October 22, 2004

TO:  Heads of Federal agencies

SUBJECT:  Proceeds from Sale of Agency-Owned Vehicles

1.  What is the purpose of this bulletin?  This bulletin is a reminder for the Fleet programs of Federal agencies that when replacing agency-owned vehicles under the Exchange/Sale provisions of the Federal Management Regulation (FMR), sale proceeds are retainable as provided under and in compliance with those provisions for purchasing replacement vehicles.

2.  What is the effective date of this bulletin?  This bulletin is effective October 22, 2004.

3.  When does this bulletin expire?  This bulletin will remain in effect until specifically cancelled.

4.  What is the background?  Briefings by some agencies on their Fleet program to the General Services Administration Vehicle Management Policy Division have lacked assurance that when replacing agency-owned vehicles under the Exchange/Sale provisions of the FMR, the Fleet program has been retaining the sale proceeds as prescribed in 41 CFR part 102-39, for purchasing replacement vehicles.  As a source of funding for replacement vehicles additional to other Fleet program funding, the availability of sale proceeds should not be overlooked.

5.  What must I do as a result of this bulletin?  Within the Federal agencies, when replacing agency-owned vehicles under the Exchange/Sale provisions of the FMR, Fleet and Finance programs need work together to ensure retention of sale proceeds as prescribed in 41 CFR part 102-39, for replacement vehicles.

6.  Who should we contact for further information and/or to direct comments regarding proceeds from sale of agency-owned vehicles?

General Services Administration
Office of Governmentwide Policy
Vehicle Management Policy Division (MTV)
Washington, DC  20405
Telephone Number:  (202) 501-1777
E-mail Address: vehicle.policy@gsa.gov

/s/

G. MARTIN WAGNER
Associate Administrator
Office of Governmentwide Policy