.09 Telephonic requests for withdrawals of items of surplus property from sale must be kept to a minimum and will be made only when the sale is immediately pending and time will not permit action by letter. Such telephonic requests will normally be made by the Assistant Administrator or the Surplus Property Officer. In exceptional circumstances, such actions may be taken by Division Directors, but only after consultation with the Assistant Administrator or the Surplus Property Officer. A memorandum reciting the action taken by the Assistant Administrator, Surplus Property Officer, or the Division Director shall be prepared and a copy sent to the office of the Surplus Property Officer for record and file purposes. .10 Immediately upon the decision to prepare a Technical Market Impact Study and the establishment of a target date, the Division Director shall prepare a letter to the appropriate office of the Department of Defense stating that such a study is being conducted, giving the target date, and requesting that the specific property be withheld from sale pending completion of the study. This letter shall be prepared for the Assistant Administrator's signature and shall be routed through the office of the Surplus Property Officer. .11 The Surplus Property Officer shall upon receipt of advice of the initiation of a Technical Market Impact Study, prepare a commodity file folder and file therein a copy of the document containing the listing of the specific item to be studied. This folder shall be filed in a tickler file by target date. .12 The Technical Market Impact Study shall be prepared in the form of a memorandum from the Division Director to the Assistant Administrator for Business Services, through the Surplus Property Officer. The original only is required to be submitted, together with one copy of supporting factual data, minutes, etc. This study shall contain the following information: 1. Statement of reason for study. 2. Statistical and/or factual data (indicate source and date). 3. Summary minutes of an Industry Advisory Committee meeting or other meetings or conferences. 4. Analysis of current market situation. 5. General conclusions. 6. Specific recommendations. The following shall be taken into consideration in arriving at a recommendation: 1. Basic Information and Data. a. Production. b. Capacity. c. Shipments. d. Inventory Position-retail, wholesale, and manufacturing levels. 2. Present Employment Situation in the Industry. 3. Effect on Manufacturers, Distributors, Dealers, or Users. 4. Special Factors or Conditions. Recommended action must be documented and based on analyses developed in the study. Recommended action may include: temporary withrawal, defined pro-rated disposals, disposals as scrap, retention in reserves, donations, etc. .13 When there may be an adverse impact on small business, the Small Business Administration should be consulted by the Industry Division Director. Comments and recommendations of the Small Business Administration shall be incorporated in the Technical Market Impact Study. Any significant differences between representatives of the Small Business Administration and the Industry Division of the Business and Defense Services Administration should be brought to the attention of the Assistant Administrator Immediately. .14 The Division Director with the concurrence of the Assistant Administrator may request approval to call an industry advisory group to review the impact that would result from the sale of specified items of surplus personal property. Pricing policies shall not be discussed at these meetings. As appropriate the Chief, Disposal Branch of the General Services Administration, and representatives of the Department of Defense, the Small Business Administration, and any other interested department or agency shall be invited to attend. 15 The Division Director shall notify the Surplus Property Officer in advance of any proposed inter-departmental meetings. .16 If in the development of the market study it is desirable to undertake a formal survey which will make extensive utilization of the services of the Office of Field Services, the Division Director shall prepare a written request through the Surplus Property Officer and the Assistant Administrator to the Director, Office of Field Services, stating the precise information desired and outlining precautions deemed necessary in obtaining the requested data. .17 Upon completion of the Technical Market Impact Study, the Industry Division shall prepare a letter for the signature of the Assistant Administrator for Business Services to the Department of Defense or other appropriate agency. This letter should include appropriate recommendations and in substantiation thereof should summarize the main points of the impact study and the factual data related thereto without disclosing individual company information. This letter shall also request the Department of Defense or other Agency to advise the Business and Defense Services Administration of action taken on the case. .18 The Division Director shall forward the letter mentioned in .17 above to the Surplus Property Officer for his review and forwarding to the Assistant Administrator for his final review and signature. The original of the TechniIcal Market Impact Study must accompany this letter for review purposes and will later be filed in the office of the Surplus Property Officer. .19 Upon final approval and signature of the Assistant Administrator, the letter to the Department of Defense or other appropriate Agency will go forward, with distribution of copies as appropriate. The original of the Technical Market Impact Study and one copy of the outgoing letter and all other pertinent correspondence shall be filed in the commodity folder in the office of the Surplus Property Officer in a section of file for followup with the appropriate Agency. .20 If advice as to the Department of Defense or other Agency's action on the specified surplus personal property item has not been received within a reasonable time, the Surplus Property Officer shall follow-up to ascertain action taken. .21 Upon receipt of information as to disposition of the case by the Department of Defense or other Agency, notation will be made in the commodity folder and the folder will then be filed in the case closed section of the domestic surplus file. The Surplus Property Officer shall notify the appropriate Industry Division (s) of final action taken in order that they may complete their records. This notification shall generally be by copy of the other Agency's letter. SECTION 6. EXEMPTION .01 There exist in the Department of Defense and other Agencies special arrangements for handling machine tools and related production equipment because of the complex inter-relationship between these items and the Nation's machine tool mobilization base. Therefore, machine tools and related production equipment items are exempt from paragraphs .04, .10, .12, .17, .18, and .19 of Section 5. However, statistical reports as may be required and copies of correspondence covering excess and surplus machine tools and related production equipment shall be furnished the Surplus Property Officer to meet his program and procedural requirements. SECTION 7. RECORDS AND REPORTS .01 The Surplus Property Officer shall prepare from information in his files monthly statistical and narrative reports covering the domestic excess and surplus personal property operation. SECTION 8. REVOCATION OF PREVIOUS INSTRUCTIONS .01 This Instruction supersedes BDSA Operating Instruction No. 11, dated October 15, 1954. ATTACHMENT No. 1 H. B. McCoy. MEMORANDUM OF UNDERSTANDING AND COOPERATION IN PROGRAM FOR THE DISPOSAL OF SURPLUS PERSONAL PROPERTY (AS DISTINGUISHED FROM REAL PROPERTY) Between Office of Storage, Distribution and Disposal; Office of the Asst. Secretary of Defense for Supply and Logistics. And: Business and Defense Service Administration, Department of Commerce. Consonant with the exchange of letters between Lothair Teetor, Assistant Secretary of Commerce for Domestic Affairs (May 18, 1954), and Thomas P. Pike, Assistant Secretary of Defense for Supply and Logistics (June 4, 1954) the following cooperative understanding between the Department of Commerce and the Department of Defense is accepted and placed in operation upon sig nature by indicated parties for and on behalf of these Departments. The purpose of this Memorandum of Understanding is to establish a systematic review by the Department of Commerce of significant sales of D.O.D. surplus personal property and the subsequent issuance of technical market study reports concerning sensitive items to the Office of the Assistant Secretary of Defense for Supply and Losgistics indicating market impact of serious proportions likely to result from the sale of quantities of such selected items. To carry out the mutual ojective of these two Departments that surplus personal property of the Armed Forces be disposed of in such a manner as to provide a fair rate of return to the Government but with a minimum impact on civilian markets, the following cooperative arrangement is established: 1. The staffs of the several Industry Divisions of the Business and Defense Services Administration, Department of Commerce, will review lists of excess and surplus personal property available for sale and evaluate the cumulative market impact of such offerings upon commodity inventories, prices and employment situations. Based on such evaluations of sensitive items, technical market study reports will be issued, as required, for the use of the Department of Defense in determining current and future plans for disposal of such sensitive items. All such market study reports will be based on substantiating evidence collected and held in the files of reporting B.D.S.A. Industry Divisions. 2. For the purpose of securing reports on the cumulative effect of surplus property sales the Office of the Assistant Secretary of Defense for Supply and Logistics will make necessary arrangements with the Armed Forces to provide the Business and Defense Services Administration, Department of Commerce, with the following information on excess reportable and surplus nonreportable personal property. (a) For reportable property: Six copies of listing showing excess personal property available for redistribution, when and as prepared by the Department of Defense central screening agency. (b) For nonreportable property: Three copies of Invitation to Bid or auction catalogue on which one or more of the nonreportable items contained in the attached or subsequently revised list appear, in the condition noted, and in or exceeding the quantities of or acquisition cost shown for each class. 3. Items in quantities and condition as indicated on the attached list, (except foreign excess) shall be designated by red circling of the item or lot number on each of the three copies of the Invitation to Bid form or auction catalogue prepared for BDSA, Department of Commerce by any camp, post, station, base, depot, or any other single installation from which a single sales offering is being made, regardless of the location of the property being offered. 4. The above designated copies of listings of excess property and of marked Invitations to Bid or auction catalogue shall be forwarded directly to the following address: Surplus Property Report Coordinating Office, Business and Defense Services Administration, U.S. Department of Commerce, Room 4864, 15th Street N.W., Washington 25, D.C. 5. Volunteered requests from the military departments for technical advice on potential market impact of surplus disposals (as prescribed in Section IID6c, enclosure 1 of Department of Defense Instruction 4160.4, 13 July 1954), shall be channeled through the Assistant Secretary of Defense for Supply and Logistics. 6. Periodic review and revision of this memo shall be made. 7. Official liaison between these two agencies shall be the responsibility of the undersigned or their designated representatives. 8. No news releases shall be made by either agency concerning technical reports issued by the Department of Commerce to the Department of Defense unless or until they are cleared and approved by authorized public information officials for both agencies. 9. Sources of information, reference, and procedural guidance used in negotiating this arrangement are as follows: (a) Defense Supply Management Handbook, DSMA-H-2-1- dated Aug. 1953 (to determine kinds of property included in class). (b) Department of Defense Instruction Number 4160.9 dated 20 April 1954: Appendix I (nonreportable property); Appendix II (exceptions to reportable property). (c) Department of Defense Directive 4160.8 dated 16 March 1953 (for determination of applicable condition codes). (d) Merchandising Plan (draft). 10. Amendments to the documents listed in item 9 above shall have force and effect in implementing this understanding and in future review and revision thereof. The above understanding is approved this 19th day of July 1954. CHAS. F. HONEYWELL, Administrator, Business and Defense Services Administration, Department of Commerce. ALBERT B. DRAKE, Director, Office of Storage, Distribution, and Disposal, Office of the Asst. Secretary of Defense for Supply and Logistics. ATTACHMENT No. 2 NUMBER 4160.9. DATE: September 25, 1958. DEPARTMENT OF DEFENSE INSTRUCTION Subject: Policy Governing the Utilization Screening of Excess Personal Property (c) DoD Instruction 4140.12, "Utilization of DoD Materiel Assets" (f) DoD Instruction 4160.14, "Policy and Procedures Relating to (g) DoD Directive 4140.1, "Inventory Management Policies" (i) DoD Instruction 4215.12, "Inventory of DoD Owned Machine (j) DoD Directive 5154.14, "Establishment of the Armed Forces Supply Support Center" I. BACKGROUND AND REISSUANCE A. Reference (c) established the Interservice Materiel Utilization Agency which replaced both the Material Redistribution Division and the Interservice Supply Support Records Office, as the Department of Defense Agency to perform functions related to the reporting, screening and utilization of Department of Defense assets. Reference (j) incorporates the IMUA as an organizational element of the Armed Forces Supply Support Center (hereafter referred to as the "Center"). B. This Instruction reissues reference (a) and incorporates the remaining effective portions of reference (b) into one basic Instruction governing the reporting and screening of excess personal property under the control of the Department of Defense. References (a) and (b) are hereby superseded and cancelled. II. DEFINITIONS A list of definitions of terms used in this Instruction is attached as Inclosure 2 hereto. III. APPLICABILITY This Instruction is applicable to the military departments, worldwide, prescribes utilization screening requirements for excess personal property under the control of the Department of Defense (including contractor inventory and production equipment in contractors' plants), and prescribes criteria for determining excess personal property which is subject to centralized screening by the "Armed Forces Supply Support Center." IV. POLICIES A. Criteria for reporting excess personal property for centralized screening 1. All excess personal property which meets the reporting criteria contained in Schedule I, Inclosure 1 will be reported to the Center by activities designated by the military departments. Such property will be designated as "Reportable Property" for utilization screening purposes prescribed by this Instruction. Excess personal property which does not meet the reporting criteria contained in Schedule I, Inclosure 1 will be designated as "Nonreportable Property" and is not required to be reported to the Center for utilization screening purposes prescribed by this Instruction. 2. Reports listing excess personal property of the type required to be reported to the General Services Administration by Schedule I will be submitted to the Center on Standard Form 120 (SF 120), Report of Excess Personal Property or by other methods when approved by the Director of the Center. 3. Reports listing excess personal property which requires screening within the Department of Defense only will be submitted to the Center on SF 120 or by such other methods as may be stipulated by the Center. Reports covering property located in overseas areas (outside Continental United States, Alaska, Hawaii, Puerto Rico and the Virgin Islands) may be submitted to the Center on SF 120's, or by means and methods stipulated by the Center which are readily adaptable to mechanized or electronic processing by the Center. 4. Excess personal property which is not required to be reported to the Center (nonreportable property) may be reported to the Center for screening by the owning military department and will be screened if the Director of the Center determines that the property has some reasonable prospect of utilization. 5. The Director of the Center is authorized to issue, by appropriate means, detailed instructions for the preparation, routing, correction and withdrawal of excess property reports submitted to the Center. Such instructions will be consistent with excess property information requirements of GSA for property reportable to GSA in accordance with Schedule I. Center instructions which are applicable to reports of property requiring only DOD screening in accordance with Schedule I will specify minimum requirements for information essential to effective centralized screening as determined by the Center. Reports covering excess personal property located in overseas areas will, whenever feasible, as determined by the military department concerned, be submitted to the appropriate Inventory Control Point in the U.S. and concurrently to the Center. When reports are submitted in this manner, adequate coordination will be effected between the Center and the Inventory Control Point to prevent the issuance of conflicting redistribution instructions. B. Personal property which exceeds retention limit 1. Personal property which has been determined to exceed the authorized retention limit as established by the owning military department in accordance with references (g) and (h) will be promptly subjected to utilization screening or disposal as appropriate, as prescribed herein. C. Authorized screening activities 1. The military departments will keep the Center advised of the materiel control points and other activities authorized to screen and acquire excess personal property through the Center. 2. Excess personal property circularizations by the Center among Federal civilian agencies will be restricted to the Department of Health, Education and Welfare and other civilian agencies approved by GSA (except in oversea areas not serviced by GSA) and such circularizations to the GSA approved agencies will be limited to property which is not required to be reported to GSA. 3. The Center will keep the GSA advised of changes in the materiel control points and other activities authorized to acquire excess personal property within the DOD. D. Dissemination of excess property information 1. The Center will circularize Excess Listings to authorized screening activities. Other means may also be used to circularize excess property information when considered appropriate by the Director of the Center. When means other |