B-127659, JUN. 5, 1956

B-127659: Jun 5, 1956

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TO THE SECRETARY OF COMMERCE: REFERENCE IS MADE TO LETTER OF APRIL 18. MAY BE USED FOR THE PURCHASE OF LAUNCHES OF 3 TO 5 TONS DISPLACEMENT AND 26 TO 30 FEET IN LENGTH WHICH ARE SUITABLE FOR HYDROGRAPHIC SURVEYING. IT IS STATED IN THE LETTER THAT THE LAUNCHES ARE NOT COMPARABLE IN SIZE NOR CAPABLE OF PERFORMING ALL FUNCTIONS OF THE VESSEL REPLACED. IT IS ALSO STATED THAT IN CERTAIN AREAS WHERE SURVEYS FOR NAUTICAL CHARTING ARE REQUIRED TWO OR MORE OF THESE CRAFT OPERATING IN CONCERT CAN PRODUCE A VOLUME OF HYDROGRAPHIC WORK SUBSTANTIALLY EQUIVALENT TO THAT PERFORMED BY THE LARGER VESSEL. EXECUTIVE AGENCIES ARE HEREBY AUTHORIZED. "A. THE APPLICATION OF EXCHANGE ALLOWANCES OR PROCEEDS OF SALE IN WHOLE OR PART PAYMENT FOR PERSONAL PROPERTY ACQUIRED IS AUTHORIZED ONLY WHEN: "1.

B-127659, JUN. 5, 1956

TO THE SECRETARY OF COMMERCE:

REFERENCE IS MADE TO LETTER OF APRIL 18, 1956, FROM THE ASSISTANT SECRETARY OF COMMERCE FOR ADMINISTRATION REQUESTING A DECISION AS TO WHETHER FUNDS REALIZED BY THE COAST AND GEODETIC SURVEY FROM THE SALE OF THE SHIP DERICKSON, A SURVEYING SHIP OF 267 DISPLACEMENT TONS, MAY BE USED FOR THE PURCHASE OF LAUNCHES OF 3 TO 5 TONS DISPLACEMENT AND 26 TO 30 FEET IN LENGTH WHICH ARE SUITABLE FOR HYDROGRAPHIC SURVEYING.

IT IS STATED IN THE LETTER THAT THE LAUNCHES ARE NOT COMPARABLE IN SIZE NOR CAPABLE OF PERFORMING ALL FUNCTIONS OF THE VESSEL REPLACED. HOWEVER, IT IS ALSO STATED THAT IN CERTAIN AREAS WHERE SURVEYS FOR NAUTICAL CHARTING ARE REQUIRED TWO OR MORE OF THESE CRAFT OPERATING IN CONCERT CAN PRODUCE A VOLUME OF HYDROGRAPHIC WORK SUBSTANTIALLY EQUIVALENT TO THAT PERFORMED BY THE LARGER VESSEL.

SECTION 201/C) OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949, 63 STAT. 384, AS AMENDED, 40 U.S.C. 481/C), PROVIDES AS FOLLOWS:

"/C) IN ACQUIRING PERSONAL PROPERTY, ANY EXECUTIVE AGENCY, UNDER REGULATIONS TO BE PRESCRIBED BY THE ADMINISTRATOR, MAY EXCHANGE OR SELL SIMILAR ITEMS AND MAY APPLY THE EXCHANGE ALLOWANCE OR PROCEEDS OF SALE IN SUCH CASES IN WHOLE OR IN PART PAYMENT FOR THE PROPERTY ACQUIRED: PROVIDED, THAT ANY TRANSACTION CARRIED OUT UNDER THE AUTHORITY OF THIS SUBSECTION SHALL BE EVIDENCED IN WRITING.'

SECTION 213.00 OF GENERAL SERVICES ADMINISTRATION REGULATION 1-II 213, RELATIVE TO AN EXCHANGE OR SALE OF PERSONAL PROPERTY FOR REPLACEMENT PURPOSES, PRESCRIBED PURSUANT TO THE ABOVE-QUOTED SECTION 201 (C), PROVIDES IN PART, AS FOLLOWS:

"213.03 GENERAL AUTHORIZATION. SUBJECT TO THE PROVISIONS OF THIS TITLE, EXECUTIVE AGENCIES ARE HEREBY AUTHORIZED, IN ACQUIRING REPLACEMENT PERSONAL PROPERTY WITHIN THE UNITED STATES OR ELSEWHERE, TO EXCHANGE OR SELL SIMILAR ITEMS AND APPLY THE EXCHANGE ALLOWANCE OR THE PROCEEDS OF SALE IN SUCH CASES, IN WHOLE OR IN PART PAYMENT FOR THE REPLACEMENT PROPERTY ACQUIRED.

"213.04 RESTRICTIONS AND LIMITATIONS.

"A. THE APPLICATION OF EXCHANGE ALLOWANCES OR PROCEEDS OF SALE IN WHOLE OR PART PAYMENT FOR PERSONAL PROPERTY ACQUIRED IS AUTHORIZED ONLY WHEN:

"1. THE ITEMS SOLD OR EXCHANGED ARE SIMILAR TO THE ITEMS ACQUIRED (SEE PARAGRAPH B. BELOW FOR EXPLANATION OF THE WORD, "SIMILAR");

"3. THE ITEMS ACQUIRED ARE TO BE USED (WHETHER OR NOT INTENDED FOR ADDITIONAL USES) IN THE PERFORMANCE OF ALL OR SUBSTANTIALLY ALL OF THE TASKS OR OPERATIONS IN WHICH THE ITEMS EXCHANGED OR SOLD WOULD OTHERWISE BE USED, BUT THE ITEMS ACQUIRED NEED NOT BE THE SAME IN NUMBER NOR USED IN THE SAME LOCATION AS THE ITEMS SOLD OR EXCHANGED (EXAMPLE: TWO 1/2-TON DUMP TRUCKS MAY BE REPLACED WITH ONE 1-TON DUMP TRUCK WHICH PERFORMS TASKS PREVIOUSLY REQUIRING THE TWO TRUCKS) * * *.

"B. THE ITEM OF PERSONAL PROPERTY TO BE EXCHANGED OR SOLD AND THE ITEM TO BE ACQUIRED SHALL BE DEEMED SIMILAR FOR THE PURPOSE OF THIS SECTION WHEN:

"2. IN THE CASE OF PERSONAL PROPERTY NOT FALLING WITHIN THE CATEGORIES OF SUBPARAGRAPH 1. ABOVE, THE ITEM TO BE ACQUIRED IS DESIGNED AND CONSTRUCTED FOR THE SAME SPECIFIC PURPOSE AS THE ITEM TO BE REPLACED; OR"

WHILE IT IS STATED IN THE LETTER OF APRIL 18 THAT THE LAUNCHES ARE NOT "CAPABLE OF PERFORMING ALL FUNCTIONS OF THE VESSEL REPLACED," WE HAVE BEEN INFORMALLY ADVISED BY A REPRESENTATIVE OF THE COAST AND GEODETIC SURVEY THAT THE LAUNCHES ARE CAPABLE OF PERFORMING ALL THE ACTUAL SURVEYING FUNCTIONS OF WHICH THE LARGER VESSEL IS CAPABLE, BUT CANNOT CARRY PERSONNEL AND MATERIALS SUFFICIENT TO PERMIT SUCH LAUNCHES TO OPERATE IN AREAS REMOTE FROM A SHORE BASE. IN OTHER WORDS, BOTH THE LARGER VESSEL AND THE LAUNCHES ARE DESIGNED FOR THE SAME SPECIFIC PURPOSE, I.E., HYDROGRAPHIC SURVEYING, ALTHOUGH NOT NECESSARILY UNDER THE SAME CONDITIONS. WE WERE ALSO ADVISED THAT IS IS CONTEMPLATED THAT TWO LAUNCHES WILL BE PURCHASED AND THAT THE SURVEYING PROGRAM INTENDED TO BE CARRIED ON BY THE COAST AND GEODETIC SURVEY IN THE IMMEDIATELY FORESEEABLE FUTURE WILL BE IN AREAS WHERE, FOR ECONOMIC REASONS, LAUNCHES CAN BE USED TO BETTER ADVANTAGE THAN A LARGER VESSEL.

IN VIEW OF THE FOREGOING EXPLANATION, IT IS CONCLUDED THAT THE LAUNCHES IN QUESTION PROPERLY MAY BE REGARDED AS "SIMILAR ITEMS" WITHIN THE MEANING OF SECTION 201/C) OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949, AS AMENDED, AND THE PERTINENT REGULATIONS. ACCORDINGLY, THERE IS NOT PERCEIVED ANY OBJECTION TO THE APPLICATION OF THE PROCEEDS OF THE SALE OF THE SHIP DERICKSON TO THE PURCHASE OF LAUNCHES SUITABLE FOR HYDROGRAPHIC SURVEYING.