4359197 Notice of final rulemaking to replace the regulations that apply to the distribution of the District's surplus propoerty
-
OFFICE OF CONTRACTING AND PROCUREMENT
NOTICE OF FINAL RULEMAKING
The Chief Procurement Officer of the District of Columbia (“CPO”), pursuant to the authority set forth in Sections 204 and 1106 of the Procurement Practices Reform Act of 2010, effective April 8, 2011 (D.C. Law 18-371; D.C. Official Code §§ 2-352.04 and 2-361.06) (2011 Repl.)) (Act), hereby gives notice of the intent to adopt final rulemaking to replace Chapter 9 (Surplus Property), of Title 27 (Contracts and Procurement), of the District of Columbia Municipal Regulations (DCMR) and to rescind all of Part II, Sections 2630-2634, of the District of Columbia’s Materiel Management Manual (MMM).
The rulemaking updates and consolidates the regulations, and implements the provisions in the Act that apply to the distribution of surplus personal property.
The CPO gave notice of his intent to adopt these rules on March 20, 2013, and the proposed rules were published in the D.C. Register on April 12, 2013, at 60 DCR 5660. No changes have been made to the text of the rules as published. The CPO took final action to adopt these rules on May 17, 2013.
The rulemaking will become effective upon publication in the D.C. Register.
Chapter 9, SURPLUS PROPERTY, of Title 27, CONTRACTS AND PROCUREMENTS, of the DCMR is amended as follows:
Section 900, GENERAL PROVISIONS, is amended to read as follows:
900 GENERAL PROVISIONS
900.1 The District of Columbia State Agency for Surplus Property (D.C. SASP) is responsible for effecting the fair and equitable distribution of federal surplus personal property, whether by sale, donation, or transfer, in accordance with the Federal Property and Administrative Services Act.
900.2 The Office of Contracting and Procurement Surplus Property Division (SPD) is responsible for effecting the fair and equitable distribution of District surplus personal property, whether by sale, donation, or transfer.
900.3 The Office of Contracting and Procurement (OCP) shall publish on the OCP website all forms used for the purpose of disposing of federal and District surplus property.
900.4 OCP shall publish on the OCP website records of all transfers of federal and District surplus property.
Section 901, AUTHORITY, is repealed and replaced with:
901 RESPONSIBILITIES OF THE CHIEF PROPERTY DISPOSAL OFFICER
901.1 The Director shall delegate to the Chief Property Disposal Officer (CPDO) specific responsibilities that include:
(a) Acting as the District of Columbia State Agent (State Agent) for purposes of disposing of federal surplus personal property. The State Agent shall be the Chief of D.C. SASP, and may make charges, assess fees, and distribute surplus personal property in accordance with all federal laws and regulations governing the donation and transfer of federal surplus property;
(b) Acting as the Chief of the SPD for purposes of disposing of District surplus personal property in accordance with District law and regulations governing the sale, donation, and transfer of District surplus property;
(c) Maximizing the investment recovery value of surplus personal property and effective oversight and management of personal property utilization;
(d) Maintaining office and warehouse facilities for requesting, receiving, staging, displaying, storing, and shipping all categories of surplus personal property;
(e) Examining the property records of each agency to determine the adequacy and accuracy of the property records; and
(f) Determining who shall be authorized to enter the District’s warehouse to select property.
Section 902, RESERVED, is repealed and replaced with:
902 INVENTORY CONTROL
902.1 Each District agency is responsible for all personal property in its custody whether purchased from appropriations or other authorized funds, or acquired by transfer, donation, or other authorized means. Each District agency shall ensure that the personal property is properly utilized and managed in the best interest of the District government.
902.2 Each District agency director shall designate in writing to the CPDO:
(a) An administrative employee who shall serve as an Accountable Property Officer (APO); and
(b) An administrative employee who shall serve as an alternate APO.
902.3 The APO shall be responsible for:
(a) Maintaining records that reflect accountability of property assigned to the agency;
(b) Ensuring the proper utilization and care of all property assigned to the agency;
(c) Reconciling physical inventories with property records and inventory databases; and
(d) Approving transfers of, accounting for, and reporting dispositions of agency personal property to SPD by utilizing the property disposal action form.
902.4 The D.C. SASP and the SPD shall maintain a shared electronic inventory control system to monitor all federal and District surplus personal property in their possession. The system shall contain the following information for each item of surplus personal property:
(a) The date of receipt of property;
(b) The agency from which the property was received;
(c) A description of the property, including quantity and condition;
(d) A photograph of the property; and
(e) The estimated value of the property.
Section 903, DESIGNATION OF STATE AGENCY, is repealed and replaced with:
903 TRANSFER OF DISTRICT AND FEDERAL SURPLUS PROPERTY
903.1 The CPDO may transfer surplus District property between District agencies.
903.2 The CPDO may transfer federal surplus property to a District agency for use in carrying out or promoting, for residents of the District, a public purpose, including conservation, economic development, education, parks and recreation, public health, and public safety.
Section 904, INVENTORY CONTROL, is repealed and replaced with:
904 SALE OF DISTRICT SURPLUS PROPERTY
904.1 When it is in the District’s best interest, and after the District has made an attempt to transfer District surplus property between District agencies, the Director may authorize the disposal or sale of surplus personal property after it has been in SPD for seven (7) days using any of the following disposal methods:
(a) Auctions;
(b) Competitive sealed bidding;
(c) Competitive electronic sales; or
(d) Other appropriate method designated by rule.
904.2 If an on-line auction occurs, items shall be placed on an on-line auction site for a period of seven (7) days. After the auction period has expired, the winning bidder shall be awarded the property after payment has been received.
904.3 During an on-line auction, the record of the bid prices received will be available for public viewing on the auction site.
904.4 Property with an estimated value exceeding ten thousand dollars ($10,000) shall only be sold subject to a minimum bid established by the CPDO. If the CPDO determines that property cannot be sold at the established minimum bid price, the CPDO may extend the bidding period or reject the bids.
904.5 The CPDO may reject any bid received during any disposal method.
904.6 No District employee or member of a District employee’s household may purchase surplus personal property.
Section 905, ACCOUNTING, is repealed and replaced with:
905 DONATION OF FEDERAL SURPLUS PROPERTY
905.1 The State Agent must determine whether an applicant is eligible to receive a donation of federal surplus property in the District’s possession.
905.2 When a determination has been made by the State Agent to donate federal surplus property, donations may be made to the following sources:
(a) Any public agency for use in carrying out or promoting for the residents of the District one or more public purposes, such as conservation, economic development, education, parks and recreation, public health, and public safety; or
(b) To a nonprofit educational or public health institution or organization that is exempt from taxation under section 501 of the Internal Revenue Code of 1986 (26 U.S.C. § 501), including—
(i) a medical institution, hospital, clinic, health center, or drug abuse treatment center;
(ii) a provider of assistance to homeless individuals or to families or individuals whose annual incomes are below the poverty line (as that term is defined in Section 673 of the Community Services Block Grant Act (42 U.S.C. § 9902));
(iii) a school, college, or university;
(iv) a school for the mentally retarded or physically handicapped;
(v) a child care center;
(vi) a radio or television station licensed by the Federal Communications Commission as an educational radio or educational television station;
(vii) a museum attended by the public;
(viii) a public library;
(ix) a historic light station as defined under Section 308(e)(2) of the National Historic Preservation Act (16 U.S.C. §§ 470w–7 (e)(2)), including a historic light station conveyed under Subsection (b) of that section, notwithstanding the number of hours that the historic light station is open to the public; or
(x) an organization whose membership comprises substantially all veterans (as defined under Section 101 of Title 38) and representatives are recognized by the Secretary of Veterans Affairs under Section 5902 of Title 38.
905.3 The distribution of federal surplus property should be done in a fair and equitable manner based on the relative needs and resources of interested District agencies and other eligible institutions in the District, and their abilities to use the property.
905.4 When an eligible donee ceases to operate, whether by loss of license, accreditation, approval or otherwise, or fails to satisfy all financial obligations as required or fails to maintain a reasonable posture regarding all financial obligations, D.C. SASP shall terminate the distribution of federal surplus personal property immediately upon notification.
905.5 When a determination has been made by the State Agent that property has not been put into use by a donee within one (1) year from the date of receipt, or when the donee ceases to use the property within one (1) year after it has been received, the donee shall, at the direction of the CPDO do one (1) of the following:
(a) Return all usable surplus personal property at the donee’s expense, to the D.C. SASP warehouse;
(b) Transfer all usable property to another eligible donee; or
(c) Make another disposal arrangement deemed appropriate by the CPDO.
905.6 D.C. SASP may impose reasonable terms, conditions, reservations, and restrictions on the use of the donated property.
905.7 D.C. SASP shall maintain a donee wish-list which shall serve as a fundamental tool designed to neutralize the necessity of frequent visits to the warehouse in search of desired properties. D.C. SASP employees shall be guided by these requests in the screening and selection of property.
Section 906, RESERVED, is repealed and replaced with:
906 DONATION OF DISTRICT SURPLUS PROPERTY
906.1 The District may donate its surplus personal property to an organization qualified as a tax-exempt under Section 501 of the Internal Revenue Code of 1986 (26 U.S.C. § 501), or state, county, or municipal jurisdictions only after an attempt has been made to:
(a) Transfer the property within an agency;
(b) Transfer the property between agencies; and
(c) Auction the property for sale.
906.2 The CPDO must determine whether an applicant is eligible to receive a donation of District surplus property, and re-verify its eligibility every two (2) years.
906.3 Before receiving a donation of District surplus personal property, a tax-exempt organization must:
(a) Demonstrate it meets any approval, accreditation, or licensing requirements for operation of its program;
(b) Certify that it is not debarred, suspended, or excluded from any federal or District program, including procurement programs;
(c) Operate in compliance with applicable federal nondiscrimination law; and
(d) Certify that it is a non-profit tax-exempt organization.
906.4 SPD shall maintain a donee wish-list which shall serve as a fundamental tool designed to neutralize the necessity of frequent visits to the warehouse in search of desired properties. SPD employees shall be guided by these requests in the screening and selection of property.
Section 907, RESERVED, is repealed and replaced with:
907 UNDISTRIBUTED SURPLUS PROPERTY
907.1 The CPDO may recycle, sell for scrap, abandon, or destroy undistributed District or federal surplus personal property upon making a determination that the property has no commercial value, or the estimated cost of its continued care and handling would exceed the estimated proceeds from its sale.
Section 908, RETURN OF DONATED PROPERTY, is repealed and replaced with:
908 SERVICE CHARGES
908.1 D.C. SASP may assess a service charge for services performed under this chapter. Service charges shall be fair and equitable in relation to the services performed. The D.C. SASP must take into account the amount of screening, packing, crating, removal, transportation and other efforts required to perform the services when determining the amount of a service charge.
Section 909, FINANCING AND SERVICE CHARGES, is repealed and replaced with
909 PLACEMENT OF ANIMALS
909.1 Notwithstanding any other provisions of this chapter, the CPDO may transfer or donate surplus animals in any manner in which he determines to be in the best interest of the District.
Section 910, TERMS AND CONDITIONS ON DONABLE PROPERTY, is repealed.
Section 911, NON-UTILIZED DONABLE PROPERTY, is repealed.
Section 912, FAIR AND EQUITABLE DISTRIBUTION, is repealed.
Section 913, ELIGIBILITY, is repealed.
Section 914, APPLICATION, is repealed.
Section 915, MAINTAINING ELIGIBILITY, is repealed.
Section 916, COMPLIANCE AND UTILIZATION, is repealed.
Section 917, CONSULTATION WITH ADVISORY BODIES AND PUBLIC AND PRIVATE GROUPS, is repealed.
Section 918, AUDIT, is repealed.
Section 919, COOPERATIVE AGREEMENTS, is repealed.
Section 920, LIQUIDATION, is repealed.
Section 921, RESERVED, is repealed.
Section 922, RESERVED, is repealed.
Section 923, RESERVED, is repealed.
Section 924, RESERVED, is repealed.
Section 925, RESERVED, is repealed.
Section 926, RESERVED, is repealed.
Section 927, RESERVED, is repealed.
Section 928, RESERVED, is repealed.
Section 929, RESERVED, is repealed.
Section 930, FORMS, is repealed.
Section 931, RECORDS, is repealed.
Section 932, ADMISSION TO SASP DISTRIBUTION CENTER AND SELECTION OF PROPERTY, is repealed.
Section 933, DONEE-SCREENERS, is repealed.
Section 934, CERTIFICATIONS AND AGREEMENTS (INCLUDING TERMS, CONDITIONS, RESERVATIONS AND RESTRICTIONS) COVERING THE DONATION OF DONABLE FEDERAL SURPLUS PROPERTY, is repealed.
999 DEFINITIONS
999.1 When used in this chapter, the following words have the meanings ascribed:
Chief Property Disposal Officer: The Chief of the District of Columbia State Agency for Surplus Property and the Chief of the Office of Contracting and Procurement Surplus Property Division who is designated to oversee and manage all personal property programs of the District government.
Director: The Director of the Office of Contracting and Procurement (OCP) or the District of Columbia Chief Procurement Officer (CPO).
Electronic Inventory Control System: The shared computer system and database used by the District of Columbia Personal Property Division and the State Agency for Surplus Property to record transactions related to surplus property.
Federal Property and Administrative Services Act of 1949: The law approved August 16, 1950 to authorize a State Agency for Surplus Property to acquire and distribute to all eligible donees in the District any federal surplus property.
Public agency: A federal or District department, agency, or instrumentality thereof.
Public purpose: A program carried out by a public agency which is legally authorized in accordance with the laws of the District of Columbia, and for which public funds may be expended. Public purposes include, but are not limited to, programs such as conservation, economic development, education, parks and recreation, public health, and public safety.
