[Sale of Excess Stockpile Materials]

GAO responded to a submission from the General Services Administration (GSA) to clarify whether GSA may: (1) sell, on behalf of contractors, excess stockpile materials in the custody of the government though title has been transferred to contractors in exchange for other needed stockpile materials; and (2) pay the proceeds of the sale directly to a contractor rather than deposit it to the credit of the National Defense Stockpile Fund. GAO noted that GSA is authorized by various laws to barter surplus government property for stockpile materials, but GSA has made only limited use of these authorities. GAO held that the GSA program to sell property on behalf of contractors is a legally acceptable method to explore new and wider uses of this authority. However, since this proposal is untested, GAO recommended that GSA discuss the approach with Congress before it is implemented. Further, GSA may pay proceeds from the sale directly to the contractor rather deposit them in the Stockpile Fund, since the proceeds are for the benefit of the contractor rather than the United States. Accordingly, GAO had no objection to the proposed new procedures for obtaining stockpile materials.