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(h) Disposal of agricultural commodities.—This subsection requires the Administrator to transfer to the Department of Agriculture without charge, any surplus agricultural commodities, foods, or cotton or woolen goods, whenever the Secretary determines it necessary in carrying out his responsibilities with respect to price support or stabilization, and further requires that the receipts from disposals by the Department of Agriculture shall be deposited pursuant to authority available to the Secretary of Agriculture and the net proceeds of sales of property so transferred shall be credited pursuant to the provisions relating to proceeds in section 105 (b). It also provides that, except when sold for export, surplus farm commodities so transferred may not be sold in quantities in excess of or at prices less than those relating to such commodities when sold by the Commodity Credit Corporation, or at less than current prevailing market prices, whichever may be the higher. The Commodity Credit Corporation may' dispose of such commodities for cash, exchange of goods, or credit, for export. This subsection also provides that no such food products shall be sold for export if there is an actual or anticipated shortage of such food products in the United States, or if they are needed to supply normal consumer demand in the United States.

(i) Disposal of vessels for merchant use.-This subsection establishes the United States Maritime Commission as the statutory disposal agency for surplus vessels of 1,500 gross tons or more, which it determines to be merchant vessels or capable of conversion to merchant use. Such vessels are to be disposed of in accordance with the Merchant Marine Act of 1936 and other laws relating to the sale of such vessels. Section 105. Proceeds from transfer or disposition of property

(a) Deposit of proceeds into miscellaneous receipts.—This subsection requires all proceeds from the transfer of excess property to a Federal agency or from the sale, lease, or other disposition of surplus property to be covered into the Treasury as miscellaneous receipts, with the exceptions noted in subsections (b), (c), and (d).

(b) Crediting of reimbursable funds.—This subsection provides that in cases where the property was acquired by funds either not appropriated from the general fund of the Treasury, or appropriated therefrom and by law reimbursable from assessments, taxes, or other revenues, the net proceeds of the disposition or transfer of such property shall be credited to the reimbursable fund or appropriation or paid to the Federal agency declaring such property excess. It further provides that the proceeds shall be credited to miscellaneous receipts if the agency declaring the property excess shall deem it uneconomical or impracticable to ascertain the amount of net proceeds.

(c) Refunds to purchasers. This subsection provides that Federal agencies disposing of surplus property may deposit in a special account with the Treasury whatever amounts they deem necessary to permit refunds to purchasers when any disposition is rescinded, or for breaches of warranty, and to withdraw the amounts so to be refunded or paid.

(d) Proceeds from contractors' sales. This subsection recognizes that the contractual provisions authorizing the proceeds of sales of property to be credited to price or cost of the work covered by the contract, are controlling and are not subject to the requirements of the act relating to covering proceeds into the Treasury as miscellaneous receipts.

(e) Preservation of security.This subsection authorizes the Administrator to preserve and manage any mortgage, lien, or other interest retained as security in the disposition of surplus property, and authorizes him to enforce and settle the rights of the Government with respect thereto. Section 106. Policies, regulations, and delegations

(a) Presidential policies.-By reason of the impact of this legislation upon all agencies in the executive establishment, this subsection authorizes the President if he deems it advisable, to prescribe over-all policies to guide the Federal Works Administrator and executive agencies in operations under this act.

(b) Regulations of the Administrator.—This subsection requires the Administrator to prescribe regulations for the effectuation of his functions under the act, and also requires the head of each executive agency to issue such orders and directives as are necessary to carry out such regulations.

(c) Delegations of authority.Under this subsection the Administrator may redelegate his authority excepting, however, the authority to issue policy regulations and the authority to make reorganizations within the Federal Works Agency.

(d) Designation of other agencies.-So as to provide the greatest use of existing personnel and facilities within established agencies, this subsection authorizes the Administrator to designate other executive agencies to perform various procurement, utilization, or disposal functions with the proviso that any such designation shall be made only with the consent of the agency concerned.

(e) Transfer of personnel and funds.—When any designation is made under subsection (d) the Administrator may, under this subsection, transfer funds and personnel to the affected executive agency.

(f) Industry advisory committees. This subsection authorizes the Administrator to establish industry advisory committees to advise with him in carrying out his functions. Experience has demonstrated the value of such committees to Government officers where Government programs affect closely business and industry. Specific statutory authorization is necessary because of the prohibitions against unauthorized boards and commissions in title 31, United States Code, section 673, volume 35, Statutes at Large, page 1027. Compare also title 5, United States Code, section 83, volume 37, Statutes at Large, page 124, and title 31, United States Code, section 551, volume 49, Statutes at Large, page 19. Because of the better control over the membership and activities of industry committees which is possible when they are established pursuant to statute, it would be advisable to provide specifically for such committees even apart from these laws.

(9) Consultation with other agencies.—This subsection makes it mandatory for the Administrator to advise and consult with affected Federal agencies. Section 107. Surveys and standardization

(a) Surveys, supply catalog, and contract forms.--This subsection authorizes the Administrator to survey Government property and management practices, to establish and maintain a uniform Federal supply catalog system and to prescribe standardized purchase and contract forms, procedures, and specifications. Making surveys and requiring reports concerning Government property, with due regard for the requirements of agencies concerned, will obviously promote better supply practices, and indeed is indispensable if the powers under sections 102 and 103 are to be effectively exercised. The authority to standardize Government purchase and contract forms, procedures and specifications has been in effect and in use for many years, and is demanded by industry to make its relations with Government easier. It is exasperating, for example, to have a contract for a supply item, with one agency, different in meaning and effect from one for the same kind of item, with another agency. Existing control over the standardization of the Government construction contract forms and leases is continued in effect by provi ion in section 302 (b).

A uniform Federal supply catalog system, which identifies and classifies personal property under the control of Federal agencies, is essential for a wellmanaged Federal supply system so that there may be a common supply language among all parties to a transaction. The catalog will ultimately mean large savings to the Government through reducing inventories of parts and supplies. Without such a catalog, identical items are carried in stock under different designations, swelling inventories to needless size. This cannot be avoided until each item is described, classified, and given a number for identification, so that duplications can be spotted at once. The disposal of surplus Government personal property will thus likewise be speeded.

(6) Catalog and specifications mandatory.--Because of the savings resulting from common use of the uniform supply catalog system and of standard purchase specification, this subsection requires executive agencies to use them as far as practicable when prescribed by the Administrator. It is contemplated that questions of practicability, where dispute arises, will be settled by the Administrator. Section 108. Applicability of antitrust laws

This section requires any executive agency in beginning negotiations for the disposal of any plant or other property costing $1,000,000 or more, to seek advice of the Attorney General, and it shall ha the 'ty of the Attorney General to advise the executive agency whether the proposed disposition of the property would tend to create or maintain a situation inconsistent with the antitrust laws. The executive agency must assist the Attorney General by furnishing him any requisite information it may possess, essential to the Attorney General's determination. This section also provides that nothing in the act shall modify or limit the applicability of the antitrust laws to persons who acquire property under the provisions of the act.

Section 109. Employment of personnel

(a) Civil-service laws.-Employment of personnel is required by this subsection to be subject to the civil-service and classification laws.

(6) Consultants.-As an exception to the foregoing, this subsection grants to the Administrator limited authority to procure the temporary service of experts and consultants.

(C) Officers of other agencies. The principal purpose of this subsection is to authorize the Administrator to utilize commissioned officers in the armed services with the consent of the head of the agency concerned. Section 110. Civil remedies and penalties

(a) Liability of Government employees.--This subsection exempts officers and employees of the Government disposing of property under this act from liability with respect to such disposition, except for their own fraud, and from liability for the collection of any purchase price determined to be uncollectible. This provision is necessary because of the wide discretion which must be permitted persons charged with disposition under circumstances calling for swift action, and the tremendous volume of property covered by the act.

(b) Civil penalties for fraud.---This subsection deals with the civil liability of persons who engage in false, fraudulent, or fictitious activities or conceal or misrepresent material facts or act with intent to defraud the United States, or who enter into an agreement or conspiracy, or cause other persons to do any of the foregoing. The United States is given the option of selecting among three different measures of damages :

1. Any person engaged in such activities can be sued for the sum of $2,000, for each such act, plus twice the amount of the damage ssutained by the United States, plus the cost of suit.

2. The United States may recover from such person the amount of consideration paid by it to such person, or twice the amount of consideration which such person agreed to give the United States.

3. The United States may keep the property acquired by reason of the

above-described fraud, plus the consideration given to it for that property. Section 111. Reports to Congress

This section requires the Administrator to submit to Congress annually, in January, a report regarding the administration of this title, together with any recommendations for amendments which he may deem appropriate.


Section 201. Disposal of foreign excess property

This section generally provides that, except where commitments exist under previous agreements, all excess property located in foreign areas shall be disposed of by the owning agency. The head of the agency in question is directed to conform to the foreign policy of the United States in making such disposals. The section provides further that the Secretary of State shall continue to administer existing agreements with respect to the disposal of foreign excess property and shall have authority to amend, modify, and renew such agreements in order to carry on the foreign educational exchange program and the purposes of the Foreign Service Buildings Act and to provide local currencies under procedures established by the Secretary of the Treasury for the payment of expenses of the United States in the country in question. Section 202. Methods and terms of disposal

This section authorizes disposals of foreign excess property under terms similar to those in the Surplus Property Act of 1944, as amended, under which foreign disposals are currently being made. Foreign excess property may be disposed of by sale, exchange, lease, or transfer, for cash, credit, or other property, with or without warranty, and upon such other terms and conditions as the head of . the executive agency concerned deems proper. Such property may be disposed of for foreign currencies or credits, or substantial benefits or the discharge of claims resulting from the compromise or settlement of such claims by any executive agency in accordance with the law, whenever the head of the executive agency concerned determines that it is in the interest of the United States to do so.

Disposals may be made without advertising when the head of the executive agency finds such a course to be most practicable and to be most advantageous to the Government. Sales of agricultural commodities, food, or cotton or woolen

goods must include a condition forbidding importation into the United States unless the Secretary of Agriculture determines that such property is in short supply in this country. The head of the executive agency responsible for disposal may execute the documents necessary to transfer the interest of the United States in the property and may authorize abandonment, destruction, or donation of foreign excess property under his control which has no commercial value or the estimated costs of care and handling of which would exceed the estimated proceeds of sale. Section 203. Proceeds; foreign currencies

This section provides that the proceeds from sales of foreign excess property shall, if in the form of foreign currencies or credits, be administered in accordance with procedures prescribed by the Secretary of the Treasury and shall, if in United States currency or when reduced to United States currency, be covered into the Treasury as miscellaneous receipts. The provisions of section 105 (b) relating to reimbursable funds or appropriations shall apply to proceeds of foreign excess property under this title. The section further provides that any executive agency disposing of surplus property under this title may establish a special account with the Treasurer of the United States from which appropriate refunds to purchasers may be made. Section 204. Miscellaneous provisions

(a) Presidential policies.—The President is granted general authority to prescribe policies deemed necessary to execute the provisions of this title.

(b) Delegation of authority.Any authority conferred upon any executive agency under this title may be delegated and successive redelegations authorized by the head of such agency to any official in such agency or to the head of another executive agency.

(c) Employment of personnel.The head of each executive agency responsible for the disposal of excess property hereunder may, subject to the civil-service and classification laws, appoint and fix the compensation of necessary personnel and without regard to the civil-service and classification laws appoint and fix the compensation of personnel outside the continental limits of the United States as may be necessary to carry out his functions.

(d) Reports to Congress.-Agencies responsible for foreign disposal shall make annual reports to Congress relative to its activities under this title.

(e) Transfer of personnel, funds, etc.-Such records, property, personnel, obligations, commitments, and unexpended balances of appropriations, allocations, and other funds as are determined by the Director of the Bureau of the Budget to relate to the functions transferred to another executive agency under this title shall be transferred from the Department of State to that agency.

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Section 301. Applicability of existing procedures

This section continues in effect all existing policies and procedures until superseded or amended under authority of the act. Section 302. Repeal and saving provisions

(a) Repeal of Surplus Property Act, certain erceptions.—This subsection re. peals all the Surplus Property Act of 1944 except (i) sections 13 (a) and (b) relating to public benefit allowances to health and educational institutions which are continued in effect until December 31, 1949 ;. (ii) section 13 (g) relating to the airport program and section 32 (b) (2) relating to the foreign scholarship program both of which are retained as permanent legislation; and (iii) section 28 suspending a statute of limitations. The provisions of the Supplemental Independent Offices Appropriation Act, 1949 (Public Law 862, 80th. Cong.) as amended, abolishing the War Assets Administration as of June 30, 1949, and assigning its property disposal functions to several different agencies are likewise repealed, as are two statutes authorizing the armed services to donate obsolete personal property for educational purposes. The latter statutes have in effect been superseded by Public Law 889, Eightieth Congress, which is listed in subsection (d) as one of the statutes not to be affected by this act. This subsection also continues until December 31, 1949, the existing priorities and preferences with respect to the disposal of surplus real property.

(b) Repeal of Executive Order 6166.—This subsection supersedes Executive Order 6166 so far as it relates to the Bureau of Federal Supply.

(c) Declaration of additional authority.—By this subsection the authority conferred by the act is declared supplemental and not subject to other legislation.

(d) Speciul exemptions from the act.—This subsection exempts from operations under the act a number of activities requiring special treatment. Chief among these are programs for price support, stabilization, grants to farmers, and foreign aid; the stock piling of critical materials; the national school-lunch program; the Housing and Home Finance Agency with respect to the disposal of residential property; the Atomic Energy Commission; and the statutory programs of the armed services for donation of obsolete personal property in the public interest. Section 303

(a) Authorization for appropriations. This subsection authorizes appropriations generally without specification as to amount.

(b) Transfer authority.Under this subsection an executive agency may use care and handling of property funds heretofore appropriated to it for purposes contemplated by sections 102, 103, 104, and 106 of the act. Section 304. Separability

Each provision of the act is declared separable so far as validity is concerned. Section 305. Effective date The effective date of the act should be established as June 30, 1949.

Mr. HOLIFIELD. You may proceed, Mr. Elliott. I think we all have copies.

Mr. ELLIOTT. I would like to say at the outset, to follow up what General Fleming said, that this is not so much a bill for central procurement as it is for a centralized system of procurement which is quite a different thing.

We do not anticipate that necessarily all the buying will be done by one big buying agency, but we do anticipate that there will be a central system of procurement, and in particular cases, the actual buying will be done either by the central agency or, as General Fleming said, by individual agencies for the whole Government or by each agency for itself, as may be most advantageous and appropriate in the interests of the Government; for instance, the example he gave relative to the Navy purchasing all the oil.

In effect, that is what the declaration of policy says. It is very brief and really provides that there will be, by this act, an efficient and economic system for procurement and supply of personal property and nonpersonal services, the utilization of available propertyand that means both real and personal—and the disposal of surplus property whether real or personal.

The next section deals with definitions. I would like to invite your attention to just two or three of them because they are recurrent.

First is the definition of property, which includes all property and all interest in property except the public domain and the larger naval vessels.

Then we get to excess and surplus property. Excess property as used throughout this bill means property which is no longer required for the needs and the discharge of responsibilities of a particular executive agency as determined by the head of that agency. In other words, he gets to the point where he says, “I have this property, real or personal. I do not need it for my agency."

It then becomes excess property and the head of the using agency so declares it to the Federal Works Administrator. It becomes surplus property only when the Federal Works Administrator has sur

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