Reclamation Supplement to Federal Property Management Regulations

Part 45 Sale, Abandonment, or Destruction of Personal Property

Subpart 114S-45.3 Sale of Personal Property

114S-45.301 Policy.

Reclamation offices will normally report surplus property to the General Services Administration (GSA) for sale, as provided in 101-45.303. When exemptions are allowed by GSA under the provisions of 101-45.103, small lot sales will be handled by Reclamation personnel as prescribed by 101.45-304-3 and Reclamation "Cookbook for Small Lot Sales."


114S-45.301-70 Scrap Sale Policy.

Reclamation offices can elect to sell scrap materials either using the "Small Lot Sale" procedures or by establishing a contract for removal. If an office generates enough scrap material that scrap dealers would be interested in, a contract (with option years) may be established. If minimal scrap is generated, a "Small Lot Sale" would probably be more advantageous. Contaminated scrap may not be sold, refer to 41 CFR 101-42.

(a) Contracts. A contract will be established by local acquisition staff in accordance with 48 CFR. The following information on a statement of work must be a part of the requisition to establish the contract.


(1) Describe the types of scrap, e.g., copper, steel, aluminum, brass, etc.

(2) Estimate the amount of scrap that will be sold yearly.

(3) Indicate whether the scrap will be segregated or unsegregated by type.

(4) Location of the scrap.

(5) Indicate whether the contractor is responsible for containers for the scrap or whether the Government will provide.

(6) Indicate the frequency for pickup of scrap or whether on an on-call basis.

(7) Point of contact(s) for the scrap.


114S-45.302 Sale to Government Employees.

While not necessarily unlawful, contracts between Reclamation and its employees, or other Federal agency employees, present an undesirable situation, suggesting favoritism, and are not to be initiated except for the most convincing reasons. Sale of surplus property to Federal employees will be subject to the following conditions:

(The terms "Federal employee" or "employee," as used in this paragraph, will include the spouse and children.)

(a) Property has been reported to the GSA as excess and has been found to be surplus by that agency. Property sold under the Exchange/Sales provision of law (see 101-46) is not surplus property and is not eligible for sale to Federal employees, except that motor vehicles being sold for replacement purposes which meet either age or mileage replacement standards may be sold to Federal employees.

(b) The sale will be adequately advertised to document that everyone who reasonably could be expected to be interested will have an opportunity to bid.

(c) Award will not be made to an employee who (1) is the contracting officer, (2) is a member of the board of survey; (3) is engaged in displaying the property; (4) is engaged in receiving, opening, recording, or awarding bids for the property; or (5) has regularly used or serviced the particular item(s) of property and, by such association, could reasonably be considered to possess knowledge of the condition of the item, which would place him/her in an advantageous bidding position over other bidders.

(Note: Instructions pertaining to sale of surplus real property to Federal employees are provided in 114S-47.304-4.)


114S-45.304-2 Negotiated Sales and Negotiated Sales at Fixed Prices.

(a) Justification for Negotiated Sales. The justification statements required by 101-45.304-2(a) will be submitted to the office of Property and Office Services, attention: code D-7910, for consideration.

(b) Explanatory Statements. Explanatory statements required to be submitted to the GSA for transmittal to the committees of the Senate and the House of Representatives pursuant to 101-45.304-2(c) will be forwarded to the Reclamation Service Center, Code D-7910. A copy of the Assistant Secretary - Policy, Management and Budget's letter of transmittal to the Administrator, GSA, and a copy of the Administrator's letter to the committees will be furnished the disposing office.


114S-45.304-6 Reviewing Authority.

For sales conducted by Reclamation, the reviewing authority will be as defined by 114S-60. Note that the amounts involved are expressed in terms of original cost and not fair market value.


114S-304-8 Forms Prescribed.

The following special provisions should be included in the sales proposal, when appropriate:

(a) Performance Bonds. The Government may request a performance bond to ensure removal of all property from the area within a given time, to ensure that (1) the area be cleaned or restored to the extent specific in the invitation, and (2) all special instructions or conditions are adhered to.

(b) Sales to Federal Employees. The following statement will appear in each invitation where the property is eligible for sale to Federal employees (101-41 CFR):

Federal employees are not prohibited from bidding on this material; however, no preferential treatment or consideration over and above that afforded the general public will be given to a Federal employee. A bidder who is an employee of the United States (or spouse of an employee) will so indicate by stating in the space provided below the name and address of the employee's headquarters office.


114S-45.304-10 Deposits and Final Payments.

Bid deposits and payments should be made payable to "Bureau of Reclamation." The Sales Official should make arrangements with the Authorized Collector for prompt return of bid deposits, including return at time of bid opening to those bidders in attendance whose bids are obviously unsuccessful.


114S-45.304-70 Abstracting and Awarding.

The principles governing the receiving of bids, abstracting, and awarding in formally advertised procurement, apply generally to sealed bid sales. However, the extensive distribution of documents normally associated with purchase transactions is not required in surplus sales transactions. The documentation for fiscal and property accounting purposes, for audit purposes, and for the contracting officer's records, should be held to a minimum.

Simplifications developed by some Reclamation offices include: (1) using the original bid together with a copy of the notice of award to constitute the contract for accounting and site-audit purposes (the contractor's retained copy of the invitation together with the notice of award usually satisfies his needs); (2) avoiding retyping of property descriptions by attaching copies of invitations and/or award notices to Property Voucher (form 7-763) face sheets; and (3) preparing the notice of award on Bill for Collection, form DI-1040, in enough copies to provide needed documents for fiscal and property accounting, receipt for purchases, and sales officer's files.

FPMR-26 - 1/18/00
Supersedes FPMR-10 - 9/15/95