AMENDING SECTION 602 OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949 WITH RESPECT TO THE UTILIZATION AND DISPOSAL OF EXCESS AND SURPLUS PROPERTY UNDER THE CONTROL OF EXECUTIVE AGENCIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100190004-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: November 17, 2016
• Document Release Date: August 6, 2000
• Sequence Number: 4
• Publication Date: July 28, 1955
• Content Type: REGULATION

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84TH CONGRESS SENATE EFFORT
1st session No. 1182
AMENDING SECTION 602 OF TILE FEDERAL PROPERTY AND AD-
MINISTRATIVE SERVICES ACT OF 1949 WITH RESPECT TO THE
UTILIZATION AND DISPOSAL OF EXCESS AND SURPLUS PROP-
ERTY UNDER THE CONTROL OF EXECUTIVE AGENCIES
JULY 28, 1955.--Ordered to be printed
Mr. KENNEDY, from the Committee on Government Operations, sub-
mitted the following
REPORT
The Committee on Government Operations, to whom was referred
the bill (S. 2591) to amend section 602 of the Federal Property and
Administrative Services Act of 1949 with respect to the utilization
and disposal of excess and surplus property under the control of execu-
tive agencies, having considered the same, report favorably thereon,
with amendments, and recommend that the bill, as amended, do pass.
The amendments approved by the committee are as follows:
(1) Page 2, line 14, strike the word "inplace." S. 2591, as origi-
nally drafted may have been construed to restrict TVA's disposal of
power facilities to inplace or stationary facilities. It is the corn-
mittee's conclusion that TVA. should retain disposal authority ovei-
movable power equipment facilities, such as small generators,. etc.,
where disposal is in connection with a specific statutory disposal
program.
(2) Page 2, line 16, strike the words "to power distributors."' It
is the judgment of the committee that the restriction "to power
distributors" would too severely limit TVA's disposal authority,
since the Authority may have occasion to transfer equipment, facili-
ties, or interests in realty to other than "power distributors" in ac-
cordance with statutory programs undertaken by it, for example,
services to industrial firms, etc.
(3) Page 3, line 11, delete the following language, beginning with
the word "Each" through line 16, ending with the word "therefor-"
25X1X8
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2 UTILI21ATION AND DISPOSAL, OF CERTAIN SURPLUS PROPERTY
The two provisions eliminated by the amendment are not necessary
to the fullment of the objectives of S. 2591. It is not necessary to
require publication of an Executive order in the Federal Register 30
days prior to the issuance thereof because before nn Executive order
rs Issued, the viewpoint and suggestions of all affected executive
agencies concerned are obtained. Except in emergencies agencies
affected are made fully aware of a forthcoming Executive order on
the average of 2 to 4 weeks before issuance of the order, the staff of
the Bureau. of the Budget advises.
Annual reports to the Congress upon Executive orders issued under
the authority granted the President by S. 2591 are not considered
essential to the objectives of the bill since all Executive orders are
published in the Federal Register and are available to the Congress,
committees of the Congress, or Members of the Congress at any
i;ime.
The primary purpose of S. 2591 is to amend the Federal Property
Lnd Administrative Services Act of 1949, as amended (Public Law
152, 81st Cong., 63 Stnt. 377) so as to vest in the Administrator of the
General Services Administration exclusive authority with respect to
~. e utilization and disposal of excess and surplus property, real and
personal, which is under the control of any executive agency, except
:is hereafter noted.
The bill would do this by removing present statutory exemptions of
certain executive departments and agencies from the General Services
Adirurlistrator's authority as set forth in subsection 602 (d), para-
graphs (1) through (I 33) of the Federal Property aid Administrative
;services Act of 1949, as amended. Specifically, the bill would make
certain exemptions in subsection 602 (d) of Public Law 1.52, the
i+ederal Property and administrative Services Act of 1949 as amended,
inapplicable to section 202 (property utilization) ; section 203 (disposal
of surplus property); and section 204 (procedures for transfer or
disposition of property) of the act.
Although eliminating statutory exemptions (with the exceptions
hereafter noted) the bill would give the President the power to make
such specific exemptions from the exercise by the Administrator of
txeneral Services of the authority vested in him, as the President
deems necessary in the public interest.
In summary, the bill eliminates statutory exerptions, with the
exceptions hereafter noted, but empowers the President to continue
existing exemptions, modify those now in existence, or impose new
ones by Executive order.
USTIFICATION FOR VESTING AUTHORITY IN THE GENERAL SERVICES
ADMI'TISTRATION
The Federal Property and Ad ininistrative Services Act of 1949 was
enacted and the General Services Administration was created, among
other reasons, to center, as far as feasible, in one administration,
authority governing the utilization of property, the disposal of sur-
plus property, and the, transfer or disposition of property between
txovernment agencies.
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UTILIZATION AN D. A O' P S L
However, certain executive departments and agencies, and officers
and functions thereof, such as the Atomic Energy Commission, the
Tennessee Valley Authority, the Department of Agriculture, the
Central Intelligence Agency, and others, were exempted completely
or partially from sections 202, 203, and 204 of the act which pertain
to General Services Administration's authority governing utilization
and disposal of property.
Agencies were granted exemptions by the Congress from these pro-
visions of Public Law 152 for several reasons, among them: (A) The
agencies convinced Congress they could better dispose of their own
surplus property. (B) The Congress believed that the national secur-
ity would be better served if certain agencies retained authority to
dispose of certain types of property. (C) Certain types of property
(for example, contaminated materials) could best be disposed of by
the owning agencies.
After 5 years of experience under the provisions of subsection 602
(d) authorities upon disposal of surplus Government property, such
as the General Services Administration, the Commission on Organiza-
tion of the Executive Branch of the Government (the Hoover Com-
mission, whose recommendations appear elsewhere in this report) and
other organizations which have studied the matter, have come to the
conclusion that the best interests of the Government would be served
If the majority of the statutory exemptions were removed, and the
General Services Administrator given enlarged authority governing
utilization and disposal programs.
The Hoover Commission based its recommendations on the finding
that the opportunity for substantial dollar savings is not presently
being met by reason of the present exemptions. Should the exemp-
tions be removed., the Commission believes that more excess property
would be reported to General Services Administration for screening
within the Federal Government, resulting in increased utilization.
Further, the Commission declared General Services Administration
control and supervision would make for more uniform, efficient, and
economical surplus disposals. The testimony offered the committee
fully supports the Hoover Commission position in this important area.
The Committee on Government Operations, in recommending
approval of S. 2591, is fully aware that the statutory exemptions of
certain departments and agencies, or upon specific functional disposal
programs, from overall authority of the General Services Administrator
should be continued, and that, the authority to utilize and dispose of
certain types of Government property should remain unmolested in
those respective departments, agencies, or officers.
In examining the problems of utilizing and disposing of excess and
surplus property, the committee considered carefully the existing
statutory exemptions and concluded that a fundamental difference
existed between (1) disposing of surplus property simply for the
purpose of, in effect, getting rid of it and realizing the greatest possible
return of the Government's investment; and (2) disposing of property
where the disposal itself constitutes an integral part of a proper
governmental program established by law. Examples of the latter
group are the disposal of agricultural surplus products in the price
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4 UTILIZATION AND DISPOSAL OF CERTAIN SURPLUS PROPERTY .
support, school lunch, and other programs, and the disposal by the
Tennessee Valley Authority of lands surrounding its reservoirs, in
accordance with the Authority's recreational, agricultural, flood con-
trol, and navigation programs.
The committee concluded, therefore, that where disposal constitutes
it program operation, control of the disposal should be vested in the
department or agency bearing the responsibility for the ultimate
success of the total program. Thus, the committee recommends a
general exemption from. the control of the General Services Adminis-
tration in the field where disposal is a part of or .n furtherance of
agency program activities, providing in subparagraph (A) that nothing
in S. 2591 shall impair or affect any authority of-
(A) any executive agency to dispose of property under its control when such
disposal is made as specifi;:ally authorized by law in a particular manner, to a
particular class or classes of persons, or for particular purposes, as part of or in
furtherance of program activities of such agency, including, but not limited to,
disposal by the Department of Agriculture of agricultural commodities acquired
under price support or other agricultural assistance programs, and disposal by
the Tennessee Valley Authority of reservoir lands, or power equipment facilities
with appurtenant rights-of-way, and of other property similarly disposed of by
such Authority in connection with its program activities, but the agency carrying
out such program shall, to the maximum extent practicable consistent with the
fulfillment of the purposes of the program and the effective and efficient conduct
of its business, coordinate its operations with the requireme:zts of this Act and
the policies and regulations prescribed pursuant thereto;
The continued exemlr tion of the Joint Committee on Printing was
also specifically provided for in subparagraph (B) in the following
language:
(B) the Joint Committee on Printing under the Act entitled "An Act providing
for the public printing and. binding and distribution of public documents", ap-
proved January 12, 1895 (5?. Stat. 601), as amended, or any other Act.
In addition, it is not the intention of the committee that S. 2591
shall affect the authority granted the Administrator of the Veterans'
Affairs by the Servicemen's Readjustment Act, as amended by the act
of December 28, 1945 (:i8 U. S. C. 694j), which specifically authorizes
the Administrator of 'Veterans' Affairs to sell, operate, maintain,
lease, or otherwise use property acquired or held pursuant to the
Veterans' Administration loan assistance program under title III of
the above act.
It is the judgment of the committee that disposal of property de-
scribed by the above sections can best be accomplished with the ;great-
est efficiency and the greatest economy by the respective agencies,
particularly as respects disposal programs which perform functions
authorized by law.
Both the Commission on Organization of the Executive Branch of
the Government (in its report on use and disposal of surplus property,
filed with the Congress on April 18, 1955), and the Commission's task
force on the use and disposal of Federal surplus property (in its report
filed with the Congress on June 22, 1955), made recommendations to
the Congress concerning the vesting of authority in the General Serv-
ices Administrator and the elimination of statutory exemptions from
tl:i.at authority. It should be noted that both reports were in sub-
stantial agreement on the matter and both were unanimous reports.
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As to disposal of personal property, the Hoover Commission, in its
report on surplus property (recommendation No. 4, p. 21) stated:
The statutory basis for efficient utilization of excess property is the Federal
Property and Administrative Services Act of 1949, as amended (Public Law 152,
81st Cong.). By this act the Administrator of General Services is responsible
for prescribing policies and methods to promote maximum utilization of excess
property by executive agencies.
Various civilian agencies are entirely or partially exempted by law from report-
ing their excess property for screening or from other phases of property manage-
ment. These include the Department of Agriculture, the Housing and Home
Finance Agency, the Tennessee Valley Authority, the Atomic Energy Commis-
sion, the Central Intelligence Agency, and the Federal Maritime Administration.
Because of such exemptions, opportunities are lost for redistribution and utiliza-
tion of excesses.
Public interest demands that with the exception of certain property classified
for security reasons, and unless the economy of operations requires otherwise,
exemptions from the responsibility to report excess property for screening by
defense and civilian agencies should be held to a minimum. The exemptions
now granted in the Federal Property and Administrative Services Act of 1949
should be individually reviewed with a view to requiring rejustification in each
case.
Recommendation No. 4
That the Federal Property and Administrative Services Act of 1949, as amended,
be revised:
"(a) to eliminate all statutory exemptions for the executive branch of the
Government from General Services Administration authority for utilization and
disposal of all excess and surplus personal property.
(L) to authorize the President to prescribe by Executive order specific exemp-
tions from General Services Administration authority where fully justified in the
public interest."
As to the disposal of real property, the Hoover Commission (in its
report on surplus property (recommendation No. 20, pp. 79-81))
stated:
Prior to enactment of the Federal Property and Administrative Services Act
,of 1949, real property management responsibilities were scattered among the
heads of many agencies. The 1949 legislation provided a central vehicle to achieve
more economical and efficient use and more orderly disposal of real property.
However, as noted in the discussion of excess and surplus personal property,
a number of agencies still are exempt from General Services Administration juris-
diction with respect to certain disposal functions. The principal agencies exempt
or partially exempt for the disposal of domestic real property are:
1. Atomic Energy Commission, completely exempt but voluntarily disposes of
real property through General Services Administration in certain cases.
2. Central Intelligence Agency, completely exempt.
3. Tennessee Valley Authority, with respect to the disposal of land and buildings.
4. Maritime Administration, with respect to the disposal of shipyards, ship
sites, terminals, piers, docks and warehouses.
5. Housing and Home Finance Agency, with respect to disposal of residential
or other real property held or acquired in connection with housing insurance and
loan activities.
6. Civil Aernonautics Administration, with respect to airport property and air-
way property for use as such property.
As in the case of recommendation No. 4 which dealt with excess and surplus
personal property, we believe that the public interest also demands that, with the
exception of certain real property classified for security reasons, and unless the
economy of operations requires otherwise, exemptions from General Services
Administration authority in connection with the reporting and screening of excess
real property should be held to a minimum. The exemptions now granted by the
Federal Property and Administrative Services Act of 1949, as amended, should
be reviewed individually with a view to requiring rejustification in each case.
Recommendation No. QO
That the Federal Property and Administrative Services Act of 1949, as amended,
be revised:
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6 UTILIZATION ANI) DISPOSAL OF CERTAIN SURPLUS PROPERTY
(a,) to eliminate all- statutory exemptions for the executive branch of the
Government from General Services Administration authority for utilization
and disposal of all excess and surplus real property;
(b) to authorize the President to proscribe by Executive o'der specific exemp-
tions from General Services Administration authority where fully justified in the
public interest.
The Hoover Commission's tas!c-force report, upon which the Com-
mission's recommendations were based, made the following specific
recommendations, sup )orted by textual justification which was
condensed by the Commission as set out above, relating to statutory
exemptions of executive departments and agenci3s under Public
Law 152:
Recommendation No. 3, tack-force report, chapter 2, "Excess personal property"
(p. 52)
That section 602 (d) )f the Federal Property and Administrative Services
Act of 1949, as amended, he revised to require those agencies therein exempted
from the provisions of the act to report all excess personal property in their
inventory to the Materiel Redistribution Division for screeni ig, except for those
categories of property whioli are classified for security reasons or which under
present regulations are clastificd as nonreportable. * * *
It may be noted that this recommendation (repeated on p. 88 of
the report) applies solely to the reporting of "excess personal property"
to the Materiel Redistribution Division of the Department. of Defense.'
The following recommendations apply to disposal of surplus property,
personal and real.
Recommendations Nos. 1, 2, and 3, task force report, chapter 4, "Disposal of surplus
property" (p. 164)
it, is recommended:
I. That present delegations of authority for property disposal by the Admin-
istrator of General Services to Federal departments and agencies be continued.
(Sec p. 119.)
2. That agencies now e:?empt under provisions of Public Law 152 be made-
subject to General Services Administration regulation over their disposal opera-
tions, except for properties which are classified for security reasons. (See
p. 116.)
3. That the Administrator of General Services, under the authorities and
responsibilities prescribed for him by Public Law 152, issue adquate regulations
to govern disposal methods and establish uniform disposal procedures. (See
p. 118.)
Recommendation No. 1, task-force report, chapter 5, "Real property" (p. 201)
It is recommended:
1. Exemption from the provisions of Public Law 152 should be rescinded as
follows:
(a) Tennessee Valley Authority, Housing and Home Fiiance Agency, and
the Government Printing Office, with respect to the disposal of real property; and
(b) Maritime Commission with respect to the disposal of saipyards, ship sites,
terminals, piers, docks, and warehouses.'
Hearings were held by the Subcommittee on Reorganization of the
Committee on Government Operations on S. 2367, Mr. Smathers for
Mr. Kennedy), on July 13, 1955. S. 2367 has been superseded by
S 2591, which bill the ewrimittee herewith reports to the Senate.
"i coss" property is property wi ieh is not needed by one agency, but maybeutilized by another agency.
"Surplus" property is property whieh has been declared excess by one agency, is not needed or cannot be
utilized by another agency (i., e., the (i overnment has no need for it) and, therefore, may be disposed of by
donation (to States, etc.), by public sale, or scrapping,
'rue textual justification for the above recommendations may be found in the Hoover Commission's
Trick Force Report. on Use and Disposal of Federal Surplus Property filed with the Congress on Juno 22,
1955, as indicated by the page references following the above recommendations.
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UTILIZATION AND DISPOSAL OF CERTAIN SU
S. 2367, proposed by the Commission on Organization of the Execu-
tive Branch of the Government, which differs from S. 2591 in many
respects, provided:
That authority over disposal of surplus Government property be
vested in the General Services Administrator, irrespective of the pro-
visions of the Federal Property and Administrative Services Act of
1949, as amended (Public Law 152), and irrespective of all other pro-
visions of law, 60 days after enactment of the act, provided (a) the
President would have authority to make such specific exemptions by
Executive order from the authority of the Administrator of General
Services as he deemed necessary in the public interest, and (b) pro-
vided that the act would not be applicable to property under the
control of executive agencies outside the continental limits of the
United States, Hawaii, Alaska, Puerto Rico, and the Virgin Islands.'
Witnesses heard included Gerald S. Wise, Executive Director,
Hoover Commission Task Force on Surplus Property, Baltimore,
Md.; Maxwell H. Elliott, General Counsel, General Services Ad-
ministration, and Lewis C. Tuttle, Deputy Director, Personel Prop-
erty Utilization and Disposal Division, General Services Administra-
tion; and Percival F. Brundage, Deputy Director, Bureau of the
Budget, accompanied by George Mullins, Bureau of the Budget; all
of whom were in general agreement with the basic principles of S. 2367,
now incorporated in S. 2591.
Subsequent to the hearings, agreement was reached by the Subcom-
mittee on Reorganization with the Bureau of the Budget, the General
Services Administration, and the Hoover Commission task force upon
the objectives of S. 2591, as herewith amended.
The. committee is aware that the Hoover Commission and the task
forces submitted other recommendations to the Congress relative to
exemptions from the. General Services Administrator's authority over
transportation, warehousing, and management of real property, and
that various bills have been introduced to implement some of these
proposals. However, it is the consensus of the committee that
because of the urgent necessity for the Administrator of the General
Services Administration to be given broader authority over disposal
of ever-increasing Government surpluses (now accumulating at the
rate of $2 billion a year), it is more expedient for the Congress to take
action at this time upon this phase of the overall problem rather than
to risk delay by acting upon the other equally important but not as
pressing matters. It is the committee's intention to give immediate
attention to the related matters as quickly as is appropriate and
feasible.
Based upon the facts presented herewith the committee can come
to no conclusion other than that the enactment of S. 2591, as amended,
is in the best interests of the Government, both from the viewpoint of
efficiency and economy. Although it is extremely difficult to estimate
3 The provision pertaining to foreign property contained in S. 2369 is not necessary in the enactment of
S. 2591 because under the definitions of the Federal Property and Administrative Procedures Act of 1949, as
amended, S. 2591 is applicable only to excess and surplus property within the continental limits of the
United States.
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8 UTILIZATION AND DISPOSAL OF CERTAIN SURPLUS PROPERTY
realistically the dollar savings that will result from the further central-
ization of administrative authority in the General Services Adminis-
tration over utilization and disposal of Government property, un-
doubtedly they will be substantial. At the same time, as previously
noted, the committee recognizes that certain types of disposal pro-
grams should be coati zued to be administered by specific owning
agencies.
The committee, in su:almary, i? convinced that 5.:3591 is an i:mpor-
tant step in the better management, utilization, and disposal of Gov-
ernment property and a solution to some of the problems relating
thereto. The committee, therefore, reports favorably thereon, and
recommends that the bill do pass.
In compliance with subsection 4 of the rule XXI . of the Standing
Rules of the Senate, changes in existing law made, by the bill, as
reported, are shown as follows (matter omitted enclosed in brackets,
now matter printed in italics, existing law in which no change is
reported shown in roman):
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT or 1949
REr EAL AND SAVING PROVISIONS
Siec. 602. (a) *
"(g) (1) Notwithstanding the provisions of subsection (d) of this section or of any
low other than this Act, the administrator shall exercise the au'hority vested in him
by this Act with respect to the utilization and disposal of all excess and surplus prop-
erty, real and personal, whicii is under the control of any executive agency, except that
nothing in this Act shall iml.air or affect any authority of-
"(A) any executive agency to dispose of property under its control when such dis-
posal is made as specifically authorized by law in a particular manner, to a particular
class or classes of persons, or for particular purposes, as part of or in furtherance of
program activities of such agency, including, but not limited to, disposal by the Depart-
ment of Agriculture of agrici ltural commodities acquired under price support or other
agricultural assistance programs, and disposal by the Tennessee Valley Authority
oj'reservoir lands, or power equipment, facilities with appurtenasat rights-of-way, and
oj' other property similarly disposed of by such Authority in connection with its pro-
gram activities, but the agesct carrying out such program shall, to the maximum
ea tent practicable consistent ioith the fulfillment of the purposes of the program, and the
effective and efficient conduct of its business, coordinate its operat ions with the require-
ments of this Act and the poiicies and regulations prescribed pursuant thereto; or
"(B) the Joint Committee on Printing under the Act entitled 'An Act providing
for the public printing and bi 'cling and the distribution of public documents', approved
January 12, 1895 (58 Stat. 601), as amended, or any other Act.
"(2) The President may by Executive order make such specifi? exemptions from the
exercise by the Administrator of General Services of his authority under this subsection
with respect to the utilization and disposal of excess and surplus property as the
President deems to be necessary in the public interest."
* * *
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