14 FAH-1 H-700
DISPOSAL OF PERSONAL PROPERTY
14 FAH-1 H-710
DISPOSAL PROCEDURES AT POST
(CT:PPM-27; 06-04-2018)
(Office of Origin: A/LM)
14 FAH-1 H-711 DISPOSABLE PROPERTY
(CT:PPM-2; 07-27-2005)
(Uniform State/USAID)
Disposable property is property that is not required, or
in such a condition that economical repairs cannot be made, and should not be
allowed to accumulate in offices or warehouses. Such property should be turned
in by offices and either reused or disposed of. There are several methods used
by the Department for disposing of property that is not required. Before any
of these methods can be used, however, the proposed disposal must be documented
and authorized.
14 FAH-1 H-712 REPORTING PROPERTY NO
LONGER REQUIRED
(CT:PPM-2; 07-27-2005)
(Uniform State/USAID)
Expendable and nonexpendable property that is no longer
required is reported to the general services office which will arrange for its
removal. If the property is in good condition, the accountable property
officer (APO) may wish to reassign it to satisfy another requirement, rather
than return it to the warehouse. Before arranging for pick up, however, the
general services office should make sure that a security inspection has been
conducted on appropriate nonexpendable items, and that Form DS-586, Turn-In
Property Inspection Certification, has been completed.
14 FAH-1 H-712.1 Screening
Turned-In Expendable Property
(CT:PPM-1; 08-11-2004)
(Uniform State/USAID)
Warehouse personnel should screen returned expendable
supplies to determine which items can be put back into stock. Form DS-127,
Receiving and Inspection Report, should be prepared by the warehouse personnel,
listing the description and quantity (by unit of issue), and sent to the
accountable property officer (APO). Unusable expendable property should not be
thrown away unless such action is approved by the APO.
14 FAH-1 H-712.2 Nonexpendable
Property
14 FAH-1 H-712.2-1 Reporting
Condition of Returned Property
(CT:PPM-1; 08-11-2004)
(Uniform State/USAID)
a. The post's internal requisitioning system should
include provision for warehouse personnel to routinely report the condition of
property turned in. When property has been picked up from an office, each item
should be inspected, classified as to its condition, and a condition code
annotated on the copy of the property turn-in form that is returned to the
general services office, so that property record changes can be made. It is
recommended that Form DS-584, Nonexpendable Property Transaction, be used to document
property turn-in actions.
b. The condition codes listed in 14 FAH-1
Exhibit H-621.3 are used in classifying property condition.
c. Data on the copies of Form DS-584 returned to the
general services office from the warehouse, should be posted to the property
records to reflect location change and property condition.
14 FAH-1 H-712.2-2 Classification
and Disposition of Returned Property
(CT:PPM-1; 08-11-2004)
(Uniform State/USAID)
a. A member of the warehouse staff should be designated
to periodically (at least quarterly) evaluate and categorize turned-in property
on hand so that appropriate disposition of the property can be made. A
memorandum should be prepared and sent to the general services office,
identifying condition of property and its availability to be rehabilitated, put
back in stock, redistributed, transferred, or disposed of.
b. Upon receipt of the memorandum, the general services
office should initiate appropriate action for disposition of the property. The
accountable property officer (APO) should visit the warehouse to appraise any
property recommended for rehabilitation or disposal.
c. At posts using the nonexpendable property
application (NEPA) or USAIDs automated property system, when property is sent
out for rehabilitation, the property number label might be removed during the
process. If this occurs, the APO should ensure that a new number is assigned
to the property when it is returned and that a record change is made to reflect
termination of the old property number. To convert the old number to a new
number, go to the NEPA utilities, select Property Number Change, and proceed.
14 FAH-1 H-713 METHODS OF DISPOSAL
(CT:PPM-27; 06-04-2018)
(Uniform State/USAID)
a. When disposing of property, the methods of disposal
are followed in the order given:
(1) Redistribution to establishments within the parent
agency;
(2) Transfer to another agency, or to a
commissary/mess/recreational facility;
(3) Sale or exchange;
(4) USAID only:
Grant-in-aid or project contribution;
(5) Donation; or
(6) Abandonment/destruction.
b. In determining the method of disposition most
beneficial to the U.S. Government, consideration must be given to the
following:
(1) Condition of the property;
(2) New and present value;
(3) Bona fide need by other posts abroad of the parent
agency (taking into consideration the cost of storage, packing and shipping,
and other related problems);
(4) Local sales interest and value;
(5) Other U.S. Government agencys needs and
willingness to purchase; and
(6) USAID only: Host-government and project needs.
14 FAH-1 H-713.1 Disposal Document
Preparation
(CT:PPM-27; 06-04-2018)
(Uniform State/USAID)
a. With the exception of motor vehicles, the
accountable property officer (APO) must get the approval of the property
management officer (PMO) before property can be disposed of. This is done by
completing Form DS-132, Property Disposal Authorization and Survey Report, for
State or Form AID-534-1, Personal Property Disposal Authorization and Report,
for USAID (see 14
FAM 418.3-2 for disposal of motor vehicles).
b. Separate reports are prepared for expendable
property, nonexpendable property, replacement property, foreign excess
property, salvage, and scrap (see 14 FAM 411.4
for property definitions). An original and one copy of Form DS-132 for State
or Form AID-534-1 for USAID, should be prepared. The APO keeps the copy for
his or her file and forwards the original to the PMO. If the PMO disapproves,
Form DS-132 for State or Form AID-534-1 for USAID is returned to the APO, with
appropriate comments. If the PMO approves, he or she forwards Form DS-132 or
Form AID-534-1 to the property disposal officer (PDO).
c. State only: The instructions in 14 FAH-1
Exhibit H-713.1 will aid in the preparation of Form DS-132 for reporting
unneeded personal property. The data field numbers on the instructions in this
exhibit correspond to the circled numbers in each field of the form. Fields
not addressed should be left blank.
14 FAH-1 H-713.2 Files
(CT:PPM-2; 07-27-2005)
(Uniform State/USAID)
The original of Form DS-132, Property Disposal
Authorization and Survey Report, for State or Form AID-534-1, Personal Property
Disposal Authorization and Report, for USAID along with any related disposal
documents (e.g., invitations, bids, sales register, copies of sales receipt
forms) should be kept on file in the property office to support the property
records. They may be disposed of three years after final disposal action is
taken (if sale was part of the disposal action, the file must be kept until
three years after final settlement).
14 FAH-1 H-714 REDISTRIBUTION OF
REPLACEMENT PROPERTY
14 FAH-1 H-714.1 Notification to
Other Posts
(CT:PPM-2; 07-27-2005)
(Uniform State/USAID)
a. State only: When serviceable property is reported
on Form DS-132, Property Disposal Authorization and Survey Report, the property
disposal officer (PDO) should notify other posts within the geographic area of
the availability of the property. Notification can be made either by airgram
or telegram, depending on the urgency of the disposal. The notification should
include the amount of property being offered, a complete description of the
property, and the property's condition.
b. USAID only: To dispose of property by
redistribution, it must be classified as replacement property and be in
excellent or good condition. If the PDO believes that property meets these
conditions, the PDO should advise the Bureau for Management, Overseas
Management Support Division (M/OMS) at USAID Washington, DC headquarters (
USAID/W). M/OMS will inform other USAID missions that the items are available.
c. Property is offered on a first-come, first-serve
basis and the PDO should allow 30 days before taking any other disposal action.
14 FAH-1 H-714.2 Shipment to Other
Posts
(CT:PPM-1; 08-11-2004)
(Uniform State/USAID)
a. A separate transfer document should be prepared for
any property being redistributed to another post. Form DS-584, Nonexpendable
Property Transaction, should be used for this purpose. The data field
instructions in 14 FAH-1
Exhibit H-714.2 will aid in preparing Form DS-584. The data field numbers
on the instructions correspond to the circled numbers in each field on the
form. When using the nonexpendable property application (NEPA) or when
serial-numbered items are involved, a line entry for each item should be made.
Serial numbers, when applicable, should be part of the description.
b. Form DS-584, Nonexpendable Property Transaction, is
a three-part form. The original and one copy should be included in the
shipment to the receiving post, and that post is instructed to retain the copy
for its records and sign and return the original. The second copy should be
retained on file until the signed original is returned from the receiving post.
14 FAH-1 H-714.3 Property Disposal
Officer (PDO) Final Action
(CT:PPM-2; 07-27-2005)
(Uniform State/USAID)
The property disposal officer (PDO) should keep all disposal
action documents on file with Form DS-132, Property Disposal Authorization and
Survey Report, for State or AID-534-1, Personal Property Disposal Authorization
and Report, for USAID until all items listed on the form have been disposed of,
and then should return all documents to the accountable property officer (APO)
for property records adjustment and filing.
14 FAH-1 H-715 TRANSFER OF PROPERTY TO
OTHER U.S. GOVERNMENT AGENCIES OR TO COMMISSARY/MESS/RECREATIONAL FACILITIES OR
U.S.-SPONSORED SCHOOLS ABROAD
14 FAH-1 H-715.1 Property Transfer
to Other U.S. Government Agencies
14 FAH-1 H-715.1-1 Notification
to Other Agencies
(CT:PPM-1; 08-11-2004)
(Uniform State/USAID)
a. When responses to offers of property to other posts
within the geographic area are not received, other U.S. Government agencies at
the post location should be notified of the availability of the property. It
is not necessary to circularize other U.S. Government agencies on a regional
basis, as with redistribution to posts. However, if a request is received from
another U.S. Government agency elsewhere in the geographic region, a transfer
should be made.
b. When offering property to other U.S. Government
agencies locally, the property disposal officer (PDO) should circulate a
listing of the property stating the description and amount, and providing an
explanation of its condition.
c. Property is offered on a first-come, first-serve
basis and the PDO should allow 30 days before taking any other disposal action.
14 FAH-1 H-715.1-2 Shipment to
Other Agencies
(CT:PPM-1; 08-11-2004)
(Uniform State/USAID)
a. A separate transfer document should be prepared for
any property being transferred to another agency. Form DS-584, Nonexpendable
Property Transaction, should be used for this purpose; 14 FAH-1
Exhibit H-715.1-2 is an example of a Form DS-584 prepared by State. The
data field instructions in the exhibit will aid in the preparation of Form DS-584.
The data field numbers in the instructions correspond to the circled numbers on
each field of the form. When using the nonexpendable property application
(NEPA) or when serial-numbered items are involved, a line entry for each item
should be made. Serial numbers, when applicable, should be part of the
description.
b. Form DS-584, Nonexpendable Property Transaction, is
a three-part form. The original and one copy of Form DS-584 should be included
in the shipment to the receiving agency, and the agency instructed to retain
the copy for its records and sign and return the original. The second copy
should be retained on file until the signed original is returned from the
receiving agency.
14 FAH-1 H-715.1-3 Property
Disposal Officer (PDO) Final Action
(CT:PPM-2; 07-27-2005)
(Uniform State/USAID)
The property disposal officer (PDO) should keep all
disposal action documents on file with Form DS-132, Property Disposal
Authorization and Survey Report, for State or Form AID-534-1, Personal Property
Disposal Authorization and Report, for USAID until all items included on Form DS-132
or Form AID-534-1 have been disposed of, and then the PDO should return all
documents to the accountable property officer (APO) for property records
adjustment and filing.
14 FAH-1 H-715.2 State Property
Transfer to Commissary/Mess/Recreational Facilities or U.S.-Sponsored Schools
Abroad
14 FAH-1 H-715.2-1 Submission of
Request
(CT:PPM-1; 08-11-2004)
(State Only)
Requests received from commissary/mess/recreational
facilities or U.S.-sponsored schools abroad for unneeded property to satisfy
bona fide needs should be submitted, via memorandum, to the property management
officer (PMO). The request should include a listing of the property needed,
the name of the requesting official, and an explanation of the need.
14 FAH-1 H-715.2-2 Approval
(CT:PPM-1; 08-11-2004)
(State Only)
Requests require the approval of the property management
officer (PMO).
14 FAH-1 H-715.2-3 Transfer
Document
(CT:PPM-1; 08-11-2004)
(State Only)
a. After the transfer is approved by the property
management officer (PMO), Form DS-584, Nonexpendable Property Transaction,
should be prepared to use as the action document.
b. The instructions in 14 FAH-1
Exhibit H-715.2-3 will assist in the preparation of Form DS-584. The data
field numbers in the instructions correspond to the circled numbers in each
field on the form.
c. Form DS-584, Nonexpendable Property Transaction, is
a three-part form. The original and one copy should be included in the
shipment to the receiving activity, and that activity instructed to retain the
copy for its records and to sign and return the original. Retain the second
copy on file until the signed original is returned from the receiving activity.
14 FAH-1 H-716 SALE OR EXCHANGE
14 FAH-1 H-716.1 General
(CT:PPM-27; 06-04-2018)
(Uniform State/USAID)
a. When property cannot be disposed of through
redistribution to other Department of State establishments or through transfer
to another U.S. Government agency, it is disposed of by sale or exchange.
b. The property disposal officer (PDO) must be a
witness to key disposal activities on sale day (e.g., cash payments and issuing
bills of sale) and must ensure that proper disposal-related entries are made on
Form DS-132, Property Disposal Authorization and Survey Report, for State or
Form AID-534-1, Personal Property Disposal Authorization and Report, for USAID
(see 14 FAM
411.2-3 and 14
FAM 417.2).
c. Foreign excess property: If foreign excess
property is not disposed of by transfer, it may be sold if this method is in
the best interest of the U.S. Government (see 14 FAM 417.2-3).
d. Replacement property: Replacement property may be
sold and the proceeds from the sale used for the acquisition of similar
property.
14 FAH-1 H-716.2 Pre-Sale Action
14 FAH-1 H-716.2-1 Lotting
(CT:PPM-1; 08-11-2004)
(Uniform State/USAID)
a. Property assembled in lots is one of the most
important considerations in sales preparation. Property lotting affords
prospective bidders the opportunity to bid on only those types and quantities
of property in which they have real buying interest.
b. The property should be separated into lots of type,
similarity, condition, etc. and arranged in such a way that will create a
greater buyer appeal, and, whenever possible, property should be lotted by make
or manufacturer. Similar items should be lotted together when expected returns
for individual items are too low to warrant an individual offering, or when it
is determined that lotting together will enhance the sales value of the
property. Lotting unrelated property downgrades the total value of the lot.
c. Residence property will probably have the interest
of individuals and should be grouped accordingly. For example, a bed could be
sold with frame, headboard, box spring, and mattress, or a kitchen table could
be sold with the chairs. On the other hand, office furniture may have the
interest of local merchants who may be more inclined to purchase larger lots by
type. For example, a lot could include all desks or all chairs, etc.
d. Normally, scrap should not be offered on the same
sale with usable property since prospective buyers of scrap are not normally
buyers of usable property. Exceptions can be made when just a few items of
scrap are involved and site clearance is imperative, or when the expense of a
separate sale is not feasible. It is recommended that consideration be given
to establishing a competitively awarded contract for scrap.
e. The lots should be numbered and signs made to
identify the lot number.
f. Since the receipts of sale will be deposited to
different accounts, care should be taken not to mix property belonging to more
than one agency in the same lot.
g. Scrap and salvage property should be lotted
separately from other disposal categories.
h. Trust-fund property and U.S.-owned property are
never intermingled in one lot.
i. The integrity of the lots should be maintained in
detail once they are established and open to the public inspection, and should
continue through the time the property is removed by the successful bidder.
14 FAH-1 H-716.2-2 Advertising
(CT:PPM-1; 08-11-2004)
(Uniform State/USAID)
a. Except when local conditions prohibit, sales must be
advertised. Advertisement should be made in sufficient time to permit
prospective buyers to inspect the property prior to the date of sale.
b. As appropriate, advertising media such as radio,
newspapers, trade journals, or posting in public places should be used to
maximize competition and coverage. The extent of solicitation should be
appropriate for the quantity and type of property to be sold, the logical
market for disposal, the type of sale contemplated, and public interest.
Advertisements, as applicable, should state:
(1) The method of sale (e.g., sealed bid, spot bid,
auction, etc.);
(2) The location of the property and periods during
which the property may be inspected;
(3) If it is a sealed bid sale, where the bid forms
may be obtained and whether a deposit is required;
(4) Where the bids are to be submitted;
(5) Date and time that the bids must be received;
(6) The time and date that the bids will be opened;
(7) If applicable, notice that tax or customs duty
must be paid by the purchaser before the property can be removed; and
(8) Notice that the sale is on an as-is, where-is,
nonreturnable basis.
c. Small-lot, small-value, and isolated-location
disposals which do not justify the expense of extensive advertising may be
limited to public posting and letters of invitation to bid to a minimum of
three potential buyers.
14 FAH-1 H-716.3 Administrative
Detail
(CT:PPM-27; 06-04-2018)
(Uniform State/USAID)
A number of administrative details accompany each sale.
Some of these details are as follows:
(1) During the inspection and the sale, when the
public has access to the property, security coverage must be provided to
prevent thefts, ensure the integrity of lots, and to avoid disputes. The
property must be kept in an area where only authorized personnel have access;
(2) When the sale is a sealed-bid sale, a locked box
shall be used for deposit of bids until the announced bid-opening time. The
box shall be secured in a safe during nonworking hours and the box key secured
separately;
(3) When the sale includes property that entered the
country tax free, the property disposal officer (PDO) should notify local
customs of the impending sale. Property cannot be released to the purchaser
until local tax and/or customs duties are paid. The purchaser is required to
show proof that the tax/customs duties have been paid before property is
released;
(4) The PDO arranges, with the financial management
officer (FMO) for a cashier to be at the sale location on sale day to accept
payment from buyers and return deposits to unsuccessful bidders on sealed-bid
sales. Only certified forms of payment (cash, certified checks, etc.) will be
accepted;
(5) The sales documents must forbid the importation of
such property into the United States unless the Secretary of Agriculture (in
the case of any other commodity) determines that its importation will relieve
domestic shortages or otherwise be beneficial to the U.S. economy;
(6) Sales documentation:
(a) Form OF-158,
General Receipt, is used by the cashier to record payment by the buyer. The
cashier will provide the buyer with a copy of the Form OF-158. If only a
partial payment is made on sale day, the cashier will also provide instructions
to the buyer on where to make the final payment;
(b) When final
payment is made, the cashier will issue a second Form OF-158. The buyer will
present Form OF-158 to the property disposal officer (PDO);
(7) Canceling sale bids: Bids which have been
received are returned unopened to bidders and notice of cancellation is sent to
all prospective bidders who were sent an invitation to bid, stating briefly the
reasons for the cancellation;
(8) Amendment: When the sale is a sealed-bid sale and
it becomes necessary to make changes to the invitation and to issue an
amendment to the invitation, the amendment should be given to each person or
firm that was furnished the original bid. Form SF-114-D, Sale of Government
Property―Amendment of Invitation for Bids/Modification of Contract, is
available from the General Services Administration (GSA). For spot-bid or
auction sales, the amendment is issued at the time of bidder registration; and
(9) Sale expenses: Expenses incurred in connection
with the sale may be paid from the proceeds, and only the net proceeds
deposited. Expenses that may be deducted include advertising, auctioneer fees,
customs fees, duties, taxes, commercial transportation, casual labor, and
equipment rentals. Expenses that may not be deducted include regular salary
and overtime payments to contract or direct-hire employees of the U.S.
Government.
Property personnel shall monitor claims and the removal of
sold property.
14 FAH-1 H-716.4 Methods of Sale
(CT:PPM-1; 08-11-2004)
(Uniform State/USAID)
The property disposal officer (PDO) determines the method
of sale to be used. Competitive-bid sales must be used whenever possible.
Negotiated sales are not competitive and are used only when competitive-bid
sales are not appropriate. Some of the factors that will influence the PDO in
determining the best method of sale are:
(1) Quantity, type, and condition of the property;
(2) Local demand; and
(3) Past sales experience.
14 FAH-1 H-716.4-1 Sealed-Bid
Sale
(CT:PPM-27; 06-04-2018)
(Uniform State/USAID)
a. This type of sale must be advertised.
b. Sealed-bid sales are especially suitable for large
quantities of property that can be sold by multiple lot arrangements using one
master bid form. It is the fairest and most objective method of sale with the
least risk of collusion. The post may request that a deposit of 10 percent of
the total amount bid accompany the bid.
c. Bid form:
(1) It is recommended that Form SF-114, Sale of
Government PropertyBid and Award, available from the General Services Administration
(GSA), be used to conduct and execute the sealed-bid sale. A listing of
various sale terms and conditions for use in conducting sales are included on
other forms (Form SF-114C through Form SF-114C-2) available from GSA. The
condition that applicable local taxes and customs duties are payable by the
purchaser must be added to Form SF-114 (property is not released to the buyer
until the buyer presents proof that the taxes/customs duties have been paid);
(2) Bid forms may be mailed to prospective buyers, or
prospective buyers may pick up the forms at the location designated on the
advertisement. Based on posts experience, it may be desirable to maintain a
list of prospective bidders to whom bid forms are mailed routinely;
(3) If Form SF-114 is not available at the time of the
sale and a substitute format is prepared at post, the substitute format should
include the following:
(a) Location, date, and times for inspection and for
sale;
(b) Where to send the bid and what deposit is required;
(c) Description of the property, stating sizes, year of
manufacture, and unique characteristics or conditions such as electrical
features for appliances, etc.;
(d) The condition that the property is sold on an as-is,
where-is, nonreturnable basis for cash payment without refund or warranty by
the U.S. Government (unless these conditions are prohibited by the laws of the
host country);
(e) Notice that the U.S. Government reserves the right
to withdraw for its use any or all of the property prior to actual removal of
the property from U.S. Government control;
(f) Notice that the U.S. Government reserves the right
to reject any bid that is considered not to be commensurate with the value of
the property, or to reject any bid where there is evidence of connivance, collusion,
or bribery;
(g) Time period for making payment for the property
(maximum of 24 hours after close of the sale is generally sufficient);
(h) The condition that applicable local taxes and
customs duties are payable by the purchaser (property shall not be released to
the buyer until the buyer presents proof that the taxes/customs duties have
been paid). Normally, it is enough for the U.S. agency to inform the
prospective buyer of the buyer's obligation to pay taxes and duties. However,
it may be necessary for the post to notify customs officials of the facts
regarding the sale, if local rules dictate;
(i) Time period for removal of the property after
purchase is made (maximum of 72 hours should be enough time for purchaser to
pay any tax/customs duties and make arrangements for removal);
(j) Notice that all arrangements and costs necessary to
effect removal of the property are the purchaser's responsibility; and
(k) The condition that in the event the purchaser fails
to remove property awarded and fully paid for from U.S. premises within the
prescribed period of time, the U.S. Government, at its election and upon notice
of default, shall be entitled to charge progressive storage rates up to the bid
value, after which the awardee shall forfeit title to the property and all
payments made;
(4) The bid forms should list all the property to be
sold by lot number and should include space where the amounts of the bids may
be entered. As the bid forms are issued, a record of the names to whom the
forms are sent should be kept, and checked off as bids are returned; and
(5) As bids are received, they are to be
time-and-date-stamped.
d. Sale day:
(1) Sealed bids are opened publicly at the declared
time by the property disposal officer (PDO), and the names and bids announced
and confirmed. Names and deposits received are recorded on a sales register.
Form OF-158, General Receipt, is given to the buyer by the cashier. The
following statement, together with the signature of the property disposal
officer and the date of signature, must appear on all sales register sheets:
"I certify that I have personally opened and read all bids received and
verified all entries on this sales register from those bids, and find it
correct";
(2) Bids received after the announced closing time or
bids not accompanied by deposits (if deposit was required), should be rejected;
(3) Before making the award, bids should be examined
to determine that there are no disqualifying factors affecting the sale, and
that the bid is commensurate with the market value of the property offered. If
the bid is not commensurate with the market value, the PDO may wish to withhold
sale and re-offer the property at another time. Local market conditions and
sales participation are two of the factors to be considered in making the
determination;
(4) After assuring that all bids are in order, the
highest bidder for each lot receives that lot and deposits are returned to the
unsuccessful bidders. As deposits are returned to unsuccessful bidders, those
bidders present are asked to initial the sales register opposite their names,
confirming the return. Notification and return of deposits to unsuccessful
bidders not present may be made by letter;
(5) In the event of a tie, a time and place should be
established for a drawing by lot and, if time permits, the bidders whose bids
are tied should be given an opportunity to be present at the drawing. Such
drawing shall be witnessed by at least two employees. The names of the two
witnesses must be retained in the disposal file; and
(6) Successful bidders may be notified of their award
by telephone, but the award must be confirmed by a written notice of award.
14 FAH-1 H-716.4-2 Spot-Bid Sale
(CT:PPM-27; 06-04-2018)
(Uniform State/USAID)
a. This type of sale must be advertised.
b. Spot-bid sale is appropriate when time is important
(waiting periods and prolonged inspections are minimized), or individual lots
are small and identical, or for similar types of property.
c. Pre-sale action:
(1) Each item should be numbered. If necessary, a
minimum acceptable bid may be posted on the item;
(2) A list of sale conditions and a list of the
property to be sold should be prepared, and several copies made, to distribute
to prospective bidders on sale day. The line items on the list should be in
numerical sequence corresponding to numbers on the property. Some of the
conditions to include on the list of sale conditions are as follows:
(a) The property is sold on an as-is basis for cash
payment without refund or warranty by the U.S. Government (unless these
conditions are prohibited by the laws of the host country);
(b) The U.S. Government reserves the right to reject any
bid that is considered to not be commensurate with the value of the property;
(c) Conditions for making payment for the property
(total payment on sale day preferred but suggest allowing for 10 percent down
payment on sale day with a maximum of 24 hours granted for payment of the
balance);
(d) Applicable local taxes and customs duties are
payable by the purchaser before the property can be removed;
(e) Time period for removal of the property after
purchase is made (maximum of 72 hours should be enough time for purchaser to
pay any tax/customs duties and make arrangements for removal); and
(f) The purchaser must make all arrangements and
perform all work necessary to effect removal of the property at his or her
expense.
d. Sale day:
(1) A sales register should be set up for prospective
bidders to sign as they arrive on sale day. The lines in the register should
be numbered and, as a prospective bidder registers, the bidder should be
assigned the bid number corresponding to that line entry (see 14 FAH-1
Exhibit H-716.4-2A for a sales-register format);
(2) Prospective bidders are given prepared bid cards,
a copy of the property listing, and a copy of the sale terms/conditions (see 14 FAH-1
Exhibit H-716.4-2B for a bid-card format);
(3) In requesting bids, the property disposal officer
(PDO) announces the item or lot, its identification number, and a brief
description;
(4) Each item or lot is offered separately and a bid
is made by submitting a bid card. The card should show the item number, bid
price, registration number of the bidder, and the signature of the bidder.
After announcement is made that bidding for an item is closed, no further bids
should be accepted for that item;
(5) Award of each item offered should be made to the
highest bidder, item by item, as the sale progresses. Bids shall not be
disclosed prior to the announcement of award for any item or lot. The amount
of the high acceptable bid and the name or registration number of the
successful bidder should be publicly announced. In the event that all bids are
rejected, the amount of the high bid received should be publicly announced.
Items for which all bids have been rejected may be re-offered later during the
sale, or at a future date;
(6) Successful bidders should make total payment, or
at least a 10 percent deposit, with a maximum of 24 hours allowed for payment
of the balance. Form OF-158, General Receipt, is given to the buyer by the
cashier; and
(7) In case of a tie, a coin toss should be used to
determine the successful bidder. The successful bidders on the tie bid item
must be determined prior to requesting bids for the next item.
14 FAH-1 H-716.4-3 Auction Sale
(CT:PPM-27; 06-04-2018)
(Uniform State/USAID)
a. This type of sale must be advertised.
b. An auction sale is used when there is a sizeable
accumulation of property which has comparatively good commercial market appeal
(sufficient quantity and demand), or when there is a sufficient quantity of
specific groups. Basic factors to be considered in determining whether an
auction sale should be conducted include:
(1) The nature and extent of the demand in the local
market for the type of property to be sold; and
(2) The adequacy of facilities for conducting an
auction.
c. Pre-sale action:
(1) A list of sale conditions and a list of the
property to be sold should be prepared, and several copies made to distribute
to prospective bidders on sale day. The line items on the list should be in
numerical sequence and corresponding numbers should be attached to the property
items. Some of the conditions to be included on the list of sale conditions
are as follows:
(a) Property is sold on an as-is basis for cash payment
without refund or warranty (unless these conditions are prohibited by the laws
of the host country);
(b) Applicable local taxes and customs duties are
payable by the purchaser before the property can be removed;
(c) The U.S. Government reserves the right to reject any
bid that is considered not to be commensurate with the value of the property;
(d) In the event of a dispute as to the amount of the
bid, the item, or item number, the U.S. Government reserves the right to
re-offer the property;
(e) Conditions for making payment for the property
(total payment on sale day preferred but suggest allowing for 10 percent down
payment on sale day with a maximum of 24 hours granted for payment of the
balance);
(f) Time period for removal of the property after
purchase is made (maximum of 72 hours should be enough time for purchaser to
pay any tax/customs duties and make arrangements for removal);
(g) Notice that all arrangements and cost necessary to
effect removal of the property are the responsibility of the purchaser; and
(2) Arrange for the services of a qualified
auctioneer. The auctioneer should be paid from the receipts of the sale.
d. Sale day:
(1) Prospective bidders should be provided with a list
of property to be sold, and with the list of sale conditions;
(2) A sales register should be set up to identify each
bidder who intends to participate in the auction (see 14 FAH-1
Exhibit H-716.4-2A for an example of a sales register) and offers should
not be recognized from any person not properly registered. The sales register
should also include a statement of agreement and bidders should be asked to
sign the register after they have read the list of sale conditions that were
provided;
(3) Usually, bidders communicate the amount of their
bids either orally or by some other means that will be recognized by, and
acceptable to, the auctioneer. Numbered cards or paddles are sometimes used
for this purpose. The lines in the sales register are numbered and, when a
prospective bidder registers, the bidder is given a card or a paddle with a
number corresponding to that line entry. The numbers on the cards or paddles
should be large enough for easy identification by the auctioneer;
(4) The sale should commence with an announcement
concerning the conduct of the sale, and should include any corrections or
changes to the property listing or any other information pertinent to the sale
that may not be on the list of conditions provided to the bidders;
(5) The auctioneer should offer each item separately
in the sequence appearing on the listing, and the award is given to the highest
bidder who should be asked to show the registration number on his or her card
or paddle; and
(6) Successful bidders should make total payment, or
at least a 10 percent deposit, with a maximum of 24 hours granted for payment
of the balance. The buyer makes payment to the cashier and receives a copy of
Form OF-158, General Receipt.
14 FAH-1 H-716.4-4 Negotiated
Sale
(CT:PPM-27; 06-04-2018)
(Uniform State/USAID)
a. Property may be sold on a negotiated basis if the
estimated fair-market value of the property is $1,000 or less, and if at least
two attempts to sell the property competitively were unsuccessful either
because there were no bidders or because the bids were unreasonable (prior
bidders must have the opportunity to submit offers on the negotiated sale). In
certain circumstances, the $1,000 fair-market value limitation may be waived.
Requests for waivers may be submitted to the Logistics Management office (A/LM/PMP)
for State or to the Bureau for Management, Overseas Management Support Division
(M/OMS), for USAID. Large quantities may not be divided to meet the $1,000
limit. Negotiated sales are also permitted when an emergency exists which does
not allow sufficient time to advertise a competitive sale. This method of sale
is used only in special circumstances and requires written justification from
the property disposal officer (PDO) and approval by the property management
officer (PMO).
b. Property shall not be sold to U.S. Government
employees or their relatives, or to U.S. Government contractors or their
relatives on a negotiated basis.
c. Economic factors, or the need for immediate
disposal action, would be the principal considerations for using this method
and would include but not necessarily be limited to:
(1) Sales involving perishables or other property that
would spoil or deteriorate rapidly;
(2) Property that is a health hazard;
(3) Property that is a storage problem or is accruing
rental charges beyond its value; and
(4) Property which has little value or relation to the
costs of advertising.
d. Complete records must be kept of all negotiated-sale
transactions.
14 FAH-1 H-716.4-5 Exchange
(CT:PPM-1; 08-11-2004)
(Uniform State/USAID)
Replacement property may be exchanged in whole or in
partial payment for similar items. For example, when purchasing a new printer,
an agreement could be reached with the vendor for a trade-in allowance on an
old computer.
14 FAH-1 H-716.4-6 Files
(CT:PPM-2; 07-27-2005)
(Uniform State/USAID)
Copies of all documents related to sales (e.g.,
invitations, bids, sales register, copies of sales slips) must be kept in the
disposal file with Form DS-132, Property Disposal Authorization and Survey
Report, for State or Form AID-534-1, Personal Property Disposal Authorization
and Report, for USAID. They may be disposed of three years after final
settlement.
14 FAH-1 H-716.5 USAID Only:
Project Contribution or Grant-in-Aid
(CT:PPM-27; 06-04-2018)
(USAID Only)
See 14 FAM 417.2-4.
For suggested project contribution format, see 14 FAH-1
Exhibit H-716.5A. For suggested grant-in-aid format, see 14 FAH-1
Exhibit H-716.5B.
14 FAH-1 H-716.6 Abandonment or
Destruction
(CT:PPM-27; 06-04-2018)
(Uniform State/USAID)
a. Normally, property reaches the abandonment or
destruction phase only after redistribution, transfer, donation, and sale
efforts have produced no results. It has been then demonstrated and documented
that the property has no utilization or sales value, and is eligible for
disposition through abandonment or destruction.
b. Procedure:
(1) Justification: The first requirement when
preparing to dispose of property through abandonment or destruction is to
determine the proper justification for using this type of disposal. Generally,
justifications used at posts abroad are:
(a) The property has no commercial value. No commercial
value means that it has been determined that the property has neither utility
nor monetary value (either as an item or as scrap); or
(b) The cost of care, handling, and preparation of the
property for sale would be greater than the expected sale proceeds (estimated
fair-market value);
(2) Written finding: Upon selection of the
appropriate justification, the property disposal officer (PDO) should prepare a
written finding justifying the abandonment or destruction action. The written
finding should include:
(a) A detailed description of the property, condition,
and total acquisition cost;
(b) A full account of efforts to dispose of the property
through all other disposal options;
(c) The authority for the abandonment or destruction
action along with any pertinent supporting documentation;
(d) A statement describing the proposed method of
destruction (e.g., burning, burying, etc.) or the abandonment location;
(e) A statement that the proposed abandonment or
destruction action will not be detrimental or dangerous to public health or
safety, and will not infringe on the rights of other persons; and
(f) The signature of the property disposal officer
(PDO). The written finding for property having an acquisition cost in excess
of $500 should also be signed by the property management officer (PMO);
(3) Certification:
(a) An employee, other than the accountable property
officer (APO) or the property disposal officer (PDO), must serve as witness to
the destruction or abandonment. To document the action and provide an audit
trail following destruction or abandonment, a certificate of destruction or
abandonment must be prepared by the PDO, and must be signed and dated by the
PDO and the employee who witnessed the abandonment or destruction action. The
certificate should then be made part of the disposal file;
(b) The certificate should read as follows:
I certify that (identify items) were (abandoned/ destroyed) in
a manner authorized by 14 FAM 412.4-1.
_____________________ ________
Property Disposal Officer Date
I certify that I have witnessed the (abandonment/
destruction) of the described property in the manner and on the date stated
herein.
_____________________ ________
Witness Date
14 FAH-1 H-716.7 Property Disposal
Officer Final Action
(CT:PPM-2; 07-27-2005)
(Uniform State/USAID)
a. Any given disposal document may result in a variety
of disposal actions (i.e., redistribution, transfer, sale, etc.). The property
disposal officer (PDO) must retain copies of all documents relating to disposal
actions until total disposal action on Form DS-132, Property Disposal
Authorization and Survey Report, for State or Form AID-534-1, Personal Property
Disposal Authorization and Report, for USAID has been made. The PDO must
complete the Property Disposal Officer field on Form DS-132 (field [17] on 14 FAH-1
Exhibit H-713.1), or Form AID-534-1 including any shipping information
(e.g., carrier, bill of lading number, etc.), and forward the original of the
form and copies of related disposal documents to the accountable property
officer (APO) for records adjustment and filing.
b. State only: If reimbursement has been received
through sale or transfer, the PDO must send a copy of Form DS-132 to the budget
and fiscal (B&F) office with instructions for depositing the receipts. The
B&F office must complete the budget and fiscal officer (BFO) field on the
backside of Form DS-132 and return the copy to the APO.
c. USAID only: Payments received through the sale or
transfer of property are submitted to the USAID mission controllers office
along with a copy of Form AID-534-1. The controllers office will document
Form AID-534-1 noting final action and will return the copy to the USAID APO.
14 FAH-1 H-716.8 Accountable
Property Officer (APO) Final Action
(CT:PPM-2; 07-27-2005)
(Uniform State/USAID)
a. When the original of Form DS-132, Property Disposal
Authorization and Survey Report, for State or Form AID-534-1, Personal Property
Disposal Authorization and Report, for USAID and related disposal documents are
received back from the property disposal officer (PDO), the accountable
property officer (APO) must ensure that the property is removed from the
property records, and then must complete the Accountable Property Officer field
on the back side of Form DS-132 or Form AID-534-1.
b. All documents are retained on file in support of
property records. They may be disposed of three years after final disposal
action is taken (if sale was part of the disposal action, the file must be kept
until three years after final settlement).
14 FAH-1 H-717 THROUGH H-719 UNASSIGNED
14 FAH-1 Exhibit H-713.1
Form DS-132
State Only: Property Disposal
Authorization and Survey Report
(CT:PPM-27; 06-04-2018)
Data Field Preparation Instructions for Form DS-132
State only: These instructions will aid in the
preparation of Form DS-132 for reporting unneeded personal property. The data
field numbers on the instructions below correspond to the circled numbers in
each field on the form. Fields not addressed should be left blank.
Data Field
[1] Post
Enter the name of the post. If post is preparing the
disposal document for another agency, the name of the agency may also be
entered here.
[2] Date
Enter the date that the report is prepared.
[3] Report Number
Report numbers should be in numerical order and should
include the current calendar year; for example, the first report in calendar
year 2002 could be D/2002-1.
[4] Property Classification
Place an "X" in the appropriate box. For
property being disposed of, the classification will generally be either
replacement property or foreign excess property.
[5] Item Number
Each line item on the report should be listed in numeric
sequence.
[6] Property Number
Enter the nonexpendable property application (NEPA)
property number, if applicable.
[7] Description
Enter the property descriptions in alphabetical order
using the description as recorded on the property records. Include model or
serial numbers, if appropriate. When any of the property is disposed of by
sale, the sales receipt should be annotated in this field with the appropriate
line item. As an alternative to entering all of the descriptive information,
posts using the nonexpendable property application (NEPA) may enter only the
property number in Block 6, and then attach a NEPA printout of items to be
disposed of to Form DS-132. To get a printout, use the location control screen
to establish a unique location in the warehouse; for example, establish an
"EXCESS" location. Then transfer everything to be disposed of to
this unique location and print an inventory listing by location limited to that
location. For USAID: Enter the correct Object Class, Control Number, and
standard description assigned to each item in the AID Nonexpendable Property
Guide.
[8] Quantity
Enter quantity.
[9] Unit
Enter the item unit (e.g., each, box, dozen). At posts
using NEPA, it will not be necessary to enter the unit for nonexpendable
property.
[10] Unit Cost
Enter the unit cost recorded on property accountable
records. If the item cost less than $500, and is not recorded on accountable
property records, an estimated cost can be determined from stock control
records.
[11] Total Cost
Enter the total line-item cost in the U.S. currency
field. For USAID: Enter the cost in local currency for AID Trust-Fund
property.
[12] Total
Enter the complete total of field [10].
[13] Circumstances Causing Reported Status of Property
Use this field when this form reports missing or damaged
property (see 14 FAH-1
H-226.5).
[14] Accountable Property Officer
The accountable property officer (APO) should make an
entry in this field recommending that the property be disposed of, and stating
his or her reasons for the recommendation; for example, "Property listed
on this report is in poor condition and uneconomical to repair. I recommend
disposal action.
[15] Property Management Officer
The property management officer (PMO) either approves or
disapproves the request. If the request is disapproved, the PMO states reasons
for the disapproval and returns Form DS-132, Property Disposal Authorization
and Survey Report, for State or Form AID-534-1, Personal Property Disposal
Authorization and Report, for USAID to the accountable property officer (APO).
If the request is approved, the PMO completes this field and forwards Form DS-132
or Form AID-534-1 to the property disposal officer (PDO).
[16] Board of Survey Findings and Decision
This field is used when the property survey board is
involved with a report of missing or damaged property.
[17] Property Disposal Officer
After all of the property listed on Form DS-132 has been
disposed of, the property disposal officer indicates disposal action(s) taken
and forwards the original to the accountable property officer along with copies
of any other documents relating to the disposal action(s). If reimbursement
has been received through sale or transfer, a copy of Form DS-132 should also
be forwarded to the budget and fiscal (B&F) office.
[18] Budget and Fiscal Officer
When the post receives payment for property, the property
disposal officer forwards Form DS-132 to the budget and fiscal officer for
State who completes this field by indicating action taken (for example,
"payment received and deposited") and forwards Form DS-132 to the
accountable property officer (APO).
[19] Property Management Officer
Final comments by the property management officer, if
appropriate.
[20] Accountable Property Officer
When all actions are complete, the original is returned to
the accountable property officer who sees that property records are adjusted to
show the disposition of the property. After adjustment, the accountable
property officer records the action taken (for example, "property has been
removed from the property records").
14 FAH-1 Exhibit H-714.2
Form DS-584
Nonexpendable Property Transaction (Redistribution)
(CT:PPM-2; 07-27-2005)
Data Field Preparation Instructions for Form DS-584
A separate transfer document should be prepared for any
property being redistributed to another post. Form DS-584, Nonexpendable
Property Transaction, should be used for this purpose. The data field numbers
on the instructions below correspond to the circled numbers in each field on
the form. When using the nonexpendable property application (NEPA) or when
serial-numbered items are involved, a line entry for each item should be made.
Serial numbers, when applicable, should be part of the description.
Data Field
[1] Date
Date the Form DS-584 is prepared.
[3] Action
Enter an "X" in the Redistribution field, to
indicate that this is a property redistribution action.
[4] Control/Auth No.
Enter the number of the Form DS-132, Property Disposal
Authorization and Survey Report, on which the property was declared excess.
[6] Requestor's Name
The name of the receiving post contact.
[7] Post/Agency
The name of the receiving post.
[10] Telephone Number
The telephone number of the receiving post contact.
[13] Approving Officer Signature
The property disposal officer signs as approving officer.
[14] Deliver/Ship To
The delivery address of the post to which the property is
being redistributed.
[15] Property Number
Enter the nonexpendable property application (NEPA)
property number, if applicable.
[16] Serial Number
Enter any serial number.
[17] Description
Use the same descriptions that appear on Form DS-132,
including any model numbers.
[18] Quantity
When using NEPA or when entering serial-numbered items,
this field may be left blank since items are listed individually. Otherwise,
the line-item quantity being redistributed should be entered.
[19] Condition
Indicate the condition of the property.
[20] Unit Cost
Enter the unit cost indicated on Form DS-132.
[21] Total Cost
The total line-item cost.
[22] Property Records
Leave blank; property records will be adjusted using Form DS-132
after all of the property listed on the form has been disposed of.
[23] Receipt
The receiving post's receiving clerk signs and dates.
14 FAH-1 Exhibit H-715.1-2
Form DS-584
Nonexpendable Property Transaction (Agency-to-Agency Transfer)
(CT:PPM-2; 07-27-2005)
Data Field Preparation Instructions for Form DS-584
A separate transfer document should be prepared for any
property being transferred to another agency. Form DS-584, Nonexpendable
Property Transaction, should be used for this purpose. This exhibit is an
example of a Form DS-584 prepared by State. The data field instructions in the
exhibit will aid in the preparation of Form DS-584. The data field numbers in
the instructions below correspond to the circled numbers in each field on the
form. When using the nonexpendable property application (NEPA) or when
serial-numbered items are involved, a line entry for each item should be made.
Serial numbers, when applicable, should be part of the description.
Data Field
[1] Date
Date the Form DS-584 is prepared.
[3] Action
Enter an "X" in the Transfer field to indicate
that this is a property transfer action.
[4] Control/Authorization No.
Enter the number of the Form DS-132, Property Disposal
Authorization and Survey Report, on which the property was declared excess.
[6] Requestor's Name
The name of the receiving agency contact.
[7] Post/Agency
The name of the receiving agency.
[10] Telephone Number
The telephone number of the receiving agency contact.
[13] Approving Officer Signature
The property disposal officer signs as approving officer.
[14] Deliver/Ship To
The delivery address of the agency to which the property
is being transferred.
[15] Property Number
Enter the nonexpendable property application (NEPA)
property number.
[16] Serial Number
Enter any serial number.
[17] Description
Use the same descriptions that appear on Form DS-132,
including any model numbers.
[18] Quantity
When using NEPA this field is left blank since each line
will be a one-item entry. Otherwise, the line-item quantity being transferred
should be entered.
[19] Condition
Indicate the condition of the property.
[20] Unit Cost
Enter the unit cost indicated on Form DS-132.
[21] Total Cost
The total line-item cost.
[22] Property Records
Leave blank; property records will be adjusted using Form DS-132,
Property Disposal Authorization and Survey Report, after all of the property on
the form has been disposed of.
[23] Receipt
The receiving agency's receiving clerk signs and dates.
14 FAH-1 Exhibit H-715.2-3
Form DS-584
State Only: Nonexpendable Property Transaction
(Transfer to an Entity Such as a Commissary Abroad)
(CT:PPM-27; 06-04-2018)
Data Field Preparation Instructions for Form DS-584
The data field preparation instructions below will assist
in the preparation of Form DS-584. The data field numbers in the instructions
correspond to the circled numbers in each field on the form.
Data Field
[1] Date
Date the Form DS-584 is prepared.
[3] Action
Enter an "X" in the Transfer field to indicate
that this is a property transfer action.
[4] Control/Authorization No.
Enter the number of the Form DS-132, Property Disposal
Authorization and Survey Report, on which the property was declared excess.
[6] Requestor's Name
The name of the contact at the receiving activity.
[7] Post/Agency
The name of the receiving activity.
[10] Telephone Number
The telephone number of the contact at the receiving
activity.
[13] Approving Officer Signature
Generally, the property management officer will be the
only approving officer. In some cases, approval from the appropriate regional
bureau or the Bureau of International Organization Affairs (IO) is required
(see 14 FAM
417.2-4(A), paragraph d).
[14] Deliver/Ship To
The delivery address of the activity to which the property
is being transferred.
[15] Property Number
Enter the nonexpendable property application (NEPA)
property number.
[16] Serial Number
Enter any serial number.
[17] Description
Use the same description that appears on Form DS-132
including any model numbers.
[18] Quantity
When using NEPA, this field is left blank. Otherwise the
line-item quantity being transferred should be entered.
[19] Condition
Indicate the condition of the property.
[20] Unit Cost
Enter the unit cost indicated on Form DS-132.
[21] Total Cost
The total line-item cost.
[22] Property Records
Leave blank; property records will be adjusted using Form DS-132
after all of the property on the form has been disposed of.
[23] Receipt
The receiving activity's property officer signs and dates.
14 FAH-1 Exhibit H-716.4-2A
Sales Register Format
(CT:PPM-1; 08-11-2004)
14 FAH-1 Exhibit H-716.4-2B
Bid Card Format
(CT:PPM-1; 08-11-2004)
BID CARD
Item No. ______________________ Amount Bid ________________
Bidders Registration No. ______________________
Subject to the general sales terms and conditions that have
been made known to me, I, the undersigned, offer and agree to purchase the item
designated above at the price indicated above.
Name of Bidder __________________________________________
(Print Name)
Address ________________________________________________
________________________________________________
Signature _______________________________________________
Telephone No. _________
14 FAH-1 Exhibit H-716.5A
Suggested Project Contribution Format
(CT:PPM-1; 08-11-2004)
(USAID Only)
In addition to the USAID dollar-financed commodities shown
in the project agreement [title and number]___________________________
dated ____________________________, between the Government
of [country]__________________________________________________ and the Agency represented
by the Director of USAID to
[country]______________________________________________, the title to the property
listed below is hereby transferred to the Ministry (Agency) of
_______________________________________ for the express purpose of advancing
objectives set forth in the Project Agreement.
Unit
Total
Item Number Description Quantity Cost Unit Cost
Accepted by:
(signed) Director
Ministry of ___________
(date)
USAID Property Management Officer
USAID Accountable Property Officer
USAID Program Officer
USAID Controller
14 FAH-1 Exhibit H-716.5B
Suggested Grant-in-Aid Format
(CT:PPM-1; 08-11-2004)
(USAID Only)
Grant In Aid
For purposes of implementing the cooperative program and to
improve the capability or capacity of [office-field words]___________________.
In the [Ministry
of]_________________________________________. The Agency for International
Development, represented by the Director of USAID to
_____________________________, hereby makes a grant in aid and transfers title
for the property listed below to the Ministry of
________________________________________________________.
Unit
Total
Item Number Description Quantity Cost Unit Cost
Accepted by:
(signed) Director
Ministry of ___________
(date)
USAID Property Management Officer
USAID Accountable Property Officer
USAID Program Officer
USAID Controller