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1 See par. IV J, basic instruction, for exemption from reporting to GSA, contractor inventory, production equipment.

[4160.9 (Incl. 2) Sept. 25, '58]
DEFINITIONS

a. Advice of Availability.—Report of excess personal property showing Department of Defense excess property which is available for utilization screening by the General Services Administration.

b. Armed Forces Supply Support Center (AFSSC or Center as used in this Instruction).—The designated Department of Defense agency charged with the responsibility for effecting the circularization of excess personal property information and redistribution of excesses required by the services (reference j). c. Automatic Release Date.-The date established by the Center after which excess property reported to the center becomes available for donations, public sale or other authorized disposal action in the absence of a Transfer Order, Purchase Order or Requisition from the Center or GSA.

d. Centralized Screening.-Screening of excess personal property information with the military services and the GSA by the Center.

e. Contractor Inventory.—(1) Any property acquired by and in possession of a contractor or subcontractor (including Government-furnished property) under

a contract pursuant to the terms of which title is vested in the Government, and in excess of the amounts needed to complete full performance under the entire contract, and (2) any property which the Government is obligated or has the option to take over under any type of contract as a result either of any changes in the specifications or plans thereunder or of the termination of such contract (or subcontract thereunder), prior to completion of the work, for the convenience or at the option of the Government.

f. DOD Excess Personal Property.-Personal property (as distinguished from real property) determined to be unnecessary to the needs and discharge of the responsibilities of the DOD.

g. Excess Listing.-Consolidated listing of excess personal property as prepared by the Center.

h. Excess Personal Property.-Personal property (as distinguished from real property) including contractor inventory which is under the control of a DOD activity and is determined to be unnecessary to the needs and discharge of the responsibilities of such DOD activity. Excess personal property may originate at any organizational level (base, command, bureau, service, plant, facility, department, etc.) in accordance with criteria established by the cognizant military department. Excess personal property as described may attain the status of DOD Excess Personal Property only after it has been determined to be unnecessary to the needs and discharge of the responsibilities of the DOD.

i. Foreign Excess Personal Property.-Personal property located outside the continental United States, Hawaii, Alaska, Puerto Rico, and the Virgin Islands which has been determined to be unnecessary to the needs and discharge of the responsibilities of the DOD.

j. Holding Activity.-The activity at which the reported property is physically located.

k. Issue Date.-The initial control date of the Excess Listing, assigned by the Center, from which the Automatic Release Date of the property is computed. 1. Line Item.-A single line entry shown on a reporting form which indicates the quantity of property located at any one activity, having the same description, condition code and unit cost.

m. Local Area Screening.-Screening accomplished through circularization of excess personal property information by the owning military department within a radius of 100 miles of the holding activity. In overseas areas, Local Area Screening is accomplished within each respective theater or overseas unified command and includes screening with U.S. Federal Agencies requiring excess property information.

n. Machine Tools.-Those items of production equipment which are power driven, nonportable machines used for cutting, abrading, grinding, shaping, or forming metal.

o. Overseas Area.-Locations outside continental United States-Alaska, Hawaii, Puerto Rico, and Virgin Islands.

p. Nonreportable Property.-Excess personal property which is not required to be reported to the Center for screening prior to disposal.

q. Personal Property.-Property of any kind or any interest therein, except real property, records of the Federal Government, and naval vessels of the following categories: aircraft carriers, battleships, cruisers, destroyers, and submarines.

r. Production Equipment.-Those items of plant equipment located within a manufacturing, processing, assembly or service establishment and used for cutting, abrading, grinding, shaping, forming, joining, measuring, testing, heating or treating production materials or work in process. Inclosure (2) to reference (i) lists items considered to be Production Equipment.

s. Purchase Order or Requisition (for excess personal property).—Document issued by any Federal agency for the transfer of excess personal property. t. Reportable Property.-Excess personal property which must be reported to the Center for screening prior to disposal.

u. Reporting Activity.-The military installation or activity which initiates a report of excess personal property to the Center.

v. Salvage.-Personal property which has some value in excess of its basic material content, but which is in such condition it has no reasonable prospect of use for any purpose as a unit and its repair or rehabilitation for use as a unit is clearly impracticable. (Generally, when the estimated cost of repairs exceeds 65 percent of the acquisition cost, personal property should be classified as salvage.)

w. Scrap.-Personal property, other than waste, which has no reasonable prospect of sale, or which appears to have no market value except for its basic material content.

x. Service Educational Activity.-Educational activity of special interest to the Department of Defense as designated in DOD Directive 5100.13, Donation of Surplus Property to Educational Activities of Special Interest to Armed Services.

y. Surplus Personal Property.-Personal property not required for the needs and the discharge of the responsibilities of all Federal agencies, as determined by the Administrator, GSA.

z. Transfer Order (for excess personal property).-Document issued by the Agency directing transfer of excess personal property.

aa. Utilization Screening. The screening of excess personal property by DOD and other authorized activities to effect maximum economical utilization of such property under the control of the DOD.

bb. Waste Material.-Waste material consists of waste and refuse material which may have potential sales value, including, but not limited to, garbage, trap grease, corrugated kraft cardboard, and other types of waste paper.

ATTACHMENT No. 3

DEPARTMENT OF DEFENSE DIRECTIVE

16 MARCH 1953. NUMBER 4160.8. 'MBSSU.

Subject: Fair Value Formula and Condition Codes Applicable to Excess and Exchange Sale Type Personal Property Within the Department of Defense.

I. PURPOSE

This directive furnishes the military departments with necessary data regarding changes in codes used in describing the condition of excess and exchange or sale personal property and the fair value applicable to such property for reporting purposes. This is the result of an agreement between the Department of Defense and the General Services Administration.

II. SCOPE AND APPLICABILITY

A. In order to permit advance operational experience through use of the attached data in the reporting and screening of excess and exchange or sale property, the basic information contained in inclosure No. 1 is furnished to the military departments for implementation in advance of publication by the General Services Administration.

B. The formula for determining the fair value of excess personal property applies to the transfer of such property outside the Department of Defense only. The same formula when used with respect to exchange or sale property applies to the transfer of such property both within and between all government agencies, including the Department of Defense.

C. The definitions for the codes used in repoorting excess and exchange or sale property on Standard Form 120 (Report of Excess Personal Property) are intended to achieve greater uniformity and dependability in describing the condition of such property for utilization purposes. The Condition Codes will be used in conjunction with the fair value formula described in paragraph B above in order that the application of these codes will be more precise and previous variations in their use can be reduced or minimized.

III. IMPLEMENTATION

Each military department will proceed with the revision of regulations, procedures, and instructions as necessary to implement the provisions hereof without prior approval and submit such revised regulations, procedures, and instructions (either permanent or interim) in duplicate to the Munitions Board within 60 days after the date of this directive.

J. C. HOUSTON, Jr.,

Acting Chairman, Munitions Board.

Inclosure (1).

[16 Mar. 53-4160.8 (Incl. 1)]

Formula for determining the fair value of excess and/or exchange sale personal

Fair value code

property

Explanation

Percent

age of original or estimated acquisition cost

A

B

Unused personal property, ready for use in a condition identical with new items de-
livered by a supplier. In general, this would include only property that would
qualify for a condition code of N-1, New-Excellent.
Personal property which has been used and requires no reconditioning or repair; and
personal property which, although unused and requiring no reconditioning or re-
pair, does not qualify for code A. In general, this would include property that
would qualify for the following condition codes:
N-2 New-Good

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Used-Reconditioned-Excellent

D

E-1

0-1 Used-Usable without repairs-Excellent

Personal property requiring minor repairs, to put into usable condition, whether
used or unused; and property somewhat below the condition outlined in code B
above. In general, this would include property that would qualify for the fol-
lowing condition codes:

N-3 New-Fair

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Personal property requiring major repairs, conversion, or rehabilitation, and all other
items which through deterioration, obsolescence or other deterioration, obsolescence
or other factors do not fit in Codes A, B, or C. In general, this would include
property that qualifies for the following condition codes:

N-4 New-Poor

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X

Items of no further value for use as originally intended but of possible value
other than as scrap.

20

0

(No

charge.)

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