41 C.F.R. Subpart 101–25.4—Replacement Standards
Title 41 - Public Contracts and Property Management
This subpart prescribes minimum replacement standards to be used by executive agencies desiring to replace specified types of items indicated in this subpart. Executive agencies shall retain items which are in usable workable condition even though the standard permits replacement, provided the item can continue to be used or operated without excessive maintenance cost or substantial reduction in trade-in value. [29 FR 15994, Dec. 1, 1964] Replacement of motor vehicles shall be in accordance with the standards prescribed in §101–38.402. [53 FR 11848, Apr. 11, 1988]
Title 41: Public Contracts and Property Management
PART 101–25—GENERAL
Subpart 101–25.4—Replacement Standards
§ 101-25.401 General.
§ 101-25.402 Motor vehicles.
§ 101-25.403 [Reserved]
§ 101-25.404 Furniture.
Furniture (office, household and quarters, and institutional) shall not be replaced unless the estimated cost of repair or rehabilitation (based on GSA term contracts), including any transportation expense, exceeds at least 75 percent of the cost of a new item of the same type and class (based on prices as shown in the current edition of the GSA Supply Catalog, applicable Federal Supply Schedules, or the lowest available market price). An exception is authorized in those unusual situations in which rehabilitation of the furniture at 75 percent or less of the cost of a new item would not extend its useful life for a period compatible with the cost of rehabilitation as determined by the agency head or his designee.
[38 FR 28566, Oct. 15, 1973]
§ 101-25.404-1 Limitation.
Nothwithstanding the provisions in §101–25.404, agencies shall limit acquisition of new office furniture to essential requirements as provided in §101–25.104. Replacement of correspondence filing cabinets will be governed by the provisions of §101–26.308.
[61 FR 14978, Apr. 4, 1996]
§ 101-25.405 Materials handling equipment.
(a) Materials handling equipment will not be replaced unless the estimated cost of necessary one-time repair or reconditioning of each piece of equipment exceeds, at lowest available cost, the applicable percentage of acquisition cost as shown in column 3 of the following table. Equipment eligible for replacement under the criteria established by this standard may be repaired provided the expected economical life is extended commensurate with the expenditure required. Prior to incurring repair costs for equipment eligible for replacement, consideration should be given to the continuing availability of repair parts.
(1) Years in use shall be determined in accordance with the following:
(i) An operating month is considered equal to 100 operating hours. For materials handling equipment in storage, one month in storage equals 50 hours of operation.
(ii) The number of years in use is determined by dividing the number of operating months by 12. The fractional years in use resulting from this computation will be rounded to the nearest full year.
---------------------------------------------------------------------------------------------------------------- Column Column 3_Maximum allowable ``one-time repair limits'' as 2_Expected percentage of acquisition costs (years in use) Column 1_Type of unit years of ----------------------------------------------------------- economical use 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15---------------------------------------------------------------------------------------------------------------- GasolineFork truck (2000 pounds to 6000 pounds). 8 50 45 40 30 25 20 15 10 .. .. .. .. .. .. ..Fork truck (over 6000 pounds)........... 10 50 45 40 35 30 25 20 15 10 10 .. .. .. .. ..Tractor................................. 8 50 45 40 30 25 20 15 10 .. .. .. .. .. .. ..Crane................................... 12 50 50 45 45 40 40 35 30 25 20 15 10 .. .. ..Platform truck.......................... 8 50 45 40 30 25 20 15 10 .. .. .. .. .. .. ..Straddle truck.......................... 15 50 50 50 45 45 45 40 40 35 35 30 25 20 15 10 ElectricFork truck (2000 pounds to 6000 pounds). 15 50 50 50 45 45 45 40 40 35 35 30 25 20 15 10Tractor................................. 15 50 50 50 45 45 45 40 40 35 35 30 25 20 15 10Crane................................... 15 50 50 50 45 45 45 40 40 35 35 30 25 20 15 10Platform truck.......................... 15 50 50 50 45 45 45 40 40 35 35 30 25 20 15 10Pallet truck............................ 15 50 50 50 45 45 45 40 40 35 35 30 25 20 15 10----------------------------------------------------------------------------------------------------------------
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(2) In using the maximum allowable one-time repair limits in column 3 of the table, costs such as parts, labor, and transportation incident to the repairs, are to be included in computing one-time repair costs. However, operating expenses such as fuels and lubricants, replacement tires and batteries, and antifreeze will not be included in the one-time repair cost estimate. (b) Notwithstanding the limitations prescribed in §101–25.405(a), materials handling equipment may be replaced under the following conditions provided a written justification supporting such replacement is approved by the agency head or an authorized designee. The justification shall be retained in the agency files. (1) When the cumulative repair costs on a piece of equipment appears to be excessive as indicated by repair records. However, because an item of equipment accrues repair costs equal to the acquisition cost, it is not necessarily indicative of the current condition of the equipment. For example, a substantial repair expenditure included in the cumulative cost may actually have resulted in restoring the equipment to as good as new condition. While cumulative repair costs suggest an area for investigation, they should not be used as the principal ingredient in the repair/replacement decision making process. (2) When repair parts are not available causing excessive equipment out-of-service time. (3) When the equipment lacks essential features required in a particular task which is of a continuing nature and other suitable equipment is not readily available. [32 FR 12400, Aug. 25, 1967] Browse Previous | Browse Next
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