906R90102
Personal Property
Management
POliCy                       DALLAS, TEXAS
	       LIBRARY
Classification Number 4831
                              ENVIRONMENTAL
                                PROTECTION
                                 AGENCY
For the Control and Accountability of the Agency's Assets
United States
Environmental Protection Agency

February 1990

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4831-2/12/90
Personal Property Management Policy
                                   Contents
General Policy
                 Chapter 1
   Purpose	1
   Scope	1
   Authority   	1
   Reference  	2
   Responsibilities	2
        Assistant Administrator for Administration and Resources Management  	2
        Director, Facilities Management and Services Division  	5
        Agency Property Management Officer, Security and Property Management Branch, FMSD  .  . 5
        Regional Administrators and Directors of Administration and Resources Management, RTP and
        Cincinnati	6
        Property Management Officers	6
        Property Utilization Officer	7
        Assistant Administrators, Associate Administrators, Inspector General, General Counsel, and
        Heads of Headquarters Staff Offices	7
        Office and Division Directors, Branch Chiefs, or Equivalents  	7
        Individual Responsibility  	7
        Board of Survey  	8
   Policy    	8
        Control  	8
              Expendable and Nonaccountable Property	8
              Nonexpendable Property   	9
              Component Parts  	9
              Installed Property  	9
              Leased Personal Property   	10
              Bonus, Gift and Donation Items	10
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                        Pagei

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Personal Property Management Policy	4831 -2/12/90

              Superfund Property	10
              Annual Certification	10
        Inventory	10
        Disposal   	10
              Non-Superfund Property   	10
              Superfund Property	10

In-House Property	Chapter 2
   Purpose	13
   Scope	13
   Authority   	13
   Reference   	13
   Responsibilities	13
        Property Accountable Officers  	13
        Program Accountable Officers  	14
        Property Custodial Officers	15
   Policy	16
        Approval   	16
              Cost Comparison   	17
              Personal Property Loaned to the Agency	17
              Personal Property being Loaned by the Agency  	18
              Use of Personally-Owned Property in EPA Facilities  	19
              Use of Government-Owned Property in Non-Government Facilities  	20
              Accepting Donations   	22
        Control  	22
              Expendable and Nonaccountable Property	22
              Nonexpendable Properly  	23
              Component Parts  	23
              Installed Property  	24
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4831 -2/12/90	Personal Property Management Policy

              Superfund Property	24
              Annual Certification	24
        Inventory	24
        Disposal   	25
              Disposal of Non-Superfund Property   	25
              Disposal of Superfund Property	25

Assistance Agreement Property	Chapter 3
   Purpose	29
   Scope	29
   Authority  	29
   Definitions   	30
   Reference   	30
   Responsibilities	30
        EPA Project Officer	31
        EPA Property Administrator   	31
        EPA Grants Off icer	31
        EPA Award Official  	31
        EPA Financial Management Officers	32
   Non-Governmental Organizations   	32
        Approval  	32
              Federally-Furnished Property	32
              Purchase of Equipment with  Recipient Funds   	33
              Lease of Equipment	34
              Contractor Services	34
              Contractor-Acquired Property	34
              Property Purchased with Assistance Agreement Funds   	34
              Approval Responsibilities	35
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Personal Property Management Policy	4831-2/12/90

        Title and EPA's Interest	35
              Property Purchased with Assistance Agreement Funds   	35
              Contractor-Acquired Property	36
              Federally-Furnished Property	36
              Title and Interest Responsibilities	36
        Property Management Standards   	37
              Control	37
              Records	38
              Inventory   	38
              Property Management Responsibilities	39
        Disposal   	39
              Property Purchased with Assistance Agreement Funds   	39
              Federally-Furnished Property	40
              Contractor-Acquired Property	40
              Disposition Responsibilities	41
   Certain Nonprofit Organizations  	41
        Approval  	41
        Title and EPA Interest   	41
        Property Management Standards   	42
        Disposal   	42
   State and Local Governments   	42
        Approval  	43
        Title and Interest  	43
              Property Purchased with Assistance Agreement Funds   	43
              Contractor-Acquired Property	44
              Federally-Furnished Property	44
              Title and Interest Responsibilities	44
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4831 -2/12/90	Personal Property Management Policy

        Property Management Standards  	44
        Disposal   	44
              Property Purchased with Assistance Agreement Funds   	45
              Federally-Furnished Property	45
              Contractor-Acquired Property	45
              Disposition Responsibilities	46
   Superfund Assistance Agreements	46
        Approval   	47
              Federally-Furnished Property	47
              Purchase of Equipment with Recipient Funds   	48
              Cost Comparison  	48
              Lease or Rent Equipment	49
              Use of Contractor Services 	49
              Contractor-Acquired Property	49
              Property Purchased with Superfund Funds	49
        Title and EPA Interest   	50
              Title   	50
              EPA's Interest	50
        Property Management Standards  	51
              Control	51
              Records	52
              Inventory   	52
        Disposal   	53
              CERCLA-Funded Property 	53
              Federally-Furnished Property	54
    Technology Transfer Act   	54
    LUSTTrustFund	54
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Personal Property Management Policy	4831 -2/12/90

Interagency Agreement Property           	Chapter 4
   Purpose	55
   Scope	55
   Authority   	55
   Reference   	55
   Responsibilities	55
        EPA Project Officer	55
        EPA Property Administrator   	56
        EPA Financial Management Officer, Cincinnati   	56
        EPA Action Official  	56
        GADorRAAU  	56
   Policy	57
        Approval  	57
             Cost Comparison  	57
        Title	59
             Non-Superfund Property  	59
             Superfund Property	60
             Contractor-Acquired Property   	60
             Right to Retain Title	60
        Control   	60
             Accountability Criteria	61
             Property Management Reviews	61
        Inventory	62
        Disposal  	62
             Non-Superfund Property  	62
             Superfund Property	62
             Contractor-Acquired Property	64
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4831 -2/12/90	Personal Property Management Policy

Contract Property	Chapter 5
   Purpose	65
   Scope	65
   Authority  	65
   Reference   	65
   Responsibilities	66
        Contractor  	66
        Project Officer   	66
        Contract Property Administrator  	66
        Contracting Officer	67
        Financial Accounting Operations Officers   	67
        Financial Accounting--RTP	68
   Policy	68
        Approval  	68
              Government-Furnished Property   	68
              Lease of Property	69
              Purchase   	69
              Cost Comparison  	69
              Justification  	69
              Responsibility	70
        Title	71
              Nonprofits and Institutions of Higher Education	71
              Government-Furnished Property   	71
              Responsibility	72
         Control  	72
              Property Control System  	73
              Accountability Criteria	74
              Records	75
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Personal Property Management Policy	4831-2/12/90

              Reports   	77
              Compliance Reviews  	80
              Responsibility	81
        Inventory	81
              Start-Up Inventory	81
              Annual Inventory   	82
              Final Inventory	82
              Responsibility	83
        Disposal   	84
              Certain Nonprofit Organizations	84
              Non-Superfund Property   	84
              Superfund Property	87
              Property Comprising a Superfund Response	89
              Responsibility	89

Glossary	
   Glossary  	91

Index	
   Index   	97
Pageviii                                                                        Table of Contents

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4831-2/12/90
Personal Property Management Policy
                                   Figures
   Figure 1    Headquarters: Flow of Delegation of Authority for Property  	3
   Figure 2    Regions: Flow of Delegation of Authority for Property  	4
                               ABBREVIATIONS
   CERCLA    Comprehensive Environmental Response, Compensation, and Liability Act
   CFR         Code of Federal Regulations
   EPA         Environmental Protection Agency
   FAR         Federal Acquisition Regulation
   FIRMR      Federal Information Resources Management Regulation
   FMFIA      Federal Managers' Financial Integrity Act
   FMSD       Facilities Management and Services Division
   FPMR       Federal Property Management Regulations
   FSS         Facilities and Support Services
   GAD        Grants Administration Division
   GSA         General Services Administration
   LAG         Interagency Agreement
   LUST       Leaking Underground Storage Tanks
   OIG         Office of the Inspector General
   OMB        Office of Management and Budget
   PMO        Property Management Officer
   PMR        Property Management Regulations
   PPAS       Personal Property Accountability System
   RTP         Research Triangle Park
   SF          Standard Form
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                      Pageix

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4831-2/12/90	Personal Property Management Policy
                            General Policy
                                      Chapter 1

1.      Purpose     	
                   This document establishes policies for the Environmental Protection
                   Agency's (EPA) management and control of its personal property.
2.      Scope
                   The policies contained in this document are supplemented by the EPA
                   Property Management Regulations published in the Facilities and Support
                   Services (FSS) Manual, Series 4830. Where conflicts exist, this document
                   will take precedence.

                   The provisions of this document apply to all EPA organizations procuring
                   personal property for use in-house, or for use by outside organizations
                   through EPA contracts, Assistance Agreements, and Interagency Agree-
                   ments. It also applies to entities outside the Agency which are furnished
                   Government property or which are authorized to procure personal proper-
                   ty through EPA contracts, Assistance Agreements, and Interagency Agree-
                   ments. When the term property is used in the text, it refers only to
                   personal property. The policies contained in this document do not apply to
                   software.

                   This chapter applies to all property regardless of source. In addition, the
                   policies contained in chapters 2 through 5 apply as follows:
                   • In-House Property - chapter 2
                   • Assistance Agreement Property - chapter 3
                   • Interagency Agreement Property - chapter 4
                   • Contract Property - chapter 5

 3.      Authority	

                   These policies reflect the following regulations and directives:
                   • Federal Property and Administrative Services Act of 1949, as amended

                   • Federal Property Management Regulations (FPMR), 41 Code of
                      Federal Regulations (CFR) Chapter 101

                   • The Federal Acquisition Regulation (FAR), 48 CFR Chapter 1
 Chapter 1. General Policy                                                            Page '

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Personal Property Management Policy	4831 -2/12/90
                     The Federal Information Resources Management Regulation (FIRMR),
                     41 GFR Chapter 201
                     Environmental Protection Agency Acquisition Regulations, 48 CFR
                     Chapter 15
                     The General Accounting Office Policy and Procedures Manual for
                     Guidance of Federal Agencies, Title n
                     General Regulation for Assistance Programs, 40 CFR Part 30
                     Uniform Administrative Requirements for Grants and Cooperative
                     Agreements to State and Local Governments, 40 CFR Part 31
                     Cooperative Agreements and Superfund State Contracts for Superfund
                     Response Action, 40 CFR Part 35, Subpart O
                     The Office of Management and Budget (OMB) Circulars A-102,
                     "Uniform Administrative Requirements for Grants-in-Aid to State and
                     Local Government"; A-l 10, "Grants and Agreements with Institutions
                     of Higher Education, Hospitals, and other Organizations - Uniform
                     Administrative Requirements"; and A-123, "Internal Control Systems"
                     The Resource Management Directive, Division 2560~Internal Controls
4.      Reference
                   Additional information on policies cited in this chapter may be referenced
                   in the the Facilities and Support Services Manual, 4830, Property Manage-
                   ment Regulations (PMR).

5.       Responsibilities	

                   The following officials are responsible for ensuring the efficient and
                   effective implementation and maintenance of EPA's personal property
                   management program. Figures 1 and 2 illustrate the flow of delegation of
                   authority for these property management functions.

                   5.1.     Assistant Administrator for Administration and
                   Resources Management	
                   The Assistant Administrator for Administration and Resources Manage-
                   ment has the primary responsibility for providing direction to develop and
                   establish an effective and efficient property management program. This
                   type of program includes the following:
                   • Internal policies and procedures that follow and dictate good manage-
                     ment practice.
Page 2                                                             Chapter 1. General Policy

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Flow of Delegation of Authority for Property
                                           REGIONS
                                    EPA
                                    Administrator
                                    Assistant
                                    Administrator -
                                    OARM
                 Implementation
              i
 Directors -
 OARM
 (Cincinnati, RTF)
         Program Office

         Property Office
          Director -
          Office of
          Administration
Regional
Administrators
Director -
NEIC
(Denver)
Director -
FMSD
(Headquarters)






1
1
^
~" Policy and Ove
                                                                      -.,
                                                                      Officer-SPMB
                                 Management
                                 Officer
                                 Property
                                 Accountable
                                 Officer
                                 Property
                                 Utilization
                                 Officer
  Figure 2

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4831 -2/12/90     	  	Personal Property Management Policy
                   • Review and evaluation of property management programs, operations
                      and procedures.
                   • Assignment of responsibility to specific positions by grants of
                      authority, instructions, and directions.

                   5.2.     Director, Facilities Management and Services Division
                   The Director, Facilities Management and Services Division (FMSD), is
                   responsible for administering the Agency's property management pro-
                   gram. In this capacity, the Director:
                   • Serves as the reviewing authority for matters pertaining to personal
                      property management.
                   • Designates the Agency Property Management Officer, Security and
                      Property Management Branch.
                   • Appoints a Board of Survey and Board Chairman according to
                      prescribed criteria and procedures under FSS Manual, PMR 2-23.
                   • Certifies Custodial Officers at Headquarters.

                   5.3.     Agency Property Management Officer, Security and
                   Property Management Branch, FMSD	
                   The Agency Property Management Officer, Security and Property
                   Management Branch, FMSD (PM-215) is responsible for the day-to-day
                   implementation of the EPA property management program. Respon-
                   sibilities include:
                   • Planning, coordinating, and directing the Agency personal property and
                      supply management program, including development of policy; and
                      the issuance of directives and technical assistance to Agency field
                      activities.
                   • Conducting a program that ensures the effective accountability, utiliza-
                      tion, and disposal of Government-owned personal property to include
                      designation of the EPA National Utilization Officer and providing
                      necessary leadership to all Property Management and Utilization
                      Officers within the Agency.
                   • Conducting the review and evaluation of personal property manage-
                      ment policies, systems, and procedures for the Agency.

                    • Conducting periodic reviews and evaluations to identify weaknesses in
                      property administration, with recommendations to implement construc-
                      tive and reasonable measures for strengthening overall property
                      management matters.
 Chapter 1. General Policy                                                            Page 5

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Personal Property Management Policy	4831 -2/12/90
                   5.4.     Regional Administrators and Directors of
                   Administration and Resources Management, RTF and
                   Cincinnati	
                   The Regional Administrators and Directors of Administration and
                   Resources Management, RTF and Cincinnati are responsible for:
                   • Administrating a sound and effective personal property and supply
                      management program for all activities assigned to his or her administra-
                      tive jurisdiction.
                   • Designating, in writing, a Property Management Officer and Property
                      Utilization Officer. The Directors, Office of Administration and Resour-
                      ces Management, RTF and Cincinnati, will also designate a Contract
                      Property Administrator. Copies of the designations will be forwarded to
                      the Agency Property Management Officer, Security and Property
                      Management Branch, FMSD, and to the Financial Management Officer
                      who maintains the general ledger accounts for the Accountable Area.
                   • Notifying the Agency Property Management Officer by memorandum
                      of any EPA installation or activity scheduled to be discontinued, or of
                      any major program change that would affect the property and supply
                      management system.
                   • Appointing a Board of Survey and Board Chairman according to
                      prescribed criteria and procedures under FSS Manual, PMR 2-23.

                   5.5.     Property Management Officers	
                   Property Management Officers are responsible for:
                   • Providing guidance to the Property Accountable Officer (see chapter 2,
                      section 5.1) and Utilization Officer in the implementation of the EPA
                      property management program for his/her accountable area.
                   • Designating in writing a Property Accountable Officer who has been
                      nominated by the organizational head (e.g., laboratory director or
                      equivalent) to account for and control all of the Agency's accountable
                      property within the specified Accountable Area; and a Property
                      Administrator to account for property assigned through Assistance
                      Agreements and Interagency Agreements.
                   • Reviewing, evaluating, and implementing personal property manage-
                      ment policies, systems, and procedures for the Accountable Area; and
                      conducting periodic reviews.
                   • Implementing constructive and reasonable measures for strengthening
                      overall property  management matters within the Accountable Area.
                   • Providing the necessary data to managers in a timely manner to enable
                      them to effectively manage their property.
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4631 -2/12/90	Personal Property Management Policy
                    5.6.     Property Utilization Officer	
                    The Property Utilization Officer is responsible for promoting the acquisi-
                    tion and profitable use of available excess personal property from all
                    known sources including EPA activities, General Services Administration
                    (GS A) or other federal agencies. A Property Utilization Officer shall be
                    appointed at the national level by the Agency Property Management Offi-
                    cer and at the local level by Regional Administrators and Directors of
                    Administration and Resources Management for RTP and Cincinnati.

                    5.7.     Assistant Administrators, Associate Administrators,
                    Inspector General, General Counsel, and Heads of
                    Headquarters Staff Offices	
                    Assistant Administrators, Associate Administrators, Inspector General,
                    General Counsel, and Heads of Headquarters Staff Offices are responsible
                    for establishing a program within their organizations to assist the Facilities
                    Management and Services Division in providing effective management,
                    control, and accountability of personal property.

                    5.8.     Office and Division Directors, Branch Chiefs,  or
                    Equivalents	
                    Office and Division Directors, Branch Chiefs, or equivalents are directly
                    responsible for the establishment and continuous enforcement of admin-
                    istrative directives and measures for all items of Government property
                    under their control. This includes property items carried in the Agency
                    Personal Property Accountability System (PPAS), as well as items not car-
                    ried in the PPAS. Management of property must ensure that these items
                    are properly acquired, used, maintained, and safeguarded.

                    Supervisory responsibility at all levels requires the establishment and
                    continuous enforcement of administrative measures necessary to ensure
                    adequate preservation and use of all Government property under their
                    jurisdiction. This includes assigning Custodial Officers and ensuring posi-
                    tions are filled at all times, as well as, ensuring that the Custodial Officer's
                    position description is amended to reflect Custodial Officer duties.

                    Having this responsibility does not mean that those in such positions will
                    be held liable for loss, damage, or destruction of property under their juris-
                    diction; unless there is evidence of neglect or misconduct.

                    5.9.     Individual Responsibility	
                    It is the inherent responsibility of all individuals to properly care for and
                    protect Government property, whether this property has been issued to
                    them for everyday personal use or is used by them only occasionally. This
 Chapter 1. General Policy                                                               Page 7

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Personal Property Management Policy                                	4831-2/12/90
                    same exercise of judgment and prudence for safeguarding Government
                    property applies regardless of its location and includes ensuring that
                    Government property is used only in the conduct of official business. It is
                    also the responsibility of each individual to report any property that is lost,
                    damaged or removed from its assigned area to their Custodial Officer.

                    Failure on the part of an Agency employee to care for and protect Govern-
                    ment property could result in pecuniary liability and disciplinary action.
                    An employee may be held financially responsible and may be required to
                    make restitution to the Government when a determination has been made
                    by the Property Board of Survey.

                    5.10.     Board of Survey	
                    A Board of Survey, consisting of one to three members from organization-
                    al elements within the Accountable Area shall serve as a fact-finding body
                    to determine negligence surrounding the loss, damage, or destruction of
                    property. It is the responsibility of the Board to:
                    • Ensure that a thorough investigation is conducted and examine all evi-
                      dence presented.

                    • Determine whether the employee has committed simple or gross negli-
                      gence and determine financial liability.

                    • Submit a signed Report of Survey to the property approval authority.
                      Provide authority to the Property Management Officer or Property
                      Accountable Officer to remove items from property records.
6.       Policy
                    In accordance with the requirements of 41 CFR 101-25.100, Agency-
                    owned or leased personal property shall be used only for officially desig-
                    nated activities and to support the appropriation for which it was acquired.
                    When the property is no longer needed, it may be disposed of or trans-
                    ferred within the Agency. To ensure full utilization and protection of the
                    Agency's assets, all personal property shall be managed according to the
                    processes stated below.

                    6.1.     Control	
                    The level of control of personal property shall be exercised according to
                    the categories listed below.

                    6.1.1.    Expendable and Nonaccountable Property
                    In accordance with 41  CFR 101-25.107, expendables and low value items
                    are subject to accounting and supply record controls until issued to the
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4831 -2/12/90   	Personal Property Management Policy


                    consumer. It is the responsibility of the employee and the supervisor to
                    ensure the property is used for official purposes.

                    6.1.2.   Nonexpendable Property
                    a. Accountable property consists of nonexpendable personal property with
                    an acquisition cost of $1,000 or more and sensitive items with an acquisi-
                    tion cost of $300 or more, with the exception of software and systems fur-
                    niture. Upon initial receipt by EPA, all accountable property shall be
                    identified with a numbered barcode decal, a record shall be established in
                    the Personal Property Accountability System, and responsibility for the
                    item shall be assigned to a custodian. When a barcode decal cannot be
                    affixed to an item because of its composition, size, or location, the
                    assigned decal number shall be etched on the item. Such items include
                    water or oil immersed items.

                    b. Nonexpendable personal property which does not meet the account-
                    ability criteria shall be controlled at the point of issuance. No formal
                    accountability shall be maintained after issue, but the replacement shall be
                    regulated by the supervisor to ensure that requests for replacement items
                    are essential for the mission of the organization. In addition, the super-
                    visor shall establish adequate safeguards and controls to ensure that the
                    property is acquired for official use only.

                    6.1.3.   Component Parts
                    To be a component, the part must be nonexpendable, be integral to the
                    functioning of the main unit, and not have the capacity to stand alone.
                    Examples include: a memory board for a computer or a probe for a
                    photoionizer. The requester shall identify the purchase  as a component on
                    the Procurement Request and shall identify the decal number of the item
                    to which the component will be affixed or installed. If the price of the
                    component part is $1,000 or greater the acquisition cost shall be added to
                    the original acquisition  cost of the piece  of accountable property to which
                    the component is either installed or affixed. This shall also apply to proper-
                    ty classified as  sensitive with an acquisition cost of $300 or greater.

                    6.1.4.   Installed Property
                    Items of nonexpendable property, if attached to or installed in a
                    non-Agency-owned facility, shall be accountable property and entered
                    onto the Personal Property Accountability System (e.g., fume hoods,
                    environmental chambers). This same equipment installed in an
                    Agency-owned facility is not included in the Personal Property Account-
                    ability System.
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Personal Property Management Policy	4831 -2/12/90
                    6.1.5.    Leased Personal Property
                    Personal property acquired through-a lease agreement with an option to
                    purchase shall be controlled and maintained in the Personal Property
                    Accountability System.

                    6.1.6.    Bonus, Gift and Donation Items
                             [Reserved]

                    6.1.7.    Superfund Property
                    In addition to the policies stated above, a "Superfund unique" decal will
                    be affixed to all nonexpendable equipment procured in its entirety or in
                    part through the Superfund appropriation. If it is impossible to affix a
                    decal, other appropriate methods will be used to identify the object.

                    6.1.8.    Annual Certification
                    The Resource Management Directive, Division 2560-Internal Control,
                    requires that an effective internal control system is maintained to provide
                    reasonable assurance that funds, property, and other assets are safeguarded
                    against waste, loss, unauthorized use, or misappropriation of resources. To
                    meet these objectives, a review of personal property control shall be
                    included as an event cycle in each manager's annual review of their inter-
                    nal control systems.

                    6.2.      Inventory	
                    A physical inventory of all accountable property will be conducted annual-
                    ly as specified in subsequent chapters.

                    6.3.      Disposal	

                    6.3.1.    Non-Superfund Property
                    Disposal of non-Superfund property that is excess to the needs of an
                    activity will be made in accordance with the Federal Property Manage-
                    ment Regulations, Title 41 CFR Chapter 101, Subchapter H.

                    6.3.2.    Superfund Property
                    The Trust Fund established by the Comprehensive Environmental
                    Response, Compensation, and Liability Act (CERCLA) requires that
                    funds expended be accounted for on a  site-specific basis. Equipment costs
                    for remedial activities must be carefully documented on a site-specific
                    basis to support recovery of costs from responsible parties. The policies
                    set forth in this document reflect this requirement.

                    When property, funded totally or in part with Superfund funds, is no
                    longer required for Superfund support, disposition must be made on the
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4831 -2/12/90	Personal Property Management Policy
                    property and generally any proceeds from the transaction must be reim-
                    bursed to the Trust Fund and the site or activity account credited as
                    appropriate. Disposition in this context includes: transfer or sale to or by a
                    recipient under an Assistance Agreement; transfer or sale to or by another
                    federal agency under an Interagency Agreement; transfer from a Super-
                    fund activity to a non-Superfund activity within the EPA; transfer to other
                    federal or state agencies; or transfer or sale by an EPA contractor.
                    Disposition also includes sales by EPA or GSA, and transactions for
                    trade-in or exchange.

                    Property comprising part of a Superfund remedial or removal action is dis-
                    posed of, for accounting purposes, when the EPA Project Officer certifies,
                    and his/her supervisor concurs, that such property is being left in place as
                    part of a Superfund remedy. Prior to final disposition, all personal proper-
                    ty shall be decontaminated as necessary and notice of the decontamination
                    given to the activity or party receiving the property.

                    6.3.2.1  Accountable Property
                    The transfer or sale of accountable property to a non-Superfund entity
                    shall be made in accordance with the Federal Property Management
                    Regulations, 41 CFR  101-43.3, and proceeds will be reimbursed to the
                    Trust Fund at the fair  market value of the item at the time of transfer or
                    sale. Equipment originally funded partially by Superfund funds will have
                    the same percentage applied for processing disposition, e.g., for an item
                    purchased with 50 percent Superfund, 50 percent non-Superfund monies,
                    the proceeds from the sale of that item would be divided equally between
                    the Trust Fund and miscellaneous receipts of the Treasury (see 40 CFR
                     101-43.309-3).

                    6.3.2.2   Nonaccountable Property
                    For all nonexpendable personal property falling below the accountability
                    threshold, reimbursement to the Trust Fund shall take place at the time of
                    eventual sale when ultimate disposition is made on the property. The
                    property may be used by other EPA functions until that time. If an item is
                    funded partially by Superfund funds, the proceeds from the sale will be
                    reimbursed to the Trust Fund.

                     6.3.2.3   Property Comprising Part of a Superfund Action
                     Property comprising part of a Superfund remedial or removal action (such
                     as pond liners or pipes for a water treatment system) and necessary for the
                     continued functioning of the response action, loses its character as govern-
                     ment personal property at the time of installation. EPA shall relinquish its
                     interest  in the property at the time of installation and no reimbursement
                     will be required for the Trust Fund. Such property is removed from the
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Personal Property Management Policy	4831 -2/12/90
                    Personal Property Accountability System, if so controlled, upon certifica-
                    tion by the EPA Project Officer and concurrence by his/her supervisor that
                    the property is being left in place as part of a Superfund response.

                    There may be other property which is incidental to, but not necessary for,
                    the continued operation of the response action. This may include items
                    such as fencing and lighting. In accordance with the provisions of 41
                    CFR 101-45.9, these items may be abandoned in place if required by
                    health, safety, or security considerations. These items may also be aban-
                    doned, in accordance with the FPMR, if the value of the property is so
                    little or the cost of its removal, care, and handling is so great that retention
                    for sale is clearly not economical. For further information on installed
                    property procured through Assistance Agreements, Interagency Agree-
                    ments, and EPA contracts see the appropriate chapter.
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4831-2/12/90
Personal Property Management Policy
                        In-House  Property
                                     Chapter 2
        Purpose
                   This chapter establishes policies for the management and control of per-
                   sonal property acquired by the Environmental Protection Agency (EPA)
                   for use by EPA employees.

        Scope	

                   The policies set forth in this chapter apply to all EPA personnel respon-
                   sible for implementing and maintaining personal property management, as
                   well as personnel who acquire and utilize Government property.

        Authority	

                   The policies contained in this chapter are governed by 41 Code of Federal
                   Regulations (CFR), Chapter 101, "Federal Property Management Regula-
                   tions" (FPMR).

        Reference	

                   Additional information on policies cited in this chapter may be referenced
                   in the Facilities and Support Services (FSS) Manual, Series 4830, Proper-
                   ty Management Regulations (PMR).

        Responsibilities	

                   The following officials are responsible for ensuring the efficient and
                   effective implementation and maintenance of EPA's personal property
                   management program.

                   5.1.     Property Accountable Officers	
                   The Property Accountable Officers are responsible for the following:
                   • Implementing all elements of property and supply management, to
                     include ensuring that personal property inventory schedules have been
                     established and that the annual walk-through of scientific equipment is
                     conducted (41 CFR 101-25.109-1).
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                     Page 13

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Personal Property Management Policy	      4831-2/12/90
                    • Providing leadership and guidance on the proper utilization, care, and
                      disposal of the Agency's assets based on need within authorized pro-
                      gram objectives.
                    • Ensuring that adequate and effective administrative controls are estab-
                      lished and enforced for all personal property under their jurisdiction.
                    • Determining the true condition of property, its serviceability,
                      reparability, replacement, and disposal.
                    • Documenting, vouchering, and recording all property transactions in
                      the EPA Personal Property Accountability System (PPAS).
                    • Ensuring the accuracy of data in the PPAS and responding to the
                      National Data Quality Manager.
                    • Ensuring that personal property inventories are scheduled, conducted
                      by Custodial Officers with a representative of the Property Manage-
                      ment Office; and that the results of each inventory are reconciled with
                      official property records by the Property Management Office staff.
                    • Ensuring that a Board of Survey for personal property is established.
                    • Processing and reviewing Reports of Survey and all supporting
                      documentation to ensure that the statements contained are factual, infor-
                      mative, and complete, and that investigation of property losses or
                      damages reveal no evidence of employee negligence or misuse.
                    • Retaining accountability for all personal property  under their jurisdic-
                      tion until formally relieved by transfer of accountability.
                    • Ensuring that management reports and summaries of data are compiled
                      with official property accountability records.

                    5.2.    Program Accountable Officers	
                    In order to strengthen the Property Management Officer's ability to
                    manage Government-owned personal property, the designation of Pro-
                    gram Accountable Officers may be implemented at the discretion of the
                    Property Management Officer and/or the program office. This position
                    would be designated at one level below the Assistant Administrator
                    (Office level) or Regional Administrator (Division level). The Property
                    Management Officer will assume the duties described in this section if a
                    Program Accountable Officer is not designated.

                    The Program Accountable Officer would be responsible for certifying to
                    the Property Management Officer during the annual Internal Control
                    process that Custodial Officers have been designated, trained, and that
                    inventories of all Custodial Areas within the organization have been con-
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4831 -2/12/90	Personal Property Management Policy
                    ducted. The Program Accountable Officer also serves as the central point
                    of contact for resolving problems requiring top management intervention
                    or guidance.

                    Program Accountable Officers may find that the Federal Managers' Finan-
                    cial Integrity Act (FMFIA) structure within their organization is a suitable
                    vehicle for implementing their responsibilities for the property event
                    cycle. For example, Internal Control Coordinators could oversee the event
                    cycle and verify that property management controls are in place as part of
                    the broader network of FMFIA responsibilities.

                    Internal control documentation has been prepared for Program Account-
                    able Officers by the Property Management Office. Copies may be
                    obtained from the Chief of the Security and Property Management
                    Branch, Facilities Management and Services Division (FMSD).

                    If Program Accountable Officers choose not to use the FMFIA structure,
                    some other mechanism must be used to ensure that the program area's
                    responsibility for property is carried out.

                    5.3.     Property Custodial Officers	
                    Acting under the general direction of an organizational supervisor and
                    under the technical direction of the Property Accountable Officer or Pro-
                    gram Accountable Officer, the Custodial Officer is responsible for the
                    proper care, maintenance, utilization, accountability, and security of per-
                    sonal property assigned to the Custodial Area, and will be responsible for
                    the property until formally relieved of his/her duties by the proper
                    authority. Specific duties include:
                    • Informing his/her immediate supervisor of changes affecting the status
                       of personal property in the Custodial Area to include:  loss, theft,
                       damage, modification, and classification of excess and unreparable
                       property.
                    • Reporting to the Property Accountable Officer and preparing documen-
                       tation for all property transactions in his/her Custodial Area to include:
                       transfer, disposal, adjustment transactions (overage or shortage), and
                       declaration of excess; and obtaining prior approval from the Property
                       Accountable Officer for plans to convert, alter, modify, or dismantle
                       personal property.

                    • Conducting physical inventories of the personal property within the
                       Custodial Area as required and directed by the Property Accountable
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Personal Property Management Policy	4831 -2/12/90
                       Officer and/or the Program Accountable Officer. Reconciling the
                      inventories and certifying the results. Initiating the paperwork to
                      resolve overages and shortages.
                    • Establishing and maintaining prescribed control records.

6.       Policy	

                    In accordance with the requirements of 41 CFR 101-25.100, Agency-
                    owned or leased personal property shall be restricted to officially desig-
                    nated activities and shall be used only for the purposes for which it was
                    acquired. When the property is no longer needed, it may be disposed of or
                    transferred within the Agency. To ensure full utilization and protection of
                    the Agency's assets, all personal property shall be managed. Management
                    and control shall include the following types of personal property:

                    a. Expendable

                    b. Nonexpendable
                    • Accountable
                    • Nonaccountable

                    6.1.     Approval	
                    The Property Accountable Officer or other personnel designated by the
                    Property Management Officer shall screen Procurement Requests for
                    equipment and equipment repair, supplies, and furniture to assure that the
                    following conditions are met.
                    • No comparable or suitable substitute item is available from stock, share-
                      able items, or known excess sources (EPA/General Services Administra-
                      tion [GSA]).
                    • Usage data is accumulated to determine feasibility of adding com-
                      modities to stores stock inventory.
                    • Use and replacement standards, as prescribed in the FSS Manual, PMR
                      2-03 and PMR 2-05, are met.
                    • No luxury or personal convenience items are approved for procurement.

                    • Requests for executive furniture and furnishings are justified and all cer-
                      tifications included.
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4831 - 2/12/90             	    Personal Property Management Policy
                    • Each EPA Form 1900-8, "Procurement Request/Order" includes a
                      statement of need and justifies that the requested items or services are
                      required to meet the program's objectives.
                    • Approval by appropriate authorities has been granted.

                    6.1.1.    Cost Comparison
                    Following the provisions outlined in 41 CFR 101-25.5, the requester must
                    determine the most cost-efficient method of acquisition by conducting a
                    cost comparison between purchase and lease of the item to be procured.

                    6.1.1.1   Purchase
                    The purchase method of acquisition shall be used when the known period
                    of usage or  need exceeds the break-even point of cumulative leasing costs
                    and purchase price.

                    The purchase method should not be ruled out in favor of leasing merely
                    because of the possibility that future state-of-the-art technology improve-
                    ments may render the equipment less desirable.

                    6.1.1.2  Lease
                    When it is necessary or advantageous to acquire equipment that meets pro-
                    gram or system requirements, but it has been determined that purchase
                    should be deferred until a later date, the lease with option to purchase
                    method shall be used.

                    The lease without option to purchase method may be used when all of the
                    following conditions are met:
                    •  The selected equipment meets program or system requirements.
                    •  It is necessary or advantageous to acquire the equipment but conditions
                       for purchase outlined in section 6.1.1.1 entitled "Purchase" of this chap-
                       ter cannot be satisfied.
                    •  A lease contract with purchase option is not available.

                    6.1.2.   Personal Property  Loaned to the Agency
                    The loan of personal property to the Agency by a manufacturer or his rep-
                    resentative  is permissible and is accomplished by means of a Personal
                    Property Loan Agreement (EPA Form 1700-2).

                    Before EPA will accept personal property as a loan from a vendor, a writ-
                    ten request for the issuance of a Personal Property Loan Agreement must
                    be made  by the initiating official, endorsed by his Division Director or
                    higher and  approved by the Property Management Officer.
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Personal Property Management Policy	              4831 -2/12/90
                    6.1.3.   Personal Property being Loaned by the Agency
                    The loan of Agency-owned personal property, except for motor vehicles,
                    is permitted on a temporary basis, with a maximum loan of five years.

                    A memorandum requesting approval to loan the property must be sub-
                    mitted to the Property Management Officer by the requesting official. The
                    request must include an endorsement of the EPA requesting official's
                    Division Director (or equivalent) and shall address the requirements for
                    short or long-term loans listed below.

                    To effect the loan, the loan document must be signed and dated by the
                    party with whom the loan is made (licensee). The document shall be
                    returned to the issuing Property Management Officer to transfer account-
                    ability from the Custodial Area initiating the action to a newly established
                    account assigned to this transaction. A copy of the loan agreement shall be
                    forwarded to the Custodial Officer who initiated the transaction.

                    a. Short-Term Loans

                    Short-term loans of personal property for less than 45 days shall be docu-
                    mented on a "Property Action Request and Memorandum" (EPA Form
                    1740-10). In addition to a description of the property, the request must
                    also identify the party responsible for any transportation expenses to and
                    from the licensee and the party responsible for any site restoration and/or
                    decontamination expenses.

                    b. Long-Term Loans

                    Loans of personal property exceeding 45 days shall be made by means of
                    a Revocable License Agreement. The EPA requesting official shall
                    prepare a written certification endorsed by his Division Director or higher
                    and submitted to the Property Management Officer responsible for the
                    property. The following information shall be included:
                    • The purpose of the loan.

                    • The benefits to be derived by EPA either directly or indirectly.
                    • A full description of the property to be loaned, including the property
                      decal number, serial and model numbers, manufacturer's name, acquisi-
                      tion cost, and date.

                    • The present condition of the property.

                    • A certification that the property involved is under the requesting
                      official's custodial/accountable control; is not excess, as defined in
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4831 -2/12/90	__^_	Personal Property Management Policy
                      FPMR 101-25.109-1, and the FSS Manual, PMR 2-02, Laboratory and
                      Research Equipment.
                    • A certification that although the property involved may not currently be
                      required for the specific purpose for which it was originally appro-
                      priated, further use of it has been planned and a review of future require-
                      ments will be made within the next 12 months.
                    • The full name and address of the proposed licensee and the name and
                      title of the responsible official authorized to sign for the licensee.
                    • The period of the loan.
                    • The party responsible for all transportation, restoration, and decon-
                      tamination expenses.
                    • A certification that the proposed licensee complies with Title VI of the
                      Civil Rights Act of 1964.

                    6.1.4.   Use of Personally-Owned Property in EPA Facilities
                    It is the policy of EPA to permit employees to use personally-owned or
                    personally-leased property in performance of official duties in Agency
                    offices, subject to the controls over records, property, and personnel as
                    described below. The use of personally-owned/leased property, which
                    would be defined as "accountable" if supplied by the Government, must
                    be approved in writing by the local Property Management Officer prior to
                    bringing the property into the Government facility.

                    A written request must be made by the owner of the property, endorsed by
                    his/her Division Director equivalent or higher, and submitted to the
                    Property Management Officer in the area where the property is to be used.
                    The request shall include the following information:
                    • Complete name and address of the owner of the property.
                    • Full description of each item of property to be brought into the facility,
                      including manufacturer's name, serial number, and model number.
                    • Period of time the property will be in use.
                    • Advantages resulting in the use of the personally-owned property.
                    The Property Management Officer shall prepare a memorandum to the
                    requester detailing responsibilities and liabilities of EPA and the
                    requester. After the memorandum has been signed by the Property
                    Management Officer and the requester, the requester will be notified that
                    approval has been granted to bring the property into the Agency facility.
                    A copy of the signed memorandum will be provided to the appropriate
                    Division Director or equivalent.
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Personal Property Management Policy	4831-2/12/90
                   6.1.4.1  EPA's Responsibility
                   • Provide the necessary space and electrical power, to the extent that
                      electrical hook-ups already exist
                   • EPA's liability in case of loss, damage, or theft will be in accordance
                      with 40 CFR 14, "Employee Personal Property Claims."

                   6.1.4.2  Owner's Responsibility
                   • Submit a written request for using personally-owned property as part of
                      performance of official duties and wait until approval has been granted
                      to bring the property into EPA facilities.
                   • Make property available, upon request, for inspection by EPA safety
                      personnel and take necessary corrective actions for items found not to
                      meet EPA safety requirements.
                   • Tag each piece of property as "personally-owned property of (name of
                      owner)."
                   • Notify the Property Management Officer in writing when the property
                      is to be removed and obtain a property pass prior to removing the
                      property from the facility.

                   6.1.4.3  Manager's/Supervisor's Responsibility
                   • Ensure that any Government files and records created will remain
                      accessible as needed to the Government, regardless of whether the
                      personally-owned property remains, is removed, or becomes inoperable.
                   • Ensure that private and Government ownership and accountability are
                      not mixed. Hardware, software, peripherals, and other property of the
                      Agency shall be identified as such and not installed in the personally-
                      owned property.

                   6.1.4.4  Property Management Officer's Responsibility
                   • Establish a file for each approved request containing a signed copy of
                      the memorandum of agreement and all supporting documentation.
                   • Issue a written cancellation of the memorandum of agreement, upon
                      notification that the property has been removed from EPA's facility.

                   6.1.5.   Use of Government-Owned Property in
                   Non-Government Facilities
                   According to the provisions outlined in Federal Information Resources
                   Management Regulation (FIRMR) Bulletin  30, employees may be
                   permitted to use Government-owned property to work off-site, subject to
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4831 -2/12/90	     Personal Property Management Policy
                    controls over records, property, and personnel. The Government shall
                    retain ownership of all equipment, peripherals, and software taken off-site.
                    All files, records, papers, or machine readable materials created using
                    Government owned property are the property of the Government.

                    A written request for the use of nonexpendable Government-owned
                    property off-site must be submitted by the employee who will be using the
                    property, through his/her Division Director equivalent or higher, to the
                    Property Management Officer in the area where the property is located.
                    The request shall include the following information and shall be renewed
                    annually:
                    • Complete name and office of the person requesting use of the property.

                    • Location and address where the property will be used.
                    • Full description, manufacturer, model number, serial number, and EPA
                      decal number of each piece of property to be taken off-site.
                    • Period of time the property will be used off-site.
                    • Detailed explanation of the purpose and advantages resulting in the use
                      of Government-owned property off-site.
                    • Custodial Area property is currently assigned.
                    After approval has been granted the Property Management Officer obtains
                    the signature of the user prior to authorizing the property to be taken
                    off-site. The record of receipt shall remain on file until the property is
                    returned to EPA.

                    6.1.5.1   EPA's Responsibility
                    • Assume full liability for the property which is in the possession of the
                      employee in the case of loss, damage, or theft, and for the maintenance,
                      or repair; with the exception of abuse or negligence by the employee.

                    6.1.5.2  Employee's Responsibility
                    • Submit a written request for using nonexpendable Government-owned
                      property off-site and wait until approval has been granted before taking
                      any property off-site.
                    • Take all reasonable steps to protect the property from loss, damage, and
                      theft.

                    • Make the property available, upon request, for inspection and inventory
                      purposes by the Property Management Officer or his/her designee.
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Personal Property Management Policv	4831 -2/12/90
                    • Ensure that the property is used for Government business only and not
                      allow the use of Government property for other than officially approved
                      activities.
                    • Notify the Property Management Officer when the property has been
                      returned to the Government and make the property available to the
                      Property Management Officer or designee before the record of receipt
                      is cleared.

                    6.1.5.3 Property Management Officer's Responsibility
                    • Inform the employee of his/her responsibilities for the care and protec-
                      tion of the property.
                    • Establish and maintain a file for all property taken off-site.
                    • Adjust property records to reflect transaction for property that will be
                      off-site for more than 10 days by moving the record from the program
                      office custodial account to a separate account for property located
                      off-site. The property shall remain in the special account until returned
                      to the Government.
                    • Conduct inventories of property being used off-site on at least an
                      annual basis.

                    6.1.5.4 Manager's/Supervisor's Responsibility
                    • Review requests to use Government-owned property off-site to ensure
                      that the  use of the property is in the best interest of the Government.
                    • Establish control procedures for files and records which may be used or
                      created off-site.
                    • Ensure that any Government files and records created off-site shall
                      remain accessible to the Government regardless of where the
                      files/records are created.

                    6.1.6.   Accepting Donations
                             [Reserved]

                    6.2.     Control	
                    The level of control of personal property shall be exercised according to
                    the categories listed below.

                    6.2.1.   Expendable and Nonaccountable Property
                    In accordance with 41 CFR  101-25.107, expendable and low-value items
                    are subject to accounting and supply record controls until issued to the
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4831-2/12/90                                     	Personal Property Management Policy
                    consumer. It is the responsibility of the employee to ensure the property is
                    used for official purposes.

                    6.2.2.    Nonexpendable Property
                    a. Nonexpendable personal property with a unit acquisition cost of $1,000
                    or more and sensitive items with a unit acquisition cost of $300 or more
                    shall be classified as accountable property, with the exception of software
                    and systems furniture. Upon receipt, a record of all accountable property
                    shall be established in the Personal Property Accountability System, a bar-
                    code decal shall be affixed to the property and responsibility for the item
                    shall be assigned to a Custodial Officer. When a barcode decal cannot be
                    affixed to an item because of its composition, size,  use, or location, the
                    assigned decal number shall be etched on the item.

                    b. Nonexpendable personal property which does not meet the account-
                    ability criteria shall be controlled at the point of issuance. No formal
                    accountability shall be maintained after issue, but the replacement shall be
                    regulated by the  supervisor to ensure that requests for replacement items
                    are essential for the mission of the organization. In addition, the super-
                    visor shall establish adequate safeguards and controls to ensure that the
                    property is acquired for official use only; that nonexpendable property no
                    longer needed is reported to the Property Accountable Officer for
                    redistribution within the Agency; and missing or stolen property is
                    reported to the Property Accountable Officer. This  property shall be iden-
                    tified with a "Property of U.S. Environmental Protection Agency" decal.

                    6.2.3,    Component Parts
                    To be a component, the part must be integral to the functioning of the
                    main unit and not have the capacity to stand alone.  If the acquisition cost
                    is $1,000 or greater and has a life expectancy of one or more years, the
                    price of the component shall be added to the original cost of the piece of
                    accountable property to which the component is either installed or affixed.
                    This will also apply to property classified as sensitive with an acquisition
                    cost of $300 or more. The requester shall identify the purchase as a com-
                    ponent on the Procurement Request and shall identify the decal number of
                    the item to which the component will be affixed or installed.

                    The Personal Property Accountability System record shall be adjusted to
                    reflect the acquisition. If the cost of the component is less than $1,000, the
                    acquisition will not be added to the PPAS record, and the item will be
                    managed as described above in section 6.2.1 for nonexpendable property
                    which does  not meet the accountability criteria.
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Personal Property Management Policy	4831-2/12/90
                    6.2.4.    Installed Property
                    Items of nonexpendable property, if attached to or installed in a
                    non-Agency-owned facility, shall be accountable property and entered
                    onto the Personal Property Accountability System (e.g., fume hoods,
                    environmental chambers). This same equipment installed in an
                    Agency-owned facility shall not be included in the Personal Property
                    Accountability System.

                    6.2.5.    Superfund Property
                    A "Superfund unique" decal shall be affixed to all nonexpendable equip-
                    ment procured, in whole or in part, through the Superfund appropriation.

                    6.2.6.    Annual Certification
                    Resource Management Directive 2560-Internal Control, requires that an
                    effective Internal Control system is maintained to provide reasonable
                    assurance that funds, property, and other assets are safeguarded against
                    waste, loss, unauthorized use, or misappropriation of resources. To meet
                    these objectives, a review of personal property shall be included as an
                    event cycle in managers' annual  reviews of their Internal Control systems.

                    6.2.6.1   Accountable Property
                    The Program Accountable Officer, Regional Administrators, Laboratory
                    Directors, or the Directors, Office of Administration and Resources
                    Management, RTP and Cincinnati shall certify annually as part of the
                    organization's Internal Control review that all Custodial Officers within
                    the organization have been appointed and received training and that an-
                    nual accountable property inventories have been conducted and submitted
                    to the Property Accountable Officer.

                    6.2.6.2  Nonaccountable Property
                    The Division Director (or equivalent) shall certify annually as part of the
                    organization's Internal Control review that management systems are in
                    place to assure adequate control  of all nonexpendable property which does
                    not meet the accountability criteria. This shall include the certification
                    that: property is being utilized for the purpose for which it was acquired
                    (e.g., property acquired with Superfund funds is being used for Superfund
                    purposes); property no longer needed is reported to the Property Account-
                    able Officer for redistribution within the Agency; and missing or stolen
                    property is reported to the Property Accountable Officer.

                    6.3.     Inventory	
                    At the direction of the Program Accountable Officer or the Property
                    Accountable Officer, a physical inventory of all accountable property
                    shall be conducted by the Custodial Officer or designee. Inventories shall
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4831 -2/12/90	Personal Property Management Policy
                    be conducted jointly with a representative of the Property Management
                    Office when a new Custodial Officer is appointed, annually, and at other
                    times when the conditions warrant. Upon completion of the inventory, the
                    Custodial Officer shall provide the following to the Property Accountable
                    Officer:
                    • A signed inventory list certifying that all items have been accounted for.
                    • Receipt documentation or written explanation of any overages.
                    • A list of any excess or unrequired property within the area.
                    • A written, detailed report on any item of property which cannot be
                      located (shortage). The report should include the description, decal num-
                      ber, circumstances surrounding the loss, and full explanation of actions
                      taken to recover the property.
                    The Property Accountable Officer shall reconcile all of the reports sub-
                    mitted by the Custodial Officer with the official property records.

                    6.4.     Disposal	

                    6.4.1.   Disposal of Non-Superfund Property
                    Disposal of property procured with non-Superfund funds that is excess to
                    the needs of an activity shall be made in accordance with 41 CFR
                    101-43.3.

                    6.4.2.   Disposal of Superfund Property
                    When personal property, funded totally or in part with Superfund funds, is
                    no longer required to support the Superfund program, disposition must be
                    made on the property and generally proceeds from the transaction must be
                    reimbursed to the Trust Fund and the specific site or activity account
                    credited. Disposition in this context includes: transfer from a Superfund
                    activity to a non-Superfund activity within the Agency; transfer to another
                    federal agency, sales by EPA or GSA, and transactions for trade-in or
                    exchange.

                    6.4.2.1  Nonaccountable Property
                    For all nonexpendable personal property falling below the accountability
                    threshold, reimbursement to the Trust Fund shall take place at the time of
                    eventual sale when ultimate disposition is made on the property. The
                    property may be used by other EPA functions until that time. If an item is
                    funded partially by Superfund funds, all of the proceeds from the sale will
                    be reimbursed to the Trust Fund. (See general policy, chapter 1, section
                    6.3.2.2.)
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Personal Property Management Policy	4831 -2/12/90
                    6.4.2.2  Accountable Property
                    The transfer or sale of accountable property to a non-Superfund entity
                    shall be made in accordance with the Federal Property Management
                    Regulations and proceeds will be reimbursed to the Trust Fund at the fair
                    market value of the item at the time of transfer or sale. Equipment orig-
                    inally funded partially by Superfund funds will have the same percentage
                    applied for processing disposition; e.g., for an item purchased with 50 per-
                    cent Superfund, 50 percent non-Superfund monies, the proceeds from the
                    sale of that item will be divided equally between the Trust Fund and mis-
                    cellaneous receipts of the Treasury (see 41 CFR 101-43.309-3).

                    When an item is no longer needed to support the Superfund activity for
                    which it was procured, the sponsoring office may reimburse the Trust
                    Fund for the proportionate share of the Superfund cost at the item's fair
                    market value. For example, if an item originally costing $10,000 was pur-
                    chased with 50 percent Superfund and 50 percent non-Superfund funds;
                    and the current fair market value is $5,000; the sponsoring office would
                    reimburse $2,500 to the Trust Fund.

                    If the sponsoring office has no requirement for the property, every effort
                    will be made to transfer that property to another Superfund activity. If
                    there is no requirement for the property within the Superfund program it
                    shall be disposed of in the order of priority listed below.

                    6.4.2.3  Trade-In Transactions
                    In addition to the exchange/sale requirements of the Federal Property
                    Management Regulations (FPMR) in 41 CFR 101-46.2 and the
                    exchange/sale procedures of the FSS Manual, PMR 4-08, the Property
                    Management Officers must ensure that items purchased under the Super-
                    fund appropriation are not traded in for non-Superfund items.

                    6.4.2.4  Intra-Agency Transfers
                    The procedures for reassignment of personal property within the Agency
                    are described in FSS Manual, PMR 4-04. The transfer of unrequired
                    Superfund personal property items to non-Superfund activities within the
                    Agency requires reimbursement to the Trust Fund at the fair market value.
                    The item shall be listed on an SF-120, Report of Excess Personal Proper-
                    ty. The fair market value must be included in the description block in each
                    line item. Circulation of the SF-120 should be first within the local
                    Accountable Area, then Agency-wide. For those Superfund items to be
                    reassigned within the Agency, receiving offices must submit documenta-
                    tion to accomplish the financial transfer reimbursing the Trust Fund.
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4831 -2/12/90	     Personal Property Management Policy
                    6.4.2.5  Exchange/Sale Transactions
                    In addition to the exchange/sale requirements of 41 CFR 101-46.2 and the
                    exchange/sale procedures of the FSS Manual, PMR 4-08, the Property
                    Management Officer must ensure that Superfund items are not exchanged
                    for non-Superfund items.

                    6.4.2.6  Interagency Transfers
                    Items not reassigned within the Agency will be reported to the GS A
                    Regional office in accordance with the procedures in the FSS Manual,
                    PMR 4-05. The regulations at 41 CFR 101-43.3 apply except that reimbur-
                    sement to the Trust Fund at fair market value is required.

                    6.4.2.7  Limited Sales by Holding Agencies
                    At the discretion of the Property Management Officer and in accordance
                    with the regulations at 41 CFR 101-45.304 and the procedures at FSS
                    4830-4, PMR 4-06, limited sales procedures may be followed in lieu of
                    the GSA region processing the sale.

                    Proceeds from the limited sales are credited to the Trust Fund. If as a
                    result of the sales action, the highest bid is less than 75 percent of the
                    established fair market value,  the Property Accountable Officer shall con-
                    tact any EPA program which indicated previous interest in the property
                    and re-offer the property at the reduced value. Limited sales are encour-
                    aged to expedite disposition of equipment. In addition, exchange/sale
                    transactions can also be effected under limited sales.

                    6.4.2.8  GSA Sales
                    When transfers to other federal agencies are not accomplished, GSA will
                    sell the property to the general public. The Property Accountable Officer
                    may request that EPA be notified by GSA if as a result of the sales action,
                    the highest bid is less than 75  percent of the established fair market value.
                    The Property Accountable Officer may then contact any EPA program
                    which indicated previous interest in the property and re-offer the property
                    at the reduced value. In the event items are not reassigned in the Govern-
                    ment after re-offer, the Property Accountable Officer should accept the
                    original bid. Proceeds of the sale will be deposited in the Trust Fund.
 Chapter 2. In-House Property                                                            Page 27

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4831-2/12/90
                                              Personal Property Management Policy
          Assistance Agreement Property
                                    Chapter 3
1.      Purpose
2.
Scope
                  This chapter establishes policies for the management and control of per-
                  sonal property provided to or acquired by recipients through Assistance
                  Agreements.
                  The policies set forth in this chapter apply to all Environmental Protection
                  Agency (EPA) organizations that award or administer Assistance Agree-
                  ments. In addition, these policies apply to all recipients of EPA Assistance
                  Agreements as follows:
                  • State or local governments or federally-recognized Indian tribes must
                     comply with the requirements in section 9; except if they are recipients
                     of Comprehensive Environmental Response, Compensation, and
                     Liability Act (CERCLA) funded projects, then they must comply with
                     section 10.

                  • Certain nonprofit recipients must comply with the requirements in sec-
                     tion 8.
                  • All other recipients must comply with the requirements in section 7.
3.      Authority
                   The policies contained in this chapter reflect the following regulations and
                   directives:
                   • 40 Code of Federal Regulations (CFR) Part 30, "General Regulation for
                     Assistance Programs"
                   • 40 CFR Part 31, "Uniform Administrative Requirements for Grants and
                     Cooperative Agreements to State and Local Governments"
                   • 40 CFR Part 33, "Procurement under Assistance Agreements"

                   • 40 CFR Part 35, Subpart O, "Cooperative Agreements and Superfund
                     State Contracts for Superfund Response Actions"
                   • Office of Management and Budget (OMB) Circular A-102: "Grants and
                     Cooperative Agreements with State and Local Government"
 Chapter 3. Assistance Agreement Property
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Persona] Property Management Policy      	                     	4831 -2/12/90
                    • OMB Circular A-l 10: "Grants and Agreements with Institutions of
                      Higher Education, Hospitals, and Other Nonprofit Organizations"

4.       Definitions	

                    The following definitions are based upon the guidance found in OMB Cir-
                    cular A-102. They apply only to Assistance Agreement property and are
                    therefore not included in the general glossary.

                    Equipment: Tangible, nonexpendable personal property having a useful
                    life of more than one year and an acquisition cost of $5,000 or more per
                    unit. This definition applies to all Assistance Agreements governed by 40
                    CFR Parts 31 and 35 and is used in sections 9 and 10 of this chapter.

                    Federally-furnished property: All property owned by the federal
                    Government and provided to a recipient under the terms of an Assistance
                    Agreement. This term is defined in the glossary as "government-furnished
                    property."

                    Supplies: All tangible personal property other than "equipment" as
                    defined above. This definition applies to all Assistance Agreements
                    governed by 40 CFR Parts 31 and 35 and is  used in sections 9 and 10 of
                    this chapter.

5.       Reference	

                    The following sources are referenced for additional information on
                    policies cited in this chapter.
                    • Assistance Administration Manual, 5700, Chapter 26, "Property
                      Management"
                    • Guidance, Procurement under Superfund Remedial Cooperative Agree-
                      ments, 9375.1-11

6.       Responsibilities	

                    The general responsibilities of the EPA Project Officer, the EPA Award
                    Official, the EPA Property Administrator, the EPA Grants Officer, and  the
                    EPA Financial Management Officer are discussed in this section. Where
                    applicable, the detailed responsibilities for these officials regarding
                    approval, tide and interest, property management standards, and disposal
                    requirements are discussed in those respective sections.
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4831 -2/12/90	Personal Property Management Policy
                    6.1.     EPA Project Officer	
                    The EPA Project Officer is responsible for developing property require-
                    ments with the recipient and coordinating the retention, title, interest, and
                    disposition of property with the appropriate Grants Administration Office.
                    This includes ensuring that property acquired by the recipient is techni-
                    cally suited for the project and that the recipient complies with all of the
                    applicable property requirements. These responsibilities are shared with
                    the Grants Administration and Property Management Offices. When the
                    term Project Officer is used in section 10 of this chapter, it refers to those
                    duties assigned the Cooperative Agreement Project Officer under Super-
                    fund Assistance Agreements.

                    6.2.     EPA Property Administrator	
                    The EPA Property Administrator is designated in the Assistance Agree-
                    ment and is responsible for ensuring that the recipient complies with all
                    applicable requirements for federally-owned property and provides the
                    recipient with disposition instructions for federally-furnished property.
                    The Property Administrator is also responsible for ensuring that property
                    claimed from the recipient is received, decaled, and entered into the Per-
                    sonal Property Accountability System.

                    6.3.     EPA Grants Officer	
                    The EPA Grants Officer must ensure that applicable policies concerning
                    retention, title, disposition, and any appropriate special conditions are
                    incorporated into the Assistance Agreement. This shall include the desig-
                    nation of the EPA Property Administrator in the Agreement when EPA
                    retains title for property or when federally-furnished property is provided
                    in the Agreement. The EPA Grants Officer is also responsible for provid-
                    ing the Property Administrator with all Agreements and Amendments that
                    involve federally-furnished property. In addition, the Grants Officer must
                    ensure that any property acquired by the recipient meets EPA's administra-
                    tive requirements and may check the recipient's property management sys-
                    tems to assure compliance with the property management requirements in
                    this chapter.

                    6.4.     EPA Award Official	
                    The EPA Award Official ensures that the acquisition of personal property
                    by a recipient is reviewed and then approves the acquisition as part of the
                    assistance award. Further, the EPA Award Official is responsible for
                    ensuring that the recipient receives notification concerning the transfer of
                    tide and disposition of property.
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Personal Property Management Policy	4831 -2/12/90
                    6.5.     EPA Financial Management Officers	
                    EPA Financial Management Officers are responsible for providing
                    guidance on financial management policy, procedures, and any financial
                    transactions resulting from property disposition.

7.       Non-Governmental Organizations	

                    The policies in this section are governed by 40 CFR Part 30 and apply to
                    profit making organizations and institutions of higher education, hospitals
                    and other nonprofit organizations whose primary purpose is not scientific
                    research. Personal property, provided to or acquired by a recipient of an
                    Assistance Agreement, must be authorized in the Assistance Agreement.
                    When a recipient of an Assistance Agreement acquires or is provided with
                    property, funded in whole or in part with EPA assistance funds, the
                    recipient must:
                    • Use the property for the EPA-assisted project for which it was acquired
                      for as long as the property is needed; whether or not the project con-
                      tinues to be supported with EPA funds.
                    • Comply with requirements for acquiring, managing, and disposing of
                      personal property in sections 7.1 through 7.4.
                    • Solicit and follow EPA's instructions on disposal of the equipment after
                      the project's completion.

                    7.1.     Approval	
                    The acquisition of property may be authorized if it is in the best interest of
                    the Government. Alternative sources include:
                    • Federally-furnished property
                    • Purchase of equipment with recipient funds
                    • Lease
                    • Contractor services
                    • Contractor-acquired property
                    • Property purchased with Assistance Agreement funds

                    7.1.1.   Federally-Furnished Property
                    EPA-owned property, with the exception of motor vehicles, may be
                    provided to recipients for use on an EPA-assisted project. This property
                    will be referred to in the remainder of this chapter as "federally-furnished"
                    property. At the end of the project period or when the federally-furnished
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4831 -2/12/90	Personal Property Management Policy


                    property is no longer needed for the project, the property must be returned
                    to the EPA.

                    The responsible Project Officer must coordinate a request for providing
                    federally-furnished property to a recipient by writing a memorandum
                    addressed to the EPA Property Administrator. A copy shall be forwarded
                    to the Grants Officer. The request must include a copy of the Assistance
                    Agreement as well as the following information:
                    • A full description of the property, including the manufacturer's name,
                      serial, and model number.
                    • EPA decal number, present condition of the property, and the acquisi-
                      tion date and cost.
                    • The purpose for which the property will be used.
                    • The planned duration of the loan,
                    • Complete name and address of the recipient organization.
                    • The EPA assistance identification number of the project for which the
                      property will be used.
                    • The name and title of the official authorized to sign for the recipient.
                    • Specific statement as to who is responsible for maintenance and repair.
                    • Specific statement as to who is to pay costs incurred in transporting the
                      property and any site restoration expenses.
                    The EPA Grants Officer shall incorporate a complete list of all federally
                    owned equipment provided to the recipient in the Assistance Agreement.
                    In addition, the Agreement will designate the EPA Property Administrator
                    responsible for all property matters during the life of the Agreement. A
                    special condition will be included in the Agreement to assure that the
                    recipient returns all federally-furnished property to EPA at the end of the
                    project, or when the property is no longer needed for the project.

                    7.1.2.    Purchase of Equipment with Recipient Funds
                    A recipient operating under an EPA Assistance Agreement may purchase
                    equipment using the recipient's own funds and charge EPA a fee or claim
                    a depreciation allowance for the time the equipment is used. The fee will
                    be based upon a calculated usage charge rate (e.g., $/hour of operation or
                    $/sample) and will be based upon the cost principles found in 40 CFR
                    30.410. Once  the charge rate is agreed upon by both parties, this rate can
                    be applied in every project for which the specific piece of equipment will
                    be used. The recipient need not have the approval of the EPA Award Offi-
                    cial to purchase the property, since federal funds are not used for any por-
 Chapter 3. Assistance Agreement Property                                       ~        Page 33

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Personal Property Management Policy	4831 -2/12/90


                    tion of the purchase. However, the recipient must have the Award Official
                    approve the usage rate.

                    Usage rates should be reviewed periodically by the recipient to ensure that
                    total charges for an item do not exceed the costs actually incurred. For fur-
                    ther information see the "Assistance Administration Manual," Chapter 26.

                    7.1.3.    Lease of Equipment
                    If a piece of equipment is to be leased through an Assistance Agreement a
                    lease versus purchase analysis must be prepared to ensure that the leasing
                    arrangement is the most cost-effective way to achieve the desired results.
                    The cost of leasing must be an approved program cost included in an
                    approved Assistance Agreement.

                    7.1.4.    Contractor Services
                    As an alternative to purchasing or leasing equipment, a contractor who has
                    the appropriate equipment may be procured. Because the contractor owns
                    the equipment, the contractor is not required to follow the property stand-
                    ards set forth in this chapter.

                    7.1.5.    Contractor-Acquired Property
                    If authorized to do so in the Assistance Agreement, a contractor may pur-
                    chase equipment with EPA funds (40 CFR Part 33). See section 7.2.2 of
                    this chapter to determine when the property standards in this chapter apply.

                    7.1.6.    Property Purchased with Assistance Agreement Funds
                    The recipient may claim the purchase of personal property with EPA assis-
                    tance funds, if it is necessary and reasonable for the completion of the
                    project. The recipient is subject to the following approval requirements:
                    • The purchase must be authorized by the Assistance Agreement.
                    • The purchase must be made during the project and budget period.
                    • Before the purchase of property with a unit acquisition cost of $10,000
                      or more, the recipient must receive the specific approval of the EPA
                      Award Official. If the equipment is less than $10,000 and the recip-
                      ient's procurement system is self-certified, a cost comparison need not
                      be submitted for  approval, but must be available for review. If the
                      recipient's procurement system is not self-certified prior approval must
                      be obtained.
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4831 -2/12/90	Personal Property Management Policy
                    7.1.7.   Approval Responsibilities

                    7.1.7.1  Recipient
                    The recipient must include any property to be obtained through purchase,
                    lease, or contract in the Assistance Application budget for approval by
                    EPA. A cost comparison to determine the most cost-effective alternative
                    for obtaining the equipment shall be prepared by the recipient. For acquisi-
                    tions of $10,000 and over, the recipient must submit the cost comparison
                    to EPA and obtain the Award Official's prior written approval before
                    making the acquisition. Each of these acquisitions must be listed as a
                    separate line item in the Assistance Agreement budget.

                    7.1.7.2  Project Officer
                    The Project Officer must ensure that any equipment obtained by the
                    recipient is suitable technically for the project and coordinate requests for
                    the use of federally-furnished property through a memorandum to the
                    appropriate Property Administrator as described in section 7.1.1 of this
                    chapter.

                    7.1.7.3  Award Official
                    The Award Official must approve acquisitions of property with a cost of
                    $1,000 and more in the Assistance Agreement budget.

                    7.1.7.4  Property Administrator
                    The Property Administrator must approve any use of federally-owned
                    property authorized to be furnished in the Agreement. At the request of
                    the Award Official, the Property Administrator shall verify the availability
                    of federally-owned property prior to purchase with Assistance Agreement
                    funds.

                    7.2.     Title and EPA's Interest	
                    Title to personal property acquired with Assistance Agreement funds will
                    vest with the recipient, unless specified in the Agreement. Although title
                    to the property vests with the recipient, EPA has both an interest in the
                    property and the right to transfer title from the recipient as discussed
                    below.

                    7.2.1.   Property Purchased with Assistance  Agreement Funds
                    EPA may reserve the right to transfer recipient-owned nonexpendable per-
                    sonal property having a unit acquisition cost of $1,000 or more to the
                    federal Government or a third party within 120 days after the project
                    completion.
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Personal Property Management Policy	4831 -2/12/90
                    EPA must document its right of transfer by identifying the property in the
                    Assistance Agreement/Amendment, or by otherwise notifying the
                    recipient in writing no later than 120 days after the project completion.
                    While EPA may declare the intention to exercise its right to transfer title
                    any time during the 120 day period, it is desirable that the funding pro-
                    gram make known its intention at the time of approving the project for
                    award. This will permit the Award Official to state the intention to transfer
                    title in the original offer of financial assistance.

                    7.2.2.    Contractor-Acquired Property
                    Personal property acquired by a recipient's contractor with EPA's funds
                    must be authorized in the subagreement. The subagreement must identify
                    whether the title vests with the recipient, EPA, or the contractor; and must
                    state appropriate provisions for vesting title. If the title vests with the
                    recipient or EPA, the contractor must comply with the standards contained
                    in tnis c:.~r .er.

                    7.2.3.    Federally-Furnished Property
                    Title to all federally-furnished property remains vested in the federal
                    Government.

                    7.2.4.    Title and Interest Responsibilities

                    7.2.4.1  Project Officers
                    The EPA Project Officer is responsible for initiating action  to exercise
                    EPA's right to transfer title in the following instances:
                    • Pre-award decision. The Project Officer (or prospective Project Officer)
                      should notify the Award Official in writing of the funding program's
                      intention at the end of the project period to exercise the right to transfer
                      the title of the property. The notification will then be included in the
                      original Assistance Agreement.
                    • Post-award decision. The Project Officer may exercise the right to trans-
                      fer titie by submitting a memorandum request through the Approval
                      Official to the Award Official any time during the project period or
                      within 120 days after the project period. The request should clearly
                      identify the property to be claimed, the reason(s) for exercising the right
                      to claim the property, and the intended use (e.g., use at an EPA
                      laboratory or transfer to another recipient of EPA financial assistance).
                      A copy of the request shall be forwarded to the appropriate Property
                      Administrator. If the decision is made after the end of the project
                      period, the Project Officer must ensure that the Award Official has
                      ample time to exercise the right prior to 120 calendar days after the end
                      of the project period. The Project Officer shall arrange to reimburse the
Page 36                                                  Chapter 3. Assistance Agreement Property

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4831-2/12/90     	    	        	  	Personal Property Management Policy
                      recipient for its proportionate share of the current fair market value plus
                      any reasonable shipping or interim storage costs incurred.

                    7.2.4.2  Award Official
                    Upon being notified of the funding program's decision to exercise the
                    right to title, the Award Official shall:
                    • Ensure that the reservation is included in the original assistance offer or
                      subsequent amendment of the Assistance Agreement.
                    • Furnish the recipient with instructions for reporting the procurement
                      and receipt of the property for which EPA reserves the right to transfer
                      title. This shall include: the name, address, and telephone number of the
                      organization to whom the property will be transferred, as well as the
                      name and address of the EPA Property Administrator. Instructions for
                      determining the fair market value of the property and the value of the
                      recipient's share for which it will be reimbursed by EPA; and instruc-
                      tions, if any, for packing and shipping the equipment shall also be
                      included.

                    7.2.4.3  Property Administrator
                    If EPA has exercised the right to transfer title to EPA, the Property Admin-
                    istrator must ensure the property is received, decaled, and entered into the
                    Personal Property Accountability System.

                    7.3.     Property Management Standards	
                    Recipients must comply with the following property management stand-
                    ards regarding control, records, and inventory. Recipients may use their
                    own property management system if it meets the following minimum
                    standards.

                    7.3.1.   Control
                    a. Maintenance of accurate records reflecting:
                    • A description of the property.
                    • Manufacturer's serial number or other identification number.
                    • Source of the property, including assistance identification number and
                      who holds title.
                    • Unit acquisition date and cost.

                    • Percentage of the federal share of the cost.
                    • Location, use, condition of the property, and date the information was
                      recorded.
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Personal Property Management Policy	4831 -2/12/90
                    • Ultimate disposition data, including the sales price or the method used
                       to determine value of EPA interest for which the recipient compensates
                       EPA under section 7.4 of this chapter.
                    b. Maintenance of a control system to ensure adequate safeguards to
                    prevent loss, damage, or theft of the property. Provisions must be made
                    for the thorough investigation and documentation of any loss, damage, or
                    theft.

                    c. Maintenance of adequate procedures to keep the property in good condi-
                    tion to ensure that instruments used for precision measurements are peri-
                    odically calibrated.

                    d. Maintenance of proper sales procedures to ensure the highest possible
                    return, if the recipient is authorized to sell the property.

                    e. Maintenance of the identification of federally-furnished property.

                    7.3.2.    Records
                    Having purchased property with federal funds, the recipient must:
                    • Maintain all records relating to the purchase of personal property for
                       three years following the date of the final disposition  of the property, or
                       if the Assistance Agreement is terminated maintain records for three
                       years after official transfer or disposal of the property.
                    • Maintain all such records until any litigation, claim, appeal, or audit has
                       been resolved, even if this action began after the initial three-year
                       period.
                    • Allow any official EPA representative full access to all program-related
                       records as long as such records are retained.
                    • Include provisions for control and accounting of all property with an
                       acquisition cost of greater than $1,000, or greater than $300 if the item
                       is classified as sensitive, in the financial management system.
                    The recipient's contractors are also subject to the record retention require-
                    ments noted above.

                    7.3.3.    Inventory

                    7.3.3.1   Property Purchased with Assistance Agreement Funds
                    A physical inventory must be conducted by the recipient at least once
                    every two years and the results reconciled with the property records. The
                    inventory must verify the current use and continued need for the property.
                    The inventory records  need not be submitted to EPA but must be available
Page 38         ~                                         Chapter 3. Assistance Agreement Property

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4831 -2/12/90	Personal Property Management Policy
                    to EPA upon request. In addition, an inventory report must be submitted
                    to EPA when equipment is no longer needed for the project and within 90
                    days of the end of the project period. This report must describe the condi-
                    tion of the property and request disposition instructions.

                    7.3.3.2   Federally-Furnished Property
                    A physical inventory of all federally-furnished property must be con-
                    ducted annually, within 90 days of the end of the project period or when
                    the property is no longer needed. The inventory report, including descrip-
                    tion, decal number, and current condition of each item, shall be submitted
                    to the EPA Property Administrator designated in the Assistance Agree-
                    ment. The EPA Property Administrator will provide the recipient with dis-
                    position instructions.

                    7.3.4.    Property Management Responsibilities

                    7.3.4.1   Property Administrator
                    The EPA Property Administrator ensures the annual inventory is received
                    on all federally-furnished property and reconciles the inventory  with
                    records.

                    7.3.4.2  EPA Grants Officer
                    The EPA Grants Officer or designee may, at any time, check the
                    recipient's property management system to ensure compliance with the
                    requirements of this chapter.

                    7.4.      Disposal	

                    7.4.1.    Property Purchased  with Assistance Agreement Funds
                    When original or replacement property acquired under an Assistance
                    Agreement is no longer needed to  support the project for which it was
                    acquired, the recipient shall request disposition instructions from EPA.
                    EPA may exercise its right to transfer title from the recipient to EPA or to
                    a third party (see section 7.2 for procedures to transfer title). If EPA
                    chooses not to exercise this right, then the recipient may use the property
                    first on other EPA projects, or on other federal projects. However, if the
                    property is to be sold or used for non-federal activities then the recipient
                    must comply with the following policies.

                    Recipients of Superfund Assistance Agreements who are not covered
                    under 40 CFR Part 35, Subpart O, will comply with the following policies
                    for disposal of property when the recipient is no longer supporting a
                    Superfund project.
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Personal Property Management Policy	          4831 -2/12/90
                    7.4.1.1  Expendable Property
                    If there is a residual inventory of expendable property exceeding $ 1,000
                    in total aggregate fair market value upon termination or completion of the
                    award, and the property cannot be used on other federally-sponsored
                    projects; the recipient must keep it or sell it and compensate EPA for
                    EPA's proportionate share of the current fair market value or sales
                    proceeds, less any reasonable shipping or interim storage costs incurred
                    by the recipient. If the property was purchased with CERCLA funds and
                    the property cannot be used on other Superfund projects; the recipient
                    must keep it or sell it and compensate the Trust Fund for EPA's propor-
                    tionate share of the fair market value less any reasonable expenses
                    incurred by the recipient.

                    If there is a residual inventory of expendable property with a total
                    aggregate fair market value of less than $1,000 upon termination or com-
                    pletion of the award; then the property may be retained, sold, or otherwise
                    disposed of with no further obligation to EPA.

                    7.4.1.2  Nonexpendable Property
                    Items of equipment with a current per unit fair market value of less than
                    $1,000 may be retained, sold, or otherwise disposed of with no further
                    obligation to EPA. However, profit  making organizations may keep non-
                    expendable personal property only if EPA is reimbursed for its propor-
                    tionate share of the current fair market value of the property.

                    EPA is entitled to compensation for the EPA interest in property with a
                    current per unit fair market value of $1,000 or more. These items may be
                    retained or sold, provided that the recipient reimburses EPA for its inter-
                    est, less any reasonable shipping or interim storage costs incurred by  the
                    recipient.

                    In the event that EPA is due reimbursement for property purchased with
                    CERCLA funds, reimbursement will be deposited in the Trust Fund.

                    7.4.2.   Federally-Furnished Property
                    When federally-furnished property  is  no longer needed or at the end of the
                    project, the recipient must inform EPA that the property is available for
                    return to the federal Government. EPA will send disposition instructions
                    to the recipient.

                    7.4.3.   Contractor-Acquired Property
                    If the property is acquired by a contractor through a subagreement with
                    EPA funds and the property is titled to the recipient or EPA, the disposi-
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4831 -2/12/90	Personal Property Management Policy
                    tion procedures set forth in this chapter apply. If the title to the property
                    vests with the contractor, these disposal requirements do not apply.

                    7.4.4.    Disposition Responsibilities

                    7.4.4.1   Recipient
                    The recipient must request disposition instructions for all property
                    acquired with Assistance Agreement funds when that property is no
                    longer needed for the project.

                    7.4.4.2  EPA Property Administrator
                    The EPA Property Administrator must issue disposition instructions to
                    recipients for property which EPA has exercised title or transferred title to
                    a third party, and ensure that property transferred to EPA is received,
                    decaled, and entered into the Personal Property Accountability System.

                    7.4.4.3  Project Officer
                    The Project Officer must coordinate collection or payment actions with
                    the appropriate Financial Management Officer.

8.       Certain Nonprofit Organizations	

                    This section applies to recipients of Assistance Agreements which qualify
                    as nonprofit institutions of higher education conducting basic or applied
                    research or nonprofit organizations whose primary purpose is the conduct
                    of scientific research. For further information see 40 CFR Part 30.

                    8.1.     Approval	
                    The recipient is subject to the approval requirements for all recipients
                    listed in section 7.1 of this chapter.

                    8.2.     Title and EPA Interest	
                    Tide to personal property acquired with Assistance Agreement funds will
                    vest with the recipient subject  to the following limitations:
                    • If EPA determines that it is  in the best interest of the Agency, EPA may
                       exercise the right to transfer title for personal property with a unit acqui-
                       sition cost of $1,000 or more to the federal Government or a third party,
                       within 120 days of project completion. EPA must identify such proper-
                       ty in  the Assistance Agreement or otherwise notify the recipient in writ-
                       ing that EPA reserves the right to transfer title of such property.

                    • If EPA does not exercise the right to transfer title of the property, the
                       recipient has no further obligation or accountability to EPA, and EPA
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Personal Property Management Policy	4831 -2/12/90
                      relinquishes claim to EPA's financial interest in the property. The only
                      exception to this will be for recipients of Superfund Assistance Agree-
                      ments. In this case, EPA will retain a financial interest in the property
                      until time of final disposition. See section 10.4.1 for disposition instruc-
                      tions of Superfund property.

                    8.3.     Property Management Standards	
                    The recipient does not have to follow the prescribed property management
                    standards unless:
                    • EPA has reserved the right to transfer title to property acquired by the
                      recipient with Assistance Agreement funds.
                    • The Assistance Agreement is supporting a Superfund project.
                    • Federally-furnished property is being used on the project.
                    In these cases, the recipient is subject to all of the property management
                    requirements found in section 7.3 of this chapter.

                    8.4.     Disposal	
                    The recipient is not subject to disposal requirements unless:
                    • EPA has reserved the right to transfer title to property acquired by the
                      recipient with assistance funds.
                    • The Assistance Agreement is supporting a Superfund project.
                    • Federally-furnished property is being used on the project.
                    In these cases, the recipient is subject to all of the disposal requirements
                    found in section 7.4 of this chapter.

9.       State and Local Governments	

                    The policies in this section are governed by 40 CFR Part 31 and apply to
                    state, local, and federally-recognized Indian tribal governments, unless the
                    recipient is receiving CERCLA funds (see section 10).

                    All recipients in this category are subject to both the approval, tide, and
                    interest requirements found in sections 9.1 and 9.2 below. State govern-
                    ments may, however, follow their own laws and procedures to use,
                    manage, and dispose of personal property acquired under an EPA Assis-
                    tance Agreement, with the following exceptions:
                    • When EPA notifies the state that EPA will exercise its right to transfer
                      the title to equipment acquired by the state under the Assistance Agree-
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4831-2/12/90	Personal Property Management Policy
                      ment, then the state must also comply with the disposition requirements
                      found in section 9.4 below.
                    • When the state receives federally-furnished property under the Assis-
                      tance Agreement, then the state must also comply with the federally-fur-
                      nished property management standards and disposition requirements
                      found in sections 9.3 and 9.4 below.
                    • When the action would result in the need for additional funding.
                    When local governments and federally-recognized Indian tribes acquire
                    personal property under an EPA Assistance Agreement, these recipients
                    must:
                    • Use the property for the EPA-assisted project for which it was acquired
                      for as long as the property is needed, whether or not the project con-
                      tinues to be supported by EPA funds.
                    • Comply with requirements for acquiring, managing, and disposing of
                      personal property in sections 9.1 through 9.4.
                    • Solicit and follow EPA's instructions on disposal of the equipment after
                      the project's completion.

                    9.1.     Approval	
                    Personal property, provided to or acquired by any recipient of an EPA
                    Assistance Agreement, must be authorized in the Assistance Agreement
                    All governmental recipients must follow the approval requirements
                    described in section 7.1.

                    9.2.     Title and Interest	

                    9.2.1.    Property Purchased with Assistance Agreement Funds
                    Title to personal property acquired with Assistance Agreement funds will
                    vest with the recipient or subgrantee unless specified in the Agreement
                    Although title to the property vests with the recipient, EPA has both an
                    interest in the property and the right to transfer title from the recipient as
                    discussed below.

                    EPA may exercise the right to transfer the title to property to the federal
                    Government or a third party within 120 days after project completion.
                    EPA must document its right of transfer by identifying the property in the
                    Assistance Agreement/Amendment, or by notifying the recipient in writ-
                    ing no later than 120 days after the project completion.
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Personal Property Management Policy	4831 -2/12/90
                    9.2.2.    Contractor-Acquired Property
                    Personal property acquired by a recipient's contractor with EPA funds
                    must be authorized in the subagreement. The subagreement must identify
                    whether the title vests with the recipient, EPA, or the contractor; and must
                    state appropriate provisions for vesting title. If the title vests with the
                    state, then the state's contractor must comply with the state's laws and pro-
                    cedures concerning property management standards and disposition. If the
                    title vests with a local government, a federally-recognized Indian tribe, or
                    EPA, then the recipient's contractor must comply with the property
                    management standards and the disposition requirements described in sec-
                    tions 9.3 and 9.4

                    9.2.3.    Federally-Furnished Property
                    Title to all federally-furnished property remains vested in the federal
                    Government.

                    9.2.4.    Title and Interest Responsibilities
                    All governmental recipients must follow the title and interest respon-
                    sibilities described in section 7.2.4.

                    9.3.      Property Management Standards	
                    State governments may follow their own administrative and management
                    procedures except when the state has been loaned federally-furnished
                    property or when the state has been notified that EPA will transfer the title
                    of property purchased with Assistance Agreement funds. In these two
                    cases, the state must follow the property management standards described
                    in section 7.3.  In all other cases, the state is not required to comply with
                    the property management standards set forth in this chapter, but may use
                    section 7.3 as a guideline.

                    Local governments, federally-recognized Indian tribes, and subgrantees
                    must follow the property management standards described in section 7.3.

                    9.4.      Disposal	
                    State governments may follow their own disposal procedures except when
                    the state has been provided federally-furnished property or when the state
                    has been notified that EPA will transfer the tide of property purchased
                    with Assistance Agreement funds to EPA or a third party. In these two
                    cases, the state must follow the disposal requirements described in this
                    section. In all other cases, the state is not required to comply with the dis-
                    posal requirements set forth in this chapter, but may use this section as a
                    guideline.
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4831-2/12/90      	   	  	     Personal Property Management Policy
                    Local governments and federally-recognized Indian tribes must follow the
                    disposal requirements described in this section.

                    9.4.1.   Property Purchased with Assistance Agreement Funds
                    EPA may exercise its right to transfer title from the recipient to EPA or to
                    a third party (see section 7.2.4 for the responsibility requirements to trans-
                    fer title). If EPA chooses to exercise this right, then at the end of the
                    project, the recipient shall request disposition instructions from EPA.

                    If EPA chooses not to exercise this right, the local governments and
                    federally-recognized Indian tribes may use the property first on other EPA
                    projects or on other federal projects. If the property is to be sold or used
                    for non-federal activities, the local/Indian recipients must comply with the
                    disposal requirements described in this section. States may follow their
                    own disposal procedures when EPA chooses not to exercise the right to
                    transfer title.

                    9.4.1.1  Equipment
                    EPA will relinquish its financial interest in any item with a current fair
                    market value of less than $5,000. These items may be retained, sold, or
                    otherwise disposed of by the recipient with no further obligation to EPA.

                    If items with a current per unit fair market value in excess of $5,000 are
                    retained or sold by the recipient, EPA shall be reimbursed for EPA's
                    proportionate share of the fair market value.

                    9.4.1.2 Supplies
                    If there is a residual inventory of unused supplies exceeding $5,000 in
                    total aggregate fair market value that cannot be used on any other federal-
                    ly sponsored programs, the recipient shall compensate EPA for EPA's
                    proportionate share of the fair market value. EPA will relinquish its inter-
                    est in any expendable property with a current fair market value of less
                    than $5,000.

                    9.4.2.   Federally-Furnished Property
                    When Federally-furnished property is no longer needed or at the end of
                    the project, the recipient must inform EPA that the property is available
                    for return to the federal Government. EPA will send disposition instruc-
                     tions to the recipient.

                     9.4.3.   Contractor-Acquired Property
                     If the property is acquired by a contractor through a subagreement with
                     EPA funds and the property is tided with the local/Indian recipient or with
                     EPA, the disposition procedures set forth in this chapter apply. If the title
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Personal Property Management Policy	4831-2/12/90
                    to the property vests with the state, then the state's disposition procedures
                    apply. If the title to the property vests with the contractor, these disposal
                    requirements do not apply.

                    9.4.4.    Disposition Responsibilities

                    9.4.4.1   Recipient
                    The state must request disposition instructions when the state has been
                    loaned federally-furnished property and when the state has been notified
                    that EPA will transfer the tide of property purchased with Assistance
                    Agreement funds. In all other cases, the state may follow its own disposal
                    procedures.

                    The local/Indian recipients must request disposition instructions for all
                    property acquired with Assistance Agreement funds when that property is
                    no longer needed for the project.

                    9.4.4.2   EPA Property Administrator
                    The EPA Property Administrator must issue disposition instructions to
                    recipients for property which EPA has exercised title or transferred title to
                    a third party, and ensure that property transferred to EPA is received,
                    decaled, and entered into the Personal Property Accountability System.

                    9.4.4.3   Project Officer
                    The Project Officer must coordinate collection or payment actions with
                    the appropriate Financial Management Officer.

10.     Superfund Assistance Agreements	

                    The policies in this section apply to all recipients of CERCLA-funded
                    assistance agreements governed by 40 CFR Part 35, Subpart O. The
                    reader should consult  these regulations for a complete description of the
                    requirements. Recipients of Superfund Assistance Agreements which
                    qualify as nonprofit organizations must also comply with the policies set
                    forth in section 8 of this chapter.

                    In the Assistance Agreement, the recipient must agree to:
                    • Properly allocate the cost of the equipment by the Superfund site and
                       activity (NOTE: if the recipient is awarded a  pre-remedial or Core Pro-
                       gram Cooperative Agreement, the recipient is not required to charge
                       property costs  by site).

                    • Accurately document the use of the property.
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                    • Solicit and follow EPA's instructions on the disposal of any equipment
                      purchased with CERCLA funds as specified in this section.

                    10.1.    Approval	
                    The acquisition of property may be authorized if it is in the best interest of
                    the Government. Alternative sources include:
                    • Federally-furnished property
                    • Purchase of equipment with recipient's funds
                    • Lease
                    • Contractor services
                    • Contractor-acquired property
                    • Property purchased with Assistance Agreement funds

                    10.1.1.  Federally-Furnished Property
                    EPA-owned property, with the exception of motor vehicles, may be pro-
                    vided to recipients for use on an EPA-assisted project. At the end of the
                    project period or when the federally-furnished property is no longer
                    needed for the project, the property must be returned to EPA. The
                    responsible Project Officer must coordinate a request for providing
                    federally-furnished property to a recipient by writing a memorandum
                    addressed to the Property Administrator. A copy shall be forwarded to the
                    Grants Officer.  The request must include a copy of the Assistance Agree-
                    ment as well as the following information:
                       A full description of the property, including the manufacturer's name,
                       serial and model number.
                       EPA decal number, present condition of the property, and the acquisi-
                       tion cost.
                       The purpose for which the property will be used.
                       The planned duration of the loan.
                      I Complete name and address of the recipient organization.
                      I The EPA assistance identification number of the project for which the
                       property will be used.

                      I The name and title of the official authorized to sign for the recipient

                      I Specific statement as to who is responsible for maintenance and repair.
                      I Specific statement as to who is to pay costs incurred in transporting the
                       property and any site restoration expenses.
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Personal Property Management Policy	4831-2/12/90
                    The EPA Grants Officer shall incorporate a complete list of all
                    federally-furnished equipment provided to the recipient in the Assistance
                    Agreement. In addition, the Agreement will designate the Property Admin-
                    istrator responsible for all property matters during the life of the Agree-
                    ment. Special conditions will be included in the Agreement to assure that
                    the recipient returns all federally-furnished property to EPA at the end of
                    the project, or when the property is no longer needed for the project.

                    10.1.2.  Purchase of Equipment with Recipient Funds
                    A recipient operating under an EPA Assistance Agreement may purchase
                    equipment using the recipient's own funds and charge EPA a fee for the
                    time the equipment is used. The usage fee will also be used to allocate the
                    cost of equipment by site and activity by the recipient or the recipient's
                    contractor. The only exception will be for the Core Program and pre-
                    remedial activities, in which case, the recipient is not required to record or
                    apply the usage rate by site.

                    The fee will be based upon a calculated usage charge rate (e.g., $/hour of
                    operation or $/sample). See 40 CFR  35.6320. Once the charge rate is
                    agreed upon by both parties, this rate can be applied in every project for
                    which the specific piece of equipment will be used. The recipient need not
                    have the approval of the EPA Award Official to purchase the property,
                    since federal funds are not used for any portion of the purchase, however,
                    the usage rate must be approved in the Assistance Agreement.

                    Usage rates should be reviewed periodically by the recipient or federal
                    agency to ensure that total charges for an item do not exceed the costs
                    actually incurred. For further information see the "Assistance Administra-
                    tion Manual," Chapter 26.

                    10.1.3.  Cost Comparison
                    To determine the most cost-effective method of acquisition, the recipient
                    must conduct a cost comparison analysis before acquiring equipment
                    through lease, use of contractor services, or purchase with CERCLA
                    funds. The cost comparison shall contain the following:
                    • Demonstration that the equipment is required for the successful comple-
                      tion of the project.

                    • Expected life of the equipment (e.g., number of hours of operation,
                      number of samples that can be run, number of years that it will be used).

                    • Expected use on the project(s) to which it will be charged.
                    • Demonstration that the equipment cannot be reasonably obtained
                      through an alternative method.
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                    • Analysis comparing the cost of purchasing, operating, and maintaining
                      the equipment against the cost of leasing the equipment.
                    The alternative which the analysis shows to be the most cost-effective
                    means of obtaining the property must be used. The cost comparison must
                    be submitted to EPA for approval. For property with an acquisition value
                    of less than $5,000, the recipient is not required to prepare a cost com-
                    parison before acquisition, but the property must be included in the budget
                    for general approval.

                    10.1.4.  Lease or Rent Equipment
                    If it is the most cost-effective method of acquisition, the recipient may be
                    authorized to lease or rent.

                    10.1.5.  Use of Contractor Services
                    As an alternative to purchasing or leasing property, the services of a con-
                    tractor who has the appropriate equipment may be procured. The recipient
                    must require the contractor to allocate the cost of the contractor services
                    by site and activity.

                    10.1.6.  Contractor-Acquired Property
                    Personal property  acquired by a recipient's contractor with EPA funds
                    must be authorized in the subagreement. The subagreement must identify
                    whether the title vests with the recipient, EPA, or the contractor; and must
                    state appropriate provisions for vesting title. If the title vests with the
                    state, then the state's contractor must comply with the state's laws and pro-
                    cedures  concerning property management standards and disposition. If the
                    title vests with a local government, a federally-recognized Indian tribe, or
                    EPA, then the recipient's contractor must comply with the property
                    management standards and the disposition requirements described in sec-
                    tion 10.3 and 10.4.

                    10.1.7.   Property  Purchased with Superfund Funds
                    If equipment is to be purchased with CERCLA funds, the following
                    requirements must be met:
                    • A list of all pieces of equipment to be purchased, and the price of each
                       piece must be included in the Assistance Agreement.
                    • If the equipment is to be used on more than one of the recipient's Super-
                       fund sites, then a usage charge rate (see section 10.1.2) must be
                       approved by the Award Official so that the purchase price of the equip-
                       ment will be allocated among the sites.

                    • CERCLA funds may not be used to purchase transportable or mobile
                       treatment systems of any kind.
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Personal Property Management Policy	  4831-2/12/90
                    • Supplies purchased with CERCLA funds must be included in the Assis-
                      tance Agreement budget.

                    10.2.    Title and EPA Interest	

                    10.2.1.  Title

                    10.2.1.1 CERCLA-Funded Property
                    In accordance with the provisions of the Personal Property Requirements
                    under a Cooperative Agreement, 40 CFR 35.6300, title to property pur-
                    chased with CERCLA funds will vest with the recipient; however, EPA
                    retains the right to transfer title of all property purchased with CERCLA
                    funds to the federal Government or a third party within 120 calendar days
                    after project completion.

                    EPA must document its right of transfer by identifying the property in the
                    Assistance Agreement/Amendment. EPA may exercise its right to transfer
                    title any time during the 120 day period and must notify the recipient in
                    writing of this action.

                    10.2.1.2 Contractor-Acquired Property
                    Title to contractor-acquired property purchased with CERCLA funds is
                    subject to EPA interest requirements as described in paragraph 10.2.2 and
                    shall vest with the recipient.

                    10.2.1.3 Federally-Furnished Property
                    Title to all federally-furnished property remains vested with the federal
                    Government.

                    10.2.2.  EPA's Interest
                    EPA retains its interest in both equipment and supplies purchased with
                    CERCLA funds until final disposition of the property (see section 10.4).
                    At that time, reimbursement will be made to the Trust Fund at the percent-
                    age of the item's fair market value attributable to EPA's funding (where
                    EPA has not provided full funding of the purchase).

                    The only exception to this policy is for equipment comprising part of a
                    removal or remedial action and necessary for the continuing function of
                    the response action, such as pond liners or pipes for a water treatment sys-
                    tem. This property loses its character as government property. EPA will
                    relinquish interest in this property when the remedy is certified as being
                    functional and operational.  The property is removed from the Personal
                    Property Accountability System, if so controlled, upon certification by the
                    EPA Project Officer and concurrence by his/her supervisor that the proper-
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4831 -2/12/90   	Personal Property Management Policy
                    ty is being left in place as part of the Superfund response. The following
                    types of equipment may be included but are not limited to:
                    • Fixed in-place equipment: EPA will relinquish its interest in the title to
                      fixed in-place equipment after certifying that the remedy is functional
                      and operational.
                    • Equipment that is an integral part of services to individuals: This equip-
                      ment such as pipes, lines, or pumps providing hookups for homeowners
                      on an existing water distribution system, is a necessary and integral part
                      of the response action. EPA will relinquish its interest when EPA cer-
                      tifies that the remedy is functional and operational.

                    10.3.    Property Management Standards	
                    Recipients must comply with the following property management stand-
                    ards regarding control, records, and inventory. Recipients may use their
                    own property management system if it meets the following minimum
                    standards.

                    10.3.1.  Control
                    a. Maintenance of accurate records reflecting:
                    • A description of the property.
                    • Manufacturer's serial number or other identification number.

                    • Source of the property, including assistance identification number.
                    • Information regarding whether title is vested in the recipient or EPA.
                    • Unit acquisition date and cost.
                    • Percentage of EPA's vested interest.
                    • Location, use, condition of the property (by site and by activity), and
                      date the information was recorded.
                    • Ultimate disposition data, including the sales price or the method used
                      to determine value of EPA interest for which the recipient compensates
                      EPA under section 10.4 of this chapter.

                    b. Maintenance of a control system to ensure adequate safeguards to
                    prevent loss, damage, or theft of the property. Provisions must be made
                    for the thorough investigation and documentation of any loss, damage, or
                    theft.

                    c. Maintenance of adequate procedures to keep the property in good condi-
                    tion to ensure that instruments used for precision measurements are peri-
                    odically calibrated.
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Personal Property Management Policy	4831 -2/12/90
                    d. Maintenance of proper sales procedures to ensure the highest possible
                    return, if the recipient is authorized to sell the property.

                    e. Maintenance of financial control and accounting for all equipment in
                    their financial management system.

                    f. Maintenance of the identification of federally-furnished property.

                    10.3.2.  Records
                    Having purchased property with CERCLA funds, the recipient and the
                    recipient's contractor must:
                    • Maintain all records relating to the purchase of personal property for 10
                       years following the date of the final disposition of the property, or if the
                       Assistance Agreement is terminated maintain records for 10 years after
                       official transfer or disposal of the property.
                    • Maintain all such records until any litigation, claim, appeal, or audit has
                       been resolved, even if this action began after the initial 10-year period.
                    • Allow any official EPA representative full access to all program-related
                       records as long as such records are retained.

                    10.3.3.  Inventory

                    10.3.3.1 Property Purchased with Assistance Agreement Funds
                    A physical inventory must be conducted by the recipient at least once
                    every two years for all equipment except that which is part of the in-place
                    remedy. The results shall be reconciled by the recipient with the property
                    records. The inventory records need not be submitted to EPA but must be
                    available to EPA upon request. In addition, an inventory report is  sub-
                    mitted to EPA when equipment is no longer needed for the project and
                    within 90 days of the end of the project period. This report must contain
                    the following information:
                    • Classification and value of remaining supplies.
                    • Description of all equipment purchased with CERCLA funds, including
                       its current condition.
                    • Verification of the current use and continued need for the equipment by
                       site and activity.

                    • Notification of any property which has been stolen or vandalized.

                    • A request for disposition instructions for any equipment no longer
                       needed on the project.
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                    10.3.3.2 Federally-Furnished Property
                    A physical inventory must be conducted annually on the anniversary date
                    of the award; within 90 days of the end of the project period; and when
                    the property is no longer needed. The inventory report shall be submitted
                    to the EPA Property Administrator designated in the Assistance Agree-
                    ment and shall include the description, decal number, and current condi-
                    tion of each item. The report shall also request disposition instructions for
                    property that is no longer required.

                    10.4.    Disposal	

                    10.4.1.  CERCLA-Funded Property
                    When property, funded totally or in part with Superfund funds, is no
                    longer required to support the Superfund Assistance Agreement, or at the
                    end of the project period, whichever is earlier, disposition must be made
                    on the property. The recipient must submit an inventory report to EPA
                    even if EPA has stopped supporting the project. The inventory report shall
                    describe the present condition of each item and the cost of removing the
                    item from the project site. A request for disposition instructions shall also
                    be included. After reviewing the cost effectiveness of removing the
                    property, the Award Official shall instruct the recipient to take one of the
                    following actions:

                    10.4.1.1 Supplies
                    Supplies having an aggregate fair market value of $5,000 or more shall be:
                    • Transferred to another CERCLA site and the original site will be reim-
                      bursed for the fair market value of the property.
                    • Retained by the recipient, if both the recipient and EPA concur and the
                      Trust Fund is reimbursed by the recipient for EPA's interest in the cur-
                      rent fair market value.
                    • Sold and any proceeds reimbursed to the Trust Fund at the property's
                      current fair market value.
                    If supplies remaining at the end of the project period have an aggregate
                    fair market value of less than $5,000, the recipient may keep the supplies
                    to use on another CERCLA site. If the recipient cannot use the supplies on
                    another CERCLA site,  then EPA will relinquish its interest in the property
                    and the Award Official shall instruct the recipient to keep or sell the
                    property without reimbursing the Trust Fund.
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Personal Property Management Policy            	4831 -2/12/90
                    10.4.1.2 Equipment
                    If the equipment has a residual fair market value of less than $5,000, the
                    Award Official shall instruct the recipient to retain the equipment for use
                    on other CERCLA-funded activities. If the recipient cannot use the equip-
                    ment on another CERCLA site, the recipient may use the equipment on
                    other projects. However, EPA retains a financial interest in the equipment
                    and the recipient must reimburse the Trust Fund for EPA's vested interest
                    in the current fair market value at the time of final disposition. If the equip-
                    ment has a residual fair market value of $5,000 or more, the Award Offi-
                    cial shall instruct the recipient to take one of the following actions:
                    • Use the equipment on another CERCLA site and reimburse the original
                      site for the fair market value of the equipment.
                    • Keep the equipment, if both the recipient and EPA concur and reim-
                      ourst .  Trust Fund for EPA's interest in the current fair market value
                      of the equipment.
                    • Sell the equipment and reimburse the Trust Fund for EPA's interest in
                      the current fair market value of the equipment, less any reasonable sell-
                      ing expenses.
                    • Return the equipment to EPA and, if applicable, EPA will reimburse
                      the recipient for the recipient's proportionate share of the current fair
                      market value.

                    10.4.2. Federally-Furnished Property
                    When federally-furnished property is no longer needed, or at the end of
                    the project, the recipient must inform EPA that the property is available
                    for return to the federal Government. The Property Administrator will
                    send disposition instructions to the recipient.

11.     Technology Transfer Act	

                    [Reserved]

12.     LUST Trust Fund	

                    [Reserved]
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Personal Property Management Policy
          Interagency Agreement  Property
                                   Chapter 4
        Purpose
                  This chapter prescribes polices for the management and control of per-
                  sonal property provided to or acquired under Interagency Agreements
                  (IAG) between the Environmental Protection Agency (EPA) and other
                  federal agencies.

        Scope	

                  The polices set forth in this chapter apply to all EPA organizations that
                  award or administer "Funds-Out" (Disbursement) Interagency Agreements.

                  All personal property funded or furnished to EPA under a "Funds-In"
                  (Reimbursement) Interagency Agreement will be subject to the manage-
                  ment and control outlined in chapter 2, in-house property.

        Authority    	  	
                  The Federal Property Management Regulations (FPMR), 41 Code of
                  Federal Regulations (CFR) Chapter 101
        Reference
                  The following sources are referenced for supplementary information on
                  policies cited in this chapter.
                  • The Interagency Agreement Policy and Procedures Compendium,
                    Grants Administration Division (GAD)
                  • The Assistance Administration Manual, 5700, Chapter 51

                  • Facilities and Support Services (FSS) Manual, 4800

        Responsibilities	

                  5.1.     EPA Project Officer	
                  As the designated technical representative, the Project Officer for the Inter-
                  agency Agreement shall:
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Personal Property Management Policy	4831 -2/12/90
                    • Ensure incorporation of applicable policies concerning acquisition,
                      retention, tide, and disposition of property in the Interagency Agree-
                      ment. This shall include the designation of a Property Administrator as
                      a special condition in the Agreement when EPA retains the title for
                      property. The responsibility for these functions is shared with the
                      Grants Administration Division when the IAG originates at Head-
                      quarters and the Regional Assistance Administration Unit (RAAU) for
                      lAGs that originate in the regions.
                    • Review property requirements submitted by the other agency and
                      ensure that a cost comparison (lease versus purchase analysis) is
                      prepared prior to the purchase of any property in excess of $1,000.

                    • Recommend disposition to EPA Action Official on property for which
                      EPA retains title at IAG close-out or when property is no longer needed
                      for the performance of the LAG.

                    5.2.     EPA Property Administrator	
                    Coordinates with the Project Officer, GAD, and RAAU to ensure that
                    property accountability, maintenance of the official records of all proper-
                    ty, final disposition, and transfer of title are complete for property in
                    which EPA retains title.

                    5.3.     EPA Financial Management Officer, Cincinnati	
                    Provides guidance on financial management policy, procedures, and any
                    interagency financial transactions resulting from property disposition.

                    5.4.     EPA Action Official	
                    Signs the Interagency Agreement for EPA and is the final approval
                    authority for acquisition and disposition of IAG property. At the regional
                    level the Action Official is the Regional Administrator or his designee and
                    must be above the Division Director level. At  Headquarters the Action
                    Official is the Chief, Grants Information and Analysis Branch, Grants
                    Administration Division.

                    5.5.     GAD or RAAU	
                    • Reviews Agreements to ensure compliance  with legal and administra-
                      tive requirements.

                    • Provides a copy of the Agreement and Amendment(s) that involve
                      property in which EPA elects to retain tide  to the appropriate Property
                      Administrator.
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6.       Policy	

                    Personal property, provided to or acquired by the other agency with EPA
                    funds, must be authorized in the Agreement. The Agreement must specify
                    if the title is to be vested with EPA or the other agency. Conditions
                    governing jointly-funded property will be mutually determined by EPA
                    and the other agency. In the event property title remains with EPA, a
                    Property Administrator will be designated as a special condition in the
                    Agreement to administer the property and the requirements for approval,
                    title, control, and disposal described in sections 6.1 through 6.4 shall be
                    followed.

                    6.1.    Approval	
                    The acquisition of property may be authorized if it is in the best interest of
                    the Government. A cost comparison analysis will determine the most
                    cost-effective method of acquisition. These methods include:
                    • Government-furnished property
                    • Usage fee
                    • Lease
                    • Contractor services

                    • Contractor-acquired property
                    • Property purchased with IAG funds

                    6.1.1.    Cost Comparison

                    6.1.1.1   Government-Furnished Property
                    EPA-owned property, with the exception of motor vehicles, may be
                    provided to another federal agency for use under an LAG. Generally the
                    title to the property will be transferred to that agency with no further
                    accountability or obligation to EPA unless the exceptions listed below are
                    met:
                    • The property was originally acquired through the Superfund appropria-
                      tion, in whole or in part, or

                    • The EPA Project Officer makes the determination that it is in the best
                      interest of EPA to retain title of the property.

                    In these cases the property will be loaned by EPA to the other federal
                    agency. At the end of the project period, or when the property is no longer
                    needed for the project, the property must be returned to EPA. The Project
                    Officer must coordinate a loan request by writing a memorandum to the
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Personal Property Management Policy	  4831-2/12/90
                    Action Official through the Property Administrator. A copy shall be for-
                    warded to GAD or RAAU. The list of Government-furnished property
                    shall be incorporated into the IAG and shall include the following:
                    • A full description of the property, including the manufacturer's name,
                      serial number, and model number.
                    • EPA decal number, present condition of the property, and the acquisi-
                      tion cost.
                    • The planned duration of the loan.

                    • Specific statement as to who is responsible for maintenance, repair,
                      transportation, and restoration costs.

                    6.1.1.2  Usage Fee
                    An agency operating under an Interagency Agreement may purchase
                    equipment using the agency's own funds and charge EPA a fee for the
                    time the equipment is used on the project. The fee will be based upon a
                    calculated usage charge rate (e.g., $/hour of operation or $/sample). Once
                    the charge rate is agreed upon by both parties, this rate can be applied in
                    every project for which the specific piece of equipment will be used.
                    Usage rates should be reviewed periodically by the federal agency to
                    ensure that total charges for an item do not exceed the costs actually
                    incurred.

                    6.1.1.3  Lease
                    If a piece of equipment is to be leased through an Interagency Agreement,
                    a lease versus purchase analysis must be conducted to ensure that the leas-
                    ing arrangement is the most cost-effective way to achieve the desired
                    results. The leasing arrangement must be approved by the Action Official.
                    The Property Administrator shall be notified at the termination of a lease
                    agreement before items are returned to  assure that EPA is taking advan-
                    tage of any lease credits. The EPA Property Administrator shall determine
                    if the option to purchase the property should be exercised before the item
                    is returned to the vendor.

                    6.1.1.4  Contractor Services
                    As an alternative to purchasing or leasing property, and a contractor has
                    the appropriate equipment, the contractor's services may be procured.
                    This procurement method must be used for Superfund lAGs when trans-
                    portable or mobile treatment systems (e.g., thermal destruction, biological,
                    or physical-chemical units, etc.) are required during remedial action.
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                    6.1.1.5  Contractor-Acquired Property
                    If authorized to do so in the IAG, a contractor may purchase property with
                    EPA funds. The contract must identify whether the title will be vested
                    with EPA, the other federal agency, or the contractor.

                    6.1.1.6  Property Purchased with IAG Funds
                    Purchase of equipment is an allowable cost under an Interagency Agree-
                    ment if the purchase is the most cost-effective way of obtaining the equip-
                    ment. A justification for purchase of the equipment, including a lease
                    versus purchase analysis must be prepared and submitted to the Decision
                    and Action Official prior to purchase. All equipment purchases must be
                    included in the signed Interagency Agreement or in modifications or
                    amendments thereto. The justification must include:
                    • The specific program and project for which the property is required and
                      the EPA cost account number which will be used for the acquisition.
                    • The type, quantity, and estimated costs (including any transportation or
                      installation costs) of each item of property required.
                    • Why the property is necessary for project performance.
                    • Why it is in the best interest of EPA to provide funds to purchase the
                      property rather than to require the other agency to provide the property
                      at no direct cost to the agreement.
                    • The location at which  the property will be used, and the agency's per-
                      sonnel responsible for acquisition and management of the property.
                    • For property to be acquired by the other agency at EPA expense, a cer-
                      tification that no in-house excess property is  available and the concur-
                      rence of the local accountable area property office.
                    • For equipment to be acquired by the other agency at EPA expense a
                      lease versus purchase analysis.

                    6.2.     Title	

                    6.2.1.   Non-Superfund Property

                    6.2.1.1  Property Acquired with IAG Funds
                    Non-Superfund property authorized for acquisition by the other agency
                    under the terms of the IAG will be titled in that agency and subject to the
                    property management procedures of that agency with no further account-
                    ability or obligation to EPA, unless otherwise stated in the IAG.
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Personal Property Management Policy                                     	4831-2/12/90
                    6.2.1.2  Government-Furnished Property
                    Non-Superfund property that is furnished to the other agency by EPA
                    under the terms of the IAG will be transferred to the other agency in
                    accordance with the procedures of the General Services Administration
                    (GSA), titled in that agency, and subject to the property management pro-
                    cedures of that agency with no further accountability to EPA.

                    6.2.2.   Superfund Property
                    Title to property acquired totally or in part with funds of the Trust Fund,
                    remains vested with EPA. The only exception to this policy is for equip-
                    ment comprising part of the remedial or response action (such as pond
                    liners or pipes for a water treatment system), and necessary for the con-
                    tinued functioning or the response action. This property loses its identity
                    as Government personal property at the time of installation. EPA shall
                    relinquish its interest in the property at the time of installation and no reim-
                    bursement will be required for the Trust Fund.

                    6.2.3.   Contractor-Acquired Property
                    EPA retains the right to title for all personal property acquired under
                    direct reimbursement by a Superfund contractor working for another
                    federal agency under an Interagency Agreement. All lAGs and contracts
                    issued under LAGs should reflect this policy.

                    6.2.4.   Right to Retain Title
                    EPA may reserve the right to retain title to the property at the end of the
                    project period when the property is acquired entirely with EPA funds, had
                    an original acquisition cost of $1,000 or more, and was identified as a spe-
                    cial condition in the LAG. EPA always retains title to property acquired
                    using Superfund funding. The EPA Action Official will notify the other
                    agency of this intention within 120 days after completion of the project.

                    6.3.    Control	
                    The other federal agency has no obligation to follow EPA property
                    management standards unless  they fall in one of the exceptions listed
                    below.
                    • The LAG is supporting a Superfund project, or
                    • EPA has retained the right to title for property acquired with LAG funds.

                    If one of the exceptions is met, the other federal agency may use its own
                    property control procedures if they meet the following minimum stand-
                    ards set forth below as well as the inventory criteria found in section 6.4.
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                    6.3.1.   Accou ntabi I ity Criteria
                    The level of control of personal property shall be exercised according to
                    the categories listed below.

                    6.3.1.1  Expendable Property
                    Expendables and low-value items are subject to accounting and supply
                    record controls until issued to the consumer. It is the responsibility of the
                    employee and his/her supervisor to ensure that the property is used for
                    official purposes.

                    6.3.1.2  Nonexpendable Property
                    a. Accountable property consists of nonexpendable personal property with
                    an acquisition cost of $1,000 or more and sensitive items with an acquisi-
                    tion cost of $300 or more. Upon receipt, all accountable property shall be
                    identified and recorded in the agency's property management system. All
                    property purchased with Superfund funds will be identified by affixing a
                    "Superfund unique" decal to the property.

                    b. Nonexpendable personal property which does not meet the account-
                    ability criteria shall be controlled at the point of issuance. No formal
                    accountability shall be maintained after issue, but the replacement shall be
                    regulated by the supervisor to ensure that requests for replacement items
                    are essential for the successful completion of the project. In addition, the
                    supervisor shall establish adequate safeguards and controls to ensure  that
                    the property is acquired for official use only. All property purchased with
                    Superfund funds will be identified by affixing a "Superfund unique" decal
                    to the property.

                    6.3.1.3  Component Parts
                    Component parts shall not be classified as accountable property. If the
                    price of the component part is $1,000 or greater, the component shall be
                    added to the original acquisition cost of the accountable property to which
                    the component is either installed or affixed. To be a component, the part
                    must be nonexpendable, be integral to the functioning of the main unit,
                    and not have the capacity to stand alone. Examples include: a memory
                    board for a computer or a probe for a photoionizer.

                    6.3.1.4  Leased Property
                    Property leased with IAG funds shall be controlled and maintained in the
                    other agency's property management system.

                    6.3.2.   Property Management Reviews
                    Section 111 of the Superfund Amendments and Reauthorization Act
                    requires all Offices of the Inspector General (OIG) of agencies having
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Personal Property Management Policy     	4831-2/12/90
                    authority under the Act to audit the obligations and disbursements made
                    against the Trust Fund for the prior fiscal year. In response to this
                    provision, federal OIGs and other audit groups perform audits of costs
                    incurred by their respective agencies under lAGs for audit Suggestions or
                    requests for audit of specific lAGs can be made through the EPA-OIG.

                    6.4.     Inventory	
                    An annual inventory of all property acquired by or furnished to another
                    federal agency under an IAG is required when title to that property is
                    retained by EPA. A report of this inventory will be sent to the EPA
                    Property Administrator.

                    In addition, a final inventory shall be submitted to the Property Admin-
                    istrator within 30 days of project completion. The inventory report shall
                    describe the present condition of each item and request disposition
                    instructions.

                    6.5.     Disposal	
                    Disposition procedures prescribed in this section apply only to property
                    which EPA has retained the right to title.

                    6.5.1.   Non-Superfund Property
                    Disposal of property provided to or acquired through the IAG with non-
                    Superfund funds to which EPA retains title will be made in accordance
                    with the Federal Property Management Regulations, Chapter 101, Title
                    41, SubchapterH. Conditions governing jointly-funded equipment shall,
                    however, be mutually determined by EPA and the other agency.

                    6.5.2.   Superfund Property
                    When personal property, funded totally or in part with Superfund funds, is
                    no longer required to support the Superfund program, disposition must be
                    made on the property. Disposition in this context includes the transfer or
                    sale to or by a federal agency under an IAG.

                    EPA retains its financial investment in property purchased with Superfund
                    funds until final disposition of the property. At that time, reimbursement
                    will be made to the Trust Fund at the item's fair market value. The Prop-
                    erty Administrator will direct the Agency's disposition of the property to
                    ensure that the Trust Fund is reimbursed as required and the specific site
                    or activity account is credited according to the paragraph listed below.
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                    6.5.2.1  Property Greater than $1,000
                    For expendable property having an aggregate fair market value of $1,000
                    or more and for accountable property, the EPA Property Administrator
                    will direct the other agency to perform one of the following actions:
                    • Transfer to another Interagency Agreement supporting Superfund.
                    • Transfer to an EPA in-house activity supporting Superfund.
                    • Use on other federal projects.
                    • Keep the property.
                    • Sell the property.

                    • Return the property to EPA where the procedures of chapter 2, in-house
                       property, will apply.

                    In each instance, the site or activity account losing the property will be
                    credited and the receiving account charged. If the property is no longer
                    used for a Superfund activity, the Trust Fund will be reimbursed its
                    proportionate share at the current fair market value of the property.

                    6.5.2.2  Property Less than $1,000
                    For all nonexpendable personal property falling below the accountability
                    threshold, reimbursement to the Trust Fund shall take place at the time of
                    sale. The property may be used by other functions until that time. If an
                    item is funded partially by Superfund funds, all of the proceeds from the
                    sale will be reimbursed to the Trust Fund (see general policy, chapter 1,
                    section 6.3.2.2).

                    If expendable property remaining at the end of the project period has an
                    aggregate fair market value of less than $1,000, EPA  shall relinquish its
                    interest in the property and the Property Administrator will instruct the
                    other agency to keep the property without reimbursing the Trust Fund.

                    6.5.2.3  Personal Property Comprising Part of a Superfund Action
                    Personal property comprising part of a Superfund remedial or removal
                    action (such as pond liners or pipes for a water treatment system) and
                    necessary for the continued functioning of the response action, loses its
                    character as Government personal property. EPA will relinquish its inter-
                    est in the property and no reimbursement to the Trust Fund is required.

                    Such property is removed from the Personal Property Accountability Sys-
                    tem, if so controlled, upon certification by the EPA Project Officer and
                    concurrence by his/her supervisor that the property is being left in place as
                    part of the Superfund remedy.
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Personal Property Management Policy	4831 -2/12/90
                    There may be other property which is incidental to, but not necessary for,
                    the continued operation of the response action. In accordance with the
                    provisions of the 41 CFR 101-45.9, these items may be left in place if
                    required by health, safety, or security considerations. These items may
                    also be abandoned if the value of the property is so little or the cost of its
                    care and handling so great that retention for sale is clearly not economical.

                    6.5.3.    Contractor-Acquired Property
                    If the property is acquired by a contractor through a contract with the
                    other federal agency using EPA funds and the property is titled to the
                    other federal agency or EPA, the disposition procedures and Trust Fund
                    reimbursement requirements set forth in this section apply.
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                                               Personal Property Management Policy
                        Contract Property
                                     Chapter 5
1.      Purpose
                   This chapter establishes policies for the management and control of
                   Government property provided to or acquired by Environmental Protec-
                   tion Agency (EPA) contractors.
2.
Scope
                   The policies set forth in this chapter apply to all EPA organizations that
                   sponsor, award, or administer EPA contracts; as well as those organiza-
                   tions that are provided Government property or acquire property through
                   EPA contracts. The reader should consult the Federal Acquisition Regula-
                   tion (FAR) Part 45 for the complete regulations governing Government
                   property used by contractors. Further, 40 Code of Federal Regulations
                   (CFR) 35.6815 (c) governs personal property requirements pursuant to
                   Superfund State Contracts.

3.      Authority	

                   The policies contained in this chapter are governed by the following
                   regulations:
                   • The Federal Acquisition Regulation, 48 CFR Chapter 1
                   • The Federal Information Resources Management Regulation (FIRMR),
                     41 CFR Chapter 201

                   • The Federal Property Management Regulations (FPMR), 41 CFR
                     Chapter 101
                     Environmental Protection Agency Regulations, 48 CFR Chapter 15
4.
Reference
                   The following sources are referenced for supplementary information on
                   policies cited in this chapter.
                   • The Contracts Management Manual, 1900

                   • Contractor's Guide for Control of Government Property

                   • Project Officers' Training Course
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Personal Property Management Policy	4831 -2/12/90


                    • Contract Administration Training Course Manual
                    • The Facilities and Support Services (FSS) Manual, 4830, PMR 2-29

5.       Responsibilities	

                    5.1.      Contractor	
                    • Maintains a system to adequately control, preserve, and protect all
                      Government property.
                    • Conducts physical inventories as required and submits inventory
                      reports to the Contract Property Administrator.
                    • Reports property acquisitions, thefts, utilization, and property no longer
                      required in the performance of the contract to the Contract Property
                      Administrator.

                    5.2.      Project Officer	
                    As the technical representative designated in the contract, the Project
                    Officer:
                    • Recommends whether or not Government property is to be offered to
                      contractors prior to issuance of the solicitation and recommends the
                      source of property (48 CFR 45.303).

                    • Coordinates with the Contract Property Administrator and the Contract-
                      ing Officer on all situations relating to Government property transac-
                      tions when Government property will be provided to contractors.
                    • Prepares Property Justifications for the furnishing of Government
                      property and contractor-acquired property and obtains all required
                      approvals.

                    5.3.      Contract Property Administrator	
                    As the designated representative of the Contracting Officer, the Contract
                    Property Administrator:
                    • Monitors compliance with regulations and contract requirements per-
                      taining to Government property in the possession of the contractor.
                    • Evaluates, approves, and monitors the contractors' property control sys-
                      tems through compliance reviews.

                    • Coordinates with the Project Officer and Contracting Officer to develop
                      property requirements prior to contract award, and reviews justification
                      for lease or purchase to ensure the most cost-effective acquisition, or to
                      determine if excess property is available.
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                    • Requests inventories of Government property in the possession of con-
                       tractors and coordinates with the contractor, Project Officer, and
                       Contracting Officer to resolve any discrepancies.
                    • Coordinates with the Project Officer to determine program needs for
                       property reported as residual to a contract.
                    • Issues disposition instructions for property reported as no longer
                       required for contract performance; reports and coordinates the disposi-
                       tion with the General Services Administration (GSA) when required.
                    • Prepares recommendations for Contracting Officers on which contracts
                       the Government should maintain the official Government property
                       records.
                    • Certifies that a contract has been cleared of all outstanding property
                       issues and submits certification to appropriate Contract Administrators.

                    5.4.     Contracting Officer	
                    • Grants approval to provide Government property to contractors
                       and/or authorizes the use of contract funds for the acquisition of proper-
                       ty by the contractor and ensures that requests for contractor-acquired
                       property have been reviewed and screened by the Contract Property
                       Administrator.
                    • Ensures that authorized property is described in the contract or sub-
                       sequent modification and that the Contract Property Administration
                       Office is designated in all appropriate contracts.
                    • Ensures compliance with the terms of the contract and initiates follow-
                       up action if the contractor does not remedy deficiencies.
                    • Makes determination of liability for instances of loss, damage, or
                       destruction of Government property, and authorizes the abandonment
                       of property as appropriate.
                    • Notifies the Contract Property Administrator of pre-proposal and post-
                       award conferences whenever major property issues are involved.
                     • Includes criteria relating to the effectiveness of the contractors' Govern-
                       ment property management in the award fee plan of appropriate con-
                       tracts.

                     5.5.     Financial Accounting Operations Officers	
                     Provide guidance on financial management policy, procedures, and any
                     financial transactions.
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Personal Property Management Policy                  	      	4831 -2/12/90
                    5.6.      Financial Accountlng-RTP	
                    Ensures that the appropriate Contract Property Administrator is furnished
                    with all reimbursement vouchers.

6.       Policy	

                    In accordance with 48 CFR 45.102, contractors shall provide all resources
                    necessary to complete the contract. Circumstances may arise, however,
                    when it is in the best interest of the Government to provide Government
                    property to the contractor or to permit the contractor to acquire property at
                    Government expense. When this is the case, the use of accountable per-
                    sonal property provided to or acquired by an EPA contractor must be
                    approved by the Contracting Officer. The contract shall require that
                    Government property is used only in connection with the contract under
                    which the property is provided, unless other use is authorized in writing
                    by the Contracting Officer. The objectives of the EPA Property Manage-
                    ment program are to:
                    • Protect the interests of the funding program.
                    • Meet the data management requirements of the Government.

                    • Protect the interests of the Government through a comprehensive
                      property administration program.

                    Management and control shall  be accomplished by the processes stated
                    below.

                    6.1.      Approval	
                    If Government property is required in the performance of the contract,
                    every effort must be made to determine the most cost-effective method of
                    providing the property. Alternative methods shall be examined before pur-
                    chase will be authorized. These alternatives include: use of a contractor's
                    own property; property no longer required on another EPA contract;
                    availability from excess; lease/purchase or rental.

                    6.1.1.    Government-Furnished Property
                    Property owned by the Agency or property which is excess to the needs of
                    the Agency, when justified, may be furnished to a contractor for work
                    under an EPA contract. The use of all accountable property shall be
                    authorized in the contract. No accountable property shall be furnished to a
                    contractor without the Contracting Officer's approval.
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                    6.1.2.   Lease of Property
                    In accordance with 48 CFR 7.402, the lease of property may be approved
                    when it is demonstrated that it is in the best interest of the Government.
                    Leasing may be appropriate as an interim measure to satisfy the following:
                    • Use of property is required for immediate program needs or systems
                       goals.
                    • Circumstances do not support acquisition by purchase.
                    • Imminent technological improvements would render the property
                       obsolete.
                    Generally, a long-term lease should be avoided, but may be advantageous
                    if lease credits are accrued and an option to purchase or other favorable
                    terms are included.

                    6.1.3.   Purchase
                    The purchase of property may be approved by the Contracting Officer.
                    The purchase method should not routinely be ruled out in favor of leasing
                    merely because of the possibility that technological advances may render
                    the property obsolete.

                    6.1.4.   Cost Comparison
                    Purchase or lease of property should be analyzed, using the provisions out-
                    lined in 48 CFR 7.401, to determine the most cost-effective means of
                    obtaining property. The determination as to whether property is to be
                    acquired by purchase or lease shall be made in each case only after com-
                    parison of the relative costs of the property. The method selected shall be
                    that which offers the greatest advantage to the Government under the
                    circumstances applying to each situation with cost and other factors
                    considered.

                    6.1.5.   Justification
                    When recommending that Government property be provided to or
                    acquired by a contractor, a justification, including a lease versus purchase
                    analysis shall be prepared by the Project Officer. A Property Justification
                    will be prepared for the purchase of accountable property as well as lease
                    or rental that exceeds two months.

                    The requirements for preparing the  property justification are set forth in
                    Chapter 5 of the Contracts Management Manual. In addition to the ele-
                    ments required in the Contracts Management Manual, the Project Officer
                    is required to identify the EPA account number which will be used for
                    acquisition.
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Personal Property Management Policy	4831 -2/12/90
                    The justification must be approved by the Division Director or by an
                    equivalent level of the program management and sent to the appropriate
                    Contract Property Administrator for concurrence. The justification will be
                    returned to the Project Officer to be forwarded to the EPA Contracting
                    Officer for approval.

                    Prior approvals are required for telecommunications equipment and may
                    be obtained for Headquarters from the National Data Processing Division
                    at the Washington Information Center, or for the Regions at Research
                    Triangle Park, NC. Requests for ADP equipment must receive approval
                    by the National Data Processing Division, Research Triangle Park, NC.

                    6.1.6.    Responsibility

                    6.1.6.1  Project Officer
                    • Determines whether property is necessary to perform the scope of work
                      under the contract; and recommends whether the property is to be
                      provided by the contractor, furnished from in-house inventories, or
                      acquired with contract funds; assures that the inventory of property to
                      be offered to the contractor included in the solicitation is accurate and
                      current.
                    • Coordinates with the Property Administrator to determine if any proper-
                      ty requirements can be satisfied by in-house excess pool or GSA excess.
                    • Coordinates with the appropriate Contract Property Administrator on
                      the condition of property reported on a residual inventory and deter-
                      mines if any items should be replaced for a follow-on contract.
                    • Prepares the Property Justification for providing Government property
                      and obtains all required approvals.
                    • Prepares Property Justifications for additional accountable property
                      required after contract award.

                    6.1.6.2  Contract Property Administrator
                    • Reviews Property Justifications to ensure the most cost effective means
                      of acquisition and to determine if in-house or excess property is
                       available.
                    • Coordinates with the Project Officer and Contracting Officer on the con-
                       dition of property reported on a residual inventory.
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                    6.1.6.3  Contracting Officer
                    • Grants approval to provide Government property to contractors and/or
                      authorizes the use of contract funds for the acquisition of property by
                      the contractor.
                    • Lists accountable Government-furnished or contractor-acquired prop-
                      erty by Agency decal number, item description, serial number, and
                      manufacturer's name, model number, acquisition date, actual, or
                      proposed cost (if available) in the contract.

                    6.2.     Title	
                    In accordance with 48 CFR 45.502, title to personal property acquired
                    with contract funds vests with the Government subject to the exceptions
                    set forth in paragraph 6.2.1 below or as indicated in the contract.

                    6.2.1.   Nonprofits and Institutions of Higher Education
                    The following policies apply to title of property purchased by contract
                    funds under a nonprofit organization or institution of higher education.
                    For further information see 48 CFR 35.014.

                    6.2.1.1  Property Costing less than $5,000
                    If institutions of higher education or other nonprofit organizations
                    operated for scientific or applied research obtain the Contracting Officer's
                    prior approval, the title to property with a unit acquisition cost of less than
                    $5,000 acquired with research funds, shall vest with the contractor.

                    6.2.1.2  Property Costing more than $5,000
                    If equipment with a unit acquisition cost of $5,000 or more is acquired by
                    institutions of higher education or nonprofit organizations with research
                    funds, provisions may be made in the contract that title vests in the:
                    • Contractor upon acquisition without further obligation to the
                      Government.
                    • Contractor, subject to the Government's right to transfer title to the
                      Government or a third party within 12 months after the contract's com-
                      pletion or termination.

                    • Government.

                    6.2.2.   Government-Furnished Property
                    Title to all Government-furnished property shall remain with the
                    Government.
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Personal Property Management Policy     	       	     4831 -2/12/90
                    6.2.3.    Responsibility

                    6.2.3.1   Project Officer
                    Recommends whether tide to property acquired under a contract with non-
                    profit organizations or institutions of higher education, remains with the
                    contractor after contract award by submitting a memorandum request to
                    the Contracting Officer any time during the contract period or within 12
                    months after contract completion or termination. A copy is forwarded to
                    the Contract Property Administrator.

                    6.2.3.2   Contracting Officer
                    Receives Project Officer recommendation and makes final decision of
                    vesting tide to the property.

                    6.2.3.3   Contract Property Administrator
                    Upon being notified of the Contracting Officer's decision to retain title of
                    property acquired under a contract with nonprofit organizations or institu-
                    tions of higher education, the Contract Property Administrator furnishes
                    the contractor with instructions for reporting the acquisition and control
                    procedures (see section 6.3).

                    6.3.      Control	
                    In accordance with 48 CFR 45.103 and 48 CFR 45.502, contractors are
                    responsible and accountable for all Government property in their
                    possession. This includes property furnished under the contract and in the
                    possession or control of a subcontractor. Property control systems,
                    accountability criteria, records, reporting requirements, and compliance
                    reviews shall be used to monitor and control property in the possession of
                    contractors.

                    a. On-site Contractors

                    For shared use of Government property on-site at an EPA facility, the
                    decision will be made on a case-by-case basis as to whether responsibility
                    for the property will be assigned to the contractor under the contract.

                    b. Certain Nonprofit Organizations

                    Certain nonprofit organizations and institutions of higher education
                    described in paragraph 6.2.1 above have no obligation to follow EPA
                    property management requirements unless they fall in one of the excep-
                    tions in  the following list:
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                    • The contract is supporting a Superfund project
                    • EPA has retained title
                    • Government-furnished equipment is being used on the project
                    If one of the exceptions is met, contractors are subject to the property con-
                    trol procedures described in this section.

                    6.3.1.   Property Control System
                    If Government property is authorized in the contract, the Contract Prop-
                    erty Administrator shall request a copy of the contractor's property control
                    system (48 CFR 45.104).

                    When the contractor's property control system has previously been
                    approved by other Government agencies or departments, a copy of the
                    approval should be submitted by the contractor to the Contract Property
                    Administrator along with the system. The Contract Property Admin-
                    istrator will review the property control system to determine if the EPA
                    contract has unique property control requirements.

                    According to the provisions in 48 CFR 502,  the property control system
                    shall be in writing unless the Contract Property Administrator determines
                    that it is unnecessary. In such cases, the Property Administrator should
                    evaluate the adequacy of the contractor's system on the basis of the
                    contractor's explanation of control procedures and observation  of the
                    application. A brief description of the applicable procedures shall be
                    included in the contract property file. The contractor's signature shall be
                    obtained signifying his concurrence with the Contract Property
                    Administrator's written description.

                    The Contract Property Administrator sk.. Conduct a review of the system
                    to ensure that the contractor has adequate procedures to control, preserve,
                    protect, and maintain all Government property assigned under the con-
                    tract. Furthermore, the review shall determine if there are adequate proce-
                    dures for compliance with the FAR and other contract requirements (48
                    CFR 45.509-2).

                    An acceptable property control system should address the following ele-
                    ments to provide the basis for the Contract Property Administrator to
                    evaluate the adequacy of the system:

                    acquisition                       maintenance and calibration
                     receiving                          physical inventory
                     identification and records         subcontract administration
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Personal Property Management Policy	4831-2/12/90
                    storage and movement            reporting
                    property consumption            disposal
                    utilization                        contract completion or termination
                    6.3.1.1  System Approval
                    In accordance with 48 CFR 45.104, the Contract Property Administrator
                    shall prepare a written summary of the findings to support approval of the
                    contractor's property control system and shall notify the contractor of the
                    approval in writing.

                    6.3.1.2  Corrective Action
                    If the contractor's system is not adequate, the Contract Property Admin-
                    istrator shall follow the procedures outlined in 48 CFR 45.502 (e) by
                    preparing a summary of findings and a requirement for corrective action.
                    The Contract Property Administrator shall forward to the contractor a list-
                    ing of the deficiencies and request prompt correction. If the contractor
                    does not correct the deficiencies within a reasonable time, the Contracting
                    Officer shall be advised by memorandum. The memorandum shall include:
                    • Statement of the problem
                    • A summary of the contractor's system deficiencies
                    • The recommended corrective action

                    6.3.2.    Accountability Criteria
                    Control of Government property shall be exercised according to the
                    categories listed below.

                    6.3.2.1   Accountable Property
                    Nonexpendable personal property with an acquisition cost of $1,000 or
                    more and sensitive items with an acquisition cost of $300 or more shall be
                    classified as accountable property. These items shall be  affixed with an
                    EPA barcode decal. When a barcode decal cannot be affixed to an item
                    because of its composition, size, or location, the assigned decal number
                    shall be etched on the item. Such items include water or oil immersed
                    items.

                    Accountable property shall be identified and recorded in the contractor's
                    property management system. Upon receipt, these items shall be reported
                    to the appropriate Contract Property Administrator.

                    All items purchased in whole or in part with Superfund funds and inter-
                    mingled with non-Superfund property will be identified by affixing a
                    "Superfund unique" decal to the property.
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                    6.3.2.2  Nonaccountable Property and Supplies
                    In accordance with 48 CFR 45.505-3, supplies and items that fall below
                    the accountability threshold are subject to accounting and supply record
                    controls until issued to the consumer. It is the responsibility of the contrac-
                    tor to ensure the property is used for the completion of the contract work
                    for which the property was procured.

                    Nonexpendable items that fall below the threshold must be identifiable as
                    Government property. "Property  of U.S. Environmental Protection Agen-
                    cy" decals may be used for this purpose. Expendable and nonaccountable
                    property remaining at the end of the contract should be reported to the
                    Contract Property Administrator.

                    6.3.2.3  Component Parts
                    Component parts shall not be classified as accountable property. If the
                    price of the component part exceeds $1,000, the cost shall be added to the
                    original acquisition cost of the piece of accountable Government property
                    to which the component is either installed or affixed. Contractors shall
                    report the decal number of the major item. To be a component, the part
                    must be nonexpendable, have a life expectancy of one year or more, be
                    integral to the functioning of the  main unit, and not have the capacity to
                    stand alone. Examples include: a memory board for a computer or a probe
                    for a photoionizer.

                    6.3.2.4  Installed Property
                    Installed property consists of items of nonexpendable property which are
                    attached or installed to a non-Agency-owned facility. Installed property
                    maintains its identity as Government property in accordance with the
                    provisions of the contract. A contractor is responsible for this property
                    until final disposition instructions are issued by the Contract Property
                    Administrator.

                    6.3.2.5   Leased Property
                    Leased personal property shall be controlled and maintained in the
                    contractor's property management system. Any purchase credits should be
                    identified. Property obtained through a lease or rental agreement with a
                    duration of greater than two months and a value exceeding the account-
                     able threshold shall be reported to the Contract Property Administrator
                     upon inception and termination of the lease.

                     6.3.3.    Records
                     In accordance with provisions in 48 CFR 45.505, the contractor will main-
                     tain the official property records, unless the contract provides otherwise.
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Personal Property Management Policy
                      4831-2/12/90
                    The Contracting Officer, in consultation with the Contract Property
                    Administrator, will determine on a case-by-case basis whether the Govern-
                    ment will maintain the official property records. Having acquired property
                    under the contract, the contractor must maintain the following basic infor-
                    mation on each item.

                    a. Supplies and nonaccountable property
                    •  Item description
                    •  Quantity received
                    •  Quantity issued
                    •  Quantity on hand
                    •  Unit price
                    •  Unit of measure

                    b. Accountable property

                    •  EPA decal number
                    •  Item description
                    •  Manufacturer's name
                    •  Manufacturer's model number
                    •  Manufacturer's serial number
                    •  Acquisition date
                    •  Contract number

                    c. Leased property

                    •  EPA lease decal number
                    •  Acquisition value if purchased
                    •  Installation date
                    •  Monthly cost
                    •  Expiration date
                    •  Manufacturer's serial number
                    •  Contractor's current purchase
                      order number
• Contract number
• Location
• Disposition
• Posting reference
• Date of transaction
• Actual cost of item
• Associated decal number
• Account number
• Maintenance cost
• Current location
• Condition code
• Government-furnished or
  contractor-acquired
  Buy out price
  Credits accrued
  Account number
  Manufacturer's model number
  Manufacturer's name
  Item description
  Item category (word processor,
  ADP, printing, research, etc.)
                    Property leased with option to purchase, shall be reported by the contrac-
                    tor to the Contract Property Administrator 45 days prior to the termination
                    of the lease.
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                    6.3.4.   Reports
                    The reporting requirements described in this section apply to all contracts.

                    6.3.4.1  Acquisition
                    A "Report of Nonexpendable Government Property Acquired by Contrac-
                    tor," EPA Form 1730-1, must be prepared by the contractor and submitted
                    to the Contract Property Administrator upon receipt of accountable prop-
                    erty obtained through purchase or a lease/rental agreement exceeding two
                    months and acquired with contract funds. This report shall be prepared
                    and submitted regardless of whether the property was previously
                    authorized within the contract. The information reported shall include the
                    following:

                    • Item description                 •  Unit cost
                    • Manufacturer's serial number     •  Contract number
                    • Manufacturer's model number    •  Account number
                    • Manufacturer's name            •  Physical location of the item
                    • Acquisition date                 •  Acquisition authorization
                                                        reference (contract clause or
                                                        modification number)

                    If EPA personal property decal numbers have been issued to the contrac-
                    tor, the assigned number for each piece of accountable property should be
                    recorded.

                    Contractors should acknowledge receipt of accountable Government-fur-
                    nished equipment by sending a letter to the Contract Property Admin-
                    istrator. If the  contractor receives an EPA Form 1700-7, "Property Receipt
                    and Transfer Document," from the Contract Property Administrator or the
                    intramural Property Accountable Officer, receipt may be acknowledged
                    by  the contractor  signing the document and returning it to the Contract
                    Property Administrator in lieu of sending a letter.

                    6.3.4.2  Inventories
                    Start-up, annual, special, and final inventory requirements are addressed
                    in section 6.4.

                    6.3.4.3  Missing, Stolen, or Damaged
                    a. Contractor's report

                    A report of all cases of missing, stolen, or damaged Government property,
                    regardless of value, shall be submitted by the contractor to the Contract
                    Property Administrator as soon as the facts become known. This includes
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Personal Property Management Policy	4831 -2/12/90
                    all property in the possession of the contractor or in the control of a sub-
                    contractor (48 CFR 45.504).

                    The report shall include the following information:
                    • The contractor's name and the contract number.
                    • Description of items missing, stolen, damaged, or unreasonably con-
                      sumed to include where appropriate, the EPA decal number,
                      manufacturer's name, model and serial numbers, last known condition
                      code, acquisition date, and cost.
                    • Cost of property lost, damaged, destroyed, or unreasonably consumed,
                      and cost of repairs in instances of damages.
                    • Date, time (if pertinent), and cause or origin of the loss, damage,
                      destruction, or consumption.
                    • Known interests in any commingled property of which the Government
                      property lost, damaged, destroyed, or unreasonably consumed is (or
                      was) a part.
                    • Insurance, if any, covering the Government property and whether a
                      replacement item was purchased.
                    • Actions taken by the contractor to prevent further loss, damage, destruc-
                      tion, or unreasonable consumption and to prevent repetition of similar
                      incidents; and other facts or circumstances relevant to determination of
                      liability and responsibility for repair or replacement.
                    • Copies of law enforcement agency reports, if any.

                    b. Findings and Recommendations

                    The Contract Property  Administrator shall review the incident report and
                    furnish a copy to the Contracting Officer along with a report of con-
                    clusions and recommendations for the Contracting Officer for review and
                    determination. The report shall include:
                    • A statement of the facts.
                    • Recommendations as to the contractor's liability.
                    • Recommendations as to the action to be taken with regard to third party
                      liability, if appropriate.

                    •  Statement of adequacy of the contractor's property control system.
                    • Requirements  for disposition, repair, or replacement of the damaged
                      property, insurance information, and other pertinent comments.
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                    In accordance with 48 CFR 45.503, the Contracting Officer shall make the
                    determination on contractor liability. If the Contracting Officer relieves
                    the contractor of accountability, the Contract Property Administrator shall
                    notify the contractor in writing and shall enclose a copy of the Contracting
                    Officer's decision. If the Contracting Officer determines that the contrac-
                    tor is liable, the Contracting Officer will notify the contractor directly and
                    send a copy of the correspondence to the Contract Property Administrator.
                    Either action is sufficient documentation for the Contract Property Admin-
                    istrator to remove missing property from the official property records.

                    c. Contract Property Administrator's Report

                    The Contract Property Administrator may become aware of circumstances
                    through inventories, consumption reviews, or other actions that indicate
                    mishandling or abuse of Government property.

                    The Contract Property Administrator shall prepare a statement of the
                    items and the amount of loss involved, and shall request the Contracting
                    Officer to investigate the  situation.

                    6.3.4.4  Final Certification
                    Upon contract completion or termination, the contractor shall submit a
                    final inventory (paragraph 6.4.3). The following certification shall be
                    included:
                    • "I certify that except for items consumed in the performance of the con-
                       tract, this inventory includes all materials, supplies, and equipment fur-
                       nished by the Government or acquired by the contractor for the account
                       of the Government under contract number	."
                    • "I further certify that all property is in a state free from contamination
                       by any hazardous or toxic substances and requires no additional
                       cleanup or decontamination efforts."

                    6.3.4.5   Contamination
                    Contamination of personal property shall immediately be reported to the
                    Contract Property Administrator, Contracting Officer, and the Project
                    Officer.  The contractor may be required to decontaminate the items in
                    order that they may be used for future work under the contract, future con-
                    tracts, or to allow reassignment to other federal agencies. This policy shall
                    not apply when decontamination is included as standard operating proce-
                    dure in a Superfund site's Health and Safety Plan.

                     Any item of residual personal property that is contaminated must be noted
                     on the annual and/or final inventory if its decontamination is pending.
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Personal Property Management Policy	4831 -2/12/90
                    When decontamination is not cost-effective, the Contract Property
                    Administrator may recommend to the Contracting Officer that the item be
                    abandoned if the abandonment does not pose a threat to public health and
                    safety (see 6.5.2.8).

                    6.3.5.    Compliance Reviews
                    A review of a contractor's compliance with the Federal Acquisition
                    Regulation and EPA Property Management Regulations will be conducted
                    whenever conditions warrant. The review may take place at any
                    reasonable time during the contract performance, at contract completion
                    or termination, or at any time during the period the contractor is required
                    to retain records (48 CFR 45.511).

                    The compliance review may consist of a desk audit of contractor's records
                    or a site visit at a contractor's facility. The method chosen by the Contract
                    Property Administrator must be such that enables verification of the ade-
                    quacy of the contractor's property control system and should be consistent
                    with the value of the Government property involved.

                    Necessary tests shall be made and as each portion is analyzed, the accept-
                    ability of the procedures  shall be noted or commented upon as the basis
                    for preparation of the record of system evaluation.

                    The Contract Property Administrator shall prepare a written summary of
                    the findings to support approval of the system or the requirement for cor-
                    rective action. The summary  shall include:
                    • Introduction: contractor's name and address, period of review, and
                      types of property involved.
                    • Method used: explanation of methods used in performing the review.

                    • Conclusions: Conclusions reached. In the event of finding unsatisfac-
                      tory categories, the defects shall be identified.
                    • Action required: Actions necessary to correct unsatisfactory conditions.
                    The Contract Property Administrator shall forward to the contractor a list-
                    ing of the deficiencies found during the evaluation of the compliance
                    review with a request to correct the deficiencies. The contractor shall also
                    be advised that failure to correct the unsatisfactory conditions may result
                    in withdrawal of approval of the property control system by the Contract-
                    ing Officer. A copy shall be provided to the Contracting Officer.

                    In the case of disclosure  of unsatisfactory conditions, the Contract Prop-
                    erty Administrator shall follow-up to ascertain that corrective action is
                    taken. If the contractor fails to take corrective action within a reasonable
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                    time, the Contract Property Administrator shall notify the Contracting
                    Officer.

                    6.3.6.   Responsibility

                    6.3.6.1  Contractor
                    • Maintains a system to adequately control, preserve, protect, and main-
                       tain all government property.
                    • Submits a property control system for review and corrects all deficien-
                       cies within an agreed upon milestone schedule.
                    • Reports acquisitions of accountable property to the Contract Property
                       Administrator and maintains required records.
                    • Reports all cases of loss, damage, or destruction of property to the Con-
                       tract Property Administrator.
                    • Reports contamination of personal property.
                    • Submits final certification upon contract completion.

                    6.3.6.2  Contract Property Administrator
                    • Reviews and approves the contractor's property control system.
                    • Prepares a summary of findings and requirements for corrective action.
                    • Prepares a summary of findings for property reported as lost, damaged,
                       or destroyed by the contractor and prepares recommendations for the
                       Contracting Officer.
                    • Conducts compliance reviews, notes deficiencies, and requests correc-
                       tive action.

                    6.3.6.3  Contracting Officer
                    • Ensures compliance with the terms of the contract.
                    • Determines liability and action with regard to the loss, damage, or
                       destruction of Government property.

                    6.4.     Inventory	

                    6.4.1.   Start-Up Inventory
                    At the start of a contract, the contractor is required to conduct a physical
                    inventory of all Government property in the contractor's possession. This
                     shall include property leased or rented with contract funds. Property in the
                    possession of subcontractors should also be included. This inventory  shall
                    be submitted to the Contract Property Administrator with a condition code
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Personal Property Management Policy           	4831-2/12/90
                    of each item. If overages, shortages, or damages are discovered, the con-
                    tractor shall provide a statement of the condition and apparent cause as
                    described in 48 CFR 45.502. In the event the contractor has no property, a
                    letter certifying this will be submitted by the contractor to the Contract
                    Property Administrator.

                    The Contract Property Administrator shall reconcile the report with
                    property authorized in the contract or subsequent modifications and with
                    records of previous contracts and Agency property records. When the
                    Government maintains the official property records, all accountable
                    property shall be recorded on the Personal Property Accountability Sys-
                    tem (PPAS). Only the quantity of property actually received will be
                    recorded on the official records.

                    6.4.2.    Annual Inventory
                    A physical inventory will be conducted annually by the contractor on the
                    anniversary date of contract award unless otherwise approved by the Con-
                    tract Property Administrator. The inventory shall include all accountable
                    personal property provided or acquired under the terms of the contract. It
                    shall also include any property leased or rented with contract funds. This
                    includes property in the custody of subcontractors.

                    In accordance with 48 CFR 45.508, contractor personnel who perform the
                    physical inventory shall not be the same individuals who maintain the
                    property records or have custody of the property. If the contractor's opera-
                    tion is small, the Contract Property Administrator may grant a waiver
                    from this procedure. The contractor shall submit an inventory listing and
                    shall include a certification that all items are required for continued con-
                    tract performance and are free from contamination (48 CFR 45.102). Any
                    item not required for continued contract performance shall be identified
                    and reported as excess by the contractor.

                    The Contract Property Administrator shall take follow-up action on all dis-
                    crepancies reported by the contractor. This shall include informing the
                    Contracting Officer of any items reported as overages which have not
                    been authorized in the contract; as well as, preparing a summary of the cir-
                    cumstances surrounding items reported as shortages.

                    6.4.3.   Final Inventory
                    Immediately upon termination or completion of a contract, a final inven-
                    tory shall be performed by the contractor and submitted to the Contract
                    Property Administrator in accordance with the provisions of 48 CFR
                    45.508. The inventory will include all residual expendable and nonexpend-
                    able property, both government-furnished and contractor-acquired, and
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                    shall include property in the control of subcontractors. The final inventory
                    list will include nomenclature, quantity, model number, serial number,
                    EPA decal number (if applicable), manufacturer, unit cost, and condition
                    code. The contractor shall certify that except for the items consumed
                    during the contract period, the inventory includes all Government proper-
                    ty provided or acquired under the contract and all items are free from con-
                    tamination (see paragraph 6.3.4.4).

                    The Contract Property Administrator shall reconcile the inventory report
                    with the property authorized in the contract. Action shall be taken to
                    resolve all discrepancies including investigating the circumstances sur-
                    rounding any overages and shortages. This shall include preparing find-
                    ings and recommendations for the Contracting Officer for approval or
                    disapproval of property reported as overages (property not authorized in
                    the contract). In addition, the Contract Property Administrator shall fur-
                    nish the Contracting Officer with a copy of property reported as shortages
                    (see paragraph 6.3.4.3).

                    The Contract Property Administrator shall coordinate with the Project
                    Officer to determine the program office requirements for the reported
                    property and shall issue disposition instructions to the contractor (see sec-
                    tion 6.5). This shall be coordinated with the Contracting Officer.

                    6.4.4.    Responsibility

                    6.4.4.1  Contractor
                    • Establishes schedule for start-up, annual, special, and final inventories
                      with the approval of the Contract Property Administrator.
                    • Performs reconciliations of inventories and provides the Contract
                      Property Administrator with a list of overages and shortages and cir-
                      cumstances surrounding each.

                    6.4.4.2  Contract Property Administrator
                    • Reconciles inventories with property authorized in the contract and con-
                      ducts follow-up on all discrepancies.
                    • Records accountable property on the PPAS when the Government main-
                      tains the official records.

                    • Prepares findings for property reported as shortages and recommends
                      action to the  Contracting Officer and prepares recommendations for
                       approval or disapproval of overages on expired contracts.
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Personal Property Management Policy	4831-2/12/90
                    • Coordinates with the Project Officer to determine program needs for
                      property reported as residual on the final inventory.

                    6.4.4.3  Project Officer
                    • Prepares Property Justification for accountable property to be provided
                      to the contractor.
                    • Evaluates program requirements for property reported on final inven-
                      tories.

                    6.4.4.4  Contracting Officer
                    • Makes determination to disallow or grant approval for property pur-
                      chased without prior authorization.
                    • Determines the contractor's liability and action with regard to property
                      reported as lost, damaged, or destroyed.

                    6.5.     Disposal	
                    At the completion or termination of the contract or when property
                    becomes excess to the needs of the project, the contractor shall report
                    property, regardless of value, to the Contract Property Administrator (48
                    CFR 45.603 and 45.502). The Contract Property Administrator, in coor-
                    dination with the Project Officer and Contracting Officer, shall issue
                    disposition instructions by one of the following methods listed below in
                    order of priority.

                    To mitigate storage expense, contractor inventory shall be removed from
                    the contractor's premises as soon as possible. Contractors are not to pur-
                    chase, return to the supplier or to the Agency any item without the written
                    approval of the Contracting Officer (48 CFR 45.509).

                    6.5.1.   Certain Nonprofit Organizations
                    Disposal requirements do not apply to those nonprofit organizations or
                    institutions of higher education identified in paragraph  6.2.1  unless EPA
                    has exercised the right to take title. If the right to transfer title has been
                    exercised, the policies described in paragraph 6.5.2 "Non-Superfund
                    Property" or 6.5.3 "Superfund Property" apply.

                    6.5.2.   Non-Superfund Properly

                    6.5.2.1  Transfer to a Follow-On Contract
                    If the need for the reported property exists, the property may be trans-
                    ferred to a follow-on contract with recommendation of the Project Officer
                    and authorization of the Contracting Officer.
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                    6.5.2.2  Purchase or Retention at Cost
                    If the Agency does not have a requirement for the property, the Contract
                    Property Administrator shall encourage the purchase or the retention of
                    the property at cost by the prime contractor or subcontractor (see 48 CFR
                    45.605-1).

                    6.5.2.3  Return of Contractor-Acquired Property to Supplier
                    The Contract Property Administrator shall encourage contractors to return
                    contractor-acquired property to suppliers for full credit less either the
                    suppliers' normal restocking charge or 25% of the cost whichever is less
                    (see 48 CFR 45.605-2).

                    6.5.2.4  Return to EPA In-House
                    If there is a requirement for the property within the sponsoring program
                    area, the property may be transferred in-house. If there is no program
                    requirement for the property, the Contract Property Administrator shall
                    forward a copy to the program's Property Accountable Officer for circula-
                    tion within the Accountable Area.

                    If no requirement exists and the property is in condition code "7" or better,
                    the property shall be reported on a "Report of Excess Personal Property,"
                    SF-120, and forwarded to the EPA National Utilization Officer for further
                    use within the Agency.

                    6.5.2.5  Exchange/Sale
                    Personal property determined to be no longer required by the Agency and
                    reported to GSA on SF-120, "Report of Excess Personal Property" or
                    SF-126,  "Report of Personal Property for Sale," can be disposed of by
                    GSA through an exchange/sale transaction. The proceeds must  be used in
                    the current fiscal year or following the purchase of a similar item. The
                    proceeds will be deposited in  the Finance Office until a purchase is made.
                    The Contract Property Administrator will issue to the contractor final dis-
                    posal instructions when release of the item(s) is appropriate.

                    6.5.2.6  Limited Sales
                    Property determined to be no  longer required can be disposed of via
                    limited sales if it is considered nonreportdble to GSA (48 CFR 45.610-2
                    and 41 CFR 101-45.304). The Contract Property Administrator will for-
                    ward GSA Optional Form-15," Sale of Government Property" to the con-
                    tractor to post in three public  buildings for 15 days announcing the sale.
                    The highest bid will be accepted and the successful bidder will  be notified
                    by the designated EPA official of the award after the sealed bids are
                    opened.  After receipt of payment an Optional Form-16, "Sales Slip, Sale
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Personal Property Management Policy 	4831-2/12/90
                    of Government Property" will be issued and forwarded to the contractor to
                    secure the signature of the purchaser and authorize release of the property.
                    A copy of the complete transaction shall be forwarded to the Contract
                    Property Administrator.

                    6.5.2.7  Transfer to Another Federal Agency, Donation, or Sale
                    Serviceable or usable property included in the contractor's inventory that
                    is not transferred for use by one of the methods stated above shall be
                    reported to GS A for transfer to another federal agency (for the screening
                    process see 48 CFR 45.608). If there is no need for the property within
                    another federal agency, GS A shall advertise the property to state and other
                    organizations authorized for donation (see 48 CFR 45.609 for the screen-
                    ing process).

                    If there is no interest in the property, GS A shall sell the property or
                    release the property for limited sale by the Agency (see 41 CFR 101-45).
                    Proceeds of the sale will be credited to miscellaneous receipts of the
                    United States Treasury.

                    If property cannot be disposed of by GSA, the Contract Property Admin-
                    istrator can be authorized to dispose of the property via donation. Contrac-
                    tors are eligible for the donation if they  are institutions of higher education
                    or nonprofit organizations. If the contractor is a profit maker, the property
                    must be donated to an eligible third party. The Contract Property Admin-
                    istrator will issue written instructions to the  contractor releasing the
                    property.

                    6.5.2.8  Destruction or Abandonment
                    After every effort has been made to dispose of the property through the
                    above methods, the Contract Property Administrator may recommend that
                    the property be destroyed or abandoned (48 CFR 45.611). The Contract
                    Property Administrator shall determine and document in writing that:
                    • The property has no commercial value and no value to the Government.
                    • The estimated cost of continued care and handling exceeds the probable
                       sale price.
                    • Because of its nature the property constitutes a danger to the health,
                       safety, or welfare of the public.

                    After receiving the concurrence of GSA and the Contracting Officer, the
                    Contract Property Administrator may issue  instructions to destroy or aban-
                    don the property. Unless permitted by the contract,  no contractor inven-
                    tory shall be abandoned on the contractor's  premises without the
                    contractor's written consent (48 CFR 45.611).
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                    6.5.3.   Superfund Property
                    When property, funded totally or in part with Superfund funds, is no
                    longer required to support the Superfund program, disposition must be
                    made on the property. Also, upon completion or termination of a contract,
                    the contractor must submit a final inventory report that describes the
                    present condition of each item and request disposition instructions (see
                    paragraph 6.4.3). The inventory report must include equipment that is in-
                    stalled as part of a Superfund remedial or removal action. The contractor
                    will be responsible for decontamination of all personal property reported
                    and shall certify that the property is contamination-free. The Contract
                    Property Administrator will direct disposition of the property ensuring
                    that the Trust Fund is reimbursed as required and the specific site or
                    activity account is credited.

                    If the property is acquired totally or in part with funds of the Trust Fund
                    and has a residual value, the Contract Property Administrator will direct
                    the contractor to take one of the following actions (listed in order of
                    priority)  ensuring that the specific site or activity account is credited as
                    appropriate.

                    6.5.3.1  Transfer to a Follow-On Superfund Contract
                    If the need for the reported property exists, the property may be trans-
                    ferred to a follow-on contract.

                    6.5.3.2  Return the Property to an EPA In-House Superfund Activity
                    If there is no requirement for the property within the sponsoring program
                    area, the property may be transferred in-house. The property will first be
                    offered to Superfund activities within the program's Accountable Area.

                    If no requirement exists and the property is in condition code "7" or better,
                    (41 CFR 101-43.4801e) the property shall be reported on a "Report of
                    Excess Personal Property," SF-120, and reported for use to other Super-
                    fund activities within the Agency.

                    6.5.3.3  Purchase or Retention at Cost
                    If the Agency does not have a requirement for the property, the Contract
                    Property Administrator shall encourage the purchase or the retention of
                    the property at cost by the prime contractor or subcontractor crediting the
                    contract.

                    6.5.3.4   Return of Contractor-Acquired Property to Supplier
                    The Contract Property Administrator shall encourage contractors to return
                    contractor-acquired property to suppliers for full credit less either the
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Personal Property Management Policy	4831 -2/12/90
                    suppliers' normal restocking charge or 25 percent of the cost whichever is
                    less (see 48 CFR 45.605-2).

                    6.5.3.5  Transfer to Other Program Areas within the Agency
                    If no need exists for the property within the Superfund program activities,
                    the property will then be offered to other programs within the Agency. If
                    the original acquisition cost of the property is $1,000 or greater, the receiv-
                    ing program shall reimburse the Trust Fund at the current fair market
                    value.

                    Equipment with an acquisition cost of $1,000 or greater and originally
                    funded partially by Superfund funds will have the same percentage
                    applied for processing disposition. For example, the proceeds from the
                    sale of an item purchased with 50 percent Superfund, 50 percent
                    non-Superfund monies would be divided equally between the Trust Fund
                    ana misc	jieous receipts of the Treasury.

                    For nonexpendable personal property falling below the accountability
                    threshold, there is no reimbursement requirement at the time of transfer.

                    6.5.3.6  Transfer to another Federal Agency or Sale
                    Serviceable or usable property included in the contractor's inventory that
                    is not transferred for use by one of the methods stated above shall be
                    reported to GSA for transfer to another federal agency. The federal agency
                    desiring the property shall reimburse the Trust Fund at the property's cur-
                    rent fair market value.

                    If there is no interest in the property at the federal level, GSA may transfer
                    the property to a state agency only if the state reimburses the Trust Fund
                    at the item's fair market value. Property not transferred to a federal or
                    state agency, shall be reported to GSA sales or released to the Agency for
                    inclusion in a limited sale. Proceeds of the sale shall be reimbursed to the
                    Trust Fund. Any funds received from property disposed of by
                    exchange/sale transactions shall be reimbursed to the sponsoring program
                    or to the Trust Fund.

                    After all attempts have been made to dispose of the property by the
                    methods described above, the property may be donated with no reimburse-
                    ment to the Trust Fund. Procedures described above in paragraph 6.5.2.7,
                    "Transfer to Another Federal Agency, Donation, Sale" shall be followed.
                    The contractor should certify that the property is contamination-free.
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                    6.5.3.7  Destruction or Abandonment
                    After every effort has been made to dispose of the property through the
                    above methods, the Contract Property Administrator may recommend that
                    the property be destroyed or abandoned in accordance with the require-
                    ments of 41 CFR 101-47.503 and GSA Bulletin FPMR H-52.

                    6.5.4.   Property Comprising a Superfund Response
                    Property comprising part of a remedial or removal action (such as pond
                    liners or pipes for a water treatment system) and necessary for the con-
                    tinued functioning of the response action loses its character as government
                    property. No reimbursement is required for the Trust Fund. Such property
                    is removed from the Personal Property Accountability System, if so con-
                    trolled, upon certification by the Project Officer and concurrence by
                    his/her supervisor that the property is being left in place as part of a Super-
                    fund response.

                    Other property may be installed which is incidental to, but not necessary
                    for, the continued operation of the response action. This may include
                    items such as fencing and lighting. In accordance with the provisions of
                    41  CFR 101-47.503, these items may be left in place if required by health,
                    safety, or security considerations. These items may also be abandoned if
                    the value of the property is so little or the cost of its care and handling so
                    great that retention for sale is clearly not economical. Contractors shall
                    identify property installed as part of the remedial action in the final inven-
                    tory report.

                    When property, that is not necessary for the continued functioning of the
                    Superfund response action, is installed or at contract completion, the con-
                    tractor must report the cost of removal, care, and handling as well as the
                    projected residual values at the completion of the project period to the
                    Contract Property Administrator. An analysis will be conducted by the
                    Contract Property Administrator to determine if it is cost-effective to
                    remove the installed property. If the property has been certified by the
                    Superfund site Health and Safety Plan as contamination-free, the Contract
                    Property Administrator, after receiving approval from the Contracting
                    Officer, shall issue disposition instructions to abandon the property.

                    6.5.5.   Responsibility

                    6.5.5.1  Contractor
                    Reports property no longer required for contract performance to the Con-
                    tract Property Administrator.
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Personal Property Management Policy		4831-2/12/90
                     6.5.5.2  Contract Property Administrator
                     • Issues disposition instructions for property reported as no longer
                       required for contract performance or as residual on a final inventory.
                     • Ensures that the fair market value of any Superfund property is reim-
                       bursed to the Trust Fund at the time of disposal or transfer to a
                       non-Superfund activity.
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                                     Personal Property Management Policy
                                 Glossary
Abandonment
Accountability
                    Leaving Government-owned property in a non-federal location, when no
                    other alternatives are available for disposal, or if the low value or condi-
                    tion of the item makes it impractical to dispose of it in any other manner
                    and the abandonment does not endanger the public. Abandonment may be
                    authorized after review by either GSA, within a contract by a Contracting
                    Officer or a Board of Survey.
                    A property management function which encompasses the receipt, assign-
                    ment, recordkeeping, day-to-day control, physical inventory, and disposi-
                    tion of nonexpendable property.
Accountable Area
                    A specifically defined geographical or organizational locale which con-
                    sists of property Custodial Areas for which a designated Property Account-
                    able Officer has been assigned. It is a central accounting point for the
                    recording, maintenance, and control of the Agency's personal property.

Accountable Personal Property
                    Nonexpendable property with a unit acquisition cost of $300 for sensitive
                    items and $1,000 for all other items for which controls and official proper-
                    ty records are maintained in the Personal Property Accountability System,
                    and physical inventories are required.

Assistance Agreement
                    The legal instrument that EPA uses to transfer money, property, services,
                    or anything of value to a recipient to accomplish a public purpose. It is
                    either a grant or a cooperative agreement and will specify: budget and
                    project periods; total allowable costs identifying federal and non-federal
                    share; a description of the work to be accomplished; and any special condi-
                    tions (40 CFR 30.200).
 Cannibalization
 Component Part
The removal of serviceable components from otherwise unserviceable
government property.


Nonexpendable property which is installed or affixed to an item of
accountable property. It is integral to the functioning of the main unit and
does not have the capacity to stand alone.
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                                                           Page 91

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Personal Property Management Policy	 4831 -2/12/90
Contaminated Property
                   Equipment or supplies that because of their exposure to toxic or radio-
                   active materials, chemicals, or other waste products, have become unsafe
                   for normal use.

Contractor-Acquired Property
                   Property purchased or otherwise provided to a contractor through the use
                   of contract funds, and to which the Government retains title (48 CFR
                   45.101a).

Cooperative Agreement
                   An Assistance Agreement which provides for the transfer of money,
                   property, services, or anything of value to a recipient to accomplish a
                   public purpose of support or stimulation and substantial involvement is
                   anticipated between the executive agency acting for the federal Govern-
                   ment and the state or local government or other recipient during perfor-
                   mance of the contemplated activity (31 USC 63.01).

Core Program Cooperative Agreement
                   A cooperative agreement that provides funds to a state or federally-recog-
                   nized Indian tribe to conduct CERCLA implementation activities that are
                   not assignable to specific sites, but are intended to develop and maintain a
                   state's ability to participate in the CERCLA response program (40 CFR
                   35, Subpart  O).

Custodial Area
                   A personal property "Custodial  Area" is a designated part of an Account-
                   able Area and may consist of an office, section, branch, division, or other
                   unit.

Decals
                   Tags affixed by EPA to identify the property owned by the Agency and to
                   display the specific number that is unique to the individual piece of
                   Government property or to identify a specific class of property such as
                    "Superfund."

Disbursement Agreement
                    An Interagency Agreement under which EPA agrees to pay another
                    agency for a service or product  or to provide resources for other author-
                    ized purposes. See also "Funds-out Agreement."

Educational Institutions
                    Any  corporation, foundation, trust, or other institution operated for scien-
                    tific or  educational purposes, not organized for profit.
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4831-2/12/90        		Personal Property Management Policy
Excess Property
                    Any property under the control of a federal agency that is not required for
                    its needs and the discharge of its responsibilities as determined by its agen-
                    cy head or designee.

Expendable Property
                    Supplies and materials which are consumed or expended routinely, and
                    have been classified for control and cost accounting purposes.

Facilities
                    Property used in accordance with terms of the contract for production,
                    maintenance, research, development, or testing. It includes plant
                    equipment and real property. It does not include material, special test
                    equipment, special tooling, or Agency-peculiar property (48 CFR 45.301).

Fair Market Value
                    The most probable price in cash, or in terms equivalent to cash for which
                    the appraised property will sell in a competitive market under all condi-
                    tions requisite to a fair sale with the buyer and seller each acting prudent-
                    ly, knowledgeably, and for self-interest and assuming that neither is under
                    undue duress.

Funds-ln Agreement
                    An Interagency Agreement under which EPA agrees to deliver goods or
                    services and is to receive payment in return. See also "Reimbursement
                    Agreement."

Funds-Out Agreement
                    An Interagency Agreement under which EPA agrees to pay another agen-
                    cy for a service or product. See also "Disbursement Agreement."

Government-Furnished Property
                    Property in the possession of, or acquired directly by, the Government and
                    subsequently delivered or otherwise made available to a contractor or for
                    use under an Interagency or Assistance Agreement (48 CFR 45.101a).

Government Property
                    All real and/or personal property owned by the Government. It includes
                    Government-furnished property and property acquired through contracts,
                    Assistance Agreements, and Interagency Agreements to which EPA holds
                    title (48 CFR 45.101 A).
 Glossary                                                                        Page 93

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Personal Property Management Polk*	4831-2/12/90
Installed Personal Property
                   Property that requires utility connections (other than having electric cords
                   plugged into receptacles) and is related to a functional area, or property,
                   that if removed from the space or building does not render the space or
                   building unusable or uninhabitable.

Interagency Agreements
                   Any written agreement between federal agencies under which goods or
                   services are provided in exchange for funds, or in which the parties have a
                   mutual need for the goods or services and share in the cost of the work per-
                   formed under the Agreement. This will include two types of agreements
                   depending upon whether funds flow into or out of EPA. See also "Funds-
                   in Agreements" and "Funds-out Agreements."

Leased Property
                   Property procured through a lease arrangement. If the lease is an install-
                   ment purchase plan, then the items being acquired are considered
                   Government property.

Nonexpendable Property
                   Personal property which is durable with an expected useful life of one or
                   more years, is complete in itself, and does not lose its identity or become a
                   component part of another item.

Nonprofit Institution
                   Any corporation, foundation, trust, or other institution operated for scien-
                   tific or educational purposes, not organized for profit (48 CFR 45.301).

Personal Property
                   All property with the exception of real property (41  CFR 101-43.001-14).

Physical Inventories
                   Inventories  which consist of a physical inspection and are conducted on a
                   periodic basis to confirm the existence of accountable property.

Property
                   Property  is both real and personal. It includes facilities, material, special
                   tooling, special test equipment, and Agency-peculiar property (48 CFR
                   45.101 A).

Property Control System
                    A contractor's internal management program encompassing the protec-
                    tion, preservation, accounting for, and control of Government property
                    from its acquisition through disposition.
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4831-2/12/90        	     	       	Personal Property Management Policy
Property Management
                    The overall responsibility required for the management, acquisition,
                    accountability, utilization, maintenance, and disposal of personal property.

Reimbursement Agreement
                    An Interagency Agreement under which EPA agrees to deliver goods or
                    services and is to receive payment in return. See also "Funds-in Agree-
                    ment."

Revocable License Agreement
                    A signed revocable agreement executed by authorized officials of the
                    Agency for the loan of EPA-owned personal property to other federal
                    agencies, non-federal institutions, organizations, and individuals, or to
                    foreign countries.

Sensitive Items
                    Items of personal property (supplies and equipment), which, because of
                    their nature and portability are particularly susceptible to misappropria-
                    tion. These items are recorded, controlled, and protected at all times. Sen-
                    sitive items with an acquisition cost of $300 or more are controlled as
                    accountable property.

Software
                    Computer programs, procedures, rules, and associated documentation per-
                    taining to the operation of a computer system. Software is not controlled
                    as personal property.

Superfund Unique Decal
                    The Superfund unique decal is a decal affixed to all nonexpendable per-
                    sonal property purchased through the Hazardous Response Trust Fund
                    (Superfund) appropriation.

Superfund Property
                    Property purchased in whole or in part with funds appropriated from the
                    Hazardous Substance Response Trust Fund.

Title
                    The legal right to claim, control, and dispose of property.

Trust Fund
                    The Hazardous Substance Response Trust Fund was established by the
                    Comprehensive Environmental Response, Compensation, and Liability
                    Act (CERCLA), as amended, to pay for the costs of responding to actual
                    or threatened releases of hazardous substances, pollutants, or contam-
 Glossary                                                                        Page 95

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Personal Property Management Policy                 	        4831-2/12/90
                    inants that endanger the public health or welfare. The Trust Fund consists
                    of taxes on petroleum and certain chemicals; recoveries of Government
                    response costs under CERCLA; penalties and punitive damages; and
                    income from the investment of the Trust Fund.
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4831 -2/12/90
               Personal Property Management Policy
                                            Index
Abandonment
    Contaminated property, 80
    Procedures, 67,86,89
    Property incidental to a response action, 12,64,89
Accountable property
    Authorization for contracts, 68,71
    Components for, 23,61,75
    Contractor records, 76
    Disposal, 11,26,63
    Dollar threshold for controlling, 23,61,74
    Identification, 23
    Inventory, 10,24,82
    Records, 9,23
Action Official
    Approval of acquisitions, 58-59
    Responsibilities, 56,60
Approval process
    For Assistance Agreements, 32,41,43,47
    For contracts, 68
    For IAG property, 57
    For in-house property, 16
    For loans, 17
Award Official
    Approval of purchase, 34-35,49
    Approval of usage fee, 34,48
    Exercising title, 37
    Responsibilities, 31,53

 B

 Board of Survey
    Appointment, 5-6
    Responsibilities, 8
 CERCLA
     See Superfund
Certification
    FMFIA, 10,14,24
    For executive furnishing, 16
    Inventory, 79,82-83
    Laboratory walk-through, 13
    Property clearance, 67
    Superfund disposal, 12,50,63,89
Compliance reviews, 72,80
Component part, 9,23,61,75
Condition code, 78,81,83,85,87
Contamination
    See Decontamination
Contract Property Administrator
    Concurrence of property acquisition, 70
    Evaluation of property control systems, 73,80
    Missing property, 78
    Responsibilities, 66,70,72,76,80-81,83,90
Contracting Officer
    Responsibilities, 67,70-72,76,78,81,84
Contractor services
    Under Assistance Agreements, 34,49
    Under lAGs, 58
Contractor-acquired property
    Disposal, 40,45,64,85,87
    Records retention, 38
    Title, 71
    Title under Assistance Agreements, 36,44,50
    Under Assistance Agreements, 34,49
    Under contracts, 67
    Under lAGs, 59-60
Core Program Cooperative Agreement, 46,48
Cost comparison
    For Assistance Agreement property, 35,48
    For contract property, 69
    For IAG property, 56-57,59
    For in-house property, 17
Custodial Officer
    Annual inventory, 25
    Appointment, 7,14,24
 Index
                                         Page 97

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Personal Property Management Policy
                                    4831-2/12/90
    Certification, S
    Responsibilities, 8, IS
Damaged property
    See Missing property
Decal
    Barcode, 9,23,74
    Superfund,  10,24,61,74
    U.S.EPA.23,75
Decontamination
    Certificate,  11,79,82-83,87-89
    Report of, 79
    Responsibility with loans, 18
Destruction
    See Abandonment
Disposal
    Of Assistance Agreement property, 39,42,44,53
    Of contract property, 84
    Of IAG property, 62
    Of non-Superfund property, 10,25,39,62,84
    Of property comprising a Superfund action, 11,50,
        63,89
    Of Superfund property, 11,25,53,62,87
    See also Reimbursement
Disposition
    Instructions, 31.39,45,52,62,67,75,83-84,89
Division director
    Annual certification, 24
    Approval for use of property off-site, 21
    Approval of contract property, 70
    Approval of loaned  property, 17
    Approval of personally-owned property, 19
    Responsibilities, 7
Donation, 86,88
Excess property
    Disposal, 10,25,84
    Reporting, 15,23,25,82
    Use, 7,16,18,59,66,68,70
Exchange/sale, 27,85,88
Expendable property
    Accountability, 8,22,61,75
    Contractor records, 76
    Disposal, 40,45,53,63
    Reporting, 82
Fair market value, 11
    See also Reimbursement to Trust Fund
Federal Managers' Financial Integrity Act
    Property event cycle, 15
Federally-furnished property
    Approval of, 32,47
    Definition, 30
    Disposal, 40,45,54
    Identification of, 38,52
    Inventory, 39,53
    Title, 36,44,50
Financial Management Officer
    Responsibilities, 32,56,67
Follow-on contracts
    Transfers to, 84,87
Furniture, 9,16,23
Government property off-site, 20
Government-furnished property
    See also Federally-furnished property
    ForIAGs.57,60
    To contracts, 68,71,77
Grants Officer
    Responsibilities, 31,33,39,48

H

Health and Safety Plan, 79,89
                                                      I
 Identification
    For accountable property, 9
    For Assistance Agreement property, 38,52
 Indian Tribal Government
    See State Governments
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                                            Index

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4831- 2/12/90
               Personal Property Management Policy
Installed property
    In Agency-owned facilities, 9,24
    In non-Agency-owned facilities, 9,24,75
    Incidental to a response action, 12,64,89
    Part of a Superfund response, 11,51,60,63,87,89
Institutions of higher education
    See Nonprofit organizations
Internal control
    Review, 14,24
    System, 10,24
Inventory
    Frequency, 10,25
    Responsibility, 13-15,24,66-67
    Under Assistance Agreements, 38,52
    Under contracts, 66-67,81
    Under lAGs, 62
    Responsibility, 8,14-15,24,81
    Short on inventory, 25,82
N
Nonprofit organizations
    Assistance Agreements, 41
    Contract property, 72
    Contracts with, 71,84
    Donation to. 86
Official property records, 67,75
On-site contractors, 72
Overage, 15,25,82
Lease credits, 58,69,75
Lease versus purchase analysis
    See Cost comparison
Leased property
    Accountability, 10,61
    For in-house use, 17
    Under Assistance Agreements, 34,49
    Under contracts, 66,69,75-76,81
    UnderIAGs.58,61
Liability
    Determination, 8,67,78-79,84
    For personally-owned property, 20
    Off-site, 21
Limited sales, 27,85,88
Loaned property, 17-18
Local Governments
    See State Governments
Lost property
    See Missing property

 M

 Missing Property
    Liability determination, 8,81
    Reporting, 23
    Reporting procedures, 77
Personally-owned property, 19
Physical inventory
    See Inventory
Program Accountable Officer, 14,24
Project Officer responsibilities
    For Assistance Agreements, 31,33,35-36,41,47,50
    For contract property, 66,70,72,84
    For contracts, 69,89
    Under lAGs, 56-57,63
Property Accountable Officer
    Designation, 6
    Responsibilities, 13,16
Property Administrator
    See also Contract Property Administrator
    Designation, 31,48,57
    Designation in LAGs, 56
    Responsibilities for Assistance Agreements, 31,33,
        35,37,39,41,53-54
    Responsibilities under lAGs, 56
Property control system
    Compliance review, 80
    For Assistance Agreements, 38,51
    For contracts, 66,73
Property justification
    For contract property, 66,69
    ForIAGs,59
 Index
                                          Page 99

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Personal Property Management Policy
                                    4831-2/12/90
Purchase
    Cost comparison for in-house property, 17
    Under Assistance Agreements, 33-34,49
    Under contracts, 69
    Under lAGs, 59
Records
    Contract property, 67,75
    For Assistance Agreements, 37,51
    Retention, 38,52
Reimbursement
    Accountable property, 11
    Nonaccountable property, 11
    See also Reimbursement to Trust Fund
    Split-funded property, 11
    Under Assistance Agreements, 40,45,53
Reimbursement to Trust Fund
    Accountable property, 26,40,50,54,62,87
    Exchange/sale, 88
    For interagency transfer, 27,88
    For intra-agency transfer, 26,88
    For limited sales, 27
    For nonaccountable property, 25,88
    For split-funded property, 26,88
    GSA sales, 27,88
    Limited sales, 88
Relief of accountability, 8,79
    See also Missing property
Reports
    Acquisition, 37,66,77
    Contaminated property, 79
    Final certification, 79
    Inventory, 25,39,53,62,66
    Missing property, 77
Revocable license agreement, 18
Sales
    By EPA, 27,85
    By GSA, 27,86
    See also Exchange/sale
    See also Limited sales
    Reimbursement, 11,25,62,87
    Under Assistance Agreements, 38,52-53
Sensitive property, 9,23,38,61,74
Seven point justification
    See Property justification
Shortage, 15,25,82
Small lot sales
    See Limited sales
Software
    Accounting for, 1,9,23
    Installation of, 20
State Governments, 42
Stolen property
    See Missing property
Subagreement, 36,40,44-45
Subcontractor, 72,78,82-83,85,87
Superfund
    Assistance Agreements, 46
    Records retention, 52
    See also Superfund property
Superfund property
    As part of a response action, 11,51,63,89
    Disposal of, 10,25,53,87
    Disposition, 62
    Identification, 10,24,74
    Under lAGs, 60
Supplies
    See Expendable property
Title
    Contractor-acquired property, 36,44,50,60
    Federally-furnished property, 36,44,50
    For nonprofit organizations, 41,71
    For States, 43
    For Superfund, 60
    Government-furnished property, 60,71
    Under Assistance Agreements, 35
    Under contracts, 71
    Under lAGs, 59
Trade-in transaction, 26
Transfers
    In-house, 26,85,87-88
    Superfund property, 11,26,53,63
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                                            Index

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4831-2/12/90
Personal Property Management Policy
    Title, 35,43,50
    To contractors, 77
    To follow-on contracts, 84,87
    To other agencies, 27,57,60,86,88
Transportation costs
    Responsibility, 18-19,33,58-59

u

Usage fee
    Approval, 33,48
    Use, 58
Utilization, 15
    Review, 5,14,24
 Index
                          Page 101

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