u.s. general services administration gary thompson senior program analyst general services...
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U.S. General Services Administration
Gary ThompsonSenior Program AnalystGeneral Services Administration,Office of Govenmentwide Policy
Gary ThompsonSenior Program AnalystGeneral Services Administration,Office of Govenmentwide Policy
May 15-17, 2012May 15-17, 2012
OVERVIEW OF FEDERAL GOVERNMENT EXCHANGE/SALE PROGRAM
OVERVIEW OF FEDERAL GOVERNMENT EXCHANGE/SALE PROGRAM
Value to the Customer Value: Allows Customer Agencies when acquiring
replacement property, to exchange or sell similar items and apply the exchange allowance or proceeds of sale in whole or in part payment for the property acquired.
Example: DOJ Sale of 50 Aircrafts and Aircraft Parts. Value: Provided proceeds of $1.4 for purchase of new
aircrafts. Example: Navy Exchange of Weapon System Value: Resulted in allowances of $47.0 M for purchase of
new system.2
Overview of Exchange/Sale Program
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Authority:
Title 40 U.S.C. – Law that established GSA, and many asset management policies; including the latest version of the exchange/sale authority (40 USC 503).
41 C.F.R. 102-39 (FMR 102-39) – Governmentwide regulation implementing 40 U.S.C. 503
Overview of Exchange/Sale Program
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Key Points:• The use of E/S should be considered when replacing
personal property.
• Asset Capital Planning should consider the use of E/S.
• E/S authority is an acquisition authority, not disposal.
• Law at 40 U.S.C. is very general, and gives GSA Administrator authority to implement related policies.
Overview of Exchange/Sale Program
Key Points – Restrictions:
Items cannot be excess – there must still be a need for the asset.
Restrictions on use of funds and exchange allowance.
Replaced assets must be “similar”. Need to avoid appearance of a “yard sale”.
List of prohibited items at FMR 102-39.60
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Overview of Exchange/Sale Program
Key Points – Restrictions (continued):
Several categories of assets, including aircraft, were recently removed from the prohibited list.
Note to this section – paraphrased - Deviations will not be considered for FSC Class 1005 (Guns <30 mm).
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Overview of Exchange/Sale Program
Key Points – Using the Exchange/Sale Authority:
What if the Exchange Allowance/Sales Proceeds are
unreasonably low?
Don’t consider if the transaction violates statute or regulation.
Determine which action is likely to provide the greater return.
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Overview of Exchange/Sale Program
Key Points – Offering Exchange/Sale Property to Federal Agencies and States:
First consider:
Federal agencies known to use such property
Terms agreeable to both parties
Reimbursement amount not greater than fair market value
Apply proceeds in whole or part to acquire replacement property
State Agencies for Surplus Property (SASP). 8
Overview of Exchange/Sale Program
Key Points – Exchange/Sale Conditions:
Property exchanged/sold must be similar to property acquired.
Property neither excess nor surplus.
Property not acquired for the purpose of E/S.
Allowances and proceeds to offset cost of replacement property
Document facts associated with each transaction.9
Overview of Exchange/Sale Program
Key Points – Accounting Requirements:
Use general finance and accounting rules.
Allowances/Proceeds available in fiscal year property
exchanged or sold plus one additional fiscal year.
Proceeds not applied are deposited into US Treasury as
miscellaneous receipts.
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Overview of Exchange/Sale Program
Key Points – Reporting Requirements
Submit summary report 90 calendar day after close of fiscal
year.
Submit report electronically to E/S Reporting Tool at
https:gsa.inl.gov/property
Negative reports must be submitted
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Overview of Exchange/Sale Program
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In-Use
Donation
Sales
Excess
Reassigned
within the
Agency
Property No Longer Needed or Available
Disposal at any stage: Non-federal transfers; Abandoned/Destroyed; and Lost
Sold
Exchange/Sale -
$306M (2009)
Stage of Use or Disposal:
Donated -
$343M (2009)
Transferred
to other
agencies -
$398M (2009)