December 14, 2004

Memorandum

To: Associate Directors – Administration
Acquisition Managers’ Partnership
Department of the Interior Facility Managers
Property Management Partnership

From: Debra E. Sonderman, Director
Office of Acquisition and Property Management and
Senior Procurement Executive

Subject: Use of Appropriated Funds to Purchase Kitchen Appliances

In a June 25, 2004 decision (File B-302993, Matter of: Use of Appropriated Funds to Purchase Kitchen Appliances (copy attached)), the Comptroller General, modifying earlier decisions regarding the use of appropriated funds, concluded that appropriated funds could be used to purchase kitchen appliances such as refrigerators, microwaves, and commercial coffee makers for central kitchen areas, as follows:

Over time, we have reconsidered whether particular expenditures that
we once viewed as personal expenses of the employee may in certain
circumstances be considered an official expense of the agency … Because
of the varied purposes for which employees might use kitchen equipment,
we believe their availability will contribute to the efficient operations of
the agency and the health of personnel, and is one of many small but important
factors that can assist federal agencies in recruiting and retaining the best
work force and supporting valuable human capital policies. Further, having
centralized appliances and therefore fewer extension cords or overloaded
circuits will permit [agency] to better manage the safety of the building.

The decision advised that agencies should establish a policy to “ensure uniformity in the use of appropriations to acquire this equipment and determine the usefulness of appliances such as these in light of operational benefits.”

For the reasons cited in Comptroller General Decision B-302993, it is the Department’s policy that appropriated funds may be used to purchase kitchen appliances such as microwave ovens, refrigerators, and commercial coffee makers for use by employees, subject to the following conditions:

(1) The appliances are for office locations where there is a central kitchen facility or common area authorized for use by multiple employees;

(2) For appliances covered by an ENERGY STAR® standard, any kitchen appliances purchased with appropriated funds must be ENERGY STAR® qualified products, even if the appliance purchase price is more expensive for the ENERGY STAR® model. (ENERGY STAR® qualified appliances incorporate advanced technologies that use 10 – 50% less energy and water than standard models, and are therefore less expensive to operate and maintain. For further information on ENERGY STAR® products, access the website at: www.energystar.gov; and

(3) The purchase must be supported by a document that:
• Describes the appliance(s) to be purchased and its intended location in the building, and
• Determines the on-going need and usefulness of such appliances for the office(s) in light of both: operational benefits (e.g., accommodation of deadlines and emergencies, increased employee productivity, health, and morale), and (2) the office’s responsibility to provide a safe working environment for employees by equipping central kitchen facilities or common areas and reducing or eliminating the number of personally-owned appliances, extension cords, and other potentially hazardous and energy inefficient items for the work area.

The written description/determination must be signed by an authorized representative of the requisitioning office and forwarded to the designated Building/Facility Manager for review and approval that the appliance(s) and its(their) placement comply with any applicable facility policies or standards. The Building/Facility Manager may require the requisitioning office(s) to reduce the existing number of personally-owned appliances used in the office area as a condition of his/her approval to acquire appliances with appropriated funds. The Building/Facility Manager’s approval must be obtained before an appliance purchase is made. The original description/determination document, as signed by the Building/Facility Manager, must be maintained with the buyer’s purchase card statement or, as appropriate, be forwarded to the servicing Procurement Office as part of the requisition’s supporting documentation. Federal acquisition and property management requirements apply to the acquisition of kitchen appliances with appropriated funds, e.g., competition where appropriate, property reporting, labeling, inventorying, and disposal requirements, acquisition of commercial warranties, including extended warranties, where appropriate and in the Government’s best interest.

This policy does not authorize the use of appropriated funds to acquire appliances for the sole use of an individual employee, nor to furnish goods, such as coffee, disposable coffee filters, plates and cups, napkins and other paper products, or food to be used in the kitchen areas. These remain costs each employee is expected to bear. It does not authorize the use of appropriated funds for the acquisition of vending equipment or facilities that would conflict with the requirements of the Randolph-Sheppard Act and/or contracts with on-site cafeterias. In addition, the policy does not authorize bureaus/offices to construct kitchenettes, galleys or mess areas.

Individual bureaus, components or facilities may establish more restrictive policies and additional approval procedures, to provide greater fiscal control or when needed to comply with General Services Administration, state and local government, and individual lease requirements related to appliance energy usage and facility safety.

This policy is effective upon issuance. It is not retro-active and cannot be used to authorize the reimbursement of employees for prior personal expenditures for common use kitchen appliances.
If you have any questions regarding this policy, please contact Patricia Corrigan of this office on 202-208-1906.

Attachment