40 U.S.C.
United States Code, 2001 Edition
Title 40 - PUBLIC BUILDINGS, PROPERTY, AND WORKS
CHAPTER 10 - MANAGEMENT AND DISPOSAL OF GOVERNMENT PROPERTY
SUBCHAPTER II - PROPERTY MANAGEMENT
Sec. 481 - Procurement, warehousing, and related activities
From the U.S. Government Publishing Office, www.gpo.gov

§481. Procurement, warehousing, and related activities

(a) Policies and methods of procurement and supply; operation of warehouses

The Administrator shall, in respect of executive agencies, and to the extent that he determines that so doing is advantageous to the Government in terms of economy, efficiency, or service, and with due regard to the program activities of the agencies concerned—

(1) subject to regulations 1 prescribed by the Administrator for Federal Procurement Policy pursuant to the Office of Federal Procurement Policy Act [41 U.S.C. 401 et seq.], prescribe policies and methods of procurement and supply of personal property and nonpersonal services, including related functions such as contracting, inspection, storage, issue, property identification and classification, transportation and traffic management, management of public utility services, and repairing and converting; and

(2) operate, and, after consultation with the executive agencies affected, consolidate, take over, or arrange for the operation by any executive agency of warehouses, supply centers, repair shops, fuel yards, and other similar facilities; and

(3) procure and supply personal property and nonpersonal services for the use of executive agencies in the proper discharge of their responsibilities, and perform functions related to procurement and supply such as those mentioned above in subparagraph (1) of this subsection: Provided, That contracts for public utility services may be made for periods not exceeding ten years; and

(4) with respect to transportation and other public utility services for the use of executive agencies, represent such agencies in negotiations with carriers and other public utilities and in proceedings involving carriers or other public utilities before Federal and State regulatory bodies;


Provided, That the Secretary of Defense may from time to time, and unless the President shall otherwise direct, exempt the Department of Defense from action taken or which may be taken by the Administrator under clauses (1) to (4) of this subsection whenever he determines such exemption to be in the best interests of national security.

(b) Extension of services

(1) The Administrator shall as far as practicable provide any of the services specified in subsection (a) of this section to any other Federal agency, mixed ownership corporation (as defined in section 9101 of title 31), or the District of Columbia, upon its request.

(2)(A) Upon the request of a qualified nonprofit agency for the blind or other severely handicapped that is to provide a commodity or service to the Federal Government under the Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.), the Administrator may provide any of the services specified in subsection (a) of this section to such agency to the extent practicable.

(B) A nonprofit agency receiving services under the authority of subparagraph (A) shall use the services directly in making or providing an approved commodity or approved service to the Federal Government.

(C) In this paragraph—

(i) The term “qualified nonprofit agency for the blind or other severely handicapped” means—

(I) a qualified nonprofit agency for the blind, as defined in section 5(3) of the Javits-Wagner-O'Day Act (41 U.S.C. 48b(3)); and

(II) a qualified nonprofit agency for other severely handicapped, as defined in section 5(4) of such Act (41 U.S.C. 48b(4)).


(ii) The term “approved commodity” and “approved service” means a commodity and a service, respectively, that has been determined by the Committee for Purchase from the Blind and Other Severely Handicapped 2 under section 2 of the Javits-Wagner-O'Day Act (41 U.S.C. 47) to be suitable for procurement by the Federal Government.

(c) Exchange or sale of similar items

In acquiring personal property, any executive agency, under regulations to be prescribed by the Administrator, subject to regulations 3 prescribed by the Administrator for Federal Procurement Policy pursuant to the Office of Federal Procurement Policy Act [41 U.S.C. 401 et seq.], may exchange or sell similar items and may apply the exchange allowance or proceeds of sale in such cases in whole or in part payment for the property acquired: Provided, That any transaction carried out under the authority of this subsection shall be evidenced in writing. Sales of property pursuant to this subsection shall be governed by section 5 of title 41, except that fixed price sales may be conducted in the same manner and subject to the same conditions as are applicable to the sale of property pursuant to section 484(e)(5) of this title.

(d) Utilization of services by executive agencies without reimbursement or transfer of funds

In conformity with policies prescribed by the Administrator under subsection (a) of this section, any executive agency may utilize the services, work, materials, and equipment of any other executive agency, with the consent of such other executive agency, for the inspection of personal property incident to the procurement thereof, and notwithstanding section 1301(a) of title 31 or any other provision of law such other executive agency may furnish such services, work, materials, and equipment for that purpose without reimbursement or transfer of funds.

(e) Exchange or transfer of excess property

Whenever the head of any executive agency determines that the remaining storage or shelf life of any medical materials or medical supplies held by such agency for national emergency purposes is of too short duration to justify their continued retention for such purposes and that their transfer or disposal would be in the interest of the United States, such materials or supplies shall be considered for the purposes of section 483 of this title to be excess property. In accordance with the regulations of the Administrator, such excess materials or supplies may thereupon be transferred to or exchanged with any other Federal agency for other medical materials or supplies. Any proceeds derived from such transfers may be credited to the current applicable appropriation or fund of the transferor agency and shall be available only for the purchase of medical materials or supplies to be held for national emergency purposes. If such materials or supplies are not transferred to or exchanged with any other Federal agency, they shall be disposed of as surplus property. To the greatest extent practicable, the head of the executive agency holding such medical materials or supplies shall make the determination provided for in the first sentence of this subsection at such times as to insure that such medical materials or medical supplies can be transferred or otherwise disposed of in sufficient time to permit their use before their shelf life expires and they are rendered unfit for human use.

(June 30, 1949, ch. 288, title II, §201, 63 Stat. 383; Aug. 10, 1949, ch. 412, §12(a), (g), 63 Stat. 591; Sept. 5, 1950, ch. 849, §8(b), 64 Stat. 591; Pub. L. 85–781, Aug. 27, 1958, 72 Stat. 936; Pub. L. 91–426, §1, Sept. 26, 1970, 84 Stat. 883; Pub. L. 93–400, §15(1), (2), Aug. 30, 1974, 88 Stat. 800; Pub. L. 96–83, §10(a), Oct. 10, 1979, 93 Stat. 652; Pub. L. 98–191, §§8(d)(1), 9(a)(2), Dec. 1, 1983, 97 Stat. 1331; Pub. L. 100–612, §2, Nov. 5, 1988, 102 Stat. 3180; Pub. L. 103–355, title I, §1555, Oct. 13, 1994, 108 Stat. 3300; Pub. L. 105–61, title IV, §413, Oct. 10, 1997, 111 Stat. 1300.)

References in Text

The Office of Federal Procurement Policy Act, referred to in subsecs. (a)(1) and (c), is Pub. L. 93–400, Aug. 30, 1974, 88 Stat. 796, as amended, which is classified principally to chapter 7 (§401 et seq.) of Title 41, Public Contracts. For complete classification of this Act to the Code, see Short Title note set out under section 401 of Title 41 and Tables.

The Javits-Wagner-O'Day Act, referred to in subsec. (b)(2)(A), is act June 25, 1938, ch. 697, 52 Stat. 1196, as amended, which is classified to sections 46 to 48c of Title 41, Public Contracts. For complete classification of this Act to the Code, see Tables.

Committee for Purchase from the Blind and Other Severely Handicapped, referred to in subsec. (b)(2)(C)(ii), probably means Committee for Purchase From People Who Are Blind or Severely Disabled established by section 46 of Title 41, Public Contracts.

Codification

In subsec. (a), “Department of Defense” substituted for “National Military Establishment” on authority of act Aug. 10, 1949, ch. 412, §12(a), (g), 63 Stat. 591.

In subsec. (d), “section 1301(a) of title 31” substituted for “section 3678 of the Revised Statutes (31 U.S.C. 628)” on authority of Pub. L. 97–258, §4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.

Section was formerly classified to section 231 of Title 41, Public Contracts.

Amendments

1997—Subsec. (b). Pub. L. 105–61 amended subsec. (b) generally, substituting present provisions for provisions which related to extension of services to Federal agencies, mixed ownership corporations, and District of Columbia, and cooperative purchasing.

1994—Subsec. (b). Pub. L. 103–355 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The Administrator shall as far as practicable provide any of the services specified in subsection (a) of this section to any other Federal agency, mixed ownership corporation (as defined in the Government Corporation Control Act), or the District of Columbia, upon its request.”

1988—Subsec. (c). Pub. L. 100–612 inserted provisions that sales of property under this subsection be governed by section 5 of title 41, with an exception for fixed price sales.

1983—Subsecs. (a)(1), (c). Pub. L. 98–191 inserted “and regulations” after “subject to policy directives” and then substituted “subject to regulations” for “subject to policy directives”. A literal execution of both amendments would have resulted in phrase reading “subject to regulations and regulations”.

1979—Subsecs. (a)(1), (c). Pub. L. 96–83 substituted “policy directives” for “regulations”.

1974—Subsec. (a)(1). Pub. L. 93–400, §15(1), made authority of Administrator to prescribe policies and methods subject to regulations prescribed by Administrator for Federal Procurement Policy pursuant to Office of Federal Procurement Policy Act.

Subsec. (c). Pub. L. 93–400, §15(2), substituted “the Administrator, subject to regulations prescribed by the Administrator for Federal Procurement Policy pursuant to the Office of Federal Procurement Policy Act, may exchange” for “the Administrator, may exchange”.

1970—Subsec. (e). Pub. L. 91–426 added subsec. (e).

1958—Subsec. (d). Pub. L. 85–781 added subsec. (d).

1950—Subsec. (b). Act Sept. 5, 1950, struck out “or the Senate, or the House of Representatives,” after “District of Columbia,”.

Effective Date of 1994 Amendment

For effective date and applicability of amendment by Pub. L. 103–355, see section 10001 of Pub. L. 103–355, set out as a note under section 251 of Title 41, Public Contracts.

Effective Date of 1979 Amendment

Amendment by Pub. L. 96–83 effective Oct. 1, 1979, see section 12 of Pub. L. 96–83, set out as a note under section 401 of Title 41, Public Contracts.

Cooperative Purchasing

Pub. L. 104–106, div. D, title XLIII, §4309, Feb. 10, 1996, 110 Stat. 670, provided that:

“(a) Delay in Opening Certain Federal Supply Schedules To Use by State, Local, and Indian Tribal Governments.—The Administrator of General Services may not use the authority of section 201(b)(2) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481(b)(2)) to provide for the use of Federal supply schedules of the General Services Administration until after the later of—

“(1) the date on which the 18-month period beginning on the date of the enactment of this Act [Feb. 10, 1996] expires; or

“(2) the date on which all of the following conditions are met:

“(A) The Administrator has considered the report of the Comptroller General required by subsection (b).

“(B) The Administrator has submitted comments on such report to Congress as required by subsection (c).

“(C) A period of 30 days after the date of submission of such comments to Congress has expired.

“(b) Report.—Not later than one year after the date of the enactment of this Act [Feb. 10, 1996], the Comptroller General shall submit to the Administrator of General Services and to Congress a report on the implementation of section 201(b) of the Federal Property and Administrative Services Act of 1949 [40 U.S.C. 481(b)]. The report shall include the following:

“(1) An assessment of the effect on industry, including small businesses and local dealers, of providing for the use of Federal supply schedules by the entities described in section 201(b)(2)(A) of the Federal Property and Administrative Services Act of 1949.

“(2) An assessment of the effect on such entities of providing for the use of Federal supply schedules by them.

“(c) Comments on Report by Administrator.—Not later than 30 days after receiving the report of the Comptroller General required by subsection (b), the Administrator of General Services shall submit to Congress comments on the report, including the Administrator's comments on whether the Administrator plans to provide any Federal supply schedule for the use of any entity described in section 201(b)(2)(A) of the Federal Property and Administrative Services Act of 1949.

“(d) Calculation of 30-Day Period.—For purposes of subsection (a)(2)(C), the calculation of the 30-day period shall exclude Saturdays, Sundays, and holidays, and any day on which neither House of Congress is in session because of an adjournment sine die, a recess of more than 3 days, or an adjournment of more than 3 days.”

Section Referred to in Other Sections

This section is referred to in sections 474, 475, 755, 756, 757 of this title; title 10 sections 2381, 12603; title 22 section 2674; title 25 section 450j; title 28 section 612; title 50 section 491.

1 See 1983 Amendment note below.

2 See References in Text note below.

3 See 1983 Amendment note below.