance with the terms, conditions,. reservations, and restrictions contained in any instrument by which such transfer was made;

(ii) to reform, correct, or amend any such instrument by the execution of a corrective, reformative, or amendatory instrument where necessary to correct such instrument or to conform such transfer to the requirements of applicable law; and

(iii) to (I) grant releases from any of the terms, conditions, reservations. and restrictions contained in, and (II) convey, quitclaim, or release to the transferee or other eligible user any right or interest reserved to the United'

States by, any instrument by which such transfer was made, if he determines that the property so transferred no longer serves the purpose for which it was transferred, or that such release, conveyance, or quitclaim deed will not prevent accomplishment of the purpose for which such property was so transferred: Provided, That any such release, conveyance, or quitclaim deed may be granted on, or made subject to, such terms and conditions as he shall deem necessary to protect or advance the interests of the United States. (1) Under such regulations as he may prescribe, the Administrator is authorized in his discretion to donate to the American National Red Cross, for charitable purposes, such property, which was processed, produced, or donated by the American National Red Cross, as shall have been determined to be surplus property.

(m) The Administrator is authorized to take possession of abandoned and other unclaimed property on premises owned or leased by the Government, to determine when title thereto vested in the United States, and to utilize, transfer or otherwise dispose of such property. Former owners of such property upon proper claim filed within three years from the date of vesting of title in the United States shall be paid the proceeds realized from the disposition of such property or, if the property is used or transferred, the fair value therefor as of the time title was vested in the United States as determined by the Administrator, less in either case the costs incident to the care and handling of such property as determined by the Administrator.

(n) For the purpose of carrying into effect the provisions of subsections_(j) and (k), the Secretary of Health, Education, and Welfare, the Federal Civil Defense Administrator, and the head of any Federal agency designated by either such officer, are authorized to enter into cooperative agreements with State surplus property distribution agencies designated in conformity with paragraph (1) of subsection (j). Such cooperative agreements may provide for utilization by such Federal agency, without payment or reimbursement, of the property, facilities, personnel, and services of the State agency in carrying out any such program, and for making available to such State agency, without payment or reimbursement, property, facilities, personnel, or services of such Federal agency in connection with such utilization.

(0) The Secretary of Health, Education, and Welfare shall submit, during each calendar quarter, a report to the Senate (or to the Secretary of the Senate if the Senate is not in session) and to the House of Representatives (or to the Clerk of such House if it is not in session) showing the acquisition cost of all personal property donated under subsection (j) and of all real property disposed of under subsection (k) during the preceding calendar quarter to, or for distribution to, educational or public health institutions in each State, Territory, and possession. The first report under this subsection shall be made with respect to property donated or disposed of during the first calendar quarter which begins after the enactment of this subsection.

APPENDIX 6: DEPARTMENT OF DEFENSE INSTRUCTION No. 4160.18,
FEBRUARY 10, 1959

Number: 4160.18.

DEPARTMENT OF DEFENSE INSTRUCTION

Date: February 10, 1959.

ASD (MP&R).

Subject: Establishment of Criteria for the Designation of Activities of Special Interest to the Armed Forces.

References:

(a) DOD Directive 5100.13, "Donation of Surplus Personal Property to Educational Activities of Special Interest to the Armed Services. (b) DOD Instruction 4160.14, "Policy and Procedures Relating to Donation of Surplus Personal Property to Designated Activities of Special Interest to the Armed Services."

(c) Federal Property and Administrative Services Act of 1949, as amended (63 Stat. 377; 40 USC 471, 484).

I. Authority and purpose

This Instruction is issued pursuant to and in amplification of reference (a). It establishes criteria by which eligibility to receive surplus personal property may be determined within the Department of Defense.

II. Scope

Educational activities qualifying under Section III desiring to participate in the donation program must first make application to that effect. The application must be forwarded to the cognizant Secretary for nomination and be approved by the Secretary of Defense prior to the activity being added to the eligibility list. Donation agreements currently in effect between the Department of Defense and certain educational activities need not be renegotiated.

III. Criteria of eligibility

Only "educational activities which are of special interest to the armed services" as authorized in Section 203 (j) (2) of reference (c) are eligible to receive surplus personal property. The following categories of educational activities have been determined to be of special interest to the Department of Defense:

A. Military Schools Division, ROTC. The military schools division is composed of units at designated schools which have been specifically authorized one of the following type units

1. Class MJC: Units established at essentially military schools which provide high school and junior college instruction, but do not confer baccalaureate degrees. These units require all military students to be habitually in uniform when on the post, reservation or campus; organize their military bodies as corps of cadets under constantly maintained military discipline; have as their objectives the development of military students' character by means of military training and the regulation of their conduct in accordance with military principles; and in general, meet military standards similar to those maintained at the service academies. Additionally, these units accept and maintain the specifically designated program of instruction prescribed by the cognizant Secretary for this class of institution.

2. Class MI: Units established at essentially military schools of secondary level of instruction which meet the military training requirements of Class MJC, above.

B. Other Secondary School Units. Those military training units established at high schools and other educational institutions of comparable level which require all military students to be habitually in uniform when in school or on campus; organize their military bodies as corps of cadets; accept and maintain the specifically designated program of instruction prescribed by the cognizant Secretary for such institutions.

C. National Defense Cadet Corps (NDCC) Program Schools.

D. Naval Honor Schools.

E. State Maritime Academies.

F. Civilian Youth Organizations. These are limited to organizations (1) whose primary goal is education; (2) whose membership is national in scope; (3) which are open to youths predominantly in the 8 to 18 year old category; and (4) which have been chartered by the Congress. Civilian youth organizations which were on the eligible list in effect on the day before the effective date of this Instruction, and which would be eligible under this Instruction but for the fact that they do not have a Federal charter, must obtain a charter within two years of that effective date or become ineligible to receive property under this Instruction. In the meantime, they may be retained on the eligible list.

IV. Kinds of property available

An eligible educational activity may receive only the kinds of surplus personal property that are specified by written donation agreement between the educational activity and the Department of Defense.

V. Implementation and effective date

This Instruction is effective immediately. The military departments will revise their regulations, procedures and instructions as necessary to implement the provisions of this Instruction and forward copies of such implementations to the Assistant Secretary of Defense (Manpower, Personnel, and Reserve) within sixty days. CHARLES C. FINUCANE,

Assistant Secretary of Defense (Manpower, Personnel, and Reserve).

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