Federal Property and Administrative Services Act of 1949

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01240A000500040011-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 31
• Document Creation Date: November 11, 2016
• Document Release Date: September 14, 1998
• Sequence Number: 11
• Publication Date: January 1, 1949
• Content Type: REGULATION

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25X1A9a
[PUBLIC LAW 152-81sT CONGRzsa]
[CHAPTER 288-1sT SESSION
[H. R. 4754]
AN ACT
To simplify the procurement, utilization and disposal of Government property,
to reorganize certain agencies of the Government, and for other purposes.
Be it enacted by the Senate and House of Representative., of as
United States of America in Congress assembled,
SHORT TITLE
That this Act may be cited as the "Federal Property and Adininiii-
trative Services Act of 1949".
TABLE OF CONTENTS
2. Declaration of policy.
`:ec.8. Definitions.
t
Trrr a I--O$o4IZATIOJV
Sec.*101. General Services Administration.
Sec. 102. Transfer of affairs of Bureau of Federal Supply.
Sec. 103. Transfer of affairs of the Federal Works Agency.
Sec. 104. Records management : Transfer of the National Archives.
Sec. 105. Transfer for liquidation of the affairs of the War Assets Administration.
Sec. 106. Redistribution of functions.
Sec. 107. Transfer of funds.
Sec. 108. Status of transferred employees.
Sec. 109. General supply fund.
TrrIZ II-PROPERTY MANAGEK=T
Sec. 201. Procurement, warehousing, and related activities,
Sec. 202. Property utilization.
Sec. 203. Disposal of surplus property.
Sec. 204. Proceeds from transfer and disposition of property.
Sec. 205. Policies, regulations, and delegations.
Sec. 206. Surveys, standardization, and cataloging.
Sec. 207. Applicability of antitrust laws.
See. 208. Employment of personnel.
Sec. 209. Civil remedies and penalties.
Sea 210. Reports to Congress.
I
I
TITLE III-PEocusshMgT PROOE,otR
Sec. 801. Declaration of purpose.
Sec. 802. Application and procurement methods.
Sec. 808. Advertising requirements.
Sec. 804. Requirements of negotiated contracts.
Sea 805. Advance payments.
Sec. 806. Waiver of liquidated damages.
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Sec. 307. Administrative determinations and delegations.
Sec. 808. Statutes continued in effect.
Sec. 809. Definitions.
Sec. 310. Statutes not applicable.
TITLE IV-FOSEIGN EXCESS
Sec. 401. Disposal of foreign excess property.
Sec. 402. Methods and terms of disposal.
Sec. 403. Proceeds ; foreign currencies.
Sec. 404. Miscellaneous provisions. .
PEor1Tr
Tins V--GENERAL PROVISIONS
Sec. 501. Applicability of existing procedureL
Sec. 502. Repeal and saving provisions.
Sec. 503. Authorization for appropriations.
Sec. 504. Separability.
Sec. 505. lective date.
DECLARATION OF POLICY
SEC. 2. It is the intent of the Congress in enacting this legislation to
provide for the Government an economical and efficient system for (a)
the procurement and supply of personal property and nonpersonal
services, including related functions such as contracting, inspection,
storage, issue, specifications, property identification and classification,
transportation and traffic management, management of public utility
services, repairing and converting, establishment of inventory levels,
establishment of forms and procedures, and representation before
Federal and State regulatory bodies; (b) the utilization of available
property; (c) the disposal of surplus property; and (d) records
management.
SEC. 3. As used in this Act-
(a) The term "executive agency" means any executive department
or independent establishment in the executive branch of the Govern-
ment, including any wholly owned Government corporation.
(b) The term "Federal agency" means any executive agency or any
establishment in the legislative or judicial branch of the Government
(except the Senate and the House of Representatives).
(c) The term "Administrator" means the Administrator of General
Services provided for in title I hereof.
(d) The term "property" means any interest in property of any
kind except (1) the public domain and lands reserved or dedicated for
national forest or national park purposes; and (2) naval vessels of
the following categories : Battleships, cruisers, aircraft carriers,
destroyers, and submarines.
(e) The term "excess property" means any property under the con-
trol of any Federal agency. which is not required for its needs and the
discharge of its responsibilities, as determined by the head thereof.
(f) The term "foreign excess property" means and excess property
located outside the continental United States, I-fawali, Alaska, Puerto
Rico, and the Virgin Islands.
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(g) The term "surplus property" means any excess property not
required for the needs and the discharge of the responsibilities of all
Federal agencies, as determined by the Administrator.
(h) The term "care and handling" includes completing, repairing,
converting, rehabilitating, operating, preserving, protecting, insuring
packing, storing, handling, conserving, and transporting excess and
surplus property, and, in the case of property which is dangerous to
public health or safety, destroying or rendering innocuous such
property.
(i) The term "person" includes any corporation, partnership, firm,
association, trust, estate, or other entity.
(j) The term "nonpersonal services" means such contractual serv-
ices, other than personal and professional services, as the Adminis-
trator shall designate.
(k) Th., term "contractor inventory" means (1) any property
acquired by and in the possession of a contractor or subcontractor
under a contract pursuant to the terms of which title is vested in the
Government, and in excess of the amounts needed to complete full
performance under the entire contract; and (2) any property which
the Government is obligated to take over under any type of contract
as a result either of any changes in the specifications or plans there-
under or of the termination of such contract (or subcontract there-
under), prior to completion of the work, for the convenience or at
the option of the Government.
SEO. 101. (a) There is hereby established an agency in the execu-
tive branch of the Government which shall be known as the General
Services Administration.
(b) There shall be at the head of the General Services Administra-
tion an Administrator of General Services who shall be appointed by
the President by and with the advice and consent of the Senate, and
perform his functions subject to the direction and control of the
President.
(c) There shall be in the General Services Administration a Deputy
Administrator of General Services who shall be appointed by the
Administrator of General Services. The Deputy Administrator shall
perform such functions as the Administrator shall designate and shall
be Acting Administrator of General Services during the absence or
disability of the Administrator and, unless the President shall desig-
nate another officer of the Government, in the event of a vacancy in
the office of Administrator.
(d) Pending the first appointment of the Administrator under the
provisions of this section, his functions shall be performed temporarily
by such officer of the Government in office upon or immediately prior
to the taking of effect of the provisions of this Act as the President
shall designate, and such officer while so serving shall receive the
salary fixed for the Administrator.
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(e) Pending the effective date of other provisions of law fixing the
rates of compensation of the Administrator, the Deputy Administra-
tor and of the heads and assistant heads of the principal organizational
units of the General Services Administration, and taking into consid-
eration provisions of law governing the compensation of officers hav-
ing comparable responsibilities and duties, the President shall fix for
each of them a rate of compensation which he shall deem to be com-
mensurate with the responsibilities and duties of the respective offices
involved.
TRANSFER OF AFFAIRS OF BUREAU OF FEDERAL SUPPLY
SEC. 102. (a) The functions of (1) the Bureau of Federal Supply
in the Department of the Treasury, (2) the Director of the Bureau of
Federal Supply, (3) the personnel of such Bureau, and (4) the Secre-
tary of the Treasury, relating to the Bureau of Federal Supply, are
hereby transferred to the Administrator. The records, property, per-
sonnel, obligations, and commitments of the Bureau of Federal Supply,
together with such additional records, property, and personnel of the
Department of the Treasury as the Director of the Bureau of the
Budget shall determine to relate primarily to functions transferred by
this section or vested in the Administrator by titles II, III, and V,
of this Act, are hereby transferred to the General Services Adminis-
tration. The Bureau of Federal Supply and the office of Director of
the Bureau of Federal Supply are hereby abolished.
(b) The functions of the Director of Contract Settlement and of the
Office of Contract Settlement, transferred to the Secretary of the
Treasury by Reorganization Plan Numbered 1 of 1947, are transferred
to the Administrator and shall be performed by him or, subject to his
direction and control, by such officers and agencies of the General
Services Administration as he may designate. The Contract Settle-
ment Act Advisory Board created by section 5 of the Contract Settle-
ment Act of 1944 (58 Stat. 649) and the Appeal Board established
under section 13 (d) of that Act are transferred from the Department
of the Treasury to the General Services Administration, but the func-
tions of these Boards shall be performed by them, respectively, under
conditions and limitations prescribed by law. There shall also be
transferred to the General Services Administration such records,
property, personnel, obligations, commitments, and unexpended bal-
ances (available or to be made available) of appropriations, alloca-
tions, and other funds of the Treasury Department as the Director of
the Bureau of the Budget shall determine to relate primarily to the
functions transferred by the provisions of this subsection.
(c) Any other provision of this section notwithstanding, there may
be retained in the Department of the Treasury any function referred
to in subsection (a) of this section which the Director of the Bureau
of the Budget shall, within ten days after the effective date of this Act,
determine to be essential to the orderly administration of the affairs
of 'the agencies of such Department, other than the Bureau of Federal
Supply, together with such records, property, personnel, obligations,
commitments, and unexpended balances of appropriations, allocations,
and other funds, available or to be made available, of said Department,
as said Director shall determine.
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SEc. 103. (a) All functions of the Federal Works Agency and of
all agencies thereof, together with all functions of the Federal Works
Administrator, of the Commissioner of Public Buildings, and of the
Commissioner of Public Roads, are hereby transferred to the Admin-
istrator of General Services. There are hereby transferred to the
General Services Administration the Public Roads Administration
which shall hereafter be known as the Bureau of Public Roads, and
all records, property, personnel, obligations, and commitments of the
Federal Works Agency, including those of all agencies of the Federal
Works Agency.
(b) There are hereby abolished the Federal Works Agency, the
Public Buildings Administration, the office of Federal Works Admin-
istrator, the office of Commissioner of Public Buildings, and the office
of Assistant Federal Works Administrator.
SEc. 104. (a) The National Archives Establishment and its func-
tions, records, property, personnel, obligations, and commitments are
hereby transferred to the General Services Administration. There
are transferred to the Administrator (1) the functions of the Archivist
of the United States, except that the Archivist shall continue to be a
member or chairman, as the case may be, of the bodies referred to in
subsection (b) of this section, and (2) the functions of the Director
of the Division of the Federal Register of the National Archives
Establishment. The Archivist of the United States shall hereafter be
appointed by the Administrator.
(b) There are also transferred to the General Services Administra-
tion the following bodies, together with their respective functions and
such funds as are derived from Federal sources: (1) The National
Archives Council and the National Historical Publications Commis-
sion, established by the Act of June 19, 1934 (48 Stat. 1122), (2) the
National Archives Trust Fund Board, established by the Act of July
9, 1941 (55 Stat. 581), (3) the Board of Trustees of the Franklin D.
Roosevelt Library, established by the Joint Resolution of July 18, 1939
(53 Stat. 1062), and (4) the Administrative Committee established
by section 6 of the Act of July 26, 1935 (49 Stat. 501), which shall
hereafter be known as the Administrative Committee of the Federal
Register. The authority of the Administrator under section 106
hereof shall not extend to the bodies or functions affected by this
subsection.
(c) The Administrator is authorized (1) to make surveys of Gov-
ernment records and records management and disposal practices and
obtain reports thereon from Federal agencies; (2) to promote, in
cooperation with the executive agencies, improved records manage-
ment practices and controls in such agencies, including the central
storage or disposition of records not needed by such agencies for their
current use; and (3) to report to the Congress and the Director of
the Bureau of the Budget from time to time the results of such
activities.
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TRANSFER FOR LIQUIDATION OF THE AFFAIRS OF THE WAR ASSETS
ADMINISTRATION
SEC. 105. The functions, records, property, personnel obligations,
and commitments of the War Assets Administration are iiereby trans-
ferred to the General Services Administration. The functions of the
War Assets Administrator are hereby transferred to the Administra-
tor of General Services. The War Assets Administration, the office of
the War Assets Administrator, and the office of Associate War Assets
Administrator are hereby abolished. Personnel now holding appoint-
ments granted under the second sentence of section 5 (b) of the Sur-
plus Property Act of 1944, as amended, may be continued in such posi-
tions or may be appointed to similar positions for such time as the
Administrator may determine.
REDISTRIBUTION OF FUNCTIONS
SEC. 106. The Administrator is hereby authorized, in his discretion,
in order to provide for the effective accomplishment of the functions
transferred to or vested in him by this Act, and from time to time, to
regroup, transfer, and distribute any such functions within the Gen-
eral Services Administration. The Administrator is hereby author-
ized to transfer the funds necessary to accomplish said functions and
report such transfers of funds to the Director of the Bureau of the
Budget.
SEC. 107. (a) All unexpended balances of appropriations, alloca-
tions, or other funds available or to be made available, for the use of
the Bureau of Federal Supply, the War Assets Administration, the
Federal Works Agency, and the National Archives Establishment,
and so much of the other unexpended balances of appropriations, allo-
cations, or other funds of the Department of the Treasury, available
or to be made available, as the Director of the Bureau of the Budget
shall determine to relate primarily to functions transferred to or vested
in the Administrator by the provisions of this Act, shall be transferred
to the General Services Administration for use in connection with the
functions to which such balances relate, respectively.
(b) When other functions are transferred to the General Services
Administration from any Federal agency, under section 201 (a) (2
or. (3), or otherwise under this Act, there shall be transferred such
records, property, personnel, appropriations, allocations, and other
funds of such agency to the General Services Administration as the
Director of the Bureau of the Budget shall determine to relate pri-
marily to the functions so transferred.
SEC. 108. Subject to other provisions of this title relating to per-
sonnel, employees transferred by the provisions of this title shall be
deemed to be employees of the General Services Administration and
their reappointment shall not be required by reason of the enactment
of this Act.
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SEc. 109. (a) There is hereby authorized to be set aside in the
Treasury a special fund which shall be known as the General Supply
Fund. Such fund shall be composed of the assets of the general sup-
ply fund (including any surplus therein) created by section 3 of the
Act of February 27, 1929 (45 Stat. 1342; 41 U. S. C. 7c), and trans-
ferred to the Administrator by section 102 of this Act, and such sums
as may be appropriated thereto, and the fund shall assume all of the
liabilities, obligations and commitments of the general supply fund
created by such Act of February 27, 1929. The capital of the General
Supply Fund shall be in an amount not greater than $75,000,000. The
General Supply Fund shall be available for use by or under the direc-
tion and control of the Administrator (1) for procuring personal
property (including the purchase from or through the Public Printer
of standard forms and blankbook work for field warehouse issue) and
nonpersonal services for the use of Federal agencies in the proper dis-
charge of their responsibilities and (2) for paying all elements of
cost of the procurement, handling, and distribution thereof, except
that on and after July 1, 1950, those elements of cost which are deter-
mined by the Administrator with the approval of the Director of the
Bureau of the Budget to be indirect or overhead costs shall not be paid
from the fund.
(b) Payment by requisitioning agencies shall be at prices fixed by
the Administrator. Until July 1, 1950, such prices shall be fixed in
accordance with law and regulations applicable on the date of enact-
ment of this Act to prices fixed by the Director of the Bureau of Fed-
eral Supply. On and after such date, such prices shall be fixed at
levels so as to recover so far as practicable all costs except those which
are determined by the Administrator with the approval of the Director
of the Bureau of the Budget to be indirect or overhead costs. Requi-
sitioning agencies shall pay by advance of funds in all cases where
it is determined by the Administrator that there is insufficient capital
otherwise available in the General Supply Fund. Advances of funds
also may be made by agreement between the requisitioning agencies
and the Administrator. Where an advance of funds is not made,
requisitioning agencies shall promptl reimburse the General Services
Administration on vouchers prepared by the requisitioning agency on
the basis of itemized invoices submitted by the Administrator and
receiving reports evidencing the delivery to the requisitioning agency
of such supplies or services : Provided, That in any case where pay-
ment shall not have been made by the requisitioning agency within
forty-five days after the date of billing by the Administrator, reim-
bursement may be obtained by the Administrator by the issuance of
transfer and counterwarrants supported by itemized invoices.
(c) The General Supply Fund shall be credited with all reimburse-
ments, advances of funds, and refunds or recoveries relating to sup-
plies or services procured through the fund, including the net proceeds
of disposal of surplus supplies procured through the fund and receipts
from carriers and others for loss of, or damage to, supplies procured
through the fund; and the same are hereby reappropriated for the
purposes of the fund.
(d) A special deposit account may be established as a part of the
General Supply Fund with the Treasurer of the United States for use
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by the c 1s ursing o eer or any reglona isbursdng o eer,
Department of the Treasury, which may be credited with (1) funds
advanced from the General Supply Fund account on the books of the
Division of Bookkeeping and Warrants and (2) other funds properly
for credit to the General Supply Fund without being covered into the
Treasury of the United States; and such special deposit account may
be charged with payments properly chargeable to the General Supply
Fund.
(e) The Comptroller General of the United States shall make an
annual audit of the General Supply Fund as of June 30, and there
shall be covered into the United States Treasury as miscellaneous
receipts any surplus found therein, all assets, liabilities, and prior
losses considered, above the amounts transferred or appropriated to
establish and maintain said fund, and the Comptroller General shall
report to the Congress annually the results of the audit, together with
such recommendations as he may have regarding the status and oper-
ations of the fund.
(f) Subject to the requirements of subsections (a) to (e), inclusive,
of this section, the General Supply Fund also may be used for the
procurement of supplies and nonpersonal services authorized to be.
acquired by mixed-ownership Government corporations, or by the
municipal government of the District of Columbia, or by a requisi-
tioning non-Federal agency when the function of a Federal agency
authorized to procure for it is transferred to the General Services
Administration : Provided, That the prices, charged by the Adminis-
trator in such cases shall be fixed at levels which he estimates will be
sufficient to recover, in addition to the direct costs of the procurement,
handling and distribution of such supplies and services, the indirect
and overhead costs that the Administrator determines are allocable
thereto.
PROCUREMENT, WAREHOUSING, AND RELATED ACTIVITIES
SEo. 201. (a) The Administrator shall in respect of executive agen-
cies, and to the extent that he determines that so doing is advantageous
to the Government in terms of economy efficiency, or service, and with
due regard to the program activities of the agencies concerned-
(1) prescribe policies and methods of procurement and supply
of personal property and nonpersonal services, including related
functions such as contracting, inspection, storage, issue, property
identification and classification, transportation and traffic man-
agement, management of public utility services, and repairing
and converting; and
(2) operate, and, after consultation with the executive agencies
affected, consolidate, take over, or arrange for the operation by
any executive agency of warehouses, supply centers, repair shops,
fuel yards, and other similar facilities; and
(3) procure and supply personal property and nonpersonal
services for the use of executive agencies in the proper discharge
of their responsibilities, and perform functions related to procure-
ment and supply such as those mentioned above in subparagraph
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(1) : Provided That contracts for public utility services may be
made for periods not exceeding ten years; and
(4) with respect to transportation and other public utility
services for the use of executive agencies, represent such agencies
in negotiations with carriers and other public utilities and in pro-
ceedings involving carriers or other public utilities before Federal
and State regulatory bodies;
Provided, That the Secretary of Defense may from time to time and
unless the President shall otherwise direct, exempt the National Mili-
tary Establishment from action taken or which may be taken by the
Administrator under clauses (1), (2), (8), and (4) above whenever
he determines such exemption to be in the best interests of national
security.
(b) The Administrator shall as far as practicable provide any of
the services specified in subsection (a) of this section to any other
Federal agency, mixed ownership corporation (as defined in the Gov-
ernment Corporation Control Act), or the District of Columbia, or
the Senate, or the House of Representatives, upon its request.
(c) In acquiring personal property any executive agency, under
regulations to be prescribed by the Administrator, may exchange or
sell similar items and may n ply the exchange allowance or proceeds
of sale in such cases in whole or in part payment for the property
acquired : Provided, That any transaction carried out under the
authority of this subsection shall be evidenced in writing.
SEa. 202. (a) In order to minimize expenditures for property, the
Administrator shall prescribe policies and methods to promote the
maximum utilization of excess property by executive agencies, and
he shall provide for the transfer of excess property among Federal
agencies.
(b) Each executive agency shall (1) maintain adequate inventory
controls and accountability systems for the property under its control,
(2) continuously survey property under its control to determine which
is excess property, and promptly report such property to the Admin-
istrator, (3) perform the care and handling of such excess property,
and (4) transfer or dispose of such property as promptly as possible
in accordance with authority delegated and regulations prescribed
by the Administrator.
(c) Each executive agency shall, as far as practicable, (1) make
reassignments of property among activities within the agency when
such property is determined to be no longer required for the purposes
of the appropriation from which it was purchased, (2) transfer excess
property under its control to other Federal agencies, and (3) obtain
excess property from other Federal agencies.
(d) Under existing provisions of law and procedures defined by the
Secretary of Defense, and without regard to the requirements of this
section except subsection (f), excess property of one of the depart-
ments of the National Military Establishment may be transferred to
another department thereof.
(e) Transfers of excess property between Federal agencies (except
transfers for redistribution to other Federal agencies or for disposal
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as surplus property) shall be at the fair value thereof, as determined
by, or pursuant to regulations of, the Administrator, unless such
transfer is otherwise authorized by any law approved subsequent to
June 21, 1944, to be without reimbursement or transfer of funds.
(f) The Director of the Bureau of the Budget shall prescribe regu-
lations providing for the reporting to said Director by executive aen-
cies of such reassignments or transfers of property between activities
financed by different appropriations as he shall deem appropriate, and
the reassignments and transfers so reported shall be reported to the
Congress in the annual budget or otherwise as said Director may
determine.
(g) Whenever the Administrator determines that the temporary
assignment or reassignment of any space in excess real property to
any Federal agency for office, storage, or related facilities would be
more advantageous than the permanent transfer of such property, he
may make such assignment or reassignment for such period of time
as he shall determine and obtain, in the absence of appropriation avail-
able to him therefor, appropriate reimbursement from the using agency
for the expense of maintaining such space.
(h) The Administrator may authorize the abandonment, destruc-
tion, or donation to public bodies of property which has no commercial
value or of which the estimated cost of continued care and handling
would exceed the estimated proceeds from.its sale.
DISPOSAL OF SURPLUS PROPERTY
SEa. 203. (a) Except as otherwise provided in this section, the
Administrator shall have supervision and direction over the disposi-
tion of surplus property. Such property shall be disposed of to such
extent, at such time, in such areas, by such agencies, at such terms and
conditions, and in such manner, as may be prescribed in or pursuant
to this Act.
(b) The care and handling of surplus property, pending its dispo-
sition, and the disposal of surplus property, may be performed by the
General Services Administration or, when so determined by the
Administrator, by the executive agency in possession thereof or by
any other executive agency consenting thereto.
(o) Any executive agency designated or authorized by the Admin-
istrator to dispose of surplus property may do so by sale, exchange,
lease, permit, or transfer, for cash, credit, or other property, with or
without warranty, and upon such other terms and conditions as the
Administrator deems proper, and it may execute such documents for
the transfer of title or other interest in property and take such other
action as it deems necessary or proper to dispose of such property
under the provisions of this title.
(d) A deed, bill of sale, lease, or other instrument executed by or on
behalf of any executive agency purporting to transfer title or any
other interest in surplus property under this title shall be conclusive
evidence of compliance with the provisions of this title insofar as con-
cerns title or other interest of any bona fide grantee or transferee for
value and without notice of lack of such compliance.
~e) Unless the Administrator shall determine that disposal by adver-
tising will in a given case better protect the public interest, surplus
property disposals may be made without regard to any provision of
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existing law for advertising until 12 o'clock noon, eastern standard:
time, December 31, 1950.
(f) Subject to regulations of the Administrator, any executive
agency may authorize any contractor with such agency or subcon-
tractor thereunder to retain or dispose of any contractor inventory.
(g) The Administrator in formulating policies with respect to the.
disposal of surplus agricultural commodities, surplus foods processed
from agricultural commodities, and surplus cotton or woolen goods,
shall consult with the Secretary of Agriculture. Such policies shall be
so formulated as to prevent surplus agricultural commodities, or sur-
plus food processed from agricultural commodities, from being dumped
on the market in a disorderly manner and disrupting the market prices
for agricultural commodities.
(h) Whenever the Secretary of Agriculture determines such action
to be required to assist him in carrying out his responsibilities with
respect to price support or stabilization, the Administrator shall
transfer without charge to the Department of Agriculture any surplus
agricultural commodities, foods, or cotton or woolen goods to be dis-
posed of. Receipts resulting from disposal by the Department of Agri-
culture under this subsection shall be deposited pursuant to any author-
ity available to the Secretary of Agriculture, except that net proceeds
of any sale of surplus property so transferred shall be credited pur-
suant to section 204 (b), when applicable. Surplus farm commodities
so transferred shall not be sold, other than for export, in quantities
in excess of, or at prices less than, those applicable with respect to
sales of such commodities by the Commodity Credit Corporation.
(i) The United States Maritime Commission shall dispose of sur-
plus vessels of one thousand five hundred gross tons or more which
the Commission determines to be merchant vessels or capable of con-
version 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.
(j) (1) Under such regulations as he may prescribe, the Adminis-
trator is authorized in his discretion to donate for educational pur-
poses in the States, Territories, and possessions without cost (except
for costs of care and handling) such equipment, materials, books,
or other supplies under the control of any executive agency as shall
have been determined to be surplus property and which shall have
been determined under paragraph 2 or paragraph 3 of this subsection
to be usable and necessary for educational purposes.
(2) Determination whether such surplus property (except surplus
property donated in conformity with paragraph 3 of this subsection)
is usable and necessary for educational purposes shall be made 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 to tax-supported school systems, schools, colleges,
and universities, and to other nonprofit schools, colleges, and universi-
ties which have been held exempt from taxation under section 101 (6)
of the Internal Revenue Code, or to State departments of education
for distribution to such tax-supported and nonprofit school systems,
schools, colleges, and universities; except that in any State where
another agency is designated by State law for such purpose such
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transfer shall be made to said agency for such distribution within the
State.
(3) In the case of surplus property under the control of the
National Military Establishment, the Secretary of Defense shall deter-
mine whether such property is usable and necessary for 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. If such Secretary shall determine that such
property is usable and necessary for such purposes, he shall allocate
it for transfer by the Administrator to such educational activities.
If he shall determine that such property is not usable and necessary
for such purposes, it may be disposed of in accordance with paragraph
2 of this subsection.
(k) (1) Under such regulations as he may prescribe, the Admin-
istrator is authorized, in his discretion, to assign to the Federal
Security Administrator for disposal such surplus real property,
including buildings, fixtures, and equipment situated thereon, as is
recommended by the Federal Security Administrator as being needed
for school, classroom, or other educational use, or for use in the protec-
tion of public health, including research.
(A) Subject to the disapproval of the Administrator within
thirty days after notice to him by the Federal Security Admin-
istrator of a proposed transfer of property for school, class-
room, or other educational use, the Federal Security Adminis-
trator, through such officers or employees of the Federal Security
Agency as he may designate, may sell or lease such real property,
including buildings, fixtures, and equipment situated thereon, for
educational purposes to the States and their political subdivi-
sions and instrumentalities, and tax-supported educational insti-
tutions, and to other nonprofit educational institutions which
have been held exempt from taxation under section 101 (6) of
the Internal Revenue Code.
(B) Subject to the disapproval of the Administrator within
thirty days after notice to him by the Federal Security Adminis-
trator of a proposed transfer of property for public-health use,
the Federal Security Administrator, through such officers or
employees of the Federal Security Agency as he may designate,
may sell or lease such real property for public-health purposes,
including research, to the States and their political subdivisions
and instrumentalities, and to 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 para-
graph, the Federal Security Administrator shall take into consid-
eration any benefit which has accrued or may accrue to the United
States from the use of such property by any such State, political
subdivision, instrumentality, or institution.
(D) "States" as used in this subsection includes the District of
Columbia and the Territories and possessions of the United States.
(2) Subject to the disapproval of the Administrator within thirty
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days after notice to him of any action to be taken under this
subsection-
(A) The Federal Security Administrator, through such officers
or employees of the Federal Security Agency as he may designate,
in the case of property transferred pursuant to the Surplus
Property Act of 1944, as amended, and pursuant to this Act,
to States, political subdivisions, and instrumentalities thereof,
and tax-supported and other nonprofit educational institutions for
school, classroom, or other educational use;
(B) the Federal Security Administrator, through such officer
or employees of the Federal Security Agency as he may designate,
in the case of property transferred pursuant to the Surplus
Property Act of 1944, as amended, and pursuant to this Act,
to States, political subdivisions and instrumentalities thereof,
tax-supported medical institutions, and to hospitals and other
similar institutions not operated for profit, for use in the pro-
tection of public health (including research) ;
(C) the Secretary of the Interior, in the case of property trans-
ferred pursuant to the Surplus Property Act of 1944, as amended3
and pursuant to this Act, to States, political subdivisions, and
instrumentalities thereof, and municipalities for use as a public
panrk, public recreational area, or historic monument for the
beefit of the public; or
(D) the Secretary of Defense, in the case of property trans-
ferred pursuant to the Surplus Property Act of 1944, as amended,
to States, political subdivisions, and tax-supported instrumentali-
ties thereof for use in the training and maintenance of civilian
components of the armed forces,
is authorized and directed-
(i) to determine and enforce compliance with the terms, condi-
tions, reservations, and restrictions contained in any instrument
by which such transfer was made;
(ii) to reform, correct, or amend any such instrument by the
execution of a corrective, reformative, or amendatory instrument
where necessary to correct such instrument or to conform such
transfer to the requirements of applicable law; and
(iii) to (I) grant releases from any of the terms, conditions,
reservations, and restrictions contained in, and (II) convey, quit-
claim, or release to the transferee or other eligible user any right
or interest reserved to the United States by, any instrument by
which such transfer was made, if he determines that the property
so transferred no longer serves the purpose for which it was
transferred, and that such release, conveyance, or quitclaim deed
will not prevent accomplishment of the purpose for which such
property was so transferred : Provided, That any such release,
conveyance, or quitclaim deed may be granted on, or made sub-
ject to, such terms and conditions as he shall deem necessary to
protect or advance the interests of the United States.
(1) The Administrator is authorized to take possession of abandoned
and other unclaimed property on premises owned or leased by the Gov-
ernment, to determine when title thereto vested in the United States,
and to utilize, transfer or otherwise dispose of such property. Former
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(Fos. LLw 1U.)
owners of such property upon proper claim filed within three years
from the date of vesting of title in the United States shall be paid
the proceeds realized from the disposition of such property or, if the
property is used or transferred the fair value therefor as of the
time title was vested in the United States as determined by the Admin-
istrator, less in either case the costs incident to the care and handling
of such property as determined by the Administrator.
PROCEEDS FROM TRANSFER OR DISPOSITION OF PROPERTY
SEO. 204. (a) All proceeds under this title from any transfer of
excess property to a Federal agency for its use, or from any sale,
lease, or other disposition of surplus property, shall be covered into
the Treasury as miscellaneous receipts, except as provided in subsec-
tions (b), (c), (d), and (e) 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 appropriated therefrom but by law reimbursable from
assessment, tax, or other revenue or receipts, then the net proceeds of
the disposition or transfer shall be credited to the reimbursable fund or
appropriation or paid to the Federal agency which determined such
property to be excess : Provided, That the proceeds shall be credited
to miscellaneous receipts in any case when the agency which deter-
mined the property to be excess shall deem it-uneconomical or imprac-
tical to ascertain the amount of net proceeds. As used in this sub-
section, the term "net proceeds of the disposition or transfer" means
the proceeds of the disposition or transfer minus all expenses incurred
for care and handling and disposition or transfer.
(c) Any Federal agency disposing of surplus property under this
title (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 any contract entered into by an executive agency or any
subcontract under such contract authorizes the proceeds of any sale of
property in the custody of the contractor or subcontractor to be credited
to the price or cost of the work covered by such contractor subcontract,
the proceeds of any such sale shall be credited in accordance with the
contract or subcontract.
(e) Any executive agency entitled to receive cash under any contract
covering the lease, sale or other disposition of surplus property may in
its discretion accept, in lieu of cash, any property determined by the
Munitions Board to be strategic or critical material at the prevailing
market price thereof at the time the cash payment or payments became
or become due.
(f) Where credit has been extended in connection with any disposi-
tion of surplus property under this title or by War Assets Adminis-
tration (or its predecessor agencies) under the Surplus Property Act
of 1944, or where such disposition has been by lease or permit, the
Administrator shall administer and manage such credit, lease, or per-
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mit, and any security therefor? and may enforce adjust, and settle
any right of the Government with respect thereto in such manner and
upon such terms as he deems in the best interest of the Government.
POLICIES, REGULATIONS, AND DELEGATIONS
SEC. 205. (a) The President may prescribe such policies and direct
tives, not inconsistent with the provisions of this Act as he shall deem
necessary to effectuate the provisions of this Act, which policies and
directives shall govern the Administrator and executive agencies in
carrying out their respective functions hereunder.
(b) The Comptroller General after considering the needs and
requirements of the executive agencies shall prescribe principles and
standards of accounting for property, cooperate with the Adminis-
trator and with the executive agencies in the development of property
accounting systems, and approve such systems when deemed to be ade-
quate and in conformity with prescribed principles and standards.
From time to time the General Accounting Office shall examine such
property accounting systems as are established by the executive agen-
cies to determine the extent of compliance with prescribed principles
and standards and approved systems, and the Comptroller General
shall report to the Congress any failure to comply with such principles
and standards or to adequately account for property.
(c) The Administrator shall prescribe such regulations as he deems
necessary to effectuate his functions under this Act, and the head m'
each executive agency shall cause to be issued such orders and direc-
tives as such head deems necessary to carry out such regulations.
(d) The Administrator is authorized to delegate and to authorize
successive redelegation of any authority transferred to or vested in
him by this Act (except for the authority to issue regulations on mat-
ters of policy having application to executive agencies, the authorit
contained in section i06, and General Services oAdministration or this le head
to any any officialmhe G
of any other Federal agency.
(e) With respect to any function transferred to or vested in the
General Services Administration or the Administrator by this Act,
the Administrator may (1) direct the undertaking of its performance
by the General Services Administration or by any constituent organi-
zation therein which he may designate or establish; or (2) designate
and authorize any executive agency to perform such function for
itself; or (3) designate and authorize any other executive agency to
perform such function; or (4) provide for such performance by any
combination of the foregoing methods. Any designation or assign-
ment of functions or delegation of authority to another executive
agency under this section shall be made only with the consent of the
executive agency concerned or upon direction of the President.
(f) When any executive agency (including the General Services
Administration and constituent organizations thereof) is authorized
and directed by the Administrator to carry out any function under
this Act, the Administrator may, with the approval of the Director
of the Bureau of the Budget, provide for the transfer of appropriate
personnel, records, property, and allocated funds of the General
Services Administration, or of such other executive agency as has
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theretofore carried out such function, to the executive agency so
authorized and directed.
(g) The Administrator may establish advisory committees to advise
with him with respect to any function transferred to or vested in the
Administrator by this Act. The members thereof shall serve without
compensation but shall be entitled to transportation and not to exceed
$25 per diem in lieu of subsistence, as authorized by section 5 of the
Act of August 2, 1946 (5 U. S. C. 73b-2), for persons so serving.
(h) The Administrator shall advise and consult with interested
Federal agencies with a view to obtaining their advice and assistance
in carrying out the purposes of this title.
SURVEYS, STANDARDIZATION AND CATALOGING
SEc. 206. (a) As he may deem necessary for the effectuation of his
functions under this title, and after adequate advance notice to the
executive agencies affected, and with due regard to the requirements
of the National Military Establishment as determined by the Secretary
of Defense, the Administrator is authorized (1) to make surveys of
Government property and property management practices and obtain
reports thereon from executive agencies; (2) to cooperate with execu-
tive agencies in the establishment of reasonable inventory levels for
property stocked by them and from time to time report any excessive
stocking to the Congress and to the Director of the Bureau of the
Budget; (3) to establish and maintain such uniform Federal supply
catalog system as may be appropriate to identify and classify personal
property under the control of Federal agencies : Provided, That the
Administrator and the Secretary of Defense shall coordinate the cata-
loging activities of the General Services Administration and the
National Military Establishment so as to avoid unnecessary duplica-
tion; and (4) to prescribe standardized forms and procedures2 except
such as the Comptroller General is authorized by law to prescribe, and
standard purchase specifications.
(b) Each Federal agency shall utilize such uniform Federal supply
catalog system and standard purchase specifications, except as the
Administrator, taking into consideration efficiency, economy, and other
interests of the Government, shall otherwise provide.
(c) The General Accounting Office shall audit all types of property
accounts and transactions at such times and in such manner as deter-
mined by the Comptroller General. Such audit shall be conducted as
far as practicable at the place or places where the property or records
of the executive agencies are kept and shall include but not necessarily
be limited to an evaluation of the effectiveness of internal controls and
audits, and a general audit of the discharge of accountability for
Government-owned or controlled property based upon generally
accepted principles of auditing.
APPLICABILITY OF ANTITRUST LAWS
SEc. 207. Whenever any executive agency shall begin negotiations
for the disposition 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 executive
agency shall promptly notify the Attorney General of the proposed
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disposal and the probable terms or conditions thereof. Within a
reasonable time, in no event to exceed sixty days after receiving such
notification, the Attorney General shall advise the Administrator and
the interested executive agency whether, insofar as he can determine,
the proposed disposition would tend to create or maintain a situation
inconsistent with the antitrust laws. Upon the request of the Attorney
General, the Administrator or interested executive agency shall fur-
nish 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 or proposed 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 (38 Stat. 717), as
amended; and sections 73 and 74 of the Act of August 27, 1894
(28 Stat. 570), as amended.
SEC. 208. (a) The Administrator is authorized, subject to the civil-
service and classification laws, to appoint and fix the compensation of
such personnel as may be necessary to carry out the provisions of titles
I, II, III, and V of this Act.
(b) To such extent as he finds necessary to carry out the provisions
of titles I, II, III, and V of this Act the Administrator is hereby
authorized to procure the temporary not in excess of one year) or
intermittent services of experts or consultants or organizations thereof,
including stenographic reporting services, by contract or appointment,
and in such cases such service shall be without regard to the civil-
service and classification laws, and, except in the case of stenographic
reporting services by organizations, without regard to section 3709,
Revised Statutes, as amended (41 U. S. C. 5).
(c) Notwithstanding the provisions of section 1222 of the Revised
Statutes (10 U. S. C. 576) or of any other provision of law, the
Administrator in carrying out the functions imposed upon him by this
Act is authorized to utilize in his agency the services of officials,
officers, and other personnel in other executive agencies, including
personnel of the armed services, with the consent of the head of the
agency concerned.
CIVIL REMEDIES AND PENALTIES
SEC. 209. (a) Where any property is transferred or disposed of in
accordance with this Act and any regulations prescribed hereunder,
no officer or employee of the Government shall (1) be liable with respect
to such transfer or disposition except for his own fraud, or (2) be
accountable for the collection of any purchase price for such property
which is determined to be uncollectible by the Federal agency respon-
sible therefor.
(b) Every person who shall use or engage in, or cause to be used or
engaged in, or enter into an agreement, combination, or conspiracy to
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use or engage in or to 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 benefits from the United States or any Federal agency in con-
nection with the procurement, transfer, or disposition of property
hereunder-
(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
cost 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 considera-
tion agreed to be given by the United States or any Federal agency
to such person or by such person to the United States or any
Federal agency, as the case may be; or
(8) shall, if the United States shall so elect, restore to the
United States the money or property thus secured and obtained
and the United States shall retain as liquidated damages any
property, money, or other consideration given to the United States
or any Federal agency for such money or property, as the case
may be.
(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 and possessions of the United
States, within whose jurisdictional limits the person, or persons, doing
or committing such act, or any one of them, resides or all be found,
shall wheresoever such act may have been done or committed, have
full power and jurisdiction to hear, try, and determine such suit, and
such person or persons as are not inhabitants of or found within the
district in which suit is brought may be brought in by order of the
court to be served personally or by publication or in such other
reasonable manner as the court may direct.
(d) The civil remedies provided in this section shall be in addition
to all other criminal penalties and civil remedies provided by law.
SEC. 210. The Administrator shall submit a report to the Congress,
in January of each year and at such other times as he may deem it
desirable, regarding the administration of his functions under this
Act, together with such recommendations for amendments to this Act
as he may deem appropriate as the result of the administration of
such functions, at which time he shall also cite the laws becoming
obsolete by reason of passage or operation of the provisions of this Act.
TITLE III-PROCUREMENT PROCEDURE
SEC. 801. The purpose of this title is to facilitate the procurement
of supplies and services.
SEC. 802. (a) The provisions of this title shall be applicable to
purchases and contracts for supplies or services made-
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(1) by the General Services Administration for the use of
such agency or otherwise; and
(2) by any other executive agency (except any agency named
in section 2 (a) of the Armed Services Procurement Act of 1947),
to the extent of and in conformity with authority delegated by
the Administrator pursuant to the provisions of this subsection.
The Administrator may delegate to the head of any other such agency
authority to make purchases and contracts for supplies or services
pursuant to the provisions of this title (A) for the use of two or
more executive agencies or (B) in other cases upon a determination
by the Administrator that by reason of circumstances set forth in
such determination such delegation is advantageous to the Govern-
ment in terms of economy, efficiency, or national security. Notice
of every such delegation of authority so made shall be furnished to
the General Accounting Office.
(b) It is the declared policy of the Congress that a fair propor-
tion of the total purchases and contracts for supplies and services for
the Government shall be placed with small-business concerns. When-
ever it is proposed to make a contract or purchase in excess of $10,000
by negotiation and without advertising, pursuant to the authority of
paragraph (7) or (8) of section 302 (c) of this title suitable advance
publicity, as determined by the agency head with due regard to the
type of supplies involved and other relevant considerations, shall be
given for a period of at least fifteen days, -wherever practicable, as
determined by the agency head.
(c) All purchases and contracts for supplies and services shall be
made by advertising, as provided in section 303, except that such pur-
chases and contracts may be negotiated by the agency head without
advertising if-
(1) determined to be necessary in the public interest during the
period of a national emergency declared by the President or by the
Congress ;
(2) the public exigency will not admit of the delay incident to
advertising;
(3) the aggregate amount involved does not exceed $1,000:
Provided, That no agency other than the General Services Admin-
istration shall make any purchase oft or contract for, supplies or
services in excess of $500 under this paragraph except in the
exercise of authority conferred by the Administrator to procure
and furnish supplies and services for the use of two or more
executive agencies;
(4) for personal or professional services;
(5) for any: service to be rendered by any university, college, or
other educational institution;
(6) the supplies or services are to be procured and used outside
the limits of the United. States and its possessions;
(7) for medicines or medical supplies;
(8) for supplies purchased for authorized resale;
(9) for supplies or services for which it is impracticable to
secure competition
(10) the agency head determines that the purchase or contract
is for experimental, developmental, or research work, or for the
manufacture or furnishing of supplies for experimentation, devel-
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opulent, research, or test : Provided, That beginning six months
after the effective date of this title and at the end of each six-month
period thereafter, there shall be furnished to the Congress a report
setting forth the name.of each contractor with whom a contract
has been entered into pursuant to this paragraph (10) since the
date of the last such report, the amount of the contract, and, with
due consideration given to the national security, a description of
the work required to be performed thereunder;
(11) for supplies or services as to which the agency head deter-
mines that the character, ingredients, or components thereof are
such that the purchase or contract should not be publicly disclosed ;
(12) for equipment which the agency head determines to be
technical equipment, and as to which he determines that the pro-
curement thereof without advertising is necessary in special situ-
ations or in particular localities in order to assure standardization
of equipment and interchangeability of parts and that such stand-
ardization and interchangeability is necessary in the public
interest;
(13) for supplies or services as to which the agency head
determines that bid prices after advertising therefor are not
reasonable (either as to all or as to some part of the requirements)
or have not been independently arrived at in open competition :
Provided, That no negotiated purchase or contract may be entered
into under this paragraph after the rejection of all or some of
the bids received unless (A) notification of the intention to nego-
tiate and reasonable opportunity to negotiate shall have been
given by the agency head to each responsible bidder and (B) the
negotiated price is the lowest negotiated price offered by any
responsible supplier; or
(14) otherwise authorized by law.
(d) If in the opinion of the agency head bids received after adver-
tising evidence any violation of the antitrust laws he shall refer such
bids to the Attorney General for appropriate action.
(e) This section shall not be construed to (A) authorize the erec-
tion, repair, or furnishing of any public building or public improve-
ment, but such authorization shall be required in the same manner
as heretofore, or (B) permit any contract for the construction or
repair of buildings, roads, sidewalks, sewers, mains, or similar items to
be negotiated without advertising as required by section 303, unless
such contract is to be performed outside the continental United States
or unless negotiation of such contract is authorized by the provisions
of paragraph (1), (2), (3), (9), (10), (11), or (13) of subsection
(c) of this section.
ADVERTISING REQUIREMENTS
SEc. 303. Whenever advertising is required-
(a) The advertisement for bids shall be made a sufficient time
previous to the purchase or contract, and specifications and invitations
for bids shall permit such full and free competition as is consistent
with the procurement of types of supplies and services necessary to
meet the requirements of the agency concerned.
(b) All bids shall be publicly opened at the time and place stated
in the advertisement. Award shall be made with reasonable prompt-
ness by written notice to that responsible bidder whose bid, conform-
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ing to the invitation for bids, will be most advantageous to the Govern-
ment, price and other factors considered : Provided, That all bids may
be rejected when the agency head determines that it is in the public
interest so to do.
REQUIREMENTS OF NEGOTIATED CONTRACTS
SEc. 304. (a) Except as provided in subsection (b) of this section,
contracts negotiated pursuant to section 302 (c) may be of any type
which in the opinion of the agency head will promote the best interests
of the Government. Every contract negotiated pursuant to section
302 (c) shall contain a suitable warranty, as determined by the agency
head, by the contractor that no person or selling agency has been
employed or retained to solicit or secure such contract upon an agree-
ment or understanding for a commission, percentage, brokerage, or
contingent fee, excepting bona fide employees or bona fide established
commercial or selling agencies maintained by the contractor for the
purpose of securing business, for the breach or violation of which
warranty the Government shall have the right to annul such contract
without liability or in its discretion to deduct from the contract price
or consideration the full amount of such commission, percentage,
brokerage, or contingent fee.
(b) The cost-plus-a-percentage-of-cost system of contracting shall
not be used, and in the case of a cost-plus-a-fixed-fee contract the fee
shall not exceed 10 per centum of the estimated cost of the contract,
exclusive of the fee, as determined by the agency head at the time of
entering into such contract (except that a fee not in excess of 15 per
centum of such estimated cost is authorized in any such contract for
experimental, developmental, or research work and that a fee inclusive
of the contractor's costs and not in excess of 6 per centiim of the esti-
mated cost, exclusive of fees, as determined by the agency head at the
time of entering into the contract, of the project to which such fee is
applicable is authorized in contracts for architectural or engineering
services relating to any public works or utility project). Neither a
cost nor a cost-plus-a-fixed-fee contract nor an incentive-type contract
shall be used unless the agency head determines that such method of
contracting is likely to be less costly than other methods or that it is
impractical to secure supplies or services of the kind or quality
required without the use of a cost or cost-plus-a-fixed-fee contract or
an incentive-type contract. All cost and cost plus a fixed fee con-
tracts shall provide for advance notification by the contractor to the
procuring agency of any subcontract thereunder on a cost-plus-a-
fixed-fee basis and. of any fixed-price subcontract or purchase order
which exceeds in dollar amount either $25,000 or 5 per centum of the
total estimated cost of the prime contract; and a procuring agencyy,
through any authorized representative thereof, shall have the right
to inspect the plans and to audit the books and records of any prime
contractor or subcontractor engaged in the performance of a' cost or
cost-plus-a-fixed-fee contract.
SEC. 305. (a) The agency head may make advance payments under
negotiated contracts heretofore or hereafter executed in any amount
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not exceeding the contract price upon such terms as the parties shall
agree : Provided, That advance payments shall be made only upon
adequate security and if the agency head determines that provision
for such advance payments is In the public interest or in the interest
of the national defense and is necessary and appropriate in order
to procure required supplies or services under the contract.
(b) The terms governing advance payments may include as secu-
rity provision for and upon inclusion of such provision there shall
thereby be created, a lien in favor of the Government, paramount
to all other liens, upon the supplies contracted for, upon the credit
balance in any special account in which such payments may be depos-
ited and upon such of the material and other property acquired for
performance of the contract as the parties shall agree.
WAIVER OF LIQUIDATED DAMAGES
SEO.806. Whenever any contract made on behalf of the Government
by the agency head or by officers authorized by him so to do includes
a provision for liquidated damages for delay, the Comptroller General
on the recommendation of the agency head is authorized and empow-
ered to remit the whole or any part of such damages as in his discre-
tion may be just and equitable.
ADMINISTRATIVE DETERMINATIONS AND DELEGATIONS
SEC. 307. (a) The determinations and decisions provided in this title
to be made by the Administrator or other agency head may be made
with respect to individual purchases and contracts or with respect
to classes of purchases or contracts, and shall be final. Except as pro-
vided in subsection (b) of this section, the agency head is authorized
to delegate his powers provided by this title, including the making
of such determinations and decisions, in his discretion and subject to
his direction, to any other officer or officers or officials of the agency.
(b) The power of the agency head to make the determinations or
decisions specified in paragraphs (11) and (12) of section 302 (c) and
in section 305 (a) shall not be delegable, and the power to make the
determinations or decisions specified in paragraph (10) of section
802 (c) shall be delegable only to a chief officer responsible for pro-
curement and only with respect to contracts which will not require the
expenditure of more than $25,000. The power of the Administrator
to make the delegations and determinations specified in section 302 (a)
shall be delegable only to the Deputy Administrator or to the chief
official of any principal organizational unit of the General Services
Administration.
(c) Each determination or decision required by paragraphs (10),
(11), (12), or (13) of section 302 (c), by section 304 or by section
305 (a) shall be based upon written findings made by the official
making such determination, which findings shall be final and shall
be available within the agency for a period of at least six years follow-
ing the date of the determination. A co of the findings shall be
submitted to the General Accountirg ice with t :e contract.
(d) In any case where any purchase or contract is negotiated pur-
suant to the provisions of section 302 (c), except in a case covered by
paragraphs (2), (3), (4), (5), or (6) thereof, the data with respect
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23 [Pus. LAw W4
to the negotiation shall be preserved in the files of the agency for a
period of six years following final payment on such contract.
STATUTES CONTINUED IN EFFECT
Sxo. 308. No purchase or contract shall be exempt from the Act of
June 30, 1936 (49 Stat. 2036, as amended; 41 U. S. C. 35 to 45), or
from the Act of March 3, 1931 (46 Stat. 1494, as amended; 40 U. S. 0.
276a to 276a-6), solel by reason of having been entered into pur-
suant to section 302 (c) hereof without advertising, and the provisions
of said Acts and of the Act of June 19, 1912 (37 Stat. 137, as amended;
40 U. S. C. 324 and 325a), if otherwise applicable, shall apply to such
purchases and contracts.
DEFINITIONS
SEO. 309. As used in this title--
(a) The term "agency head" shall mean the head or any assistant
head of any executive agency, and may at the option of the Adminis-
trator include the chief official of any principal organizational unit
of the General Services Administration.
(b) The term "supplies" shall mean all property except land, and
shall include, by way of description and without limitation, public
works, buildings, facilities ships, floating equipment, and vessels of
every character, type and description (except the categories of naval
vessels named in section 3 (d) ), aircraft, parts, accessories, equipment,
machine tools and alteration or installation thereof.
STATUTES NOT APPLICABLE
SEC. 810. The following provisions of law shall not apply to the
procurement of supplies or services (1) by the General Services
Administration, or (2) within the scope of authority delegated by the
Administrator to any other executive agency :
Revised Statutes, section 3709, as amended (41 U. S. C. 5) ;
Revised Statutes, section 3735 (41 U. S. C. 13) ;
Sections 1 and 2 of the Act of October 10, 1940 (54 Stat. 1109, as
amended ; 41 U. S. C. 6 and 6a).
I
I
SEC. 401. Each executive agency having foreign excess property
shall be responsible for the disposal thereof: Provided, That (a) the
head of each such executive agency shall, with respect to the disposi-
tion of such property, conform to the foreign policy of the United
States; (b) the Secretary of State shall have the authority to use for-
eign currencies and credits acquired by the United States under section
402 (b) of this Act in order to effectuate the purposes of section
32 (b) (2) of the Surplus Property Act of 1944, as amended, and the
Foreign Service Buildings Act of May 7, 1926, as amended (including
Public Law 547, Seventy-ninth Congress (60 Stat. 663)), and for the
purpose of paying any other governmental expenses payable in local
currencies, and the authority to amend, modify, and renew agreements
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in effect on the effective date of this Act; (c) any foreign currencies
or credits acquired by the Department of State pursuant to such
agreements shall be administered in accordance with procedures that
may from time to time be established by the Secretary of the Treasury
and, if and when reduced to United States currency, shall be covered
into the Treasury as miscellaneous receipts; and (d) the Department
of State shall, except to such extent as the President shall otherwise
determine, continue to perform other functions with respect to agree-
ments for the disposal of foreign excess property in effect on the
effective date of this Act.
SEC. 402. Foreign excess property may be disposed of (a) by sale,
exchange, lease, or transfer, for cash, credit, or other property, with or
without warranty, and upon such other terms and conditions as the
head of the executive agency concerned deems proper; but in no event
shall any property be sold without a condition forbidding its importa-
tion into the United States, unless the Secretary of Agriculture (in the
case of any agricultural commodity, food, or cotton or woolen goods
or the Secretary of Commerce (in the case of any other property
determines that the importation of such property would relieve domes-
tic shortages or otherwise be beneficial to the.economy of this country,
or (b) for foreign currencies or credits, or substantial benefits or the
discharge of claims resulting from the compromise or settlement of
such claims by any executive agency in accordance with the law,
whenever the head of the executive agency concerned determines that
it is in the interest of the United States to do so. Such property may
be disposed of without advertising when the head of the executive
agency concerned finds so doing to be most practicable and to be advan-
tageous to the Government. The head of each executive agency respon-
sible for the disposal of foreign excess property may execute such
documents for the transfer of title or other interest in property and
take such other action as he deems necessary or proper to dispose of
such property; and may authorize the abandonment, destruction, or
donation of foreign excess property under his control which has no
commercial value or the estimated cost of care and handling of which
would exceed the estimated proceeds from its sale.
PROCEEDS, FOREIGN CURRENCIES
SEC. 403. Proceeds from the sale, lease, or other disposition of for-
eign excess property, (a) shall, if in the form of foreign currencies
or credits, be administered in accordance with procedures that may
from time to time be established by the Secretary of the Treasury, and
(b) shall, if in United States currency, or when any proceeds in for-
eign currencies or credits shall be reduced to United States currency,
be covered into the Treasury as miscellaneous receipts : Provided,
That the provisions of section 204 (b) (which by their terms apply
to property disposed of under title II) shall be applicable to proceeds
of foreign excess property disposed of for United States currency
under this title IV : And provided further, That any executive agency
disposing of foreign excess property under this title (1) mky deposit,
in a special account with the Treasurer of the United States, such
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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.
MISCELLANEOUS PROVISIONS
SEC. 404. (a) The President may prescribe such policies, not incon-
sistent with the provisions of this title, as he shall deem necessary to
effectuate the provisions of this title, which provisions shall guide each
executive agency in carrying out its functions hereunder.
(b) Any authority conferred upon any executive agency or the
head thereof by the provisions of this title may be delegated, and
successive redelegation thereof may be authorized, by such head to
an official in such agency or to the head of any other executive agency.
(c) The head of each executive agency responsible for the disposal
of foreign excess property hereunder may, as may be necessary to
carry out his functions under this title, (1) subject to the civil-service
and classification laws, appoint and fix the compensation of personnel,
and (2) without regard to the civil-service and classification laws,
appoint and fix the compensation of personnel outside the continental'
limits of the United States.
(d) The head of each executive agency responsible for the disposal
of foreign excess property under this title shall submit a report to
Congress in January of each year or at such other time or times as
he may deem desirable relative to its activities under this title, together
with any appropriate recommendations.
(e) There shall be transferred from the Department of State to each
other executive agency affected by this title such records, property
personnel, obligations, commitments, and unexpended balances oi
appropriations, allocations, and other funds, available or to be made
available, as the Director of the Bureau of the Budget shall determine
to relate to functions of such agency under this title which have
heretofore been administered by the Department of State.
TITLE V-GENERAL PROVISIONS
APPLICABILITY OF EXISTING PROCEDURES
SEC. 501. All policies, procedures, and directives prescribed-
(a) by either the Director, Bureau of Federal Supply, or the
Secretary of the Treasury and relating to any function transferred
to or vested in the Administrator, by the provisions of this Act ?
(b) by any officer of the Government under the authority of
the Surplus Property Act of 1944, as amended, or under other
authority with respect to surplus property or foreign excess
property ;
(c) by or under authority of the Federal Works Administra-
tor or the head of any constituent agency of the Federal Works
Agency ; and
(d) by the Archivist of the United States or any other officer
or body whose functions are transferred by title I of this Act,
in effect upon the effective date of this Act and not inconsistent here-
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with, shall remain in full force and effect unless and until superseded,
or except as they may be amended, under the authority of this Act or
under other appropriate authority.
REPEAL AND SAVING PROVISIONS
SEC. 502. (a) There are hereby repealed-
(1) the Surplus Property Act of 1944, as amended (except
sections 13 (d) 13 (g), 13 (h), 28, and 32 (b) (2) ), and sections
501 and 502 of Reorganization Plan Numbered 1 of 1947: Pro-
vided, That, with respect to the disposal under this Act of any
surplus real 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;
(2) that portion of the Act entitled "An Act making supple-
mental appropriations for the Executive Office and sundry mde-
pendent 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";
(3) the Act entitled "An Act to authorize the Secretary of War
to dispose of material no longer needed by the Army", approvsd
February 28, 1936 (49 Stat. 1147; 10 U. S. C. 1258) ;
(4) the Act entitled "An Act to authorize the Secretary of the
Navy to dispose of material no Ion er needed by the Navy",
a48c oved May 23, 1930, as amended 1(46 Stat. 878; 34 U. S. C.
(5)) section 5 of the Act of July 11, 1919 (41 Stat. 67; 40 U. S. C.
811) ;
(6) the first and second provisos contained in the fifth para-
graph under the heading "Division of Supply" in section 1 of the
Act of December 20 1928 (45 Stat. 1030; 40 U. S. C. 811a) ;
(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
ngress) i
(8) section 203 of the Act of June 26, 1943 (57 Stat. 195, as
amended; 5 U. S. C. 118d-1)
9) the Act of April 15,193 (50 Stat. 64; 5 U. S. C.118d) ;
(10) the second proviso contained in the paragraph of the Act
of August 10, 1912 (37 Stat. 296; 5 U. S. C. 545), headed "Con-
tingent expenses, Department of Agriculture";
(11) the second proviso contained in the twentieth paragraph
of section 1 of the Act of March 2, 1917 (89 Stat. 978; 5 U. S. C.
494)-
(U) the twenty-sixth paragraph under the heading "National
Parks" of the Act of January 24, 1923 (42 Stat. 1215; 16
U. S. C. 9);
(13) the fifth paragraph under the heading "Experiments and
demonstrations in livestock production in the cane-sugar and
cotton districts of the United States" of the Act of June 30, 1914
(88 Stat. 441; 5 U. S. C. 546) ;
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(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)
(15) the second proviso contained in tLe second paragraph
under the heading Clothing and camp and garrison equipage"
of section 1 of the Act of August 29, 1916 (39 Stat. 635; 10
U. S. C. 1271) ;
(16) the Act of May 11 1939 (53 Stat. 739; 10 U. S. S.C. 1271a(17) the fifth paragraph under the heading "Office of the Child
Signal Officer" of the Act of May 12, 1917 (40 Stat. 43, as
amended; 10 U. S. C. 1272) ;
(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) ;
(19 the fourteenth paragraph under the heading "Smithso-
nian nstitution" of section 1 of the Act of March 3, 1915 (38 Stat.
839; 20 U. S. C. 66) ;
(20) the second paragraph 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) ;
(21) the second paragraph under the heading "Saint Eliza-
beths Hospital" of section 1 of the Act of June 12, 1917 (40 Stat.
153 ; 24 U. S. C. 174) ;
(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) ;
(23) the second proviso of the first paragraph under the head-
ing "Bureau of Yards and Docks" of the Act of August 29, 1916
(34 U. S. C. 532) ;
(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) ;
(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) ;
(26) the first sentence of section 5 of the Act of March 4, 1915
(38 Stat. 1161= 41 U. S. C. 26) ;
(27) the third paragraph under the heading "Interstate Com-
merce Commission" of section 1 of the Act of August 1, 1914 (88
Stat. 627; 49 U. S. C. 58) ;
(28) the Act of June 8, 1941 (55 Stat. 247; 14 U. S. C. 31b)
(29) section 4 of the Act of June 17, 1910 (86 Stat. 581; 41
U. S.C.7);
(30) the Act of February 27, 1929 (45 Stat. 1841; 41 U. S. C.
7a, 7b 7c, and 7d) ; and
(31~ section 1 of the Act of May 14, 1935 (49 Stat. 284; 41
U. S. C. 7c-1).
(b) The provisions of the first, third, and fifth paragraphs 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.
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(e) The authority conferred by this Act is in addition to any
authority conferred by any other law and shall not be subject to the
provisions of any law inconsistent herewith, except that sections 205
(b) and 206 (c) of this Act shall not be applicable to any Government
corporation or agency which is subject to the Government Corporation
Control Act (59 Stat. 597; 31 U. S. C. 841).
(d) Nothing in this Act shall impair or affect any authority of-
(1 the President under the Philippine Property Act of 1946
(60 Stat. 418; 22 U. S. C. 1381) ;
(2) any executive agency with respect to any phase (including,
but not limited to procurement, storage, transportation, process-
ing, and disposal] of any program conducted for purposes of
resale, price support, grants to farmers, stabilization, transfer to
foreign governments, or foreign aid, relief, or rehabilitation :
Provided, That 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 con-
duct of its business, coordinate its operations with the require-
ments of this Act and the policies and regulations prescribed
pursuant thereto;
(8) any executive agency named in the Armed Services Pro-
curement Act of 1947, and the head thereof, with respect to the
administration of said Act;
(4) the National Military Establishthent with respect to prop-
erty required for or located in occupied territories;
(5) the Secretary of Defense with respect to the administration
of the National Industrial Reserve Act of 1948;
(6) the Secretary of Defense, the Munitions Board, and the
Secretaries of the Army, Navy, and Air Force with respect to the
administration of the Strategic and Critical Materials Stock
Piling Act (60 Stat. 596), and provided that any imported mate-
rials which the authorized procuring agency shall certify to the
Commiss ()iier of Customs to be strategic and critical materials
procured under said Act may be entered, or withdrawn from
warehouse, free of duty;
(7) the Secretary of State under the Foreign Service Buildings
Act of May 7, 1926, as amended;
(8) the Secretary of the Army, the Secretary of the Navy, and
the Secretary of the Air Force with respect to the administration
of section 1 (b) of the Act entitled "An Act to expedite the
strengthenin of the national defense", approved July 2, 1940
(54 Stat. 7121;
(9) the Secretary of Agriculture or the Department of Agri-
culture under (A) the National School Lunch Act (60 Stat. 230) ;
(B) the Farmers Home Administration Act of 1946 (60 Stat.
1062) ; (C) the Act of August 31, 1947, Public Law 298, Eightieth
Congress, with respect to the disposal of labor supply centers
and labor homes, labor camps, or facilities; (D) section 32 of
the Act of August 24, 1935 (49 Stat. 774), as amended, with
respect to the exportation and domestic conFumption of agricul-
tural products; or (E) section 201 of the A~; icultural Adjustment
Act of 1938 (52 Stat. 36) or section 203 (j) of the Agricultural
Marketing Act of 1946 (60 Stat. 1082) ;
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(10) the Secretary of Agriculture, Farm Credit Administration
or any farm credit board under section 6 (b) of the Farm Credit
Act of 1937 (50 Stat. 706), with respect to the acquisition or
disposal of property;
(11) the Housing and Home Finance Agency, or any officer or
constituent agency therein, with respect to the disposal of resi-
dential property, or of other property (real or personal) held as
part of or acquired for or in connection with residential property,
or in connection with the insurance of mortgages, loans, or Savings
and loan accounts under the National Housing Act;
(12) the Tennessee Valley Authority with respect to nonper-
sonal services, with respect to the matters referred to in section
201 (a) (4), and with respect to any property acquired or to be
acquired for or in connection with any program of processing,
manufacture, production, or force account construction : Provided,
That the Tennessee Valley Authority shall to the maximum extent
that it may deem practicable, consistent with the fulfillment of
the purpose of its program and the effective and efficient conduct
of its business coordinate its operations with the requirements
of this Act and the policies and regulations prescribed pursuant
thereto;
13) the Atomic Energy Commission;
14) the Administrator of Civil Aeronautics or the Chief of the
Weather Bureau with respect to the disposal of airport property
and airway property for use as such property. For the purpose
of this paragraph the terms "airport property' and "airway prop-
erty" shall have the respective meanings ascribed to them in the
International Aviation Facilities Act (62 Stat. 450) ;
(15) the Postmaster General or the Postal Establishment with
respect to the means and methods of distribution and transporta-
tion of the mails, and contracts, negotiations, and proceedings
before Federal and State regulatory and rate-making bodies,
relating to the transportation of the mails;
(16) the United States Maritime Commission with respect to
the construction, reconstruction, and reconditioning (including
outfitting and equipping incident to the foregoing), the acquisi-
tion, procurement operation, maintenance, preservation sale,
lease, or charter oy any merchant vessel or of any shipyard, ship
site, terminal, pier, dock, warehouse, or other installation necessary
or appropriate for the carrying out of any program of such
Commission authorized by law, or nonadministrative activities
incidental thereto : Provided, That the United States Maritime
Commission shall to the maximum extent that it may deem
practicable, consistent with the fulfillment of the purposes of
such programs and the effective and efficient conduct of such
activities, coordinate its operations with the requirements of this
Act, and the policies and regulations prescribed pursuant thereto;
(17) Centra],,~iglli1 ence Agency;
(18) except as provided in subsections (a) and (b) hereof, any
other law relating to the procure ment, utilization, or disposal of
property: Provided, That, subject to, and within the scope of
authority conferred on the Administrator by other provisions of
this Act, he is authorized to prescribe regulations to govern any
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procurement, utilization, or disposal of property under any such
law, whenever but only to the extent he deems such action neces-
sary to effectuate the provisions of title II; nor
(19) for such period of time as the President may specify any
other authority of any executive agency which the President deter-
mines within one year after the effective date of this Act should,
in the public interest, stand unimpaired by this Act.
(e) Section 3709, Revised Statutes, as amended (41 U. S. C. 5), is
amended by striking out "$100" wherever it appears therein and insert-
ing in lieu thereof "$500".
AUTHORIZATIONS FOR APPROPRIATIONS AND TRANSFER AUTHORITY
SEC. 503. (a) There are hereby authorized to be appropriated such
sums as may be necessary to carry out the provisions of this Act.
(b) When authorized by the Director of the Bureau of the Budget,
any Federal agency may 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
purposes similar to those provided for in sections 201, 202, 203, and
205 of this Act.
SEPARABILITY
SEC. 504. If any provision of this Act, or the application thereof to
any person or circumstances, is held invalid, the remainder of this
Act, and the application of such provision to other persons or circum-
stances, shall not be affected thereby.
EFFECTIVE DATE
Sim 505. This Act shall become effective on July 1, 1949, except that
the provisions of section 502 (a) (2) (repealing prior law relating to
the dispositio:, of the affairs of the War Assets Administration) shall
become effective on June 30, 1949.
Approved June 30, 1949.
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