B-20182, OCTOBER 6, 1941, 21 COMP. GEN. 294

B-20182: Oct 6, 1941

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VEHICLES - USED - CASH SALES IN LIEU OF EXCHANGE WHEN A USED PASSENGER-CARRYING MOTOR VEHICLE IS TO BE EXCHANGED IN WHOLE OR PART PAYMENT OF A NEW ONE. IF THE CASH BID IS HIGHER. EVEN THOUGH THE APPROPRIATION ESTIMATES WERE PREPARED. AS FOLLOWS: REFERENCE IS MADE TO THE DECISION (A-96978. 1938) RENDERED BY ACTING COMPTROLLER GENERAL ELLIOTT TO THIS DEPARTMENT IN WHICH IT WAS HELD THAT WHEN THIS DEPARTMENT WISHES TO EXCHANGE USED AUTOMOBILES IN WHOLE OR PARTIAL PAYMENT FOR NEW ONES. THIS DEPARTMENT NOW DESIRES TO KNOW WHETHER THE LIMITATION UPON THE AMOUNT AVAILABLE FOR THE PURCHASE OF PASSENGER- CARRYING VEHICLES NECESSARY IN THE CONDUCT OF FIELD WORK OUTSIDE THE DISTRICT OF COLUMBIA MUST BE CHARGED WITH THE FULL PRICE OF THE NEW CAR OR MAY BE CHARGED WITH ONLY THE DIFFERENCE BETWEEN SUCH AMOUNT AND THE AMOUNT FOR WHICH THE USED AUTOMOBILE WAS SOLD.

B-20182, OCTOBER 6, 1941, 21 COMP. GEN. 294

VEHICLES - USED - CASH SALES IN LIEU OF EXCHANGE WHEN A USED PASSENGER-CARRYING MOTOR VEHICLE IS TO BE EXCHANGED IN WHOLE OR PART PAYMENT OF A NEW ONE, BOTH CASH BIDS AND TRADE-IN OFFERS MUST BE SOLICITED AND, IF THE CASH BID IS HIGHER, IT MUST BE ACCEPTED, THE PROCEEDS DEPOSITED IN THE TREASURY AS MISCELLANEOUS RECEIPTS, AND THE FULL PRICE OF THE VEHICLE CHARGED TO THE PASSENGER-CARRYING VEHICLE APPROPRIATION LIMITATION, EVEN THOUGH THE APPROPRIATION ESTIMATES WERE PREPARED, AND THE APPROPRIATION MADE, ON THE BASIS OF THE NET COST OF VEHICLES. LANGUAGE SUGGESTED, FOR INCLUSION IN SUBSEQUENT APPROPRIATION BILLS, WHICH WOULD PERMIT THE USE OF THE PROCEEDS OF SUCH SALES IN WHOLE OR IN PART PAYMENT FOR NEW VEHICLES.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF AGRICULTURE, OCTOBER 6, 1941:

THERE HAS BEEN CONSIDERED YOUR LETTER OF AUGUST 29, 1941, AS FOLLOWS:

REFERENCE IS MADE TO THE DECISION (A-96978, 18 COMP. GEN. 227, SEPTEMBER 14, 1938) RENDERED BY ACTING COMPTROLLER GENERAL ELLIOTT TO THIS DEPARTMENT IN WHICH IT WAS HELD THAT WHEN THIS DEPARTMENT WISHES TO EXCHANGE USED AUTOMOBILES IN WHOLE OR PARTIAL PAYMENT FOR NEW ONES, IT MUST SOLICIT BOTH CASH AND TRADE-IN OFFERS FOR SUCH USED VEHICLES, AND IF A CASH BID EXCEEDS THE EXCHANGE ALLOWANCES OFFERED, IT MUST BE ACCEPTED, THE PROCEEDS OF THE SALE DEPOSITED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, AND THE APPROPRIATE APPROPRIATION CHARGED WITH THE FULL PRICE OF THE NEW AUTOMOBILE. THIS DEPARTMENT NOW DESIRES TO KNOW WHETHER THE LIMITATION UPON THE AMOUNT AVAILABLE FOR THE PURCHASE OF PASSENGER- CARRYING VEHICLES NECESSARY IN THE CONDUCT OF FIELD WORK OUTSIDE THE DISTRICT OF COLUMBIA MUST BE CHARGED WITH THE FULL PRICE OF THE NEW CAR OR MAY BE CHARGED WITH ONLY THE DIFFERENCE BETWEEN SUCH AMOUNT AND THE AMOUNT FOR WHICH THE USED AUTOMOBILE WAS SOLD. THE DETERMINATION OF THIS QUESTION IS OF VITAL IMPORTANCE IN VIEW OF POSSIBLE SERIOUS DISLOCATIONS OF THE BUDGETARY PROGRAMS OF THE BUREAUS OF THIS DEPARTMENT, PARTICULARLY THOSE WITH SMALL PASSENGER-CARRYING VEHICLE LIMITATIONS.

IT IS OUR OPINION, AND WE BELIEVE THE OBVIOUS INTENT OF THE CONGRESS, THAT THE PASSENGER-CARRYING VEHICLE LIMITATION SHOULD BE CHARGED NOT WITH THE FULL PRICE OF THE NEW CAR, BUT ONLY WITH ITS NET COST. SECTION 5 OF THE ACT APPROVED JULY 16, 1914 (38 STAT. 508, 5 U.S.C. 78) REQUIRES DETAILED ESTIMATES TO BE SUBMITTED ANNUALLY "FOR SUCH NECESSARY APPROPRIATIONS AS ARE INTENDED TO BE USED FOR THE PURCHASE, MAINTENANCE, REPAIR, OR OPERATION OF ALL MOTOR-PROPELLED OR HORSE-DRAWN PASSENGER- CARRYING VEHICLES, SPECIFYING THE SUMS REQUIRED, THE PUBLIC PURPOSES FOR WHICH SAID VEHICLES ARE INTENDED, AND THE OFFICIALS OR EMPLOYEES BY WHOM THE SAME ARE TO BE USED.' THIS INFORMATION IS SUBMITTED TO THE BUREAU OF THE BUDGET AND TO THE CONGRESS IN THE FOLLOWING HYPOTHETICAL EXEMPLARY FORM:

FORM

NEW OLD VEHICLES

VEHICLES TO BE NET COST

APPROPRIATION EXCHANGED OF NEW

CAR

NUMBER GROSS COST NUMBER ALLOWANCE

(ESTIMATED) ENFORCEMENT OF SALT

INSPECTION ACT ---------- 1 $650 1 $250 $400 IF THE BUDGET BUREAU AND THE CONGRESS CONCUR IN THIS ESTIMATE, THE APPROPRIATION MADE FOR THE ENFORCEMENT OF THE SALT INSPECTION ACT WILL PROVIDE THAT NOT TO EXCEED $400 (THE NET COST) RATHER THAN $650 (THE GROSS COST) SHALL BE AVAILABLE FOR THE PURCHASE OF MOTOR-PROPELLED AND HORSE-DRAWN PASSENGER-CARRYING VEHICLES NECESSARY IN THE CONDUCT OF FIELD WORK OUTSIDE THE DISTRICT OF COLUMBIA. THEN, SHOULD THE BIDDING RESULT IN THE RECEIPT OF A LOW OFFER OF $650 FOR A NEW AUTOMOBILE AND A TRADE-IN OFFER OF $250 FOR THE USED CAR AS THE HIGHEST OF ALL TRADE-IN AND CASH OFFERS, THE AMOUNT OF THE PASSENGER-CARRYING VEHICLE LIMITATION WOULD BE SUFFICIENT TO PERMIT THE PURCHASE OF THE NEW VEHICLE. BUT IF THE HIGH BID FOR THE USED CAR WAS A CASH BID RATHER THAN AN EXCHANGE OFFER, THE $400 PASSENGER-CARRYING VEHICLE LIMITATION WOULD BE INSUFFICIENT BY $250 AND WOULD PREVENT THE PURCHASE OF THE NEW AUTOMOBILE UNLESS THE AMOUNT OF THE CASH OFFER WAS DEDUCTED FROM THE PRICE OF THE NEW CAR AND ONLY THE DIFFERENCE CHARGED AGAINST THE LIMITATION. IT WAS MANIFESTLY THE INTENT OF THE CONGRESS THAT ONLY SUCH NET COST SHOULD BE CHARGED AGAINST THE LIMITATION FOR THIS IS THE WAY THE BUDGET ESTIMATES ARE PREPARED FOR AND CONSIDERED BY THE CONGRESS. A DECISION BY YOUR OFFICE REQUIRING THE FULL PURCHASE PRICE OF THE NEW CAR TO BE CHARGED AGAINST THE LIMITATION WOULD RENDER FUTILE BOTH THE ESTIMATE AND THE APPROPRIATION LANGUAGE WHICH CLEARLY GRANTED AUTHORITY FOR THE PURCHASE OF ONE NEW VEHICLE SUBJECT TO THE DISPOSITION OF THE USED ONE. THE EXECUTION OF SUCH AUTHORITY SHOULD NOT BE MADE TO DEPEND UPON THE FORTUITOUS CIRCUMSTANCE THAT THE ALLOWANCE ESTIMATED ON THE USED CAR MAY TAKE THE FORM OF A TRADE-IN OFFER RATHER THAN A CASH BID.

IT SEEMS TO US THAT IN DETERMINING THE AMOUNT PROPERLY CHARGEABLE AGAINST THE PASSENGER-CARRYING VEHICLE LIMITATION THE PURCHASE AND THE CASH SALE SHOULD BE REGARDED AS ONE INTEGRAL TRANSACTION RATHER THAN AS SEPARATE AND DISTINCT TRANSACTIONS. IN THE DECISION ALREADY CITED, IT WAS SAID---

"WHEN USED EQUIPMENT IS TO BE DISPOSED OF AT THE SAME TIME THAT NEW EQUIPMENT OF THAT KIND IS PURCHASED, THE DISPOSITION OF THE USED EQUIPMENT BECOMES AN ESSENTIAL PART OF THE PURCHASE OF THE NEW EQUIPMENT, AND, THEREFORE, THE INCLUSION IN THE ADVERTISING, FOR THE NEW EQUIPMENT REQUIRED UNDER SECTION 3709, REVISED STATUTES, OF A REQUEST FOR BOTH EXCHANGE AND CASH BIDS ON THE USED EQUIPMENT IS MANDATORY.'

AND IN YOUR RECENT DECISION (B-14967) OF MAY 7, 1941, TO THE SECRETARY OF THE INTERIOR, IT WAS HELD THAT THE COST OF TRANSPORTATION OF VEHICLES PURCHASED BY THE GOVERNMENT FROM BIDDER'S SHIPPING POINT TO GOVERNMENT'S DESTINATION IS CHARGEABLE AGAINST THE APPROPRIATION LIMITATION ON THE PURCHASE OF VEHICLES, EVEN THOUGH TWO UNRELATED VOUCHERS ARE INVOLVED, ONE FOR THE PURCHASE OF THE VEHICLE IN FAVOR OF THE VENDOR AND THE OTHER FOR TRANSPORTATION FROM SHIPPING POINT TO DESTINATION IS CHARGEABLE AGAINST THE APPROPRIATION LIMITATION ON THE PURCHASE OF VEHICLES, EVEN THOUGH TWO UNRELATED VOUCHERS ARE INVOLVED, ONE FOR THE PURCHASE OF THE VEHICLE IN FAVOR OF THE VENDOR AND THE OTHER FOR TRANSPORTATION FROM SHIPPING POINT TO DESTINATION PAYABLE TO THE COMMON CARRIER.

SIMILARLY, IN DEALING WITH THE STATUTORY PRICE LIMITATION OF $750 ON AUTOMOBILES, YOUR OFFICE HAS LOOKED TO THE GENERAL TRANSACTION RATHER THAN TO ITS INDIVIDUAL COMPONENTS. IN THE DECISION (A-92040, 17 COMP. GEN. 640) RENDERED TO THIS DEPARTMENT ON FEBRUARY 14, 1938, THE ACTING COMPTROLLER GENERAL DETERMINED THAT THE COST OF AN AUTOMOBILE HEATER ACQUIRED SUBSEQUENTLY TO THE PURCHASE OF AN AUTOMOBILE SHOULD BE INCLUDED AS PART OF THE COST OF THE AUTOMOBILE, AND HELD THAT THE PURCHASE OF THE HEATER WAS UNAUTHORIZED IF ITS COST, TOGETHER WITH THE COST OF THE CAR AND EQUIPMENT PREVIOUSLY INSTALLED THEREON, EXCEEDED $750.

IN OTHER WORDS, IF THE PURCHASE OF A NEW CAR AND A SIMULTANEOUS CASH SALE OF A USED CAR ARE CONSIDERED AS A SINGLE INTEGRATED TRANSACTION, WE FEEL THAT THE CONCLUSION IS LOGICAL AND INESCAPABLE THAT THE AMOUNT OF THE CASH SALE OF THE USED CAR IS FOR DEDUCTION FROM THE PRICE OF THE NEW CAR AND THAT THE RESULTING NET COST IS THE PROPER CHARGE AGAINST THE PASSENGER- CARRYING VEHICLE LIMITATION. SUCH A CONCLUSION WOULD NOT BE INCONSISTENT WITH YOUR DECISION OF SEPTEMBER 14, 1938, CITED IN THE FIRST PARAGRAPH OF THIS LETTER. RATHER THEY WOULD BE IN HARMONY, ONE GIVING EFFECT TO SECTION 3618 OF THE REVISED STATUTES REQUIRING THE PROCEEDS OF THE SALE OF OLD EQUIPMENT TO BE DEPOSITED TO THE CREDIT OF MISCELLANEOUS RECEIPTS, THE OTHER CARRYING OUT THE CONGRESSIONAL INTENTION THAT AN APPROPRIATION BE AVAILABLE TO PURCHASE A SPECIFIC NUMBER OF VEHICLES.

AS INDICATED IN YOUR LETTER THE RULE IS THAT UNDER THE AUTHORITY VESTED IN THE DEPARTMENT OF AGRICULTURE TO EXCHANGE USED AUTOMOBILES IN WHOLE OR IN PARTIAL PAYMENT FOR NEW ONES, BOTH CASH BIDS AND TRADE-IN OFFERS MUST BE SOLICITED FOR THE USED VEHICLES AND, IF A CASH BID EXCEEDS THE EXCHANGE ALLOWANCES OFFERED IT MUST BE ACCEPTED, THE PROCEEDS OF THE SALE DEPOSITED IN THE TREASURY AS MISCELLANEOUS RECEIPTS, AND THE PROPER APPROPRIATION CHARGED WITH THE FULL PRICE OF THE NEW AUTOMOBILE. IN VIEW THEREOF, AND HAVING REGARD FOR THE BASIS UPON WHICH YOUR APPROPRIATION ESTIMATES ARE BASED, IT IS APPRECIATED THAT A PROBLEM ARISES WHEN IT BECOMES NECESSARY TO ACCEPT A CASH BID, UNDER A SITUATION SUCH AS ILLUSTRATED IN YOUR LETTER, AND TO CHARGE THE FULL COST OF THE NEW VEHICLE AGAINST THE AMOUNT SPECIFICALLY LIMITED IN THE APPROPRIATION FOR THE PURCHASE OF PASSENGER- CARRYING VEHICLES. IN ORDER TO MEET THE PROBLEM ARISING IN SUCH A SITUATION, IT IS UNDERSTOOD THAT YOU DESIRE TO CHARGE THE APPROPRIATION AVAILABLE TO THE PARTICULAR ACTIVITY WITH THE FULL PURCHASE PRICE OF THE NEW VEHICLE, BUT, INSOFAR AS CONCERNS THE LIMITATION ON THE PURCHASES OF PASSENGER-CARRYING VEHICLES, TO CHARGE AGAINST SUCH LIMITATION ONLY THE DIFFERENCE BETWEEN THE COST OF THE NEW VEHICLE AND THE AMOUNT OF THE ACCEPTED CASH BID DEPOSITED IN THE TREASURY AS MISCELLANEOUS RECEIPTS. THE RESULT OF SUCH A PROCEDURE WOULD BE THE EXPENDITURE OF FUNDS MADE AVAILABLE FOR GENERAL USE OF THE ACTIVITY CONCERNED FOR THE PURCHASE OF PASSENGER CARRYING VEHICLES, AND THUS TO INCREASE ADMINISTRATIVELY, BY REASON OF THE EXIGENCIES OF THE SITUATION, THE AMOUNT MADE AVAILABLE AND SPECIFICALLY LIMITED BY THE CONGRESS FOR THE PURCHASE OF PASSENGER CARRYING VEHICLES.

SECTION 5 OF THE ACT OF JULY 16, 1914, 38 STAT. 508, PROVIDES IN PART THAT:

* * * THERE SHALL NOT BE EXPENDED OUT OF ANY APPROPRIATION MADE BY CONGRESS ANY SUM FOR PURCHASE, MAINTENANCE, REPAIR, OR OPERATION OF MOTOR- PROPELLED OR HORSE-DRAWN PASSENGER-CARRYING VEHICLES FOR ANY BRANCH OF THE PUBLIC SERVICE OF THE UNITED STATES UNLESS THE SAME IS SPECIFICALLY AUTHORIZED BY LAW. * * *

IN THE DEPARTMENT OF AGRICULTURE APPROPRIATION ACT, 1942, PUBLIC LAW 144, APPROVED JULY 1, 1941, 55 STAT. 443, THE CONGRESS HAS SPECIFICALLY AUTHORIZED THE PURCHASE OF PASSENGER-CARRYING VEHICLES FOR MANY OF THE ACTIVITIES IN AMOUNTS "NOT TO EXCEED" SPECIFIED SUMS. FOR EXAMPLE, OF THE TOTAL AMOUNT APPROPRIATED FOR THE AGRICULTURAL MARKETING SERVICE IT IS PROVIDED THAT "NOT TO EXCEED $44,400 SHALL BE AVAILABLE FOR THE PURCHASE OF MOTOR-PROPELLED AND HORSE-DRAWN PASSENGER-CARRYING VEHICLES NECESSARY IN THE CONDUCT OF FIELD WORK OUTSIDE THE DISTRICT OF COLUMBIA.' THE SAID ACT PROVIDES, ALSO, THAT:

WITHIN THE LIMITATIONS SPECIFIED UNDER THE SEVERAL HEADINGS THE LUMP-SUM APPROPRIATIONS HEREIN MADE FOR THE DEPARTMENT OF AGRICULTURE SHALL BE AVAILABLE FOR THE PURCHASE OF MOTOR-PROPELLED AND HORSE-DRAWN PASSENGER- CARRYING VEHICLES NECESSARY IN THE CONDUCT OF THE FIELD WORK OF THE DEPARTMENT OF AGRICULTURE OUTSIDE THE DISTRICT OF COLUMBIA: * * * PROVIDED FURTHER, THAT THE LIMITATION ON EXPENDITURES FOR PURCHASE OF PASSENGER- CARRYING VEHICLES IN THE FIELD SERVICE SHALL BE INTERCHANGEABLE BETWEEN THE VARIOUS BUREAUS AND OFFICES OF THE DEPARTMENT, TO SUCH EXTENT AS THE EXIGENCIES OF THE SERVICE MAY REQUIRE: ( ITALICS SUPPLIED.)

SECTION 3678, REVISED STATUTES, PROVIDES:

ALL SUMS APPROPRIATED FOR THE VARIOUS BRANCHES OF EXPENDITURE IN THE PUBLIC SERVICE SHALL BE APPLIED SOLELY TO THE OBJECTS FOR WHICH THEY ARE RESPECTIVELY MADE, AND FOR NO OTHERS.

THUS, IT IS EXPRESSLY PROVIDED BY STATUTE THAT APPROPRIATED FUNDS MAY NOT BE USED FOR THE PURCHASE OF PASSENGER-CARRYING VEHICLES UNLESS SPECIFICALLY AUTHORIZED BY LAW; THAT THE APPROPRIATIONS OF THE DEPARTMENT OF AGRICULTURE FOR THE FISCAL YEAR 1942 MAY BE USED FOR THE PURCHASE OF PASSENGER-CARRYING VEHICLES ONLY TO THE EXTENT OF THE SPECIFIC LIMITATIONS CONTAINED IN THE APPROPRIATION ACT; AND THAT APPROPRIATED MONEYS MAY BE USED ONLY FOR THE OBJECTS FOR WHICH THEY ARE APPROPRIATED. THEREFORE, TO THE EXTENT OF THE DIFFERENCE BETWEEN THE TOTAL COST OF THE NEW VEHICLES AND THE AMOUNT DEPOSITED IN THE TREASURY AS MISCELLANEOUS RECEIPTS REPRESENTING CASH BIDS ACCEPTED, THE PROCEDURE YOU SUGGEST WOULD BE IN DIRECT CONTRAVENTION OF THE ABOVE QUOTED STATUTES IN THAT FUNDS WOULD BE USED FOR THE PURCHASE OF PASSENGER-CARRYING VEHICLES WHEN NOT SPECIFICALLY AUTHORIZED BY LAW, THE SPECIFIC LIMITATIONS PLACED UPON THE AMOUNTS WHICH MIGHT BE SPENT FOR PASSENGER-CARRYING VEHICLES WOULD BE EXCEEDED, AND APPROPRIATED FUNDS WOULD BE APPLIED FOR OBJECTS FOR WHICH THEY WERE NOT APPROPRIATED. CONSEQUENTLY, SUCH PROCEDURE IS NOT AUTHORIZED.

THERE IS NOTED YOUR STATEMENT THAT THE DIFFICULTY ENCOUNTERED IS PARTICULARLY EVIDENT IN THOSE BUREAUS HAVING SMALL AMOUNTS AVAILABLE FOR THE PURCHASE OF PASSENGER-CARRYING VEHICLES. IT WOULD SEEM THAT SUCH SITUATION COULD BE RELIEVED SOMEWHAT BY VIRTUE OF THE PROVISIONS OF THE ACT OF JULY 1, 1941, SUPRA, THAT THE LIMITATIONS ON EXPENDITURES FOR PASSENGER-CARRYING VEHICLES SHALL BE INTERCHANGEABLE BETWEEN THE VARIOUS BUREAUS TO SUCH EXTENT AS THE EXIGENCIES OF THE SERVICE MAY REQUIRE. IS REALIZED, OF COURSE, THAT EVEN THE INTERCHANGE OF THE LIMITATIONS DOES NOT FULLY MEET THE SITUATION AND HAS NO EFFECT ON THE TOTAL AMOUNT AVAILABLE TO THE DEPARTMENT FOR THE PURCHASE OF PASSENGER CARRYING VEHICLES. CONSEQUENTLY, HAVING REGARD FOR THE MANNER IN WHICH APPROPRIATION ESTIMATES FOR PASSENGER-CARRYING VEHICLES ARE PREPARED, THERE WOULD APPEAR NO COMPLETE AND SATISFACTORY SOLUTION OF THE PROBLEM EXCEPT BY OBTAINING NECESSARY LEGISLATION. THE EXCHANGE PROVISION AS NOW CONTAINED IN THE DEPARTMENT OF AGRICULTURE APPROPRIATION ACT, 1942, 55 STAT. 443, READS AS FOLLOWS: * * * PROVIDED FURTHER, THAT THE SECRETARY OF AGRICULTURE MAY EXCHANGE MOTOR-PROPELLED AND HORSE-DRAWN VEHICLES, TRACTORS, ROAD EQUIPMENT AND BOATS, AND PARTS, ACCESSORIES, TIRES, OR EQUIPMENT THEREOF, IN WHOLE OR IN PART PAYMENT FOR VEHICLES, TRACTORS, ROAD EQUIPMENT, OR BOATS, OR PARTS, ACCESSORIES, TIRES, OR EQUIPMENT OF SUCH VEHICLES, TRACTORS, ROAD EQUIPMENT, OR BOATS PURCHASED BY HIM: * * * IT IS BELIEVED THAT WHAT IS DESIRED COULD BE ACCOMPLISHED MOST READILY BY OBTAINING AUTHORITY FROM THE CONGRESS TO UTILIZE THE PROCEEDS OF SALES OF USED AUTOMOBILES, ETC., UNDER SUCH CIRCUMSTANCES, IN WHOLE OR IN PART PAYMENT FOR NEW ONES. TO THAT END THERE IS SUGGESTED FOR YOUR CONSIDERATION THE DESIRABILITY OF RECOMMENDING, IN LIEU OF THE USUAL EXCHANGE PROVISION, THE INCLUSION IN THE APPROPRIATION BILL FOR THE FISCAL YEAR 1943, OF A PROVISION SUBSTANTIALLY AS FOLLOWS:

PROVIDED FURTHER, THAT NOTWITHSTANDING THE LIMITATIONS HEREIN SPECIFIED IN PURCHASING MOTOR-PROPELLED OR HORSE-DRAWN VEHICLES, TRACTORS, ROAD EQUIPMENT, OR BOATS, OR PARTS, ACCESSORIES, TIRES, OR EQUIPMENT THEREOF, THE SECRETARY OF AGRICULTURE MAY EXCHANGE OR SELL SIMILAR ITEMS AND APPLY THE EXCHANGE ALLOWANCES OR PROCEEDS OF SALES IN SUCH CASES IN WHOLE OR IN PART PAYMENT THEREFOR.