PROVISION OF RECLAIMED SILVER TO AGENCY COMMERCIAL CONTRACTORS AS GOVERNMENT FURNISHED MATERIAL

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79-00498A000200070004-8
Release Decision: 
RIPPUB
Original Classification: 
K
Document Page Count: 
4
Document Creation Date: 
December 9, 2016
Document Release Date: 
September 6, 2000
Sequence Number: 
4
Case Number: 
Publication Date: 
October 13, 1976
Content Type: 
MF
File: 
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PDF icon CIA-RDP79-00498A000200070004-8.pdf158.36 KB
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Approved For Release 2001/04/05: CIA-RDP79-00498A00020007000 MEMORANDUM FOR: Director of Logistics Chief, Audit Staff, 0/IG SUBJECT Provision of Reclaimed Silver to Agency Commercial Contractors as Government Furnished Material REFERENCE Federal Property Management Regulations, Subchapter H, Part 101-42.3 1. Attached regulation of the General Services Administration (GSA) establishes a procedure whereby federal agencies may requisition silver or other precious metals for use as Government furnished material by commercial contractors. Silver requisitioned under this procedure is available for 35 cents per troy ounce as compared to the commercial market price of $4.50 per troy ounce. GSA advances that requisitions for silver under this procedure do not require explanations or justifications; the only criteria being that the re- quisitioning agency has contributed silver to the recla- mation program and that the amount of silver requisitioned does not exceed the total amount contributed. 2. Audit Staff has been informed that the Agency has not utilized this economical source of silver for use by contractors, although some 6,000 pounds of silver bearing material with a market value of over $250,000 have been contributed to the program by the Agency. 3. The process for acquisition of the reclaimed silver, as described informally by GSA representatives, seems uncomplicated and involves the following steps: a. Identification by the Contracting Officer of procurement action requiring silver in contract performance; b. Stipulation in Requests for Proposals that amounts and values of silver required be specified in bids; 46-8. C CT 1976 STATINTL Approved For Release 2001/04/05: CIA-RDP79-00498A000200070004-8 Approved For Release 2001/04/05: CIA-RDP79-00498A000200070004-8 a .. ic.,,,, Pro,ui,;s,, giv,4ln; contracts with successful bidders that silver will be provided as GFM; and d. Requisition of silver from GSA for delivery to a specific location. 4. In view of the potential savings available to the Agency through use of this source of silver, I suggest that you explore the feasibility of the above described procedure in Agency procurement. Please advise me of your findings. STATINTL Attachment: as stated Distribution: Orig - Addressee ,,Y- DDA 1 - 0/IG 1 - O/Comp/DCI 1 - D/Fin Approved For Release 2001/04/05: CIA-RDP79-00498A000200070004-8 Approved For Release 2001/04/05: CIA-RDP79-00498A000200070004-8 SUE`PART 101-42.3 RECOVERY OF PRECIOUS METALS AND CRITICAL MATERIALS may be contacted at the following Ad- dress: Defense Supply Agency, DOI) P~e- cious Metals Recovery Program M~Ln- ager, Cameron Station, Alexalldia, Virginia 7.23:14. 101.-42.303-2 1J6lir.ltiion of 1) 011)- recovered ))1'/'c lolls 111('ti1IS 114 (GoVl!r11- H1ent-funlislell 11111terial ((;.]"M):! ill Federal Procurements. To determine the need for recovered precious Metals as GFM to reduce new procurement costs, each agency shall re- view procurements for which precious metals will be required by a contractor. Each agency having requirements for re- fined precious metals as GFM should submit a request to the Commander, Defense Industrial Supply Center, 700 Robbins Avenue, Philadelphia, Pennsyl- vania 19111. A copy of each such req lest shall be sent to the General Scrvice9 Ad-' ministration (FWR), Washington, D.C, 20406. Each agency requesting precious metals under the DOD Precious Metals Recovery Program shall also contribute ally Ir,cnProl.ted aeennlulatinns of silver, frold, and lllatiuunl to I.he 1 )I'CU'MItO In acco['dlnuCc with ? 101 42.303-1. Nor- mally, the amount of precious metals authorized for sale to individual agencies would not exceed the quantity of such refined metals derived from the agency contributions of precious metal.-,bearing matelisls to the program. Exceptions to this limitation will be made on a case by ease basis if refined precious metals on hand exceed DOD requirements. No minimum ordering quantity is prescribed. There is a nominal charge for the refined precious metals to cover the administra- tive and processing costs. Such costs, however, arc substantially lower than the current market price of fine silver, gold, and platinum. FEDERAL PROPERTY MANAGEMENT REGULATIONS (AMENDMENT H?91, JULY 1975) Approved For Release 2001/04/05 :,CIA-RDP79-00498A000200070004-8 VIE if 4p nn if4om' OFFICIAL ROUTING SLIP D NAME AND ADDRESS DATE INITIALS z $OCT197 ACTION DIRECT REPLY PREPARE REPLY APPROVAL DISPATCH RECOMMENDATION COMMENT FILE RETURN CONCURRENCE INFORMATION SIGNATURE tt: marks: V~ .r ,Al Y FOLD HERE TO RETURN TO SENDER FROM: NAME, ADDRESS AND PHONE NO. DATE ssociate Deputy Director for lministration, 7D 24 H s, x5767 I !D' OCT i9,~t UNCLASSIFIED CONFIDENTIAL SECRET -- No. 237 Use previous editions DA:MJMalanick (18 Oct 76) stribution: IOrig RS D/Log w/cy of Att fl-' T DDA Subject w/cy of Att 1 DDA Chrono W/o Att 1 MJ'1 Chrono w/o Att IA-R DP79-00498AOQ0200070004-8 DDIA r 9 try File t: Memo dtd 13 Oct 76 to D/Log fr 11 /A f1 /-I- Reclaimed Silver to Agency v ; C omme r. urn Fo ea90 2001/04/05: CIA-RDP79-00498A000200070004 8 Govern, s Pr ~Tatr~r ~,