other than warships are sold pursuant to the Federal Property Act (40 U.S.C. 484 (i) by the U.S. Maritime Commission if over 1500 gross tons and determined by the Maritime Commission to be merchant vessels or capable of conversion to merchant use. In certain cases, Navy vessels and other property may be transferred or otherwise made available to other agencies without reimbursement (sec. 616, 73 Stat. 381; 40 U.S.C. 483a). (b) This part sets forth the general procedures and authority with respect to the disposition of property under the control of the Department of the Navy except disposition of property to foreign governments under the authority of such statutes as the Aid to American Republics Act (54 Stat. 396; 22 U.S.C. 521) and the Mutual Defense Assistance Control Act of 1951 (65 Stat. 644; 22 U.S.C. 16111613c). (c) The Department of Defense Disposal Manual and directives issued by the Department of the Navy cover the disposition of all property of the Department, including disposition under the Federal Property Act. The Naval Supply Systems Command Manual (or, when issued, the Navy Personal Property Disposal Manual) and the Marine Corps Supply Manual contain information and operating instructions for the guidance of field personnel in disposing of personal property at Navy and Marine Corps installations, respectively. The Material Inspection Service Administration Manual (or, when issued, section XXIV of Navy Procurement Directives) contains similar information applicable to the disposition of contractor inventory. These publications are available for inspection at the Naval Material Command Headquarters, Washington, D.C.; at the offices of the Commandants of the several Naval Districts and River Commands; or at the several Navy and Marine Corps installations. [25 F.R. 4674, May 27, 1960, as amended at 25 F.R. 11066, Nov. 22, 1960; 35 F.R. 10007, June 18, 1970] § 736.2 Dispositions under contracts. (a) Contractor inventory (that is, personal property acquired by a contractor under terms vesting title in the Government but in excess of the amount required for performance of a contract) may be sold to the contractor or otherwise disposed of in accordance with the terms and conditions set forth in the contract and applicable Navy instructions. See also Parts 8 and 13 and §§ 30.2 and 30.3 of this title. (b) Industrial and plant equipment provided by the Government to a contractor for the performance of a contract may, subject to applicable statutory authority and Navy instructions be disposed of in accordance with the applicable contract terms and conditions. (c) Transfer to nonprofit education or research institutions of title to equipment purchased with funds available for grants or contracts for the conduct of basic or applied research is authorized by the act of September 6, 1958 (sec. 2, 72 Stat. 1793; 42 U.S.C. 1892) and implementing regulations (§§ 13.800 to 13.803 of this title). § 736.3 Sale of personal property. (a) The sale of personal property determined to be surplus or foreign excess or for exchange purposes is authorized by the Federal Property Act and regulations of the Administrator of General Services (see § 736.1(a)). Certain vessels stricken from the Naval Vessel Register may be sold under the act of August 10, 1956 (70A Stat. 451, 10 U.S.C. 7305). Sales generally will be under competitive bid procedures, but in exceptional circumtances, negotiated and other specialtype sales are authorized. Only those activities designated by the Department of Defense, the Office of Naval Material or delegated authority may conduct sales of surplus personal property. Such designated activities will effect the orderly and expeditious disposal by sale of Department of Defense surplus property within assigned geographical areas or for an assigned specialized category of surplus personal property. In the United States except Alaska and Hawaii, surplus personal property other than contractor inventory of the Department of Defense is now sold through Defense Surplus Sales Offices (DSSO's). The following is a list of the DSSO's and authorized naval selling activities: DSSO'S SERVING GEOGRAPHICAL AREAS Defense Surplus Sales Office, Defense Personal Support Center, 2800 South 20th Street, Building M5-E, Philadelphia, Pa. Defense Surplus Sales Office, Building 115, Naval Base, Gate 51, Portsmouth, R.I. Defense Surplus Sales Office, Atlanta Army Depot, Building 906, Forest Park, Ga. Defense Surplus Sales Office, Building 450, Naval Air Station, Jacksonville, Fla. Defense Surplus Sales Office, Building SDA224, South Annex, Norfolk International Terminal 7737 Hampton Boulevard, Norfolk, Va. Defense Surplus Sales Office, Building 27, Section 6, Defense Construction Supply Center, Columbus, Ohio. Defense Surplus Sales Office, Building 23, Fort Worth Federal Center, Forth Worth, Tex. Defense Surplus Sales Office, Building 2A, Defense Depot Ogden, Ogden, Utah. Defense Surplus Sales Office, Building 502, Naval Supply Center, Oakland, Calif. Defense Surplus Sales Office, 937 North Harbor Drive, San Diego, Calif. NAVAL SELLING ACTIVITIES U.S. Naval Station, Kodiak, Alaska. U.S. Naval Station, Argentia, Newfoundland. U.S. Naval Station, San Juan, P.R. U.S. Naval Supply Depot, Guam, Mariana Islands. U.S. Naval Supply Center, Pearl Harbor, U.S. Naval Support Activity, Naples, Italy. U.S. Naval Supply Depot, Sangley Point, Luzon, Republic of the Philippines. NAVAL ACTIVITIES AUTHORIZED TO SELL CONTRACTOR INVENTORY AT PRIVATE PLANTS Naval Plant Representative, Naval Plant Representative Office, Aerojet-General Corp., 1100 West Hollyvale Avenue, Azusa, Calif. 91702. Naval Plant Representative, Naval Plant Representative Office, Bendix Missile Systems Division, 400 South Beiger Street, Mishawaka, Ind. 46544. Naval Plant Representative, Naval Plant Representative Office, General Electric Co., Ordnance Department, 100 Plastic Avenue, Pittsfield, Mass. 01201. Naval Plant Representative, Naval Plant Representative Office, 1675 West Fifth Avenue, Post Office Box 1011, Pomona, Calif. 91766. Naval Plant Representative, Naval Plant Representative Office, Johns Hopkins University, Applied Physics Laboratory, 8621 Georgia Avenue, Silver Spring, Md. 20910. Naval Plant Representative, Naval Plant Representative Office, Lockheed Missile & Space Co., Post Office Box 504, Sunnyvale, Calif. 94088. Naval Plant Representative, Naval Plant Representative Office, Goodyear Aerospace Corp., Akron, Ohio 44305. Naval Plant Representative, Naval Plant Representative Office, Westinghouse Electric Corp., Post Office Box 746, Baltimore, Md. 21203. Naval Plant Representative, Naval Plant Representative Office, Grumman Aircraft Engineering Corp., Bethpage, Long Island, N.Y. 11714. Naval Plant Representative, Naval Plant Representative Office, Lockheed Aircraft Corp., Burbank, Calif. 91503. Naval Plant Representative, Naval Plant Rep resentative Office, Intercontinental Engine Services, RGV International Airport, Brownsville, Tex. 78520. Naval Plant Representative, Naval Plant Representative Office, North American Rockwell Corp., 4300 East Fifth Avenue, Columbus, Ohio 43216. Naval Plant Representative, Naval Plant Representative Office, LTV Aerospace Corp., Vought Aeronautics Division, Post Office Box 5907, Dallas. Tex. 75222. Naval Plant Representative, Naval Plant Representative Office, Sperry Gyroscope Co., Great Neck, Long Island, N.Y. 11020. Naval Plant Representative, Naval Plant Representative Office, Hayes International Corp., Dothan, Ala. 36301. Naval Plant Representative, Naval Plant Representative Office, United Aircraft Corp., Pratt & Whitney Aircraft Division, East Hartford, Conn. 06108. Naval Plant Representative, Naval Plant Representative Office, McDonnel Douglas Corp., Douglas Aircraft Co., Aircraft Division, Long Beach, Calif. 90801. Naval Plant Representative, Naval Plant Representative Office, The Boeing Co., Vertol Division, Post Office Box 16895, Morton, Pa. 19142. Naval Plant Representative, Naval Plant Representative Office, McDonnel Douglas Corp., Post Office Box 516, St. Louis, Mo. 63166. Naval Plant Representative, Naval Plant Representative Office, United Aircraft Corp., Sikorsky Aircraft Division, Stratford, Conn. 06497. Naval Plant Representative, Naval Plant Representative Office, Pratt & Whitney Aircraft, Florida Research and Development Center, West Palm Beach, Fla. 33401. Supervisor of Shipbuilding, Conversion and Repair, USN, General Dynamics Corp., Groton, Conn. 06340. (b) Sales by the activities listed in paragraph (a) of this section are by sealed bid, auction, spot bid or, under limited conditions prescribed by law, negotiated method. A deposit, generally 20 percent of the amount bid, is normally required of each bidder. Awards are usually made to the highest acceptable bidder. Normally property may not be removed from Government control until full payment is made. Arrangements must be made by the successful bidder to remove the property within the time limit prescribed in the invitation to bid or sales contract. The Government reserves the right to withdraw any property from sale when in the best interests of the Government. (1) The Department of Defense has a contact point for any person interested in purchasing surplus property from military installations within the United States except Alaska and Hawaii. The contact point is the Defense Sur plus Bidders Control Office, Defense Logistics Services Center, Federal Center Building, Battle Creek, Mich. This office maintains a single bidders list for all military departments. The list is arranged to show each person's buying interests, both geographically and with respect to categories of property. The categories of property (together with an application blank) are listed in a pamphlet "How To Buy Surplus Personal Property From The Department Of Defense," prepared by the Defense Logistics Services Center, Defense Supply Agency, Battle Creek, Mich. (2) Retail sales at fixed prices based on the current market value are conducted at certain military installations. (c) In foreign areas, property is sold as indicated in paragraphs (a) and (b) of this section; but such sales must conform to the foreign policy of the United States and also have no adverse effect on the economic conditions of the country in which the property is located. In addition, property in foreign areas is sold with the stipulation that it cannot be imported into the United States unless the Secretary of Agriculture (in the case of agricultural commodities, food, or cotton or woolen goods), or the Secretary of Commerce (in the case of any other property) has determined that the importation of such property would relieve domestic purchases or otherwise be beneficial to the economy of the United States. The major overseas commander may authorize the disposal of foreign excess property without competitive bids where such negotiated sale is most practicable and most advantageous to the Government because of the nature of the property, its location, and the potential market, or for other reasons. [25 F.R. 4674, May 27, 1960, as amended at 28 F.R. 692, Jan. 25, 1963; 35 F.R. 10007, June 18, 1970] § 736.4 Disposition of real property. (a) Real property, including related personal property, determined to be excess to the needs of the Department of Defense is subject to disposition under the Federal Property Act. In the States of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, Department of the Navy real property determined to be excess to the Department of Defense and not required for the needs and the discharge of the responsibilities of all Federal agencies, is generally disposed of by the General Services Administration as surplus property. Exceptions, however, are property worth less than $1,000; certain leases, permits, licenses, easements or similar interests; certain fixtures, structures, and improvements; and other special classes of property which, when determined to be surplus, are disposed of by the Commander, Naval Facilities Engineering Command, Field Division Directors, and District or Area Public Works Officers under authority delegated in Title II, Regulations of the General Services Administration, or under special delegations from the Administrator of General Services. (b) Outside the States of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, Department of the Navy real property determined to be excess to the Department of Defense is disposed of directly by the Commander, Naval Facilities Engineering Command, Field Division Directors, and District or Area Public Works Officers. (5 U.S.C. 301, 40 U.S.C. 471-514) [35 F.R. 10008, June 18, 1970] § 736.5 Disposition of real and personal property under special statutory authority. In addition to the authority to sell personal property to the general public and to transfer real property to the General Services Administration under the provisions of §§ 736.3 and 736.4, the Department of the Navy has further authority to dispose of personal and real property as described in paragraphs (a) through (h) of this section. (a) Disposition to other Government agencies. The Department of the Navy is authorized to transfer real and personal property to other governmental departments or agencies under statutes applicable to particular agencies, the act of March 4, 1915 (38 Stat. 1084) as amended (31 U.S.C. 686) and, as to certain personal property, under directives of the General Services Administration. (b) Leases. Real and personal property under the control of the Department of the Navy not excess to its needs and not for the time being required for public use may be leased, when the Secretary of the Navy shall deem it to be advantageous to the Government, to such lessee or lessees and upon such terms and conditions as in his judgment will promote the national defense or will be in the public interest. Such leases shall be for a period of not exceeding five years unless the Secretary determines that a longer period will promote the national defense or will be in the public interest. Such leases are authorized by the act of August 10, 1956 (70A Stat. 150; 10 U.S.C. 2667). Leases of Government-owned real property where the estimated annual rental is more than $50,000 must be deferred for 30 days after reporting the proposed transaction to the Armed Services Committees of Congress in accordance with the act of August 10, 1956 70A Stat. 147), as amended (10 U.S.C. 2662). (c) Disposition of strategic materials. Strategic materials may be disposed of by the Department of the Navy under the authority described in § 736.3 only when such property is excess to the needs of the Department of Defense and when the Director of the Office of Civil and Defense Mobilization (acting through the Defense Materials Service of the General Services Administration) determines that the amounts of such materials to be disposed of are so small as to make transfer thereof under the act of June 7, 1939 (53 Stat. 811) as amended (50 U.S.C. 98-98h) economically impractical, or such materials are not necessary for stockpile requirements determined in accordance with section 2 of said act. (d) Disposition of vessels. Vessels stricken from the Naval Vessel Register may be sold by the Department of the Navy under the authority and subject to the limitations of the Federal Property Act (section 203 (i), 63 Stat. 386, 40 U.S.C. 484(i)) and the act of August 10, 1956 (70A Stat. 451; 10 U.S.C. 7304, 7305, 7307) and Executive Order 10885 (25 F.R. 8471). However, pursuant to section 203 (i) of the Federal Property Act (40 U.S.C. 484 (i)), the U.S. Maritime Commission disposes of vessels, other than warships, if over 1,500 gross tons and determined by the Maritime Commission to be merchant vessels or capable of conversion to merchant use. Vessels may be sold for scrapping or for use under such authority or, if such sale is not feasible, the Naval Ship Systems Command may arrange for the demolition of a vessel and sale of the resulting materials by an authorized selling activity as set forth in § 736.3. (e) Exchange or sale of property for replacement purposes. Under the authority of section 201(c) of the Federal Property Act (40 U.S.C. 481(c)) and regulations of the General Services Administration, the Department of the Navy is authorized in the procurement of new equipment, to exchange or sell similar items which are not excess to its needs, and apply the exchange allowance or proceeds of sale in whole or part payment for the items procured. (f) Donations and loans of personal property. (1) Certain personal property of the Department of the Navy, including vessels, which become surplus, may be donated or loaned under the authority contained in the Federal Property Act and the act of August 10, 1956 (70A Stat. 453; 10 U.S.C. 2572, 7308, 7545) to: (i) Schools such as maritime academies or military, naval, Air Force or Coast Guard preparatory schools, designated by the Secretary of Defense as educational activities of special interest to the armed services. (ii) Accredited schools, colleges and universities and educational institutions which have been exempted from taxation under section 501(c) (3) of the Internal Revenue Code of 1954 and State Departments of Education for use by tax exempt educational institutions. Applications for donation shall be approved by the Department of Health, Education, and Welfare and the Administrator of General Services and may be filed with the field representative of the Department of Health, Education, and Welfare located nearest the applicant. (iii) States, Territories, Commonwealths, or possessions of the United States and political subdivisions, municipal corporations, veterans associations, soldiers' monument associations, State museums, and non-profit educational museums, subject in certain cases to the approval of the Curator for the Navy and to objection by a concurrent resolution of the Congress. (2) Applications other than those to be filed with the field representative of the Department of Health, Education, and Welfare shall be filed with the Department of the Navy and referred to the cognizant Command or Headquarters for action except that applications for vessels and district craft shall be referred to the Chief of Naval Operations, applications for boats to the Naval Ship Systems Command, and applications for barges, floating drydocks, and other floating construction equipment to the Naval Facilities Engineering Command. Detailed instructions with respect to such applications are set forth in the Defense Disposal Manual. (g) Disposition of equipment for research. Under the act of September 6, 1958 (72 Stat. 1793; 42 U.S.C. 1891-1893), equipment purchased with research grant or contract funds may be transferred for the conduct of basic or applied scientific research to (1) non-profit institutions of higher education or (2) non-profit organizations whose primary purpose is the conduct of scientific research. An annual report of such transfers must be made to the appropriate Committees of Congress. (h) Assistance in major disaster relief. Under the act of September 30, 1950, as amended (42 U.S.C. 1855-1855g) and subject to directions of the Director of the Office of Civil and Defense Mobilization, certain excess personal property may be utilized for or donated to States and local governments for relief of suffering and damage resulting from major disasters. Surplus property may also be disposed of to States for sale to small business concerns affected by specific disasters such as hurricanes. [25 F.R. 4674, May 27, 1960, as amended at 25 FR. 11066, Nov. 22, 1960, 26 FR. 12158, Dec. 20, 1961; 35 F.R. 10008, June 18, 1970] § 736.6 Certification prior to disposition. The transfer, sale, or other disposition of a battleship, aircraft carrier, cruiser, destroyer, or submarine shall not be made unless and until the Chief of Naval Operations, in accordance with the act of August 10, 1956 (70A Stat. 452; 10 U.S.C. 7307), has certified that such material is not essential to the defense of the United States. § 736.7 eral. Approval by the Attorney Gen Prior to the disposition, either competitively or by negotiation, to private interests of a plant or plants, or other property, which cost the Government $1,000,000 or more if real property, or $3,000,000 or more if personal property (other than a patent, process, technique or invention), or of patents, processes, techniques or inventions, irrespective of cost, the Department of the Navy must notify the Attorney General of the proposed disposal and the probable terms and conditions thereof. Within a reasonable time, in no event to exceed sixty days after receiving such notification, the Attorney General will advise the Department of the Navy whether, insofar AUTHORITY: The provisions of this Part 742 issued under 66 Stat. 624; 24 FR. 10265. REIMBURSEMENT TO OWNERS AND TENANTS OF LAND ACQUIRED BY DEPARTMENT OF THE NAVY REIMBURSEMENT PURSUANT TO PUBLIC LAW 155, 82D CONGRESS SOURCE: §§ 742.1 to 742.8 appear at 17 F.R. 8210, Sept. 12, 1952, unless otherwise noted. § 742.1 Statutory provisions. The Secretary of the Navy is authorized, to the extent he determines to be fair and reasonable, to reimburse owners and tenants of land acquired by the Department of the Navy pursuant to the provisions of Public Law 155, 82d Congress, for expenses and other losses and damages incurred by such owners and |