Terms And Conditions On Donable Property

(1) The State Agency imposes the following terms, conditions, reservations, and restrictions on the donees obtaining Federal surplus property: (a) All property shall be placed in use for the purpose for which acquired within one year from date of receipt and shall be continued in use for such purpose for one year. In the event the property is not so placed in use, or continued in use, the donee shall immediately notify the State Agency, and at the donee’s expense, return such property to the Agency, or otherwise make the property available for transfer to another donee. (b) Property having a unit acquisition cost of $3,000 or more, and any passenger motor vehicle, carry a restriction of eighteen months from the date the property was placed in use. (c) The State Agency may impose additional restrictions on any items, regardless of unit acquisition cost, as it may deem appropriate. It may further impose special restrictions on property involving special handling or use limitations as the Administrator of General Services may determine necessary because of the characteristics of the property pursuant to FPMR Par. 101-44.108, “Donation of Special Categories of Property,” which follows: “The Administrator of General Services is authorized, as circumstances warrant, to impose appropriate conditions on the donation of property having characteristics that require special handling or use limitations. In exercising his discretion the Administrator may, on a case-by-case basis, prescribe additional restrictions covering the handling or use of such property.” (2) Section 101-44.108-1 - Drugs, biologicals, and reagents other than controlled substances; and certain shelf-life items. (a) Surplus drugs, biologicals, and reagents which are in Federal Supply Class 6505 and which are not required to be destroyed as provided in Section 101-45.505 may be donated to public agencies for authorized public purposes and to non-profit health and educational institutions. If the report of excess or other communication from the holding activity listing the drugs, biologicals, and reagents indicates any items which are unfit for human use, GSA will not offer such items for donation. Controlled substances (as defined in Section 101-43.001-4) shall not be donated. (b) Whenever surplus drugs, biologicals, and reagents are considered for donation, a letter of clearance shall be obtained by the State Agency or designated donee from the Food and Drug Administration (FDA) indicating which items may be safely donated. The State Agency or designated donee shall obtain the letter of clearance and ensure that the letter accompanies Standard Form 123, Application for Donation of Surplus Personal Property. (See Section 101-44.4901-123). Items which do not fall within the purview of FDA, on which FDA indicates are unsuitable, will not be considered by GSA for donation. DISTRIBUTION OF FEDERAL SURPLUS PROPERTY CHAPTER 0690-01-01 WITHIN THE STATE OF TENNESSEE (c) For purposes of obtaining the letter of clearance from FDA, the State Agency or designated donee shall be responsible for obtaining and providing samples of any item that is required. Any payment of costs for laboratory examinations for quality assurance of samples shall be arranged by the State Agency. Before laboratory examinations are undertaken by FDA, an estimate of the expected cost of the quality assurance shall be furnished by FDA to the State Agency. (d) In addition, in the case of property requested by a State Agency, the application shall contain also a statement that (1) for any quantity of items approved for donation which is to be stored in a State Agency warehouse prior to distribution, the State Agency certifies that adequate facilities are available to effect full accountability and property storage of the items in accordance with Federal, State, and local statutes governing the acquisition, storage, and accountability of the items requested; (2) the facilities will be used for the protection of the items, including protection against theft and pilferage; (3) the items will be distributed only to institutions licensed and authorized to administer and dispense items or to organizations authorized to store items; and (4) in addition to the normal certifications required by responsible officials of donee institutions or organizations when property is acquired by donation, the State Agency shall obtain a certification from the donee indicating that (i) the items transferred to the donee institution or organization will be safeguarded, dispensed, and administered under competent supervision; (ii) adequate facilities are available to effect full accountability and proper storage of the property in accordance with Federal, State, and local statutes governing the acquisition, storage, and accountability; and (iii) the administration or use of the property will comply with the provisions of the Federal Food, Drug, and Cosmetic Act, as amended (21 U.S.C. 301-392). (e) Shelf-life items determined to be surplus in accordance with Section 101-43.313-9(I) shall be made available for donation screening for authorized public purposes, for nonprofit health and educational institutions, and for public airport purposes, pursuant to the provisions of Section 101-44.109. Prior to donation, drugs, biologicals, and reagents other than controlled substances, except those requiring refrigeration or deep freeze and those which are excepted from the provisions of Section 101-43.313-9, shall be processed as provided in this Section 101-44.108-1. (f) Medical materials and medical supplies held for national emergency purposes and determined to be surplus in accordance with Section 101-43.313.10(g) shall be made available for donation screening for authorized public purposes, for nonprofit health and educational institutions, and for public airport purposes, pursuant to the provisions of Section 101-44.109. Prior to donation, drugs, biologicals and reagents which are not required to be destroyed as provided in Section 101-45.505 shall be processed as provided in this Section 101-44.108-1. (3) Section 101-44.108-2 - Donation of Aircraft - This section provides procedures and conditions for the donation of aircraft which are not classified for reasons of national security and which have been demilitarized where required. The requirements of this paragraph apply to the donation of any fixed- or rotary-wing aircraft with a unit acquisition cost of $3,000 or more but do not apply to any components, accessories, parts, or appurtenances thereof. (a) Plan of utilization - To assist GSA in the allocation and transfer of available surplus aircraft, each SF 123 submitted to GSA for donation of an aircraft covered by this Section 101-44.108.2 shall include a letter of intent, signed and dated by the authorized representative of the proposed donee, setting forth a detailed plan of utilization for the property. The letter of intent shall provide the following information: DISTRIBUTION OF FEDERAL SURPLUS PROPERTY CHAPTER 0690-01-01 WITHIN THE STATE OF TENNESSEE 1. Description of the aircraft requested, including the type, model or size, and the serial number, if it is known; 2. Description of the donee’s program and the number of aircraft currently owned; and 3. Whether the aircraft is to be used for flight purposes or non-flight purposes (including ground instruction, simulation or static display), and details of the planned utilization of the property. When the aircraft is requested for cannibalization (recovery of parts and components), the letter of intent should provide details. (b) Donation of aircraft to public agencies and nonprofit educational and public health activities. 1. For the donation of an aircraft to a donee eligible in accordance with the provisions of Subpart 101-44.2, the SF 123 and the donee’s letter of intent shall be processed by and through the State Agency for the State in which the donee is located, and submitted to GSA for approval. 2. The State Agency shall require the following use conditions on the donation of aircraft to be used for flight purposes. (i) The aircraft shall be used solely in accordance with the plan of utilization set forth in the donee’s letter of intent unless the State Agency, in writing, authorizes a change in the donee’s plan of utilization. (ii) The donee shall agree to apply to the Federal Aviation Administration for registration of an aircraft intended for flight use within 30 days of receipt of the aircraft. 3. In the case of combat-type aircraft, as designated by GSA: (i) The State Agency shall impose a period of restriction on the use of the property which shall be perpetuity and shall not be released by the State Agency without the prior approval of GSA. (ii) During the period of restriction, the donee shall not sell, trade, lease, lend, bail, encumber, or cannibalize for parts unless provided for in the donee’s plan of utilization, or otherwise dispose of the aircraft or parts thereof without the written approval of GSA. 4. If a combat-type aircraft is no longer usable or further needed by the donee, the donee shall promptly notify the State Agency and: (i) Release the aircraft to another donee as determined by the State Agency. (The transfer shall be subject to the same use conditions as required herein.); (ii) Release the aircraft to a department or agency of the United States as determined by GSA; (iii) Sell the aircraft as determined by GSA; or DISTRIBUTION OF FEDERAL SURPLUS PROPERTY CHAPTER 0690-01-01 WITHIN THE STATE OF TENNESSEE (iv) Render the aircraft completely unfit for any purpose except for the recovery of its basic material content as determined by GSA, the same to be performed in a manner satisfactory to the State Agency, and the material content to be disposed of in accordance with the instructions of the State Agency. 5. If a combat-type aircraft is disposed of by the donee without the prior written approval of GSA or is used for a purpose other than the purpose stated, the donee, at the option of GSA, shall be liable to the United States of America for the proceeds of the disposal, the fair market value, or the fair rental value of the aircraft at the time of authorized transaction or use, as determined by GSA. 6. In the event of a breach by the donee of any of the above conditions pertaining to a combat-type aircraft, whether caused by the legal inability of the donee or its successor in function to perform said conditions or otherwise, all rights, title, and interest in and to the aircraft shall, at the option of GSA, revert to and become the property of the United States of America and the donee, or its successors or assigns, shall forfeit all of its or their rights, title, and interest in and to the aircraft. 7. In the case of any aircraft donated for non-flight use, including cannibalization, the State Agency shall acquire and destroy the aircraft historical modification records and the manufacturer’s data plant, and shall by letter so certify to the Federal Aviation Administration at the following address: Chief, Quality Standard Service, Federal Aviation Administration, 800 Independence Avenue, SW, Washington, DC 20591. 8. The State Agency may impose other terms, conditions, reservations, or restrictions on the use of aircraft donated under this Section 101-44.108-2 which are not inconsistent with the conditions set forth in Sections 101-44.108-2(c)(2) and 101-44.208. 9. In the case of combat-type aircraft, the State Agency shall not grant waivers, amendments, modifications, or releases to the conditions required to be imposed by GSA of the use of the property nor issue disposal instructions to the donee for the aircraft without the prior written concurrence of GSA. 10. Any breach by the donee of any conditions imposed by GSA on the donation of any aircraft shall be reported immediately by the State Agency to GSA. (c) Donations of aircraft to service educational activities. 1. For the donation of a surplus Department of Defense (DOD) aircraft to a donee eligible in accordance with the provisions of Subpart 101-44.4, the Standard Form 123 and the donee’s letter of intent shall be processed by and through the Defense Logistics Agency (DLA), Cameron Station, Alexandria, VA 22314, and submitted to GSA for approval. 2. Surplus DOD aircraft which have been demilitarized may be approved for donation by GSA to service educational activities for non-flight use, for static display, or for ground instruction and simulation purposes. 3. Surplus DOD non-combat and commercial-type aircraft may be approved for donation by GSA at the request of DLA for flight purposes by service educational activities subject to the following use conditions and agreements which DLA shall require of the donee: DISTRIBUTION OF FEDERAL SURPLUS PROPERTY CHAPTER 0690-01-01 WITHIN THE STATE OF TENNESSEE (i) The aircraft shall be used solely in connection with the plan of utilization set forth in the donee’s letter of intent unless DLA authorizes a change in writing to the donee’s plan of utilization. (ii) The donee shall apply to the Federal Aviation Administration for registration within 30 days of receipt of the aircraft. (iii) When the aircraft is no longer usable or needed by the donee for the original purpose for which it was acquired, the donee shall return the aircraft, at its expense, to the nearest DOD disposal activity. (d) Donations of aircraft for public purposes. 1. For the donation of a surplus aircraft to a donee eligible in accordance with the provisions of Subpart 101-44.5, the SF 123 and the donee’s letter of intent shall be processed by and through the Federal Aviation Administration and submitted to GSA for approval. 2. Surplus cannibalized or demilitarized aircraft may be approved for donation by GSA to a public airport for use in firefighting and rescue training. Flyable aircraft will not be approved for donation for public airport purposes. (4) Section 101-44.108-3 - Automatic data processing equipment - For automatic data processing equipment, the State Agency or other donee shall forward the Standard Form 123 to GSA for coordination and clearance with the holding agency. Applications for a computer system(s) must be accompanied by a letter from the intended donee setting forth the proposed use of the equipment. (5) Section 101-44.108-4 - Military-type items with lethal characteristics - Except for donation for State and local law enforcement or other public safety use and for limited donation of firearms and ammunition to eligible service educational activities, weapons and other combat-type items with lethal characteristics, which, if released, would be dangerous to the public health or safety, are not donable, and requests for property will not be approved by GSA. (6) Section 101-44.108-5 - Bedding and upholstered furniture - A Standard Form 123 submitted to GSA regional office for donation of bedding and upholstered furniture will not be approved by GSA unless the State Agency or other donee includes a statement that the material will be treated in accordance with applicable State laws and regulations before reuse. (7) Section 101-44.108-6 - Tax-free alcohol or specially denatured alcohol. (a) Whenever tax-free or specially denatured alcohol is requested for donation, the donee must possess a special permit to acquire the property issued by the Assistant Regional Commissioner of the appropriate regional office, Bureau of Alcohol, Tobacco, and Firearms (BATF), Department of the Treasury. (b) A Standard Form 123 submitted to a GSA regional office for donation of tax-free or specially denatured alcohol will be not approved by GSA unless the appropriate BATF use permit number is shown. (c) A State Agency shall not store tax-free or specially denatured alcohol in distribution centers. This property shall be transferred from holding agencies direct to the designated donee. DISTRIBUTION OF FEDERAL SURPLUS PROPERTY CHAPTER 0690-01-01 WITHIN THE STATE OF TENNESSEE (8) Section 101-44.108-7 - Franked and penalty envelopes and paper with official letterhead - A Standard Form 123 submitted to a GSA regional office for donation of paper with an official letterhead or for donation of franked or penalty envelopes on which the penalty indicia has not been obliterated will not be approved by GSA unless the State Agency or other donee includes a statement certifying that the indicia and all other Federal Government markings on the envelopes and paper will be completely obliterated before they are used. (9) Section 101-44.108-8 - Pesticides and herbicides - Standard Forms 123 requesting donation of pesticides and herbicides will not be approved by GSA Regional offices until full clearance for use of the property have been received by GSA from the Environmental Protection Agency headquarters office. (10) Section 101-44.108-9 - Donation of vessels. (a) Each SF 123 submitted to GSA for donation of a vessel which is 50 or more feet in length shall be accompanied by a letter from the intended donee setting forth the proposed use of the vessel. (b) Each donee, as a condition of the donation, shall agree to obtain documentation of the vessel under the applicable laws of the United States and the several States, to maintain this documentation at all times, and to record each document with the U.S. Coast Guard at the port of documentation of the property within 60 days after acquisition of the vessel. (11) The State Agency may amend, modify, or grant release of any term, condition, reservation, or restriction it has imposed on donated items of personal property in accordance with the enclosed standards (Exhibit A, sample copy enclosed), 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 public record. (12) Cannibalization of items on which GSA has imposed special handling conditions or use limitations will require prior GSA approval during the period of restriction. (13) Non-combat aircraft and vessels over 50’ carry a five-year restriction from the date they were placed in use. (See Exhibit B - Vessel Conditional Transfer Document, and Exhibit C - Non- combat type Aircraft Conditional Transfer Document). (14) Combat-type aircraft carry a perpetual restriction. (See Exhibit D - Combat-type Aircraft Conditional Transfer Document). (15) From the date it receives the property and through the period of time the restrictions remain in effect, the donee shall not sell, trade, lease, lend, bail, cannibalize, encumber, or otherwise dispose of such property or remove it permanently, for use outside the State, without the prior approval of the State Agency. The proceeds from any sale, trade, lease, loan, bailment, encumbrance or other disposal of the property, when such action is authorized by the State Agency, shall be remitted promptly by the donee to the State Agency. (16) In the event any of the property is sold, traded, leased, loaned, bailed, cannibalized, encumbered, or otherwise disposed of by the donee from the date it receives the property through the periods it is under restriction, without the proper prior approval of the State Agency, the donee, at the option of the State Agency, shall pay to the State Agency the proceeds of the disposal or for the fair market value or the fair rental value of the property at the time of such disposal, as determined by the State Agency. DISTRIBUTION OF FEDERAL SURPLUS PROPERTY CHAPTER 0690-01-01 WITHIN THE STATE OF TENNESSEE (17) If at any time from the date it receives the property and throughout the period of restriction any of the property is no longer suitable, usable, or further needed by the donee for the purpose for which acquired, the donee shall promptly notify the State Agency, and shall, as directed by the State Agency, return the property to the State Agency, release the property to another donee or another state agency, sell or otherwise dispose of the property. The proceeds from any sale shall be remitted promptly by the donee to the State Agency. (18) The donee shall make reports to the State Agency on the use, conditions, and location of the property listed hereon, and on other pertinent matters as may be required by the State Agency. (19) At the option of the State Agency, the donee may abrogate the terms, reservations, and restrictions by payment of an amount as determined by the State Agency.