(a) Title to equipment acquired by a recipient with Federal funds
shall vest in the recipient, subject to conditions of this section.
(b) The recipient shall not use equipment acquired with Federal
funds to provide services to non-Federal outside organizations for a fee
that is less than private companies charge for equivalent services,
unless specifically authorized by Federal statute, for as long as the
Federal Government retains an interest in the equipment.
(c) The recipient shall use the equipment in the project or program
for which it was acquired as long as needed, whether or not the project
or program continues to be supported by Federal funds and shall not
encumber the
property without approval of the grant officer. When no longer needed
for the original project or program, the recipient shall use the
equipment in connection with its other federally, sponsored activities,
in the following order of priority:
(1) Activities sponsored by the DOL agency which funded the original
project, then
(2) Activities sponsored by other Federal awarding agencies.
(d) During the time that equipment is used on the project or program
for which it was acquired, the recipient shall make it available for use
on other projects or programs if such other use will not interfere with
the work on the project or program for which the equipment was
originally acquired. First preference for such other use shall be given
to other projects or programs sponsored by the DOL agency that financed
the equipment; second preference shall be given to projects or programs
sponsored by other Federal awarding agencies. If the equipment is owned
by the Federal Government, use on other activities not sponsored by the
Federal Government shall be permissible if authorized by the grant
officer. User charges shall be treated as program income.
(e) When acquiring replacement equipment, the recipient may use the
equipment to be replaced as trade-in or sell the equipment and use the
proceeds to offset the costs of the replacement equipment subject to the
written approval of the grant officer.
(f) The recipient's property management standards for equipment
acquired with Federal funds and federally-owned equipment shall include
all of the following:
(1) Equipment records shall be maintained accurately and shall
include the following information:
(i) A description of the equipment.
(ii) Manufacturer's serial number, model number, Federal stock
number, national stock number, or other identification number.
(iii) Source of the equipment, including the award number.
(iv) Whether title vests in the recipient or the Federal Government.
(v) Acquisition date (or date received, if the equipment was
furnished by the Federal Government) and cost.
(vi) Information from which one can calculate the percentage of
Federal participation in the cost of the equipment (not applicable to
equipment furnished by the Federal Government).
(vii) Location and condition of the equipment and the date the
information was reported.
(viii) Unit acquisition cost.
(ix) Ultimate disposition data, including date of disposal and sales
price or the method used to determine current fair market value where a
recipient compensates DOL for its share.
(2) Equipment owned by the Federal Government shall be identified to
indicate Federal ownership.
(3) A physical inventory of equipment shall be taken and the results
reconciled with the equipment records at least once every two years. Any
differences between quantities determined by the physical inspection and
those shown in the accounting records shall be investigated to determine
the causes of the difference. The recipient shall, in connection with
the inventory, verify the existence, current utilization, and continued
need for the equipment.
(4) A control system shall be in effect to insure adequate
safeguards to prevent loss, damage, or theft of the equipment. Any loss,
damage, or theft of equipment shall be investigated and fully
documented; if the equipment was owned by the Federal Government, the
recipient shall promptly notify the grant officer.
(5) Adequate maintenance procedures shall be implemented to keep the
equipment in good condition.
(6) Where the recipient is authorized or required to sell the
equipment, proper sales procedures shall be established which provide
for competition to the extent practicable and result in the highest
possible return.
(g) When the recipient no longer needs the equipment, the equipment
may be used for other activities in accordance with the following
standards. For equipment with a current per unit fair market value of
$5,000 or more, the recipient may retain the equipment for other uses
provided that compensation
is made to the original DOL agency. The amount of compensation shall be
computed by applying the percentage of Federal participation in the cost
of the original project or program to the current fair market value of
the equipment. If the recipient has no need for the equipment, the
recipient shall request disposition instructions from DOL. The DOL
agency shall determine whether the equipment can be used to meet the
agency's requirements. If no requirement exists within the DOL agency,
the availability of the equipment shall be reported to the General
Services Administration by DOL to determine whether a requirement for
the equipment exists in other Federal agencies. DOL shall issue
instructions to the recipient no later than 120 calendar days after the
recipient's request and the following procedures shall govern.
(1) If so instructed or if disposition instructions are not issued
within 120 calendar days after the recipient's request, the recipient
shall sell the equipment and reimburse DOL an amount computed by
applying to the sales proceeds the percentage of Federal participation
in the cost of the original project or program. However, the recipient
shall be permitted to deduct and retain from the Federal share $500 or
ten percent of the proceeds, whichever is less, for the recipient's
selling and handling expenses.
(2) If the recipient is instructed to ship the equipment elsewhere,
the recipient shall be reimbursed by the Federal Government by an amount
which is computed by applying the percentage of the recipient's
participation in the cost of the original project or program to the
current fair market value of the equipment, plus any reasonable shipping
or interim storage costs incurred.
(3) If the recipient is instructed to otherwise dispose of the
equipment, the recipient shall be reimbursed by the awarding agency for
such costs incurred in its disposition.
(4) The DOL agency reserves the right to transfer the title to the
Federal Government or to a third party named by the Federal Government
when such third party is otherwise eligible under existing statutes.
Such transfer shall be subject to the following standards:
(i) The equipment shall be appropriately identified in the award or
otherwise made known to the recipient in writing.
(ii) The DOL agency shall issue disposition instructions within 120
calendar days after receipt of a final inventory. The final inventory
shall list all equipment acquired with grant funds and federally-owned
equipment. If DOL fails to issue disposition instructions within the 120
calendar day period, the recipient shall apply the standards of this
section, as appropriate.
(iii) When DOL exercises its right to take title, the equipment
shall be subject to the provisions for federally-owned equipment.
