NASA Procedural Requirements

NPR 4300.1A Effective Date: July 19, 1999 Expiration Date: June 26, 2013

Subject: NASA Personal Property Disposal Procedural Requirements (Revalidated 2/17/06 with Change 1)

Responsible Office: Logistics Management Division

Chapter 7. Exchange/Sale Property

7.1. Background

This chapter sets forth the requirements for the identification and processing of NASA-owned personal property declared as exchange/sale property for replacement purposes. NASA strives to the maximum extent feasible and economical, to exchange or sell property for which a replacement is necessary, and to apply the exchange allowance proceeds in whole or as partial payment for the replacement property acquired.

7.2. Guidance Information

7.2.1. Section 201(c) of the Federal Property and Administrative Services Act of 1949, 63 Stat. 384, as amended, 40 U.S.C. 481(c).

7.2.2. FPMR, 41 CFR 101-46, Utilization and Disposal of Personal Property Pursuant to Exchange/Sale Authority.

7.3. Exchange (Trade In)

7.3.1. An exchange or trade-in generally occurs when a NASA organization desires to replace or upgrade a nonexcess item of property. During the new procurement process, a vendor may offer NASA an exchange allowance for the old, used NASA property that is a direct reduction to the vendor's new property price.

7.3.2. The NASA PDO will ensure that both the old and new property, and proposed exchange transactions, are eligible for exchange/sale in accordance with 41 CFR 101-46. The NASA PDO will determine in each case whether exchange or sale will obtain the greater return for the Government. All administrative and overhead costs shall be considered when estimating the return by either method. The PDO will ensure that quick (10-day via email) NASA Agencywide screening, and appropriate Federal screening, is accomplished to the maximum extent practicable or economical prior to any disposal action. Attempt to further utilize property that is eligible for replacement in accordance with replacement standards in 41 CFR 101-46.201-2 is not required.

7.3.3. The vendor is notified of the amount determined for the property to be exchanged. An exchange generally occurs when a vendor delivers a replacement item and removes the old, used item being replaced.

7.4. Sale of Replacement Property

7.4.1. The sales portion of the exchange/sale process generally occurs when a NASA organization desires to replace or upgrade a nonexcess item of property and no vendor offers an exchange allowance, or the exchange allowance is significantly less than anticipated sales proceeds. A cost-effective method is for the NASA PDO to match completed new procurements of property to incoming similar property for disposal processing and then mark the incoming as used property for exchange/sale processing via sales.

7.4.2. The NASA PDO will ensure that both the old property to be sold, and new property to be procured, are eligible for exchange/sale in accordance with 41 CFR 101-46. The PDO will ensure that quick (10 days) NASA Agency screening and Federal screening of 7 calendar days via NPDMS and GSA interface is accomplished prior to any disposal action. Attempting to further utilize property that is eligible for replacement in accordance with replacement standards in 41 CFR 101-46.201-2 is not required.

7.4.3. The NASA PDO will ensure that sales transactions of less than $100 in proceeds, which are normally considered to be uneconomical for processing as exchange/sale property, are instead declared excess property and processed in accordance with 41 CFR 101-43.

7.4.4. Exchange/sale personal property does not go through a donation screening period. Instead, exchange/sale personal property may be sold to Property Act eligible donees by negotiation at fixed prices prior to public sale.

7.5. Transfers of Exchange/Sale Personal Property

Exchange/sale property may be transferred to other NASA organizations and Federal agencies as agreed to by the NASA PDO and the acquiring Government organization. The NASA PDO will negotiate the transfer reimbursement which shall not exceed an amount greater than the highest estimate of the gross proceeds if the property were to be sold on a competitive bid basis, or the dollar value offered on a trade-in basis.

7.6. Restrictions and Limitations

7.6.1. Federal restrictions and limitations on exchange/sale property is contained in 41 CFR 101-46. Property in 30 of the 99 Federal Supply Classification Groups is not eligible for processing as exchange/sale property. The item sold or exchanged must be similar (reference 41 CFR 101-46.202(b)(1)) to the item acquired. The items exchanged or sold are not excess. Generally, an item is acquired to replace one similar item. Property in new or unused condition, or scrap materials condition, may not be processed as exchange/sale property.

7.6.2. The acquisition of new property and exchange or sale of old property can occur over a period of time and at different physical locations. The NASA PDO`s will coordinate exchange/sale transactions to ensure that the Agency receives maximum benefit without the need to reassign property among NASA organizations to apply the exchange allowance or sales proceeds from the property account of one NASA organizational unit to the cost of a similar item acquired by another NASA organizational unit (including another Center).

7.7. Special Authorizations

7.7.1. Unneeded books and periodicals in Federal agencies libraries may be exchanged for other books and periodicals, without monetary appraisal or detailed listing or reporting.

7.7.2. When acquiring items for historical preservation or display at Federal museums, historic items property accounts may be exchanged without regard to the Federal supply classification group or the requirement to replace items on a one-for-one basis. The exchange transaction must be documented and certified by the Agency head to be in the best interest of the Government and ensure that all other provisions of the exchange/sale Federal regulations have been met.

7.7.3. Deviations from Federal regulations and/or limitations on property to be processed as exchange/sale property shall be granted by the Administrator of GSA, or designee. In general, if a deviation can save the Federal Government $100,000 or more, the NASA PDO should develop written justification and submit it for consideration and approval to NASA Headquarters, Security, Logistics, Aircraft and Industrial Relations Division. NASA Headquarters will coordinate the necessary approval from the GSA.

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