FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP57-00384R001000040011-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 54
• Document Creation Date: December 9, 2016
• Document Release Date: November 28, 2000
• Sequence Number: 11
• Publication Date: May 24, 1949
• Content Type: REGULATION

Approved For Release 2001/08/15 : CIA-RDP57-00384RO01000040011-7
81ST CONGRESS HOUSE OF REPRESENTATIVES REPORT
1st Session s No. 670
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES
ACT OF 1949
MAY 24, 1949.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. DAWSON, from the Committee on Expenditures in the Executive
Departments, submitted the following.
REPORT
The Committee on Expenditures in the Executive Departments,
to whom was referred the bill (H. R. 4754) to simplify the procure-
ment, utilization, and disposal of Government property, to reorganize
certain agencies of the Government, and for other purposes, having
considered the same, report favorably thereon with amendments and
recommend that the bill, as amended, do pass.
The amendments are as follows:
Page 2, title II, sec. 206, strike the period and add ", and catalog-
inLy."
Page 3, line 5, strike "-" after the word "public".
Page 3, line 23, strike "i" in parenthesis and insert "1".
Page 3, line 25, strike "ii" in parenthesis and insert "2".
Page 5, line 3, strike "i" in parenthesis and insert "1".
Page 5, line 8, strike "ii" in parenthesis and insert "2".
Page 7, line 16, strike the word "Agency", and insert in lieu "Admin-
istration".
Page 8, line 24, after the word "Administration" insert ",".
Page 13, line 21, after the word "public", strike "-".
Page 14, line 9, after the word "public", strike "-".
Page 15, line 13, strike "35d" and insert "354"; strike ")" and insert
", 41 U. S. C. (7b))".
Page 18, line 8, after the word "value", strike ",".
Page 19, line 2, after the word "property", insert ",".
Page 21, line 15, after the word "usable", insert "and necessary".
Page 22, line 2, after "non", strike "-"
Page 38, line 8, strike the word "Agency" and insert in lieu "Admin-
istration".
11. Rept. 070, 81-1-1
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Appxoved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
4 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
Page 50, line 14, strike "III"' and insert in lieu "IV".
Page 54, line 7, after "(6)" insert "The first and second provisos
contained in the fourth paragraph under the heading "Division of
Supply" in".
Page 57, Pine 5, after the parenthesis, strike ": and".
Page 57, line 6, strike out entire subsection "(29)".
Page 60, Pine 17, strike "iv" in parenthesis and insert "4".
Page 62, between lines 10 and 11, insert new subsection, "(17) Cen-
tral Intelligence Agency;".
Page 62, line 11, strike figure "17" in parenthesis and insert "18"..
Page 62, line 21, strike figure "18" in parenthesis and insert "19".
Page 63, line 21, strike figure "402" and insert in lieu "502".
Page 63, line 23, strike "502 (a) (29)," and insert in lieu "201 (e)."?
DEVELOPMENT IN FIELD OF PROPERTY MANAGEMENT
The need for an improved and efficient property management pro-
gram, dealing with the problems facing the Federal Government in
this respect, is becoming ever more apparent. The House with the.
passage of a, bill in 1943 (H. R. 2795) took the initial step toward the
recognition and solution of this complex phase of government. How-
ever, the Congress deferred action on that legislation, owing to the
pressing necessity of disposal of war-surplus goods without dislocating
the national. economy. Instead the Surplus Property Act of 1.944 was
passed. This act had for its major purpose the handling of ourwar--
generated surplus, with a limited lifetime of 3 years following the date
of cessation of hostilities. This act. will terminate on December
. The President, by special message dated March 5, 1948, recom-
mended to the Congress renewed consideration of legislation in the
field of property management. With this in mind, the Federal Works
Administrator was directed to draft for evaluation a bill to effect
such purpose. This bill, termed "The Federal Property Act of 1948"
(S. 2754, 80th Cong.) was unanimously reported out by the Senate
Committee on Expenditures in the Executive Departments, and would
have established a sound system for property management. This
bill was never taken up by the Senate prior to adjournment because
of the pressure of other matters.
In February of this year, the .Federal Works Administrator, with the
approval of the Director of the Bureau of the Budget, acting on behalf
of the President, again presented a bill drafted for the accomplishment
of a uniform property management system. This bill, H. R. 2781,.
"The Federal Property Act of 1949," effectively parallels the recom-
mendations, for the most part, of the Commission on Organization of
the Executive Branch of the Government. (As reported out of House
and Senate Committees on Expenditures, these bills became H. R.
4754 and S. 1809, respectively.) The framework of this legislation
establishes a General Services Administration, headed by an,Admin-
istrator, answerable directly to the President, who would, concern
himself with the procurement, utilization, and disposal of Government
property. In this way, great strides can be made in increased effi-
ciency and economy of operation of the Federal Government.
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384RO010000 0011-7
FEDERAL PROPERTY AND ADMINTSTRATIVFi..SERVICE$,ACT
Six years ago the confused state of legislation dealing with Govern-
ment property management was described as follows:
Efficient executive management of the. Government's great and growing invest-
ment in equipment, materials, and supplies, and the control of the Congress over
the use and disposition of such property are seriously handicapped by the lack of
comprehensive legislation. The essential 'foundation of management standards
in determining what and what quantities should he bought, and.similar standards
to govern utilization are conspicuous by their absence. Although the accrual of
surpluses is an inevitable feature of the active operations of Government, the
determination and release of such surpluses is entirely within the discretion of
thousands of widely scattered executives * * * Even under normal con-
ditions the results of such a situation are apparent in excessive stocks, unneces-
sary duplication, lack of maximum. utilization, unauthorized augmentation of
congressional appropriations by free ;transfer of cash equivalents from one to
another, heavy direct losses to"the Treasury, and waste in other forms. (1943
report of the House Committee on Expenditures in the Executive Departments.
on 11. R. 2795, quoted with approval in 1944 in the. report of this committee on,
the same bill.)
Leading off its report on an Office of General Services, the Com-
mission on Organization of the Executive Branch of the. Government
has this to say on the subject:
Three major internal activities of`the Federal Government 'now suffer from a
lack of central direction. These are supply, records management, and the opera
tion and maintenance of public buildings. These activities are carried.on .in
several places within the executive branch with varying degrees of adequacy.
While, as a general rule, centralized direction is lacking, there are some instances
of the exact reverse of this situation in which operations are centrally controlled
down to the smallest detail.
To the .general public, the "housekeeping" activities listed above are little
known, butt,unless they are properly administered, the executive branch cannot be
effectively managed.
rv
In the second part of the same report, relating to Federal supply
activities, the Commission starts by saying:
The Federal Government runs one of the greatest supply businesses in the world.
It is spending more than $6,000,000,000 a year for new material, supplies, and
equipment for the regular activities of the civilian and military agencies. In
addition, since 1941, the Federal Government has been engaged in enormous
purchases for export in connection with lend-lease and foreign-aid programs. It
makes huge purchases of strategic and critical materials from foreign sources, and
imports them for the national stock pile.
The Federal Government also has in storage, in the continental United States,
military and civilian inventories valued at $27,000,000,000. No one knows
accurately the total worth of Government personal property currently being
used, but its million or more motor vehicles, for example, have a value of at least
$2,000,000,000. The Government also pays out more than $1,000,000,000 yearly
for transportation of property, and $440,000,000 in salaries of the nearly 150,000'
employees working in supply operations.
Also we find grouped in the new General Services Administration,
as recommender by the Commission, the following:
(a) Bureau of Federal Supply of the Treasury Department (which presently
has limited over-all responsibility for the procurement of personal property, and
for the supply and utilization of such property, together with essential, coopera-
tive endeavors in the cataloging aspects of personal property) ; -
(b) National Archives Establishment (which now has limited responsibility ir.
records management field, principally concerned with the custody, maintenance,
and preservation of historical records) ;
(c) Federal Works Agency functions in their entirety (including its many serv-
ice characteristics). These service functions consist generally of the design and.
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7.
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
4 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
construction of public buildings, the disposal of surplus real property, the conduct
(in the Public Roads Administration) of the Federal-aid road program and the
provision of roads for other agencies, the custody and maintenance, on behalf of
the National Military Establishment, of plants and machine tools in the National
Industrial reserve, disaster relief, the administration of certain functions of the
Water-po.lut.ion-control program, etc. Management of the general services of the
Government cannot be conducted economically and efficiently unless these re-
sponsible units are brought under a common direction and control. Of special
note for inclusion in this are activities of the Federal Works Agency in providing
and managing most office and warehousing facilities for the Government. Every
study of the problem of storing, space, and records management has concluded
that these factorsgre interdependent;
(d) Transfer for liquidation of the affairs of War Assets Administration (which
under present law, would be liquidated on June 30, 1949, and its functions scat-
tered among several agencies);
(e) Certain contract settlement functions (which are now reposing in the
Treasury Department by Reorganization Plan No. 1 of 1947, would be transferred
to the General Services Administration).
To implement the foregoing, and with the recognition that this is a
relatively new field for the Government, the bill authorizes the Admin-
istrator to transfer, regroup, and distribute functions within the
Administration for most effective accomplishment of the purposes of
the act.
In conformity with recommendations of the Commission on Organ-
ization of the Executive Branch on uniform nomenclature (No. 21,
Rept. No. 1 on General Management), the committee has changed
the Public Buildings Administration to the Bureau of Public Buildings
and the Public Roads Administration to the Bureau of Public Roads.
The Commission, in its report on the Department of Commerce,
has also recommended that the Bureau of Public Roads be transferred
to that Department as an important component of the new alinement
of transportation services (Recommendation No. 7). The committee
has, however, withheld action on such transfer until some determina-
tion is made relative to the over-all program to be accepted by Con-
gress on the reorganization of the Department of Commerce and on
the proposed consolidation of transportation agencies.
Likewise, the bill also transfers the Bureau of Community Facilities
to the new General Services Administration. The Hoover Commis-
sion has recommended (Recommendation No. 4 on the Department
of the Interior) that community services be centralized in general !4~,
building construction services. In the bill, the President is given
authority to continue the Bureau of Community Facilities within the
new agency for such time as he may determine, -and the Congress
should consider this problem further in connection with related
reorganizations.
The bill provides, generally, for uniform policies and methods of
procurement, supply, and related functions. Yet, while fixing the
management responsibility, this legislation provides operating ma-
chinery flexible enough to the extent of coping with the needs for
specialized, service. It is felt that in this way great savings can be
achieved by the Government through the elimination of competition
among executive agencies for like articles in the same markets,
unnecessary purchasing, lack of quantity purchases, and other ineffi-
ciencies. In this respect, the Secretary of Defense is authorized,
unless the President otherwise directs, to exempt the National Military
Establishment from this centralizedprocurement grogram, when he
deems such exemption to be required in the interest of national
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384RO01000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
security. The purchase and disposal of farm products under programs
conducted by the Department of Agriculture for purposes of price
support or stabilization are exempted from central control.
It is well at this point to bear in mind that the term "excess prop-
erty" means any property under the control of any Federal agency
which is not required for its needs and the discharge of its responsi-
bilities, as determined by the heads thereof ; the term "surplus
property" means any excess property not required for the needs and
the discharge of the responsibilities of the Federal Government, as
determined by the Administrator.
Under the provisions of this act the maximum utilization of excess
property is the responsibility of the General Services Administrator;
he shall prescribe policies and methods_to effect this and make provi-
si for the expeditious transfer of excess property among the Federal
agencies. In keeping with this, the bill requires continuing surveil-
lance by every executive agency of the property under its control, and
sets up a uniform system for the identification and classification of
r~ property, and for the standardization of contract forms, specifications,
and procedures. It also further requires executive agencies to main-
tain reasonable inventory levels and to establish adequate inventory
controls. Losses in the past have been suffered by the Government
through the purchasing of new articles by one agency when serviceable
articles of the same type were available in the inventories of other
agencies and excess to their needs. This bill is designed to prevent
this circumstance from reoccurring. The keystone to reduce expendi-
tures in this regard and future economical operations in Government
is a sound and comprehensive cataloging system for use by all agencies.
To this end, acting under a joint, signed agreement, the civilian and
military agencies are establishing a uniform Federal supply catalog
system, designed to identify and classify personal property under the
control of Federal agencies. Because of the imperative need for such
cataloging, the committee believes that this cooperative civilian-mili-
tary program for the establishment of a supply cataloging system
should be pressed to completion with all possible speed. Further,
this legislation authorizes the Comptroller General to prescribe princi-
ples and standards for property accounting, based on the needs and
requirements of each agency. Also in this phase, the-.Comptroller
General is empowered to audit all types_ of property accounts and
transactions.
Again in line with recommendation of the Commission on Govern-
ment Organization, the bill provides a central system relating to traffic
management, transportation, and other public-utility services for the
use of executive agencies.
As most of the objectives of the Surplus Property Act of 1944, as
amended, have largely been attained, the bill, in harmony with exist-
ing law, dispenses with all priorities and preferences on personal prop-
erty. The committee believes, however, that, from time to time,
there will become surplus to the Government, books, equipment, or
other supplies, the sale of which would realize little monetary return
but which would be usable by and of great benefit to our schools and
colleges. The bill therefore authorizes the Administrator, in his dis-
cretion, to donate such surplus property for educational purposes
upon the recommendation of the Federal Security Administrator. The
committee believes that the authority vested in the Federal Security
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15: CIA-RDP57-00384R001000040011-7
6 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
Administrator is broad enough to authorize him to redelegate his
authority to some other person designated by him, and in the field of
education, for example, the appropriate designee would be the Com-
missioner of Education. This is believed in keeping with the best
management practices of clear-cut delineations of line and staff
authority and centralization of responsibility.
Surplus real property is in a different situation. That relating to
municipal airports, public parks, historic monuments, and for recrea-
tional purposes is set up as permanent legislation. As to all other
surplus real property the committee has retained existing priorities
and preferences with respect to the disposition of such surplus real
property only until 12 o'clock noon (eastern standard time) December
31, 1949.
Title III extends to the General Services Agency the principles of
the Armed Services Procurement Act of 1947, with appropriate modi-
fications principally designed to eliminate provisions applicable
primarily to the military. The Administrator of General Services
under certain circumstances is also permitted to delegate to any
other executive agency, not named in the Armed Services Procurement
Act, authority, under certain circumstances, to make purchases and
contracts pursuant to the provisions of title III. This title provides for
the modernization of procurement methods and procedures. It
clarifies and preserves the formal advertising method of procurement,
but at the same time, under proper control, authorizes negotiation in
certain classes of cases. This title (of a procedural and not of a sub-
stantive nature) is designed to cope with future as well as presently
existing situations, and to constitute a comprehensive code of procure-
ment methods and procedures.
The committee believes that title III is substantially in accord with
the recommendation made by the Commission on Organization of the
Executive Branch of the Government in its Report on the Organization
and Management of Federal Supply Activities, that legislation be
enacted to apply the principles of the Armed Services Procurement
Act of 1947 to buying by all agencies, this authority, however, to be
lodged in the President (recommendation No. 2 p. 40, of the Combined
Report on Office of General Services, and Supply Activities). Title
III is substantially in accord with the report unanimously adopted by
the Procurement Policy Board of the War Production Board in the
fall of 1945 and in accord with legislation drafted by a special commit-
tee of the Procurement Policy Board.
p. Under the administration of the Department of State, most of the
surplus property generated in foreign areas as a result of World War II
has either been sold or has been committed for sale. The remaining
small' inventory is widely dispersed and of specialized or technical
character; in most cases the cost of transportation back to this country
probably would exceed either the use value to the Government or the
gales return in the commercial market. Title IV of the bill deals with
this problem and provides that the agencies responsible for such prop-
erty shall dispose of it where located abroad, taking into consideration
the foreign policy of the United States. As a practical matter, this
means that the armed services will dispose of surplus property located
in foreign countries pursuant to policies established by the Secretary
Qf State.
Approved For Release, 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT .7
As previously stated, existing authority of the National Archives
Establishment with respect to records management is considerably
limited. The committee believes that even this limited authority
will, however, enable the Administrator of General Services to make
a beginning in this most important field. The Commission on Organi-
zation felt that this aspect of Government deserved extensive study,
devoting to it an entire task force report, and in appendix A (Task
Force Report on Records Management, January 1949) setting up a
proposed draft of a separate bill aimed at this special problem. In
light of this, Congress should, after appropriate study, enact new
and more comprehensive legislation for records management in keeping
with the recommendation of the Commission on Organization of the
Executive Branch of the Government.
The committee feels very strongly that the economies and increased
:efficiencies resulting directly from consolidation of agencies are and
should be only a beginning in the savings which will accrue to the
Federal Treasury under the bill. Many millions more can be and must
be pared from expenditures for property management through merger
,of common services and the resultant reduction of overhead and
elimination of duplicative actives. Efficient administration of well-
drawn programs, based on careful studies, can produce maximum
economies in Government. In the message of the President, dated
May 9, 1949, in discussing the analyses and recommendations for
reorganization of the executive branch, as urged by the Commission on
Organization, it was stated that legislation to achieve that end, repre-
sents "a challenge to the achievement of better Government based on
the fundamentals of sound organization and management." It is the
feeling of this committee that the bill, H. R. 4754, is a milestone on
the path of economical and more efficient governmental administra-
tion and service.
The bill commences with a short title styled the "Federal Property
and Administrative Services Act of 1949," following which is a table
of contents.
Section 2. Declaration of policy
This is very brief and states the intent of the Congress to provide
for the Government an economic and efficient system for (a) the
procurement and supply of personal property and nonpersonal services
and performance of related functions; Lthe utilization of available
property; (c) the disposal of surplus property; and (d) records manage-
ment. Other sections of the bill implement items (a), (b), and (c) by
consolidating the present scattered property functions and by providing
a new uniform charter for property management. Item (d) is imple-
mented only by the transfer of the National Archives Establishment
to the General Services Administration. Additional legislation will be
necessary to establish an effective system of records management. Such
a system, however, should be built in conjunction with the National
Archives Establishment, and should be administered in the General
Services Agency, so that this transfer is a logical first step toward its
creation.
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
8 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
Section 3. Definitions
Several definitions require special note. "Property" includes all
interests in property except the public domain and the major classes
of naval vessels. "Excess property" means any property under the
control of any Federal agency not required for its needs and respon-
sibilities as determined by the head thereof. "Surplus property"
means any property which has been declared excess by a particular
Federal agency and which, after a survey of the needs of other Federal
agencies, is determined by the Administrator of General Services no
longer to be required by the Federal Government as a whole.
Section 101. General Services Agency
(a) Establishment of General Services Administration. -This sub-
section provides for the establishment in the executive branch of the
Government of a new agency to be known as the General Services
Administration.
(b) Administrator of General Services. -This subsection provides
that the new agency shall be headed by a new officer of the Govern-
ment, entitled "Administrator of General Services," to be appointed,
after the enactment of this legislation, by the President by and with
the advice and consent of the Senate.
(c) Deputy Administrator. -This subsection provides for a Deputy
Administrator to be appointed by the Administrator. The Deputy
Administrator will perform such functions as the Administrator may
designate and be Acting Administrator during the absence or disa-
bility of the Administrator and (unless the President designates
another officer to serve as Administrator) in the event of a vacancy
in that office.
(d) Performance of functions pending first appointment. -This sub-
section provides that, pending the first appointment of an Adminis-
trator, the President may designate the Federal Works Administrator
last in office to perform temporarily the functions of the Administra.
tor of General Services.
Section 102. Transfer of the Bureau of Federal Supply and contract-
settlement functions to the General Services Administration
(a) Transfer of the Bureau of Federal Supply.-This subsection pro-
vides for transferring to the General Services Administration the
functions, records, and personnel of the Bureau of Federal Supply,
now in the Department of the Treasury, and for vesting in the Adminis-
trator of General Services the functions of Treasury personnel relating
to the Bureau of Federal Supply. The Bureau of Federal Supply
has been in the Department of the Treasury since 1933 and exercises
central procurement functions for the executive branch of the Govern-
ment. Its functions are not essentially related to the primary fiscal
and tax functions of the Department of the Treasury, so that the
Bureau may readily be severed from that Department without impair-
ment of the Department's efficiency. In the General Services
Administration the Bureau will supplement the property-service
functions of that agency and will facilitate more economical property
management in the Government. Functions of the Secretary of the
Treasury, referred to in clause (3), include all functions vested in
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 9
him by law but performed by the Bureau for him under appropriate
delegation: For example, stock-piling under the Strategic and Critical
Materials Stock Piling Act (60 Stat. 596) and functions of over-all
supervision and review of the performance of Bureau functions
incidental to his position as head of the Department.
(b) Transfer of contract-settlement functions.-This subsection pro-
vides for transfer to the Administrator of General Services of the
functions, transferred to the Secretary of the Treasury a little over
2 years ago, of the Director of Contract Settlement and the Office of
Contract Settlement created by the Contract Settlement Act of 1944
(58 Stat. 649; 41 U. S. C. 101-125). These functions relate to the
establishment of uniform policies and procedures for the settlement of
terminated war contracts by Government contracting agencies and,
because of the almost complete liquidation of the contract-termination
program, are now routine and insignificant. Such little work as has
been recently required in connection with this program has been
carried on in the Treasury primarily by the Bureau of Federal Supply.
It would be in the interest of good management to have this Bureau
continue to wind up that program. This subsection likewise transfers
from the Treasury to the General Services Administration the Appeal
Board and the Contract Settlement Advisory Board also created by
the Contract Settlement Act of 1944. This transfer is for housekeeping
purposes only. The Secretary of the Treasury does not, nor will the
Administrator of General Services, review decisions of the Appeal
Board which will perform its functions under conditions and limita-
tions prescribed by law.
(c) Functions retained in the Treasury.-This subsection permits the
Bureau of the Budget to retain in the Treasury Department certain
minor functions of the Bureau of Federal Supply, for example, as to
printing, which properly pertain to the Treasury Department.
Section 103. Transfer of affairs of the Federal Works Agency
(a) Transfer of constituents and functions of the Federal Works
Agency. -This subsection transfers to the General Services Adminis-
tration the functions, records, and personnel of (1) the Public Build-
ings Administration (to be known as the Bureau of Public Buildings)
and (2) the Public Roads Administration (to be known as the Bureau
of Public Roads), and all other functions, records, and personnel of (3)
the Federal Works Agency. The functions of the Federal Works Ad-
ministrator, the Commissioner of Public Buildings, and the Commis-
sioner of Public Roads are transferred to the Administrator of General
Services.
(b) Abolition of Federal Works Agency. -This subsection abolishes
the Federal Works Agency and the offices of Federal Works Admin-
istrator and Assistant Federal Works Administrator.
(c) Continuation of Bureau of Community Facilities. -This subsec-
tion provides that the President may continue the Bureau of Com-
munity Facilities of the Federal Works Agency as a constituent of the
General Services Administration for such time as he may determine.
Section 10/. Records management: Transfer of the National Archives
(a) Transfer of the National Archives establishment. -This subsec-
tion transfers to the General Services Administration the functions,
records, and personnel of the National. Archives establishment, and
to the Administrator of General Services the functions of the Archivist
H. Rept. G70, 81-1-2
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
10 FEDERAL PROPERTY AND AD:VIINISTRATIVE SERVICES ACT
of the United States (except his functions with respect to the disposal
of records and his membership in the bodies specified in subsection
(b)), and of the Director of the Division of the Federal Register. The
Archivist is to be appointed by the Administrator.
(b) Transfer of National Archives Council and other bodies.-This
subsection, transfers to the General Services Administration the
National Archives Council, the National Historical Publications
Committee, the National Archives Trust Fund Board, the Board of
Trustees of the Franklin D. Roosevelt Memorial Library, and the
Administration Committee of the Federal Register, and provides
that the authority of the Administrator of General Services shall not
extend to those bodies or their functions.
Section 105. Transfer for liquidation of the affairs of the War Assets
Administration
This section provides for the liquidation of the affairs of the War
Assets Administration as an agency and transfers its remaining func-
tions, and its records, property, personnel, obligations, and commit-
ments to the General Services Administration. It also permits the
retention of certain special assistants and other experts now holding
appointments without regard. to the provisions of the civil-service
laws and the Classification Act of 1923, as amended, and their appoint-
ment to similar positions.
The retention in employment and the status of other personnel
transferred from War Assets Administration to the General Services
Administration will be governed by applicable provisions of existing
law.
Section 106. Redistribution of functions
Under this section the Administrator of General Services, in order
effectively to perform the functions vested in him under the terms of
this bill, is authorized to regroup and distribute within the Administra-
tion functions transferred to or vested in him by the bill, to make
appropriate transfers of funds in connection therewith, and to report
such transfers of funds to the Director of the Bureau of the Budget!
Such reporting is necessary in order to assure that funds are ex-
pended for the purpose for which they were appropriated
but it is not
,
intended to give the Director of the Bureau of the Budget veto power
over the Administrator so far as the organization of the Administration
is concerned.
Section 107. Transfer of funds
This section transfers to the General Services Administration for
activities under the bill the appropriations, allocations, or other funds
available to the Department of the Treasury, the War Assets Adminis-
tration, the Federal Works Agency, and the National Archives
establishment for the functions transferred.
Section 108. Status of transferred employees
This section provides that, subject to other provisions of this title
relating to personnel, employees transferred shall be deemed to be
employees of the General Services Administration so as not to require
reappointment.
I Addendum.
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 11
Section 109, Compensation of Administrator .and other officials
This section provides that, pending the effective date of other
statutes establishing their salaries, the President shall fix a suitable
rate of compensation for the Administrator and Deputy Administrator
of General Services, the Commissioners of Federal Supply, Public
Buildings, Public Roads, and the Archivist, commensurate with the
responsibilities and duties of these respective offices.
TITLE II, PROPERTY MANAGEMENT
This deals with the subject of property management within the
United States.
Section 201. Procurement, warehousing and related activities
(a) Centralized control, Thit._.subsection authorizes the Adminis-
trator of General Services, where it is advantageous to the Govern-
iient; to'reguTte the policies and methods of executive agencies with
resT't'to the procurement and supply of personal property and non-
persmaY'services, including related functions such as contracting,
inspection, storage, issue, property identification and classification,
transportation and traffic management, management of public-utility
services, and repairing and converting. The Administrator may him-
self procure such personal property and nonpersonal services and per-
form such related functions, may consolidate and operate or arrange
for the operation of suitable warehouses, repair shops, and similar
facilities, and may for the use of executive agencies represent such
agencies in negotiations with carriers and other public utilities, and
in proceedings before regulatory bodies involving carriers and other
public utilities. The provisions with respect to traffic management,
management of public-utility services, and representation are not
intended to abrogate any authority of the Department of Justice.
This authority over procurement matters vested in the Administra-
tor is a restatement of authority concurrently exercised by the Bu-
reau of Federal Supply, except that the control over the purchases of
wholly owned Government corporations is new, and that the rela-
tionship with the National Military Establishment is somewhat
changed. The Secr_Qtary of Defense is authorized, unless the Presi-
'`r) dent shall otherwise direct, to exclude procurement for the National
Military Establishment from control of the Administrator where the
Secretary deems exclusion in the best interest of national' security.
Combat equipment and other items of peculiar importance to the
armed forces, could-- thus readily be excluded by the Secretary of
pefense. At the same time, the Administrator would be in a better
position to serve the armed forces more fully in meeting their other
supply requirements, and he can appeal to the President if he thinks
the Secretary of Defense has wrongly excluded him from any field.
(b) Services to the legislative and judicial branches, and mixed-
ownership corporations.-This subsection provides that the Adminis-
trator shall, as far as practicable, upon the request of any agency in
the legislative or judicial branches of the Government, or of any
mixed-ownership Government corporation, or of the District of Co-
lumbia, purchase, warehouse, and distribute personal property and
nonpersonal services to meet their needs. Government economy will
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
12 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
be furthered by allowing these organizations, supported in whole or
in part by the Federal Government, to take advantage of savings in
procuring supplies which the Administrator can provide through the
operation of a central procurement system.
It is believed that, with the exceptions provided in the bill, the
system of centralized procurement, strengthened by the statutory
support which the bill provides, will prove its efficiency and economy
in the years to come. This does not mean that every item must be
procured by a central agency, but only that such an agency must be
responsible for determining how every item shall be procured, and for
presetibing the manner of procurement which is best under the
circumstances.
(c) Application of trade-in allowances.-This subsection authorizes
executive agencies to exchange or sell personal property and apply the
trade-in allowancce or proceed=., of sale in whole or part payment for
property acquired. This is an expansion of authority given under
a number of existing statutes to specific agencies or with respect to
specific types of property. While these statutes are repealed by
section 502 (a) (8) to (28), the language here is intended to be suffi-
ciently broad to preserve all such existing authority. For example,
the Department of Agriculture may continue, subject, of course, to
any regulations of the Administrator, to exchange publications without
monetary appraisal or detailed listing as it has done in the past tinder
that portion of the act of March 4, 1915 (5 U. S. C. 548), which is
repealed by section 502 (a) (14).
(d) Limitation on open-market purchases and sales.-This subsection
amends section 3709 of the Revised Statutes, as amended, by raising
from $100 to $500 the amount or value to which an agency is restricted
in consummating a so-called open-market purchase or sale; i. e.,
without advertising for bids.
(e) Elimination of surcharge., This subsection would eliminate the
present surcharge levied on the price of commodities purchased with
money of the general supply fund, through which the Bureau of
Federal Supply provides supplies and services to the executive agen-
cies. It is in accordance with the recommendation made by the Com-
mission on Organization of the Executive Branch of the Government
in its report on the Organization and Management of Federal Supply
Activities (.Recommendation No. 14, p. 49, of the Combined Report on
Office of General Services, and Supply Activities). It is intended
that the prices charged shall be fixed by the Administrator in amounts
estimated to represent two items of cost to the Administrator; namely,
the purchase price of the supplies or services and transportation thereof.
The Administrator will be able to use a fixed-price system or such other
system as may be suitable. Administrative expenses in connection
with such purchases will be charged to funds to be appropriated in the
usual manner. With respect to items such as breakage, shrinkage, and
other inventory loss, it is intended that losses in the general supply
fund on account of such items will be covered by appropriations.
Section 202. Property utilization
his 'fict`ion c` ea s with the jjiost important phase of property man-
agement, which is continuing use y t e government of the Govern-
meAt's property.
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2p0(~8/~Iy7~~~~0k41000QAd0011-7
A T
FEDERAL PROPER!!
(a) Over-all direction of Administrator of General Services.-This
subsection fixes upon the Administrator of General Services the over-
all responsibility to `prescribe the policies and methods to promote
the greatest use in the entire executive. establishment of property
which is excess to the needs of one particular establishment and also
to provide for the transfer of such property among Federal agencies.
(b) Responsibility of executive agencies to surrey property.-This
subsection imposes upon each executive agency the responsibility,
in the first instance, (1) to maintain adequate inventory controls and
accountability systems for its property (see also sec. 205 (b)), (2) to
survey its property continuously to determine which is excess to its
needs and promptly report excess property to the Administrator,
(3) to care for such excess property, and (4) transfer or dispose of
such property in accordance with authority delegated and regula-
tions prescribed by the Administrator.
(c) Responsibility of executive agencies to use property.-This sub-
section similarly imposes upon each executive agency the respon-
sibility in the first instance, to reassign property among activities
within such agency, to transfer its excess property to other agencies,
and to obtain for its use property which is excess to the needs of
other agencies.
(d) Transfer of property within National Military Establishment.-
This subsection permits the free transfer of excess property among
the departments of the National Military Establishment under exist-
ing provisions of law and procedures defined by the Secretary of
Defense.
(e) Terms for transfer of excess property.-This subsection generally
requires that transfers of oxcess property between-Federal agencies
shall be at the fair value thereof as determined by the Administrator
of General Services. Exceptions are made in the case of a transfer for
general distribution among Federal agencies or for disposal as surplus
property or where such transfer without reimbursement is otherwise
authorized by recent legislations. "Transfers for redistribution to
other Federal agencies" refers to instances where property is turned
over to the Bureau of Federal Supply for redistribution rather than
transferred direct for the use of another agency. When the redistri-
bution occurs the transfer should be at fair value.
(f) Transfer of property within an agency.-Under this subsection
transfers of property among activities financed by different appropria-
tions to the same agency must be reported to the Director of the
Bureau of the Budget, and, in turn, reported to the Congress.
(g) Assignment of office and warehouse space.-This subsection clari-
fies and strengthens existing law by authorizing the Administrator of
General Services to assign and reassign space in excess real property
to any Federal agency for office, storage, or related facilities. He may
obtain reimbursement for such assignment in the absence of an appro-
priation available to him therefor. It is expected that operations
under this subsection can and should materially lessen the present
leasing of space for Government use in private office buildings.
(h) Abandonment or donation of property.-This subsection author-
izes the abandonnient, destruction, or donation to public bodies of
property having no commercial value, or of which the estimated cost
of continued care and handling would exceed the estimated proceeds
from its sale.
Approved For Release 2001/08/15 : CIA-RDP57-00384RO01000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
14 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
Section 203. Disposal of surplus property.
(a) Responsibility of General Services Administrator.-This subsec-
tion provides that the General Services Administrator shall have
supervision and direction over the disposition of property surplus to
the needs of the entire Government.
(b) Care and handling of surplus property.-This subsection provides
that the care and handling of surplus property pending its disposition,
and the disposal of surplus property, may be performed by the General
Services Administration or any executive agency designated by the
Administrator. An agency other than the one in possession, however,
cannot be designated to perform care and handling or disposal without
its consent.
(c) Terms of disposal.-This subsection provides that any agency
disposing of surplus property may do so by sale, exchange, lease,
permit, or transfer, for cash, credit, or other property, with or without
warranty, and may execute such documents for the transfer of the
property as may be necessary.
(d) Title of transferees.-This subsection is designed to protect the
interest of bona fide grantees or transferees. It makes instruments
purporting to transfer title or other interest in surplus property under
this act, which are executed by an executive agency, conclusive
evidence of compliance with the provisions of the act in the absence
of notice of defects.
(e) Advertising for bids.-This subsection provides that surplus
property disposals may be made without regard to provisions of
existing law for advertising, unless otherwise determined by the
Administrator, until December 31, 1949. Thereafter, advertising
and competitive bids will be required in disposing of such amount of
surplus property as is not sold by that date.
(f) Adjustments for contractor inventories. -This subsection provides
that contractors or subcontractors with executive agencies may be
authorized to retain or dispose of their contractor inventories.
(g) Consultation with Secretary of Agriculture. -This subsection
requires the Administrator to consult with the Secretary of Agriculture
in formulating policies for the disposal of surplus agricultural com-
modities, surplus food processed from agricultural commodities, and
surplus cotton and woolen goods, and further requires that such
policies shall be formulated to prevent surplus agricultural commodi-
ties or surplus food products from being dumped on the market in
such manner as to disrupt the market prices for agricultural com-
modities.
(h) Disposal of agricultural commodities.-This subsection requires
the Administrator to transfer to the Department of Agriculture
without charge any surplus agricultural commodities, foods, or cotton
or woolen goods, whenever the Secretary determines it necessary in
carrying out his responsibilities with respect to price support or
stabilization, and further requires that the receipts from disposals
by the Department of Agriculture shall be deposited pursuant to
authority available to the Secretary of Agriculture and the net pro-
ceeds of sales of property so transferred shall be credited pursuant to
the provisions relating to proceeds in section 105 (b). It also pro-
vides that, except when sold for export, surplus farm commodities
so transferred may not be sold in quantities in excess of or at prices
Aft
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 15
less than those relating to such commodities when sold by the Com-
modity Credit Corporation.
(i) Disposal of vessels for merchant use.-This subsection establishes
the United States Maritime Commission as the statutory disposal
agency for surplus vessels of 1,500 gross tons or more, which it deter-
mines to be merchant vessels or capable of conversion to merchant use.
Such vessels are to be disposed of in accordance with the Merchant
Marine Act of 1936, as amended, and other laws relating to the sale
of such vessels.
(j) Donations for educational purposes.-This subsection authorizes
the Administrator of General Services, in his discretion, to donate
surplus personal property usable and necessary for educational pur-
poses as determined by the Federal Security Administrator, who shall
allocate such property on the basis of needs and utilization for transfer
by the Administrator of General Services, either direct or through
State departments of education, to tax-supported and nonprofit
school systems, schools, colleges, and universities. Provision is also
NW made for allocation by the Secretary of Defense, for transfer by the
Administrator to educational activities of special interest to the armed
services, such as maritime academies or military or naval preparatory
schools, of surplus property of the National Military Establishment
which the Secretary determines to be usable and necessary for such
activities. It is expected that the Federal Security Administrator will
delegate to the United States Commissioner of Education and Surgeon
General of the United States, as the case may be, authority to make
determinations and allocations under his general supervision, and
that the Secretary of Defense will similarly delegate to an appropriate
official his authority trader this subsection.
(k) Conditions of transfer of surplus property.-Under the Surplus
Property Act of 1944, as amended, surplus property has been trans-
ferred to States and political subdivisions thereof, and to tax-supported
or nonprofit educational and medical institutions for specified uses,
subject to various conditions and reservations. This section would
permit the head of the interested Government agency, subject to
disapproval by the Administrator of General Services, to enforce
compliance with such conditions or reservations, to reform or correct
the instruments of transfer by which such conditions or reservations
are imposed, and to grant releases (including conveyances by quit-
claim deed, in the case of real estate) from such conditions and
reservations.. Such releases are to be conditioned upon findings that
the property no longer serves the purpose for which the transfer was
made, or that release will not prevent accomplishment of the purpose
of such transfer, and upon such other conditions as may be necessary
to protect or advance the interests of the United States.
(1) Abandoned property.-This subsection authorizes the Adminis-
trator to take possession of abandoned and other unclaimed property
on Government premises, 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 will have 3 years from
the date of vesting of title in the United States to file claim and if
such claim is found proper, are to be paid the proceeds realized from
the disposition of the property, or, if the property is used or transferred,
its fair value as of the time title vested in the United States as deter-
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
16 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
mined by the Administrator, less in either case the costs incident to
the care and handling of such property as determined by the Adminis-
trator. It is contemplated that if such property is utilized or trans-
ferred its fair value will be paid by the receiving agency in line with
the provisions of section 202 (e) and that such amounts and proceeds
realized from dispositions will be covered into the Treasury as mis-
cellaneous receipts pursuant to section 204 (a). Under other authority
in the bill appropriations may be made for payment of any claims
presented by the rightful owners.
Section 201. Proceeds from transfer or disposition of property
(a) Deposit of proceeds into miscellaneous receipts.-This subsection
requires all proceeds from the transfer of excess property to a Federal
agency or from the sale, lease, or other disposition of surplus property
to be covered into the Treasury as miscellaneous receipts with the
exceptions noted in subsections (b), (c), and (d).
(b) Crediting of reimbursable funds.-This subsection provides that
in cases where the property was acquired by funds either not appro-
priated from the general fund of the Treasury, or appropriated there-
from and by law reimbursable from assessments, taxes, or other
revenues, the net proceeds of the disposition or transfer of such prop-
erty shall be credited to the reimbursable fund or appropriation or
paid to the Federal agency declaring such property excess. It further
provides that the proceeds shall be credited to miscellaneous receipts
if the agency declaring the property excess shall deem it uneconomical
or impracticable to ascertain the amount of net proceeds.
(c) Refunds to purchasers.--This subsection provides that Federal
agencies disposing of surplus property may deposit in a special
account with the Treasury whatever amounts they deem necessary
to permit refunds to purchasers when any disposition is rescinded, or
for breaches of warranty, and to withdraw the amounts so to be
refunded or paid. Funds received from any specific contract are not
earmarked in the special deposit account, but are commingled with
all other receipts from sales by the Office of the Foreign Liquidation
Commissioner. The language which provides for withdrawal of
"amounts, so to be refunded or paid, without regard to the origin of
the funds withdrawn" permits refunds to be made from any money
remaining in the special deposit account whether of not the money
collected under the particular contract remains in the special deposit
account or has been transferred to general fund revenues as miscel-
laneous receipts.
(d) Proceeds from contractors' sales.-This subsection recognizes that
the contractual provisions authorizing the proceeds of sales or prop-
erty to be credited to price or cost of the work covered by the con-
tract, are controlling and are not subject to the requirements of the
act relating to covering proceeds into the Treasury as miscellaneous
receipts.
(e) Preservation of security.-This subsection authorizes the Admin-
istrator to preserve and manage any mortgage, lien, or other interest
retained as security in the disposition of surplus property, and author-
izes him to enforce and settle the rights of the Government with respect
thereto..
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
Section 205. Policies, regulations, and delegations
(a) Presidential policies.-By reason of the impact of this legislation
upon all agencies in the executive establishment, this subsection
authorizes the President, if he deems it advisable, to prescribe over-all
po i des an directives which shall govern the Administrator of General
Services end executive agencies in operations under this act.
(b) Property accounting systems.-This subsection re urres the
Comptroller General, after considering the needs an requirements of
6xecu ive agencibss, to prescribe principles and standards of accounting
for property, to cooperate with the Administrator of General Services
and the executive agencies in developing property accounting systems,
to approve satisfactory systems, to examine agency systems to de-
termine the extent of compliance with'-principles, standards, and,
approved systems, and to report to the Congress cases of failure to
comply therewith or adequately to account for property.
This is more flexible and vests more authority in the operating
agencies than the recent Independent Offices Appropriations Acts,
`'`-'f which prohibit the several agencies there named from installing or
maintaining any property accounting system not prescribed or ap-
proved by the Comptroller General. The committee urges the greatest
cooperation between the Comptroller General and other agencies in
order that operating needs and costs may be fully considered. This
section applies to all executive departments and agencies, with the
exception, as provided in section 502 (c), of corporations and agencies
subject to the Government Corporation Control Act.
(c) Regulations of the Administrator.-This subsection requires the
Administrator to prescribe regulations for the effectuation of his
functions under the act, and also requires the head of each executive
agency to issue such orders and directives as are necessary to carry
out such regulations.
(d) Delegations of authority.-Under this subsection the Adminis-
trator may redelegate his authority, excepting, however, the authority
to issue policy regulations, the authority to make reorganizations
within the General Services Administration, and as otherwise pro-
vided in the act (see sec. 307 (b)).
(e) Designation of other agencies.-So as to provide the greatest
use of existing personnel and facilities within established agencies,
"~/ this subsection authorizes the Administrator to designate other execu-
tive agencies to perform various procurement, utilization, or disposal
functions with the proviso that any designation or assignment of
functions or delegation of authority shall be made only with the con-
sent of the agency concerned or upon direction of the President.
This proviso would not apply to the authority of the Administrator
to prescribe regulations and the duty of agency heads to implement
them under subsection (c).
(f) Transfer of personnel and funds.-When any designation is
made under subsection (d) the Administrator may, under this sub-
section, transfer funds and personnel to the affected executive agency-
(g) Advisory committees.-This subsection authorizes the Adminis-
trator to establish advisory committees to advise with him in carrying-
out his functions. Experience has demonstrated the value of such
committees to Government officers where Government programs
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
18 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
affect closely business and industry. Specific statutory authoriza-
tion is necessary because of the prohibitions against unauthorized
boards and commissions in title 31, United. States Code, section 673,
volume 35, Statutes at Large, page 1027. Compare also title 5,
United States Code, section 83, volume 37, Statutes at Large, page
124, and title 31, United States Code, section 551, volume 49, Statutes
at Large, page 19. Because of the better control over the membership
and activities of these committees which is possible when they are
established pursuant to statute, it would be advisable to provide
specifically for such committees even apart from these laws. It is
expected by this committee that membership on these bodies will
be drawn, as may be appropriate, from industry, labor, and the general
public.
(h) Consultation with, other agencies.-This subsection makes it
mandatory for the Administrator to advise and consult with affected
Federal agencies.
Section 206. Surveys and standardization
(a) Surveys, supply catalog, and contract forms.-This subsection
authorizes the Administrator to survey Government property and
property management practices, to cooperate with executive agencies
in the establishment of reasonable inventory levels and report exces-
sive stocking to the Congress and the Budget Bureau, to establish
and maintain a uniform Federal supply catalog system, and to pre-
scribe standardized purchase and contract forms, procedures, and
specifications. Making surveys, requiring reports concerning Govern-
ment 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. The Administrator's reports
on excessive stocking will enable the Appropriations Committees and
Budget Bureau examiners to make suitable reductions in appropria-
tions and estimates. The authority to standardize Government pur-
chase 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 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. The committee ex-
pects that the Administrator will receive the full cooperation of execu-
tive agencies in connection with the development and preparation of
standardized forms and standard purchase specifications. Existing
control over the standardization of the Government construction con-
tract forms and leases is continued in effect by provision in section
502 (b).
A uniform Federal supply catalog system, which identifies and
classifies personal property under the control of Federal agencies, is
essential for a well-managed 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 designa-
tions, swelling inventories to needless size. This cannot be avoided
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R00100004 011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 19
until each item is described, classified, and given a number for identifi-
cation, so that duplications can be spotted at once. The disposal of
surplus Government personal property will thus likewise be speeded.
Provision is made for coordinating catalog activities with those of
the National Military Establishment.
This subsection makes it clear that the National Military Estab-
lisliment and the Bureau of Federal Supply will continue to cooperate
toward the development of a Federal catalog system, as requested
by the President, in accordance with the agreement (appendix A)
signed by them. It is the consensus of the committee that the project
should be pressed to completion with all possible speed.
(b) Catalog and specifications mandatory.-Due to the savings re-
sulting from common use of the uniform supply catalog system and of
standard purchase specifications, this subsection requires Federal
agencies to use them, when prescribed by the Administrator, except
as he shall otherwise provide.
(c) Audit of property accounts.-This subsection requires the General
` 000 Accounting Office to audit all types of property accounts and trans-
actions, 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 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.
Section 207. Applicability of antitrust laws
This section requires any executive agency in beginning negotiations
for the disposal of any plant or other property costing $1,000,000 or
more to seek advice of the Attorney General, and it shall be the duty
of the Attorney General to advise the executive agency whether the
proposed disposition of the property would tend to create or maintain
a situation inconsistent with the antitrust laws. The executive agency
must assist the Attorney General by furnishing him any requisite
information it may possess essential to the Attorney General's
determination. This section also provides that nothing in the act
shall modify or limit the applicability of the antitrust laws to persons
who acquire property under the provisions of the act.
In one respect the section is broader than a similar provision in the
%w~ Surplus Property Act of 1944. It requires a determination by the
Attorney General as to whether the proposed disposal would tend to
create or maintain a situation. inconsistent with the antitrust laws,
while under existing law the determination is whether the proposed
disposition will violate the antitrust laws.
Section 208. Employment of personnel
(a) Civil-service laws.-Employment of personnel is required by
this subsection to be subject to the civil-service and classification laws.
(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.
(c) Officers of other agencies.-The principal purpose of this sub-
section is to authorize the Administrator to utilize commissioned
officers in the armed services with the consent of the head of the
agency concerned.
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
20 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
Section 209. Civil remedies and penalties
- (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 false, fraudulent, or fictitious
activities or conceal or misrepresent material facts, or act with intent
to defraud the United States, or who enter into an agreement or con-
spiracy, or cause other persons to do any of the foregoing. The
United States is given the option of selecting among three different
measures of damages-
1. Any person engaged in such activities can be sued for the
sum of $2,000 for each such act, plus twice the amount of the
damage sustained by the United States, plus the cost of suit.
2. The United States may recover from such person the amount
of consideration paid by it to such person, or twice the amount
of consideration which such person agreed to give the United
States.
3. The United States may keep the property acquired by rea-
son of the above-described fraud, plus the consideration given to
it for that property.
Section 210. Reports to Congress
This section requires the Administrator to submit to Congress in
January of each year, and at such other times as he may deem it de-
sirable, a report regarding the administration of his functions under
the act, together with any recommendations for amendments which
he may deem appropriate and a citation of laws becoming obsolete by
reason of the passage or operation of the act.
TITLE III. PROCUREMENT PROCEDURE
This title follows. in structure, and is identical in language with,
the Armed Services Procurement Act, with a few appropriate changes
and omissions.
Section 301. Declaration of purpose
This section states that the purpose of title III is to facilitate the
procurement of supplies and services.
Section 802. Application and procurement methods
(a) This subsection makes the provisions of title III applicable to
purchases and contracts for supplies or services made by the General
Services Administration either for its own use or otherwise, including
centralized procurement. By delegation the Administrator may
authorize any other civilian executive agency to use the procedure set
forth in title III when such agency is designated to perform a central
procurement function. In addition, authority to use the procedures
set forth in title III may be delegated by the Administrator to another
civilian executive agency in other cases where the Administrator
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R0010000440011-7
'FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 21
determines that such delegation is advantageous to the Government
in terms of economy, efficiency, or national security. It is required
that the Administrator's determination in such other cases set forth
the circumstances upon which the determination is based. The
terms "economy" and "efficiency" will be broad enough to cover
cases where authority is delegated to negotiate contracts under 302
(c) (5) and 302 (c) (10) of this title. This title does not confer upon
any civilian executive agency any vested right to receive such delega-
tion. It is expected that such power of delegation will not be exercised
indiscriminately but rather will be used with care and discretion. It
is also expected that the Administrator will make periodic reviews
to determine whether the authority so delegated has been properly
used, and that he will either take such action as may be necessary
to correct any misuse or will withdraw the delegation. After the
Administrator has made such delegation he shall give notice thereof
to the General Accounting Office.
(b) This subsection states the policy that a fair proportion of the
total purchases and contracts shall be placed with small business
concerns and further provides that notice of intent to negotiate shall
be published in certain cases.
(c) Initially, this subsection reaffirms the basic principle that pur-
chases and contracts shall be made by advertising. Negotiation is
made permissible in certain excepted cases, however, to provide
flexibility in Government procurement.
(1) This paragraph would permit automatic and immediate transi-
tion from more rigid peacetime advertising procedures to a completely
flexible system if the President or the Congress declares the existence
of a national emergency.
(2) This provision is an adaptation of a portion of section 3709 of
the Revised Statutes as amended by section 9 (a) of the act of August
2, 1946 (60 Stat. 809; 41 U. S. C. 5). -Whenever urgency requires an
immediate purchase this exception would be available irrespective
of whether the emergency could or should have been foreseen.
(3) This paragraph extends to the General Services Administration
the power to negotiate if the aggregate amount involved does not
exceed $1,000. However, no delegation of such authority may be
made to other executive agencies under this paragraph for purchases
%W or contracts for supplies or services in excess of $500 unless such
purchasing or contracting is for centralized procurement.
(4) This provision permitting negotiation for personal or profes-
sional services is an adaptation of the exception from advertising pro-
vided by section 3709 of the Revised Statutes, as amended, herein-
above referred to.
(5) This paragraph would permit negotiation of contracts for tech-
nical assistance, expert study, and the application of specialized knowl-
edge to be performed by any university, college, or other educational
institution. This would cover matters which might not clearly qualify
as experimental, developmental, or research work under paragraph
(10) of this section.
(6) Under this paragraph if supplies or services are to be procured
and used outside the limits of the United States and its possessions the
contracts or purchases may be negotiated. In such cases it is fre-
quently impracticable or uneconomical to advertise.
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
22 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
(7) Due to the technical nature, special characteristics, and differ-
ing qualities of medicines and medical supplies it is sometimes ex-
tremely difficult if not impossible to describe adequately in detailed
specifications the exact characteristics of qualities needed. In such
cases the need for negotiation is clear.
(8) Where supplies are purchased for authorized resale, the pur-
chasing agency must accommodate the brand preference or the quality
preference of the organization requesting the purchase. This para-
graph therefore provides authority to negotiate such purchases.
(9) This paragraph provides for negotiation where it is impracticable
to secure competition and places upon the agency concerned the max-
imum responsibility for decisions as to when it is impracticable. It is
intended that this paragraph should be construed liberally.
(10) The very nature of a research and development contract does
not ordinarily lend itself to formal advertising. This paragraph there-
fore provides that contracts for experimental, developmental, or re-
search work or for the manufacture or furnishing of supplies for ex-
perimentation, development, research, or test may be negotiated and
provides also for periodic reports to the Congress of action taken under
this paragraph.
(11) It is provided that in cases where the purchase or contract
should not be publicly disclosed negotiation may be employed. In
such cases public disclosure through advertising would clearly be
adverse to the interests of the Government.
(12) This paragraph permits negotiation of contracts for technical
equipment in order to assure standardization of equipment and inter-
changeability of parts when such standardization and interchangea-
bility is necessary in the public interest. It is intended that this
authority should be used in special situations or in particular localities
and such provision has been therefore added to the language as it
appears in section 2 (c) (13) of the Armed Services Procurement Act
of 1947. The paragraph would protect in every way possible the
principles of competition and antimonopoly consistent with the occa-
sional need for such standardization, and section 307 (b) of this title
provides that the agency head may not delegate his responsibility for
making any of the determinations required under this paragraph.
(13) Permits negotiation for supplies or services when it is deter-
mined that bid prices after advertising are not reasonable either as to
all or some part of the requirements or have not been independently
arrived at in open competition. It is designed to cope with cases in-
eluding those where all bids received are too high, although not actually
identical or apparently collusive. The committee believes that this
paragraph will be most useful to break collusive bidding, follow-the-
leader pricing, rotated low bids, identical bids requiring drawing of
lots, uniform estimating systems, refusal to classify the Government
as other than a retail buyer regardless of the quantity purchased, and
similar other practices. Notification of the intention to negotiate
after such advertising and reasonable opportunity to negotiate must
be given to each responsible bidder and also the negotiated price must
be the lowest negotiated price offered by any responsible supplier.
This paragraph is a modification of paragraph. 2 (c) (15) of the Armed
Services Procurement Act of 1947. The modification will remove a
restriction which in cases such as sudden upward market fluctuations
might make it impossible to secure the needed supplies.
Approved For Release 2001/08/15: CIA-RDP57-00384R001000040011-7
 Approved ,f r I 4 1 1/W1&~,RPr Q 4 O 9OO4)11-7
(14) This provision would preserve the authority to negotiate
contracts conferred by other permanent legislation, for example, the
Strategic and Critical Materials Stock Piling Act (60 Stat. 596;
50 U. S. C. 98-98h). This paragraph also has the effect of permitting
negotiation under any relevant law which may be subsequently
enacted whether said law is general or special legislation.
(d) The immediate furnishing of evidence of possible violations of
the antitrust laws to the Department of Justice as required by this
subsection will facilitate appropriate action where violations exist and
will have a valuable moral effect on bidders. Compliance with this
paragraph is not to be construed, however, as a condition precedent
before exercise of the authority conferred by this title.
(e) For clarity this subsection provides that section 302 does not
authorize or change the existing requirements for authorization for
the erection or repair of buildings, roads, sidewalks, or similar items.
Section 303. Advertising requirements
(a) This section would establish broad standards for advertising,
reserving appropriate discretion in the agency. It is considered both
unnecessary and unwise to prescribe detailed and restrictive require-
ments, and it is believed that such matters should be left to be dealt
with by regulation. This section provides that advertising shall be
so conducted as to secure such full and free competition as is consistent
with the procurement of types of supplies and services needed.
(b) This subsection provides for the public opening of bids and
reaffirms the principles that the award shall be made to the responsible
bidder whose bid is most advantageous to the Government, price and
other factors considered, and that the Government may reject all
bids when such action is deemed advisable. The question as to
whether a particular bidder is a responsible bidder requires sound
business judgment and involves evaluation of the bidder's experience,
facilities, technical organization, reputation, financial resources, and
other factors and a broad discretion is accordingly reserved to the
agency with respect to the making of such determination.
Section 304. Requirements of negotiated contracts
(a) The right to use the most suitable type of contract is a necessary
and inseparable adjunct to the right to negotiate and this subsection
therefore permits negotiated contracts to be of any type which in
the opinion of the agency head will promote the best interests of the
Government, except as provided in subsection (b). Authority to
negotiate contracts in the first instance carries with it equal authority
to negotiate subsequent changes in the terms of negotiated contracts,
and such amendments may also be of such type as the agency head
believes will promote the best interests of the Government. This
subsection also provides that every negotiated contract shall contain
a suitable warranty against contingent fees.
(b) This subsection prohibits the cost-plus-a-percentage-of-cost sys-
tem of contracting and prescribes maximum fees in connection with
cost-plus-a-fixed-fee contracts. Neither a cost nor a cost-plus-a-fixed-
fee contract nor an incentive-type contract may be used unless it is
determined that such method is likely to be less costly than other
methods or that it is impracticable to secure supplies or services of the
kind or quality without the use of such type of contract.
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
44 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
Section 305. Advance payments
(a) This permits the agency head to make advance payments under
negotiated contracts upon adequate security if the agency head deter-
mines such payments to be in the public interest or in the interest of the
national defense and necessary and appropriate in order to procure the
required supplies or services. This authority is essential in periods of
emergency and in peacetime it is often the only way in which it can be
made possible for a small-business concern to handle Government con-
tracts. Often institutions of learning, research laboratories, inventors,
and similar contractors who perform most of the experimental, re-
research, and developmental contracts need advance payments because
they do not have sufficient funds to finance or are unwilling to finance
such contracts completely out of their own resources. The power to
make advance payments is permissive only, and under section 307 (b)
Of this title may not be delegated by the agency head. The committee
expects the civilian agencies to be very sparing in the making of ad-
vance payments in normal times and to use the authority, even in times
of national emergency, only when it is thoroughly justified.
- (b) The additional form of security by way of lien which is pro-
vided for by this subsection is a permissive feature which may be very
useful, especially in the event that a joint bank account, a controlled
account, or a special bank account is established in connection with
an advance :payment.
Section 806. Waiver o f liquidated damages
This section permits the Comptroller General, in his discretion,
upon proper recommendation by the agency concerned, to remit sums
due the Government under contract terms providing for the assess-
ment of liquidated damages for a delay in performance. This will
permit the Comptroller General to meet those situations in which the
strict application of the liquidated damages provisions would be
inequitable either in whole or in part and regardless of whether timely
notice is given with respect to the delay.
Section 307. Administrative determinations and delegations
(a) 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 de-
termination will be made.
(b) - This subsection prohibits the agency head from delegating the
power to make the determinations or decisions specified in paragraphs
11 and 12 of section 302 (c), which concern, respectively, contracts
which should not be publicly disclosed and standardization of technical
equipment and in section 305 (a), concerning the making of advance
payments. This subsection also restricts the power of the agency head
to make the decision or determinations specified in paragraph (10)
of section 302 (c) which concerns experimental, developmental, or
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES AQT 25
fesearch contracts. Furthermore, under this subsection the Adminis-
trator's power to delegate to another civilian executive agency the
right to use the authority provided under title III can be delegated
by the Administrator only to the Deputy Administrator of the General
Services Administration or to the chief official of any principal constit-
uent agency of, the General Services Administration. It is believed
that such power to confer authority upon another civilian agency
should be exercised only at a high level within the General Services
Administration
(c) As a further safeguard this subsection requires that determina-
tions or decisions concerning research and development contracts,
contracts which should not be publicly disclosed, standardization
of technical equipment, and 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) 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, a dollar amount,
for personal or professional services, for services to be rendered by an
educational institution, or for supplies or services which are to be
purchased and used outside the limits of the United States or its
possessions.
Section 308. Statutes continued in.effect
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.
Section 309. Definitions
(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 constituent agency of the
General Services Administration. This is 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) This subsection defines supplies to include all property except
land, and to include, by way of description and without limitation,
public works, buildings, facilities, ships, floating equipment, vessels,
aircraft, parts, accessories, equipment, machine tools, and alteration
or installation thereof. These illustrations are intended only as
examples and the committee has attempted to meet present and
future contingencies.
Section 810. Statutes not applicable
This section provides that the following acts shall not be applicable
to the procurement of supplies or services by the General Services
Administration:
Revised Statutes, section 3709, as amended, which' concerns
formal advertising;
H. Rept. 670, 90-1--4
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
26 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
Revised Statutes, section 3735, which prohibits the making of
`contracts for "stationery or other supplies" for more than 1 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.
These statutes would also be suspended for procurement made by
another civilian executive agency, under proper delegation of authority
made e by the Administrator and solely within the scope of that author-
ity, and such suspension would. be limited to the extent and within
the purview of the authority thus delegated.
TITLE IV. FOREIGN EXCESS PROPERTY
Section 401. Disposal of foreign excess property
This section generally provides that, except where commitments
exist under previous agreements, all excess property located in foreign
areas shall be disposed 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 agree-
ments 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.
Section 4.0P . Methods and terms of disposal
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 are currently being made. Foreign
excess property may be disposed of by sale, exchange, lease, or trans-
fer, 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 dis-
charge 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 agricultural commodities, food, or cotton or
Woolen goods must include a condition forbidding importation into
the United States unless the Secretary of Agriculture determines that
such property is in short supply in this country. The head of the
executive agency responsible for disposal may execute the documents
necessary to transfer the interest of the United States in the property
and may authorize 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 of sale.
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Releq?FeI&PPJ/ /1N1I
AqW-M ~ 0(~~g000 011-7
FEDERAL PR
Section 403, Proceeds; foreign currencies
This section provides that the proceeds from sales of foreign excess
property shall, if in the form of foreign currencies or credits, be ad-
ministered in accordance with procedures prescribed by the Secretary
of the Treasury and shall, if in United States currency or when reduced
to United States currency, be covered into the Treasury as miscel-
laneous receipts. The provisions of section 204 (b) relating to reim-
bursable funds or appropriations shall apply to proceeds of foreign
excess property Linder this title. The section further provides that
any executive agency disposing of surplus property under this title
may establish a special account with the Treasurer of the United
States from which appropriate refunds to purchasers may be made.
Section 404. Miscellaneous provisions
(a) Presidential policies.-The President is granted general author-
ity to prescribe policies deemed necessary to execute the provisions
of this title.
(b) Delegation of authority.-Any authority conferred upon any
executive agency under this title may be delegated and successive
redelegations authorized by the head of such agency to any official
in such agency or to the head of another executive agency.
(c) Employment of personnel.-The head of each executive agency
responsible for the disposal of excess property hereunder may, subject
to the civil-service and classification laws, appoint and fix the com-
pensation of necessary personnel and without regard to the civil-
service and classification laws appoint and fix the compensation of
personnel outside the continental limits of the United States as may
be necessary to carry out his functions.
(d) Reports to Congress.-Each agency responsible for foreign
disposal shall make annual reports to Congress relative to its activities
under this title.
(e) Transfer of personnel, funds, etc.-Such records, property,
personnel obligations, commitments, and unexpended balances, of
appropriations, allocations, and other funds as are determined by the
Director of the Bureau of the Budget to relate to the functions
transferred to another executive agency under this title shall be
transferred from the Department of State to that agency.
TITLE V. GENERAL PROVISIONS
Section 501. Applicability q f existing procedures
This section continues in effect all existing policies, procedures, and
directives until superseded or amended under authority of the act.
Section 502. Repeal and saving provisions
(a) Repeal of Surplus Property Act, certain exceptions.-This sub-
section repeals all the Surplus Property Act of 1944 except (i) sections
13 (g) and (h), relating to transfers for the airport program and for
parks, recreation, and historic monuments, and section 32 (b) (2),
relating to the foreign scholarship program, all of which are retained
as permanent legislation; and (ii) section 28 suspending a statute of
limitations. The priorities and preferences provided for in that act
are continued in effect with respect to the disposal of surplus real
estate until December 31, 1949. The provisions of the Supplemental
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Apprpyed For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
~s FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
Independent Offices Appropriation Act, 1949 (Public Law 862, 80th
Cong.), as amended, abolishing the War Assets Administration as of
June 30, 1949, and assigning its property-disposal functions to several
different agencies, are likewise repealed, as are two statutes authorizing
the armed services to donate obsolete personal property for educational
purposes. The latter statutes were superseded by Public Law 889,
Eightieth Congress, which is likewise repealed, since it will be super-
seded by the donation provisions in section 203 (j). This subsection
also repeals two statutes relating to the transfer of excess property
to other agencies and some 20 statutes relating to use of trade-in
allowances which will be superseded by section 201 (e).
(b) Repeal of Executive Order 6.166.-This subsection supersedes
Executive Order 6166 so far as it relates to the Bureau of Federal
Supply.
(c) Declaration of additional authority.-By this subsection the
authority conferred by the act is declared supplemental and not subject
to other legislation.
(d) Special exemptions from ~h.e act.-This subsection exempts from
operations under the act a number of activities requiring special
treatment. Chief among these are programs for price support, stabili-
zation, grants to farmers, and foreign aid; procurement procedures
under the Armed Services Procurement Act of 1947 (this statute is
concerned only with procedures and it is not intended by its inclusion
in this subsection to grant any exemption from the substantive pro-
visions of the bill); the stock-piling of critical materials; the national
school lunch program; the Housing and Home Finance Agency with
respect to the disposal of residential property; the Atomic Energy
Commission; and the Central Intelligence Agency.
It is 1 e deL...by_these exemptions that those administering
the agencies or programs listed shall be free from all obligation to
comply `vita tthe provisions of the act or from all jurisdiction of the
Admmi.etratori. On the contrary, it is expected that they will as far
as practicable procure utilize and dispose of property in accordance
with the provisions of the act and the, regulations issued thereunder,
particularly so far as common-use items and administrative supplies
are concerned. likewise _ it is ,intended that. the Administrator shall
have full authority, with respect to the agencies or programs men- %
tl ii, to make surveys of and obtain reports on, property and prop-
errty-management practices, to cooperate in the establishment of
inventory levels, and to report excessive stocking, in accordance with
the provisions of section 206 (a) (1) and (2).
In _oth word, to the extent that compliance with the act and
submission to the jurisdiction of the Administrator will not so "impair
or affect the authority" of the several agencies to which the subsection
ies as to interfere with the operation of their programs, the act
1111 ovein. Any disputes that arise can be settled by the President
un or t e authority to prescribe policies and directives vested in him
by section 205 (a).
Section 503. Authorization for appropriations and transfer authority
(a) Authorization for appropriations.-This subsection authorizes
appropriations generally without specification as to amount.
(b) Transfer authority.-Under this subsection an executive agency
may use for care and handling of property, funds heretofore appro-
Approved For Release 2001/08/15 : CIA-RDP57-QO384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384RO01000%0011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
-p`riated to it for purposes contemplated by sections 201, 202, 203, and
'205 of the act.
Section 504. Separability
Each provision of the the act is declared separable so far as validity is
concerned.
Section 505. Effective date
The effective date of the act is established as July 1, 1949, except
that (1) section 502 (a) (2), relating to the War Assets Administration,
is made effective June 30, 1949, and (2) section 201 (e), abolishing the
Bureau of Federal Supply surcharge, is to become operative July 1,
1950.
In compliance with paragraph 2a of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill, as
reported, are shown as follows (existing law proposed to be omitted is
enclosed in black brackets, new matter is printed in italics, existing
law in which no change is proposed is shown in roman):
STATUTES AMENDED
Section 201 (d) : Section 3709 of the Revised Statutes, as amended
x(41 U. S. C. 5) :
Unless otherwise provided in the appropriation concerned or other law, purchases
and contracts for supplies or services for the Government may be made or entered
into only after advertising a sufficient time previously for proposals, except (1)
when the amount involved in any one case does not exceed [$100], $500 (2) when
the public exigencies require the immediate delivery of the articles or performance
of the service, (3) when only one source of supply is available and the Government
purchasing or contracting officer shall so certify, or (4) when the services are
required to be performed by the contractor in person and are (A) of a technical
and professional nature or (B) under Government supervision and paid for on a
time basis. Except (1) as authorized by section 29 of the Surplus Property Act of
1944 (50 U. S. C. App. 1638), (2) when otherwise authorized by law, or (3) when
the reasonable value involved in any one case does not exceed [$100] $500 sales
and contracts of sale by the Government shall be governed by the requirements of
this section for advertising.
Section 201 (e): Section 2 of the Act of February 27, 1929 (ch. 354,
45 Stat. 1342; 5 U. S. C. 7b):
[That each] Each executive department and independent establishment shall
furnish from time to time, when called on to do so, estimates of its requirements
for inclusion in purchases which it is proposed to have made by the [Secretary of
the Treasury], Administrator of General Services and there shall be reserved from
proper appropriations sufficient amounts in each case to reimburse the general
supply fund hereinafter created. The [General Supply Committee] Adminis-
trator of General Services shall charge the [proportionate] estimated cost of supplies,
[including breakage, shrinkage, transportation, cost of handling by the Treasury
Department, and inspection,] and bill the same to each requisitioning department
and independent establishment; and each such requisitioning department and
establishment shall reimburse said general supply fund out of its appropriation
upon proper vouchers. Other expenses such as breakage, shrinkage, inspection,
and handling by the General Services Administration shall be charged to funds
appropriated to cover such expenses.
STATUTES REPEALED
Section 502 (a) (1)-the Surplus Property Act of 1944, as amended
(except sections 13 (g), 13 (h), 28, and 32 (b) (2)) * * *: Provided,
That with respect to the disposal under this Act of any surplus real
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Appr%rd For Release 2001/08/15: CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND, ADMINISTRATIVE SERVICES ACT
estate, all priorities and preferences provided for in said Act, as?
amended, shall continue in effect until 12 o'clock noon (eastern
standard time), December 31, 1949.'
[AN ACT To aid the reconversion from a war to a peace economy through the distribution of Government
surplus property and to establish a Surplus Property Board to effectuate the same, and for other
purposes
[Be it enacted by the Senate and House of Representatives of the United States of
America in Con
ress assembled Th
h
t
A
g
a
t
is
ct may be cited as the "Surplus. Property
Act of 1944", [OBJECTIVES
[SEC. 2. The Congress hereby declares that the objectives of this Act are to
facilitate and regulate the orderly disposal of surplus property so as-
[(a) to assure the most effective use of such property for war purposes
and the common defense;
[(b) to give maximum aid in the reestablishment of a peacetime economy
of free independent private enterprise, the development of the maximum of
independent operators in trade, industry, and agriculture, and to stimulate
full employment;
[(c) to facilitate the transition of enterprises from wartime to peacetime
production and of individuals from wartime to peacetime employment;
[(d) to discourage monopolistic practices and to strengthen and preserve
the competitive position of small business concerns in an economy of free
enterprise;
[(e) to foster and to render more secure family-type farming as the
traditional and desirable pattern of American agriculture;
[(f) to afford returning veterans an opportunity to establish themselves as
pro~~??rletors of agricultural, business, and professional enterprises;
L( g) to encourage and foster postwar employment opportunities;
[(h) to assure the sale of surplus property in such quantities and on such
terms as will discourage disposal to speculators or for speculative purposes;
[(i) to establish and develop foreign markets and promote mutually
advantageous economic relations between the United States and other
Countries by the orderly disposition of surplus property in other countries;
[(j) to avoid dislocations of the domestic economy and of international
economic relations;
[(k) to foster the wide distribution of surplus commodities to consumers
at fair prices;
(l) to effect broad and equitable distribution of surplus property;
~,(m) to achieve the prompt and full utilization of surplus property at fair
prices to the consumer through disposal at home and abroad with due regard
for the protection of free markets and competitive prices from dislocation
resulting from uncontrolled dumping;
[(n) to utilize normal channels of trade and commerce to th
t
t
-
e ex
en
con
sistent with efficient and economic distribution and the promotion of the 49101,
general objectives of this Act (without discriminating against the establish-
ment of new enterprises) ;
[(o) to promote production, employment of labor, and utilization of the
productive capacity and the natural and agricultural resources of the country;
[(p) to foster the development of new independent enterprise;
[(q) to prevent insofar as possible unusual and excessive profits being
made out of surplus property;
[(r) to dispose of surplus property as promptly as feasible without foster-
ing monopoly or restraint of trade, or unduly disturbing the economy, or
encouraging hoarding of such property, and to facilitate prompt redistribu-
tion of such property to consumers;
[(s) to dispose of surplus Government-owned transportation facilities and
equipment in such manner as to promote an adequate and economical national
transportation system; and
[(t) except as otherwise provided, to obtain for the Government, as nearly
as possible, the fair value of surplus property upon its disposition,
[DEFINITIONS U [c. 3. As used in this Act-
The term "Government agency" means any executive department, board,
bureau, commission, or other agency in the executive branch of the Federal
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
IaEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 31
Government, or any corporation wholly owned (either directly or through one or
mo e corporations) by the United States.
i(b) The term "owning agency," in the case of any property, means the
executive department, the independent agency in the executive branch of the
Federal Government, or the corporation (if a Government agency), having control
of such property otherwise than solely as a disposal agency.
[(c) The term "disposal agency" means any Government agency designated
under section 10 to dispose of one or more classes of surplus property.
[(d) The term "property" means any interest, owned by the United States or
any Government agency, in. real or personal property, of any kind, wherever
located, but does not include (1) the public domain, or such lands withdrawn or
reserved from the public domain as the Surplus Property Board (created by
section 5) determines are suitable for return to the public domain for disposition
under the general land laws, or (2) naval vessels of the following categories:
Battleships, cruisers, aircraft carriers, destroyers, and submarines.
[(e) The term "surplus property" means any property which has been deter-
mined to be surplus to the needs and responsibilities of the owning agency in
accordance with section 11.
[(f) The term "contractor inventory" means (1) any property related to a
terminated contract of any type with a Government agency or to a subcontract
thereunder; and (2) any property acquired under a contract pursuant to the terms
of which title is vested in the Government, and in excess of the amounts needed
to complete performance thereunder; and (3) any property which the Government
is obligated to take over under any type of contract as a result of any change in
the specifications or plans thereunder.
[(g) The term "care and handling" includes completing, repairing, converting,
rehabilitating, operating, maintaining, preserving, protecting, insuring, storing,
packing, handling, and transporting, and, in the case of property which is dangerous
to ublic health or safety, destroying, or rendering innocuous, such property,
e(h) The term "person" means any individual, corporation, partnership, firm,
association, trust, estate, or other entity.
[(i) The term "State" includes the several States, Territories, and possessions
of the United States, and the District of Columbia.
[(j) The term "tax-supported institution" means any scientific, literary, edu-
cational, public-health, or public-welfare institution which is supported in whole
or in part through the use of funds derived from taxation by the United States,
or by any State or political subdivision thereof.
[(k) The term "veteran" means any person in the active military or naval
service of the United States during the present war, or any person who served in
the active military or naval servic0 of the United States on or after September 16,
1940, and prior to the termination oi' the present war, and who has been discharged
or released therefrom under honorable conditions.
[DISPOSITION OF SURPLUS PROPERTY-GENERAL RULE
[SEC. 4. Surplus property shall be disposed of to such extent, at such times, in
such areas, by such agencies, at such prices, upon such terms and conditions, and
in such manner, as may be prescribed in or pursuant to this Act.
[SURPLUS PROPERTY BOARD
[SEc. 5. (a) There is hereby established in the Office of War Mobilization, and
in its successor, a Surplus Property Board (hereinafter called the "Board"), which
shall be composed of three members, each of whom shall be appointed by the
President, by and with the advice and consent of the Senate, and shall receive com-
pensation at the rate of $12,000 per annum. The term of office of the members
shall be two years, except that the term of office of the members first appointed
shall expire two years from the date of the enactment of this Act, and the next suc-
ceeding terms shall then begin, and any person appointed to fill a vacancy caused
by the death, resignation, or removal of a member prior to the expiration of the
term of such member shall be appointed only for such unexpired term. The
President shall designate one of the members of the Board as Chairman.]
(The Surplus Property Board created by this subsection was abolished by
Public Law 181, 79th Congress (59 Stat. 533), which created the Surplus Property
Administration and the office of Surplus Property Administrator. By virtue of
Executive Order 9689, January 31, 1946, the functions of the Surplus Property
Administration and the Surplus Property Administrator were transferred to the
War Assets Corporation and the Chairman of the Board of Directors of the War
Assets Corporation, respectively. The Executive order also provided for the
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
32 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
establishment, on March 25, 1946, of the War Assets Administration and the
office of War Assets Administrator. On that date the functions of the War Assets
Corporation relative to surplus property and of the Chairman of the Board of
Directors of the War Assets Corporation relative to surplus property were trans-
ferred to the War Assets Administrator. Section 501 of Reorganization Plan 1 of"
1947, effective July 1, 1947, transferred the functions of the War Assets Adminis.
tration and the War Assets Administrator, established by Executive Order 9689,.
to the Surplus Property Administration and the Surplus Property Administrator,.
respectively, and provided that the latter agencies should be known as the War
Assets Administration and the War Assets Administrator, respectively. Section
502 of the Plan created the office of Associate War Assets Administrator.)
[ (b) The Board may, within the limits of funds which may be made available,:
appoint and fix the compensation of such officers and employees, and may make
such expenditures for supplies, facilities, and services, as may be necessary to
carry out its functions. Without regard to the provisions of the -ivil-service
laws and the Classification Act of 1923, as amended, the Board may appoint
such special assistants, and may employ such certified public accountants, quali-
fied cost accountants, industrial engineers, appraisers, and other experts, and
fix their compensation, and may contract with such certified public accounting
firms and qualified firms of engineers, as may be necessary to carry out its
functions.
[DUTIES AND AUTHORITY OF BOARD
[SEC. 6. The activities of the Board shall be coordinated with the programs
of the armed forces of the United States in the interests of the war effort. Until
peace is concluded the needs of the armed forces are hereby declared and shall
remain paramount. The Board shall have general supervision and direction, as.
provided in this Act, over (1) the care and handling and disposition of surplus
property, and (2) the transfer of surplus property between Government agencies.
[COOPERATION WITH INTERESTED GOVERNMENT AGENCIES
[SEC. 7. The Board shall advise and consult with other interested Govern-
ment agencies with a view to obtaining all aid and assistance possible in co-
ordinating the functions of the several agencies affected by the disposition of
surplus property.
[DELEGATION OF AUTHORITY
J[SEC. 8. The head of any Government agency, except the Board, may delegate,
and authorize successive redelegations of, any authority conferred upon him or
his agency by or pursuant to this Act to any officer, agent, or employee of such
agency or, with the approval of the Board, to any other Government agency.
[REGULATIONS
[SEC. 9. (a) The Board shall prescribe regulations to effectuate the provisions
of this Act. In formulating such regulations, the Board shall be guided by the
objectives of this Act.
[(b) Regulations issued pursuant to subsection (a) may, except as otherwise
provided in this Act, contain provisions prescribing the extent to which, the
times at which, the areas in which, the agencies by which, the prices at which,
and the terms and conditions under which, surplus property may be disposed of,
and the extent to which and the conditions under which surplus property shall
be subject to care and handling.
[(c) Each Government agency shall carry out regulations of the Board ex-
peditiously and shall issue such further regulations, not inconsistent with the
regulations of the Board, as it deems necessary or desirable to carry out the
provisions of this Act.
[(d) Regulations prescribed under this Act shall be published in the Federal
[SEC. 10. (a) Except as provided in subsection (b) of this section, the Board
shall designate one or more Government agencies to act as disposal agencies
under this Act. In exercising its authority to designate disposal agencies, the
Board shall assign surplus property for disposal by the fewest number of Govern-
ment agencies practicable and, so far as it deems feasible, shall centralize in one
disposal agency responsibility for the disposal of all property of the same type
or class.
Approved For Release 2001/08115 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-003848001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
[(b) The United States Maritime Commission shall be the sole disposal agency
for surplus vessels which the Commission 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.
[(c) Except as provided in subsection (b) of this section, the Department of
State shall be the sole disposal agency for surplus property located outside the
continental United States, Hawaii, Alaska (including the Aleutian Islands),
Puerto Rico, and the Virgin Islands, and with respect to such property the Sec-
retary of State shall exercise the functions heretofore conferred upon the Surplus
Property Administrator by Public Law 181, Seventy-ninth Congress. The
Secretary of State shall, subject to the provisions of the War Mobilization and
Reconversion Act of 1944, have sole responsibility for carrying out the provisions
of the Surplus Property Act of 1944, with respect to surplus property located
outside the continental United States, Hawaii, Alaska (including the Aleutian
Islands), Puerto Rico, and the Virgin Islands.] (Subsection (c) added by Public
Law 584, 79th Congress (60 Stat. 754).)
[DECLARATION AND DISPOSITION OF SURPLUS PROPERTY
[SEC. 11. (a) Each owning agency shall have the duty and responsibility con-
tinuously to survey the property in its control and to determine which of such
property is surplus to its needs and responsibilities.
[(b) Each owning agency shall promptly report to the Board and the appro-
priate disposal agency all surplus property in its control which the owning agency
does not dispose of under section 14.
[(c) Whenever in the. course of the performance of its duties under this Act
the Board has reason to believe that any owning agency has property in its con-
trol which is surplus to its needs and responsibilities and which it has not reported
as such, the Board shall promptly report that fact to the Senate and House of
Representatives. Each owning agency and each disposal agency shall submit to
the Board (1) such information and reports with respect to surplus property in
the control of the agency, in such form., and at such reasonable times, as the
Board may direct; (2) such information and reports with respect to other property
in the control of the agency, to such extent, and in such form, as the Board may
direct and as the agency deems consistent with national security.
[(d) When any surplus property is reported to any disposal agency under sub-
section (b) of this section, the disposal agency shall have responsibility and author-
ity for the disposition of such property, and for the care and handling of such
property pending its disposition, in accordance with regulations prescribed by the
Board, Where the disposal agency is not prepared at the time of its designation
under this Act to undertake the care and handling of such surplus property the
Board may postpone the responsibility of the agency to assume its duty for care
and handling for such period as the Board deems necessary to permit the prepara-
tion of the agency therefor.
[(e) The Board shall proscribe regulations necessary to provide, so far as
practicable, for uniform and wide public notice concerning surplus property
available for sale, and for uniform and adequate time intervals between notice
and sale so that all interested purchasers may have a fair opportunity to buy.
[(f) No surplus property which was processed, produced, or donated by the
American Rod Cross for any Government agency shall be disposed of except after
notice to and consultation with the American Red Cross. All or any portion of
such property may be donated to the American Red Cross, upon its request,
solely for charitable purposes.
[(g) Each disposal agency shall maintain in each of its disposal offices such
records of its inventories of surplus property and of each disposal transaction
negotiated by that office as the Board may prescribe. The information in such
records shall be available at all reasonable times for public inspection.
[UTILIZATION OF SURPLUS PROPERTY BY FEDERAL AGENCIES
[SEC. 12. (a) It shall be the duty of the Administrator to facilitate the transfer
of surplus property from one Government agency to other Government agencies
for their own use and not for transfer or disposition; and the transfer of surplus
property under this section shall be given priority over all other disposals pro-
vided for. in this Act, except disposals to veterans of property reserved exclusively
for veterans under subsection (b) of section 16 of this Act. The Administrator
shall prescribe a reasonable time within which Government agencies shall exercise
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
34 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
the priority provided by this subsection, but the time so fixed shall not exceed
twenty days from the time public notice is given of the availability of the surplus
property for disposal to Government agencies.] (As amended by Public Law
375, 79th Congress (60 Stat. 168).)
[(b) It shall be the responsibility of all Government agencies in order to avoid
making purchases through commercial channels, continuously to consult the
records of surplus property established by the Board and to determine whether
their requirements can be satisfied out of such surplus property. It shall also be
the responsibility of the head of each Government agency to submit to the Board
such estimates of the needs of the agency and such reports in relation thereto as
the Board may deem necessary to promote the fullest utilization of surplus
property. It shall be the responsibility of the Board to determine whether
Government agencies are acquiring surplus property to the fullest possible extent,
and to notify agencies whenever, in its judgment, they are not so doing.
[(c) The disposal agency responsible for any such property shall transfer it
to the Government agency acquiring it at the fair value of the property as fixed by
the disposal agency, under regulations prescribed by the Administrator, unless
transfer without reimbursement or transfer of funds is authorized under subsec-
tion (d) of this section.] (As amended by section 3 of Public Law 375, 79th
Congress (60 Stat. 168).)
((d) Notwithstanding the provisions of section 34 (a) of this Act, no Govern-
ment agency may transfer any property to any other Government agency without
reimbursement or transfer of funds under authority of any law approved prior to
June 22, 1944. Any disposal agency may transfer surplus property to a Govern-
ment agency without reimbursement or transfer of funds whenever a transfer on
such terms by the owning agency (by which such property was declared surplus)
would be authorized by any law approved subsequent to June 21, 1944, to be made
to the Government agency desiring such property.] (Added by section 4 of
Public Law 375, 79th Congress (60 Stat. 168).)
[DISPOSAL TO LOCAL GOVERNMENTS AND NONPROFIT INSTITUTIONS
[SEC. 13. (a) The Board shall prescribe regulations for the disposition of sur-
plus property to States and their political subdivisions and instrumentalities, and
to tax-supported and nonprofit institutions, and shall determine on the basis of
need what transfers shall be made. In formulating such regulations the Board
shall be guided by the objectives of this Act and shall give effect to the following
policies to the extent feasible and in the public interest:
[(1) (A) Surplus property that is appropriate for school, classroom, or
other educational use may be sold or leased to the States and their political
subdivisions and instrumentalities, and tax-supported educational institu-
tions, and to other nonprofit educational institutions which have been held
exempt from taxation under section 101 (6) of the Internal Revenue Code.
[(B) Surplus medical supplies, equipment, and property suitable for use in
the protection of public health, including research, may be sold or leased to
the States and their political subdivisions and instrumentalities, and to tax-
supported 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 Board 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 sub-
division, instrumentality, or institution.
[(2) Surplus property shall be disposed of so as to afford public and gov-
ernmental institutions, nonprofit or tax-supported educational institutions,
charitable and eleemosynary institutions, nonprofit or tax-supported hospitals
and similar institutions, States, their political subdivisions and instrumentali-
ties, and volunteer fire companies, an opportunity to fulfill, in the public
interest, their legitimate needs.
[(3) Surplus property certified by the Governor of the State in which the
property is situated and by the Secretary of the Army, the Secretary of the
Navy, or the Secretary of the Air Force, as the case may be, as being suitable
and needed for use in training and maintaining any civilian component of the
armed forces under his jurisdiction may be disposed of to States, their political
subdivisions or tax-supported instrumentalities, subject to such terms and
conditions as the Administrator determines to be necessary to properly
protect the interests of the United States. Such disposals shall be without
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384000000 0011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVIC SAC
monetary consideration: Provided, That the Government shall be reimbursed
for such costs incident to the disposal of the property as the Administrator
may deem proper, including the expense of removal of any machinery,.
equipment, or personal property not transferred as a part of such disposal.]
(As added by Public Law 829, 80th Congress.)
[(b) Under regulations prescribed by the Board, whenever the Government
agency authorized to dispose of any property finds that it has no commercial value
or that the cost of its care and handling and disposition would exceed the estimated
proceeds, the agency may donate such property to any agency or institution sup-
ported by the Federal Government or any State or local government, or to any
nonprofit educational or charitable organization, or, if that is not feasible, shall
destroy or otherwise dispose of such property, but, except in the case of property
the immediate destruction of which is necessary or desirable either because of the
nature of the property or because of the expense or difficulty of its care and
handling, no property shall be destroyed until thirty days after public notice of the
proposed destruction thereof has been given (and a copy of such notice given to
the Board at the beginning of such thirty-day period) and an attempt has been
made within such thirty days to dispose of such property otherwise than by
destruction.
[(c) No harbor or port terminal, including necessary operating equipment,
shall be otherwise disposed of until it has first been offered, under regulations to
*410r be prescribed by the Administrator, for sale or lease to the State, political sub-
division thereof, and any municipality, in which it is situated, and to all muni-
cipalities in the vicinity thereof.] (As amended by Public Law 289, 80th Con-
gress.)
[(6) Whenever any State or political subdivision thereof, or any State or
Government agency or instrumentality certifies to the Board that any power
transmission line determined to be surplus property under the provisions of this
Act is needful for or adaptable to the requirements of any public or cooperative
power project, such line and the right-of-way acquired for its construction shall
not be sold, leased for more than one year, or otherwise disposed of, except as
provided in section 12 of this section, unless specifically authorized by Act of
Congress.
[(e) In disposing of any surplus real property, as defined in section 23, on or
across which highways or streets had been established and constructed and were
being maintained by the States or their political subdivisions or instrumentalities
at the time such surplus real property was acquired by the Government, and
where such highways or streets were vacated, destroyed, or shut off from general
public use in order to meet the requirements and serve the purposes of the
Government, the States or their political subdivisions or instrumentalities first
shall be given a reasonable time, to be fixed by the Board, in w.iich to repurchase
the original rights-of-way on which such highways or streets were established and
in which to purchase such new or additional rights-of-way as may be required
for reestablishing, in whole or in part, such highways or streets of greater width
or on new and more adequate locations, at a price not exceeding that paid therefor
by the Government.
[(f) Except as otherwise provided by this section, the disposal of surplus prop-
erty under this section to States and political subdivisions and instrumentalities
thereof shall be given priority over all other disposals of property provided for in
this Act except (1) transfers to Government agencies under section 12 of this
Act, as amended, and (2) disposals to veterans under section 16 of this Act, as
amended. Disposals of real property to States, political subdivisions, and in-
strumentalities thereof for any of the purposes specified in section 13 (a) (1) (A),
section 13 (a) (1) (B), section 13 (c), section 13 (d), section 13 (e), section 13 (g),
or section 13 (h) of such Act., as amended, shall be given priority over all other
disposals of property provided for in this Act except transfers to Government
agencies under section 12 of this Act, as amended. The Administrator may
prescribe a reasonable time during which any such priority shall be exercised.]
(As amended by section 2 of Public Law 616, 80th Congress.)
(g) (1) Notwithstanding any other provision of this Act, any disposal agency
designated pursuant to this Act may, with the approval of the Administrator,
convey or dispose of to any State, political subdivision, municipality, or tax-
supported institution, without monetary consideration+to the United States, but
subject to the terms, conditions, reservations, and restrictions hereinafter provided
for, all of the right, title, and interest of the United States in and to any surplus
real or personal property (exclusive of property the highest and best use of which
is determined by the Administrator to be industrial and which shall be so classified
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
36 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
for disposal without regard to the provisions of this subsection) which, in the
determination of the Administrator of Civil Aeronautics
is essential
suitable
or
,
,
,
is desirable for the development, improvement, operation, or maintenance of a
public airport as defined in the Federal Airport Act (60 Stat. 170) or reasonably
necessary to fulfill the immediate and foreseeable future requirements of the grantee
for the development, improvement, operation, or maintenance of a public airport,
Including property needed to develop sources of revenue from nonaviation busi-
nesses at a public airport.
(2) Except as provided in paragraph (3) hereof, all property disposed of under
the authority of this subsection shall be disposed of on and subject to the following
terms, conditions, reservations, and restrictions:
(A) No property disposed of under the authority of this subsection
shall be used, leased, sold, salvaged, or disposed of by the grantee or transferee
for other than airport purposes without the written consent of the Adminis-
trator of Civil Aeronautics, which consent shall be granted only if the Ad-
ministrator of Civil Aeronautics determines that the property can be used,
leased, sold, salvaged, or disposed of for other than airport purposes without
materially and adversely affecting the development, improvement, operation,
of maintenance of the airport at which such property is located: Provided,
That no structures disposed of hereunder shall be used as an industrial plant,
factory, or similar facility within the meaning of section 23 of this Act,
unless the public agency receiving title to such structures shall pay to the
United States such sum as the Administrator shall determine to be a fair
consideration for the removal of the restriction imposed by this proviso
(B) All property transferred for airport purposes shall be used and main-
tained for the use and benefit of the public, without unjust discrimination.
(C) No exclusive right for the use of the airport at which the property
disposed of is located shall be vested (either directly or indirectly) in any
person or persons to the exclusion of others in the same class. For the pur-
pose of this condition, an exclusive right is defined to mean-
(1) any exclusive right to use the airport for conducting any particular
aeronautical activity requiring operation of aircraft;
(2) any exclusive right to engage in the sale or supplying of aircraft,
aircraft accessories, equipment, or supplies (excluding the sale of gasoline
and oil), or aircraft services necessary for the operation of aircraft
(including the maintenance and repair of aircraft, aircraft engines,
propellers, and appliances).
(D) '!he grantee shall, insofar as it is within its powers, adequately clear
and protect the aerial approaches to the airport by removing, lowering,
relocating, marking, or lighting or otherwise mitigating existing airport
hazards and by preventing the establishment or creation of future airport
hazards.
(E) During any national emergency declared by the President or by the
Congress, the United States shall have the right to make exclusive or non-
exclusive use and have exclusive or nonexclusive control and possession,
without charge, of the airport at which the surplus property is located or -
used, or of such portion thereof as it may desire: Provided, however, That
the United States shall be responsible for the entire cost of maintaining such
part of the airport as it may use exclusively, or over which it may have
exclusive possession and control, during the period of such use, possession,
or control, and shall be obligated to contribute a reasonable share, com-
mensurate with the use made by it, of the cost of maintenance of such prop-
erty as it may use nonexciusively or over which it may have nonexclusive
control and possession: Provided further, That the United States shall pay
a fair rental for its use, control, or possession, exclusively or nonexciusively,
of any improvements to the airport made without United States aid.
(F) The United States shall at all times have the right to make nonex-
elusive use of the landing area of the airport at which the surplus property
is located or used, without charge: Provided, however, That such use may be
limited as may be determined at any time by the Administrator of Civil
Aeronautics to be necessary to prevent undue interference with use by other
authorized aircraft: Provided further, That the United States shall be obli-
gated to pay for dainn;ges caused by such use, or if its use of the landing area
is substantial, to contribute a reasonable share.ef.the cost of maintaining
and operating the landing area, commensurate with the use made by it.
(G) Any public agency accepting a conveyance or transfer of surplus prop-
erty under the provisions of this subsection shall release the United States
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 37
from any and all liability it may be under for restoration or other damages
under any lease or other agreement covering the use by the United States of
any airport, or part thereof, owned, controlled, or operated by the public
agency upon which, adjacent to which, or in connection with which, the sur-
plus property was located or used: Provided, That no such release shall be
construed as depriving the public agency of any right it may otherwise have
to receive reimbursement under section 17 of the Federal Airport Act for the
necessary rehabilitation or repair of public airports heretofore or hereafter
substantially damaged by any Federal agency.
(H) In the event that any of the terms, conditions, reservations, and
restrictions upon or subject to which the property is disposed of is not met,
observed, or complied with, all of the property so disposed of or any portion
thereof, shall, at the option of the United States, revert to the United States
in its then existing condition.
(3) In making any disposition of surplus property under this subsection (g), the
disposal agency is authorized, upoilhe request of the Administrator of Civil
Aeronautics, the Secretary of War, or the Secretary of the Navy, to omit from the
instruments of disposal any of the terms, conditions, reservations, and restrictions
required by paragraph (2) hereof, and to include any additional terms, conditions,
reservations, and restrictions, if the Administrator of Civil Aeronautics, the
Secretary of War, or the Secretary of the Navy determines that such omission or
inclusion is necessary to protect or advance the interests of the United States in
civil aviation or for national defense.
(4) The Administrator of Civil Aeronautics shall have the sole responsibility
for determining and enforcing compliance with the terms, conditions, reservations,
and restrictions upon or subject to which surplus property is disposed of pursuant
to this subsection.
(5) All surplus property within the purview of this subsection which is not dis-
posed of pursuant hereto shall he disposed of as provided elsewhere in this Act or
other applicable Federal Statute.
(6) Notwithstanding the provisions of subsection (f) of this section and sub-
section (e) of section 18, the disposal of surplus property under this subsection,
which is determined by the Administrator to be available for the purposes enu-
merated in this subsection, shall be given priority immediately following transfers
to other Government agencies under section 12. (Subsection (g) added by Public
Law 289, 80th Congress.)
(h) (1) Notwithstanding any other provision of this Act, any disposal agency
designated pursuant to this Act may, with the approval of the Administrator,
convey to any State, political subdivision, instrumentalities thereof, or munici-
pality, all of the right, title, and interest of the United States in and to any surplus
land, including improvements and equipment located thereon, which, in the
determination of the Secretary of the Interior, is suitable and desirable for use as
a public park, public recreational area, or historic monument, for the benefit of
the public. The Administrator, from funds appropriated to the War Assets
Administration, shall reimburse the Secretary of the Interior for the costs incurred
in making any such determination.
(2) 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 its 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.
(3) The deed of conveyance of any surplus real property disposed of under the
provisions of this subsection-
(A) shall provide that all such property shall be used and maintained for
the purpose for which it was conveyed for a period of not less than twenty
years, and that in the event that such property ceases to be used or main-
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
38 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
tained for such purpose during such period, all or any portion of such property
shall in its then existing condition, at the option of the United States, revert to
the United States; and
(B) may contain such additional terms, reservations, restrictions, and
conditions as may be determined by the Administrator, to be necessary to
safeguard the interests of the United States. (Subsection (h) added by
Public Law 616, 80th Congress.)
[DISPOSITION BY OWNING AGENCY
[SEC. 14. (a) Subject only to the regulations of the Board with respect to
price policies, any owning agency may dispose of any property for the purpose
of war production or autho ize any contractor with such agency or subcontractor
thereunder to retain or dispose of any contractor inventories for the purpose of
war production. The Board may empower any owning agency, subject to the
regulations of the Board, to authorize any contractor with such agency or sub-
contractor thereunder to retain or dispose of any contractor inventories for any
other purpose which in the opinion of the Board is not contrary to the objectives
of this Act. Where any owning agency takes possession of any contractor in-
ventory from any contractor with the agency or subcontractor thereunder, such
property shall be disposed of only in accordance with the provisions of this Act.
[(b) Subject only to subsection (c) of this section, any owning agency may
dispose of-
[(1) any property which is damaged or worn beyond economical repair;
[(2) any waste, salvage, scrap, or other similar items;
[(3) any product of industrial, research, agricultural, or livestock opera-
tions, or of any public works construction or maintenance project, carried
on by such agency;
which does not consist of materials which are to be transferred in accordance
with the Strategic and Critical Materials Stock Piling Act, to the stock piles
established pursuant to that Act.] (As amended by section 6 of Public Law
520, 79th Congress.)
[(c) Whenever the Board deems such action necessary to effectuate the obiiec-
tives and policies of this Act, the Board, by regulations, shall restrict the authority
of any owning agency to dispose of any class of surplus property under subsection
(h) of this section.
[METHODS OF DISPOSITION
[SEC. 15. (a) Notwithstanding the provisions of any other law but subject
to the provisions of this Act, whenever any Government agency is authorized to
dispose of property under this Act, then the agency may dispose of such property
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 agency deems
proper: Provided, however, That in the case of raw materials, consumer goods,
and small tools, hardware, and nonassembled articles which may be used in the
manufacture of more than one type of product; no extension of credit under this
Act shall be for a longer period than three years.
[(b) Any owning agency or disposal agency may execute such documents for the
transfer of title or other interest in property or take such other action as it deems
necessary or proper to transfer or dispose of property or otherwise to carry out
the provisions of this Act, and, in the case of surplus property, shall do so to the
extent required by the regulations of the Board.
[DISPOSITIONS TO VETERANS
[Sac. 16. (a) The Administrator shall prescribe regulations to effectuate the
objectives of this Act to aid veterans in the acquisitionof surplus property, in
appropriate quantities and types, to enable them to establish and maintain their
own small business, professional, or agricultural enterprises. Disposals of surplus
property (except real property) to veterans under this subsection shall be given
priority over all-other disposals of property provided for in this Act except transfers
to Government agencies under section 12.] (Added by Public Law 375, 79th
I Congress (60 Stat. 168).)
[(b) Notwithstanding the provisions of section 12 of this Act, the Adminis-
trator may cause to be set aside or otherwise to be made available quantities and
types of any surplus property, except real property, which he determines to be
appropriate for exclusive disposal to veterans for their own personal use, and to
enable them to establish and maintain their own small business, professional, or
Aft
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 39
agricultural enterprises. The Administrator shall prescribe regulations designed
tollachieve the equitable distribution of such surplus property among veterans.
In selecting any types or quantities of surplus property for disposal in accordance
with the provisions of this subsection, the Administrator shall give due considera-
tion to the availability of adequate facilities for and the costs of the distribution
of such property. The Administrator shall from time to time cause to be com-
piled and widely publicized information as to the types and quantities of such
surplus property which has or will become available within a given period of
time for exclusive disposal to veterans in accordance with the provisions of this
subsection.] (Added by Public Law 375, 79th Congress (60 Stab. 168).)
[(c) The Administrator shall prescribe a reasonable time of not less than 15
days after public notice during which property offered to veterans under this
section shall be held for disposal to them.] (Added by Public Law 375, 79th
Congress (60 Stat. 168).)
[DISPOSITIONS IN RURAL AREAS
[SEC. 17. The Board shall devise ways and means and prescribe regulations in
cooperation with the War Food Administrator providing for the sale of surplus
property in such quantities in rural localities and in such manner as will assure
farmers and farmers' cooperative associations equal opportunity with others to
purchase surplus property: Provided, however, That in cases where a shortage of
trucks, machinery, and equipment impairs farm production, a program shall be
developed by the Board in cooperation with the Agricultural Adjustment Agency
whereby a reasonable portion of the surplus supply will be made available for sale
in rural areas to farmers and farmers' cooperative associations.
[SMALL BUSINESS
[SEC. 18. (a) It shall be the duty of the Board to devise ways and means and
prescribe regulations to prevent any discrimination against small business in the
disposal and distribution and use of any surplus property.
[(b) The Board shall by regulations determine, or provide for the determination,
as to all surplus property in the hands of each disposal agency, the size of lots in
which, and the areas in which, the various classes of such property should be
offered consistently with the usual and customary commercial practice with
respect to such class. The available supply of each class in each area shall be
so disposed of as to give to prospective purchasers, within such area, of any par-
ticular amount (not smaller than the smallest lot consistent with such commercial
practice) preference (by affording them reasonable opportunity to acquire the
desired amount) over prospective purchasers of larger amounts.
[(c) The Smaller War Plants Corporation is hereby specifically charged with
the responsibility of cooperating with the Board and with the owning and dis-
posal agencies, of making surveys from time to time, and bringing to the attention
of the agencies and the Board the needs and requirements of small business and
any cases or situations which have resulted in or would effect discrimination against
small business in the purchase or acquisition of surplus property by them and in
the disposal thereof by the agencies.
[(d) The Smaller War Plants Corporation is hereby authorized and directed to
consult with small business to obtain full information concerning the needs of
small business for surplus property.
[(e) (Repealed by section 3 of Public Law 616, 80th Congress).
[(f) The Smaller War Plants Corporation is hereby authorized, for the pur-
pose of carrying out the objectives of this section, to make or guarantee loans to
small business enterprises in connection with the acquisition, conversion, and
operation of plants and facilities which have been determined to be surplus prop-
erty, and, in cooperation with the disposal agencies to arrange for sales.of surplus
property to small business concerns on credit or time basis.
[DISPOSAL OP PLANTS
[SEC. 19. (a) The Board, in cooperation with the various disposal agencies,
shall prepare and submit to the Congress within three months after enactment of
this Act, a report as to each of the following classes of surplus property (not
including any plant which cost the Government less than $5,000,000) : (1) alumi-
num plants and facilities: (2) magnesium plants and facilities; (3) synthetic
rubber plants and facilities; (4) chemical plants and facilities; (5) aviation gaso-
line plants and facilities; (6) iron and steel plants and facilities; (7) pipe lines and
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
40 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
facilities used for transporting oil; (8) patents, processes, techniques, and inven-
tions, except such as are necessary to the operation of the plants and facilities
herein listed; (9) aircraft plants and facilities and aircraft and aircraft parts;
(10) shipyards and facilities; (11) transportation facilities; and (12) radio and
electrical equipment:
[(A) Describing the amount, cost, and location of the property and
setting forth other descriptive information relative to the use of the property;
[(B) Outlining the economic problems that may be created by disposition
of the property;
[(C) Setting forth a plan or program for the care and handling, disposition,
and use of the property consistent with the policies and objectives set forth
in this Act.
[(b) In the event that it is not possible within such period to prepare and
submit a complete report to the Congress as to any class of property, the Board
shall submit an interim report three months after the enactment of this Act,
and shall submit a complete report as soon thereafter as possible. If the Board
determines that it is desirable to alter or change any such plan or program or
to prepare a report on any other class of property, it shall prepare in accordance
with the provisions of this subsection and submit to the Congress an additional
report, setting forth the altered or changed plan or program or a plan or program
relating to the new class of property.
[(c) Whenever the Board may deem it to be in the interest of the objectives
of this Act it may authorize the disposition of any surplus property listed in classes
9 to 12, inclusive, of subsection (a) of this section. With respect to the property
listed in classes 1 to 8, inclusive, no disposition shall be made or authorized until
thirty days (or sixty days in the case of aluminum plants and facilities) after
such report (or additional report) has been made while Congress is in session,
except that the Board may authorize any di- oral agency to lease any such prop-
erty for a term of not more than five years (Matter within parentheses added
by Public Law 200, 79th Congress (59 Stat. 546).)
[(d) The Board may authorize any disposal agency to dispose of any materials
or equipment related to any surplus plant covered by this section, if such mate-
rials and equipment are not necessary for the operation of the plant in the manner
for which it is designed.
[(e) This section shall not apply to any Government-owned equipment, struc-
ture, or other property operated as an integral part of a privately owned plant
and not capable of economic operation as a separate and independent unit.
[APPLICABILITY OF ANTITRUST LAWS
[SEC. 20. Whenever any disposal agency shall begin negotiations for the dis-
position to private interests of a plant or plants or other property, which cost the
Government $1,000,000 or more, or of patents, processes, techniques, or inventions,
irrespective of cost, the disposal agency shall promptly notify the Attorney General
of the proposed disposition and the probable terms or conditions thereof. Within
a reasonable time, in no event to exceed ninety days after receiving such notifica-
tion, the Attorney General shall advise the Board and the disposal agency whether,
in his opinion, the proposed disposition will violate the antitrust laws. Upon the
request of the Attorney General, the Board or other Government agency shall
furnish or cause to be furnished such information as it may possess which the
Attorney General determines to be appropriate or necessary to enable him to give
the advice called for by this section or to determine whether any other disposition
,of surplus property violates the antitrust laws. Nothing in this Act shall impair,
amend, or modify the antitrust laws or limit and prevent their application to
persons who buy or otherwise acquire 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; and the Act of August 27,
1894 (ch. 349, sees. 73, 74, 28 Stat. 570), as amended.
[DISPOSAL OF SURPLUS AGRICULTURAL COMMODITIES
[SEC. 21. (a) Subject to the supervision of the Board, the War Food Adminis-
trator, or his successor, shall be solely responsible for the formulation of policies
with respect to the disposal of surplus agricultural commodities and surplus foods
processed from agricultural commodities, which shall be administered by the
disposal agency or agencies designated by the Board. Such policies shall be so
formulated as to prevent surplus agricultural commodities, or surplus food pro-
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 41
cessed from agricultural commodities, from being dumped on the market in a.
disorderly manner and disrupting the market prices for agricultural commodities.
[(b) The Board shall not exercise any of its powersunder this Act with relation
to disposal of surplus cotton or woolen goods except with the approval in writing
of the War Food Administrator or his successor.
[(c) Surplus farm commodities shall not be sold in the United States under
this Act in quantities in excess of, or at prices less than, those applicable with
respect to sales of such commodities by the Commodity Credit Corporation, or
at less than current prevailing market prices, whichever may be the higher,
unless such commodities are being disposed of, pursuant to this Act, only for
export; and the Commodity Credit Corporation may dispose of or cause to be
disposed of for cash or its equivalent in goods or for adequately secured credit,
for export only, and at competitive world prices, any farm commodity or product
thereof without regard to restrictions with respect to the disposal of commodities
imposed upon it by any law: Provided, That no food or food product shall be.
sold or otherwise disposed of under this subsection for export (1) if there is a
shortage of such food or food product in the United States or if such sale or other
disposition may result in such a shortage, or (2) if such food or food product is,
needed to supply the normal demands of consumers in the United States.
[STOCK PILING]
`gyp (Section 22 was repealed by subsection (e) of section 6 of the "Strategic and
Critical Materials Stock Piling Act", Public Law 520, 79th Congress.)
[DISPOSAL Or SURPLUS REAL PROPERTY
[Sec. 23. (a) As used in this section-
[(1) The term "real property" means-property consisting of land, together
with any fixtures and improvements thereon (including hotels, apartment houses
hospitals, office buildings, stores, and other commercial structures) located
outside the District of Columbia, but does not include (A) commercial structures,
constructed by, at the direction of, or on behalf of any Government agency,
(B) commercial structures which the Administrator determines have been made
an integral part of a functional or economic unit which should'be disposed of as -
a whole, said (C) war housing, industrial plants, factories, airports, airport facil-
ities, or similar structures and facilities, or the sites thereof, or land which the
Administrator determines essential to the use of any of the foregoing; and (2) The
term "surplus real property" means real'property which has been determined
under section 11 to be surplus property.] (Paragraph I as amended by Public.
Law 635, 79th Congress (60 Stat. 866).)
[(b) Surplus real property which is not disposed of to Government agencies
under section 12 or to States or their political subdivisions or instrumentalities -
under section 13 shall be disposed of in accordance with this section.
[(c) Immediately after the reporting of surplus real property to the Board
under section 11, the Board shall classify such property as agricultural, grazing,
forest, mineral, or otherwise, as it may deem advisable. The classification may
V*r/ be revised from time to time. The classification of property by the Administrator
(including the determination of whether property is "real property" as defined
in this section) shall be based on the highest and best use of the property at the
time it is reported as surplus property regardless of its former character or use.]
(Last sentence added by Public Law 635, 79th Congress (60 Stat. 866).)
[(d) (1) (A) In the case of any surplus real property which was acquired by
any Government agency after December 31, 1939, the person from whom such
property as acquired shall be given notice, in such manner (which may include
publication) as the Board by regulation may prescribe, that the property is to be
disposed of by the United States and shall be entitled to purchase such property,
in substantially the identical tract as when acquired from such person, at private
sale at any time during the period of ninety days following such notice: Provided,
That such period shall be extended in any case when it appears that such extension
is necessary or appropriate to facilitate the sale of any surplus real property under
this subsection.
[(B) In the case of real property Acquired by any Government agency after
December 31, 1939, which either-
(i) has not been determined under section 11 to be surplus property, or
(ii) has been disposed of under section 12 or 13, or
(iii) is classified as suitable for a purpose different from that for which it
was used when acquired by the Government, and with respect to which the
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
42 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
person from whom it was acquired has signified an intention not to exercise
the privilege granted under subparagraph (A),
the person from whom such property was acquired may be offered other surplus
real property in the same area for purchase at private sale, if such other property
is classified as suitable for the purpose for which the property so acquired was used
When so acquired, and is otherwise similar to the property so acquired.
[(2) In the case of surplus real property which was acquired by any Govern-
ment agency after December 31, 1939, and which is classified as suitable for agri-
cultural use, if any tenant (who was a tenant at the time of acquisition) of the
person from whom such property was acquired, signifies, within a period of ninety
days following public notice of sale, his intention to purchase such property, and
no person has exercised his privilege under paragraph (1) (A), such tenant shall
be entitled to purchase such property, in substantially the identical tract as when
acquired by such Government agency, at private sale at any time during such
ninety-day period.
[(3) The price to be paid for surplus real property sold under this subsection
shall be a price not greater than that for which it was acquired by the United
States, such acquisition price being properly adjusted to reflect any increase or
decrease in the value of such property resulting from action by the United States,
or a price equal to the market price at the time of sale of such property, whichever
price is the lower.
[(4) The Board may by regulation prescribe methods for the identification of
persons entitled to exercise the privileges conferred by this subsection.
[(e) If any surplus real property is not disposed of under subsection (d)-
[(1) such property, if classified as suitable for agricultural use, shall be
subdivided, as provided by the Board, whenever practicable into economic
family-size units (taking into consideration the variations in sizes of economic
units in different localities); and
[(2) such property, if not classified as suitable for agricultural use, shall be
subdivided into the appropriate units in which the Board deems the property
should be disposed of, giving due consideration to the character of the prop-
erty, the economic use to which it is likely to be put, and the objectives of dis-
position as set forth in this Act.
[(f) (1) Whenever any surplus real property classified as suitable for agricul-
tural, residential, or small business purposes is to be disposed of, except as pro-
vided in subsection (d) of this section, veterans shall be granted a preference in
the purchase of such property over nonveterans.
[((2) The following procedure shall govern the exercise of veterans' preference
rights under this subsection: The disposal agency, under regulations prescribed
by the Board, shall fix the price of each unit into which the property is subdivided
under subsection (e) after taking into consideration the then current market value,
the character of the property, and, if income-producing property, the estimated
earning capacity thereof. Before any such property is disposed of, except under
subsection (d), any veteran may apply for the purchase of any or all units of-
fered for sale at the price so fixed. The Board shall prescribe the time within
which application shall be made and shall give such notice thereof as it deems
reasonable to enable veterans to exercise their rights under this subsection. The
Board shall provide for the selection of the purchaser of each unit by lot from
among the applicants for the unit. If any applicant is selected as the purchaser
of more than one unit, he shall elect which one to take, whereupon the right to
purchase the remaining units shall go to the remaining applicants in the order in
which their names were drawn. No veteran may apply for the purchase of any
property under the provisions of this subsection if he has previously exercised a
preference right under this section and has acquired property pursuant thereto.
Sales to veterans under this subsection shall be upon such terms as the Board
ma prescribe,
eO In the case of the death of a person entitled under this section to rights
as a former owner or veteran, his spouse and children, in that order, shall succeed
to such rights of the decedent existing at the time of his death. Any preference
right under subsection (f) to which a person would have been entitled except for
his death while in the active military or naval service of the United States, shall
be extended to his spouse and children, in that order. No preference right may
be assigned or exercised by power of attorney or through a power to select except
as may be permitted by regulations prescribed by the Board in order to prevent
the loss of such right by the holder thereof.
[(h) A certificate by the disposal agency that the provisions of subsections (d),
(f), and (g) have been complied with in the case of any property and that no quail-
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 :INCSI&-PA7-Rq~qq 900QY011-7
FEDERAL PROPERTY AND ADM
fled applicant' has made application to exercise his privilege to purchase within
the time limits fixed by or pursuant to this Act, shall terminate all privileges to
purchase such property.
[(i) In the case of surplus real property which is classified as suitable for agri-
cultural use and which is not disposed of under subsection (d) or (f), such property
(after subdivision as provided in subsection (e) (1)) shall be disposed of insofar
as possible only to persons who expect to cultivate the land and to operate it for
a livelihood. The Department of Agriculture is authorized and directed, within
the limits of its current functions under the Bankhead-Jones Farm Tenant Act,
to extend needed financial and other assistance to persons eligible for such assist-
ance under the Bankhead-Jones Farm Tenant Act and the Servicemen's Read-
justment Act of 1944, in connection with the disposal of surplus agricultural lands
pursuant to this subsection.
under this section or under any other
t
l
proper
y
[(j) In the case of sales of rea
provision of this Act, the form of deed or instrument of transfer shall be approved
by .the Attorney General. Deeds or other instruments containing general or
special warranties of title may be issued and delivered to purchasers provided
such warranties have been recommended and approved by the Attorney General.
In determining whether general or special warranty deeds to properties may
be issued and delivered, the Attorney General is authorized to approve the
issuance and' delivery of warranty deeds where titles are subject to infirmities
of such character that in his opinion the interests of the United States will not
be jeopardized under its warranty.
[REPORTS TO CONGRESS
[SEc. 24. Within three months after the enactment of this Act, and thereafter
in January, April, July, and October of each year, the Board shall submit to the
Senate and House of Representatives a progress report on the exercise of its
authority and discretion under this Act, the status of surplus property disposition,
and such other pertinent information on the administration of the Act as will
enable the Congress to evaluate its administration and the need for amendments
and related legislation.
[TITLE OF PURCHASER
[SEC. 25. A deed, bill of sale, lease, or other instrument executed by or on
behalf of any Government agency purporting to transfer title or any other interest
in property under this Act shall be conclusive evidence of compliance with the
provisions of this Act insofar as title or other interest of any bona fide purchasers
for value, or lessees, as the case may be, is concerned.
[CIVIL REMEDIES AND PENALTIES
[SEc. 26. (a) Where any property is disposed of in accordance with this Act
and any regulations prescribed under this Act, no officer or employee of the Govern-
ment shall (1) be liable with respect to such disposition except for his own fraud
pr (2) be accountable for the collection of any purchase price which is determined
*4rrr to be uncollectible by the agency responsible therefor.
[(b) Every person who shall use or engage in or 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 bene-
fits from the United States or any Government agency in connection with the
disposition of property under this Act; or who enters into an agreement, combina-
tion, or conspiracy to do any of the foregoing-
[(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 costs 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 such person to the United States or any Government agency; or
[(3) shall, if the United States shall so elect, restore to the United States
the property thus secured and obtained and the United States shall retain as
liquidated damages any consideration given to the United States or any
Government agency for such property.
[(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 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,
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384RO01000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
shall wheresoever such act may have been done or committed, have full power
and jurisdiction to hear, try, and determine such suit.
[(d) The civil remedies provided in this section shall be in addition to all.
other criminal penalties and civil remedies provided by law.
[PRACTICE BY FORMER EMPLOYEES
[SEC. 27. No person employed by any Government agency, including com-
missioned officers assigned to duty in such agency, shall, during the period such
person is engaged in such employment or service, or for a period of two years after
the time when such employment or service has ceased, act as counsel, attorney,
or agent, or be employed as representative, in connection with any matter in-
volving the disposition of surplus property by the agency in which such person
was employed, if such person during his employment with such agency ratified,
approved, or authorized the disposition of any surplus property pursuant to the
provisions of this Act or recommended any such approval, authorization, or
ratification as part of his official duties. Any person violating the provisions of
this section shall be fined not more than $10,000, or imprisoned for not more than
one year, or both.]
STATUTE OF LIMITATIONS
SEC. 28. The first section of the Act of August 24, 1942 (56 Stat. 747), as
amended, is amended to read as follows:
"The running of any existing statute of limitations applicable to any offense
against the laws of the United States (1) involving defrauding or attempts to
defraud the United States or any agency thereof whether by conspiracy or not,,
and in any manner, or (2) committed in connection with the negotiation, procure-
ment, award, performance, payment for, interim financing, cancellation or other
termination or settlement, of any contract, subcontract, or purchase order which
is connected with or related to the prosecution of the present war, or with any
disposition of termination inventory by any war contractor or Government
agency, or (3) committed in connection with the care and handling and disposal
of property under the Surplus Property Act of 1944, shall be suspended until
three years after the termination of hostilities in the present war as proclaimed
by the President or by a concurrent resolution of the two Houses of Congress..
This section shall apply to acts, offenses, or transactions where the existing
statute of limitations has not yet fully run, but it shall not apply to acts, offenses,
or transactions which are already barred by provisions of existing law."
[MISCELLANEOUS PROVISIONS
[SEC. 29. Surplus property disposals may be made without regard to any pro-
vision in existing law for competitive bidding, unless the Board shall determine
that disposal by competitive bid will in a given case better effectuate the policy
of the Act.
[DISPOSITION OF PROCEEDS
[SEC. 30. (a) All proceeds from any transfer or disposition of property under
this Act shall be covered into the Treasury as miscellaneous receipts, except as
provided in subsections (b), (c), and (d) of this section.
[(b) Where the property transferred or disposed of was acquired by the use of
funds either not appropriated from the general fund of the Treasury or appropri-
ated from the general fund of the Treasury but by law reimbursable from assess-
ment, tax, or other revenue or receipts, then upon the request of the interested
agency the net proceeds of the disposition or transfer shall be credited to the reim-
bursable fund or appropriation or paid to the owning agency. As used in this
subsection the term "net proceeds of the disposition or transfer" means the pro-
ceeds of the disposition or transfer minus all expenses incurred for care and handling
and disposition or transfer.
[(c) To the extent authorized by the Board, any Government agency disposing
of property tinder this Act (1) may deposit, in a special account with the Treasurer
of the United States, such amount of the proceeds of such dispositions as it deems
necessary to permit appropriate refunds to purchasers when any disposition is
rescinded or does not become final, or payments for breach of any warranty, and
(2) may withdraw therefrom amounts so to be refunded or paid, without regard
to the origin of the funds withdrawn.
[(d) Where a contract or subcontract authorizes the proceeds of any sale of
property in the custody of the contractor or subcontractor to be. credited to the
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040.011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 45
price or cost of the work covered by such contract or subcontract, the proceeds
of any such sale shall be credited in accordance with the contract or subcontract.
[(e) Where the disposal agency acquires or retains any mortgage, lien, or other
interest as security in connection with any transfer or disposition of property
under this Act, the disposal agency shall retain, preserve, and manage such
:security and may enforce and settle any right of the Government with respect
thereto in such manner and upon such terms as it deems in the best interest of
the Government. The Board may prescribe regulations to govern the exercise
of the authority granted under this subsection.
USE OF APPROPRIATED FUNDS
[Sec. 31. (a) Any Government agency is authorized to use for the disposition
of property under this Act, and for its care and handling pending such disposition,
any funds heretofore or hereafter appropriated, allocated, or available to it for
the purpose of production or procurement of such property.
[(b) Any Government agency is authorized to use for the acquisition of any
surplus property under this Act any funds heretofore or hereafter appropriated,
allocated, or available to it for the acquisition of property of the same kind.
[(c) There are authorized to be appropriated such sums as may be necessary
or appropriate for administering the provisions of this Act.
y~` [DISPOSITIONS OUTSIDE UNITED STATES
[SEC. 32. (a) Nothing in this Act shall limit or affect the authority of com-
manders in active theaters of military operations with respect to property in
their control.
[(b) (1) The provisions of this Act shall be applicable to disposition of property
within the United States and elsewhere, but the Secretary of State may exempt
from some or all of the provisions hereof dispositions of property located outside
of the continental United States, Hawaii, Alaska (including the Aleutian Islands),
Puerto Rico, and the Virgin Islands, whenever he deems that such provisions
would obstruct the efficient and economic disposition of such property in accord-
ance with the objectives of this Act. In addition to the authority conferred by
section 15 of this Act, the Department of State may dispose of surplus property
located outside the continental United States, Hawaii, Alaska (including the
Aleutian Islands), Puerto Rico, and the Virgin Islands, for foreign currencies or
credits, or substantial benefits or the discharge of claims resulting from the
compromise, or settlement of such claims by any Government agency in accordance
with the law, whenever the Secretary of State determines that it is in the interest
of the United States to do so and upon such terms and conditions as he may deem
proper. Any foreign currencies or credits acquired by the Department of State
pursuant to this subsection 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.]
'mil (2) In carrying out the provisions of this section, the Secretary of State is hereby
authorized to enter into an executive agreement or agreements with any foreign
government for the use of currencies, or credits for currencies, of such government
acquired as a result of such surplus property disposals; for the purpose of pro-
viding, by the formation of foundations or otherwise, for (A) financing studies,
research, instruction, and other educational activities of or for American citizens
in schools and institutions of higher learning located in such foreign country, or
of the citizens of such. foreign country in American schools and institutions of
higher learning located outside the continental United States, Hawaii, Alaska (in-
cluding the Aleutian Islands), Puerto Rico, and the Virgin Islands, including pay-
ment for transportation, tuition, maintenance, and other expenses incident to
scholastic activities; or (B) furnishing transportation for citizens of such foreign
country who desire to attend American schools and institutions of higher learning
in the continental United States, Hawaii, Alaska (including the Aleutian Islands),
Puerto Rico, and the Virgin Islands, and whose attendance will not deprive citi-
zens of the United States of an opportunity to attend such schools and institutions:
Provided, however, That no such agreement or agreements shall provide for the use
of an aggregate amount of the currencies, or credits for currencies, of any one
country in excess of $20,000,000 or for the expenditure of the currencies, or credits
for currencies, of any one foreign country in excess of $1,000,000 annually at the
official rate of exchange for such currencies, unless otherwise authorized by Con-
gress, nor shall any such agreement relate to any subject other than the use and
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
46 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES.ACT
expenditure of such currencies or credits for currencies for the purposes herein set
forth: Provided further, That for the purpose of selecting students and educational
institutions qualified to participate in this program, and to supervise the exchange
program authorized herein, the President of the United States is hereby authorized
to appoint a Board of Foreign Scholarships, consisting of ten members, who shall
serve without compensation, composed of representatives of cultural, educational,
student and war veterans groups, and including representatives of the United
States Office of Education, the United States Veterans' Administration, State
educational institutions, and privately endowed educational institutions: And pro-
vided further, That in the selection of American citizens for study in foreign coun-
tries under this paragraph preference shall be given to applicants who shall have
served in the military or naval forces of the United States during World War I or
World War II, and due consideration shall be given to applicants from all geo-
graphical areas of the United States. The Secretary of State shall transmit to the
Congress not later than the 1st day of March of each year a report of operations
under this paragraph during the preceding calendar year. Such report shall in-
clude the text of any agreements which have been entered into hereunder during
the preceding calendar year, and shall specify the names and addresses of American
citizens who are attending schools or institutions of higher learning in foreign
countries pursuant to such agreements, the names and locations of such schools
and institutions, and the amounts of the currencies or credits for currencies ex-
pended for any of the purposes under this paragraph in each such foreign country
during the preceding calendar year. (As amended by Public Law 584, 79th
Congress (60 Stat. 754).)
[RESTRICTIONS ON IMPORTATION OF SURPLUS PROPERTY INTO UNITED STATES
[SEC. 33. (a) It is the policy of this Act to prohibit, so far as feasible and necess
sary to carry out the objectives of this Act, the importation into the United State-
of surplus property sold abroad or for export. The Board shall prescribe regula-
tions to carry out such policy, and the importation of surplus property into the
United States is hereby prohibited to the extent specified in such regulations.
The Secretary of the Treasury is authorized and directed to provide for the enforce-
ment of such regulations.
[ (b) Surplus property sold to members of the armed forces abroad may be
brought into the United States without regard to the provisions of subsection (a)
if brought in by the original purchaser and upon certificate by him that he is
bringing the property into the United States for his personal use.
[SAVING PROVISIONS
[SEC. 34. (a) The authority conferred by this Act is in addition to any author-
ity conferred by any other law and shall not be subject to the provisions of any
law inconsistent herewith. This Act shall not impair or affect any authority for
the disposition of property under any other law, except that the Board may pre-
scribe regulations to govern any disposition of surplus property under any such
authority to the same extent as if the disposition were made under this Act, when-
ever it deems such action necessary to effectuate the objectives and policies of this
Act.
[(b) Nothing in this Act shall impair or affect the provisions of the Contract
Settlement Act of 1944; the Emergency Price Control Act of 1942, as amended;
the Act of October 2, 1942 (ch. 578, 56 Stat. 765), as amended; section 301 of the
Second War Powers Act, 1942; the Act of March 11, 1941 (55 Stat. 31), as amended;
the Tennessee Valley Authority Act of 1933, as amended; Public Law 849, Seventy-
sixth Congress, as amended, respecting war housing and facilities; the Act of
June 7, 1939, relating to the acquisition of strategic and critical materials (53 Stat.
811); the Trading With the Enemy Act as amended;, section 43 of the Bankhead-
Jones Farm Tenant Act, as amended; Acts supplemental to any of the foregoing;
any law regulating the exportation of property from the United States; the
internal-revenue laws; the statutes relating to the public lands; or any criminal
law of the United States.
[(c) Nothing in this Act shall be deemed to impair or modify any contract, or
any term or provision of any contract, without the consent of the contractor, if
the contract or the term or provision thereof is otherwise valid.
[TEMPORARY APPLICABILITY OF EXISTING PROCEDURES
[SEC. 35. All policies and procedures relating to surplus property prescribed
by the Surplus War Property Administration, created by Executive Order Num-
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 47
bored 9425, dated February 19, 1944, or any other Government agency, in effect
upon the effective date of this Act, and not inconsistent with this Act, shall remain
in full force and effect unless and until superseded by regulations prescribed under
[TERMINATION INVENTORIES
[SEC. 36. (a) The Congress recognizes that upon termination of war contracts,
the plants of war contractors will be filled with vast termination inventories
which until removed or disposed of will prevent or interfere with the resumption
of civilian production and reemployment, and that so far as possible decisions
should be made in advance of termination for the disposition and removal of such
termination inventories without delay when termination occurs. Measures
should be taken to realize the greatest possible value from. termination inventories.
[(b) In advance of termination, to the maximum extent practicable-
[(1) each contracting agency shall advise its war contractors of the classes
of termination inventory the contracting agency will wish to retain for mil-
itary purposes; and
[ (2) the Board shall establish procedures for advising war contractors as
to the care and handling and disposition of termination inventory not re-
quired for military purposes, in order to effectuate the policies stated in
subsection (a) of this section and the policies of section 11 (a) (3) of the
Contract Settlement Act of 1944.
[(c) To the extent that it is impracticable so to advise war contractors in
advance of termination, the contracting agencies and the Board shall be pre-
pared to give such advice as soon as practicable after termination of the war'
contract.
[(d) The Board and the Director of Contract Settlement shall cooperate in
carrying out the provisions of this section.
[(e) For the purposes of this section, the terms "contracting agency", "termi-
nation inventory", and "war contractor" shall have the meanings assigned to
such terms by section 3 of the Contract Settlement Act of 1944.
[INCREASE IN LOAN RATE ON COTTON
[SEC. 37. (a) Section 8 (a) (1) of the Stabilization Act of 1942, as amended'
(relating to loans upon certain agricultural commodities), is amended by striking
out "at the rate in the case of cotton of 92% per centum" and inserting in lieu
thereof "at the rate in the case of cotton of 95 per centum".
[(b) The amendment made by this section shall be applicable only with respect
to crops harvested after December 31, 1943, but shall not apply to crops planted'
after 1944. In the case of loans made under such section 8 upon any of the 1944
crop of cotton before the amendment made by this section takes effect, the Com-
modity Credit Corporation is authorized and directed to increase or provide for-
increasing the amount of such loans to the amount of the loans which would have
been made if the loan rate specified in the amendment made by this section had
been in effect at the time the loans were made.
[EXPIRATION DATE
[SEc. 38. Unless extended by law, this Act shall expire at the end of three years
following the date of the cessation of hostilities in the present war. For the pur-
poses of this section the term "date of the cessation of hostilities in the present
war" means the date proclaimed by the President as the date of such cessation, or'
the date specified in a concurrent resolution of the two Houses of Congress as the.
date of such cessation, whichever is the earlier.
[SEPARABILITY OF PROVISIONS
[SEc. 39. If any provision of this Act, or the application of such provision to,
any person or circumstance, is held invalid, the remainder of this Act or the
application of such provision to persons or circumstances other than those as to
which it is hold invalid, shall not be affected thereby.]
Section 502 (a) (1), * * * and sections 501 and 502 of Reor-
ganization Plan No. 1 of 1947 * * *:
(SEC. 501. War Assets Administration and War Assets Administrator.-All'
functions of the War Assets Administration and of the War Assets Administrators
established by Executive Order No. 9689 of January 31, 1946, are transferred to,
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
48 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
the Surplus Property Administration and the Surplus Property Administrator,
respectively, which were created by the Act of September 18, 1945 (59 Stat. 533,
ch. 368). The latter agencies shall hereafter be known as the War Assets Admin-
istration and the War Assets Administrator, respectively. The agencies estab-
lished by Executive Order No. 9689 are abolished. The functions transferred
by this section shall be performed by the War Assets Administrator or, subject
to his direction and control, by such officers and agencies of the War Assets
Administration as he may designate: Provided, That the functions specifically
vested in the Surplus Property Administrator by the Surplus Property Act of
1944, as amended, and by the Act of September 18, 1945, shall be performed by
'the War Assets Administrator or by the Associate Administrator as provided in
section 502 hereof.
[Ssc. 502. Associate War Assets Administrator.-There shall be in the War
Assets Administration an Associate War Assets Administrator, who shall be
appointed by the President by and with the advice and consent of the Senate
and shall receive compensation at the rate of $10,000 per annum. The Associate
War Assets Administrator shall act for the War Assets Administrator in all
matters during the absence or disability of the Administrator, or in the event
of a vacancy in the office of Administrator, and shall perform such other duties
as the Administrator may prescribe.]
Section 502 (a) (2): That portion of the Act entitled "An Act Am.
making supplemental appropriations for the Executive Office and
sundry independent executive bureaus, boards, commissions, and
offices, for the fiscal year ending June 30, 1949, and for other purposes",
approved June 30, 1948 (Public Law 862, Eightieth Congress), as
amended, appearing under the caption "Surplus Property Disposal":
["SURPLUS PROPERTY DISPOSAL
[Effective February 28, 1940, the Office of War Assets Administrator is abolished
and the War Assets Administration shall cease to exist as an agency of the Govern-
ment and its affairs, functions, and responsibilities shall thereafter be disposed of
and liquidated in accordance with the following:
[(1) All powers, authority, functions and responsibilities of the War Assets
Administrator and of the War Assets Administration pertaining to surplus real
property, which as used herein shall mean land and interests in land together with
buildings, fixtures, facilities, utilities, equipment, and other property located
thereon or adapted to use in connection with such property for its highest and best
use, and all right, title and interest in notes, mortgages, and contracts of sale or
lease in connection with surplus real property shall be transferred to the Recon-
struction Finance Corporation, to be held and disposed of by such Corporation
in accordance, except as provided herein, with the terms of the Surplus Property
Act of 1944, as amended;
[(2) All aircraft and aircraft parts shall be transferred to the Department of
the Air Force to be held and disposed of by such Department in accordance, except
as rovided herein, with the terms of the Surplus Property Act of 1944, as amended;
(3) A]1 personal property (other than aircraft and aircraft parts), except such
as may be necessary to the liquidation of the War Assets Administration or the
exercise of the functions transferred herein, shall be transferred to the Bureau of
Federal Supply, Treasury Department, to be held and disposed of by such Bureau
in accordance, except as provided heroin, with the terms of the Surplus Property
Act of 1944, as amended;
[(4) Except as necessary to the administration of the functions herein trans-
ferred to the Department of the Air Force, the Reconstruction Finance Corpora-
tion, and the Bureau of Federal Supply, all administrative property, records, and
accounts of the War Assets Administration shall be transferred to the Treasury
Department for liquidation of the affairs of the War Assets Administration;
[(5) Such administrative property, records, and personnel of the War Assets
Administration as determined by the Director of the Bureau of the Budget to
be necessary to the administration of any of the functions herein transferred shall
be transferred to the agency to which such function is transferred: Provided, That
the right to retention in employment by the Government of the personnel so
transferred shall be neither greater nor less than such right would have been had
the War Assets Administration continued as an Independent agency of the
Government;
. [(6) The provisions of section 9 of the Reorganization Act of 1945 (Public
Law 263, Seventy-ninth Congress) shall apply to the transfers effected by this
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 49
paragraph in like manner as if such transfer were a reorganization of the agencies
and functions concerned under the provisions of that Act;
[(7) Priorities and preferences, provided for in the Surplus Property Act of 1944,
as amended, shall not continue beyond August 31, 1948, as to the disposal of
personal property but shall continue as to the disposal of real estate;
[(8). The agencies herein authorized to dispose of surplus personal property
may, after the date of enactment hereof, transfer any of such property without
charge to any other agency of the Government if such property, by such transfer,
can be put to public use by the transferee agency;
[(9) The agencies herein authorized to dispose of surplus property shall proceed
with due diligence and use all reasonable means within the purview of this Act
and the Surplus Property Act of 1944, as amended, to accomplish such purpose
at the earliest practicable date and shall report to the Committees on Appropria-
tions of the Senate and the House of Representatives at the end of each month
as to progress made;
[(10) The Secretary of the Treasury, the Secretary of the Air Force, or the
Chairman of the Board of Directors of the Reconstruction Finance Corporation
may authorize the abandonment, destruction, or donation to public bodies of
personal property herein transferred to their respective agencies which has no
commercial value or the estimated cost of care and handling of which would
exceed the estimated proceeds from its sale;
[(11) The Surplus PropertyAct of 1944, as amended, shall not apply to property
of the Government which has not been declared surplus under the terms of such
Act as of the date of enactment hereof, and any such property determined to be
surplus shall be disposed of in accordance with the terms of other existing law,]
Section 502 (a) (3): The Act entitled "An Act to authorize the
Secretary of War to dispose of material no longer needed by the Army,"
approved February 28, 1936 (49 Stat. 1147; 10 U. S. C. 1258):
[That the Secretary of War be, and he is hereby, authorized in his discretion to
dispose of, without charge, except for costs of transportation, handling, and pack-
ing, to such schools as he may select, for use in courses of vocational training and
instruction, such machinery, mechanical equipment, and tools as may be obsolete
or no longer needed by the Army.]
Section 502 (a) (4) : The Act entitled "An Act to authorize the
Secretary of the Navy to dispose of material no longer needed by the
Navy," approved May 23, 1930, as amended (46 Stat. 378; 34 U. S.
C. 435c) :
[That the Secretary of the Navy be, and he is hereby, authorized in his discretion
to dispose of, without charge, except for transportation and delivery, to properly
accredited schools, colleges, and universities, for use in courses of vocational
training and instruction, such machinery, mechanical equipment, tools, boats,
and boat equipment as may be obsolete or no l oonger needed by the Navy.]
Section 502 (a) (5): Section 5 of the Act of July 11, 1919 (41 Stat.
67; 40 U. S. C. 311):
[That the heads of the several executive departments and other responsible
officials, in expending appropriations contained in this or any other Act, so far as
possible shall purchase material, supplies, and equipment, when needed and funds
are available, from other services of the Government possessing material, supplies,
and equipment no longer required because of the cessation of war activities.
It shall be the duty of the heads of the several executive departments and other
officials, before purchasing any of the articles described herein, to accertain from
the other services of the Government whether they have articles of the character
described that are serviceable, and articles purchased by one service from another,
if the same have not been used, shall be paid for at a reasonable price not to
exceed actual cost, and if the same have been used, at a reasonable price based
upon length of usage. The various services of the Government are authorized
to sell such articles under the conditions specified, and the proceeds of such sales
shall be covered into the Treasury as a miscellaneous receipt: Provided, That
this section shall not be construed to amend, alter, or repeal the Executive order
of December 3, 1918, concerning the transfer of office material, supplies, and
equipment in the District of Columbia falling into disuse because of the cessation
of war activities.]
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
.5j0 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
Section 502 (a) (6) : Section 1 of the Act of December 20, 1928 (45
,Scat. 1030; 40 U. S. C. 311a) :
[Provided, That the Executive order of December 3, 1918, shall apply to all
materials, supplies, and equipment now or hereafter becoming surplus or unusable
in any executive department of independent Government establishment in the
District of Columbia and shall continue in effect hereafter without modification,
-except that the price's charged for reissued surplus materials, supplies, and equip-
ment shall be the estimated current market value at time of issue, and that the
proceeds from the transfer of appropriations thereunder shall be covered into the
Treasury as miscellaneous receipts: Provided further, That the heads of the
executive departments and independent establishments and the Commissioners of
the District of Columbia hereafter shall cooperate with the Secretary of the
Treasury in connection with the storage and delivery of material, supplies, and
equipment transferred under the foregoing provisions.]
Section 502 (a) (7) : The Act entitled "An Act to authorize the
"Secretary of the Army, the Secretary of the Navy, and the Secretary
..of the Air Force to donate excess and surplus property for educational
-purposes", approved July 2, 1948 (Public Law 889, Eightieth Congress) :
Aft
[That the Secretary of the Army, Secretary of the Navy and Secretary of the
Air Force are hereby authorized in their discretion to donate for educational
purposes in the States, Territories, and possessions without cost, except for costs
of packing, transportation, and delivery, such equipment, materials, books, and
other supplies as may be obsolete or no longer needed by the Army, Navy, or
Air Force and which any such Secretary or the United States Commissioner of
Education, Federal Security Agency, may consider usable for educational purposes.
[SEC. 2. All property which the Secretary of, the Army, Secretarof the Navy,
or Secretary of the Air Force may so donate, except that donated-in accordance
with section 3 hereof, shall be allocated on the basis of needs and utilization by
-the United States Commissioner of Education for transfer by the owning agency
directly to schools, colleges, or universities or to State Departments of Education,
for distribution by the State to tax-supported schools, colleges, and universities
and other nonprofit schools, colleges, and universities which have been held exempt
from taxation under section 101 (6) of the Internal Revenue Code; except in
any State where another agency is designated by State law for such purposes
such transfer shall be made to said agency for such distribution within the State.
[SEC. 3. The Secretary of the Army, the Secretary of the Navy, or the Secre-
tary of the Air Force may donate such of the property specified in section 1 hereof
as they consider usable for educational purposes to those educational activities
-that are of special interest to the armed services, such as maritime academies or
military, naval, air force, or coast guard preparatory schools.]
Section 502 (a) (8) : Section 203 of the Act of June 26, 1943. (57
:,Stat. 195, as amended; 5 U. S. C. 118d-1):
[In purchasing motor-propelled or animal-drawn vehicles or tractors, or road,
agricultural, manufacturing, or laboratory equipment, or boats, or parts, acces-
-sories, tires, or equipment thereof, or any other article or item the exchange of
which is authorized by law, the head of any department or his duly authorized
-representative may exchange allowances or proceeds of sales in such cases in whole
or in part payment therefor: Provided, That any transaction carried out under
-the authority of this section shall be evidenced in writing.]
Section 502 (a) (9): The Act of April 15, 1937 (50 Stat. 64; 5 U. S. C.
118d):
;[That any government department is authorized to exchange used parts of
mechanical refrigerators, hermetically sealed refrigerating units, temperature-
-control devices and watchmen's clocks as payment, in full or in part, for new or
-reconditioned parts to be used for the same purpose as those proposed to be
.exchanged.]
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 51
Section 502 (a) (10): The second proviso contained in the paragraph
of the Act of August 10, 1912 (37 Stat. 296; 5 U. S. C. 545), headed
"Contingent expenses, Department of Agriculture":
[Provided further that the Secretary of Agriculture may exchange typewriters
and computing, addressing, and duplicating machines urchased from any lump-
fund appropriation of the Department of Agriculture.
Section 502 (a) (11): The second proviso contained in the twentieth
paragraph of section 1 of the Act of March 2, 1917 (39 Stat. 973;
5 U. S. C. 494) :
That not to exceed $200,000 of applicable appropriations made herein for the
Bureau of Indian Affairs shall be available for the maintenance, repair, and
operation of motor-propelled and horse-drawn passenger-carrying vehicles for the
use of superintendents, farmers, physicians, field matrons, allotting, irrigation,
and other employees in the Indian field service: Provided, That not to exceed
$15,000 may be used in the purchase of horse-drawn passenger-carrying vehicles,
and not to exceed $30,000 for the purchase of motor-propelled passenger-carrying
vehicles, and that such vehicles shall be used only for official service: [Provided
further, That the Secretary of the Interior may hereafter exchange automobiles
V*mW in part payment for new machines used for the same purpose as those proposed
to be exchanged].
Section 502 (a) (12) : The twenty-sixth paragraph under the heading
"National Parks" of the Act of January 24, 1923 (42 Stat. 1215; 16
U. S. C. 9):
[The National Park Service may exchange hereafter, as part consideration, in
the purchase of new equipment, motor vehicles, and any other equipment for
use in the national parks.]
Section 502 (a) (13) : The fifth paragraph under the heading "Exper-
iments and. demonstrations in livestock production in the cane-sugar
and cotton districts of the United States" of the Act of June 30, 1914
(38 Stat. 441; 5 U. S. C. 546) :
[The Secretary of Agriculture may hereafter exchange general scientific apparatus
and laboratory equipment purchased from any appropriation of the Department
of Agriculture.]
Section 502 (a) (14) : The proviso contained in the second paragraph
under the heading "Library, Department of Agriculture" of the Act
of March 4, 1915 (38 Stat. 1107; 5 U. S. C. 548) :
[Provided, That hereafter the Secretary of Agriculture may exchange books and
periodicals of the library not needed for permanent use for other books and
periodicals. 3
Section 502 (a) (15) : The second proviso contained in the second
paragraph under the heading "Clothing and camp and garrison equi-
page" of section 1 of the Act of August 29, 1916 (39 Stat. 635; 10
U. S. C. 1271) :
[Provided further, That hereafter sewing machines and other labor-saving machin-
ery used in the manufacture of clothing and equipage, motor trucks and passenger-
carrying vehicles, and band instruments, may be exchanged in part payment for
new machines, vehicles, and instruments used for the same purpose as those pro-
posed to be exchanged].
Section 502 (a) (16): The Act of May 11, 1939 (53 Stat. 739; 10
U. S. C. 1271a):
[That the Secretary of War be, and he is hereby, authorized to exchange obsolete,
unsuitable, and unserviceable machines and tools, and parts thereof, pertaining
to the manufacture or repair of ordnance materiel for use in the national defense,
for new machines and tools of the same or equivalent general character.]
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 ApprQyed For Release 2001/08/15,: CIA-RDP57-00384R001000040011-7
55 FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
Section 502 (a) (17): The fifth paragraph under the heading "Office
of the Chief Signal Officer" of the Act of May 12, 1917 (40 Stat. 43,.
as amended; 10 U. S. C. 1272):
[That subject to the approval of the Secretary of War, motor-propelled vehicles,
airplanes, engines, and parts thereof, balloons, and appurtenances may be
exchanged in part payment for new equipment of the same or similar character
to be used for the same purposes as those proposed to be exchanged.]
Section 502 (a) (18): The third proviso contained in the second
paragraph under the heading "Office of the Chief Signal Officer" of,
the Act of March 4, 1915 (38 Stat. 1064; 10 U. S. C. 1273):
[Provided further, That hereafter the Signal Corps may exchange typewriters
and adding machines in the purchase of similar equipment.]
Section 502 (a) (19): The fourteenth paragraph under the heading
"Smithsonian Institution" of section 1 of the Act of March 3, 1915
(38 Stat. 839; 20 U. S. C. 66):
[Hereafter the Government branches under the direction of the Smithsonian
Institution may exchange typewriters, adding machines, and other labor-saving
devices in part payment for like articles.]
Section 502 (a) (20): The second pargaraph under the heading
"Government hospital for the insane" of section 1 of the Act of
August 1, 1914 (38 Stat. 649; 24 U. S. C. 173):
[Authority is granted to sell or exchange condemned typewriting machines,
laundry machinery, and other equipment, applying the proceeds therefrom to
replacing new equipment for the Government Hospital for the Insane.]
Section 502 (a) (21): The second paragraph under the heading
"Saint Elizabeths Hospital" of section 1 of the Act of June 12, 1917
(40 Stat. 153; 24 U. S. C. 174):
[Authority is granted hereafter to exchange laundry machinery and other equip-
ment in purchasing new equipment of the same or like character.]
Section 502 (a) (22): The proviso contained in the second paragraph
under the heading "Bureau of Supplies and Accounts" of the Act of
August 22, 1912 (37 Stat. 346; 34 U. S. C. 531a):
[Provided, That hereafter worn-out typewriting and. computing machines for the
Naval Establishment may be exchanged as a part of the purchase price of new
ones. ]
Section 502 (a) (23): The second proviso of the first paragraph
under the heading "Bureau of Yards and Docks" of the Act of August
29, 1916 (34 U. S. C. 532):
[Provided further, That hereafter worn-out motor-propelled vehicles for the
Naval Establishment may be exchanged as a part of the purchase price of new
ones.]
Section 502 (a) (24): The proviso contained in the second paragraph
under the heading "Maintenance, Quartermaster's Department,
Marine Corps" of the Act of March 4, 1917 (39 Stat. 1189; 34 U. S. C.
723) :
[Provided, That hereafter worn-out sewing machines, machinery, rubber tires,
and band instruments may be exchanged in part payment for the puuchase of
like articles.]
Section 502 (a) (25) : The twentieth paragraph under the heading
"Bureau of Mines" of section 1 of the Act of July 19, 1919 (41 Stat.
200; 40 U. S. C. 118) :
[Authority is hereby granted to the Secretary of the Interior to exchange, as
part consideration in the purchase of new equipment, motor vehicles and any
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approved For Release 2001/08/15 : CIA-RDP57-00384R00100PP40011-7
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 00
other equipment used by said fuel yards.] (Functions in respect to fuel yards
were subsequently transferred by Executive Orders to the Bureau of Federal
:Supply in the Treasury Department.)
Section 502 (a) (26) : The first sentence of section 5 of the Act of
March 4, 1915 (38 Stat. 1161; 41 U. S. C. 26) :
;[That the executive departments and other Government establishments and all
branches of the public service may hereafter exchange typewriters, adding
machines, and other similar labor-saving devices in part payment' for new
machines used for the same purpose as these proposed to be exchanged.]
Section 502 (a)'(27) : The third paragraph under the heading "Inter-
state Commerce Commission" of section 1 of the Act of August 1,
1914 (38 Stat. 627; 49 U. S. C. 58):
[Hereafter the Interstate Commerce Commission may exchange typewriters
adding machines, and other labor-saving devices in part payment for like articles. I
Section 502 (a) (28) : The Act of June 6, 1941 (55 Stat. 247; 14
U. S. C. 31b) :
[That the Secretary of the Nai y, insofar as Navy property is concerned, and
the Secretary of the Treasury, insofar as Coast Guard property is concerned, are
respectively authorized to exchange motor-propelled vehicles, airplanes, engines,
and parts thereof, and obsolete, unsuitable, and unserviceable machines and
tools, and parts thereof, in part payment for new equipment of the same or similar
character as those proposed to be exchanged.]
Section 502 (a) (29): The word "proportionate" and the words
"including, breaking, shrinkage, transportation, cost of handling, by
the Treasury Department, and inspection", appearing in section 2, of
the Act of February 27, 1929 (ch. 354, 45 Stat. 1342; 41 U. S. C.
(7b)):
SEc. 2. That each executive department and independent establishment sham
furnish from time to time, when called on to do so, estimates of its requirements
for inclusion in purchases which it is proposed to have made by the Secretary of
the Treasury, and there shall be reserved from proper appropriations. sufficient
amounts in each case to reimburse the general supply fund hereinafter created.
The General Supply Committee shall charge the [proportionate] cost of supplies,
[including breakage, shrinkage, transportation, cost. of handling by the Treasury
Department, and inspection.,] and bill the same to each requisitioning depart-
ment; and each requisitioning department and independent establishment shall
reimburse said, general supply fund out of its appropriation upon proper vouchers.
Section 502 (b): The provisions of the first, third, and fifth para-
%wool of section 1 of Executive Order Numbered 6166 of June 10,
1933, are hereby superseded, insofar as they relate to any function
now administered-by the Bureau of Federal Supply except functions
with respect to standard contract forms:
[SECTION 1. PROCUREMENT
[The function of determination of policies and methods of procurement,
warehousing, and distribution of property, facilities, structures, improvements,
machinery, equipment, stores, and supplies exercised by any agency is transferred
to a Procurement Division in the Treasury Department, at the head of which
shall be a Director of Procurement.
[In respect of any kind of procurement, warehousing, or distribution fo dr ant
agency the Procurement Division may, with the approval
(a) undertake the performance of such procurement, warehousing, or distribution
itself, or (b) permit such agency to perform such procurement, warehousing, or
distribution, or (c) entrust such performance to some other agency, or (d) avail
itself in part of any of these recourses, according as it may deem desirable in the
interest of economy and efficiency. When the Procurement Division has pre-
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7
 Approvi Fob]89 ,sT~/~ C~~i4M RDPRA OOE 8S R00 EOOOOT 0011-7
scribed the manner of procurement, warehousing, or distribution of any thing
no agency shall thereafter procure, warehouse, or distribute such thing in any
manner other than so prescribed.
[The Procurement Division shall also have control of all property,k facilities,
structures, machinery, equipment, stores, and supplies not necessary to the work
of any agency; may have custody thereof or entrust custody to any other agency;
and shall furnish the same to agencies as need therefor may arise.]
*
0
Approved For Release 2001/08/15 : CIA-RDP57-00384R001000040011-7