FEPP DESK GUIDE

CHAPTER 30 - DISPOSAL

CONTENTS

Need for Disposal

Disposal Authority

Disposal Policy

The Disposal Cycle

GSA Donation Program

GSA Sales Program

Forest Service to Determine Who Will Sell FEPP

Local Disposal Instructions

• Donations (Nonpublic or Public Body)
• Limited Agency (Small Lot) Sales
• Scrap Sales
• Abandonment or Destruction

Disposal of Property with Special Handling Requirements

Tips to Speed Up Disposals

NEED FOR DISPOSAL

Dispose of property when it is no longer needed because of changed program requirements or when its worn condition renders it no longer serviceable. The need for disposal can be reduced by the judicious acquisition of FEPP. The acquisition of a larger quantity than needed, or of marginal property, only presents future disposal problems. Acquisition does necessitate later disposal action.

DISPOSAL AUTHORITY

State forestry organizations shall not dispose of any inventoried or nonconsumable FEPP without the prior written approval of the State forester and the USDA Forest Service regional or area PMO. Acceptable methods of disposal include:

• Reutilization
• Transfer
• Donation
• Sale
• Abandonment/Destruction

NOTE: Cannibalization is a form of use that usually requires a subsequent disposal action.

Consumable or expendable property that is in usable condition should be reported to the Forest Service.

DISPOSAL POLICY

Unwanted but serviceable property may be useful to other States or other Forest Service units. The Forest Service shall inform other States and units of such excess property reported for disposition and assist in a program to reutilize that property. It is important to document all property transfers between units. This may be accomplished on an AD-107 which requires the signature of both the APO of each unit and of the Forest Service PMO (who will see that the inventory records are updated). This should be done for all property whether inventoried or noninventoried.

State forestry personnel should notify their SASP of all property reported for disposal and note that this has been done on the disposal document that is sent to the Forest Service.

Local sale of FEPP is an option only after property has cleared Forest Service and GSA disposal procedures and approval has been granted for this method of disposal.

The Defense Logistics Agency (DLA) has a Memorandum of Understanding (MOU) with the GSA that allows Federal property to be turned in to a DRMO for a charge of 1 percent of the original acquisition cost with a $28 maximum or $5,000 maximum per turn-in document. For scrap, the maximum charge will be $66.00 per ton, with a minimum charge of $28.00 per turn-in document. The advantage is in immediate disposal of unneeded property with the attendant cost savings in storage and sale preparation; the disadvantage is in the up-front charge.

THE DISPOSAL CYCLE

1. User or custodian reports that the property is no longer needed on a unit.
2. The State FEPP manager will survey other units for assignment requests. If no assignment is made within that State, the user or designated person fills out an SF-120, noting on it any agencies who might be interested in obtaining the equipment, and obtains the accountable officer's approving signature. It is then submitted to the next level of the organization and forwarded to the Forest Service regional/area FEPP PMO. Provide a courtesy copy to the SASP.
3. The Forest Service FEPP PMO surveys other Forest Service locations for reassignment; if no assignment is made and the item's acquisition cost is $5,000 or more and the condition code is X (SALVAGE) or better, the property is reported electronically to the DEPPC. ALL aircraft and airframe structural components must be reported, regardless of condition code. The property is reported electronically to the DEPPC. If less than $5,000, the property is then reported directly to GSA by DEPPC.
4. DEPPC makes the property available for other USDA agencies for a period of 30 days. If no assignment is made, DEPPC electronically reports the property to GSA. GSA has an MOU with the DLA that allows Federal property to be turned in to a DRMO for a charge of 1 percent of the original acquisition cost. The advantage is in immediate disposal of unneeded property with the attendant cost savings in storage and sale preparation; the disadvantage is in the up-front charge. See a copy of the MOU at the end of this chapter. NOTE: If the property is physically moved to a DRMO at this point, the disposal cycle is complete.
5. GSA conducts Governmentwide screening for 21 days through their electronic FEDSCREEN program. If an assignment is made, GSA prepares and returns to the Forest Service an SF-122 authorizing the transfer. If no assignment is made, the property becomes eligible for donation screening (see GSA Donation and Sales Programs).
6. The GSA allows 21 days for the SASP to screen. If an assignment is made, GSA will prepare and return to the Forest Service an SF-123 authorizing the transfer. If no assignment is made, the property moves to GSA Sales. See "GSA Donation and Sales Programs."
7. GSA Sales should either conduct a sale within 30-90 days, or release the property back to the Forest Service for local disposal. If GSA conducts a sale, the custodian will be contacted to verify information associated with the sale, and will be advised when the sale will take place. Sale brochures will be sent along with tagging information. It is the custodian's responsibility to show prospective bidders the property during the inspection period. GSA will notify the Forest Service of award and send appropriate release documents with instructions.

   If the Forest Service elects to conduct its own sale, GSA will notify the Forest Service when the screening process is complete. The Forest Service FEPP PMO will advise the State property manager of the next step.

8. If GSA releases the property for local disposition, the Forest Service FEPP PMO will advise the State property manager. Options include local sales, donation to a public body, scrap sale, or abandonment and destruction.

GSA DONATION PROGRAM

Agency Donation Responsibilities: After the utilization cycle, agencies are obliged to make surplus personal property available for donation either by reporting items to GSA and/or providing visibility of available property to donation screeners at the holding site. Although donation screeners are afforded the same courtesies as Federal screeners, proper identification such as the GSA Form 2496 Screener's Identification should be presented by non-Federal screeners as a prerequisite for site admission.

Donation Timeframes:

• The donation screening is 21 days.
• Once a donee freezes surplus property, the custodian will allow 14 days for receipt of the SF-123, Transfer Order Surplus Personal Property.

GSA SALES PROGRAM

SALES RESPONSIBILITIES:
GSA objectives are to conduct sales in an expeditious manner and to obtain maximum returns at a minimum of inconvenience to holding agencies. Holding agencies are responsible for the care and handling of surplus property during the sales process, and also perform these additional services:

• Provide GSA with descriptive information necessary for a successful sale on either the SF-120 for reportable property or the SF-126 for nonreportable property.
• Assist in the physical arrangement of property to be sold.
• Transport property to a consolidated sales site when agreed to by GSA.
• Provide for adequate inspection of property by prospective bidders.

Points to Remember:

• Exchange/sale, nonappropriated fund, or other types of property eligible for sales reimbursement should be identified on the turn-in document.
• Lotting should appeal to the local bidding audience. Locating property in central locations is ideal. GSA can provide auctions for volume of property in one location. Auctions produce immediate results for removal.
• Vehicles that have been cleaned and reconditioned usually bring in significantly higher returns.
• Accurate and complete descriptions increase the bids received.

FOREST SERVICE TO DETERMINE WHO WILL SELL FEPP

FPMR, Subchapter H, authorizes Federal agencies to determine who will sell an agency's personal property. This change applies to your FEPP program. For property reported to the Forest Service for disposal, the following options are available:

• The Forest Service may continue to report the property for disposal to GSA: This means the property will automatically go to the GSA Sales Branch after it clears Utilization and Donation screening.
• The Forest Service may elect to sell property itself or allow the State to sell through State sales processes.

For Federal: Report as usual, but indicate in the description portion of the SF-120 that the Forest Service will sell this property. Include the following statement: "Do not program this property for sale. The USDA Forest Service will sell this property." This should prevent GSA from automatically programming your property for sale after it clears Utilization and Donation screening.

To use State sales procedures: Once authorized by the Forest Service, property may be sold through State sales procedures. The receipts from the sales must be returned to the Forest Service. Receipts should be made payable to the U.S. Treasury Miscellaneous Receipts Account. Only certified forms of payment (cashier's check, certified check, money order, etc.) will be accepted.

If the property is returned or after DEPPC screening is completed, the Forest Service may request permission from GSA to transfer the property to a specific DRMO for disposal. Check with the local DRMO and GSA area property officer for procedures in their areas.

LOCAL DISPOSAL INSTRUCTIONS

Local sale of FEPP is an option only after property has cleared Forest Service and GSA disposal procedures and approval has been granted for this method of disposal by the PMO.

Upon receipt of written local disposal authorization from the Forest Service, the following are approved methods of local disposal:

DONATIONS (NONPUBLIC OR PUBLIC BODY)

Eligibility: Applicable regulations are found in FSH 6409.31 and FPMR 101-44.207. Public agencies are institutions or organizations that receive some type of public funding. Public funding includes any Federal, State, county, or city funds to support the organization's activities. Some examples are: schools, nonprofit medical facilities, radio and television stations licensed as educational, some organizations to assist the homeless, fire departments, and rescue squads.

Compliance: Donated property must be put into use by the donee within 1 year of acquisition and used by the donee for a minimum of 1 year in their program.

LIMITED AGENCY (SMALL LOT) SALE

This section outlines procedures for conducting agency sales in accordance with FPMR 101-45.304-3.

1. Limitations: When estimated proceeds are under $5,000 or higher estimates have been approved by the GSA region, the PMO may choose to conduct limited agency (small lot) sales.
2. Procedures:
3. a. Prepare an Optional Form 15 (OF-15), Sale of Government Personal Property-Poster, and send it to GSA 14 days in advance.

   b. Send the OF-15 to at least three prospective bidders. Post the OF-15 at nearby locations for public display.

   c. If estimated proceeds are above $500, advertise the sale in at least one local newspaper.

   d. All limited agency (small lot) sales are subject to terms and conditions listed on the SF-114C, Sales of Government Property - General Sales Terms and Conditions. Post a copy of the SF-114C at the sales site.

   e. Allow public inspection a minimum of 2 days.

   f. Require bidders to submit written sealed bids with bidder identification.

   g. Open sealed bids at a specified time and place and announce awards promptly.

   h. Prepare the OF-16 "Sales Slip" for use as an invoice, cash receipt, permanent account record, and property release document.

4. Administration:

   a. Certified payment such as cash, cashiers check, or money order is mandatory.

   b. The purchaser must pay in full within 10 days and has 15 days to remove the property.

   c. The OF-16, together with bid abstract (identifying number of bidders and the bids offered) must be furnished to GSA within 10 days after sales conclusion.

   d. Limited agency (small lot) sales proceeds are referred to agency fiscal officers for deposit either as miscellaneous receipts or into agency accounts for trust fund, exchange/sale, or user fee property.

SCRAP SALES

If all of the disposal steps have been followed but the property remains with the State, the Forest Service PMO may authorize disposition by Scrap Sale. Some GSA Regions have established scrap contractors. Generally it is mandatory to use the contractor designated for the area. Information can be obtained from each GSA Regional Headquarters, Sales Branch. There is a lot of information in the contract to help the custodian deal with the contractors. The contracts are generally established for miscellaneous scrap metal; the contractor will pick up the property by appointment. The contract spells out the custodian responsibility and procedures.

If there is no scrap contractor designated for a unit, obtain competition for scrap removal. The following procedures are suggested.

1. Contact at least three vendors potentially interested in the scrap. The phone book is a likely source of information. Initial contact may be by phone, giving each vendor a description of the scrap and requesting a phone quote per pound, or by job, all or nothing. Encourage vendors to look at the scrap before quoting. Specify removal dates.
2. Document the efforts made to get the best price, then award the job to the contractor who gives the best price and can meet the removal dates. If the job was awarded by the pound, inform the contractor that they will need to provide an "empty" weight slip upon arrival. Truck weight after loading must also be established. Both weights must be on a State-certified scale.
3. Have the contractor sign the "Scrap Removal" form prior to removing the scrap. The contractor keeps a copy. This form gives the vendor instructions on how to make payment and where to send it. This form can be amended to meet regional or local needs.
4. After removal is accomplished, complete Form AD-112 or SF-120 (as appropriate) and return to the Forest Service PMO for records adjustment.

ABANDONMENT OR DESTRUCTION

The Forest Service PMO may authorize property to be abandoned or destroyed ONLY if a duly authorized official has determined that the property has no commercial value or that the estimated cost of its continued care and handling would exceed the estimated proceeds from its sale (CFR 101-45.9).

Methods commonly used to destroy property include crushing, burning, or burying in a manner that will not endanger life, property, or the environment. Remains can also be taken to a local landfill dump for disposal. If payment is received from the local landfill dump, the receipts should be returned to the Forest Service. Receipts should be made payable to the U.S. Treasury Miscellaneous Receipts Account. Only certified forms of payment (cashier's check, certified check, money order, etc.) will be accepted. In some instances, property may be abandoned in place.

This disposal method is highly sensitive to auditors. The GSA "Guide to Abandonment and Destruction" must be complied with before this sensitive measure is considered. The Forest Service PMO will make the final decision. Some general rules follow.

1. Property should be recycled, if feasible.
2. Property may be considered for abandonment and destruction only if:
   1. It has no commercial value either as an item or scrap.
   2. The cost of continued care, handling, and preparation of the property for sale would be greater than the expected sale proceeds.
   3. A law, regulation, or directive requires abandonment or destruction.
   4. Written instructions by a duly authorized official (health, safety, security) direct immediate abandonment or destruction action.

Procedures:

1. Prepare a written justification for proposed abandonment or destruction to include:
2. a. A brief description of the property, its condition, and the total acquisition cost.

   b. The authority for the abandonment or destruction.

   c. A short statement indicating the type of destruction or the location of the abandonment.

   d. A statement that the proposed abandonment or destruction action will not be detrimental or dangerous to public health or safety, and will not infringe on the rights of other persons.

   e. The name, title, and signature of the agency reviewing authority for all items with an acquisition cost of over $5,000 (it is recommended that the reviewing authority be at least one managerial level higher than the approving official).

3. Post a public notice at a nearby site. It should include:

   a. A general description of the property including location.

   b. Dates and times for public inspection.

   c. Offer to donate to a public body.

   d. Offer to sell to the public.

Exceptions where no public notice is required:

1. The value is so little or the cost of handling and storage is so great that it is not cost-effective.
2. There are health, safety, or security considerations.
3. The acquisition cost of the item is under $500.
4. Prepare a certification of complete action to read as follows:
   

   "I certify that (identify items/quantities) were (abandoned/destroyed) in the manner authorized by the FPMR, Subpart 101-45.9 and other applicable regulations."
   

   ________________________________________
   agency official signature
   

   __________________________date
   

   "I have witnessed the (abandonment/destruction) of the described property in the manner and on the date stated herein.
   

   ________________________________________
   witness signature
   

   __________________________date
   

5. The written finding, public notice, and certification of complete action should be retained as official records.

DISPOSAL OF PROPERTY WITH SPECIAL HANDLING REQUIREMENTS

The following categories of personal property have special handling requirements associated with disposition. If there is a question, contact your nearest Forest Service regional or area Office.

Abandoned or forfeited property may be retained for official use but must be reported to GSA, FSS, WFBP, 7th and D Streets SW, Washington, DC 20407. See FSM 6412.3.

Aircraft: See Chapter 40 for details on aircraft disposals.

Dangerous property must either be rendered unserviceable or have adequate safeguards provided before disposition.

Demilitarization requirements for DoD munitions list items must be perpetuated on all disposal records. Of the 13 demilitarization codes in use, only C, D, E, F, and L require demilitarization action.

Hazardous materials must be disposed of in accordance with current EPA and State regulations. In order to avoid this step, pick up anything in metal drums or containers only if it is certainly usable.

Mattresses or bedding must be disposed of in accordance with State laws and health regulations.

Non-appropriated Fund Property may be transferred upon terms agreed to between the owning and receiving agencies. See Chapter 10, "Nonappropriated Fund Property."

Vehicles are subject to replacement standards defined by FPMR 101-38.7 and an SF-97 must be issued if a vehicle is donated or sold.

NOTE: The Gamma Goat (M-561 and M-592) and HUMMWV (M998) must be returned to the local DRMO for disposal, at the State's expense. The State forester is required to report these disposals on a DD-1348-1 - DoD Single Line Item Release/Receipt Document. After approval of the Forest Service and the DRMO, return a copy of this document signed by the DRMO to indicate their receipt of this property. These items will not be removed from the State official inventory without this documentation of disposal.

TIPS TO SPEED UP DISPOSALS

Advising the SASP can be the fastest method of disposal. It is advisable for the State forester to send the SASP an information copy of the disposal document or let SASP physically screen the property. If the SASP wants the item, note that on the SF-120.

Using the services of a nearby DRMO under the memorandum of understanding between the DLA and the GSA will dispose of the property immediately.

1. Acquire only what is needed.
2. Report unneeded or unusable property for disposal promptly.
3. Provide accurate descriptions. List all known defects.
4. Send a copy of your disposal document to your local SASP.
5. Include a picture of the property.
6. Completely fill in the required blocks on your disposal document. Do not leave any blanks. Fulfill signatory requirements.
7. Separate reports by physical location and Federal Supply Class.
8. Where possible, consolidate disposal sites.
9. Work with the Forest Service PMO on all alternative disposal methods.
10. Consider using the DRMO disposal method pursuant to the memorandum of understanding the DLA has with GSA.
11. Consider video sales.
12. Initiate a 30-day tickler file to follow through with the disposal process.
13. Keep communications flowing with all affected parties: Forest Service/State/DEPPC/GSA.
14. If property approved for transfer, donation, or sale has not been picked up, notify the Forest Service so that corrective action can be taken.

FEPP Desk Guide May 2000