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FHWA Order M 4300.1

Order
Subject
PERSONAL PROPERTY MANAGEMENT MANUAL
Classification Code Date
M4300.1 June 22, 1983  

Par.

  1. Purpose

  2. Cancellation

  3. Scope

  4. Action

  1. PURPOSE. To establish and transmit the Personal Property Management Manual.

  2. CANCELLATION. This Order cancels the Federal Highway Administration (FHWA) Administrative Manual, Volume 35, Personal Property Management, in its entirety.

  3. SCOPE. The provisions and requirements of this Manual are applicable to all FHWA offices.

  4. ACTION. Onsite utilization surveys of personal property are required by Chapter 4, paragraph 6. The initial surveys are to be conducted no later than September 30, 1983.

/s/
Daniel Markoff
Associate Administrator
for Administration

Attachment


               PERSONAL PROPERTY MANAGEMENT MANUAL

                        TABLE OF CONTENTS

                                                           PAGE

CHAPTER   1.   GENERAL

     1.   Purpose..........................................1-1

     2.   Authority and References.........................1-1

     3.   Definitions......................................1-2

     4.   Responsibilities.................................1-4

CHAPTER   2.   ACCOUNTABILITY

     1.   General..........................................2-1

     2.   Nonexpendable Property...........................2-1

     3.   Expendable Property..............................2-5

     4.   Replenishment of Stores Stock....................2-6

     5.   Cupboard Stock...................................2-8

     6.   Sensitive Property...............................2-8

     7.   Property Passes..................................2-9

     8.   Biennial Inventories.............................2-10

     9.   Supply Activity Report...........................2-11

CHAPTER   3.   ACQUISITION

     1.   General..........................................3-1

     2.   Source of Supply.................................3-1

     3.   Acquisition Procedures...........................3-1

     4.   Acquisition from Excess..........................3-7

     5.   Donated Property.................................3-9

     6.   Coding Documents.................................3-9

CHAPTER   4.   UTILIZATION

     1.   General..........................................4-1

     2.   Responsibilities.................................4-1

     3.   Furniture........................................4-1

     4.   Equipment........................................4-4

     5.   Personal Property Reviews........................4-5

     6.    Maintenance and Repair-

          Washington Headquarters..........................4-6

     7.   Replacement Standards............................4-6

                    

CHAPTER   5.   DISPOSITION

     1.   General..........................................5-1

     2.   Excess Property..................................5-1

     3.   Annual Reports...................................5-5

CHAPTER   6.   PROPERTY BOARDS OF REVIEW

     1.   General..........................................6-1

     2.   Property Boards of Review........................6-1

     3.   Reports of Review of Property....................6-2

     4.   Disposition of Property..........................6-3

     5.   Determination of Liability.......................6-3

CHAPTER   7.   CLAIMS FOR LOSS OF PERSONAL PROPERTY

     1.   General.........................................7-1

     2.   Authority.......................................7-1

     3.   Claimants.......................................7-1

     4.   Claims Officer..................................7-1

     5.   Statutory Provisions............................7-1

     6.   Allowable Claims................................7-3

     7.   Limitations on Allowable Claims.................7-4

     8.   Insurance.......................................7-6

     9.    Recovery from Third Parties and Assignment of

          Claims..........................................7-6

     10.  Computation of Awards...........................7-7

     11.  Submission of Claims............................7-8

CHAPTER   8.    TRANSFER OF EXCESS FEDERAL PERSONAL PROPERTY TO

               STATES

     1.   Purpose.........................................8-1

     2.   Definitions.....................................8-1

     3.   Authority.......................................8-1

     4.   Responsibility..................................8-2

     5.   General.........................................8-2

     6.   Information of Availability.....................8-4

     7.   Title Documents.................................8-4

     8.   Acquisition Procedures..........................8-5

     9.   Reimbursement...................................8-7

     10.  Accounting Procedures...........................8-7

     11.  Use by Counties.................................8-9

     12.   Annual Report - Excess Personal Property to Non-

          Federal Recipients..............................8-9

TABLE OF ATTACHMENTS [SEE PRINTED COPY OF MANUAL FOR COPIES OF ALL ATTACHMENTS]

CHAPTER 1. GENERAL

  1. PURPOSE. To prescribe policies and procedures for the implementation of the Federal Highway Administration (FHWA) Personal Property Management Program.

  2. AUTHORITY AND REFERENCES

    1. General Services Administration's (GSA's) Federal Property Management Regulations (FPMR) Subchapter E, Supply and Procurement, and Subchapter H, Utilization and Disposal.

    2. DOT Order 2700.12, Financial Management Control of Property, dated August 2, 1977.

    3. DOT Order 4430.1, Accountability and Control of In-Use Accountable Personal Property, dated December 9, 1977.

    4. DOT Order 1660.6, Reporting Procedures for Incidents Occurring within the Department of Transportation (DOT) Headquarters Facilities, dated May 28, 1981.

    5. Code of Federal Regulations, Title 41, Chapter 12, Subpart 12-16.851 (Use of DOT Form 4200.1, ProcurementRequest).

    6. DOT Order 4420.2, Preparation and Submission of Supply Activity Report (GSA Form 1473) and Supplemental Supply Management Information, dated June 13, 1975.

    7. DOT Order 4420.5, Management of Material Inventories, dated June 13, 1978.

    8. DOT Order 4430.2A, Management of Office Furniture, dated July 26, 1982.

    9. DOT Order 4600.1E, Redistribution of Excess Personal Property, dated April 12, 1982.

    10. DOT Order 4410.2, Exchange/Sale of Personal Property, dated January 10, 1977.

    11. Agency for International Development (AID) Handbook No. 23, Chapter 10, dated December 31, 1980 (6FAM 300).

    12. Title 31 United States Code 3721, Military Personnel and Civilian Employees' Claim Act.

    13. DOT Order 2770.9A, Employee Claims Manual, dated August 1, 1983.

  3. DEFINITIONS

    1. Accountable office - an office in which official records of accountability for personal property are maintained or supervised.

    2. Accountable Officer - the official in an accountable office who supervises the maintenance of the official personal property records, and serves as liaison officer on personal property matters.

    3. Accountable Property - property which is complete within itself (does not lose its identity or become a component part of another item) and has an expected useful life of one year or longer, and either is considered a sensitive item or has an acquisition cost of $300.00 or more.

    4. Capitalized Property - personal and real property the cost or value of which is recorded in an appropriate asset general ledger account. Generally, such items shall have a unit acquisition cost of at least $5,000 and an expected service life of at least two years.

    5. Contractor Inventory - property acquired by and in possession of a contractor or subcontractor (including Government-furnished property) under a contract pursuant to the terms of which title is vested in the FHWA.

    6. Cupboard Stocks - inventoried expendable supplies maintained at use point to fill daily needs.

    7. Excess Property - personal property which is no longer needed by a given organization and is available for transfer.

    8. Executive Furniture and Furnishings - includes but -is not limited to those items which:

        (1) are covered by Federal Supply Schedule, "Executive-type Office Furniture," or by Federal Standards and Specifications which have "executive-type" in the description; or

        (2) are generally known or considered in the trade as the "executive" or "deluxe" line of office furniture and furnishings; or

        (3) sell at a price, when new, which is as least 60 percent higher than the price for standard, common-use items generally used in Government.

    9. Expendable Property - all items of personal property (complete in themselves) which have an expected service life in normal use of not more than one year, cost less than $300 each, and are not considered sensitive items.

    10. Modular Furniture - interconnecting panel assemblies together with hang-on storage units, used incombination with free-standing desks, ADP support furniture, and other major components.

    11. Nonexpendable Property - property which has a normal life expectancy of more than one year, has continuing use as a self-contained unit, is not consumed in use, and does not lose its identity when put to use; is generally synonymous with accountable property.

    12. Real Property - any interest in land (including improvements to the property, structures, and fixtures located on the premises) and appurtenances. The FHWA Washington Headquarters holds titles to all real property owned by the FHWA, except:

        (1) the public domain;

        (2) lands reserved or dedicated for national forest or national park purposes;

        (3) minerals in lands or portions of lands withdrawn or reserved from the public domain which the Secretary of the Interior determines are suitable for disposition under the public land mining and mineral leasing laws; and

        (4) crops when designated by FHWA for disposition by severance and removal from the land.

    13. Personal Property - Government property of any kind or any interest therein, except real property and records of the Federal Government.

    14. Property Board of Review - a board designated by the Associate Administrator for Administration, the Regional Federal Highway Administrators, or the Direct Federal Division Engineers or their designated representatives for the purpose of investigating and reporting on the circumstances surrounding damage, loss, theft, unserviceability, sal, destruction, donation, or abandonment of personal property.

    15. Property Custodian - the person who is responsible for personal property assigned within his/her office or other area.

    16. Sensitive Property - items having popular appeal and are difficult to control without establishing control records. Examples: cameras, surveying equipment, portable calculating machines, typewriters, dictating and transcribing machines, etc.

    17. Store Stock - inventoried expendable property purchased for stock from which issues are made to the project activities on a reimbursable basis.

    18. Supplies and Materials - items of an expendable nature, including but not limited to stationery, forms, minor items of office equipment, small tools, repair parts, etc.

    19. Surplus Property - items of property which have been determined to be surplus to the needs of FHWA and have been so declared to GSA and/or the Office of the Secretary (OST).

    20. Systems Furniture - interconnecting panel assemblies and work surfaces, storage units and other major components which are panel supported.

  4. RESPONSIBILITIES

    1. Property and Services Branch. The Property and Services Branch will prescribe the property management program for the FHWA and is designated as the accountable office for the Washington Headquarters.

    2. Regional Administrators. The Regional Administrator or designee shall be the accountable officer in the regions.

    3. Direct Federal- Division Engineers. The Direct Federal Division Engineer or designee shall be the accountable officer in the Direct Federal division offices.

    4. Washington Headquarters Offices. Offices of the Associate Administrators and Staff Office Directors will direct the implementation and maintenance of the property management program prescribed in this Manual as it applies to their organizational area. These offices shall provide the accountable officer with the names of persons designated as property custodians. The Associate Administrators and Staff Office Directors shall designate two or more personnel, one of which should be the property custodian, within their office or area of responsibility, to perform the biennial physical inventory of nonexpendable property.

    5. Field Offices. The regional office will direct the implementation and maintenance of the property management program prescribed in this Manual as it applies to their organizational area. Each regional and division office shall provide the accountable officer with the names of persons designated as property custodian. Each office shall, designate two or more individuals, one of which should be the property custodian, to perform the biennial inventory of nonexpendable property.

    6. Accountable Officer. The accountable officer shall be responsible for interpreting policy prescribed by the FHWA on property management; implementing and providing guidance within his/her accountable office for the property management program; supervising, the maintenance of the official property records for personal property; and preparing accurate and complete data required by management and central agencies. He/she shall make a management inspection of each area within the accountable office at least once every two years and review all requests for acquisitions and dispositions of personal property within his/her accountable office. He/she shall maintain sufficient management control to provide (1) efficient utilization and safeguarding of Government property, and (2) a means of determining the condition of property, identifying, needed, excess, or obsolete items; and recommending repairs, rehabilitation, transfersor disposition of property where appropriate. The accountable officer shall also be responsible for maintaining a record of designate property custodians and provide instructions guidelines to property custodians on their specific duties and responsibilities.

    7. Property Custodian. The property custodian is responsible for all personal property assigned to his/her office or area of responsibility and shall be required to sign receipt and disposition documents for nonexpendable property including property already on hand when he/she is initially designated as property custodian. The property custodian shall also assist in the taking of physical inventories.

        (1) The property custodian may be held liable in the event of lost, stolen, damaged, or destroyed property in his/her area of responsibility until relieved of such responsibilities by a Property Board of Review. He/she is responsible for development of data necessary for, and the preparation of Form FHWA-1364, Report of Review of Property (Attachment 1), and Form DOT F 1660.6, Incident Report (Attachment 2), for property as required (see Chapter 4, paragraph 2, for employee responsibility).

        (2) When changes in property custodians are made by the program office, a physical inventory court of nonexpendable property shall be conducted jointly by the property custodian being relieved and the newly appointed property custodian.

        (3) The property custodian shall maintain the initial nonexpendable personal property inventory records for which he/she is assigned, supplemented with appropriate property acquisition and disposition documents. These documents will be maintained so that they will give an accurate picture of assigned nonexpendable property and facilitate reconciliation of auditing of such property.

        (4) Property custodians shall continually survey personal property within their area of responsibility to determine if property is excess to their requirements or its useful life has been expended. The condition of the property will be reported, on Form FHWA-1363, Report of Transfer of Property (Attachment 3), to the accountable officer, who determines whether the useful life of property may be extended either by repair orrehabilitation, and who initiates such action if economically feasible. He/she shall also determine if property is being utilized properly.

CHAPTER 2. ACCOUNTABILITY

  1. GENERAL. This chapter establishes and prescribes procedures for control and accountability of personal property. In all instances, property accountability shall rest within the end-user's organization.

  2. NONEXPENDABLE PROPERTY

    1. Property Records. Separate files or printouts should be kept for all nonexpendable property of different size, capacity, material (e.g., wood or metal) and office machines by brand and model. Color and manufacturer's name should not be considered as distinguishing factors for establishing separate property records. Separate property records are not to be established for equipment accessories when such items normally operate together as a complete unit. If an accessory to a piece of equipment is interchangeable with other basic equipment, i.e., camera lenses, amplifiers, and laboratory equipment, separate property records will be maintained, showing branch, serial and model numbers. Manufacturer's serial numbers should be recorded on the property records when more than one serial numbered item is recorded. Furniture must be accounted for regardless of acquisition cost; records, however, may be kept on a group-level basis (e.g., all desks in a Washington Headquarters branch, or all credenzas in a division office) rather than on an item-by-item basis as with other types of nonexpendable property. For depreciable rental equipment controlled by equipment depots Form FHWA-339, Equipment Class Record (Attachment 4), should be maintained where a manual property management system is still used (these records should be kept current). The official property records covering motor vehicles should reflect license plate number, serial number, engine number, year, make, model, type, capacity, gross weight, acquisition cost of basic vehicle, cost of each item of specialequipment, and acquisition document number.

    2. Documents. The receiving report copy of the following forms should be used as the posting media for the acquisition and release of nonexpendable property:
      
                DOT F 4200.1        Procurement Request (Attachment 5)
      
                Optional Form 347   Order for Supplies or Services
      
                                    (Attachment 6)
      
                Form  FHWA-189      Receiving Report (Attachment 7)
      
                Form FHWA-1363      Report of Transfer of Property
      
                                    (Attachment 3)
      
                Form FHWA-136       Report of Review of Property
      
                                    (Attachment 1)
      
                Standard Form 122   Transfer Order Excess Personal
      
                                    Property (Attachment 8)
      
                Standard Form 344   Multiuse Standard
      
                                    Requisitioning/Issue System
      
                                    Document (Attachment 27)
      
      

    3. Capitalization

        (1) General. All property items with an acquisition cost of $5,000 or more per unit shall be capitalized based on the method of acquisition as explained in paragraphs 2c(2) through 2c(6), below. Capitalized property is treated as an investment, whereas property below the $5,000 threshold is expensed as a current operating cost.

        (2) Purchases. Nonexpendable property purchased fromany source is capitalized at cost, including purchase price, initial direct transportation and initial installation expenses, less any time discounts offered.

        (3) Transfers. Property acquired by transfer from other Government agencies without exchange of funds, and property acquired by donation, is capitalized at the current value shown on the acquisition document. If the current value is not shown, an estimated value shall be determined by the accountable officer.

        (4) Trade-Ins. Nonexpendable property records are to be posted at time of delivery. The cost of newly purchased items acquired as a result of trade-ins shall be posted to the property records at the lesser of (a) the cash paid or payable plus the amount allowed by the vendor on the traded property or (b) the amount that the purchase price would have been had there been no trade-in. ("Cash paid or payable" is the amount due after the trade-in less any time discount regardless of whether or not the time discount is taken.) Items traded in will be removed from the inventory in the amount of the acquisition cost less any accumulated depreciation as reflected in the personal property records (see FHWA Order H 2700.2, Accounting Policy and Procedures Handbook). Posting media for property records are Form FHWA-1363 and Optional Form 347.

        (5) Trade Discounts (Other Than Time). The item is to be posted at cost (list price less discount) when delivered (see FHWA Order H 2700.2). Posting media for property records is Optional Form 347.

        (6) Time Discounts. The cost to be posted at time of delivery of an item shall reflect the time discount. The posted value will not be changed even if the time discount is not taken at the time of payment. Time discounts not taken will be treated as an operating expense in accordance with FHWA Order H 2700.2.

        (7) Accounts. Capitalized property is separated into three general ledger accounts (see FHWA Order H 2700.2) as follows:

          (a) Office Furniture and Equipment (nondepreciable), Account 202. This group includes all nonexpendable and sensitive administrative equipment (e.g., office furniture, office machines, office equipment, etc.).

          (b) Equipment - Nondepreciable, Account 204. This group includes all nondepreciableequipment (e.g., motor vehicles, laboratory, scientific, special purpose type equipment, et.).

          (c) Equipment - Depreciable, Account 206. This group includes all rental equipment (road building, maintenance, engineering, etc., and office furniture and equipment) controlled by the equipment depots.

    4. Monthly Reconciliation

        (1) Reconciliation. After the close of each month's business, a reconciliation of nonexpendable property is to be made between the general ledger accounts and the total inventory value shown on the property inventory records. This will be accomplished by the Finance Division (HFS-23). Differences will be shown on an adjusted Form FHWA-162, Non-Expendable Property Account and Transactions (Attachment 9), and forwarded to the field office so that reconciled adjustments can be made to the inventory records. Similar reconciliation of accountable stores inventory is not required.

        (2) Form FHWA-162. The Form FHWA-162 will be prepared by the accountable officer and must show the previous (adjusted) inventory balance, current month acquisitions, and dispositions as of the end of the reporting period. Form FHWA-162 along with a listing of transactions will be forwarded to the Finance Division (HFS-23) by the fifth day following the close of each month. The Finance Division will, reconcile Form FHWA-162 with the general ledger accounts. An adjusted Form FHWA-162 will be returned to accountable officers after reconciliation, if appropriate. The supporting listing of transactions will include, as a minimum, document number, account number (202, 204, or 206), acquisition or disposition, and amount posted to Form FHWA-162. Minus amounts will be shown in parentheses. In the field, Form FHWA-162 will be annotated on the reverse side of the form to identify the items of property andvalue included in the closing balance which have been declared as excess on Standard Forms 120 and 126, but which have not been disposed of by GSA. A negative report is required if no change occurred during the period being reported.

    5. Acquisition by Centralized Procurement. Occasionally, an office may provide funding for the procurement of nonexpendable property for use by another office. For example, the Data Systems Division (HMS-40) may purchase ADP equipment for field offices using HMS-40 funding. In such cases, the following accountability procedure shall apply. The purchasing office shall forward an advanced copy of the purchase documentation (e.g., purchase order) to each receiving office. When the property is delivered to the receiving office, that office shall complete a Form FHWA-1363 with all pertinent information, including acquisition cost (obtained from the purchase documentation). The FHWA-1363 shall be signed on the"Received" line and forwarded to the office providing funding (HMS-40 in the examples provided above). The funding office in turn shall sign the FHWA-1363 on the "Released" line and forward a copy to the Property and Services Branch (HMS-21). It should be noted that this procedure is in addition to the normal process of forwarding of receiving documentation to the Office of Fiscal Services.

  3. EXPENDABLE PROPERTY

    1. Stock Card. Form FH-287, Stock Record Card (Attachment 10), should be maintained for expendable property purchased for stock from which issues are made to ordering activities on a reimbursement basis in accordance with FHWA Order H 2700.2. Such expendable stores stock is usually maintained and accounted for by the FHWA equipment depots. This stock record is not required for supplies of expendable property held in cupboard stocks as defined in Chapter 1, paragraph 3e.

    2. Stores Account. Account 152, Material Supplies, is maintained in the general ledger for accountable stores stock for issue. Accountable stores stock includes: parts, construction materials, and items of anexpendable nature, as defined in Chapter 1, paragraph 3i (see also FHWA Order H 2700.2). Once stores stock items have been issued and the corresponding reduction in inventory has been posted, the same items shall not be subsequently returned to stock and posted as an increase to the stores stock inventory. Instead, such items may be redistributed to another activity or returned to the equipment depot for redistribution.

    3. Documents. The receiving report copy of the following forms should be used as the posting media for the acquisition and release of accountable expendable stores stock:
      
                Form DOT F 4200.1     Procurement Request (Attachment 5)
      
                Standard Form 44      Purchase Order-Invoice-Voucher
      
                                      (Attachment 11)
      
                Optional Form 347     Order for Supplies or Services
      
                                      (Attachment 6)
      
                Form FHWA-189         Receiving Report (Attachment 7)
      
                Form FHWA-1363        Report of Transfer of Property
      
                                      (Attachment 3)
      
                Form FHWA-1364        Report of Review of Property
      
                                      (Attachment 1)
      
      

    4. Unit Prices. The unit price is adjusted with each new order received and reflects the average purchase price of the items delivered.

    5. Low Value Sales Items. Stock items which have monthly issues totaling less than $20 are to be classed as "low value sales items" and Form FH-287 is to be noted with a check mark to identify these items.

    6. Simplified Inventory Control. A simplified method of inventory control is to because for low value sales items. This method eliminates unnecessary posting of issue transactions to Form FH-287 for low value sales items except for selected items of a critical or sensitive nature. Normally, the only posting that will be made on the Form FH-287 for low value sales (1) quantities ordered, (2) quantities and (3) balances on hand when physical is taken. On all other stores items, those few critical or sensitive items in this sales group, issues should continue to be tie Form FH-287 and perpetual inventory control maintained. It will still be necessary to price issues from stock for billing purposes.

  4. REPLENISHMENT OF STORES STOCK

    1. Economic Order Quantity (EOQ). The accountable stores stock inventory in equipment depots is to be replenished by applying the EOQ principle in determining the proper quantity of material to acquire for inventory. This is one suggested method for determining the "value of the expected monthly issues" for the items as the interim review (reorder) point is reached. The computed EOQ level may be adjusted when such action will result in a more economical purchase quantity. Items may be exempted from EOQ application (1) on an item-by-item basis under such circumstances as seasonal requirements, lack of storage space, budgetary limitations, or limited shelf life; or (2) when an item is being added to inventory, or has been in inventory for less tb.an 12 months. When EOQ is not used, stock acquisition should not exceed 12 months of supply unless the application of specific decision factors results in a more cost-effective acquisition quantity.

    2. Procedures for Inventory Control

        (1) When computers are being used for inventory management, inventory managers may, at their option, apply the basic EOQ formula (see GSA Handbook - Economic Order Quantity Principles and Applications, Stock #7610-00-543-6765) or use the EOQ table set forth in paragraph 4c. All other activities shall use EOQ tables. In either case, inventory activities are required to perform studies to determine the cost to order and the cost to hold stocks. Such cost studies shall be made every two years so that EOQ cost ratios can be adjust, if required. Separate cost ratios should be established for acquiring from different sources of supply (i.e., Government vs. commercial), and/or where different procurementmethods are used (i.e., formal contracting vs. small purchasing), provided the cost to order varies appreciably. Each FHWA inventory activity shall establish upper and lower limits, in terms of months of supply, for EOQ acquisitions. As a general rule, such acquisitions shall not exceed a three years supply or be less than one month of supply.

        (2) If the stock status of an item is below acquisition review point at the time replenishment action is initiated, the quantity acquired shall include the additional amount necessary to compensate for the deficiency in review point stock.

        (3)Additional stock exceeding normal replenishment quantity may he acquired when necessary to support a known increase in demand over and above computed demand.

    3. EOQ Replenishment Table

        (1) Stores stock inventories should be replenished using the following table established for the FHWA:

        
                  Range of                      Ordering Period
        
                  Monthly Demands               (Number of months
        
                  (dollars)                     of supply)      
        
                       (A)                           (B)
        
                  Less than  $10                     12
        
                  $10  to     20                      9
        
                   21  to     40                      6
        
                   41  to     60                      5
        
                   61  to    100                      4
        
                  101  to    160                      3
        
                  161  to    240                      2 1/2
        
                  241  to    400                      2
        
                  401  to    800                      1 1/2
        
                  801  and   over                     1
        
             

        (2) The reorder value is determined by multiplying the past average monthly issue rate (units) by the unit price. Refer then to Column (A) of the table to determine the range of monthly demands applicable to the "value of the expected monthly issues" for the item. Reading across the table, the figure under Column (B) indicates the economic, ordering period for the item. The economic ordering period is converted in the EOQ by multiplying the entry under Column (B) by the average monthly issue rate and adding, contingency stock (safety stock) quantity and subtracting stock on hand and due-in. Form FH-287, Stock, Record Card, may be used for replenishment of the accountable stores inventory.

  5. CUPBOARD STOCK. Cupboard stock is stock held at the point of final use. Since the needs for establishing and maintaining cupboard stocks vary widely and the types of supplies stocked are diverse, rigid standards for all offices are not practical. Cupboard stock should fill day-to-day needs, and at least a two-weeks supply should be maintained. As experience indicates the quantities of various items used, requisitioning should be in an orderly manner to eliminate as much as possible those acquisitions which require emergency handling.

  6. SENSITIVE PROPERTY

    1. When sensitive property is issued to an employee for personal custody, the property custodian should prepare Form FHWA-164, Property Receipt and/or Receipt for Property Returned (Attachment 12), in duplicate. This will be signed by the employee receiving the property. The original shall be retained by the property custodian and the carbon copy shall be given to the employee. The Form FHWA-164 should have an expiration date of no more than twelve months, at which time the property will be visually checked and the Form FHWA-164 revalidated for another twelve-month period.

    2. Upon return of the property, the property custodian will give the original receipt to the employee. If only partial return is made, the original receipt willbe noted as to date of return of each item and will be initialed by the property custodian and the employee.

    3. In cases involving lost, stolen, or damaged property, the property custodian must await final submission on Form FHWA-1364 and DOT F 1660.6, required by Chapter 6. Only after accomplishment of the approved disposition may the receipt be released.

    4. Upon separation of an employee or transfer to other FHWA installations, Form FHWA-126, Clearance of Employee Accountability (Attachment 13).@ is to be processed.

  7. PROPERTY PASSES

    1. Washington Headquarters

        (1) Government property shall not be removed from the premises occupied by the FHWA except for official use. An individual who removes Government-owned or leased property, equipment owned by contractors or potential contractors, vendors or suppliers and equipment personally owned by FHWA personnel or visitors shall give to the guard office a Form DOT F 1660.2, Property Removal Record (Attachment 14), completed in duplicate, which may be obtained in the office where the property is removed.

        (2) FHWA personnel who have a continuing and/or routine need, in the performance of their duties, to remove Government-owned property from FHWA-occupied premises (e.g., FHWA photographers carrying camera equipment, accident investigators with specialized equipment, etc.) may remove such property without the necessity of completing Form DOT F 1660.2., Property Removal Record. Instead such persons may be issued Form DOT F 166O.3, Property Security Pass (Attachment 15). These serial numbered forms shall be rigidly controlled and accounted for and surrendered when the employee's duties change and he/she no longer needs the form. The forms will be issued for a period not to exceed one year, at which time they will need to be revalidated. This form will he issued by the accountable officer.

    2. Field Offices. The procedures prescribed in paragraph 7a are to be followed in the event regional and division offices are located in a Federally owned building protected by the GSA Guard Force. Otherwise, procedures shall be prescribed by field offices consistent with the procedures set forth in paragraph 7a for control over Government-owned or personally-owned property removed from the premises, occupied by the FHWA.

  8. BIENNIAL INVENTORIES

    1. General. On a biennial basis, FHWA Washington Headquarters and each regional and division office are to take a physical inventory (actual item-by-item count) of all nonexpendable property and stores inventory that must be accounted for. The inventory month may be selected according to the convenience of the individual offices. The official property records shall be adjusted as required to agree with the physical inventory as indicated in paragraph 8b below. At the completion of the inventory, the Finance Division (HFS-23) should be advised of item adjustment so that the general ledger accounts can be reconcile with the subsidiary property records. Any inventory adjustments shall be included on Form FHWA-162, Non-Expendable Property Account and Transactions, or the applicable document used in automated property accounting.

    2. Nonexpendable Property. In the field, Form FHWA-149, Non-Expendable Property Inventory as of December 31,19 (Attachment 16), or other applicable listing will be forwarded by the division offices to the regional offices for verification against the official property records. Offices should take the action needed to promptly complete the inventory. Quantities from the property records shall-not be inserted on Form FHWA-149. A recount is to be made of each item which does not agree with the official property records. Subsequently, any remaining significant overages or shortages are to be investigated to determine the reason, to turn up missing property or documents, to prepare any adjustments necessary, and to effect remedial procedures. An inventory posting shall bemade on each property record at the completion of the inventory.

        (1) Overages of nonexpendable property which are not reflected in the property records, for which acquisition documents cannot be located, shalt be put in the records by preparing Form FHWA-1363.

        (2) shortages of nonexpendable.e property are to be accounted for by having the property custodian prepare Form FHWA-1364 and DOT F 1660.6 and forward them to the accountable officer.

    3. Expendable Accountable Stores Stock. Each item of accountable stores stock will be inventoried. The inventory count is to be prepared with the balance carried on Form FH-287, Stock Record Card, with the exception of low value sales items which will be posted at the time of inventory as described in paragraph 3f of this Chapter. It should be noted when the inventory count and the balance shown on Form FH-287 are in agreement, as well as when there is a difference in the count and Form FH-287, the loss or gain should be recorded. Significant differences between the inventory count an(] the balances shown on Form FH-287 balance are to be reconciled. The actual. inventory is to be recorded on Form FF-287 after the recount and investigation of the difference. After the inventory has better recorded on each Form FH-287, the fiscal value of gains and losses should be summarized on a single Form FHWA-1363 with an explanation and forwarded to the fiscal office for adjustment Of the stores account.

  9. SUPPLY ACTIVITY REPORT. A report on supply activities is to be made on (GSA Form 1473, Supply Activity Report (Attachment 17), on an annual basis as of September 30 each year, as prescribed in DOT Order 4420.2. By November 1 of each year, the FHWA's Depots should submit to the Property and Services Branch an original and two copies of GSA Form 1473.

CHAPTER 3. ACQUISITION

  1. GENERAL. This chapter sets forth procedures for the

    acquisition of personal property by purchase, transfer from Government excess or by donations. It prescribes systems of numbering and coding property documents and procedures for the preparation, clearance, and required approvals of requisitions prior to procurement.

  2. SOURCE OF SUPPLY. The following sources of supply are to be considered in obtaining supplies, materials, And equipment for the FHWA:

    1. Purchase.

    2. Donation from non,-Government departments and agencies.

    3. Excess Government-owned personal property available for transfer:

        (1) within accountable offices of the FHWA;

        (2) between accountable offices of the FHWA;

        (3) between other Administrations and offices of the DOT; and

        (4) from other Government departments and agencies.

  3. ACQUISITION PROCEDURES

    1. GENERAL

        (1) Requests for personal property should be prepared on Form DOT F 4200.1, Procurement Request. Each Procurement Request should give an accurate and detailed description of the items required, including commercial catalog references and manufacturer's or supplier's number, where applicable. Except where services or supplies relate to the end item being requisitioned, and are to be furnished by the same contractor, expendable and non-expendable property will not be included on the same requisition. When supplies are included on the requisition for non-expendable items, they will be coded as expendable. For example, supplies such as batteries, tapes, orbelts ordered with a dictating machine will be coded, 2690, while the machine will be coded 3125, the last four digits of the fiscal coding structure.

        (2) Requests for items from the GSA Stock Program (i.e., FEDSTRIP) should be prepared on Standard Form (SF) 344, Multiuse Standard Requisitioning/Issue System Document (Attachment 27).@ Detailed information concerning FEDSTRIP is contained in the FEDSTRIP Operating Guide, which can be obtained by submitting GSA Form 457, FSS Publications Mailing List Application, to GSA's Centralized Mailing List Service, 819 Taylor Street, P. 0. Box 17077, Fort Worth, Texas 76102. General information can be obtained by contacting the Property and Services Branch (HMS-21).

        (3) For acquisition of office supplies, refer to guidance on the use of General Services Administration (GSA). Customer Supply Center (CSC).

        (4) Acquisition of furniture, furnishings, and equipment from any source, including excess, will be limited to:

          (a) essential requirements arising from quantitative increases in on board employment, and

          (b) essential items required:to perform assigned functions by on board employees.

        (5) Furniture, furnishings, or equipment may not be replaced for the purpose of upgrading or matching of existing property. When items are requested for replacement purposes, rehabilitation or refinishing must first be considered. For those items determined uneconomical to rehabilitate or refinish as prescribed in Chapter 4, paragraph 7a, the requisition shall include the current condition of each item, its proposed disposition, and the estimated cost to rehabilitate or refinish the item(s).

        (6) Systems and modular furniture can offer viable solutions to some space management problems. They are, however, more expensive than conventional office furniture. This fact necessitates a careful review of all options, including maximum utilization of existing space and furniture, to ensure that the most cost-effective alternative is employed. Due to their cost and complexity, acquisitions are to be submitted to the Property and Services Branch (HMS-21) for review before procurement action it begun. For procurement purposes, this furniture is limited to items covered by GSA contracts under Federal Supply Schedule FSC Group 71, Part II; systems furniture is covered in Section E and modular furniture is covered in Section G.

        (7) Government funds shall not be expended for pictures, objects of art, plants, or flowers (artificial or real) or any similar type,items intended solely for personal convenience or to satisfy personal desire of the official or employee, unless authorized by law.

        (8) Procurement requests for expendable and non-expendable property should be planned so as to permit an even distribution of the procurement of such property during the fiscal year.

        (9) Because of recurring changes in this category, all requests for electric typewriters, shall be in accordance with current GSA purchase schedules.

    2. Justifications

        (1) Furniture. Procurement requests for ; office furniture shall include a typewritten justification which must include the following information as a minimum:

          (a) Whether the proposed purchase is to replace worn out or unserviceable furniture, or whether it is necessary to provide for increases in onboard staffing. Procurement requests must be plainly marked "Replacement'or "Additional." Separate procurement requests will be prepared for the two categories.

          (b) Names, grades, titles, and room locations of the employees who are to use the furniture or furnishings must be indicated. Also the name and grade of the highest ranking official occupying space in the office suite where the requested items of furniture are to be used must be given.

          (c) When furniture is requested for replacement, a complete listing of the furniture or furnishings which are to be replaced and the general condition of each item must be provided. Replacement of existing furniture shall not be made for the purposes of improvement in appearance, office decor, status elevation, desire for the latest design, or more expensive lines.

          (d) A statement also must be made that the request meets the criteria outlined in Chapter 4, paragraphs 3a and 3b for the purchase of executive and unitized types of furniture.

          (e) The Property and Services Branch of the operations and Services Division will develop procurement requests for Washington Headquarters furniture in coordination with the appropriate program coordinators or administrative officers. All funds for the procurement of Washington Headquarters furniture shall be under the centralized control of the operations and Services Division.

        (2) Other. Procurement requests for the acquisition of the following types of expendable and non-expendable property, from any source,, must contain justification information in connection with use and/or replacement standards.

          (a) Automotive equipment (see FHWA Order M 4340.1, Motor Vehicle Management and Operations Manual).

          (b) Copier and telefacsimile equipment.

          (c) Printing, binding and related or auxiliary equipment.

          (d) Shelf filing equipment.

          (e) Telephone monitoring devices and dictating recording equipment (see FHWA order M 1740.lA, Telecommunications Services Management Manual).

          (f) Automatic data processing equipment (see FHWA Order M 1340.2, Federal Highway Administration Information Resources Management Manual).

          (g) Audiovisual equipment.

    3. Washington Headquarters Clearance

        (1) Regional offices must obtain prior Washington Headquarters clearance before acquiring, from any source including excess, the following items: automotive equipment, printing, binding, and related or auxiliary equipment. Such field Procurement Requests shall be forwarded in original and one copy to the Office of Management Systems for review and clearance. The Procurement Request should contain complete information including justification as required in paragraph 3b above, purchase price, trade-ins, etc., pertinent to the requirement.

        (2) The Property and Services Branch will continuously screen Washington Headquarters Procurement Requests and SF-344s against available FHWA and local DOT excess property or property available through GSA excess bulletins. If available acceptable excess will be used to satisfy the requisition, requirements. Procurement Requests certified as not availablefrom excess will be forwarded for procurement. SF-344 requests certified as not available from excess will be returned to the originating office for further processing.

        (3) The Property and Services Branch will obtain necessary clearance on those Procurement Requests forwarded by regional offices. Approved Procurement Requests will be returned with an appropriate approval notification. Disapproved Procurement Requests will be returned with explanation for the disapproval.

    4. Washington Headquarters Routing. All Procurement Requests and SF-344s originating in the Washington Headquarters will be submitted to the Property and Services Branch following approvals) in the initiating office as required by paragraph 3f. The Property and Services Branch will:

        (1) administratively review Procurement Requests for completeness (authorized signatures, coding, etc.),

        (2) review both Procurement Requests and SF-344a for compliance with applicable property management requirements, and

        (3) distribute the accounting and delivery report copies of the purchase order for all deliveries made to the was on Headquarters within and outside the District of Columbia.

    5. Field Offices. Regional office establish routing procedures to be followed field offices. In cases where Washington Headquarters approval is required, all requisition reviewed at the regional office level before submission to the Office of Management Systems.

    6. Approval Authority

        (1) Each program office in the Washington Headquarters should forward a listing of individuals who are authorized requisitioners to the Chief, Property and Services Branch. In theregions, the list should be sent to the Director of Administration. Program offices should promptly furnish any subsequent changes to such authority. An annual review of delegations of authority should be made to update them as necessary.

        (2) The primary responsibility for ensuring that documents are approved by properly authorized persons falls initially in the office to which approval authority has been assigned. The Property and Services Branch will verify all approvals on documents (except training requests) originating in, or requiring approval of, the Washington Headquarters. The Director of Administration is responsible for verifying the approvals on documents originating in field offices.

  4. ACQUISITION FROM EXCESS. Approval of the requisition, when it is determined the source of supply will be from excess, shall be accomplished in accordance with the following provisions:

    1. Transfers of Excess Within the FHWA. In no instance will accountable personal property, particularly executive furniture and furnishings, be transferred, traded, or moved between offices without advance clearance by the Property and Services Branch or the accountable officer where the official property records are maintained. Transfer documents will be accomplished as prescribed in Chapter 5.

    2. Transfers of Excess From Other Administrations or Offices of DOT. When a requirement is to be filled by transfer of excess from another Administration or office of DOT, the requesting office will forward the requisition and Standard Form 1103, U.S. Government Bill of Lading (Attachment 18), if required, to the Property and Services Branch in the Washington headquarters and to the accountable officer in the regions. These offices shall then submit Standard Form 122, Transfer Order Excess Personal Property, to the Administration or office in DOT which reported the excess property. Reimbursement of fair value is notrequired for transfers of property within the DOT, unless otherwise provided by law.

    3. Transfer of Excess From Other Federal Agencies

        (1) The transfer of excess personal property from other Federal agencies shall be accomplished by use of Standard Form 122, Transfer Order Excess Personal Property, prepared by the Property and Services Branch in the Washington Headquarters and the regional office in the field. Non-expendable property and accountable stores Material shall be posted to the property records and taken up in the general ledger accounts at the advertised value on the excess report and as shown on Standard Form 122. Where the value of property is not indicate on the excess report, the personal property officer shall establish a unit acquisition cost based on the current market value. The Standard Form 122 shall be prepared in an original plus five copies with distribution as follows:

        
                       Copy No.            Distribution and Use 3 copies                                    plus original GSA
        
        region                                    indicated on excess report.             GSA will return the third copy
        
                                           marked Approved for Transfer."
        
                       3rd Copy            Receiving report.  After
        
                                           (returned from GSA) receipt,                                send to Finance
        
                                           Division or regional
        
                                           fiscal office to support
        
                                           capitalization.
        
                       4th copy            Receiving report.  After
        
                                           receipt, sent to personal 
        
                                           property officer for posting.
        
                       5th copy            Send to office that originated
        
                                           the requisition for transfer
        
                                           of excess property.
        
        

        (2) Shipping instructions must be provided on the Standard Form 122. If the transfer is to be accomplished by other than pickup by consignee, the holding agency shall be advised to issue a Government Bill of Lading chargeable to the appropriation code provided on the Standard Form 122, or a Bill of Lading may be sent to the holding agency for use.

  5. DONATED PROPERTY

    1. Whenever property is available to the FHWA as a donation from non-Government sources, any office desiring to acquire such property shall initiate Form DOT F 4200.1, Procurement Request, in the usual manner. Upon approval, acquisitions shall be documented by the preparation of Form FHWA-1363, in triplicate, by the accountable officer. The report shall show the source, completely describe the property, current value and reference to any document or correspondence relating to the property. The property custodian receiving property shall date and sign the original, retain one copy, and forward the original and one copy to theaccountable officer who shall forward a copy to the Finance Division (HFS-23) after review. If the property custodian has the basic file of correspondence relating to the donation, it should be forwarded to the accountable officer with Form FHWA-1363.

    2. Donated property will be capitalized in accordance with the provisions of Chapter 2, paragraph 2d.

  6. CODING DOCUMENTS

    1. For identification purposes, the following forms shall be numbered in accordance with paragraphs 6b and 6c below:

      DOT F 4200.1, Procurement Request (Attachment 5)

      Form FHWA-1363, Report of Transfer of Property (Attachment 3)

      Form FHWA-13641) Report of Review of Property Attachment 1)

    2. The numbering of the above documents should be established at the following levels:

        (1) Washington Headquarters Offices. The numbering of documents may be at the division level or higher. Where assigned at the division level, higher offices may either number their own documents or have them numbered through one of their divisions.

        (2) Field Offices. The numbering of documents should be assigned in each separate geographical office location in which the documents are initiated.

    3. Using the organization code (see FHWA Order H 2700.2) as a prefix, each controlling office will number its documents in consecutive order, for each type of document starting at the beginning of each fiscal year (October 1).
      
                Example - Operations and Services Division (83-21)
      
                          Organization - Fiscal Year - Requisition
      
                          Number
      
                          83-21            7                001
      
      

    4. The fiscal coding structure is contained in FHWA Order H 2700-2.2. All Procurement requests initiated under the provisions of this Manual shall be appropriately coded in the initiating office to show appropriation number, organization, activity, function/project, fiscal year, and object code.

CHAPTER 4. UTILIZATION

  1. GENERAL. This chapter sets forth procedures for proper utilization of personal property, including use and replacement standards for office furniture, furnishings, and equipment, and maintenance and repair of office equipment.

  2. RESPONSIBILITIES

    1. Every employee shall be responsible for the proper use and protection of all property that may come into his/her custody or control.

    2. Except in emergencies threatening loss of life or property or as may be authorized by legal authority, no employee shall use or permit any other person to use Government property for any purpose other than performance of work of the Government.

    3. No employee shall appropriate for personal use any article of Government property that has been ordered abandoned or destroyed.

    4. The criminal code of the United States provides penalties for the theft, embezzlement, conversion of, or willful damage to Government property (18 U.S.C. 641 and 1361).

  3. FURNITURE

    1. Level of Assignment. Office furniture and related furnishings shall be assigned to individuals in accordance with the use standards prescribed in this chapter. Standards, criteria and allowances listed represent limitations. Assignments of lower levels or lesser quantities are permissible. Compatible office furnishings are subject to the same grade limitations as office furniture. The levels of furniture and their authorized use are as follows:

        (1) Level A - Executive. The use of executive type office furniture shall be limited to personnel in the Senior Executive Service (SES) and above or their equivalent. This type of furniture includes all items of executive wood furniture consisting of, or comparable to, the traditional and modern furniture and related items illustrated in the General Services Administration (GSA) Supply Catalog and listed in Federal Supply Schedule FSC Group 71, Parts IIA and IIC (formerly FSC Group 71, Parts VI, XII, and XXXI).

        (2) Level B - Middle Management. The use of middle Management type furniture shall be limited to personnel in grades GS/GM 13 through GS and above or their equivalent. This type of furniture includes all items of unitized wood office furniture and related items illustrated in the GSA Supply Catalog and listed in, or comparable to, Federal Supply Schedule FSC Group 71, Part IIB (formerly FSC Group 71, Part VIII).

        (3) Level C - General. The use of general office furniture shall be authorized for personnel in grades GS-1 through GS-12 and above or their equivalent. This type of furniture includes all items of contemporary steel, general steel, and general wood office furniture and comparable items listed in the GSA Supply Catalog.

    2. Assignment of Office Furniture to Staff Support Personnel. When it has been determinant at executive and middle management personnel are entitled to officefurniture and furnishings on the basis of the criteria in paragraph 3a above, the Associate Administrator for Administration or the Regional Director of Administration or his/her designees may authorize similar or matching office furniture to be assigned to secretaries and staff assistants whose duties are in direct support of these personnel, and are located in contiguous areas. Staff support personnel in space Dot contiguous to the executive or manager shall be provided furniture commensurate with their work assignment and grade.

    3. Table of Furniture Allowances. The table of furniture allowances shown below shall apply:
      
                        TABLE OF FURNITURE ALLOWANCES
      
                     SES       GS/GM-15  GS/GM     GS-1
      
                                         13414     to 12
      
      Item           Level A   Level B   Level B&C Level C
      
      Desk, conference         I  (a)    1  (b)    I  (b)
      
      Desk, flat top 1  (a)    1  (c)    1 (c)     I (a)
      
      Desk, typist's                               1 (a)
      
      Chair, desk    1         1         1         1
      
      Credenza/storage
      
         unit        1         1         1  (a)    1 (f)
      
      Telephone stand         1               1               1         
      
      Bookcase       1         1         1         1 (f)
      
      Chair, side      (d)      (d)          (d)    (d)
      
      Table, conference       1               1 (b)1 (b)
      
      Sofa           1         1 (b)
      
      Easy chair     2    1
      
      Coffee table   1    1 (b)
      
      End  table     2    1 (e)
      
      Lamp,   table  2    1
      
      Costumer       1    1    1         1         1 (f)
      
                LEGEND
      
                (a)  Choice of one
      
                (b)  Supervisory position
      
                (c)  Nonsupervisory position
      
                (d)  As many as required
      
                (e)  Optional in place of table and four side chairs
      
                (f)  When required
      
      

    4. Exceptions. The Federal Highway Administrator or his/her designee may authorize exceptions to these use standards, provided that such exceptions are in writing, include adequate justification and are reviewed no less frequently than every two years.

    5. Retention of Currently Assigned Furniture. Individuals assigned furniture, prior to the issuance of these use standards, which exceeds levels permitted by paragraphs 3a or 3c above, shall be permitted to retain such furniture unless the officials in paragraph 3d above determine such assignment is not appropriate.

    6. Organizational Furniture. Office furniture and related furnishings not assigned to specific individuals, such as file cabinets, coat racks, and portable partitions, shall be considered organizational furniture and are not covered by these use standards.

  4. EQUIPMENT

    1. Electric Typewriters. Because of recurring changes in this category, current use standards as prescribed by GSA regulations will be controlling and should consulted when acquiring such equipment.

    2. Electronic Office Machines. This category includes such equipment as hand-held calculators, desk-top calculators, and dictating equipment. When the need for a machine has been determined, the following standards shall be used in determining the type of machine to be acquired.

        (1) Features required in a machine for a particular operation should be determination advance. Makes and models of machines having such features should be evaluated carefully with a view to the selection of the machine which will result in the lowest overall cost to the Government.

        (2) Procurement requests for the purchase of electronic office equipment shall include a justification specifying the essential features and/or capabilities of the equipment. Thisjustification shall describe the planned usage of the machine including the applicable type of computations necessary to meet the requirements of the requisitioning office.

    3. Word Processing Equipment. Requirements for obtaining and utilizing word processing equipment are contained in FHWA order 1370.2, Acquisition, Transfer, and Disposal of Word Processing Equipment# dated May 9, 1979.

    4. Automated Data Processing (ADP) Equipment. Requirements for obtaining and utilizing ADP equipment are contained in FHWA Order 1370.la, Review, Coordination, and Approval of Automatic Data Processing Projects, dated April 21, 1978.

  5. PERSONAL PROPERTY REVIEWS

    1. General. The FHWA is responsible for ensuring that its furniture and equipment assets are being properly and effectively utilized. For accountable items, information made available through the accountable property system shall be used, on a continuous basis, to evaluate proposed acquisitions and to assess current assets in relation to actual needs. Additionally, action shall be taken as necessary with regard to all and equipment items to ensure that:

        (1) items assigned for use meet current needs, and

        (2) items are being used for their originally intended purposes.

    2. Periodic Onsite Utilization Surveys

        (1) Periodic onsite utilization surveys shall be made of all furniture and equipment being used for office or administrative support purposes. These utilization surveys shall be made at least every two years. At remote facilities where no property custodians or property personnel are located, such surveys may be conducted in conjunction with physical inventories of accountable property where inventories are performed less often than every two years.

        (2) These surveys shall be in the form of a walk-through inspection of each custodial area having such furniture assigned and may be concurrently performed with the biennial inventory, Such surveys may be conducted by property custodians and servicing property organization personnel jointly or individually as deemed appropriate by the servicing property organization.

        (3) If property personnel do not actively participate in the onsite surveys, specific guidelines for conducting the surveys shall be provided to custodians performing the walk-throughs. In such instances, written results of the surveys shall be provided to the servicing property organization.

        (4) Onsite surveys are to be planned and conducted in such a manner that utilization determinations can he made and any necessary corrective actions can be initiated as a result,,of each custodial area inspection. In addition to the utilization@determinations reflected in paragraph 5a above, onsite surveys shall also be use,' as,a means for identifying items in Deed of repair or rehabilitation.

  6. MAINTENANCE AND REPAIR - WASHINGTON HEADQUARTERS

    1. All requests for repair and overhauling of office equipment (typewriters, adding machines, calculators, cameras, dictating and transcribing equipment, cop' machines, etc.) should be made to the Property and Services Branch. Requests for refinishing or rehabilitation of office furniture shall be submitted on Form POT F 4200.1, describing and condition of the furniture and its location.

    2. Authorization must be obtained from the Property and Services Branch prior to any maintenance or repair of office equipment.

  7. REPLACEMENT STANDARDS

    1. Furniture. Furniture shall not he replaced unless the estimated cost of repair or rehabilitation (based on CSA term contracts), including any transportationexpense, exceeds, at least 75 percent of the cost of a. new item of the same type and class (based on prices as shown in the current edition of the GSA Stock Catalog, applicable Federal Supply Schedules, or the lowest available market price). An exception is authorized in those unusual situations when rehabilitation of the furniture at 75 percent of the cost of a new item would Dot extend its useful life for a period compatible with the cost of rehabilitation.

    2. Office Machines. Replacement of office machines shall be in accordance with the standards prescribed below. The acquisition cost of comparable machines may be obtained from contracting offices. Estimated repair or overhaul costs shall be obtained from contractors providing service under GSA term contracts, where provided, or at the lowest rate available from other sources. Costs obtained shall include transportation costs.

        (1) Electrically operated office machines such as typewriters, adding machines, and desk calculators (excluding the electronic type) under 12 years of age or manually operated office machines under 15 years of age shall, not be replaced unless,

          (a) the estimated one-time repair or overhaul cost of a machine under eight years of age exceeds 50 percent of the replacement cost for a comparable new model, without regard to trade-in or sale value; or

          (b) the estimated one-time repair or overhaul cost of a machine eight years of age and over exceeds 25 percent of the replacement cost for a comparable new model, without regard to trade-in or sale value.

        (2) Electronic office machines such as calculators, accounting machines, cash registers, and dictating equipment shall be replaced after expiration of the warranty period if the estimated one-time repair cost exceeds 80 percent of the replacement cost of a comparable new model.

    3. Exceptions. When unusual circumstances justifyreplacement of a machine at a date earlier than would be permitted by application of these standards, a written justification for such replacement shall be prepared by the Property and Services Branch or the regional accountable officer, and the replacement of the machine may be made.

CHAPTER 5. DISPOSITION

  1. GENERAL. This chapter prescribes procedures covering the disposition of personal property in the custody of the FHWA. For transfer of excess Federal personal property to States, see Chapter 8. For policy and procedures for providing Government property to contractors, see Federal Acquisition Regulation 48, Part 45-Government Property. If additional information related to contractors And property is required, contact the Washington Headquarters Office of Contracts and Procurement.

  2. EXCESS PROPERTY. In keeping with sound economic practice, all personal property not needed or utilized sufficiently should be declare excess, or exchanged or traded in for similar items. Periodic surveys will be conducted by property custodians to ensure that all property not needed or utilized sufficiently is disposed of properly.

    1. If a field office plans to dispose of printing and reproduction equipment "Word, processing equipment, audiovisual equipment or electrically operated office machines (costing in excess of $1.000 per unit), clearance must be obtained for the Property and Services Branch. Clearance for disposing of Automatic Data Processing (ADP) equipment, for both the field and Washington Headquarters, must be obtained from the Data Systems Division (HMS-40).

    2. In the Washington Headquarters, property custodians will transfer excess property to the Property@ and Services Branch for appropriate action using a Form FHWA-1363, Report of Transfer of Property (Attachment 3).

    3. In the field offices, property custodians will forward a Form FHWA-1363 to the appropriate regionalaccountable officer wherever property is declared excess.

    4. Upon receipt of Form FHWA-1363, the accountable officer will screen the identified property, or evaluate the benefits of trading it in, in the following sequential order: (1) screen for possible use in other custodial offices within the accountable area,(2) contact other accountable offices within FHWA for possible use, (3) evaluate the benefits of trading in the property for similar items, (4) notify DOT, screen for possible use within the DOT, and (5) declare the availability of property to GSA for possible use within other Federal agencies or State highway agencies. The following procedures will apply as appropriate:

        (1) Transfers Between Custodial Offices Within an Accountable Office. The accountable officer will forward all copies of Form FHWA-1363 to the receiving custodial office. Upon receipt of property, the receiving property custodian will sign and date the forms and forward the original to the accountable officer for posting, provide one copy to the releasing property custodian, and retain one copy.

        (2) Transfers Between Accountable Offices of the FHWA. The accountable officer will forward Form FHWA-1363, after inserting the acquisition cost of the items, to the receiving accountable officer. He/she will forward all copies to the receiving custodial office. Upon receipt of property, the receiving property custodian will sign and date the Form FHWA-1363 and distribute copies as necessary assuring that the receiving and releasing accountable officers are provided one copy. A copy should also be forwarded to the Finance Division (HFS-23).

        (3) Trade-Ins. When property declared as excess cannot be placed within FHWA, the feasibility of trading it in is evaluated by the accountable officer.

          (a) When office machines meet the replacementstandards prescribed in Chapter 4, paragraph 7, or are unable to meet program requirements, they can be traded in (if there are no other identified uses) on the purchase of the new items in accordance with applicable GSA contracts wherever possible.

          (b) An authorized representative of the vendor receiving the trade-in will sign all copies of the Form FHWA-1363. The accountable officer, after inserting the average value of the item and posting the item to the official property records, will forward one copy to the releasing property custodian, forward the original to the Finance Division (HFS-23) and retain one copy.

        (4) Transfer to Other Administrations or Offices of POT

          (a) Washington Headquarters. The Property and Services Branch will submit Standard Form 122, Transfer Order Excess Personal Property, directly to the Office of the Secretary of DOT.

          (b) Field. Accountable officers will submit Standard Form 120, Report of Excess Personal Property (Attachment 19), to GSA, and copies of the completed forms shall be simultaneously transmitted by the field offices to other Departmental elements in accordance with the. distribution arrangements set forth in Attachment 20, Distribution List for Reports of Excess Personal Property. Attachment 20 prescribes the report distribution list to be used for property within specified Federal Supply Classification Group/Classes. For 20 calendar days following transmittal of the excess report, transfer requests received from Department elements shall be given precedence over any other transfer requests and transfer shall be effected. Excess may be transferred directly to another DOT element when a need for such property hasbeen made known prior to reporting to GSA. Excess may also be transferred directly to another Federal, agency to meet a known need without reporting to GSA, provided, however, that the property has been screened within the Department for a period of 20 calendar days using the distribution list set forth in Attachment 20. Transfer requests received from activities within the Department shall take precedence over any other transfer requests. Transfers of excess property within the Department may be without reimbursement of fair value,

        (5) Transfers to Other Federal Agencies Through GSA. Agencies can acquire personal property from the FHWA by use of Standard Form 122. The original and one copy of the Standard Form 122, approved by GSA for transfer, will be forwarded to the FHWA holding office by the GSA regional office. The Standard Form 122 may be forwarded by the requesting agency directly to the FHWA holding office for transfer, except for certain restricted items such as ADP equipment.

          (a) All transfers of excess personal property between Federal agencies may be without reimbursement, of fair value, except as specified in Federal Procurement Management Regulation (FPMR) 101-43.315-3. When reimbursement of fair value is required, the fair value proceeds shall be, deposited in the Treasury to general fund receipts by the releasing agency.

          (b) The FHWA is responsible for, and bears the cost of care and handling of, its excess property pending-disposition. The direct cost incurred (not to include overhead or administrative costs), incident to the transfer, is chargeable to the receiving agency. Only costs incurred in the actual packing, preparation for shipment, and loading, may be recovered by the FHWA. Such costs are reimbursed by the receiving agency upon appropriate billing. Individualcollections for the expense of care and handling amounting to $100 or less, where transfer is otherwise without exchange of funds, should be waived by the FHWA as uneconomical to collect.

        (6) Surplus Property. Excess property reported to GSA, and not transferred to other agencies, shall be deemed surplus by GSA. The FHWA is then notified that GSA will place it on sale,

          (a) Sale of Property. When property has been declared as surplus by GSA, FHWA will be requested to submit a Standard Form 126, Report of Personal Property for Sale (Attachment 21), to the GSA. If a trade-in allowance had been offered previously by vendor to FHWA, but not accepted for sale this information should be noted on the Standard Form 126. Property which is dangerous to public health or safety, e.a., a chemical compound which is susceptible to flames or explosion, shall not be sold without first rendering it innocuous or providing adequate safeguards. After sale of the property, the FHWA will be notified of the proceeds of the sale and such information should be retained for inclusion in the Annual Report of Exchange/Sale of Personal Property. This notification should be used to adjust general ledger accounts and property inventory records.

          (b) Scrap. Scrap is unserviceable property that has no value except for its basic material content. The GSA will make determinations on the sale or other disposal of scrap. Scrap in the Washington metropolitan area is covered by GSA contracts. Field offices should determine availability of contracts for their area. Accumulations of scrap awaiting disposition shall be maintained as orderly as possible, in locations removed from public view.

    5. Nominal or No-Value Property. if excess property isfound to have no commercial value, or if the estimated cost of its continued care and handling would exceed the estimated proceeds from its sale, one of the following means of disposal may be used: Donation to a public body, as prescribed by FPMR 101-44.7; or abandonment or destruction as prescribed by FPMR 101-45.5.

  3. ANNUAL REPORTS

    1. Exchange/Sale of Personal Property

        (1) Regional offices shall submit a summary report in memorandum form reflecting separate data for overseas and domestic transactions to the Property and Services Branch by November 1. of each year. Negative reports are required.

        (2) The report shall. clearly identify the type of property exchanged or sold by the two digit Federal Supply Classification Group and show total. acquisition cost per group. See Prohibited Actions and Conditions (Attachment 22@for items not covered under the provisions of this Order.

        (3) This information is submitted by the Property Services Branch to OST in accordance with FPMR 101-46.407.

    2. Utilization and Disposal of Excess and Surplus Personal Property

        (1) The accountable officer shall- prepare the Form DOT F 4400.1, Annual Report-Utilization and Disposal of Excess and Surplus Personal Property (Attachment 23) following the close of the period October 1 - September 30.

        (2) The report shall include all reassignments and dispositions of personal property accomplished under the provisions of this chapter.

        (3) Reports are to be forwarded to and reach the Property and Services Branch no later than the 15th day following the close of the reporting period. A negative report is required.

    3. Excess Personal Property to Non-Federal Recipients

        (1) Regional offices shall submit a report in memorandum form to the Property and Services Branch by November l5th of each year (RCS-HMS-20-14). Negative reports are required.

        (2) The report shall include the name, address, and status of each recipient. Examples of the status are cost-reimbursement type contractor, fixed-price type contractor, project grantee, etc. Also include in the report the total original acquisition cost of all property furnished, to each recipient identified by each applicable two-digit Federal supply classification group, in accordance with FPMR 101-43.4701(c)(1).

CHAPTER 6. PROPERTY BOARDS OF REVIEW

  1. GENERAL. This chapter prescribes the procedures or t e review of circumstances surrounding personal property which is lost, stolen, damaged, or which may be abandoned or destroyed.,

  2. PROPERTY BOARDS OF REVIEW

    1. Designation. Property Boards Review shall be designated as follows:

        (1) Washington Headquarters The Chief, Property and Services Branch, shall designate a single Property Board of Review for the Washington Headquarters.

    2. Responsibility. Property Boards of Review investigate and report on the circumstances surrounding damage, lots, theft, destruction, and abandonment of personal property.

        (1) Each Board member will exercise independent judgment, free from influence by recommendations or suggestions of other Board members, employees, or superior officers. Extreme care should betaken by Board members in rendering findings for the disposition of Government property. Consideration of all available evidence should be given.

        (2) In determining the serviceability of property,, the Property Board of Review should take into consideration the expense of reconditioning, transportation, age, and other pertinent facts. Recommendation should indicate whether property should be (a) repaired and restored to use or (b) disposed of and dropped from the administrative control records.

  3. REPORTS OF REVIEW OF PROPERTY

    1. Requirements. Whenever Government personal property is lost, stolen, damaged, abandoned, or destroyed, it shall be the subject of a Report of Review of Property. A separate report is required for each category as indicated on the "Instructions" block of Form FHWA-1364, Report of Review of Property. Property reviews are conducted for the purpose of providing:

        (1) Impartial reports of investigations of circumstances regarding lost, stolen, damaged, or destroyed property, or property which is recommend for abandonment or destruction.

        (2) Recommendations with respect to the liability of employees or private persons for damage to or loss of Government or private property and the reasons therefor.

        (3) Recommendations concerning retention or disposal of property.

    2. Coverage. Reports of Review of Property shall cover (1) circumstances for reporting, (2) responsibility, (3) determination of liability, (4) recommendations, and (5) action by legal or law enforcement officers, if any.

    3. Preparation and Processing. All reports shall be prepared on Form FHWA-1364. Form DOT F 1660.6, Incident Report, is also required when theft or loss isindicated.

        (1) Initiation. All Reports of Review of Property shall be initiated by the property custodian in the office charged with the property. Any employee having knowledge of a condition with respect to personal property requiring the submittal of a Report of Review of Property shall report the condition to the property custodian.

          (a) Washington Headquarters. The property custodian will prepare Form FHWA-1364, retaining one copy, and forwarding the original and one copy to the accountable officer. After the "Recommendation" portion of the report is completed by the accountable officers, the report will be presented to the Board for action. After the Board's findings and recommendations are recorded and signed, the report is presented to the Chief, Property and Services Branch for approval or other appropriate action.

          (b) Field Offices. The property custodian shall prepare reports and retain one copy and forward all other copies to the administrative manger or the accountable officer for completion of the "Recommendation" portion of the report and presentation to the Board for action. After the Board's findings and recommendations other appropriate action.

        (2) Signature. The Chief, Property and Services Branch, or, the respective Associate Regional Administrator for Administration shall sign Form FHWA-1364 in the space "Responsible Administrative Office. Only the original Form FHWA-1364 report need by signed.

  4. DISPOSITION OF PROPERTY. When disposition is approved, the accountable officer will arrange for disposition of property and completion of the "Disposition of Property" portion of the report and remove the disposed items from the property records. A copy of Form FHWA-1364 shall be forwarded to the finance office for posting to the general ledger accounts.

  5. DETERMINATION OF LIABILITY

    1. Government Employees

        (1) When an employee is using Government property on official business and the property is damaged as a result of negligence, usually no attempt to collect cost of damage from the employee will be made. Where circumstances warrant, however, appropriate disciplinary action or action to collect for damages may be instituted.

        (2) Where Government property is damaged by an employee not on official business, with or without negligence on his/her part, consideration may be given to the recovery of damages by the Government from the employee in addition to or in lieu of any disciplinary action which may be taken.

        (3) The questions of damage, negligence, or recovery of damages, however, shall have no bearing in cases where disciplinary action is required to be taken for the unauthorized use of Government-owned passenger motor vehicles under the Act of August 2, 1946 (60 Stat. 810, 31 U.S.C. 638a).

    2. Private Persons. For the purposes of this chapter, assessment of damages to Government property shall be based on the actual or estimated cost to put the property in the same condition as existed immediately prior to the incident causing the damage, or in the event damaged property is not repairable, the amount to be charged will be the difference between its fair market value immediately before it was damaged and its fair market value immediately after it was damaged.

CHAPTER 7. CLAIMS FOR LOSS OF PERSONAL PROPERTY

  1. GENERAL. To prescribe procedures for the settlement and payment of claims against the United States by a civilian officer or employee under the jurisdiction of the FHWA for damage to, or loss of, an individuals personal property incident to his/her services.

  2. AUTHORITY. These procedures are issued pursuant to 31U.S.C. 3721.

  3. CLAIMANTS. Any employee or his/her duly authorized representative may file a claim. If the employee is dead, claims;-nay be filed by the: (a) spouse, (b) children, (c) father or mother, or both, or (d) brothers or sisters, or both. When a proper claim is submitted by a survivor, settlement and payment will be made to survivors in the order named, provided that no payment will be made to a survivor who has submitted a claim where there is a survivor with a higher precedence and who has not waived his/her right to submit a claim. In no event will any survivor be paid more than his/her proportionate share of the total potential amount payable in settlement of the claim.

  4. CLAIMS OFFICER

    1. The Associate Administrator for Administration is delegated the authority to@settle and pay claims under 31 U.S.C. 3721. This authority has been redelegated to the Chief, Operations and Services Division, who serves as the claims officer. Claims by an employee of the FHWA for damage to, or loss of property incident to his/her service, are subject to prior review by the Office of Chief Counsel for legal sufficiency. All claims for personal property loss shall be submitted to the Property And Services Branch (HMS-21) for review and examination by the claims officer.

    2. The FHWA employees who are covered by the terms of the agreement with the Agency for International Development (AID) shall submit their claims as prescribed in AID Handbook No. 23, Chapter 10, dated December 31, 1980 (6FAM 300).

  5. STATUTORY PROVISIONS

    1. Allowability of Claims Under 31 U.S.C. 3721(b). A claim is allowable under 31 U.S.C.3721 (b) only if it meets all the following conditions:

        (1) It arose after the effective date of the Act.

        (2) The claim is presented in writing within two years after the incident occurred.

        (3) If the loss or damage occurred at quarters occupied by the claimant within the 50 States, Puerto Rico or the District of Columbia, such quarters must have been assigned to him or her.

    2. Allowability of Claims Under 31 U.S.C. 3721(c)

        (1) A claim is allowable under 31 U.S.C. 3721(c) only if it meets all the following conditions;

          (a) An employee was evacuated from a country after December 30, 1978, in accordance with a recommendation or order of the Secretary of State or other competent authority which was made in response to incidents of political unrest or hostile acts by people in that country, and that damage or loss resulted from that evacuation or from any such incident or hostile act; or

          (b) that damage or loss results from acts of mob violence, terrorist attacks, or other hostile acts, directed against the U.S. Government or its officers or employees.

        (2) A claim may be allowed under this section only if it is presented in writing within two years after the occurrence.

    3. Allowability of All Claims . In addition to the specific conditions listed above, claims under 31 U.S.C. 3721 must met all of the following conditions:

        (1) The damage or loss of personal property was incident to the employee's service.

        (2) The loss or damage was not caused wholly or partly by the negligent or wrongful act or the employee or other claimant, or the agent or employee of either of them. The claimant must affirmatively demonstrate to the satisfaction of the FHWA that this requirement is fulfilled.

        (3) The claim is substantiated and accompanied by statements of any witnesses and by documentary material or other evidence available relating tothe claim, including the value of the property lost or damaged (see paragraph 10).

        (4) The possession of the property by the employee is determined to have been reasonable, useful, and proper under the circumstances at the time of the loss or damage.

    4. Maximum. The maximum amount allowed on any claims under 31 U.S.C. 3721(b) is $25,000; the maximum amount allowed on any claims under 31 U.S.C. 3721(c) is $40,000. Property may be replaced in kind at the option of the Government. The claimant must furnish satisfactory proof of the value of the property.

    5. Settlement. The settlement of a claim under the provisions of 31 U.S.C. 3721 and FHWA regulations shall be final and conclusive.

    6. Agent's Fees. Title 31 U.S.C. 3721(i) provides as follows: "Notwithstanding a contract, the representative of a claimant may not receive more than 10 percent of a payment claim made under this section for services related to the claim. A person violating this subsection shall be fined not more than $1,000."

  6. ALLOWABLE CLAIMS. Examples of types of losses which would be allowable subject to the reimbursements of this chapter are:

    1. loss of, or damage to, personal belongings where employees are forced to evacuate from the mode of transportation on which they are traveling in the course of their duties;

    2. losses to employees through theft of personally owned hand tools stored at the place of their employment when such storage space is provided by the Government for that purpose;

    3. losses where employees' belongings were stored in Government buildings which were consumed by fire;

    4. losses or damages as a direct result of extraordinary risks to which the employee or the property hasnecessarily been subjected during the performance of official duties, such as in connection with a civil disturbance, public disorder, or public disaster, or efforts to save Government property or human life where the situation was such that the employee could save his/her own property had he/she not so acted;

    5. abandonment or destruction of property by reason of a military emergency or by Authorized direction;

    6. damages incurred due to the unpredictable behavior of animals while the employed performed his/her assigned duties;

    7. losses to employee property in shipments provided by the Government, e.g., via Government vessels, or by Government bills of lading on commercial vessels, on-loading/off-loading incident;

    8. loss of, or damage to, personal and household goods (including motor vehicles and trailers) moved or shipped by an employee incident to the requirements or his/her Government service, with the exception of those items included in paragraph 7 of this chapter, below;

    9. losses where use of property for the benefit of the Government is authorized and approved; and

    10. loss or damage to a privately-owned vehicle when authorized for use on Government business, provided that such loss or damage was not caused by the negligence or misconduct of the employee. Reimbursement is limited to the amount of the loss not paid by the employee's private insurance carrier.

  7. LIMITATIONS ON ALLOWABLE CLAIM. Claims may be limited or disallowed as follows:

    1. claims for theft from the possession of the employee will not be allowable, unless positive evidence clearly establishes the existence of a theft or burglary, and the employee, his/her dependents and agents took all reasonable and practicable protective and security measures;

    2. claims for articles of extraordinary value or which may be easily pilfered such as jewelry, cameras and accessories, binoculars, watches, furs, valuable articles of gold, silver, other precious materials, paintings, relics or antiques other than bulky furnishings, when shipped with household goods or as unaccompanied baggage (shipment includes storage), may be allowed only when properly checked or in the personal custody of the employee, and all reasonable and practicable protective and security measures have been taken. The employee must furnish satisfactory proof that such measures have been taken;

    3. claims for loss of money, currency, bank books, checks, notes, stock ' certificates, bonds, money orders, or travelers checks will be disallowed, except when deposited for safekeeping with an authorized Government agent, or when lost incident to a marine, rail, aircraft, or natural disaster such as fire, flood, hurricane, etc., or when lost under other circumstances clearly indicating that the employee has taken all reasonable and practicable protective and security measures and that a theft or burglary had occurred. Where the theft occurred from the employee's quarters, and claim for such loss is not excluded by paragraphs 5a(3), and 7d of this chapter, the employee must show, among other things, that the property was in a locked container and that the quarters themselves were securely locked;

    4. claims of employees outside the United States for property located in their r quarters when the employee is a local inhabitant are not allowable;

    5. claims for worn-out unserviceable property are not allowable;

    6. claims for loss or damage are limited to the extent not recovered by reason of insurance, indemnity, subrogation, assignment, or other contracts, or torts of third parties;

    7. claims for any losses of insurers and other subrogee are not allowable;

    8. claims for property owned by the United States are notallowable unless the employee is financially responsible for the property;

    9. claims for property normally used for private business or profit are not allowable;

    10. claims for fees for obtaining estimates of the cost of repair of the property damaged will be allowed only if approved in advance by the claims officer as (1) necessary and unavoidable expenses of submitting a claim, (2) reasonable in relation to the value of the property and cost of repairs, and (3) not deductible from the cost of repairs if the work is accomplished by the estimator; and

    11. claims are not allowable for property acquired, possessed, or transported in violation of law, regulations, or orders of competent authority.

  8. INSURANCE. Employees are encouraged to carry private insurance against damage to, or loss of, their personal property, whenever practical, to cover risks specifically excluded or limited by this Manual, such as those discussed in paragraph 7 above. ordinarily, claims are to be satisfied from private insurance first. No claim will be paid that duplicates an insurance payment.

  9. RECOVERY FROM THIRD PARTIES AND ASSIGNMENT OF CLAIMS

    1. When it appears that property has been damaged or lost under circumstances in which an insurer, carrier, warehouse person, contractor or other party may be responsible, the claimant shall make a written and timely claim on such party, preferably before submitting a claim under the provisions of this chapter. No such claim need be made if, in the opinion of the claims officer, it would be impracticable to make a claim or the chances of recovery appear to be insignificant, or circumstances otherwise preclude making a timely claim.

    2. If the claimant has submitted, or intends to submit, a claim in accordance with this Manual, a copy of the demand and any related,,correspondence shall be submitted to the claims officer.' The claimant shall also promptly notify the claims officer of any actionor proposed action by any third party, including offers of settlement, partial settlement or denial of liability. In addition, before accepting any settlement, the claimant shall obtain the approval of the claims officer.

    3. When the amount recovered by a claimant from such a party is equal to, or greater than, the claimant's total loss determined to be allowable as prescribed by this Manual, no further compensation is allowable to the claimant. When the amount recovered from the third party is less than such total loss, the allowable amount from the U.S. Government is determined by deducting the recovery from the total loss.

    4. The claimant shall assign to the U.S. Government, to the extent of any payment accepted by him/her on the claim in accordance with this Manual, all rights, title and interest in any claim which he/she may have against any third person arising out of the incident on which the claim against the United States is based. He/she shall also, upon request, furnish evidence and other cooperation as may be requested, to enable the United States to enforce the claim After payment of the claim by the United States, the claimant shall, upon receipt of any payment from a third party, promptly notify the claims officer and repay to the United States the amount of payments received from all sources in excess of the total loss sustained, as determined by this Manual, up to the amount paid by the Government.

  10. COMPUTATION OF AWARDS

    1. The amount awarded on any item of property will be based upon its estimated fair market value at the time and place of the loss (to the extent practicable).

    2. The amount normally payable for property lost or damaged beyond economical repair is found by determining its depreciated value immediately before loss or damage, less any salvage value. If the cost of repair is less than the depreciated value, it will be considered to be economically repairable, and only the cost of repair will be allowable. As used herein, cost of repair means cost of restoring the property to its condition prior to its damage.

    3. When, at the option of the FHWA, settlement of claims is made by replacement of property in kind, such replacement shall be made with property of equivalent nature, equality, and quantity, as determined by the FHWA.

    4. Depreciation in value of an item is determined by considering, among other things, the type of article involved, its cost, condition when lost or damaged beyond economical repair, and the time elapsed between the dates of its acquisition and accrual of the claim.

    5. Claims for antiques, relics, heirlooms, and items purchased at prices higher than their intrinsic value shall, if otherwise allowable, be allowed only for the reasonable purchase price of substitute articles of a similar functional nature, quality, and quantity.

    6. No allowance will be made for appreciation in the value of property.

    7. Claims are payable under the provisions of this Manual only for such types and quantities of tangible personal property the possession of which shall be determined to be reasonable, useful or proper under the circumstances at the time of loss or damage. Schedules of the maximum amount allowable for specific articles and the maximum quantities allowable will generally be followed in computing awards.

  11. SUBMISSION OF CLAIMS

    1. Claim Forms. Claimants shall submit to the claims officer in duplicate Form FHWA-224, Employee Claim fori Loss of or Damage to Personal Property (Attachment 24), together with one copy of supporting evidence as indicated in paragraph 10b below, and an original and four copies of Standard Form 1034, Public Voucher for Purchases and Services Other Than Personal (Attachment 25) 4 The claimant's careful compliance with the requirements in the preparation of the claim will expedite settlement by avoiding delays arising from theneed to obtain additional information from him/her.

    2. Evidence in Support of Claim. In addition to the information required on the Form FHWA-224 and Standard Form 1034, the following evidence should be submitted when applicable, or a statement should be made indicating why such evidence is not available or practical to obtain.

        (1) General (applicable to all claims)

          (a) Corroborating statement from a person(s) who has personal knowledge of the facts concerning the claims.

          (b) Statement describing property recovered or replaced in kind.

          (c) Itemized bill for repair of damaged property which has been repaired.

          (d) of the cost of repairs from a competent person, sufficiently identified, who is experienced or knowledgeable in the cost of the needed repairs in the current market.

          (e) Proof of value or cost in the form of purchase receipts or similar documents.

          (f) For a claim filed by an agent or survivor, a power of attorney or other satisfactory evidence of authority and standing (see paragraph 3 of this chapter).

          (g) Statement concerning any insurance coverage of any warehouser, carrier or other third party responsibility, and any reimbursement or recovery obtained from such insurer or third party. The identity of the insurer or other third party, the type of insurance or other coverage, Andean claim or demand by the claimant upon such party should be described and copies of correspondence attached. If the claimant has insurance or a basis for a claim or demand upon such third party, and has not submitted a claim or demand, his/her failure to do so should be explained (seeparagraph 8 of, this chapter)

          (h) Copy of order-or other evidence to establish claimant's right to be or to have his/her property located, at place of loss or damage.

          (i) Copy of police report, if applicable.

        (2) Thefts or Losses in Allowable Quarters or at Other Authorized Places. In addition to items listed in paragraph 10b(1), include the following:

          (a) Geographical location of the loss.

          (b) If in quarters, whether or not they were assigned or provided in kind by the Government and to whom, and whether they were regularly occupied by the claimant; or, if in storage,, name of authority, if any, who designated such place of storage.

          (c) Security measures or precautions taken to protect the property involved. Attention will be given to the degree of care normally exercised in the locale of the loss because of any unusual risk involved.

          (d) Facts and circumstances surrounding the loss or theft, such as how the larceny, robbery, or burglary occurred, the property recovered and reports made at the time to police or others.

        (3) Transportation Losses. In addition to items listed in paragraph 10b(l), include the following:

          (a) Copy of orders authorizing the travel, transportation or shipment, or, a statement explaining their absence and setting forth their substance.

          (b) Copy of all bills of lading, and inventories of property shipped.

          (c) Description of efforts taken to locatemissing property.

          (d) Where property was turned over to a transportation or supply officer or contract packer or shippers a statement indicating the identity or designation of such party, the date and place where the property was turned over and its condition, date of shipment and reshipment And copy of all manifests, bills of lading and contracts, date and place of delivery and unpacking of property for claimants, statements of disinterested witnesses as to property's condition when received, whether or not damage was caused by negligence of a Government employee acting within the scope of his/her employment, and whether or not the last carrier was given a receipt.

        (4) Money, Intangibles or Other Property Deposited for Safekeeping, Transmittal or Other Authorized Disposition. In addition to items listed in paragraph 10b(l), include the following:

          (a) Identity of the person or persons who received the property and any others involved, and the disposition requested.

          (b) Identity of the authority who authorized such person or persons to accept the property.

          (c) Receipts and written statements explaining the failure to account for the property or its return to the claimant.

        (5) Property Used for Benefit of Government. In addition to items listed in paragraph 10b(l), include a statement from proper authority that the property was required to be supplied by the claimant in the performance of his/her official duty at the request or direction or with the approval of superior authority.

    3. Waiver of Required Evidence. Any of the evidence required above may be waived in instances where the claim appears otherwise reasonable and proper and theobtaining and submission of such evidence would be unduly costly or time-consuming in relation to the amount of the claim.

    4. Investigation of Claims. All claims occurring and filed at posts abroad must be investigated by a claims investigation officer at the post (usually an executive, administrative or general services officer of the agency involved) and such officer must prepare a report to be included with the claim. For claims occurring and filed in the United States, the claims investigation officer must be a U.S. Government employee, other than the claimant, who has the most complete knowledge of the facts involved. The claims investigation officer shall conduct such investigation as he/she deems appropriate and shall include in his/her report the results of such investigation. The report evaluates the credibility of statements by the claimant and corroborating witnesses and includes recommendations as to the reasonableness of the claim. Upon completion of the investigation and preparation of the Form FHWA-78, claims Investigating Officer's Report (Attachment 26), or equivalent form, the file is forwarded to Washington Headquarters for adjudication.

CHAPTER 8. TRANSFER OF EXCESS FEDERAL PERSONAL PROPERTY TO STATES

  1. PURPOSE. To prescribe procedures for effecting transfer of materials and equipment declared excess to the needs of Federal agencies to State highway agencies for highway purposes.

  2. DEFINITIONS

    1. Excess Property - property which has been reported to the General Services Administration (GSA) by a Federal agency as being excess to its needs and which is being made available to the GSA pending a canvass of other Federal agencies for possible need.

    2. Surplus Property - Federal property for which the GSA has determined there is no need by any Federal agency.

  3. AUTHORITY

    1. The transfers which would be made to the State highway agencies under this procedure are based on the following provisions of Title 23, United States Code, Section 308(b): "Appropriations for the work of the Federal Highway Administration shall be available for the expenses of warehouse maintenance and the procurement, care, and handling of supplies, materials, and equipment for distribution to projects under the supervision of the Federal Highway Administration, or for sale or distribution to other Government agencies, cooperating foreign countries, and State cooperating agencies, and the cost of such supplies and materials or the value of such equipment, including the cost of transportation and handling, may be reimbursed to current applicable appropriations." (Underscoring supplied.)

    2. The authority whereby the FHWA may transfer property to State highway agencies is permissive only, and such transfer is not a statutory duty.

  4. RESPONSIBILITY. The responsibility for approving the transfer of materials and equipment declared excess to the needs of Federal agencies to State highway agencies for highway purposes, resides with the Associate Administrator for Administration and Regional Administrators. This authority may be redelegated (see FHWA Order M 1100.1, FHWA Delegations and Organization Manual, Part I, Chapter 4.)

  5. GENERAL

    1. The U.S. Comptroller General has ruled in unpublished decision B-132356, dated July 29, 1957, that the FHWA may not acquire for transfer to a State agency any excess Government-owned property needed by another Federal agency for its own use. Therefore, any requests from the FHWA for acquisition of such property for transfer to State cooperating agencies will not be approved by the GSA until it has determined that the property is not wanted by any other Federal agency for its own use. Property owned by the FHWA must be reported as excess to the GSA before it can be considered for transfer to a State (see Chapter 5, paragraph 2). Action by the State and the FHWA to apply for transfers of excess property may proceed, however, without waiting for such determinations to bemade. In the aforementioned decision, the Comptroller General also ruled that excess Federal property may not be transferred by the FHWA to a State without reimbursement for any costs incurred by FHWA, but that no surcharge could be imposed.

    2. The FHWA is not authorized to acquire excess property for retransfer to State highway agencies that cannot legally be acquired for use by the FHWA itself (e.g., aircraft).

    3. In general, property declared excess is retained in this classification for a period of 60 days from the date it is reported to the GSA by the holding agency. If no Federal agency requests transfer of the property during this 60-day screening period, it is then reclassified as surplus (see Chapter 5, paragraph 2d(6)). The 60-day period may be extended upon request through the GSA which will arrange with the holding agency for a suitable extension. Inasmuch as the rights of a Federal agency to obtain excess property are paramount to those of any non-Federal agency, private organization, or individual, property that has been classified as surplus but not yet sold may be returned to the excess classification upon request to the GSA by a Federal agency.

    4. It may occasionally happen that a Federal agency has in its possession property that is excess to its needs but that has not been so reported to the GSA or, if reported, has not yet appeared on any circulated list. If a State learns of property in this category and desires to obtain it, the same procedures as set forth in paragraphs 5 and 7 of this Chapter may be used, and if the GSA finds that the property is in fact available, the transfer will be effected under the same principles and procedures as are applicable to other excess property.

    5. In instances where more than one State within a region is interested in acquiring the same items of excess property, it will be left to the discretion of the Regional Administrator to decide upon an equitable allocation. Allocation on a "first come, first served" basis should, in general, be followed. There may be other considerations, however, such as need orallocations previously made. In the event that two States in different FHWA regions desire the same items, the allocation shall be at the discretion of the involved Regional Administrators.

    6. In general, all contacts with installations holding excess property will be made by the State highway agencies. It should be understood, however, that the GSA has no authority to conduct business directly with a non-Federal agency in effecting transfers of excess Government property. For this reason, any contacts made by employees of the State highway agencies in accordance with the principles and procedures of this directive should be made as authorized representatives of the FHWA. Therefore, the Regional Administrator or designee, as appropriate, will give the State employees who are to inspect or obtain delivery of the property a letter or other form of identification specifically designating them as authorized representatives, but not employees, of the FHWA for this purpose. It may be desirable for a FHWA employee to accompany State personnel in the initial contact and occasionally thereafter as the situation warrants.

    7. The State highway agencies, if they so desire, may from time to time submit to the FHWA, for transmittal to the GSA, lists of the types and quantities of excess Government property they would like to obtain. GSA Form 1539, Request for Excess Personal Property (Attachment 28), is available for this purpose (see Federal Property Management Regulations (FPMR), 41 Code of Federal Regulations (CFR) 101-43.4902). This procedure will assure that notice is given if and when such items of property become available.

  6. INFORMATION OF AVAILABILITY

    1. Equipment and materials declared excess by any agency of the Government are listed in catalogs and bulletins issued by the GSA. Arrangements have been made by the GSA to have its regional offices furnish copies of such listings that contain items of highway interest to regional and division offices of the FHWA, with copies for the State highway agencies in the general area of the available property. The GSA regional offices are listed in FPMR 101-43.4802.

    2. Upon receipt from a State of an expression of interest in any items listed as excess to a Federal Government activity, the Regional Administrator or designee, as appropriate, should review the list to ascertain that the items requested are appropriate for use in the highway program. After receiving the acquisition inventory sheet from the States, the appropriate regional office of the GSA will take necessary action to freeze or reserve the equipment for the State.

  7. TITLE DOCUMENTS. Before possession of certain personal property is taken, inquiry should be made as to whether or not titles or other documents to show proof of ownership are held by the releasing agency and that the title or other documents showing proof of ownership will be furnished by the releasing agency to the acquiring activity, provided the documents are transferable. Title or proof of ownership documents are necessary for any equipment that requires licensing by State or Federal laws or regulations. This includes, but is not limited to, motor vehicles and trailers.

  8. ACQUISITION PROCEDURES

    1. For purchase requests of excess personal property, the State highway agencies shall prepare Standard Form 122, Transfer Order Excess Personal Property (Attachment 8), blocks 3 through 8 and 13. The State should also prepare a transmittal letter which should indicate the following:

        (1) that the equipment or materials have been inspected;

        (2) that the equipment or materials are needed for and will be used exclusively for highway purposes, including road maintenance, and a further statement, in the case of equipment, that it will be so used throughout its useful life;

        (3) that the State will reimburse the FHWA if costs are incurred by the latter in acquiring the property and transferring it to the State highway agency;

        (4) that the State will assume full responsibilityfor inspection, transportation, servicing, storage, and utilization of the equipment, will make all necessary arrangements with the holding agency for its delivery, and will bear all costs in connection therewith;

        (5) that the State will transport the items with its own facilities or make necessary arrangements with the holding agency for its delivery, and will bear all costs in connection therewith; and

        (6) the estimated maximum amount to be included in the transfer order for handling by the holding agency as determined from the holding agency at the time of inspection.

    2. The transmittal letter and Standard Form 122 are forwarded to the appropriate FHWA regional or division office for review and processing. If the submission is to a division office, but is to be handled by the regional office, that office should submit the original and six copies of the Standard Form 122 to the appropriate FHWA regional office following concurrence and processing. If available, a copy of the related Standard Form 120, Report of Excess Personal Property (Attachment 19), should be attached to the copies of the Standard Form 122 to facilitate review by either the regional office or the division office.

    3. The regional or division office, as appropriate, should complete blocks 1, 2, 9, 10, and 11 (if applicable) of the Standard Form 122. Also, block 13 should be annotated to include the statements required in paragraph 7c(2), below. This information may be inserted either by typewriter or rubber stamp.

        (1) The original and three copies of the Standard Form 122 are to be forwarded by the FHWA regional office or division office, as appropriate, to the responsible regional office of the GSA. Two copies are to be retained by the FHWA, one for accounts and one for the suspense file. one copy is forwarded to the State highway agency for certification of receipt and returned to the appropriate FHWA regional office or divisionoffice when delivery has been made.

        (2) All FHWA regional or division offices shall include a statement on Standard Form 122 requesting the holding agency representative and the authorized State representative to sign and date the second copy of the Standard Form 122 to acknowledge issue and receipt of each line item of property. The statement should also request the holding agency to mail the receipted second copy of the Standard Form 122 directly to the FHWA regional or division office, as appropriate, for use in billing the State. The appropriate regional or division office will also insert the following statement in the body of the Standard Form 122: "No expenses for shipping and handling, other than itemized herein, shall be incurred on the account of the Federal Highway Administration, and no amounts other than indicated herein are payable from the appropriation indicated. Any shipment to be made in connection with the transfer of this excess property shall be made "Collect" commercial bill of lading." If the exact shipping and handling expenses are not known at the time the SF-122 is completed, an estimate should be used.

        (3) At this point, the FHWA regional or division office should review and compare the receipted copy against the copy retained in their office for possible revisions or additions to Standard Form 122. The appropriate regional or division office shall follow up to ensure that GSA-approved copies of the Standard Form 122 and receipted copies from the holding agencies are received promptly.

    4. No additions or substitutions of items will be permitted after a Standard Form 122 has been approved by the FHWA. In these cases, the States shall prepare and forward a new purchase request and a StandardForm 122 to the FHWA regional or division office.

    5. Each FHWA regional office is to furnish to the appropriate GSA regional office the names of FHWA officials authorized to approve the Standard Form 122 and the names of State officials authorized to inspectand/or receive excess personal property. An updated list should be furnished to GSA as changes occur.

  9. REIMBURSEMENT

    1. The FHWA will not be required to reimburse the holding agency for the fair value of excess property except in those instances outlined in FPMR 101-43.315.3. If such reimbursement is due, the holding agency will generally make the fact known as a condition of transfer at the time the property is offered.

    2. On those occasions when the FHWA is charged for the fair value of excess property by the holding agency, the FHWA shall obtain reimbursement in the same amount from the recipient State.

  10. ACCOUNTING PROCEDURES

    1. In instances where the FHWA will be required to reimburse the releasing or holding agency, allotments should be requested from and approved by the Office of

      Fiscal Services, Budget Division before transfer orders are issued for such excess personal property. The same procedure will be followed when it is necessary for the FHWA to initially pay the costs of handling and/or shipping and later obtain reimbursement from the State.

    2. Form FHWA-370, Advice of Funds Available for Obligation FY 19-, will be issued allotting funds to provide obligational authority to the regions. Prescribed accounting procedures shall be followed.

    3. The Standard Form 122 should show the amount of reimbursement to the holding agency, where applicable, plus maximum estimated handling costs as determined from the holding agency, and the FHWA coding symbol prescribed in FHWA Order H 2700.2, FHWA Accounting Policy and Procedures Handbook, Volume IV, Chapter 3. Only transfer orders covering acquisition on a payment basis need be entered on the allotment ledger sheet. The regional office will transmit the necessary documentation to support billing of the State to the Finance Division (HFS-23). The Finance Division will bill the State on General Accounting Office (GAO) Stock Form 1114, Bill for Collection (Attachment 29) for thefair value of the material or equipment in the same amount as the FHWA was billed by the holding agency, and for the actual shipping and handling costs. The amount billed shall be entered in the general ledger accounts in conformance with pro forma entries prescribed in FHWA Order H 2700.2, Volume II, Chapter 3, upon receipt of the signed copy of the transfer order from the State. The Finance Division shall follow up to ensure that prompt payment is received from the States.

    4. Reimbursement to a Federal holding agency should be made from the allotment provided for that purpose. In those cases where reimbursement to the holding agency is required, including handling and shipping costs, the corresponding amount shall be deposited to the credit of the appropriation.

    5. Equipment acquired for transfer to the States will not be taken up in the equipment account of the region. Form FHWA-1363, Report of Transfer of Property, or Form FHWA-1364, Report of Review of Property, need not be prepared.

  11. USE BY COUNTIES

    1. Property acquired by a State highway agency in accordance with the provisions of this chapter may be utilized by counties within the State, subject to the following conditions:

        (1) The excess property will be used primarily on the Federal-aid primary or secondary highway system.

        (2) The State highway agency is satisfied that the county road unit is suitably organized and equipped to perform maintenance of Federal-aid projects.

    2. Although the excess property may be utilized by the counties, there is no authority for transfer of the title to the equipment or recoverable materials. If the State desires, it may make arrangements with the county for reimbursement for the use of such equipment and materials.

    3. Catalogs will not be supplied to county highway agencies by the GSA. County officials should go to their State highway agency for such information.

  12. ANNUAL REPORT - EXCESS PERSONAL PROPERTY TO NON-FEDERAL RECIPIENTS. This report, described in Chapter 5, paragraph 3c, should include excess personal property transferred to States. [SEE PRINTED COPY OF MANUAL FOR COPIES OF ATTACHMENTS]

    Attachment and Title

    1 Form FHWA-1364, Report of Review of Property

    2 Form DOT F 1660.6, Incident Report

    3 Form FHWA-1363, Report of Transfer of Property

    4 Form FHWA-339, Equipment Class Record

    5 Form DOT F 4200.1. Procurement Request

    6 Optional Form 347, Order for Supplies or Services

    7 Form FHWA-189, Receiving Report

    8 Standard Form 122, Transfer Order Excess Personal Property

    9 Form FHWA-162, Non-Expendable Property Account and Transactions

    10 Form FH-287, Stock Record Card

    11 Standard Form 44, Purchase Order - Invoice Voucher

    12 Form FHWA-164, Property Receipt and/or Receipt for Property Returned

    13 Form FHWA-126, Clearance of Employee Accountability

    14 Form DOT F 1660.2, Property Removal Record

    15 Form DOT F 1660.3, Property Security Pass

    16 Form FHWA-149, Non-Expendable Property Inventory as ofDecember 31, 19-.

    17 GSA Form 1473, Supply Activity Report

    18 Standard Form 1103, U.S. Government Bill of Lading

    19 Standard Form 120, Report of Excess Personal Property

    20 Distribution List for Reports of Excess Personal Property

    21 Standard Form 126, Report of Personal Property for Sale

    22 Prohibited Actions and Conditions

    23 Form DOT F 4400.1, Annual Report - Utilization and Disposal of Excess and Surplus Personal Property

    24 Form FHWA-224, Employee Claim for Loss of or Damage to Personal Property

    25 Standard Form 1034, Public Voucher for Purchases and Services Other Than Personal

    26 Form FHWA-78, Claims Investigating Officer's Report

    27 Standard Form 344, Multiuse Standard Requisitioning/Issue System Document

    28 GSA Form 1539, Request for Excess Personal Property

    29 GAO Stock Form 1114, Bill for Collection

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