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
Table of Contents
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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
Table of Contents Page vii
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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
Table of Contents
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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
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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).
Chapter 2. In-House Property
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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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• 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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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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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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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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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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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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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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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.
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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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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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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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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-
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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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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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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
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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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• 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
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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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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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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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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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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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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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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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• 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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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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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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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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• 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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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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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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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
Chapter 5. Contract Property
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• 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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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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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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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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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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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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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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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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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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• 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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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.
Glossary
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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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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).
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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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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-
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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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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
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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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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
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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
Page 100
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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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