Current through Vol. 42, No. 7, December 16, 2024
(a) The Agent shall inform donees that
property the donee receives is subject to the use restrictions and requirements
of 41 CFR 102-37, GSA and as specified by this Section. Donees shall
acknowledge and agree to restrictions and requirements at the time of
acceptance of property. The Agent may only grant releases from state imposed
use restrictions, conditions or special handling instructions.
(b) A donee shall present an encumbrance (or
certification) document to the Agent certifying adequate funds to pay service
charges the donee incurs to acquire the property.
(c) A donee accepts property as is, with no
expressed or implied warranty, except that a donee may return property to the
agency pursuant to provisions of (g) of Section
260:80-1-13.
(d) The state and federal governments are not
liable for and held harmless from actions incident to acquisition of the
property, its use or final disposition.
(e) A donee shall use property to carry out
or promote the public purpose of the donee entity.
(f) A donee shall not encumber property the
donee acquires from the agency by lien or other method of
encumbrance.
(g) A donee shall
place donated property in-use within one year of donee receipt of the
property.
(h) A donee shall return
property to the Agent if the donee does not use the property within one year of
receipt at the expense of the donee.
(i) A donee shall retain and use an item with
an OAC not exceeding $5,000 for the purpose for which it was donated for one
year after the donee places the property in-use.
(j) A donee shall retain passenger motor
vehicles or items with an OAC of (or exceeding) $5,000 in its possession for 18
months after the donee places the property in-use.
(k) A donee that acquires an aircraft or
vessel shall meet additional use requirements.
(1) A donee shall submit a Letter of Intent
that states the uses for which the donee intends to use the aircraft or vessel.
The Agent shall advise the donee of all information required to be included in
a Letter of Intent in accordance with 41 CFR 102 - 37.230.
(2) A donee shall use an aircraft or vessel
for a period of five years. The period of restriction for combat-configured
aircraft is perpetuity.
(3) A donee
shall apply to the Federal Aviation Administration (FAA) to register an
aircraft for flight use within 30 calendar days of donee receipt of the
aircraft.
(4) A donee shall apply
to register or document a vessel pursuant to applicable federal, state and
local laws within 30 calendar days of donee receipt of the vessel and record
each document with the U. S. Coast Guard.
(5) A donee shall include with its request
for registration or documentation a fully executed copy of the transfer
document and a copy of the donee Letter of Intent.
(6) Upon receipt, a donee shall provide a
copy of FAA registration or Coast Guard documentation to the Agent and
GSA.
(7) A donee shall use an
aircraft or vessel in accordance with the executed Conditional Transfer
Document and as set forth in the donee Letter of Intent.
(8) A donee may request amendments to the
donee Letter of Intent by submitting amendments in writing to the Agent and
GSA.
(9) A donee shall use an
aircraft or vessel for purposes the donee states in the donee Letter of Intent
unless the Agent and GSA provide approval of amendments to the Letter of
Intent.
(10) If required by FAA or
the U.S. Coast Guard, a donee shall provide a copy of the amended version of
the Letter of Intent (which must be approved by both the Agent and GSA) to the
FAA or U.S. Coast Guard, as applicable.
(11) If a donee breaches the terms and
conditions of an original or amended Conditional Transfer Document, title to
the aircraft or vessel may revert to the federal government, GSA may require
the donee to return the aircraft or vessel and may require the donee to pay for
any unauthorized disposal, transaction or use in accordance with FMR 102-37.460
(d).
(12) A donee may submit a
request to return an aircraft or vessel during a period of use restriction to
the Agent. The Agent shall notify GSA of the request. If GSA accepts the
request, the Agent will then request that GSA provide written instructions for
disposition. If GSA approves and provides instructions for disposal, the Agent
shall provide notice and disposal instructions to the donee.
(13) A donee shall not modify for flight
purposes military aircraft the donee receives for ground training or static
display.
(14) A donee that receives
an aircraft for non-flight use shall provide the Agent with aircraft historical
records within 30 calendar days of donee receipt of the aircraft. The Agent
shall forward the records to GSA.
(l) A donee shall agree upon execution of the
Agent's Distribution Document that the donee holds conditional title to
property during the period of use restrictions. Full title to the property will
vest in the donee only after the donee meets all property use
requirements.
(m) A donee shall not
remove the property from the state for permanent use or sell, trade,lease, loan
or otherwise dispose of property during periods of use restriction without
written authorization from the Agent.
(n) The Agent shall evaluate a donee request
for removal or property disposition as described in this Section and, if
required, seek GSA approval of the action. The Agent shall notify the donee of
approval or disapproval of the request.
(o) A donee shall report information
pertaining to property to the Agent, as the Agent requires, during periods of
use restriction.
(p) If a donee
insures property and the donee experiences an insured loss of the property
during a period of use restriction, the Agent or GSA is eligible to claim
reimbursement from insurance proceeds for an amount equal to the unamortized
portion of the fair market value for the insured item.
(q) A donee may request authorization to
cannibalize property from the Agent .
(1) A
cannibalization request for donated property which is in the custody of the
donee and under a use restriction period must be made in writing and approved
by the Agent prior to actual cannibalization action.
(2) The cannibalization request shall
identify all components of an item the donee intends to utilize.
(3) The Agent shall determine the value of
components of the item the donee intends to utilize.
(4) The Agent shall evaluate a donee request
for cannibalization pursuant to conditions of the transfer document and approve
or disapprove the request.
(5) The
Agent may grant authority to the donee to cannibalize the property if he/she
determines that such action will result in increased utilization of the
property. However, the Agent must not authorize cannibalization if the item can
be better used in its existing form or if GSA has not approved cannibalization
for property with special handling conditions or use limitations imposed by
GSA.
(6) If the Agent approves the
request, the Agent shall advise the donee of the following use restrictions and
requirements:
(A) Cannibalization by the donee
must begin within 1 year of receiving the property and shall continue until the
requirement for parts no longer exists (e.g., as parts are needed they are to
be removed)
(B) Property authorized
for cannibalization must remain under the use restriction imposed by the
transfer/distribution document until the proposed cannibalization is completed.
Components resulting from the cannibalization, which have a unit acquisition
cost of $5,000 or more, must remain under the restrictions stated on the
transfer/distribution document. Components with a unit acquisition cost less
than $5,000 may be released from state imposed restrictions only.
(C) When cannibalization actions are
completed before the end of the period of restriction and residue remains, the
Agent may authorize or require the donee to:
(i) Return unneeded residue to the
Agent;
(ii) Retain the residue for
use in other eligible programs; or
(iii) Report residue with an estimated fair
market value over five hundred dollars to the Agent, for which the Agent may
perform the following:
(I) Re-donate the
residue.
(II) If unable to
re-donate the residue, the Agent must report such residue to GSA for disposal
instructions.
(III) The Agent may
consider use restrictions satisfied if the fair market value of the remaining
residue is less than five hundred dollars and release such residue to the
donee, provided the proceeds of any disposal are returned to the account from
which the service charges were paid to the Agent for the property and used by
the donee in the eligible program.
(7) In cases where property is specifically
requested for the purpose of cannibalization, the intended donee must provide
written justification for the proposed action which shall accompany the SF 123
transfer document. The justification should provide detailed information
concerning the need for the components or accessories and an explanation of the
effect removal will have on the item. GSA will only approve donation of
property for cannibalization when it is clear from the justification that
disassembly of the item for component parts will provide greater potential
benefit than use of the item in its existing form.
(8) All property donated specifically for
cannibalization remains subject to the same terms, conditions, reservations,
use restrictions and special handling conditions imposed by GSA reflected in
(q)(6) of this Section.
(r) Vessels and aircraft shall remain subject
to the terms and conditions stated on the respective Conditional Transfer
Document (and based on the requirements of 41 CFR 102 - 37.450 and
102-37.460
).
(s) The Agent shall advise the
donee of the terms and conditions for the use, retention, return or disposal of
property having an OAC of $5,000 or more and any passenger motor vehicle or
other donated item. The donee will therefore obtain permission from the Agent
before attempting to dispose of donated property during the item's period of
use restriction.
(1) When a donee requests
disposal instructions, the Agent shall follow the provisions outlined in
Section
260:80-1-13.
(2) Subsection (s) of this Section is not
applicable to Service Educational Activities (SEAs) donees as only Department
of Defense (DOD) property may be donated to SEAs. In these cases, the Agent
shall observe any restrictions imposed on the property by the sponsoring
military service.
(t) A
donee may submit a request to the Agent for release from use restrictions for
property.
(1) The Agent may approve a request
for release from state requirements if the Agent determines by item review or
inspection that the property retains no capacity for useful purpose.
(2) A donee may request release from the
special handling conditions or use limitations imposed by GSA by submitting a
request to the Agent. The Agent shall forward the request to GSA and provide
additional information as required by GSA. The Agent will advise the donee of
the GSA determination.
(3) Upon
request from a donee, the Agent may, with GSA approval, grant an extension of
the time period to place property in-use if the Agent determines that a delay
results from factors beyond the predictable control of the donee.
(u) A donee may request that the
Agent exchange an item that the donee used for a minimum of six months subject
to item use restrictions and requirements for one like item having similar use
potential if the exchange will result in increased utilization value to the
donee.
(1) The use restrictions and special
handling requirements for the item received by the donee shall commence upon
donee receipt of the item.
(2) The
Agent shall ensure that the OAC of the item the donee receives in exchange is
of equal or greater value than the item the donee originally
received.
