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B-169903 1 (1970-07-27)

handle is hein.gao/gaobacgdz0001 and id is 1 raw text is: RESTRICTED - Not to be re~eased outside the General 4-// lof 34 Accounting OCflce except on the basis of specific approval by the PC*,, of Lo zit,1CVO LUalson, a record of which is kept727-e COMPTROLLER GENERAL OF THE UNITED TATES WASHINGTON, D.C. 2048 B-169903 B-16903JUL 2 7 170 Dear Mr. Chairman: In response to your letter dated May 19, 1970, and as agreed in discussions with Mr. Miles Romney of your staff, we have examined into the administration of a March 1970 sale of personal propertybvthe bearh Lar ron- mental Science Services Administration (SSA ,)1 D.partment of Colrnerce, under theexchageisale authority... Specifically, you requested that we determine whether any law was violated in the March 1970 transaction by the Laboratories, ascertain the justification for carrying out the sale, and determine the role of the General Services Administration (GSA) in this type of transaction. Pre- liminary findings were reported informally to your staff by July 1, 1970, as requested. The results of our review are presented in more detail in the en- closure to tis letter. The exchange/sale authority was established by section 201(c) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 481(c)). Policies and methods governing the use by executive agencies of the exchange/sale authority are contained in part 101-46 of title 41 of the Code of Federal Regulations. Our examination revealed that several violations of the act and the Code occurred in the March 1970 e-cchr.age/sale trarsaction by the Laboratories. These violations are discusseo in more detail in the enclosure and are summa- rized as follows: (1) excess property was included in the sale, (2) the Laboratories did not intend to acquire similar items for all those sold, (3) property was sold that had not been utilized by ESSA before the sale, (4) nine items of equipment listed in a new or unused condition were sold, (5) ESSA did not screen Federal agencies outside 'he Department of Commerce known to use or distribute such property, and (6) no written administrative determination was prepared to apply the proceeds of sale toward acquiring property. With regard to the Laboratories' justification for conducting this sale, the use of the exchange/sale in this transaction is related to the Laboratories' attempt to establish an equipment rental service pool. Proceeds from the sale were to be used to supplement other funds available for acquiring property for the pool. The Laboratories' Chief of the Supply and Field Engineering Branch (Prop- erty Management Officer) advised us that he was responsible for the decision to proceed with the sale under the exchange/sale authority. The ESSA Deputy

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