320 FW 7, Transfer and Disposal

FWM#:    097 (new)
Date:        July 1, 1993
Series:     Vehicle and Equipment Management
Part 320:  Motor Vehicle Management
Originating Office: Division of Contracting and General Services

7.1 General. It is the policy of the Department that motor vehicles shall be disposed of under the exchange sales authority cited in 41 CFR 101-46 whenever the vehicle disposed of will be replaced by a like vehicle. This policy influences not only the vehicle disposal procedures, but also limits transfer of vehicles within the Department and to agencies outside the Department. The Service routinely disposes of vehicles which are excess to its needs as well as vehicles which are not excess but which meet or exceed the replacement criteria and standards prescribed in this chapter.

A. Excess Vehicles. Vehicles which are excess to the needs of the Service shall be transferred to other bureaus. Only when there are no requirements within the Department for excess Service vehicles will vehicles be reported as excess to GSA. The GSA will attempt to transfer excess vehicles to other agencies, and failing that, may dispose of the vehicles through the GSA donation or sales programs. From the Department's perspective, excess vehicles will either be transferred within the Department, or reported to GSA for GSA disposal. Excess vehicles which also meet or exceed replacement standards shall be regarded as excess vehicles, and shall be disposed of in accordance with 7.2 and 7.3.

B. Vehicles Meeting or Exceeding Replacement Criteria. The disposal process for vehicles which are not excess but which meet or exceed replacement criteria is different from the disposal process for excess vehicles. Non-excess vehicles which meet replacement criteria are not transferred among bureaus; nor are they reported to GSA as excess vehicles. Instead, vehicles meeting replacement standards shall be reported directly to GSA for sale under exchange sales authority. These procedures are contained in 7.4.

7.2 Vehicle Transfers - Excess Vehicles.

A. General. The policy requiring that vehicles shall be disposed of under exchange sales authority limits vehicle transfers within and outside the Department to those vehicles which are truly excess to the requirements of the Service. If a vehicle currently in the inventory is to be replaced with a like vehicle, the vehicle must be sold under exchange sales provisions (see 7.4), and is ineligible for transfer to another bureau or agency. Therefore, a vehicle may only be transferred to another bureau or agency if it is not going to be replaced.

B. Intra-Departmental Transfers.

(1) Service activities holding Service owned motor vehicles declared as excess shall ensure that other Service activities are afforded an opportunity to utilize the vehicles either prior to or concurrently with circularization to other bureaus of the Department. Generally, no more than 30 days shall be allowed for utilization screening within the Service. An additional 30 days shall be allowed for circularizing to other bureaus within the Department. Excess motor vehicles may simultaneously be made available within the Service and among the other bureaus. When this is done, no more than 30 days shall be allowed for utilization screening. In the event that a Service activity and another bureau claim the same motor vehicle, the Service activity shall receive priority. In the event of multiple claims from activities inside or outside of the Service, priority shall be given to the earliest claims.

(2) Standard Form 120, Report of Excess Personal Property (and Standard Form 120A, Continuation Sheet) shall be used for circularizing motor vehicles that are excess to the Service's needs. The following entries shall be included for each motor vehicle reported on the SF 120:

(a) Manufacturer (e.g., Ford).

(b) Model (e.g., Fairmont).

(c) Number of cylinders and engine size (e.g., 6 cyl, 3,359 cu. cm. (205 cu. in.)).

(d) Odometer kilometers (mileage) (e.g., 100,584 km. (62,500 mi.)).

(3) Motor vehicles claimed by and transferred to another Accountable Officer within the Service or to another bureau shall be recorded on Transfer of Property, Form DI-104. This form provides a documentation of entry to property records and accounts. Sufficient copies of the transfer document should be prepared, signed, and distributed to satisfy the property and accounting requirements of the transferror and transferee offices.

(4) The SF-149 should not be transferred with the vehicle. The Accountable Officer shall destroy the credit card, and shall advise the credit card contractor that the card has been destroyed and is no longer required (see 4.8B for notification procedures). This procedure shall be followed even for intra-bureau motor vehicle transfers. The gaining activity is responsible for ordering a new credit card using procedures outlined in 4.8B.

(5) Removal of the U.S. Government tags is not required for vehicles transferred within the Service. When vehicles are transferred outside of the Service, the tags shall be removed prior to the transfer. U.S. Government tags removed from a vehicle shall not be installed on another vehicle, but shall be destroyed instead. The gaining activity is responsible for installing new tags.

(6) Markings shall not be removed from vehicles transferred within the Service. When vehicles are transferred to another bureau, only the Service identification shall be removed. The gaining activity is responsible for applying appropriate bureau identification.

(7) The Accountable Officer shall ensure that the owner's manual and any other pertinent documents are provided to the receiving activity.

C. Transfers to Other Federal Agencies.

(1) If after circularizing an excess vehicle within the Department, no bureau has presented a claim for the vehicle, the vehicle is excess to the Department and shall be promptly reported to the appropriate GSA regional office. Excess vehicles are reported to GSA by submitting an original and three copies of the SF 120 (and SF 120A, if applicable) to the applicable GSA regional office.

(2) All transfers of excess motor vehicles to other Federal agencies shall be accomplished by use of SF 122, Transfer Order Excess Personal Property. Other transfer order forms may be used if approved by GSA under FPMR 101-43-315-5. The receiving (transferee) agency is responsible for forwarding an original and three copies of the transfer order to the appropriate GSA regional office for approval.

(a) Transfer orders SF 122 shall always be executed by an authorized Federal official, and will not be approved by GSA unless so executed.

(b) Transfer orders for contractors and grantees shall be executed by the Federal contracting officer or other responsible Federal officials.

(c) Transfer orders shall state that the property will be entered on the property accountability records of the acquiring agency, and shall also state that the property will be used only for administrative or operational use, but not for resale.

(3) Upon approval of the transfer order, GSA will so annotate the transfer order. One copy of the approved transfer order will be returned to the ordering (receiving) agency. Two copies of the approved transfer order will be transmitted by GSA to the holding agency for transfer action.

(4) Normally, the transfer order should contain complete shipping instructions. However, if the instructions are not included on the transfer order, the receiving (transferee) agency is required to transmit the instructions to the holding agency within 15 days after receipt of the transfer order by the holding activity. If shipping instructions are not received, holding activities should notify the GSA regional office which approved the transfer.

(a) If the transfer order indicates that the receiving agency will pick up the property, the action must be accomplished within 20 days from the time the holding agency advises the receiving agency that the shipment is ready.

(b) Holding activities shall carry out shipping instructions within 20 days from receipt, or make the property available for pickup promptly.

(5) The SF-149 shall not be transferred with the vehicle. The Accountable Officer shall destroy the credit card and shall advise the servicing CGS office of its destruction which shall notify the credit card contractor in accordance with 320 FW 4.8B.

(6) When vehicles are transferred to other agencies, the U.S. Government tags shall be removed prior to the transfer. U.S. Government tags removed from a transferred vehicle shall be destroyed.

(7) When vehicles are transferred to other agencies, all Service and Departmental markings shall be removed.

(8) The Accountable Officer shall ensure that the owner's manual and any other pertinent documents are provided to the receiving agency.

7.3 Donation and Sale of Excess Vehicles.

A. General. Vehicles that are reported to GSA as excess to the Department may be transferred by GSA to other agencies. If GSA is unable to effect a transfer to another agency, GSA may donate or sell the vehicle. Excess vehicles shall not be disposed of under exchange sales authority since a replacement vehicle will not be required.

B. Documentation.

(1) Transfers of surplus property to eligible donees will be effected by the use of SF 123 (Transfer Order for Surplus Personal Property), and SF 123A (Transfer Order - Surplus Personal Property (continuation sheet)). When a donation transaction has been approved, GSA will forward to the holding activity a copy of the approved SF 123, and instructions for pickup or shipment. Upon receipt, the Service activity shall notify the receiving activity (donee) of the availability of the property.

(2) Upon completion of the sale of a motor vehicle, and receipt for full payment from the buyer (as evidenced by the buyer showing a completed copy of "Copy Number 7," GSA Form 27), GSA will notify the holding activity by copy of GSA Form 27, Notice of Award (and, if applicable, GSA Form 27A, Notice of Award - continuation sheet). Upon receipt of this form, the property may be released to the purchaser.

C. When disposing of a Government owned motor vehicle one of the two methods listed below shall be used for the transfer of ownership:

(1) Motor vehicles based and titled in the District of Columbia shall be transferred as provided in section 4(c) of the Vehicle Title and Registration Regulations for the District of Columbia.

(2) Motor vehicles based outside the District of Columbia shall be transferred by executing an SF 97, U.S. Government Certificate to Obtain Title to a Vehicle. The use of this form is mandatory, except in foreign countries and when a vehicle is not intended to be titled for highway use.

(3) All certificates are preprinted and shall be stocked as accountable forms. Unnumbered certificates or certificates showing erasures and strikeovers will be considered invalid by State motor vehicle agencies and will not be honored.

(4) Upon completion of the SF 97, it shall be furnished the purchaser or donee; one copy of the SF 97 shall be furnished the Service; and one copy of the SF 97 shall be furnished the contracting officer of the agency effecting sale or transfer of the motor vehicle.

D. Markings. All Service, Department, and U.S. Government markings and decals shall be removed from motor vehicles prior to their release outside the Government.

E. Standard Form 149, U.S. Government National Credit Card. The Accountable Officer shall remove and destroy the SF-149 prior to releasing the motor vehicle to a donee or purchaser.

F. U.S. Government Tags. When vehicles are sold or donated, the U.S. Government tags shall be removed prior to delivery to the donee or purchaser.

7.4 Vehicle Disposals Under Exchange Sale Authority.

A. General. All motor vehicles which are not excess to the needs of the Service, but which are eligible for replacement under the criteria contained in 7.4B, shall be disposed of under exchange sales procedures. Motor vehicles to be disposed of under exchange sales shall not be circularized within the Department, and shall not be reported to GSA for utilization or donation screening. Under exchange sales procedures, vehicles are reported directly to GSA for sales action. The proceeds of the sale are returned to the Service and are applied towards the purchase of a replacement vehicle. Disposal of motor vehicles may be made any time after notice has been received that an award for procurement of the replacement vehicle has been made. In any event, all replaced motor vehicles must be placed in temporary storage for disposal and must be reported for exchange/sale to the GSA regional office within 60 calendar days after receipt of the replacement, unless prior approval for retention beyond that time has been received from the Director, PAM, or designee. Requests for such retention must be submitted by letter and shall identify the specific motor vehicles requested for retention, the name of the activity to retain the vehicle, the reason for retention, and the period of retention.

B. Motor Vehicle Replacement Criteria. This paragraph prescribes minimum replacement standards to be used by the Service when desiring to replace motor vehicles. Federal regulations require agencies to retain vehicles which are in usable working condition even though the standard permits replacement, provided the vehicle can be used or operated without excessive maintenance cost or substantial reduction in resale value.

(1) Vehicle replacement standards in terms of vehicle age and the accumulated odometer kilometers (mileage) are shown in 320 FW 2, Appendix 2. When both standards are shown for a vehicle category the vehicle shall be replaced either on the kilometers (mileage) or the age criteria.

(2) Additional Replacement Criteria.

(a) Not more than 25 percent of the vehicles in any of the classes listed below may be replaced in any one fiscal year. When the total number of vehicles in any one class is less than eight, no more than two vehicles in that class may be replaced in any one fiscal year.

(i) Sedans

(ii) Station wagons, ambulances and buses

(iii) All trucks and truck tractors

(b) A motor vehicle which has been wrecked or damaged (including wear caused by abnormal operating conditions) beyond economical repair, may be replaced without regard to the standards in this chapter after certification to that effect by the Property Officer or Regional Property Administrator.

(c) A motor vehicle should be replaced in lieu of being repaired when the cost of repairs is expected to exceed the economic value of the vehicle. Information found in 320 FW 2, Appendix 3, shall be used in determining the one-time repair limit on the basis of age.

C. Exchange Sales Restrictions. The following restrictions and limitations must be met in order to dispose of a motor vehicle under exchange sales authority.

(1) The items sold cannot be excess or surplus.

(2) The acquisition of the replacement vehicle is not otherwise precluded by law including Congressional appropriations (i.e., all legislative restrictions pertaining to vehicle acquisitions must be satisfied).

(3) The item to be sold and the item to be acquired cannot be sold and purchased under exchange sales authority if they are found in the Federal Supply Classification Groups listed in 41 CFR 101-46.202(a).

(4) One item is to be acquired to replace one similar item. Exceptions to this one-for-one rule must be authorized by the Property Management Officer. The items to be sold or exchanged shall be considered similar if both fall within any one of the categories listed in 41 CFR 101-46.202(b)(iii). The categories on the Exchange/Sale Similarity List of motor vehicles as follows:

(a) Sedans, station wagons, coupes, limousines.

(b) Trucks, general purpose, cargo and construction, 5,670 kg. (12,500 lbs.) GVWR through 12,701 kg. (28,000 lbs.) GVWR (including truck tractors, dump, multiple drive, etc.)

(c) Trucks, general purpose and utility, up to 5,670 kg. (12,500 lbs.) GVWR (including suburbans, carryalls, and sedans deliveries).

(d) Trucks, tank (special purpose trailer of which the tank is an integral part of the construction).

D. Reporting Property For Sale. The Regional Property Administrator shall report motor vehicles to be sold by GSA to the appropriate GSA regional office for the Region in which the motor vehicles are physically located. The Regional Property Administrator shall use SF 126, Report of Personal Property For Sale and, if applicable, SF 126A, Report of Personal Property For Sale - Continuation Sheet.

E. Appearance Reconditioning. When a motor vehicle is disposed of under exchange sales procedures, the proceeds from the sale are returned to the Service and may be used towards the purchase of a similar vehicle. In order to maximize the amount of sales proceeds, it is the policy of the Service that all vehicles offered for sale shall be appearance reconditioned prior to inspection by prospective buyers.

(1) The following minimum level of appearance reconditioning shall be performed on all motor vehicles offered for sale under exchange sale authority.

(a) Motor vehicles shall be washed, including wheels and wheel covers and the inside and outside of all windows.

(b) The exterior of motor vehicles shall be waxed and polished.

(c) Trash and debris shall be removed from the passenger compartment (including under and behind seats), and the trunk or truck bed. Ash trays shall be emptied and cleaned.

(d) The interior of motor vehicles shall be vacuumed (floor, seats and trunk) and dusted (dash board, interior door panels, steering column, etc.).

(e) Tires, including the spare shall be inflated to the proper kilograms per square centimeter (KSC) (pound per square inch (PSI)).

(f) Replenish (not replace) oil, coolant, windshield washer fluid, etc.

(g) Where facilities are available, steam clean the engine and engine compartment.

(2) Some vehicles offered for sale are in noticeably better condition than others. Generally speaking, a higher sales return can be realized by increasing the level of appearance reconditioning on the "best" vehicles. Although the extent of additional reconditioning depends on the condition of the vehicle, some options are listed below.

(a) Change the oil, oil filter and air cleaner.

(b) Clean or replace plugs, tune engine and adjust carburetor if engine does not run smoothly.

(c) Fill small body holes and touch up minor scratches.

(d) Recharge air conditioning system.

(e) Perform other required minor repairs.

(3) Major repairs such as engine or drive train overhauls, or the replacement of major parts should not be undertaken unless it is clear that the cost of the parts and repairs will be more than offset by the expected increase in the sale price.

F. Notification of Sale. Upon completion of the sale of a motor vehicle, GSA will notify the Service by forwarding a copy of GSA Form 27. Upon receipt of the GSA Form 27 from GSA, the motor vehicle shall be released to the purchaser.

G. SF 97. A completed and signed SF 97 shall be provided to the purchaser of each motor vehicle. A duplicate copy (SF 97A) shall be retained by the Property Administrator.

H. Markings. All Service, Department, and U.S. Government markings and decals shall be removed from motor vehicles prior to release outside the Government.

I. SF-149. The holding activity shall remove and destroy the SF-149, prior to releasing a motor vehicle to a purchaser.

J. U.S. Government Tags. When vehicles are sold or donated, the U.S. Government tags shall be removed prior to delivery to the purchaser.

7.5 Leased Vehicles. Leased vehicles shall not be transferred among bureaus or other Federal agencies. Leased vehicles which are no longer required shall be returned to the contractor in accordance with the provisions of the lease. Leased vehicles shall not be sold or offered to GSA for sale unless disposal by the U.S. Government is provided for in the lease agreement (i.e., open-ended lease arrangements).

7.6 GSA Vehicles. Vehicles which are obtained from GSA Fleet Management Centers, and which are excess to the needs of the Service, shall be returned to the Fleet Management Center from which they were obtained. Since these vehicles are owned by GSA, transfers within and among bureaus must be approved by the Fleet Management Center manager. GSA vehicles which are eligible for replacement (sale) will be scheduled by GSA for disposal. Therefore, no Service activity shall attempt to dispose of GSA vehicles.

7.7 Report of Survey.

A. The requirements for Boards of Survey and Reports of Survey are not applicable for the following disposal actions provided that vehicles are not lost, stolen, damaged, destroyed or unserviceable.

(1) Transfers of vehicles to another office within the Service or within the Department.

(2) Transfers of excess vehicles to other Federal agencies.

(3) Donations or sales of surplus vehicles.

(4) Sale of vehicles under exchange sales authority.

B. Boards of Survey procedures are applicable for vehicles which are lost, stolen, damaged, destroyed or unserviceable.

7.8 Disposal of Used Parts and Supplies.

A. Worn-out Parts. Worn-out parts, such as mufflers, tail pipes, shock absorbers, etc., which accumulate in Service maintenance shops, may be discarded as scrap, provided the value of such property is so little or the cost of its care and handling would be so great that its retention for advertising for sale would clearly not be economical. When such property is to be sold, it will be reported to the GSA regional office as "scrap" on SF 126.

B. Core Parts. Batteries, carburetors, alternators, water pumps, brake shoes, etc., have substantial tradein value as core parts. In lieu of selling or disposing of core parts as scrap, the Service shall trade in such property toward the purchase of replacement parts. Trade in of core parts shall be documented in the vehicle jacket files.

C. Tires. Whenever feasible, worn or used tires should be recapped, traded in for credit towards the purchase of the replacement tire, or sold. Old tires cannot be turned in to defray the cost of mounting or balancing. A tire may be abandoned or destroyed only if it has no commercial value or the continued cost of care and handling would exceed the proceeds of its sale.

D. Waste Oil. All waste oil accumulated at Service maintenance facilities should be disposed of through recycling companies under GSA contract. If there are no contract recycling companies in proximity to a Service activity, the Regional Property Officer shall contact the appropriate GSA regional office to request that GSA establish contracts for the disposal of waste motor oil. Waste oil shall always be disposed of in an environmentally sound manner and not used for dust control, etc.


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