AUTHORITY: Implementing Section 2 of "AN ACT in relation to the receipt and disbursement of funds and commodities made available by the federal government" (Ill. Rev. Stat. 1981, ch. 127, par. 176c) and implementing and authorized by "AN ACT to create and establish a State Agency for Federal Surplus Property, to prescribe its powers, duties and functions" (Ill. Rev. Stat. 1981, ch. 127, pars. 176d1 et seq.).

SOURCE: Adopted at 7 Ill. Reg. 15544, effective November 8, 1983; codified at 8 Ill. Reg. 15361; recodified Title of the Part at 39 Ill. Reg. 5903.

SUBPART A: GENERAL

 

Section 5020.100  Authority

 

These rules are promulgated under authority of Illinois Revised Statutes, 1981, Chapter 127, paragraphs 176c, 176d1, 176d2, 176d3, 176d4, and in accordance with regulations set forth in 41 CFR 101-44 (February 1980), as revised to conform with Public Law 94-519.

 

Section 5020.110  Policy

 

a)         The State Agency for Federal Surplus  Property (SASP), administered by the Department of Central Management Services, shall regulate the accountability, and control of all personal property acquired from the United States of America under and in conformance with the provisions of paragraph (j) of Section 203 of the Federal Property of Administrative Services Act of 1949, as amended (40 U.S.C.A. 484, February 1980).

 

b)         The Department shall regulate the distribution of Federal property to eligible recipients within the State of Illinois.

 

c)         Representatives of the Department shall visit United States Government installations to select from property that is available for donation.

 

d)         The Department shall monitor the use of property acquired by eligible recipients for the duration of the restriction period as further defined in Section 5020.400 of this Part.

 

e)         A service charge shall be assessed eligible recipients for the acquisition of Federal surplus property.

 

f)         These functions shall be carried out by the Department of Central Management Services Federal Surplus Property Division.

 

Section 5020.120  Applicability

 

a)         This Part applies to any activity of the Department of Central Management Services pertaining to the acquisition, accountability, control, and distribution of all tangible personal property acquired by the State of Illinois through the Federal Donation Program (41 CFR 101-44, February 1980).

 

b)         This Part applies to all Eligible Recipients.  For the purposes of these rules, the term "Eligible Recipients" means and includes the following:

 

1)         Public Agencies

 

A)        States, their departments, divisions, and other instrumentalities.

 

B)        Political sub-divisions of States, including cities, counties, and other local governmental units and economic-development districts.

 

C)        Instrumentalities created by compact or agreements between States or political sub-divisions.

 

D)        Indian tribes, bands, groups, pueblos, or communities located on State reservations.

 

E)        Volunteer fire districts and/or departments.

 

F)         Programs for the elderly.

 

G)        Food banks.

 

2)         Non-Profit Educational and Public Health Activities

 

A)        Medical institutions, hospitals, clinics, and health centers.

 

B)        Schools, colleges and universities.

 

C)        Child care centers.

 

D)        Educational radio and TV stations.

 

E)        Museums.

 

F)         Libraries.

 

G)        Nursing homes.

 

H)        Programs for the elderly.

 

I)         Food banks.

 

c)         These rules apply to all tangible personal property acquired by the Department from the United States Government.

SUBPART B: ELIGIBILITY AND RESPONSIBILITY

 

Section 5020.200  Determination of Eligible Recipients

 

a)         The following organizations shall be eligible to become recipients of Federal Surplus property:

 

1)         State Agencies, Officers and Executive Code Departments.

 

2)         Municipalities and Other Units of Local Government.

 

3)         Private, Non-Profit, Tax Exempt Organizations.

 

b)         Each organization seeking to become a recipient shall be required to file with SASP.

 

1)         The organization's name, address and telephone number.

 

2)         The name and title of the organization's chief executive officer.

 

3)         A description of the organization outlining the type of organization; and the details and scope of its programs and activities.

 

4)         When items available are insufficient to fill all requests, the SASP shall request additional information to determine the requesting organizations' relative income and expenses.

 

5)         If the applicant is a private tax exempt organization, an official certificate issued by the Internal Revenue Service stating that the organization has tax exempt status under Section 501(c)(3) of the Internal Revenue Code of 1954. (26 U.S.C 501).

 

6)         An "Application Certification and Agreement" form, signed by the recipients chief executive officer, accepting the terms and conditions under which surplus property shall be transferred.

 

7)         A duly executed authorization from the executive head of the applying organization giving one or more persons the power to act as agents for the applicant.

 

8)         A completed "Assurance of Compliance" form indicating that the applicant is in compliance with the civil rights and non-discriminatory regulations off the Federal General Services Administration.

 

9)         A list of the types of equipment, vehicles, supplies and machines the applicant desires to receive.

 

10)         Proof that the organization is approved, accredited or licensed by a body with statutory or administrative authority to issue such approval, accreditation, or license.

 

c)         All organizations submitting applications shall submit all additional information, documentation or proof required by SASP to process applications.

 

d)         All necessary application forms shall be provided by the SASP.

 

e)         After a completed application is submitted, the SASP shall evaluate the prospective recipient and notify the organization if it is accepted or rejected.  Prospective recipients shall only be disqualified if they do not meet the requirements listed under subsections (a) and (b) above. Prospective recipients shall have the right to appeal such rejection to the General Services Administration of the United States Government pursuant to 41 CFR 101-44.202(c)(9) (February 1980).

 

f)         All approvals of eligibility shall be reviewed after three years or as required to determine continued eligibility status.

 

Section 5020.210  Authorized Representative File

 

Recipients without an authorization letter on file shall receive authorization when they provide a letter of official authorization.

 

Section 5020.220  Notice to the Public of SASP Activities

 

a)         The SASP shall meet periodically with both public and private non-profit recipients to discuss the SASP'S policy, procedure and programs.

 

b)         The SASP shall also publish a bulletin or newsletter at regular intervals, publicizing the SASP offerings and programs, for distribution to recipients.

 

c)         The SASP shall actively seek opportunities to contact prospective recipients and encourage them to participate in the surplus property program.

 

Section 5020.230  Cooperative Agreements

 

When the SASP feels that it is advantageous to do so the SASP shall enter into cooperative agreements with recipients, other State governments and Federal agencies, when such cooperative agreements will increase the fair and equitable distribution of Federal property.

SUBPART C: DISTRIBUTION OF FEDERAL SURPLUS PROPERTY

 

Section 5020.300  Distribution of Surplus Property

 

a)         The SASP shall make property available to eligible recipients  on a fair and equitable basis.

 

b)         The following factors shall be considered in distributing property:

 

1)         Relative needs.

 

2)         Relative resources.

 

3)         Ability to utilize the property.

 

c)         A recipient's relative needs shall be evaluated by determining:

 

1)         Size and type of program conducted.

 

2)         Contemplated use and frequency of use.

 

3)         Critical or urgent need.

 

4)         Geographical location (i.e. urban, suburban, rural).

 

5)         Interest and expression of need on the part of the recipient in property available.

 

d)         A recipient's relative resources shall be evaluated by determining:

 

1)         Funding sources.

 

2)         Availability of funds.

 

3)         Availability of equipment.

 

e)         A recipient's ability to  utilize surplus property shall be evaluated by determining:

 

1)         Length of time of property's contemplated usage.

 

2)         The time when property can be put into use.

 

3)         Availability of funds to repair or maintain property in use.

 

4)         Recipient's ability to select and remove property from the Surplus Distribution Center in a timely manner.

 

5)         Type and quality of property previously received by recipient.

 

Section 5020.310  Distribution of Major Items

 

a)         To insure that recipients located some distance away from the Surplus Distribution Center receive their fair share of the major items of surplus distributed, such recipients may submit a "want list" to the SASP.

 

b)         Items which may be requested on such lists include, but are not limited to:

 

1)         Vehicles.

 

2)         Materials handling equipment.

 

3)         Machine tools.

 

4)         Generators.

 

5)         Air compressors.

 

6)         Business machines.

 

7)         Boats.

 

8)         Aircraft.

 

9)         Items of electronic or scientific equipment.

 

c)         If required by the Federal General Services Administration, the recipient shall be required to provide a letter of intent to the Federal Surplus Property Section, Administrative Office.

 

Section 5020.320  Distribution of Small Items

 

a)         Small miscellaneous items such as nuts, bolts and washers shall be available to recipients to select and pick up at the SASP warehouse or other designated sites.

 

b)         The quantity distributed to any one donee may be limited depending on the total quantity on hand.

 

Section 5020.330  Preference Given to Disaster Victims

 

a)         Recipients who experience a local disaster or loss of property due to fire, floods, tornadoes or other causes shall be given temporary priority during the emergency conditions for all requested surplus property.

 

b)         The SASP shall make a special effort to locate and distribute surplus property to such recipients.

 

Section 5020.340  Competing Requests For Surplus Property

 

a)         When one or more potential recipients requests the same item of surplus property, the SASP shall award the item after considering each recipient's need, resources and ability to utilize.

 

b)         The decision of the SASP in such awards shall be final.

SUBPART D: TRANSFERABLE PROPERTY

 

Section 5020.400  Conditions Placed on the Transfer of Surplus Property

 

a)         The SASP shall require as a condition of transfer:

 

1)         That all items donated with an acquisition cost of $3000 or less must be placed into use within one year of donation.

 

2)         That all items donated with an acquisition cost of $3000 or less must be used for one year after being placed in use or otherwise returned to the SASP.

 

b)         The SASP shall impose any additional conditions involving special handling or use limitations on specific types or items of surplus property when it is directed to do so by the Federal General Services Administration.

 

c)         The SASP may impose any other conditions or restrictions on the transfer or use of items or types of surplus property that it deems necessary in specific situations.  Such conditions or restrictions shall be based upon the type of property, the type of donee, and the needs of the donee for the property.

 

d)         All terms, conditions, reservations and restrictions governing the transfer of surplus property shall be printed on the reverse side of each the SASP invoice.

 

Section 5020.410  Special Conditions on Transfer of Motor Vehicles

 

a)         All passenger motor vehicles donated shall be placed into use within one year of donation.

 

b)         All passenger motor vehicles donated must be used for eighteen months after being placed in use or otherwise returned to the SASP.

 

c)         Combat Type Aircraft:

 

1)         All combat type aircraft are subject to permanent restrictions imposed by the Federal Government Pursuant to 41 CFR 101-44.108-2(b) (February 1980).

 

2)         Combat type aircraft are also subject to all terms and restrictions contained in the "Conditional Transfer Document" form (41 CFR 101-44.108-2, February 1980).

 

d)         Non-Combat Type Aircraft

 

1)         All non-combat type aircraft having a unit acquisition cost of $3000 or more are subject to permanent instructions imposed by the Federal government on their use, transfer and disposal for five years from the date the aircraft is put into use (41 CFR 101-44.108-9, February 1980).

 

2)         All non-combat type aircraft are subject to the terms and restrictions contained in the "Conditional Transfer Document" form (41 CFR 101-44.108-2, February 1980).

 

e)         Ships and boats 50 or more feet in length:

 

1)         All ships and boats having a unit acquisition cost of $3,000 or more are subject to restrictions on their use, transfer or disposal for five years from the date they are placed in use.

 

2)         All ships and boats are subject to the terms and conditions listed on the "Conditional Transfer Document" form.

 

Section 5020.420  Restrictions on Surplus Property Other Than Motor Vehicles

 

Surplus property, other than motor vehicles, having an acquisition cost of $3,000 or more is subject to restrictions on its use,  transfer and disposal for eighteen months from the date the property is placed in service (41 CFR 101-44.202(c)(6), February 1980).

 

Section 5020.430  Waiver of Conditions or Restrictions

 

a)         The SASP shall amend, modify or grant release of any term, condition, reservation or restriction the SASP has imposed on the transfer, use or disposal of surplus property when:

 

1)         The conditions which make the waiver necessary include but are not limited to  the type of equipment, the condition of equipment, that which is in the best interest of the public welfare, health and safety of the donee organization; and

 

2)         the conditions which make the waiver necessary have been reduced to writing; and

 

3)         the conditions which make the waiver necessary have received Federal General Services' Administration's approval.

 

b)         The SASP may reduce the restriction periods on motor vehicles subject to federal approval, or items of surplus property having a unit acquisition cost of $3,000 or more when the SASP feels good and sufficient reason is present.  Good and sufficient reasons shall include, but are not limited to, condition of the property and proposed use (i.e. secondary, cannibalization).

 

c)         The SASP shall not grant recipients release from any Federal regulation or law unless specifically authorized by Federal regulation or law to do so.  The Department of Central Management Services shall base its decision on whether to grant a recipient release from any Federal regulation or law according to the standards in, and provisions of, 41 CFR 101-44.202(c)(6) and 41 CFR 101-44.208(q) and (h), (February 1980).

 

Section 5020.440  Issue Document

 

a)         A recipient shall not be issued any surplus property until an invoice and receipt for the property has been signed by an authorized representative, as noted in the authorized representative file, of the recipient.

 

b)         A copy of each invoice and receipt shall be filed in the recipients' file by the SASP.

 

            Recipients' files shall contain copies of invoices and receipts for all property issued to that recipient.

SUBPART E: IMPLEMENTATION OF SERVICE CHARGES

 

Section 5020.500  Service Charges

 

a)         The SASP shall be financed through the assessment of a service charge on all surplus property distributed.

 

b)

1)         The service charge shall be assessed at a rate to cover all costs involved in acquiring and distributing surplus property.  In determining what is fair and equitable charge, the SASP shall consider the criteria set forth in Section 5.10 of these rules.

 

2)         The service charges shall be fair and equitable in relation to the service performed.  Emphasis shall be placed on keeping the service charge to a minimum while providing optimum service and maintaining the SASP activity on a sound financial basis.

 

Section 5020.510  Criteria Used to Set Service Charges

 

a)         Total service charges collected shall be based on the pro rated expenses incurred annually by the SASP.  Such costs include, but are not limited to charges for:

 

1)         Personnel,

 

2)         Transportation,

 

3)         Utilities,

 

4)         Fuels,

 

5)         Telephone service,

 

6)         Warehousing and storage,

 

7)         Insurance,

 

8)         Printing,

 

9)         Office supplies,

 

10)         Travel expenses,

 

b)         The criteria used to establish service charges on specific pieces of surplus property shall include:

 

1)         Original acquisition cost,

 

2)         Present value,

 

3)         Screening cost,

 

4)         Quantity,

 

5)         Condition,

 

6)         Transportation cost from the holding agency,

 

7)         Loading and unloading costs,

 

8)         Packing and/or crating,

 

9)         Administrative cost,

 

10)         Repair and rehabilitation necessary,

 

11)         Utilization and compliance inspection necessary,

 

12)         Delivery to recipient, if necessary.

 

c)         Special or extraordinary costs may be added to the service charge when:

 

1)         Property requires extensive rehabilitation.

 

2)         Property requires transportation from an overseas location.

 

3)         Property requires long haul transportation.

 

4)         Property requires unusual and extensive packing or screening.

 

5)         Property is subject to long term restrictions.

 

d)         All special or extraordinary costs listed in the preceding section shall be discussed with the recipient before final shipping.

 

Section 5020.520  Reduction of Service Charge

 

At any point when audits reveal a surplus of working capital, the SASP shall reduce service charges until a balance between costs and income is achieved.

SUBPART F: AUDITING AND COMPLIANCE REQUIREMENTS

 

Section 5020.600  Compliance Inspection

 

a)         The SASP shall conduct a regular program of inspection to insure that recipients are utilizing Federal property in the correct manner and are used in compliance with applicable Federal standards, guidelines or restrictions pursuant to 41 CFR 110-44.202 (c)(10) (February 1980). Inspections shall be conducted on a random basis.

 

b)         Such inspections shall survey a minimum of 10% of all property subject to 18 month restrictions distributed during the preceding year which are subject to 18 month restrictions pursuant to 41 CFR 110-44.202 (c)(10) (February 1980).

 

c)         A report shall be prepared by the SASP summarizing the results of these investigations, including:

 

1)         The names of all recipients visited.

 

2)         A list of property inspected.

 

3)         Any violations discovered.

 

4)         Any corrective actions taken.

 

d)         A copy of all inspection reports shall be made available to the Federal General Services Administration, the Illinois Department of Law Enforcement and any other law enforcement agency having jurisdiction over the subject where the report is in question.

 

Section 5020.610  Return of Donated Property

 

a)         In the event that the SASP determines that a recipient has not put an item of surplus property into use within one year of the receipt of the property or has not  used the property in accordance with any special restrictions that might pertain to that surplus property, the SASP shall instruct the recipient to:

 

1)         Return the surplus property to the SASP warehouse at the recipient's expense.

 

2)         Retransfer the property to another recipient, SASP, or to a Federal agency.

 

b)         To avoid unnecessary returns of surplus property the SASP shall insure that all recipients are made adequately aware of any use requirements and restrictions applying to property they are issued by advising the recipient that all restrictions are listed on the back of the invoice.

 

Section 5020.620  Non-Utilized Surplus Property

 

a)         All property which has been in the possession of the SASP for 18 months which has not been distributed to eligible recipients shall be reported to the Federal General Services Adminstration.

 

b)         Upon receiving authorization from the Federal General Services Administration, the SASP shall proceed to dispose of the property as directed by the Federal General Services Administration, by:

 

1)         Transferring the property to another SASP or a Federal agency.

 

2)         Disposing of the property at public sale.

 

3)         Abandoning or destroying the property.

 

c)         In the event that the SASP is instructed to dispose of surplus property by transferring it to another agency or selling it, the SASP shall seek reimbursement for its costs in doing so, as instructed by the Federal General Services Administration.

 

Section 5020.630  Report of Fraud or Misuse of Surplus Property

 

Where the SASP uncovers evidence that there has been fraud in acquiring surplus property or misuse of surplus property,  the SASP shall conduct a preliminary investigation to determine if a formal investigation is necessary.  A formal investigation shall be requested if the preliminary investigation fails to resolve questions on the use of the property or indicates a possible criminal violation.  Where there is need for formal investigation the SASP shall notify and cooperate with the Illinois Department of Law Enforcement, the FBI and the Federal General Services Adminstration.