[Code of Federal Regulations]
[Title 32, Volume 2, Parts 191 to 399]
[Revised as of July 1, 1998]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR204.4]

[Page 320-321]
 
                       TITLE 32--NATIONAL DEFENSE
 
                               (CONTINUED)
 
PART 204--USER CHARGES--Table of Contents
 
Sec. 204.4  Policy.

    (a) General. It is DoD policy not to compete with available 
commercial facilities (see 32 CFR part 169a) in providing special 
services or in the sale or lease of property to private parties and 
agencies outside the Federal Government. However, when a service or sale 
is made that conveys special benefits to recipients, above and beyond 
those accruing to the public at large, a reasonable charge shall be made 
to each identifiable recipient, except as otherwise authorized by the 
Secretary of Defense. A special benefit will be considered to accrue, 
and a charge shall be imposed when the service rendered:
    (1) Enables the recipient to obtain more immediate or substantial 
gain or values (which may or may not be measureable in monetary terms) 
than those which accrue to the general public; or
    (2) Is performed at the request of the recipient and is above and 
beyond the services regularly received by or available without charge to 
the general public.
    (b) Costing. (1) A charge shall be imposed to recover the full cost 
to the Federal Government of rendering a service or the fair market 
value of such service, whichever is higher. Fair market value shall be 
determined in accordance with commercial rates in the local geographical 
area. In the absence of a known market value, charges shall be made 
based on recovery of full costs to the Federal Government.
    (2) When federally owned resources or property are leased or sold, a 
fair market value shall be obtained. Fair market value shall be 
determined by the application of sound business management principles 
and, so far as practicable and feasible, in accordance with comparable 
commercial practices. Charges based on fair market value need not be 
limited to the recovery of costs; they may produce net revenues to the 
Government.
    (c) Exclusions and exceptions. (1) The provisions of this part do 
not apply when other statutes or directives require different practices 
or procedures such as for:
    (i) Morale, welfare, and recreation services to military personnel 
and civilian employees of the Department of Defense and other services 
provided in accordance with Sec. 204.9.
    (ii) Sale or disposal of surplus property under approved programs 
(See DoD Instruction 7310.1 \1\).
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    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
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    (iii) Services furnished the general public relating to, or in 
furtherance of, the U.S. Armed Forces recruiting program.

[[Page 321]]

    (iv) Services furnished to representatives of the public information 
media in the interest of public understanding of the U.S. Armed Forces.
    (v) U.S. Armed Forces participation in public events. Charges for 
such participation are governed by the provisions of 32 CFR part 238.
    (vi) Records made available to the public, under the Freedom of 
Information Act, pursuant to 32 CFR part 286. Charges for such record 
searches and copies of records are governed by Sec. 286.61.
    (vii) Services furnished to non-Federal audio-visual media Charges 
for such services are governed by the provisions of DoD Instruction 
5410.15.\2\
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    \2\<SUP>,3,4</SUP> See footnote 1 to Sec. 204.4(c)(1)(ii).
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    (viii) Government-developed computer programs released to non-
Federal customers. Charges for software packages are governed by DoD 
Instruction 7930.2.\3\
    (ix) Pricing of performance by industrial fund activities which 
shall be in accordance with DoD Directive 7410.4.\4\
    (2) Charges may be waived or reduced when:
    (i) The recipient of the benefits is engaged in nonprofit activity 
designed for public safety, health, or welfare.
    (ii) Payment of the full fee by a state, local government, or 
nonprofit group would not be in the interest of the program.
    (iii) Furnishing of the service without charge is an appropriate 
courtesy to a foreign country or international organization, or 
comparable fees are set on a reciprocal basis with a foreign country.
    (iv) The incremental cost of collecting the fees would be an unduly 
large part of the receipts from the activity.
[51 FR 16024, Apr. 23, 1986. Redesignated and amended at 56 FR 64482, 
Dec. 10, 1991; 63 FR 33248, June 18, 1998; 63 FR 36992, July 8, 1998]