GSA Office of Government-wide Policy Using Exchange / Sale Authority Authority

GSA Office of Government-wide Policy

UsingUsingExchange / Sale Exchange / Sale

AuthorityAuthority


What Is Exchange / Sale AuthorityWhat Is Exchange / Sale Authority& How Can I Use It?& How Can I Use It?

This Authority Allows the:This Authority Allows the:

- - ExchangeExchange- - SaleSale- - Reimbursable TransferReimbursable Transfer

of Eligible Personal Propertyof Eligible Personal Property

Proceeds must be used to purchase, Proceeds must be used to purchase, rent rent oror lease a lease a REPLACEMENTREPLACEMENT item(s) item(s)

Use Exchange/Sale authority to offset the cost of replacement personal propertyUse Exchange/Sale authority to offset the cost of replacement personal property

All Federal Agencies Can Utilize Exchange/Sale Authority All Federal Agencies Can Utilize Exchange/Sale Authority to offset the cost of replacement personal propertyto offset the cost of replacement personal property


Who can use Exchange / Sale?


Why use Exchange/Sale?Why use Exchange/Sale?

Would you give your car back to the dealer Would you give your car back to the dealer for free when you bought a new car?for free when you bought a new car?

……no wayno way… … you’d trade it in or sell it! you’d trade it in or sell it!

The same logic should apply to the The same logic should apply to the purchase of all Government property!purchase of all Government property!



The Replacement Item Should Be “Similar” to the The Replacement Item Should Be “Similar” to the Item Sold or Exchanged. Item Sold or Exchanged.

•Identical Item Identical Item OR…OR…• Item Constructed for the Same Specific PurposeItem Constructed for the Same Specific PurposeOR…OR…• Both, constitute parts or containers for identical or Both, constitute parts or containers for identical or similar end items similar end items OR…OR…• Both Items Fall Within the Same FSC Both Items Fall Within the Same FSC Group (2-digit). Group (2-digit). FMR 102-39.20FMR 102-39.20

What is “Similar”?What is “Similar”?


What Personal Property is Eligible for Exchange/Sale?What Personal Property is Eligible for Exchange/Sale?

The following Federal Supply Classes (FSC’s) areThe following Federal Supply Classes (FSC’s) are… … NOTNOT to be sold / exchanged to be sold / exchanged without a waiver without a waiver ::


What Personal Property is Eligible for Exchange/Sale?What Personal Property is Eligible for Exchange/Sale?

Property that is Property that is EXCESSEXCESS is not eligible for Exchange/Sale is not eligible for Exchange/Sale


Must the Exchange / Sale be one-for-one?

No Longer. However….No Longer. However….

• The items acquired should perform all, The items acquired should perform all, or substantially all, of the tasks in which or substantially all, of the tasks in which the old items would otherwise be used.the old items would otherwise be used.

• The items exchanged/sold or acquired The items exchanged/sold or acquired can not be excess to current needs.can not be excess to current needs.


Applying the Proceeds:Applying the Proceeds:

The item(s) acquired The item(s) acquired performs all or substantially all performs all or substantially all of the tasks of the tasks for which the item(s) exchanged or sold would otherwise be usedfor which the item(s) exchanged or sold would otherwise be used

=+

FMR 102-39.20FMR 102-39.20

+ =+22 Passenger 22 Passenger 22 Passenger

44 Passenger


Time Limit for Proceeds:

Exchange/Sale proceeds are typically available during the Exchange/Sale proceeds are typically available during the fiscal year in which property is sold and for one additional fiscal year in which property is sold and for one additional fiscal year. fiscal year.

Unused proceeds will be lost.Unused proceeds will be lost.

HOWEVER:HOWEVER:Per FMR 102-39.25 GSA can grant an Per FMR 102-39.25 GSA can grant an extension for valid reasonsextension for valid reasons

FMR 102-39.70FMR 102-39.70



What’s in this for Me?

Save your agency lots of money and become a super hero!


What’s the Catch?

• Can’t sell or exchange any item from the prohibited Can’t sell or exchange any item from the prohibited FSC list without approved waiver from GSAFSC list without approved waiver from GSA

• Must acquire “personal property” – Must acquire “personal property” – Not ServicesNot Services – with – with Exchange/Sale proceedsExchange/Sale proceeds

• If exchange or sale doesn’t take place within time limit, If exchange or sale doesn’t take place within time limit, funds are lostfunds are lost

• Funds need to be accounted forFunds need to be accounted for

• Some record keeping requiredSome record keeping required


What About Aircraft Parts?What About Aircraft Parts?

Note: Note: There are Special Requirements There are Special Requirements for Disposing of:for Disposing of:Flight Safety Critical Aircraft Parts Flight Safety Critical Aircraft Parts (FSCAP) and Life-Limited Parts(FSCAP) and Life-Limited Parts See The Decision Tables at FMR See The Decision Tables at FMR 102-33.370102-33.370(Management of Government (Management of Government Aircraft; final Rule)Aircraft; final Rule)


Remember…Remember…

The Exchange / Sale Authority can be used for all The Exchange / Sale Authority can be used for all eligible personal property. (See FMR 102-39)eligible personal property. (See FMR 102-39)

If the property requires a waiver, obtain the waiver If the property requires a waiver, obtain the waiver before proceedingbefore proceeding



What Regulations Govern Exchange / Sale Authority?What Regulations Govern Exchange / Sale Authority?

United States Code:United States Code:

• 40 USC 503 contains the authority40 USC 503 contains the authority

Implementing Regulations:Implementing Regulations:

• FMR 102-39 FMR 102-39 Replacement of Personal Property Replacement of Personal Property Pursuant to the Exchange/Sale AuthorityPursuant to the Exchange/Sale Authority

• FMR 102-33 Management of Government AircraftFMR 102-33 Management of Government Aircraft


Do I Need Legal Office Approval?Do I Need Legal Office Approval?

It is highly recommended that you seek the advice It is highly recommended that you seek the advice of your Office of General Counsel prior to of your Office of General Counsel prior to conducting an Exchange/Sale. This will protect conducting an Exchange/Sale. This will protect you & insure compliance with lawyou & insure compliance with law GSA has much experience in Exchange/Sale and GSA has much experience in Exchange/Sale and ultimately makes the interpretation of 40 USC 503 ultimately makes the interpretation of 40 USC 503 contained in FMR 102-39 & FMR 102-33contained in FMR 102-39 & FMR 102-33


Where Can I Get Assistance?Where Can I Get Assistance?

Personal Property Policy:[email protected]@gsa.gov

Aircraft Policy:www.gsa.gov/aircraftpolicywww.gsa.gov/aircraftpolicy

Motor Vehicle Policy:Motor Vehicle Policy:[email protected]@GSA.Gov

Questions?Questions?


The EndThe End

Remember to use Exchange/Sale authority to offset the Remember to use Exchange/Sale authority to offset the cost of replacement personal propertycost of replacement personal property

Documents

GSA Office of Government-wide Policy Using Exchange / Sale Authority Authority