C. Amendment
and release of terms and conditions.
1. The
State Agency may amend, modify, or grant releases of any term, condition, or
restriction it has imposed on donated items in accordance with the standards
prescribed in Exhibit 3,
1VAC30-120-150, in this plan
provided that the conditions pertinent to each situation have been
affirmatively demonstrated to the prior satisfaction of the State Agency and
made a matter of record.
2.
Pursuant to FMR 102-37.465(1) the State Agency may grant approval to the donee
to cannibalize or accomplish secondary utilization of an item which is subject
to the terms, conditions, reservations, or restrictions as listed on the
Distribution Document and Invoice, Exhibit 1. The State Agency may issue an
item for the purposes of cannibalization or secondary utilization with approval
for such action marked on the Distribution Document and Invoice. If a donee
finds that it cannot use the donated item for the purposes for which acquired,
and therefore wishes to cannibalize it or accomplish secondary utilization, a
written request for an approval must be submitted to the State Agency. The
request shall give item identification, condition, and proposed use. The State
Agency will respond in writing and may grant approval when it is determined
that such action appears to be the best utilization of the item.
3. Standards to amend or grant releases. In
accordance with this section of the plan of operation, the State Agency may
amend or grant releases during the period of restriction from the terms,
conditions, reservations, or restrictions it has imposed on donated property;
in accordance with the following standards provided that the conditions
pertinent to each situation have been affirmatively demonstrated to the prior
satisfaction of the State Agency, and have been made a matter of record:
a. Secondary utilization or cannibalization.
Secondary utilization or cannibalization may be accomplished provided that:
(1) Disassembly of the item for use of its
component parts for secondary use or repair and maintenance of a similar item
has greater potential benefit than utilization of the item in its existing
form;
(2) Items approved for
disassembly or cannibalization will remain under the period of restriction
imposed by the transfer document pending completion of the proposed secondary
use or cannibalization; and
(3) A
written report of such action is made by the donee to the State Agency,
including a list of all components resulting from the secondary utilization or
cannibalization that have a single item acquisition cost of $3,000 or more.
These components will remain under the restrictions imposed by the transfer
document. Components with a single item acquisition cost of less than $3,000
will be released from the restrictions imposed by the transfer document.
However, these components will continue to be used or be otherwise disposed of
in accordance with applicable law and regulations.
b. Trade-in of an item on a similar
replacement. An item of donated personal property may be traded in or used as
whole or part payment for another like item of property provided:
(1) The item being traded in is not, when the
request is made, in compliance status for violation of the terms, conditions,
reservations, or restrictions placed on it;
(2) The item being traded in has been used by
the donee for eligible purposes for at least six months from the date of being
placed in use, and it has been demonstrated that the trade-in will result in
increased utilization value to the donee;
(3) The trade-in is on a one-for-one basis
only, i.e., one donated item being traded for one like item having similar use
potential;
(4) The item being
acquired has an estimated market value at least equal to the estimated market
value of the item being traded in; and
(5) The item acquired is made subject to the
period of restriction remaining on the item traded in.
c. Abrogation. Except in cases involving the
failure to use or the misuse of donated property, abrogation of restrictions
imposed by the State Agency in the transfer instrument may be authorized upon
payment to the State Agency of an amount representing the fair market value at
the time of donation less a credit for the time the property was used for the
purpose for which donated, during the period of restriction, and provided that
the State Agency determines that such action will not result in a windfall
revenue to the donee, and provided further that the property has been used for
at least 12 months from the date of being placed in use.
d. Revision of the acquisition cost. The
acquisition cost of an item may be revised provided that the request therefore
is made in writing by the donee, and it is determined by the State Agency that
the listed acquisition cost is unrealistic in view of its research and
development costs, its incompleteness due to missing parts, or its generally
deteriorated condition.
e.
Destruction and abandonment. A donated item of personal property may be
destroyed or abandoned by a donee when it is determined that the item has no
commercial value or the estimated cost of its continued care and handling would
exceed the estimated proceeds from its sale. The determination shall be based
on a finding made in writing by the State Agency and the State Agency shall
prescribe the means and methods whereby the property shall be destroyed or
abandoned.
f. Enforcement of
compliance. The enforcement of the terms and conditions, reservations and
restrictions imposed by the State Agency, of donated property, or the remedy of
breaches of such terms and conditions, may be satisfied:
(1) When payment is made to the State Agency
of any and all fair rental values due and payable for any unauthorized use of
donated property;
(2) When payment
is made to the State Agency of either the fair market value or gross proceeds
of sale, whichever is in the best interest of the state, for the unauthorized
disposal or destruction of donated property; or
(3) When donated property is recovered by the
State Agency accountability and distribution of such property is the
responsibility of the State Agency.
g. Reduction in the period of restriction.
Provided an item of donated property is not in compliance status, a reduction
in the period of restriction may be authorized when a revised standard covering
the period of restriction is promulgated by the State Agency.
h. Limitations. These provisions are not
applicable to:
(1) Donated military-type
aircraft or other items of property on which federal General Services
Administration has imposed special handling condition or use limitations;
or
(2) Property which was not
placed in use for the purposes for which acquired within one year from the date
the property was placed in use, and continued in use for one year from the date
the property was placed in use, except with respect to secondary use or
cannibalization as provided in FMR 102-37.465(c).