41 C.F.R. Subpart 101–26.3—Procurement of GSA Stock Items
Title 41 - Public Contracts and Property Management
This subpart prescribes policy and procedures governing the procurement by agencies of items of supply stocked by GSA, including reporting and obtaining adjustments for overages, shortages, and damages and the issue of used, repaired, and rehabilitated items in serviceable condition. [35 FR 12721, Aug. 11, 1970] All executive agencies within the United States (including Hawaii and Alaska), in order to maximize the use of the Government's centralized supply system, shall requisition GSA stock items in accordance with the following: (a) When the requirement is for Standard and optional forms, an item produced by the Federal Prison Industries, Inc. (FPI), or an item listed in the procurement list published by the Committee for Purchase from the Blind and Other Severely Handicapped (NIB-NISH), the dollar thresholds and language indicated in paragraph (b) of this section are not applicable and acquisition of such items continues to be as set forth in the applicable sections of the Federal Acquisition Regulation, Federal Property Management Regulations and other appropriate regulations. In order to identify FPI/NIB-NISH items stocked by GSA, they are marked with an asterisk in the GSA Supply Catalog NSN index, (b) GSA will process all requisitions for stock items, regardless of total line item value, from activities electing to purchase from GSA. If an agency determines that alternative sources are more favorable, the following guidelines shall apply. However, the price alone of an item without other substantive consideration will not be considered as sufficient justification to use alternative sources. (These guidelines also apply to the procurement of special order program (SOP) established source, see §101–26.102–1.) (1) When the total value of the line item requirement is less than $100, procurement from other sources is authorized. (2) When the total value of the line item requirement is $100 or more, but less than $5,000, procurement from other sources is authorized: provided, that a written justification shall be prepared and placed in the purchase file stating that such action is judged to be in the best interest of the Government in terms of the combination of quality, timeliness, and cost that best meets the requirement. Cost comparisons shall include the agency administrative cost to effect a local purchase. (3) For total line item requirements of $5,000 and over, agencies shall submit a requisition to GSA unless a waiver has been approved by GSA. Request for waivers shall be submitted in accordance with §101–26.100–2. (c) Agencies shall not divide requisitions to avoid higher threshold documentation requirements. (d) In authorizing procurements in accordance with paragraph (b)(2) of this section, agencies shall reimburse GSA for any cost arising out of breach of a GSA contract, where sufficient justification is not documented in their procurement files. [56 FR 12457, Mar. 26, 1991] (a) Agencies required to requisition, exclusively, items listed in the GSA Supply Catalog shall utilize such items in lieu of procuring similar items from other sources when the GSA items will adequately serve the required functional end-use purpose. (b) When an agency determines that items available from GSA stock will not serve the required functional end-use purpose of the item proposed to be procured, a request to waive the requirement to use this source shall be submitted to GSA for consideration in accordance with the provisions of §101–26.100–2. [36 FR 17424, Aug. 31, 1971, as amended at 38 FR 28566, Oct. 15, 1973] Stock items returned to GSA under the provisions of subpart 101–27.5 will be reissued to all requisitioning activities without distinction between new, used, repaired, or rehabilitated items in serviceable condition. Requisitioning agencies will be billed for these items at the current GSA selling price. [38 FR 28566, Oct. 15, 1973] Agencies shall obtain Standard and optional forms by requisitioning them from GSA (FSS) unless the forms have been approved by GSA (KMPS) to be stocked and distributed by the promulgating agency or to be reproduced locally. Assistance or information on the forms management program may be obtained by contacting GSA (KMPS), Washington, DC 20405. (See part 201–45, subpart 201–45.5 of this chapter.) (a) For purposes of economy, existing stocks are depleted prior to issuance of revisions unless the promulgating agency determines previous editions unusable and obsolete. (b) Forms or form assemblies which deviate from the standard and optional forms listed in the GSA Supply Catalog have restricted use and are not stocked. Agencies requiring such forms shall prepare and transmit a Standard Form 1, Printing and Binding Requisition, or Standard Form 1–C, Printing and Binding Requisition for Specialty Items, to the General Services Administration, Federal Supply Service (FCNI), Washington, DC 20406, for review and submission to GPO. Prior approval of GSA (KMPS) is required whenever the content or construction of a form is altered or modified. Requests for such exceptions may be obtained by submission of a SF 152, Requests for Clearance of a Standard or Optional Form or Exception, to GSA (KMPS), with appropriate justification. (c) Certain standard forms are serially numbered and are to be accounted for to prevent possible fraudulent use. The General Accounting Office (GAO) requires accurate accountability records to be maintained for such items by applicable agencies. GSA forwards a receipt verification card with each shipment of accountable forms. The receiving agency is responsible for verifying receipt of the serially numbered forms in the shipment by returning the card to the address preprinted on the card. See §101–41.308 of this chapter for information governing agency control and disposition of unused U.S. Government Bills of Lading (GBL's). (d) Standard and optional forms which are excess to the needs of an agency shall be reported to GSA in the same manner as other excess personal property pursuant to part 101–43 of this chapter. Obsolete forms shall be disposed of under the provisions of part 101–45 of this chapter. [56 FR 12457, Mar. 26, 1991] Generally, it is more advantageous to agencies if GSA backorders requisitions for out-of-stock items rather than cancels requisitions. Unless notified by agencies not to backorder a requisition, through FEDSTRIP advice codes 2C or 2J, a back order will be established. The agency will be notified of the estimated date that shipment will be made. Upon receipt of the status transaction, the agency shall determine if the estimated shipping date will meet its needs and, as appropriate: (a) Accept the back order, (b) request a suitable substitute item, or (c) request cancellation in accordance with §101–26.309. [43 FR 22210, May 24, 1978] In supplying items requisitioned from GSA stock, GSA may substitute items with similar characteristics. Substitute items may be issued from new stock or from returned stock that is in serviceable condition (condition code A) as described in §101–27.503–1. A notice of intent to substitute will be provided to the ordering activity only if the characteristics of the substitute item differ substantially from the characteristics of the item requisitioned. Ordering activities may prevent substitution by entering advice code 2B (do not substitute) or 2J (do not substitute or backorder) in cc 65–66 of requisitions. [45 FR 27764, Apr. 24, 1980] (a) Orders shall be submitted in accordance with the instructions in the FEDSTRIP Operating Guide (FPMR 101–26.2). (b) Orders in other than FEDSTRIP format shall be submitted: (1) In original only when for shipment to destinations in the United States, including Hawaii but excluding Alaska. (2) In accordance with applicable GSA/agency agreements when for shipment to Alaska or for export to destinations outside the United States. (c) Sufficient funds should be reserved by the requisitioner to cover expenses incurred by GSA in export packing, marking, documentation, etc. GSA will assess a surcharge on all material ordered and delivered to customers in certain overseas areas. The surcharge is a percentage factor of the value of the material shipped. Information on the specific areas and the current percentage of surcharge is included in the GSA Handbook, Discrepancies or Deficiencies in GSA or DOD Shipments, Material, or Billings (FPMR 101–26.8). The surcharge is a percentage factor of the value of the material shipped. Information on the current percentage of surcharge may be obtained from the GSA regional office to which orders are submitted. [30 FR 13826, Oct. 30, 1965, as amended at 42 FR 58748, Nov. 11, 1977; 42 FR 61597, Dec. 6, 1977] In preparing requisitions for GSA stock items, agencies shall follow schedules or cyclical plans for replenishment of stocks so as to reduce the number of repetitive requisitions required while adjusting ordering frequency to comply with the economic order quantity principle. (See §101–27.102.) [43 FR 22211, May 24, 1978] (a) Transportation-type discrepancies shall be processed in accordance with the instructions in subpart 101–40.7 when the discrepancies are the fault of the carrier and occur while the shipments are in the possession of: (1) International ocean or air carriers, regardless of who pays the transportation charges, except when shipment is on a through Government bill of lading (TGBL) or is made through the Defense Transportation System (DTS) (Discrepancies in shipments on a TGBL or which occur while in the DTS shall be reported as prescribed in subpart 101–26.8.); or (2) Carriers within the continental United States, when other than GSA or DOD pays the transportation charges. (b) Reporting discrepancies or deficiencies in material or shipments and processing requests for or documenting adjustments in billings from or directed by GSA activities shall be in accordance with the provisions of subpart 101–26.8. [41 FR 56320, Dec. 28, 1976] Each agency head, after taking actions prescribed in §101–25.302–2, shall determine agency requirements for filing cabinets. When additional filing cabinets are required, requisitions shall be submitted in FEDSTRIP format to the GSA region supporting the geographic area in which the requisitioning agency is located. [43 FR 22211, May 24, 1978] When an agency determines that material ordered from GSA is not required, GSA will accept requests for cancellation as long as the items ordered have not been shipped. However, since processing cancellations is costly and interferes with normal order processing, agencies are cautioned to use discretion in requesting cancellation of low dollar value orders. Cancellation of orders may be accomplished by agencies through written, telegraphic, or telephonic communication with the GSA regional office to which the order was sent. However, telephonic communication should be used whenever feasible to forestall shipment of material and subsequent billing by GSA. If material has been shipped, GSA will advise that cancellation cannot be effected and agency requests for return for credit will be processed under the provisions of §§101–26.310 and 101–26.311. [32 FR 11163, Aug. 1, 1967] In accordance with the provisions of this §101–26.310, GSA may authorize agencies to return for credit material that has been ordered in error by the agency. Material shipped in error by GSA is subject to the provisions of the GSA Handbook, Discrepancies or Deficiencies in GSA or DOD Shipments, Material, or Billings (FPMR 101–26.8). Credit for material ordered in error will be based on the selling price billed the agency at the time shipment was made to the agency, with the adjustment reflected in current or future billings. Material shall not be returned until appropriate documentation is received from GSA. (a) The return of material by an agency, to correct ordering errors, may be authorized and later accepted by GSA: Provided, (1) The value of the material exceeds $25 per line item based on the selling price billed the customer. (2) Authorization to return is requested from the GSA Discrepancy Reports Center (6FRB), 1500 East Bannister Road, Kansas City, MO 64131 within 45 calendar days (60 calendar days for overseas points) after receipt of shipment. Requests should always contain a complete explanation of reason(s) for return of the material. Exceptions may be granted on a case-by-case basis when GSA is in need of the material and extenuating circumstances precluded earlier submission of the request. (3) Each item is in “like-new” condition and is identified by a stock number in the current edition of the GSA Supply Catalog. (4) Each item is identified with a specific purchase order or requisition number. (5) The condition of the material is acceptable on inspection by GSA. When it is not acceptable, disposition, without credit, will be made by GSA. However, when the condition is attributable to carrier negligence, subsequent credit allowed by GSA will be reduced by the amount to be paid the agency by the carrier for damages incurred. (6) The merchandise to be returned will not adversely affect the GSA nationwide inventory situation. (7) The return transportation costs are not excessive in relation to the cost of the material. (b) Transportation costs on material specifically authorized for return by a GSA regional office will be paid by the customer activity. Claims against carriers for discrepancies in shipment will also be the responsibility of the customer activity in accordance with the provisions of subpart 101–40.7. When appropriate, GSA will prepare initial documentation to support claim actions. [35 FR 181, Jan. 6, 1970, as amended at 38 FR 28567, Oct. 15, 1973; 42 FR 58748, Nov. 11, 1977; 50 FR 42021, Oct. 17, 1985] (a) At the request of the ordering agency, GSA may authorize diversion or return for credit of any shipment consigned to an overseas destination which, while en route, cannot be continued onward for any reason and for which the consignee or requisitioning agency cannot provide diversion instructions: Provided, The frustration occurs at a water or air terminal and title to the material has not passed from the Government. Frustrated shipments located outside the United States are the responsibility of the consignee or ordering agency. However, GSA will assist the agency whenever possible in disposing of the material when it cannot be utilized by the overseas control area of the agency, e.g., oversea command or AID area. (b) Requests to GSA for disposition instructions shall be directed to the GSA office which made the shipment. Data provided by the agency shall include the original requisition document number, purchase order number (if any), supplementary addresses, and present location of the frustrated shipment. In addition, the agency should furnish the Government bill of lading number or commercial bill of lading reference, and the carrier's freight or waybill number. (c) GSA may direct disposition of such material through any of the means listed below. Disposition instructions will include a determination by GSA as to the responsibility for payment of transportation costs. (1) Shipment of material to another consignee. (2) Temporary storage pending further instructions. (3) Return to GSA stock. (4) Disposal by agency. (5) Disposition through other means if deemed to be in the best interest of the Government. (d) GSA will provide required documentation to accomplish the desired action and will, if appropriate, initiate necessary adjustments in billing. (e) Frustrated shipments involving other than GSA stock items will be treated in a manner similar to that prescribed in this §101–26.311 on a case by case basis. [30 FR 11138, Aug. 28, 1965, as amended at 35 FR 12721, Aug. 11, 1970; 42 FR 58748, Nov. 11, 1977]
Title 41: Public Contracts and Property Management
PART 101–26—PROCUREMENT SOURCES AND PROGRAM
Subpart 101–26.3—Procurement of GSA Stock Items
§ 101-26.300 Scope of subpart.
§ 101-26.301 Applicability.
§ 101-26.301-1 Similar items.
§ 101-26.301-2 Issue of used, repaired, and rehabilitated items in serviceable condition.
§ 101-26.302 Standard and optional forms.
§ 101-26.303 Out-of-stock items.
§ 101-26.304 Substitution policy.
§ 101-26.305 Submission of orders to GSA.
§ 101-26.306 Planned requisitioning for GSA stock items.
§ 101-26.307 Processing overages, shortages, and damages.
§ 101-26.308 Obtaining filing cabinets.
§ 101-26.309 Cancellation of orders for GSA stock items.
§ 101-26.310 Ordering errors.
§ 101-26.311 Frustrated shipments.
