U.S. General Services Administration

Gary ThompsonSenior Program AnalystGeneral Services Administration,Office of Govenmentwide Policy

Gary ThompsonSenior Program AnalystGeneral Services Administration,Office of Govenmentwide Policy

May 15-17, 2012May 15-17, 2012

OVERVIEW OF FEDERAL GOVERNMENT EXCHANGE/SALE PROGRAM

OVERVIEW OF FEDERAL GOVERNMENT EXCHANGE/SALE PROGRAM

Value to the Customer Value: Allows Customer Agencies when acquiring

replacement property, to exchange or sell similar items and apply the exchange allowance or proceeds of sale in whole or in part payment for the property acquired.

Example: DOJ Sale of 50 Aircrafts and Aircraft Parts. Value: Provided proceeds of $1.4 for purchase of new

aircrafts. Example: Navy Exchange of Weapon System Value: Resulted in allowances of $47.0 M for purchase of

new system.2

Overview of Exchange/Sale Program

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Authority:

Title 40 U.S.C. – Law that established GSA, and many asset management policies; including the latest version of the exchange/sale authority (40 USC 503).

41 C.F.R. 102-39 (FMR 102-39) – Governmentwide regulation implementing 40 U.S.C. 503

Overview of Exchange/Sale Program

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Key Points:• The use of E/S should be considered when replacing

personal property.

• Asset Capital Planning should consider the use of E/S.

• E/S authority is an acquisition authority, not disposal.

• Law at 40 U.S.C. is very general, and gives GSA Administrator authority to implement related policies.

Overview of Exchange/Sale Program

Key Points – Restrictions:

Items cannot be excess – there must still be a need for the asset.

Restrictions on use of funds and exchange allowance.

Replaced assets must be “similar”. Need to avoid appearance of a “yard sale”.

List of prohibited items at FMR 102-39.60

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Overview of Exchange/Sale Program

Key Points – Restrictions (continued):

Several categories of assets, including aircraft, were recently removed from the prohibited list.

Note to this section – paraphrased - Deviations will not be considered for FSC Class 1005 (Guns <30 mm).

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Overview of Exchange/Sale Program

Key Points – Using the Exchange/Sale Authority:

What if the Exchange Allowance/Sales Proceeds are

unreasonably low?

Don’t consider if the transaction violates statute or regulation.

Determine which action is likely to provide the greater return.

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Overview of Exchange/Sale Program

Key Points – Offering Exchange/Sale Property to Federal Agencies and States:

First consider:

Federal agencies known to use such property

Terms agreeable to both parties

Reimbursement amount not greater than fair market value

Apply proceeds in whole or part to acquire replacement property

State Agencies for Surplus Property (SASP). 8

Overview of Exchange/Sale Program

Key Points – Exchange/Sale Conditions:

Property exchanged/sold must be similar to property acquired.

Property neither excess nor surplus.

Property not acquired for the purpose of E/S.

Allowances and proceeds to offset cost of replacement property

Document facts associated with each transaction.9

Overview of Exchange/Sale Program

Key Points – Accounting Requirements:

Use general finance and accounting rules.

Allowances/Proceeds available in fiscal year property

exchanged or sold plus one additional fiscal year.

Proceeds not applied are deposited into US Treasury as

miscellaneous receipts.

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Overview of Exchange/Sale Program

Key Points – Reporting Requirements

Submit summary report 90 calendar day after close of fiscal

year.

Submit report electronically to E/S Reporting Tool at

https:gsa.inl.gov/property

Negative reports must be submitted

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Overview of Exchange/Sale Program

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In-Use

Donation

Sales

Excess

Reassigned

within the

Agency

Property No Longer Needed or Available

Disposal at any stage: Non-federal transfers; Abandoned/Destroyed; and Lost

Sold

Exchange/Sale -

$306M (2009)

Stage of Use or Disposal:

Donated -

$343M (2009)

Transferred

to other

agencies -

$398M (2009)