[Federal Register Volume 76, Number 63 (Friday, April 1, 2011)]
[Rules and Regulations]
[Pages 18325-18345]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-6609]
[[Page 18325]]
Vol. 76
Friday,
No. 63
April 1, 2011
Part III
General Services Administration
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41 CFR Parts 300-3, 300-70, 302-1, et al.
Federal Travel Regulation; FTR Cases 2007-304 and 2003-309, Relocation
Allowances; Final Rule
Federal Register / Vol. 76, No. 63 / Friday, April 1, 2011 / Rules
and Regulations
[[Page 18326]]
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GENERAL SERVICES ADMINISTRATION
41 CFR Parts 300-3, 300-70, 302-1, 302-2, 302-3, 302-4, 302-5, 302-
6, 302-7, 302-9, 302-11, 302-12, 302-15, and 302-16
[FTR Amendment 2011-01; FTR Cases 2007-304 and 2003-309; Docket Number
2007-0002, Sequence 7]
RIN 3090-AI37
Federal Travel Regulation; FTR Cases 2007-304 and 2003-309,
Relocation Allowances
AGENCY: Office of Governmentwide Policy, General Services
Administration (GSA).
ACTION: Final rule.
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SUMMARY: The General Services Administration (GSA), Office of
Governmentwide Policy (OGP) continually reviews and adjusts policies as
part of its ongoing mission to provide policy assistance to Government
agencies subject to the Federal Travel Regulation (FTR). This final
rule is a combination of two previous proposed rules that were
published in the Federal Register on November 23, 2004 and August 3,
2007. The result is a unified, single final rule that addresses a wide
range of relocation issues.
DATES: Effective Date: This final rule is effective August 1, 2011.
FOR FURTHER INFORMATION CONTACT: The General Services Administration,
Regulatory Secretariat (MVCB), 1275 First Street NE., Washington, DC
20417, (202) 501-4755, for information pertaining to status or
publication schedules. For clarification of content, contact Ms. Pam
Silvis-Zelasko, Office of Travel, Transportation and Asset Management
(MT), General Services Administration at (202) 219-7749 or e-mail at
pamela.silvis-zelasko@gsa.gov. Please cite FTR Amendment 2011-01; FTR
cases 2003-309 and 2007-304.
SUPPLEMENTARY INFORMATION:
A. Background
The GSA Office of Governmentwide Policy (OGP) routinely reviews the
relocation regulations under its purview to address current Government
relocation needs, to incorporate private industry policies and best
practices that fit well into the Federal setting, and to adapt to
changes in the marketplace.
In 2002, GSA created the Relocation Best Practices Committee
(RBPC), consisting of Government and private industry relocation
experts, to examine Government relocation policy. After benchmarking
with the private sector experts, the RBPC Government policy experts
created a proposed rule summarizing the work of the RBPC.
The GSA then chartered the Governmentwide Relocation Advisory Board
(GRAB) through the Federal Advisory Committee Act, on July 9, 2004, to
allow for the use of private industry expertise in both the rulemaking
process and possible legislative actions involving Government
relocation policy. As a part of its wide-ranging mission, the GRAB
reviewed and updated the RBPC's proposals. The resulting proposed rule,
based primarily on the RBPC's recommendations, was published in the
Federal Register on November 23, 2004 (69 FR 68111).
The GRAB submitted its comprehensive Findings and Recommendations
on September 15, 2005. If fully implemented through regulation,
legislation, and operations, the 100-plus recommendations of the GRAB
would align Government relocation practices with private sector best
practices. They also would improve the overall management of Government
relocation programs and reduce costs. The GRAB Findings and
Recommendations and corresponding documents may be accessed at GSA's
Web site at http://www.gsa.gov/grab.
GSA's relocation experts analyzed the GRAB regulatory changes and
developed a second proposed rule, which was published in the Federal
Register on August 3, 2007 (72 FR 43216).
Due to the long policy-development process, GSA combined the RBPC
and GRAB proposed rules into this one final rule. This final rule
implements many of the changes sought by both committees and contains
additional changes to the FTR.
B. Summary of Comments Received
GSA extends its thanks to all the interested parties that commented
on the RBPC proposed rule (69 FR 68111, November 23, 2004) and the GRAB
proposed rule (72 FR 43216, August 3, 2007).
In response to the RBPC proposed rule, GSA received over 100 pages
of comments from 26 different entities (13 Federal agencies, 6 private
industry companies, 4 individuals, 2 unions, and 1 trade association).
In response to the GRAB proposed rule, GSA received comments from 9
entities (4 Federal agencies, 1 trade association, 1 provider of
support and technical assistance, and 3 relocation services companies).
The comments generally were supportive of the work of the RBPC and
the GRAB, although some comments disagreed with specific aspects. All
comments were carefully considered in the development of this final
rule.
The discussion of comments below is arranged according to the
section of the regulation affected by this final rule.
GSA has not included four issues from the proposed rules in this
final rule, and the explanation of why they are not included appears at
the end of this ``Summary of Comments Received'' section.
Terms and Conditions
This final rule adds the following definitions to section 300-3.1:
Accompanied baggage, amended value sale, appraised value sale, buyer
value option (BVO), and relocation services company (RSC). It also
revises the definitions of non-foreign area and household goods.
The complexity of many of these terms can be confusing. Several of
the comments raised this and provided suggestions in order to clarify
the definitions. In particular, the definition of an amended value sale
in the proposed rule insisted on a selling price higher than or equal
to the appraised value offer. Several comments demonstrated that with
proper use of home marketing incentive programs, the actual selling
price might be lower and still acceptable to both parties. GSA agrees
and changed the definition.
Data Systems, Reporting, and Relocation Program Management
The RBPC proposed rule included seven new sections for part 302-2,
subpart B. Those changes would have established new agency
responsibilities related to the successful management of agency
relocation programs. FTR section 302-2.200 in the RBPC proposed rule
also gave general guidance for relocation program management.
GSA received a wide range of comments on these proposed sections.
GSA wrote this final rule in a manner that did not require inclusion of
these seven sections from the RBPC proposed rule. Instead, GSA has
revised part 300-70, subpart A, and added a subpart B to part 302-1.
Several comments asked GSA to clarify the terms ``relocation
management program,'' ``relocation payment system,'' and ``relocation
management reporting system.'' In addition, many comments expressed
concern about the due date for the first required reports.
In response to these comments, GSA has written three new sections
and placed them in part 302-1, General Rules, rather than part 302-2.
The new sections describe a comprehensive
[[Page 18327]]
relocation management program and urge agencies to move toward
integrating all relocation processes into a single electronic
environment.
Also, GSA removed the due date for agencies to report relocation
data from the regulation and changed from biennial reports to annual
reports. Use of a 2-year reporting period results in stale data that
are less useful in policy creation. GSA will work with agencies to
develop the list of data elements to be reported and to select the best
startup date for annual reporting. More information on this section
will be available in FTR Bulletins issued periodically by OGP and
available on the Internet at http://www.gsa.gov/ftrbulletins.
Some comments expressed concerns that GSA was leaning towards a
sole source contract with a relocation data service provider; this is
not GSA's intent. GSA envisions agencies using commercial off-the-shelf
software, data warehousing systems, or tools built by the agency and/or
contracting to meet their needs for data management, all obtained
through competition.
Commute to New Job Location via Commonly Traveled Routes
This final rule amends sections 302-2.6 and 302-11.2 to bring the
FTR into conformance with the distance test guidelines in Internal
Revenue Service Publication 521, Moving Expenses. The distance test is
met when the new official station is at least 50 miles further from the
employee's current residence than the old official station is from the
same residence. For example, if the old official station is 3 miles
from the current residence, then the new official station must be at
least 53 miles from that same residence in order to receive relocation
expenses for residence transactions. The distance between the official
station and residence is the shortest of the commonly traveled routes
between them. The distance test does not take into consideration the
location of a new residence.
Reduction in Time for Relocations and Relocation Extensions
GSA received seven comments on the RBPC proposal to reduce the time
for settling relocation transactions from two years to one year. GSA
received essentially the same comments from the same seven
organizations on the proposal to reduce extensions from two years to
one year. These proposals affect FTR sections 302-2.8 through 302-2.11,
302-2.110, 302-11.21, 302-11.22, 302-11.404, 302-11.420, 302-11.421,
and 302-15.10.
Three organizations supported the proposals, with all of them
indicating that the proposals should reduce outstanding obligations and
ensure that transferees will move into their new positions and begin
work quickly. Four organizations objected to the proposals. All that
objected argued that it may be difficult for some transferees to
complete their residence transactions in one year.
GSA recognizes that reducing the maximum time to one year plus a 1-
year extension may be challenging for some agencies; however, GSA
believes that this risk is less significant than the potential
benefits. The most significant benefit is moving transferees into their
new positions as quickly as possible, which is a basic objective of
Federal relocation policy. Giving most transferees only one year to
complete their residence transactions will assist in meeting this
objective.
The other significant benefit of reducing the time limit is
reducing the number of years in which an employee may incur a debt
against the Government. Funds used for relocation are, in most cases,
obtained from monies that were appropriated for a specific year.
Allowing employees to incur debts against the Government for four
years, as currently permitted by the FTR, is a challenge for Federal
finance managers. One comment noted that claims for reimbursement
against the Government can be made for up to six years, under Title 31
of the United States Code, Chapter 37. This six-year period is a
statutory requirement, which GSA does not possess the ability to
change, and will therefore remain the same.
Disclosure Statements
This final rule amends section 302-2.12, adds two new sections to
part 302-2, subpart A, and amends section 302-2.100 to require
disclosure statements as part of the service agreement, which will
prevent duplication of funding between two agencies or a private
source. Most of the comments received regarding this part of the RBPC
proposed rule favored its inclusion. One comment suggested that GSA
direct the agencies to add this disclosure statement to relocations
that are currently underway. GSA does not want to change the premise
that a relocation must follow the provisions in place at the time of
initiation, so this suggestion has not been adopted.
Required Counseling
This final rule amends section 302-2.103 to require that agencies
provide counseling to relocating employees. The agencies should offer
the counseling at the earliest possible time. If the agency chooses,
this counseling may take place after the selection but prior to the
acceptance of the job offer. This counseling is important because it
can assist employees in making more informed decisions and allow them
to play a more active role in their relocation. It is very important
that employees understand their options when selling and/or buying a
residence because of the enormous financial implications. This
counseling can be provided by either the agencies or contractors.
Separation Travel Timing and Extensions
The portion of the RBPC proposed rule relating to separation travel
timing and extensions for Senior Executive Service personnel did not
generate any negative comments; therefore it is included with
substantially the same language in this final rule. However, GSA has
made minor revisions to the proposed language of the RBPC to create a
more efficient solution and avoid potential confusion. These changes
are found in this final rule in revised section 302-3.315.
Househunting Trip (HHT) Per Diems
This final rule amends section 302-5.13, and adds a reference to it
in the current section 302-4.100, to make the standard CONUS rate the
operative per diem rate for calculating actual expense househunting
trips reimbursement and clarifies the availability and use of lump-sum
reimbursements. The GRAB final report explains:
* * *, the implementing regulations for FETRA [Federal Employee
Travel Reform Act] * * * created an unfortunate inconsistency
between HHT and TQSE [temporary quarters subsistence expense]
benefits. From that time and continuing today, the traditional
method for claiming HHT expenses is linked to the locality rate (FTR
Part [sic] 302-5.13 and Part [sic] 301-11.100), while the
traditional method for claiming TQSE expenses is linked to the CONUS
[Continental United States] rate (FTR Part [sic] 302-6.102). Not
only is this inconsistent from a practical and logical point of
view, it creates an unintended constraint on encouraging the use of
a more cost-effective lump sum HHT reimbursement method: Why should
any transferee use the lump sum benefit granting 5 days' worth of
the locality rate [actually, the lump sum method uses a multiplier
of 6.25 days for an employee and spouse going on the trip or a
multiplier of 5 days for only one person going on the HHT], when
they could use the traditional method and receive up to 10 days'
[sic] worth of the locality rate? Simply saving the trouble of
submitting receipts is not a sufficient motivator to forego 5 days'
[sic]
[[Page 18328]]
worth of the locality rate. Even if transferees found that the ease
of paperwork and the benefit of having their reimbursement paid up-
front convinced them to use the lump sum benefit anyway, the fact
that the FTR contains this inconsistency is reason enough to make
the change.
This situation arose when the FTR was converted to its present
plain language format. In the previous edition of the FTR, the HHT
regulation mirrored the temporary quarters subsistence expense (TQSE)
process, where the agency either reimbursed the employee's actual
expenses for up to 120 days at the lower standard CONUS rate or
calculated a lump sum reimbursement for up to 30 days, at the higher
locality rate.
Transferees do actually choose the lump sum option for TQSE, but
they do not tend to choose the lump sum for HHTs because the error
removed the intended economic incentive. Agencies report that because
of the error, the lump sum option for HHTs is underutilized, while the
lump sum option for TQSE is frequently chosen.
By emulating the TQSE regulations and correcting the error that GSA
made regarding the existing HHT regulation, real economic incentives
will be realized that will assist employees to manage their HHTs more
efficiently and economically. Additionally, this provides employees
some latitude in allocating those funds to meet an employee's unique
needs that may not be specifically allowed under the reimbursement
method; these might include, for example, childcare or pet kenneling.
While this change reduces the HHT benefit for those selecting the
actual expense option, the purpose of this change is to correct an
error in the regulation and to support the use of lump sum HHT payments
for this agency-optional benefit. Several agencies viewed this proposed
change as a reduction of benefits and voiced their opposition. GSA
believes that the correction is appropriate, because it establishes the
right incentives. As a result, GSA is changing the FTR as stated in the
GRAB proposed rule.
One private industry comment noted that while the use of CONUS
rates for actual expense TQSE may make sense, there may be a problem
when the lesser CONUS amount is given to an employee on a short
duration HHT because the HHT is closer to a TDY, and it may be
difficult to find long term lodging that will be less expensive. GSA's
response is that the lump sum option gives the employee an incentive to
make the trip quickly and efficiently, without the administrative
burden of monitoring the receipts and the higher cost of an actual
expense HHT.
Two Government comments correctly noted the multiplier for a spouse
and an employee on a HHT should be 1.75 and not 2. GSA agrees and is
making the change.
The Terms Fixed Amount/Lump Sum
No one objected to changing the term ``fixed amount'' to ``lump
sum,'' because ``lump sum'' is a standard industry term. This change
is, therefore, incorporated into this final rule as initially proposed
in the RBPC proposed rule. It affects a number of sections in parts
302-5 and 302-6.
Mode of Transportation for Househunting Trips
This final rule revises section 302-5.14 in subpart A, and adds a
new section to part 302-5, subpart B, to establish a threshold for
determining which mode of transportation (POV or common carrier) should
be authorized for househunting trips. This final rule sets a threshold
of 250 miles, below which the agency normally will authorize driving a
POV. Several comments on the RBPC proposed rule noted the Government
cannot force an employee to drive a POV. While FTR section 302-5.14
does allow limiting transportation reimbursement to the authorized
modes, including POV, this final rule recognizes exceptions and offers
several examples of circumstances in which restricting an employee
reimbursement to POV mileage may not be appropriate.
Lump Sum Payments for TQSE
This final rule revises part 302-6, subpart C, to encourage the use
of lump sum payments for TQSE, to allow the agency to require proof
that temporary quarters (TQ) were actually occupied, and to simplify
the discussion of factors to consider related to lump sum TQSE.
Some comments based on the RBPC proposed rule asked GSA to require
proof that the employee occupied TQ in every case. Other comments
stated that the option for agencies to request proof did not need to
exist at all. GSA has decided to make this proof something that an
agency may choose, retaining the language from the proposed rule on
this point.
Other comments asked that GSA provide the language and/or a form
for the proof that the agency may require. GSA has decided to give the
agencies the discretion to choose what form of proof they will accept
due to the wide variation of systems and processes amongst agencies.
GSA will, as always, offer its assistance to any agency that needs it,
but does not feel that a mandate would clarify this issue.
Factors To Consider When Offering Lump Sum Payments
GSA received no objections to the RBPC proposed revision to section
302-6.304, which explains the factors an agency should consider when
determining whether to offer an employee a lump sum payment option for
TQSE; therefore, the language in the RBPC proposed rule is retained
without change.
Lump Sum TQSE/Certification of TQSE Expenses
This final rule adds new section 302-6.305 based on the RBPC
proposed rule. This new section requires that agencies obtain a
statement, in advance, from employees who select lump sum TQSE
reimbursement. This statement will certify that TQSE expenses will be
incurred in order to receive the lump sum payment. Three agencies
supported the use of these certifying statements.
Three other comments centered on the difficulty in creating a
distinct document for those receiving TQSE. This is not the intention
of this rule. Similar to the addition of disclosure statements in
section 302-2.100, the intent here is for agencies to make this
statement part of the initial service agreement rather than a separate
document. A lump sum program is based upon simplicity and any lump sum
program should maintain this simplicity in its implementation.
Two additional comments stated that this certification is too
simple a threshold to meet and that any agency program providing TQSE
that is too expensive should correct their internal process without
burdening the other agencies. GSA agrees that this certification does
not free any agency from monitoring their TQSE program and eliminating
the actual (or lump sum option) if it is abused by agency employees.
GSA also believes that adding the statement to the service agreement is
not a significant burden for any agency.
Payment to the Employees of a TQSE Lump Sum
New section 302-3.306 requires that a TQSE lump sum payment be made
to an employee prior to occupancy of temporary quarters (TQ). The main
advantage of using lump sum TQSE is that an employee will know exactly
what he or she is going to receive for subsistence expenses and how
long the money has to last. This removes some of the confusion inherent
in actual expense TQSE. GSA received few
[[Page 18329]]
comments on this point, thus, the language from the RBPC proposed rule
has been retained in this final rule.
Definition of ``18,000 Pounds Net''
The lack of a definition for ``18,000 pounds net'' in section 302-
7.2 has caused frequent confusion. All of the comments received in
regards to this subject either favored the change in the RBPC proposed
rule or asked for small revisions that GSA has adopted.
However, the RBPC proposed rule's definition of ``net'' was not
clear as it could be interpreted to apply only to the weight of the
household goods or to the difference in the weight between the unloaded
weight of the truck and the loaded weight of the truck (the latter of
which would include the weight of the truck, the household goods, and
any necessary packing materials). GSA has chosen to establish a simple
rule that allows for up to 2,000 pounds of packing materials for
uncrated or van line shipments, in the newly designated section 302-
7.13(a). Thus, in most circumstances, the Government will pay for the
shipment of up to 18,000 net pounds of uncrated household goods plus up
to 2,000 pounds of packing materials. The employee will be responsible
for the cost of packing and shipping anything over the 18,000 pounds
net weight allowance.
GSA recognizes that some agencies impose lower weight limits in
special circumstances, especially when transferring employees into
government-furnished quarters in CONUS or OCONUS. This final rule
explicitly allows agencies to impose lower limits as appropriate,
including lower limits on the weight of packing materials.
Rules for Shipping Professional Books, Papers, and Equipment (PBP&E)
Since there were no comments about the proposed changes to sections
302-7.4 and Sec. 302-7.5, relating to PBP&E, the language in the RBPC
proposed rule is retained without change.
Authorized Origin and Destination Points for the Transportation of
Household Goods (HHG) and PBP&E
DoD requested that section 302-7.6 further define the authorized
origin and destination points for household goods shipments. GSA agreed
with the request and has refined the chart in this section. This action
is not a change in policy but rather a clarification of practices that
already exist.
Where Household Goods (HHG) May Be Temporarily Stored
The RBPC proposed rule clarified where HHG may be temporarily
stored (section 302-7.8). This received favorable comments. Two
comments suggested further modifications that would have made storage
at the destination the primary choice. GSA has chosen to keep this new
paragraph as simple as possible, so it remains unchanged from the
proposed rule.
Limit on Time HHG Can Be Temporarily Stored
GSA received 23 comments on both proposed rules to change the
current section 302-7.8, which would reduce the overall time allowed
for temporary storage.
GSA received 19 comments on the RBPC proposal to reduce the overall
time allowed for temporary storage from 90 days plus a possible 90-day
extension to 60 days plus a possible 90-day extension. The proposed
rule also stated: ``The number of days authorized for HHG storage must
coincide with the number of days authorized for TQSE.'' The summary of
comments received on the RBPC proposal is as follows:
Three comments favored the changes as proposed.
Four comments asked that GSA reverse the pairing, so that
the initial period would be 90 days and the possible extension would be
60 days.
One comment said that 150 days overall can be too short
for moves involving OCONUS locations. GSA resolved this by making the
60-day period apply only to CONUS to CONUS moves.
Seven comments said that the number of TQSE days should
not be linked to the number of temporary storage days.
Four comments opposed the change (with three of them
stating that TQSE days and temporary storage days should not be
linked).
The GRAB proposed an even greater reduction than the RBPC proposal.
GSA received four comments on the GRAB proposal to reduce the overall
time allowed for temporary storage to 60 days plus a possible 30-day
extension.
One comment suggested changing the time allowed for
temporary storage to 45 days with a possible 45-day extension.
One comment suggested linking the temporary storage days
to TQSE.
One comment said the number of days allowed should be left
at ninety days, but also requested the ability to grant a waiver for an
indefinite time period in extenuating circumstances.
One comment rejected the changes.
In summary, most comments opposed linking the number of storage
days and the number of TQSE days, and most comments expressly or
implicitly agreed with reducing the total number of days allowed to
150. GSA agrees that the two should not be linked, but GSA disagrees
with the comments that suggested reversing the pairing. GSA believes
that the initial 60-day period sends the right message to the employee
regarding the intended purpose of temporary storage, while the longer
possible extension allows the agency to deal with a wider variety of
special circumstances.
Thus, this final rule does not link HHG storage days to TQSE days.
This final rule allows an initial period of 60 days with a possible
extension of up to 90 days for CONUS to CONUS moves, and it keeps the
90 days with a possible 90-day extension for moves that have an
authorized origin and/or destination that is OCONUS.
The changes above appear in the newly redesignated sections 302-7.9
and 302-7.10.
Method of Shipment for HHG, PBP&E, and Temporary Storage
GSA received no relevant comment on the RBPC proposal to clarify
section 302-7.16, so this final rule includes the text as initially
proposed.
Responsibility for Payment of Weight Additives
The RBPC proposed rule, regarding the newly redesignated section
302-7.21, detailed the employee's responsibility for payment of weight
additives. Weight additives are additional costs charged by the carrier
for oversized or bulky items. These costs are generally assessed by the
carrier in terms of additional weight to the shipment, so that the
number of pounds charged often exceeds the actual weight of the
item(s). The existing Sec. 302-7.20 conflicts with a General Services
Board of Contract Appeals (GSBCA) decision (GSBCA 16131-RELO, July 21,
2003).
This final rule adopts the rationale of the GSBCA decision, thereby
not making the transferee responsible for the extra weight caused by
using weight additives. Since weight additives are not related to the
true weight of the items shipped, they should not be included in the
statutorily based 18,000 pound net limit.
One comment stated that, as written, the proposed rule held the
employee responsible for both the extra weight and the preparation
charges. This final rule makes the employee responsible for the cost of
building any special packing or crating, as well as the cost of any
special handling that the weight additive items require; at the same
time, only their actual weight will be considered in determining
whether the employee has exceeded the 18,000
[[Page 18330]]
pounds net weight allowance for shipping purposes.
Unaccompanied Air Baggage (UAB)
The sections of the RBPC proposed rule that dealt with
Unaccompanied Air Baggage (UAB) received generally positive comments.
One Government comment did ask for authority to set individual agency
limits on the weight of UAB. GSA did not include a provision to do this
as UAB is already limited by being included in the overall HHG weight
limit. This final rule redesignates part 302-7, subpart D, as subpart E
(Agency Responsibilities) and adds a new subpart D (Baggage Allowance)
to incorporate policies for including UAB as part of, and not in
addition to, the HHG weight allowance for moves from a CONUS
(Continental United States) location to an OCONUS (Other than
Continental United States) location, OCONUS to OCONUS, and OCONUS to
CONUS. GSA has addressed the remaining comments by making a number of
minor textual additions.
The RBPC proposed rule would have added UAB to the discussion of
PBP&E in section 302-7.4. In this final rule, GSA has chosen not to
discuss UAB in this section, because PBP&E is not part of the 18,000
pounds net weight allowance for HHG (though it is often included in the
HHG shipment), while UAB is always part of the allowance. GSA prefers,
for regulatory consistency, to keep all of the material related to UAB
together, in part 302-7, subpart D.
It is important for agencies to note that any UAB reduces the
amount of HHG that can be shipped, because the statutes that govern the
FTR do not provide for a separate allowance for UAB above and beyond
the 18,000 pounds net HHG allowance. Another important point to note is
that the FTR does not permit UAB for domestic (CONUS to CONUS)
relocations.
Two comments stated a preference for using the lower UAB weights
that the Department of State (DoS) prescribes for members of the
Foreign Service, as opposed to those provided for uniformed personnel
by the DoD in the Joint Federal Travel Regulations (DoS allows 250
pounds for the employee, while DoD allows 350 pounds). In section 302-
7.302, GSA is adopting the more generous DoD UAB weights, choosing to
provide more flexibility for agencies despite the small added cost.
Agencies subject to the FTR that are authorized to use and have
incorporated the DoS Foreign Affairs Manual (FAM) into their internal
agency regulations for overseas travel will continue to receive lesser
amounts of UAB in conformity with the FAM. However, under the FAM, UAB
is not part of the 18,000 pounds net weight allowance. The FAM limits
would continue in use unless these agencies choose to change their
internal policies to adopt the FTR UAB limits.
Arranging and Paying for Transportation of HHG and UAB
This final rule adds a new section, section 302-7.405, which
regulates the arranging and paying for transportation of HHG and UAB.
As several comments noted, the RBPC proposed rule included an erroneous
table for constructing the cost of this transportation. This final rule
replaces this table with a simple formula.
Number of POVs That May Be Transported Within CONUS at Government
Expense
This final rule amends section 302-9.302, and adds a new section to
part 302-9, subpart F, to limit the number of POVs that may be
transported within CONUS at Government expense to two. The current
limit of one POV for the transportation, at Government expense, for
OCONUS remains unchanged.
Two commenters on the RBPC proposed rule stated that agencies
should be able to make a decision to ship more than two POVs on a case
by case basis. GSA, the RBPC, and two other comments believe the
proposed limit of two POVs for CONUS relocations is a reasonable
requirement to add to the regulation. A limit is necessary, and two was
the consensus of the agencies involved in the RPBC.
GSA received strong negative comments on the proposed rule
provision in sections 302-9.301, 302-9.504, and 302-9.505, that a POV
shipped must have a value larger than the shipping cost. Instead, this
final rule requires an agency to consider whether the POV is in
operating order and is legally titled and tagged prior to authorizing
transportation of the POV.
The Phrase ``With Appropriate Supporting Documentation Provided by
You''
The RBPC proposed rule replaced the introductory paragraph in
section 302-11.200 to re-emphasize that residence transaction costs may
not exceed those customarily charged in the locality where the
residence is located. One comment suggested that the burden of proof be
placed on the employee; this has always been true, but the FTR did not
say this explicitly.
Therefore, this final rule adds the phrase ``with appropriate
supporting documentation provided by you,'' to clarify that the burden
of proof regarding a customary expense in a geographic area rests with
the employee. This change to section 302-11.200 strengthens the wording
to ensure that the employee understands that he/she must provide
appropriate supporting documentation to support a claim for
reimbursement.
A single comment was made against this provision, preferring
language stating, ``as long as the employee is acting within reason,
the transaction fees should be reimbursed.'' This is a weaker standard,
which GSA chose not to adopt because it does not provide a uniformly
clear standard to measure against.
Homesale Counseling
The GRAB proposed rule, in part 302-12, included a requirement that
employees enrolled in a homesale program agree to participate in
counseling.
One problem inherent in homesale programs is the complexity of the
various programs. Direct reimbursement, by contrast, can be much easier
to understand. If savings are going to be realized through the use of
homesale programs, employees must understand the options thoroughly,
preferably before making the decision to participate in a homesale
program. The best way to enhance the employee's understanding is by
having the employee participate in counseling that details the process
and options. The counseling helps the agency, the relocation services
company (RSC), and the employee, because it clarifies what the employee
must do to participate in the program and what options the employee
should consider while selling his or her home. The agency has a
responsibility to monitor these counseling sessions and to ensure that
the materials, and the way that they are presented, are fair and useful
to the employee.
The comments on the GRAB proposed rule were generally supportive of
mandatory counseling. However, several of the comments asked that the
regulation require that the counseling sessions occur before the
employee is permitted to list their residence for sale. GSA recognizes
this as a best practice that fits many situations, and agencies are
welcome to include this requirement as a provision in contracts with
RSCs. However, GSA believes that mandating this on a Governmentwide
basis would be inappropriate, because there are many situations in
which such a requirement may impose a serious burden on the agency and/
or the employee.
[[Page 18331]]
One comment to this provision asked what venues would be
permissible for the required counseling. GSA has addressed this in
section 302-12.3 by stating that counseling may be provided by the
agency or the RSC and may occur electronically or in person.
Evaluation of Relocation Programs
This final rule requires that agencies regularly examine and
evaluate the objectives and relative costs of their relocation benefits
and management processes to determine whether or not a comprehensive
homesale program should be part of their relocation programs, under
section 302-12.105.
The Government is significantly different from private industry in
their contracts with RSCs for administering homesale programs. The
Government cannot legally assume title to the property from a homesale
program, while most private sector companies using RSCs do assume
title. Therefore, the RSCs charge the Government more than they charge
private companies, to cover the additional risk that the RSC assumes
for each property. This incorrectly gives the appearance to agencies
that RSC-managed homesale programs are more expensive than direct
reimbursement for homesale costs. Other factors also make the homesale
programs appear more expensive to Government managers. As the GRAB
final report states:
Most agencies that do not offer their transferees access to a
home-sale program base the decision on a perception that
reimbursements of direct home-sale costs are lower than the fees
generally associated with a RMC [RSC] home-sale program (e.g., up to
10% of the home-sale price for direct reimbursement versus up to
23.5% for a RMC [RSC] home-sale program under [GSA Multiple Awards]
Schedule 48). This perception ignores the fact that direct
reimbursements are taxable income to the employee and, therefore,
typically require added reimbursement from the Government to cover
that tax liability, whereas properly structured RMC-[RSC-] assisted
homesales are not.
The GRAB recommended that the FTR make it mandatory that each
agency implement a comprehensive homesale program, including amended,
appraised, and BVO sales. GSA strongly supports homesale programs but
does not have statutory authority to mandate that all agencies
implement a homesale program. Under current statutes, the employee
always has the right to demand direct reimbursement; that is, the
employee cannot be forced into a homesale program.
This final rule includes a number of provisions to address homesale
programs, as discussed further throughout this final rule section.
Agency Flexibility in Broker Selection
The GRAB and various commenters to the GRAB proposed rule
recommended that GSA mandate transferees to use brokers provided by the
RSC. While GSA recognizes that many private sector companies include
this requirement in their contracts, GSA does not believe that it
should be mandatory across the Government. GSA has, therefore, in
section 302-12.111, given agencies express permission to include this
provision in their contracts without a Governmentwide mandate.
One comment asked: ``Who provides the broker?'' GSA does not
believe it is appropriate to mandate an answer to this question.
Rather, this should be either a contractual issue between the agency
and the relocation services provider, or it should be left to the
determination of the employee.
Agency Flexibility in Mortgage Service Provider Selection
The GRAB and various commenters to the GRAB proposed rule
recommended that GSA mandate transferees to use mortgage service
providers provided by the RSC. This is prohibited under the Real Estate
Procedures Settlement Act (RESPA), and this regulation cites that
prohibition in the new section 302-12.112.
Potential Tax Issues From a Homesale Program
A comment accurately stated that the tax implications of the BVO
option are still unclear. GSA is carefully monitoring the ongoing
discussions between the RSCs and the IRS. GSA believes that a properly
structured homesale program will typically relieve the employee and
agency of taxes on the homesale costs, thereby reducing the overall
cost to the agency that is funding the relocation. This rule also
reminds the agencies, in section 302-12.113(a), to consider the tax
implications in structuring their homesale programs.
Direct Payment of Property Management Service Fees
Only one comment to the GRAB proposed rule even noted the revision
of section 302-15.70, which clarifies the allowance for direct payment
of property management service fees to the Government employee, so this
change is included in this final rule as initially proposed.
Allow Broader Use of the Miscellaneous Expense Allowance (MEA) Under
Part 302-16
The FTR currently limits the MEA to expenses related to
discontinuing or establishing a residence. The GRAB recommended that
this limitation be removed, so that the transferee would be able to use
the MEA to cover any expenses that emerge in a relocation, whether they
are prior to or after the residence transactions. Quoting from the GRAB
final report:
Currently, the FTR does not provide any reimbursement mechanism
for expenses incurred by employees relating to pet care, child care,
or adult care for aging parents who are dependents of the relocating
employee. The employee typically incurs these costs while taking a
househunting trip. Additionally, employees are `challenged' as the
FTR does not provide for any reimbursement for children to accompany
the employee on a househunting trip.
Much like the lump sum househunting payments mentioned above, the
employee should be free to use his or her judgment to make sure the MEA
money is used wisely. In private industry, such payments are used to
give transferees monies to handle their needs without having to voucher
for reimbursement. This change also eliminates the need for the
Government to specify what is covered by the MEA.
A standard payment for private industry is based on a month's
salary, capped at a specified amount, such as $7,500. At this time, the
MEA payment to Federal employees remains statutorily limited to one or
two week's salary for a GS-13 step 10, depending upon family status.
GSA has addressed this limitation in a legislative proposal that would
give the Administrator authority to set an appropriate rate without the
current rigid restrictions.
GSA received no negative comments on the above proposal in the GRAB
proposed rule and several positive comments from both industry and
Federal agencies. Thus, GSA is adopting this proposal as final.
This final rule incorporates one additional change in the MEA
section, using the phrase ``and similar items'' when referring to a
list of various items. The General Services Board of Contract Appeals
(now the Civilian Board of Contract Appeals) prefers this language to
the phrase ``including but not limited to'' that the FTR currently
uses.
Proposed Change Handled by Another Final Rule and Not Addressed in This
Rule: Mileage Reimbursement Rate
The POV mileage rate for PCS travel in section 302-4.300, which GSA
initially included in the RBPC proposed
[[Page 18332]]
rule, was addressed in final rules published in the Federal Register on
June 27, 2007 (72 FR 35187) and on December 11, 2007 (72 FR 70234).
Proposed Changes That Were Not Retained in the Final Rule
Days Allowed for HHT
The RBPC proposed rule would have reduced the maximum number of
days allowed for a househunting trip under section 302-5.11 from 10 to
8. Based on the large number of negative comments GSA received on this
provision and the internal discussions that followed, GSA agrees not to
reduce the number of days for a househunting trip from 10 to 8 in this
final rule. This section remains as currently stated in the regulation.
Actual Reimbursement for TQSE
In the RBPC proposed rule, GSA failed to highlight an important
proposed change in the actual expenses reimbursement for TQSE.
Specifically, GSA proposed to reduce the TQSE reimbursement in part
302-6, subpart B, for any authorized period in TQ above 30 days but
failed to include this change in the list of proposed changes in the
Preamble. This was an inadvertent error which unfortunately deprived
GSA of most input.
In response to this error, one comment stated: ``This is a major
change and was easily left out of the background, if not intentionally
hidden.'' This was not GSA's intention.
In the current economic environment, GSA believes that reducing the
TQSE reimbursement will not assist agencies or employees because of the
slow sales of residential properties. Scenarios where Government
employees must be in TQ for longer than 30 days have become much more
common. For these reasons, GSA is not at present reducing the TQSE
reimbursement after 30 days.
Clarifying the Difference Between Mandatory and Discretionary
Relocation Allowances
The GRAB wanted to ensure that the FTR highlights which relocation
benefits are mandatory and which are discretionary. To do this, the
GRAB identified two errors that needed to be corrected in the tables
outlining benefits. GSA received no comments on this item in the GRAB
proposed rule. However, in the time since publication of the proposed
rule, GSA has discovered at least three additional errors in the
tables. Therefore, to ensure that the tables and associated regulatory
language are entirely correct, and to expedite these critical
components of the FTR, GSA will address these items in their own
separate rule.
Calculating Constructive Cost
GSA received several comments about RBPC proposed Appendix A to
part 302-7. The proposed Appendix attempted to clarify the calculation
of constructive cost. The comments all indicated the proposed new
language would have created more confusion than clarity. GSA agrees;
therefore, the RBPC proposed Appendix A to part 302-7 was not adopted.
Conditions Required for Use of a RSC
The GRAB proposed rule at section 302-12.3 contained several
conditions to which an employee must agree before entering a contract
with a RSC. These conditions are no longer considered best practices
and therefore are not included in the new section 302-12.3 of this
final rule. GSA also wishes to maintain flexibility during rapidly
changing economic conditions; therefore, GSA will issue further
guidance about RSCs by publishing a bulletin available at http://www.gsa.gov/ftrbulletins.
Standard RSC Contract Provisions
The GRAB proposed rule said that agencies should give first
consideration to BVO and second consideration to amended value sales.
GSA's review of the comments and internal discussions of this provision
led to a different approach which, GSA believes, will accomplish the
same objective in a more straightforward manner. Examples of RSC
contract provisions are contained in new section 302-12.4, but these
provisions are not to be considered mandatory. New section 302-12.4
also provides agencies with the flexibility to choose the RSC contract
provisions that will work best for their own individual home sale
programs. GSA will issue periodic bulletins at a later date, available
at http://www.gsa.gov/ftrbulletins, to further address standard RSC
contract provisions and to create a template for agencies to use when
developing home sale programs. GSA is addressing this issue in
bulletins instead of in this final rule to ensure that agencies can
maintain maximum flexibility.
Agency Flexibilities in Listing Periods and Percentage of Guaranteed
Offer
GSA initially intended to set the contract timeframes in a template
that would have been included in the question and answer portion of the
FTR. Because of changing market conditions, and several comments from
the GRAB proposed rule noting different percentages and time periods,
both higher and lower, it seems appropriate for GSA to avoid overly
rigid rules. Instead, GSA has chosen to include this type of
information in future FTR Bulletins and/or handbooks.
Issues Mentioned in Comments But Not Addressed in This Final Rule
Many of the remaining comments received are clearly of interest,
but GSA is unable at this time to incorporate them into this final rule
because of lack of legislative authority or because the comment was
outside the scope of either proposed rule.
Change the Storage Allowance for the Temporary Storage of Household
Goods by Amending Section 302-7.8
In a comment to the GRAB proposed rule, one Government agency asked
GSA to extend the 180-day limit for temporary storage. GSA accommodated
this request by granting the agency a waiver addressing the specific
situation involved with this need.
Prepayment Fees on Residence Transactions
One comment to the RBPC proposed rule suggested that part 302-11,
subpart C, be amended to cap prepayment penalty fees on residence
transactions to three months interest on the loan balance, not to
exceed $6,000 per property. This was a growing problem when interest
rates were rising and it continues to be a problem for transferees
selling refinanced properties. GSA is reviewing the issue, but will
need more information about its prevalence before including this in the
FTR.
Single Employees
One comment to the RBPC proposed rule pointed out that the proposed
rule failed to address many issues that single employees face in
transferring because, unlike a family, they do not have multiple TQSE
payments to equal a larger sum. This issue is especially prevalent in
transfers to higher cost areas. However, no statutory authority exists
to treat single employees differently than married employees.
Relocation Income Tax Allowance (RITA) Calculation and Reimbursement
One comment to the RBPC proposed rule addressed a specific case
concerning an agency's failure to perform the RITA calculation and
reimbursement in an appropriate timeframe. The RITA section is
currently being rewritten, and the team is aware of this comment.
Cost Analysis
Two comments to the RBPC proposed rule expressed concern because
the proposed rule did not include a cost analysis of the regulatory
changes. The
[[Page 18333]]
purpose of the new sections in sections 302-1.100 through 302-1.110 is
to make it more likely that the agency reporting requirements in part
300-70 result in delivery of relocation cost data to GSA and the Office
of Management and Budget (OMB) in a timely, accurate, and useful
manner. The agency reporting requirements are currently mandatory, but
not widely followed. As soon as agencies begin providing accurate and
complete data, GSA and OMB will have the facts and figures to build
stronger arguments to support regulatory and legislative changes based
upon cost analyses. In the current Government environment, reliable
data regarding relocations is not available without laborious voucher-
by-voucher examination.
One of the two comments on cost analysis specifically compared the
IRS-driven private industry practice to the Government relocation
regulation practice, and stated that the RBPC and GRAB proposed rules
would not reduce regulatory burden. It is GSA's and GRAB's position
that in private industry, relocation is driven as much by human
resource considerations as by IRS considerations, if not more so. Many
private industry relocation packages, especially for individuals in
executive or senior management positions, are tailored to the position.
This is much less true in the Government, where as a general rule, one-
size-fits-all regardless of position. By emulating private industry
practices to the extent that makes legal and fiscal sense, the
Government makes it easier to include a relocation package as part of a
comprehensive human capital planning and retention program, as
envisioned by the GRAB.
Spousal Employment Assistance
One comment on the RBPC proposed rule suggested that a provision
for spousal employment assistance be included in the FTR. The comment
said: ``This assistance is needed most urgently by the military spouses
who relocate more frequently than private sector spouses.'' Spousal
employment assistance would require a legislative change before GSA
could incorporate it into the FTR. Therefore, GSA has included a
provision to cover spousal employment assistance in its legislative
proposal.
C. Changes to Current FTR
This final rule--
Corrects the authority citation for part 300-3;
Amends section 300-3.1 to add the terms and definitions
for ``Accompanied Baggage,'' ``Amended Value Sale,'' ``Appraised Value
Sale,'' ``Buyer Value Option,'' and ``Relocation Services Company,''
and revises the definitions for ``Non-foreign area,'' and ``Household
Goods (HHG),'' to include ``Unaccompanied Air Baggage (UAB)'';
Corrects the authority citation for part 300-70;
Revises sections 300-70.1 and 300-70.2 to incorporate data
collection requirements;
Adds a subpart B to part 302-1, containing three sections
that describe a comprehensive relocation management system, urge
agencies to adopt a comprehensive relocation management system, and
reiterate the requirement to report to GSA on relocation activities.
This final rule changes the report's frequency to annually but removes
the specific due date for those reports from the FTR. Instead it
specifies that the due date will be provided in future FTR Bulletins;
Amends section 302-2.6 to follow the distance guidelines
stated in Internal Revenue Service Publication 521, Moving Expenses, by
requiring that the commute to the employee's new job location from his/
her old residence increase by at least 50 miles, via the shortest
commonly traveled routes, to be eligible for relocation benefits;
Amends sections 302-2.8, 302-2.9, 302-2.10, 302-2.11, and
302-2.110 to reduce the length of time to complete a relocation from
two years to one year;
Further amends sections 302-2.11 and 302-2.110 to reduce
the length of time for relocation extensions from two years to one
year;
Amends section 302-2.12 to include the duplicate
disclosure statement as part of the service agreement;
Adds new sections 302-2.20 and 302-2.21 to part 302-2,
subpart A, redesignates current sections 302-2.20 through 302-2.22 as
sections 302-2.22 through 302-2.24, and amends section 302-2.100, to
require disclosure statements so that one Federal agency will not pay
for relocation expenses that are being paid for by another Government
agency or private source;
Amends section 302-2.103 by adding paragraph (e) to
require counseling of every relocating employee and to recommend
counseling before an employee accepts a new position that requires
relocation;
Revises section 302-3.315 relating to separation travel
timing and extensions;
Amends section 302-4.100 to include a reference to section
302-5.13;
Corrects the authority citation for 41 CFR part 302-5;
Amends the chart in section 302-5.13 to make the standard
CONUS rate the operative per diem rate for calculating actual expense
househunting trip per diems, and clarifies the availability and use of
lump sum reimbursements;
Amends sections 302-5.15, 302-5.16, 302-5.18, 302-5.101,
302-5.103 (to be redesignated as sections 302-5.104, 302-6.11, 302-
6.12, 302-6.301 and 302-6.304, respectively) by replacing the term
``fixed amount'' with the term ``lump sum'' and by other administrative
changes, where applicable;
Revises section 302-5.14, redesignates current section
302-5.103 as section 302-5.104, and inserts a new section 302-5.103,
all to establish a 250-mile threshold for determining the mode of
transportation (POV or common carrier) to be authorized for a
househunting trip;
Corrects the authority citation for 41 CFR part 302-6;
Amends section 302-6.15 to correct citations;
Amends part 302-6, subpart C, including adding a new
section, to encourage the use of lump sum payments because of the
administrative efficiency, as well as the potential for cost savings;
Amends section 302-6.304 by revising it to explain the
factors to consider when deciding to offer lump sum payments;
Redesignates section 302-6.305 as section 302-6.307 and
adds two new sections to subpart D, regarding TQSE payments, requiring
employees who select lump sum TQSE reimbursement to certify that TQSE
expenses will be incurred, and ensuring that payment to the employee of
TQSE lump sum will be made prior to occupancy of TQ;
Corrects the authority citation for part 302-7;
Amends section 302-7.1(d) by adding citations;
Revises section 302-7.2 and the table in newly designated
302-7.13 to clarify that the definition of 18,000 pounds net weight
allowance for household goods does not include packing materials for
uncrated and van line shipments;
Replaces sections 302-7.4 and 302-7.5 to clarify who pays
for shipping professional books, papers and equipment (PBP&E) and to
explain what happens when a HHG shipment includes PBP&E and exceeds the
net weight allowance;
Replaces the current section 302-7.6 with a new section
302-7.6, which more clearly delineates authorized origin and
destination points for HHG;
[[Page 18334]]
Adds a new section 302-7.8 to clarify where HHG may be
temporarily stored and redesignates sections 302-7.8 through 302-7.20
as sections 302-7.9 through 7.21;
Amends the redesignated sections 302-7.9 and 302-7.10 to
limit HHG storage to 60 days with a possible 90-day extension for CONUS
to CONUS moves and keeps the 90 days with a possible 90-day extension
for moves that have an authorized non-CONUS origin and/or destination;
Revises newly designated section 302-7.16 to clarify the
selection of the method of shipment as designated by agency;
Revises newly designated section 302-7.21 to specify the
responsibility for payment of weight additives;
Redesignates and amends part 302-7, subpart D, as subpart
E (Agency Responsibilities) and adds a new subpart D (Baggage
Allowance) to incorporate policies for including unaccompanied air
baggage in the HHG weight allowance;
Amends the newly designated section 302-7.400 to revise
three of the existing conditions and add three new conditions that
agencies must consider in their policies and procedures;
Revises the newly designated sections 302-7.401 through
302-7.403 to conform with other changes to part 302-7;
Corrects the authority citation for part 302-9;
Adds a new section 302-7.405, which provides guidance on
arranging and paying for the transportation of HHG and unaccompanied
air baggage;
Amends sections 302-9.11, 302-9.140, and 302-9.170 to
correct citations;
Adds two additional conditions to section 302-9.301 that
agencies must consider before authorizing transportation of a privately
owned vehicle (POV) within CONUS, to ensure that agencies are not
domestically transporting a POV unless it is in operating order and
legally titled and tagged for driving;
Amends section 302-9.302 to establish a limit for the
number of POV's that may be transported within CONUS at Government
expense at two;
Redesignates current sections 302-9.501 through 302-9.505
as sections 302-9.502 through 302-9.506 and adds a new section 302-
9.501 to incorporate the limit of 2 POVs shipped at Government expense;
Revises the newly designated sections 302-9.505 and 302-
9.506 to ensure that agencies are not domestically transporting a POV
unless it is in operating order and legally titled and tagged for
driving and to limit agency shipment of a POV to a distance of 600
miles or more;
Revises section 302-11.2 and adds the requirement of
agencies to follow the distance test specified in section 302-2.6;
Revises section 302-11.21 to reduce the time limit for
settlement of residence transactions from two years to one year;
Revises section 302-11.22 to reduce the time limit for
extensions for settlement of residence transactions from two years to
one year;
Amends section 302-11.200 by revising the introductory
paragraph to clarify that reimbursement of residence transaction
expenses is limited to amounts customarily charged where the residences
are located with the requirement that the employee provide appropriate
supporting documentation;
Revises section 302-11.404 to reduce the time limit for
settlement of residence transactions from two years to one year;
Revises section 302-11.420 to reduce the time limit for
extensions for settlement of residence transactions from two years to
one year;
Revises section 302-11.421 to reduce the time limit for
extensions for settlement of residence transactions from two years to
one year;
Amends part 302-12, subpart A, to establish a requirement
for counseling all employees who participate in homesale programs, to
update the conditions under which an employee may use the agency's
relocation service company contract, and to provide examples of
contract terms the employee may be required to agree to;
Amends part 302-12, subpart B to require that agencies
examine and evaluate the objectives and relative costs of their
relocation benefits and management processes to determine whether they
should have a comprehensive homesale program, and to list the policies
and procedures that an agency must have as part of their comprehensive
homesale program;
Corrects the authority citation for part 302-15;
Revises section 302-15.2 to correct a grammatical error;
Revises section 302-15.10 to reduce the time limit for
agency payment of property management services from two years with the
possibility of a 2-year extension to one year with the possibility of a
1-year extension;
Revises section 302-15.70 to allow for direct payment of
property management service fees to the relocating Government employee,
when appropriate;
Amends authority citation for section 302-16; and
Amends sections 302-16.1 and 302-16.2 by switching the
order of the two sections to make a better logical point and by
removing the connection between the miscellaneous expense allowance and
the establishment and discontinuance of a residence.
Because of the insertion of several new sections in the existing
regulation, some existing sections will be redesignated, and therefore,
several cross-references will also be changed. This final rule makes
those changes.
D. Executive Order 12866
This regulation is excepted from the definition of ``regulation''
or ``rule'' under section 3(d)(3) of Executive Order 12866, Regulatory
Planning and Review, dated September 30, 1993 and, therefore, was not
subject to review under section 6(b) of that Executive Order.
E. Regulatory Flexibility Act
This final rule will not have a significant economic impact on a
substantial number of small entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the
revisions are not considered substantive. This final rule is also
exempt from the Regulatory Flexibility Act per 5 U.S.C. 553 (a)(2)
because it applies to agency management or personnel. However, this
final rule is being published to provide transparency in the
promulgation of Federal policies.
F. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the Federal Travel Regulation do not impose recordkeeping or
information collection requirements, or the collection of information
from offerors, contractors, or members of the public that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
G. Small Business Regulatory Enforcement Fairness Act
This final rule is also exempt from congressional review prescribed
under 5 U.S.C. 801 since it relates solely to agency management and
personnel.
List of Subjects in 41 CFR Parts 300-3, 300-70, 302-1, 302-2, 302-
3, 302-4, 302-5, 302-6, 302-7, 302-9, 302-11, 302-12, 302-15, and
302-16
Government employees, Travel and relocation allowances.
[[Page 18335]]
Dated: January 28, 2011.
Martha Johnson,
Administrator of General Services.
For the reasons set forth in the preamble, under 5 U.S.C. 5701-
5738, GSA amends 41 CFR parts 300-3, 300-70, 302-1, 302-2, 302-3, 302-
4, 302-5, 302-6, 302-7, 302-9, 302-11, 301-12, 302-15, and 302-16 as
set forth below:
PART 300-3--GLOSSARY OF TERMS
0
1. The authority citation for 41 CFR part 300-3 is revised to read as
follows:
Authority: 5 U.S.C. 5707; 40 U.S.C. 121(c); 49 U.S.C. 40118; 5
U.S.C. 5738; 5 U.S.C. 5741-5742; 20 U.S.C. 905(a); 31 U.S.C. 1353;
E.O 11609, as amended, 3 CFR, 1971-1975 Comp., p. 586, Office of
Management and Budget Circular No. A-126, revised May 22, 1992.
0
2. Amend Sec. 300-3.1 by--
0
a. Adding, in alphabetical order, the definitions ``Accompanied
baggage,'' ``Amended value sale,'' ``Appraised value sale,'' ``Buyer
value option (BVO),'' and ``Relocation service company (RSC)'';
0
b. Adding paragraph (1)(vii) to the definition of ``Household Goods
(HHG)''; and
0
c. Revising the definition ``Non-foreign area.''
The added and revised text reads as follows:
Sec. 300-3.1 What do the following terms mean?
Accompanied baggage--Government property and personal property of
the traveler necessary for official travel.
* * * * *
Amended value sale--Type of home sale transaction that occurs when
the relocating employee receives a bona fide offer from a qualified
buyer before the employee has accepted an appraised value offer from
the relocation services company (RSC). The RSC amends its offer to
match the outside sale price. An amended value sale is different from
an amended from zero sale because an amended value sale occurs after an
appraised value offer while an amended from zero sale occurs before an
appraised value offer.
Appraised value sale--Type of home sale transaction that occurs
when the relocating employee accepts the offer from the RSC to buy the
employee's home based upon the average of a specific number of
appraisals conducted by designated certified appraisers.
* * * * *
Buyer value option (BVO)--Type of home sale program with procedures
the same as the amended value program, except that the RSC does not
initially appraise the employee's home or make a guaranteed buy-out
offer. The buy-out offer from the contractor is based on a bona fide
offer received by the employee from a qualified buyer after marketing
by the employee. Once a bona fide offer is received by the employee,
the contractor offers to buy the home from the employee at a price
based on the outside sale price.
* * * * *
Household Goods (HHG)--
(1) * * *
(vii) Unaccompanied Air Baggage (UAB)--Unaccompanied air baggage
includes personal items and equipment (e.g., pots, pans, light
housekeeping items, collapsible items such as cribs, playpens, and baby
carriages, and other articles required for the care of the family) that
may be shipped by air in accordance with Chapter 302 of this Subtitle.
Household items (i.e., refrigerators, washing machines, and other major
appliances or furniture) are not eligible as UAB.
* * * * *
Non-foreign area--The states of Alaska and Hawaii, the
Commonwealths of Puerto Rico and the Northern Mariana Islands, Guam,
the U.S. Virgin Islands, and the territories and possessions of the
United States (excludes the former Trust Territories of the Pacific
Islands, which are considered foreign areas for the purposes of the
FTR).
* * * * *
Relocation service company (RSC)--A third-party supplier under
contract with an agency to assist a transferred employee in relocating
to the new official station. Services may include: Homesale programs,
home inspection, home marketing assistance, home finding assistance,
property management services, shipment and storage of household goods,
voucher review and payment, relocation counseling, and similar items.
* * * * *
PART 300-70--AGENCY REPORTING REQUIREMENTS
0
3. The authority citation for 41 CFR part 300-70 is revised to read as
follows:
Authority: 5 U.S.C. 5707; 5 U.S.C. 5738; 5 U.S.C. 5741-5742; 20
U.S.C. 905(a); 31 U.S.C. 1353; 40 U.S.C. 121(c); 49 U.S.C. 40118;
E.O. 11609, as amended, 3 CFR, 1971-1975 Comp., p. 586.
0
4. Revise Sec. Sec. 300-70.1 and 300-70.2 to read as follows:
Sec. 300-70.1 What are the requirements for reporting payments for
employee travel and relocation?
Agencies (as defined in Sec. 301-1.1 of this subtitle) that spent
more than $5 million on travel and transportation payments, including
relocation, during the fiscal year immediately preceding the survey
year must report such total agency payments annually, as described in
this part:
(a) Specific information on reporting payments for temporary duty
travel are in this subpart.
(b) Specific information on reporting payments for employee
relocation are in part 302-1 of this subtitle.
Sec. 300-70.2 What information must we report, and when must we
report it?
GSA provides the list of data elements, the report formats, and the
due dates in a series of FTR Bulletins. GSA coordinates these FTR
Bulletins with the affected agencies and updates them as necessary. FTR
Bulletins are available through: http://www.gsa.gov/ftr.
PART 302-1--GENERAL RULES
0
5. The authority citation for 41 CFR part 302-1 continues to read as
follows:
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a).
0
6. Add subpart B to part 302-1 to read as follows:
Subpart B--Requirement to Report Agency Data for Employee
Relocation
Sec.
302-1.100 What is a comprehensive, automated relocation management
system?
302-1.101 What actions are agencies expected to take concerning the
comprehensive, automated relocation management system?
302-1.102 Are agencies required to report their employee relocation
activities to GSA?
Subpart B--Requirement to Report Agency Data for Employee
Relocation
Sec. 302-1.100 What is a comprehensive, automated relocation
management system?
A comprehensive, automated relocation management system is a system
that integrates into a single, electronic environment, information
related to all aspects of employee relocation, including these and
similar items:
(a) Authorizations;
(b) Reimbursements to employees and service providers;
(c) Househunting trips;
(d) Travel to the new permanent duty station;
(e) Temporary quarters;
[[Page 18336]]
(f) Transportation and storage of property;
(g) Residence transactions;
(h) Use of relocation services companies;
(i) Property management services;
(j) Miscellaneous expenses;
(k) Relocation income taxes and allowances;
(l) Appropriate electronic connections to agency payment and
finance processes for all of the above; and
(m) Standard and unique reports for use by agency relocation
managers, agency executives, GSA, and others as needed.
Sec. 302-1.101 What actions are agencies expected to take concerning
the comprehensive, automated relocation management system?
Agencies should work toward unifying all aspects of relocation into
a comprehensive, automated relocation management system.
Sec. 302-1.102 Are agencies required to report their employee
relocation activities to GSA?
Yes, every agency that spends more than $5 million a year on travel
and transportation payments, including relocation, during the fiscal
year immediately preceding the survey year, must annually report their
employee relocation activities to GSA. GSA works with the agencies to
develop and refine the data elements, report format, and due dates for
these reports. GSA publishes these specific requirements in a series of
FTR Bulletins.
PART 302-2--EMPLOYEE ELIGIBILITY REQUIREMENTS
0
7. The authority citation for 41 CFR part 302-2 continues to read as
follows:
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a).
0
8. Revise Sec. 302-2.6 to read as follows:
Sec. 302-2.6 May I be reimbursed for relocation expenses if I
relocate to a new official station that does not meet the 50-mile
distance test?
Generally no; you may not be reimbursed for relocation expenses if
you relocate to a new official station that does not meet the 50-mile
distance test.
(a) The distance test is met when the new official station is at
least 50 miles further from the employee's current residence than the
old official station is from the same residence. For example, if the
old official station is 3 miles from the current residence, then the
new official station must be at least 53 miles from that same residence
in order to receive relocation expenses for residence transactions. The
distance between the official station and residence is the shortest of
the commonly traveled routes between them. The distance test does not
take into consideration the location of a new residence. This follows
the distance guidelines found in Internal Revenue Service Publication
521, Moving Expenses.
(b) The head of your agency or designee may authorize an exception
to the 50-mile threshold on a case-by-case basis when he/she determines
that it is in the best interest of the Government. However, the agency
cannot waive the applicability of the IRC; that is, all reimbursed
expenses would be taxable income to you, and the agency would have to
reimburse those taxes.
(c) Any relocation must be incidental to the transfer and not for
the convenience of the employee.
Sec. 302-2.8 [Amended]
0
9. Amend Sec. 302-2.8 by removing the words ``two years'' and adding
the words ``one year'' in its place.
Sec. 302-2.9 [Amended]
0
10. Amend Sec. 302-2.9 by removing ``2-year'' and adding ``1-year'' in
its place.
Sec. 302-2.10 [Amended]
0
11. Amend Sec. 302-2.10 by removing ``2-year'' in both the heading and
the text and adding ``1-year'' in its place.
Sec. 302-2.11 [Amended]
0
12. Amend Sec. 302-2.11 by--
0
a. Removing ``2-year'' in both the heading and the text and adding ``1-
year'' in its place; and
0
b. Removing ``2 additional years'' and adding the words ``one
additional year'' in its place.
0
13. Revise the undesignated center heading appearing immediately before
Sec. 302-2.12 to read as follows:
Service Agreement and Disclosure Statement
0
14. Amend Sec. 302-2.12 by adding a sentence at the end of the
paragraph to read as follows:
Sec. 302-2.12 What is a service agreement?
* * * A service agreement must also include the duplicate
reimbursement disclosure statement specified in Sec. Sec. 302-2.20,
302-2.21, and 302-2.100(g).
Sec. Sec. 302-2.20, 302-2.21, 302-2.22 [Redesignated as Sec. Sec.
302-2.22, 302-2.23, 302-2.24]
0
15. Redesignate Sec. Sec. 302-2.20, 302-2.21, and 302-2.22 as
Sec. Sec. 302-2.22, 302-2.23, and 302-2.24, respectively.
0
16. Move the undesignated center heading ``Advancement of Funds'' to
precede the newly designated Sec. 302-2.22.
0
17. Add new Sec. Sec. 302-2.20 and 302-2.21, to read as follows:
Sec. 302-2.20 What is a duplicate reimbursement disclosure statement?
A duplicate reimbursement disclosure statement is a written
statement signed by you and submitted to your agency. It states that
you and/or your immediate family have not accepted, and will not
accept, duplicate reimbursement for relocation expenses. Furthermore,
it states that, to the best of your knowledge, no third party has
accepted duplicate reimbursement for your relocation expenses. The
duplicate reimbursement disclosure statement must be incorporated into
your service agreement.
Sec. 302-2.21 Must I sign a duplicate reimbursement disclosure
statement?
Yes, you must sign a duplicate reimbursement disclosure statement
to receive any relocation benefits.
0
18. Amend Sec. 302-2.100 by--
0
a. Removing the word ``and'' at the end of paragraph (e);
0
b. Removing the period at the end of paragraph (f) and adding ``; and''
in its place; and
0
c. Adding paragraph (g) to read as follows:
Sec. 302-2.100 What internal policies must we establish before
authorizing a relocation allowance?
* * * * *
(g) How you will ensure that all relocating employees sign a
duplicate reimbursement disclosure statement, which is to be
incorporated into their relocation service agreements (see Sec. 302-
2.21).
Sec. 302-2.103 [Amended]
0
19. Amend Sec. 302-2.103 by--
0
a. Removing the word ``and'' at the end of paragraph (c);
0
b. Removing the period at the end of paragraph (d) and adding ``; and''
in its place; and
0
c. Adding paragraph (e) to read as follows:
Sec. 302-2.103 How must we administer the authorization for
relocation of an employee?
* * * * *
(e) Provide counseling about relocation benefits to all relocating
employees. In addition, you should offer counseling as early as
possible during the relocation process and you should consider offering
counseling to
[[Page 18337]]
employees who are contemplating acceptance of a job that would require
them to relocate.
Sec. 302-2.110 [Amended]
0
20. Amend Sec. 302-2.110 by removing ``2-year'' both times it appears
in the introductory text and adding ``1-year'' in its place.
PART 302-3--RELOCATION ALLOWANCE BY SPECIFIC TYPE
0
21. The authority citation for 41 CFR part 302-3 continues to read as
follows:
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a).
0
22. Revise Sec. 302-3.315 to read as follows:
Sec. 302-3.315 May I be granted an extension to the time limit for
beginning my separation travel?
Yes, your agency may grant you or your immediate family member(s)
(in case of your death) an extension to the time limit for beginning
your separation travel, for up to two years from your effective date of
separation or death, if death occurs before separation.
PART 302-4--ALLOWANCES FOR SUBSISTENCE AND TRANSPORTATION
0
23. The authority citation for 41 CFR part 302-4 continues to read as
follows:
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR
13747, 3 CFR, 1971-1973 Comp., p. 586.
0
24. Amend Sec. 302-4.100 by removing ``Sec. 302-4.202'' and adding
``Sec. Sec. 302-4.202 and 302-5.13'' in its place.
PART 302-5--ALLOWANCE FOR HOUSEHUNTING TRIP EXPENSES
0
25. The authority citation for 41 CFR part 302-5 is revised to read as
follows:
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, as
amended, 3 CFR, 1971-1975 Comp., p. 586.
0
26. Amend Sec. 302-5.13 by revising the table to read as follows:
Sec. 302-5.13 What methods may my agency use to reimburse me for
househunting trip expenses?
* * * * *
------------------------------------------------------------------------
For You are reimbursed
------------------------------------------------------------------------
You and/or your spouse's Your actual transportation costs.
transportation expenses.
You and/or your spouse's One of the following two:
subsistence expenses. (a) A per diem allowance at the standard
CONUS rate (see http://www.gsa.gov/perdiem perdiem), for you and/or your spouse if
you travel separately, or if you both
travel together, the standard CONUS rate
multiplied by 1.75), for the 10 days or
less that your agency authorizes for
you; or
(b) Only if offered by your agency and
chosen by you, a lump sum, as follows:
(1) If you perform a househunting trip
and your spouse does not, or if your
spouse performs a househunting trip
and you do not, multiply the
applicable locality per diem rate by
5.00 (see http://www.gsa.gov/perdiem perdiem).
(2) If you and your spouse both
perform a househunting trip, together
or separately, multiply the
applicable locality per diem rate by
6.25 (see http://www.gsa.gov/perdiem perdiem).
------------------------------------------------------------------------
0
27. Revise Sec. 302-5.14 to read as follows:
Sec. 302-5.14 What transportation expenses will my agency pay?
(a) Your agency will authorize you to travel by any transportation
mode(s) (e.g., common carrier or POV) that it determines to be
advantageous to the Government. Your agency will pay for your
transportation expenses by the authorized mode(s). If you travel by one
or more mode(s) other than the one(s) authorized by your agency, your
agency will pay your transportation expenses up to the constructive
cost of transportation by the authorized mode(s). For trips of less
than 250 miles, your agency will authorize travel by POV, unless there
are reasons for not using a POV that are acceptable to the agency
(e.g., traveler is physically impaired, does not own or lease a POV,
has only one POV that is used for family transportation, or the POV is
not roadworthy for such a trip). POV mileage reimbursement will be in
accordance with Sec. 302-4.300 of this chapter.
(b) Unless the agency performs a written cost comparison that
demonstrates cost savings, only common carrier may be authorized for
trips with a distance of 250 miles or more.
Sec. 302-5.15 [Amended]
0
28. Amend Sec. 302-5.15 by removing the words ``fixed amount'' and
adding the words ``lump sum'' in its place.
Sec. 302-5.16 [Amended]
0
29. Amend Sec. 302-5.16 by--
0
a. Removing ``Sec. 302-2.20'' and adding ``Sec. Sec. 302-2.22, 302-
2.23, and 302-2.24'' in its place; and
0
b. Removing the words ``fixed amount'' and adding the words ``lump
sum'' in its place.
Sec. 302-5.18 [Amended]
0
30. Amend Sec. 302-5.18 by--
0
a. Removing the words ``fixed amount'' from the section heading and
adding the words ``lump sum'' in its place; and
0
b. Removing the word ``fixed'' and adding the words ``lump sum'' in its
place.
Sec. 302-5.101 [Amended]
0
31. Amend Sec. 302-5.101, paragraph (c), by removing the words ``fixed
amount'' and adding the words ``lump sum'' in its place.
Sec. 302-5.103 [Redesignated as Sec. 302-5.104]
0
32. Redesignate Sec. 302-5.103 as Sec. 302-5.104.
0
33. Add a new Sec. 302-5.103 to read as follows:
Sec. 302-5.103 What modes of transportation may we authorize for a
househunting trip?
(a) When the new official station is less than 250 miles from the
old official station, the required mode of transportation is POV,
unless there are reasons for not using a POV that are acceptable to the
you (e.g., traveler is physically impaired, does not own or lease a
POV, has only one POV which is used for family transportation, or the
POV is not roadworthy for such a trip). Reimbursement for POV mileage
is at the rate prescribed in Sec. 302-4.300 of this subchapter.
(b) When the new official station is 250 miles or more from the old
official station, the preferred mode of transportation is common
carrier. However, you may authorize the use of POV for a househunting
trip longer than 250 miles, provided you complete a written cost
comparison in accordance with Sec. 302-5.14(b).
[[Page 18338]]
Sec. 302-5.104 [Amended]
0
34. Amend the newly redesignated Sec. 302-5.104 by removing the words
``Fixed amount'' and adding the words ``Lump sum'' in their place in
paragraph (a); and by removing the words ``fixed amount'' and adding
the words ``lump sum'' in their place each time it appears.
PART 302-6--ALLOWANCE FOR TEMPORARY QUARTERS SUBSISTENCE EXPENSES
[AMENDED]
0
35. The authority citation for 41 CFR part 302-6 is revised to read as
follows:
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, as
amended, 3 CFR, 1971-1975 Comp., p. 586.
Sec. 302-6.11 [Amended]
0
36A. Amend Sec. 302-6.11 by removing the words ``fixed amount'' and
adding the words ``lump sum'' in their place.
Sec. 302-6.12 [Amended]
0
36B. Amend Sec. 302-6.12 by removing the words ``fixed amount'' and
adding the words ``lump sum'' in its place.
Sec. 302-6.15 [Amended]
0
37. Amend Sec. 302-6.15 by removing ``Sec. 302-2.20'' and adding
``Sec. Sec. 302-2.22, 302-2.23, and 302-2.24'' in its place.
0
38. Revise subpart C to read as follows:
Subpart C--Lump Sum Payment
Sec.
302-6.200 What am I paid under the TQSE lump sum payment method?
302-6.201 How do I determine the amount of my TQSE lump sum payment?
302-6.202 Will I receive additional TQSE reimbursement if my TQSE
lump sum payment is not adequate to cover my actual TQSE?
302-6.203 May I retain any balance left over from my TQSE lump sum
payment if such payment is more than adequate?
302-6.204 Am I required to file a voucher after occupying temporary
quarters if I selected the TQSE lump sum payment?
Subpart C--Lump Sum Payment
Sec. 302-6.200 What am I paid under the TQSE lump sum payment method?
If your agency offers, and you select the lump sum TQSE payment,
you are paid a lump sum for each day authorized up to 30 days. The
maximum number of days that may be used for the TQSE lump sum
calculation is 30; no extensions are allowed under the lump sum payment
method.
Sec. 302-6.201 How do I determine the amount of my TQSE lump sum
payment?
(a) For yourself, multiply the number of days your agency
authorizes TQSE by .75 times the maximum per diem rate (that is,
lodging plus meals and incidental expenses) prescribed by Sec. 301-
11.6 of this subtitle for the locality at the old or new official
station or combination thereof, wherever TQ will be occupied. Please
note that for non-foreign OCONUS, the Department of Defense Per Diem,
Travel and Transportation Allowances Committee establishes the per diem
rate, and for foreign OCONUS, the Department of State establishes the
per diem rates.
(b) For each member of your immediate family, multiply the same
number of days by .25 times the same per diem rate, as described in
paragraph (a) of this section.
(c) Your lump sum payment will be the sum of the calculations in
paragraphs (a) and (b) of this section.
Sec. 302-6.202 Will I receive additional TQSE reimbursement if my
TQSE lump sum payment is not adequate to cover my actual TQSE?
No, you will not receive additional TQSE reimbursement if the lump
sum payment is not adequate to cover your actual TQSE.
Sec. 302-6.203 May I retain any balance left over from my TQSE lump
sum payment if such payment is more than adequate?
Yes, if your lump sum TQSE payment is more than adequate to cover
your actual TQSE expenses, any balance belongs to you. (E.g., if your
agency authorizes and you accept a lump sum payment for 15 days of TQSE
and you vacate TQ after 10 days for any reason, you would retain the
remaining balance for the 5 days of TQSE not incurred).
Sec. 302-6.204 Am I required to file a voucher after occupying
temporary quarters if I selected the TQSE lump sum payment?
No, you are not required to file a voucher after occupying
temporary quarters if you have selected the lump sum payment. The
intent of the lump sum payment is to simplify the process and eliminate
the need for filing a voucher. However, your agency may require that
you sign a voucher or other document before they pay your lump sum TQSE
to you, and your agency may at any time request proof that you actually
occupied TQ, even if not for the full length of time on which the lump
sum calculation was based. In the absence of sufficient proof of TQSE
occupancy, your agency may demand repayment of the TQSE lump sum
payment in accordance with Sec. 302-6.305.
Sec. 302-6.301 [Amended]
0
39. Amend Sec. 302-6.301, paragraph (c), by removing the words ``fixed
amount'' and adding the words ``lump sum'' in its place.
0
40. Revise Sec. 302-6.304 to read as follows:
Sec. 302-6.304 What factors should we consider in determining whether
to offer an employee a lump sum payment option for TQSE?
When determining whether to offer an employee the lump sum payment
option for TQSE the following factors should be considered:
(a) Ease of administration. A lump sum for TQSE is paid to the
employee prior to the occupancy of TQ, and the after the fact voucher
process is eliminated under this method. Actual TQSE reimbursement
requires an agency to review claims for the validity, accuracy, and
reasonableness of each expense amount.
(b) Cost consideration. You should weigh the cost of each
alternative. Actual TQSE reimbursement may extend up to 120 days, while
the lump sum payment is limited to a maximum of 30 days.
(c) Treatment of employee. The employee is allowed to choose
between actual TQSE reimbursement and the lump sum TQSE payment when
you offer the lump sum payment method. You therefore should weigh
employee morale and productivity considerations against actual cost
considerations in determining which method to offer.
Sec. 302-6.305 [Redesignated as Sec. 302-6.307]
0
41. Redesignate Sec. 302-6.305 as Sec. 302-6.307.
0
42. Add new Sec. Sec. 302-6.305 and 302-6.306 to read as follows:
Sec. 302-6.305 Must we require transferees to sign a statement that
TQSE will be incurred?
Yes, transferees electing the TQSE lump sum payment option must
sign a statement, which should be included as part of the service
agreement, asserting that they will occupy TQ and will incur TQSE. If
no TQSE are incurred, the transferee must return all monies advanced
for the lump sum TQSE payment to the agency.
Sec. 302-6.306 When must we make the lump sum TQSE payment to the
transferee?
You must pay the transferee the lump sum TQSE payment prior to the
occupancy of TQ. You should make the lump sum TQSE payment as close as
is reasonably possible to the time that the transferee will begin
occupancy of TQ.
[[Page 18339]]
PART 302-7--TRANSPORTATION AND TEMPORARY STORAGE OF HOUSEHOLD
GOODS, PROFESSIONAL BOOKS, PAPERS, AND EQUIPMENT, AND BAGGAGE
ALLOWANCE [AMENDED]
0
43. The authority citation for 41 CFR part 302-7 is revised to read as
follows:
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, as
amended, 3 CFR, 1971-1975 Comp., p. 586.
Sec. 302-7.1 [Amended]
0
44. Amend Sec. 302-7.1, paragraph (d), by removing ``Sec. 302-3.304''
and adding ``Sec. Sec. 302-3.304 through 302-3.315'' in its place.
0
45. Revise Sec. 302-7.2 to read as follows:
Sec. 302-7.2 What is the maximum weight of HHG that may be
transported or stored at Government expense?
(a) The maximum weight allowance of HHG that may be shipped or
stored at Government expense is 18,000 pounds net weight. For uncrated
or van line shipments, a 2,000 pound allowance is added to the 18,000
pounds net weight allowance to cover packing materials for the
shipment. In no case may a shipment weigh over 20,000 gross pounds (the
18,000 pounds net weight of the uncrated HHG plus the 2,000 pound
allowance for packing materials). The relocating employee is
responsible for reimbursing the Government for all costs incurred if
the shipment is overweight. For determining the weight of crated
shipments, containerized shipments, and constructive weight for other
types of household good shipments, please see the chart in Sec. 302-
7.13.
(b) An agency may establish a lower net weight allowance and a
lower allowance for packing materials in special circumstances, such as
transferring an employee into government-furnished quarters.
0
46. Revise Sec. Sec. 302-7.4, 302-7.5, and 302-7.6 to read as follows:
Sec. 302-7.4 Who pays for shipping professional books, papers, and
equipment (PBP&E)?
The agency may pay for shipping PBP&E as a discretionary item. When
authorized, shipping PBP&E is considered an administrative cost to the
agency. However, for ease of administration in calculating this
allowance, PBP&E should be included as part of the HHG shipment, if
possible. That is, if the net weight of the HHG plus the PBP&E is less
than 18,000 pounds, the agency should ship the items together and pay
for the HHG shipment in one payment.
Sec. 302-7.5 What happens if the HHG shipment includes PBP&E, and it
might exceed, or did exceed, the 18,000 pounds net weight allowance?
(a) Separate the PBP&E and have the HHG carrier estimate the weight
of the PBP&E before the HHG shipment is picked up. Subtract 110 percent
of the estimated PBP&E weight (to adjust for packing materials) from
the estimated gross weight as shown on the shipping documents (i.e.,
net weight minus the PBP&E minus 10 percent of the PBP&E). If the
result is more than the 18,000 pounds net weight allowance, then the
shipment exceeds the net weight allowance.
(b) If you did not discover that the HHG shipment exceeded the net
weight allowance in advance, and if you did not weigh or estimate the
PBP&E before shipping it, then weigh the PBP&E before it is delivered.
Determine if the shipment exceeds the net weight allowance by applying
the formula in paragraph (a) of this section.
(c) If the calculation in paragraph (a) of this section shows that
the shipment does not exceed the net weight allowance, then the agency
may transport and pay for shipping the PBP&E plus packing materials
with the household goods.
(d) However, if the calculation in paragraph (a) of this section
shows that the shipment may exceed the net weight allowance, and if the
employee was authorized PBP&E, then the employee must pay for shipping
all weight that exceeds the net weight allowance for their HHG, minus
the PBP&E and packing materials for both. The agency may then pay for
shipping the PBP&E as an administrative expense.
(e) The agency may require reasonable documentation of the items
requesting to be shipped as PBP&E and the weight of the PBP&E.
Sec. 302-7.6 What are the authorized origin and destination points
for the transportation of HHG and PBP&E?
The authorized origin and destination points for the transportation
of HHG and PBP&E vary by category of employee and are listed in the
following table:
Transportation of HHG and PBP&E
------------------------------------------------------------------------
Category of employee Authorized origin/destination
------------------------------------------------------------------------
(a) Employee transferred between Between the old and new
official stations. official stations (including
to/from extended storage
location when authorized).
(b) New appointee...................... From place of actual residence
to new official station
(including to location of
extended storage when
authorized).
(c) Employee returning from outside Last official station and
CONUS assignment for separation from extended storage location,
Government service. when authorized, to place of
actual residence.
(d) Employee authorized separation From any location, including
travel at Government expense to actual actual residence and extended
residence but retiring at the OCONUS storage location to any other
official station or an alternate location (including the OCONUS
location. official station), not to
exceed the constructive
transportation cost from the
official station and extended
storage location
(respectively) to the actual
residence.
(e) SES last move home benefits........ From the last official station
and extended storage location,
when authorized, to the place
of selection.
(f) Temporary change of official From the current official
station (TCS). station to the TCS location
and return (includes to and
from extended storage location
when authorized).
------------------------------------------------------------------------
[[Page 18340]]
Sec. Sec. 302-7.8 through 302-7.20 [Redesignated as Sec. Sec. 302-
7.9 through 302-7.21]
0
47. Redesignate Sec. Sec. 302-7.8 through 302-7.20 as Sec. Sec. 302-
7.9 through 302-7.21, respectively.
0
48. Add a new Sec. 302-7.8 to read as follows:
Sec. 302-7.8 At what location can CONUS-to-CONUS or OCONUS-to-CONUS
HHG shipments be temporarily stored?
Your HHG may be placed in temporary storage at origin, in transit,
at destination, or any combination thereof upon agency approval.
0
49. Revise newly redesignated Sec. 302-7.9 and Sec. 302-7.10 to read
as follows:
Sec. 302-7.9 What are the time limits for the temporary storage of
authorized HHG shipments?
(a) For CONUS to CONUS shipments. The initial period of temporary
storage at Government expense may not exceed 60 days. You may request
additional time, up to a maximum of 90 days, and you must make such a
request prior to the expiration of the original 60 days. This extension
must be approved by the agency official designated for such requests.
Under no circumstances may temporary storage at Government expense for
CONUS to CONUS shipments exceed a total of 150 days.
(b) For shipments that include an OCONUS origin or destination. The
initial period of temporary storage at Government expense may not
exceed 90 days. You may request additional time, up to a maximum of 90
days, and you must make such a request prior to the expiration of the
original 90 days. This extension must be approved by the agency
official designated for such requests. Under no circumstances may
temporary storage for shipments at Government expense that include an
OCONUS origin or destination exceed a total of 180 days.
Sec. 302-7.10 What are the reasons that would justify the additional
storage beyond the initial 60 days CONUS and 90 days OCONUS limits?
Reasons for justifying temporary storage beyond the initial limit
include, but are not limited to:
(a) An intervening temporary duty or long-term training assignment;
(b) Non-availability of suitable housing;
(c) Completion of residence under construction;
(d) Serious illness of employee or illness or death of a dependent;
or
(e) Strikes, acts of God, or other circumstances beyond the control
of the employee.
Sec. 302-7.13 [Amended]
0
50. Amend newly designated Sec. 302-7.13, in the second column of the
table, by revising the first entry (opposite entry (a) in the first
column), to read ``An allowance of up to 2,000 pounds, exclusive of the
18,000 pounds net weight of HHG shipment, is used for the packing
weight covering barrels, boxes, cartons, and similar material but does
not include pads, chains, dollies and other equipment to load and
secure the shipment.''
0
51. Revise newly redesignated Sec. 302-7.16 to read as follows:
Sec. 302-7.16 Must I use the methods selected by my agency for
transportation and temporary storage of my HHG and PBP&E?
No, you do not have to use the method selected (see Sec. 302-
7.401) by your agency for transportation and temporary storage of your
HHG and PBP&E. You may pursue other methods; however, your
reimbursement is limited to the actual cost incurred, not to exceed
what the Government would have incurred under the method selected by
your agency.
0
52. Revise newly redesignated Sec. 302-7.21 to read as follows:
Sec. 302-7.21 If my HHG shipment includes an item for which a weight
additive is assessed by the HHG carrier (e.g., boat, trailer,
ultralight vehicle), am I responsible for payment?
(a) No, you will not be responsible for the shipping charges that
result from a weight additive so long as the actual weight of your HHG
without the additive does not exceed the 18,000 pound net weight
allowance for relocation. However you are responsible for any amount
your HHG exceeds the 18,000 pound net weight allowance prior to the
addition of the weight additive (e.g., when a weight additive of 700
pounds is imposed by a HHG carrier for a 65-pound canoe and the total
net weight of the HHG, including the weight additive, is 18,765 pounds,
you are only responsible for the 65 pounds actually added by the
canoe).
(b) You are also responsible for the cost of special packing,
crating, and handling of the weight additive items, if any. See Sec.
302-7.200 on how charges are paid and who makes the shipping
arrangements.
Subpart D [Redesignated as Subpart E]
0
53. Redesignate subpart D consisting of Sec. Sec. 302-7.300 through
302-7.304 as new subpart E consisting of Sec. Sec. 302-7.400 through
302-7.404.
0
54. Add a new subpart D consisting of Sec. Sec. 302-7.300 through 302-
7.305 to read as follows:
Subpart D--Baggage Allowance
Sec.
302-7.300 When may I be authorized an unaccompanied air baggage
(UAB) shipment?
302-7.301 Is my UAB shipment in addition to the 18,000 pounds net
weight of the HHG weight allowance?
302-7.302 What is the maximum weight allowance for a UAB shipment?
302-7.303 When may my agency authorize the shipment of UAB by
expedited means?
302-7.304 Who makes arrangements for transporting my UAB?
302-7.305 When must my agency ship my UAB?
Subpart D--Baggage Allowance
Sec. 302-7.300 When may I be authorized an unaccompanied air baggage
(UAB) shipment?
UAB is used in connection with permanent change of station OCONUS,
renewal agreement travel, and temporary change of station. You may be
authorized a UAB shipment prior to transferring from a CONUS location
to an OCONUS location, between OCONUS locations, or from an OCONUS
location to a CONUS location. UAB for CONUS to CONUS shipments is not
allowed under the FTR.
Sec. 302-7.301 Is my UAB shipment in addition to the 18,000 pounds
net weight of the HHG weight allowance?
No, for all shipments made under the authority of the FTR, the UAB
shipment is part of, not in addition to, the 18,000 pounds net weight
allowance for HHG.
Sec. 302-7.302 What is the maximum weight allowance for a UAB
shipment?
The maximum weight allowance your agency may grant for a UAB
shipment is--
(a) Up to 350 pounds actual weight (including the weight of the
luggage or packing material) for the employee and each immediate family
member 12 years of age and over; or
(b) Up to 175 pounds actual weight (including the weight of the
luggage or packing material) for each immediate family member under 12
years of age.
Sec. 302-7.303 When may my agency authorize the shipment of UAB by
expedited means?
Your agency may authorize the shipment of UAB by expedited means
when:
(a) Shipment by a lower cost mode cannot deliver the items being
shipped by the time they will be needed by the employee and/or the
employee's immediate family; or
[[Page 18341]]
(b) You certify that expedited shipment of your UAB is necessary to
carry out your assigned duties; or
(c) Your agency determines that an expedited shipment is necessary
to prevent undue hardship to you and members of your immediate family.
Sec. 302-7.304 Who makes arrangements for transporting my UAB?
Your agency or your agency's designee should arrange for the
transport of your UAB. In limited situations, the agency may ask the
employee to make the arrangements for a UAB shipment.
Sec. 302-7.305 When must my agency ship my UAB?
Your agency must ship your UAB in time to ensure that your shipment
arrives by the time you (and/or your family) report to your new
official station. Arrangements should begin prior to your and/or your
family's departure to your new official station.
0
55. Revise newly designated subpart E to read as follows:
Subpart E--Agency Responsibilities
Sec.
302-7.400 What policies and procedures must we establish for this
subpart?
302-7.401 What method of transportation and payment should we
authorize for shipment and temporary storage of HHG?
302-7.402 What method of transportation and payment should we
authorize for shipment of PBP&E and UAB?
302-7.403 What guidelines must we follow when authorizing
transportation of PBP&E as an administrative expense?
302-7.404 Are separate weight certificates required when HHG are
shipped under the actual expense method and PBP&E are shipped as an
administrative expense in the same lot?
302-7.405 How must we arrange and pay for transportation of HHG and
UAB, if we have authorized actual expense for transportation?
Subpart E--Agency Responsibilities
Note to Subpart E: Use of pronouns ``we,'' ``you,'' and their
variants throughout this Subpart refers to the agency.
Sec. 302-7.400 What policies and procedures must we establish for
this subpart?
You must establish policies and procedures as required for this
subpart, including who will:
(a) Administer your household goods program;
(b) Authorize commuted rate or actual expense for transportation
and payment for HHG, PBP&E, and temporary storage;
(c) Authorize PBP&E to be transported as an agency administrative
expense in accordance with FTR guidelines (usually the authorizing
official for PBP&E will be at the employee's new official station);
(d) Authorize an employee to ship UAB;
(e) Collect any excess costs or charges;
(f) Advise the employee on the Government's liability for any
personal property damage or loss claims (See 31 U.S.C. 3721, et seq.);
(g) Ensure that international HHG shipments by water are made on
ships registered under the laws of the United States whenever such
ships are available (see The Cargo Preference Act of 1904 (10 U.S.C.
2631) and The Cargo Preference Act of 1954 (46 U.S.C. 55302));
(h) Authorize temporary storage in excess of the initial 60-day
limit for CONUS shipments or 90-day limit for OCONUS shipments; and
(i) Ensure pre-payment audits are completed.
Sec. 302-7.401 What method of transportation and payment should we
authorize for shipment and temporary storage of HHG?
There are two methods of arranging and paying for shipment of HHG
and providing for temporary storage: actual expense and commuted rate.
You must authorize actual expense or commuted rate, depending on which
is less costly to the Government. You must then specify the selected
method on the relocation travel authorization.
(a) Actual expense method. Under the actual expense method, the
Government assumes the responsibility for arranging and paying for the
actual expenses of all aspects of shipping the employee's HHG,
including PBP&E, if any. These expenses may include but are not limited
to: Packing/unpacking, crating/uncrating, pickup/delivery, weighing,
line-haul, drayage, and temporary storage. This method is used for all
shipments to/from/between OCONUS, and within CONUS where deemed
economical to the Government.
(b) Commuted rate system.
(1) Under the commuted rate system, the employee assumes total
responsibility for arranging and paying for the expenses of all aspects
of shipping the employee's HHG, including PBP&E, if any. These expenses
may include but are not limited to: Packing/unpacking, crating/
uncrating, pickup/delivery, weighing, line-haul, drayage, and temporary
storage. This method is used only for shipments within CONUS, and only
where it is less costly to the Government than actual expense. The
employee may arrange for shipment with a commercial HHG carrier or may
rent self-drive equipment for a do-it-yourself move.
(2) The commuted rate is calculated based on published HHG tariffs
applied to the actual weight of the goods being shipped (subject also
to the weight limitation in Sec. Sec. 302-7.2 through 302-7.5).
(3) If a PBP&E shipment causes the weight of a shipment under the
commuted rate method to exceed the 18,000 pounds net weight allowance
for HHG, then the actual cost of shipping that excess weight attributed
to the PBP&E may be paid as an administrative expense of the agency. In
this case, all related transportation arrangements (e.g., packing/
unpacking, crating/uncrating, pickup/delivery, weighing, temporary
storage, etc.) associated with shipping this excess weight will be
handled and paid for by the agency (see Sec. 302-7.5 for the process
of determining what will paid for by the agency).
Sec. 302-7.402 What method of transportation and payment should we
authorize for shipment of PBP&E and UAB?
(a) You should authorize the actual expense method for shipping an
employee's PBP&E only when the weight of the PBP&E causes the
employee's shipment to exceed the maximum 18,000 pounds net HHG weight
limitation and in accordance with Sec. 302-7.403. Preferably, PBP&E
should be identified and weighed prior to shipment, so the weight can
easily be deducted from the 18,000 pounds net weight allowance. In
cases where the weight of the PBP&E causes the shipment to exceed the
18,000 pounds net weight allowance for HHG, the PBP&E shipment may be
paid for as an administrative expense by you, provided you authorized
PBP&E.
(b) You should authorize the actual expense method for shipping an
employee's UAB. UAB should be identified, weighed, and shipped prior to
shipment of HHG. In cases where the weight of the UAB causes the
shipment to exceed the 18,000 pounds net weight allowance for HHG, the
cost of the excess weight is the responsibility of the employee. Under
the actual expense method of shipment, you are responsible for paying
the bill of lading in full and then collecting any excess cost from the
employee.
Sec. 302-7.403 What guidelines must we follow when authorizing
transportation of PBP&E as an administrative expense?
You have the sole discretion to authorize transportation of PBP&E
as an administrative expense and may do so provided that:
(a) The authorizing official has certified that the PBP&E is
necessary for performance of the employee's duties at the new duty
station;
[[Page 18342]]
(b) The authorizing official has certified that, if these items
were not transported, the same or similar items would have to be
obtained at Government expense for the employee's use at the new
official station;
(c) You have acquired evidence that transporting the PBP&E would
cause the employees' HHG to exceed the 18,000 pounds net weight
allowance; and
(d) If you have requested it, the employee has provided reasonable
documentation of the items requesting to be shipped as PBP&E and the
weight of the PBP&E for review by the authorizing official (who is
usually an official at the employee's new official station).
Note to Sec. 302-7.403: PBP&E transported as an agency
administrative expense to an OCONUS location may be returned to
CONUS as an agency administrative expense for an employee separating
from Government service or returning to the actual place of
residence and continuing in Government service.
Sec. 302-7.404 Are separate weight certificates required when HHG are
shipped under the actual expense method and PBP&E are shipped as an
administrative expense in the same lot?
Yes, separate weight certificates are required when the PBP&E and
its packing allowance pushes the shipment over the net weight
allowance. Otherwise, for administrative efficiency, the HHG shipment
should be billed and paid for as a single shipment. If separate weight
certificates are required, then the weight of PBP&E and the
administrative appropriation chargeable must be listed as separate
items on the bill of lading or other shipping document.
Sec. 302-7.405 How must we arrange and pay for transportation of HHG
and UAB, if we have authorized actual expense for transportation?
When arranging transportation of HHG and UAB under the actual
expense method, you should:
(a) Determine the constructive cost of transporting the HHG plus
the UAB, as follows:
(1) Compute the cost of transporting the HHG (not including the
UAB) in one lot, by the most economical means; be sure to include the
cost of packing and unpacking.
(2) Compute the cost of transporting the UAB.
(3) If the HHG, including the UAB, exceeds the 18,000 pounds net
weight allowance, then compute the cost of transporting only the net
weight allowance as one shipment; again, be sure to include the cost of
packing and unpacking.
(4) The constructive cost is either that described in paragraph
(a)(3) of this section or the sum of paragraphs (a)(1) and (a)(2) of
this section, depending on whether the weight of the HHG, including the
UAB, exceeds the net weight allowance.
(b) Limit the employee's HHG plus UAB transportation payment to the
constructive cost as described in paragraph (a)(4) of this section, so
long as it is equal to or less than the 18,000 pound net limit of this
Chapter;
(c) Make arrangements for transporting the employee's HHG and UAB
under two separate bills of lading, with direct payment by the agency
for both; and
(d) Advise employees of this relocation entitlement limitation and
its potential to result in out-of-pocket expenses to the employee. That
is, advise employees that they will have to use their personal funds to
pay for transporting HHG (including UAB) in excess of 18,000 pounds net
weight allowance.
PART 302-9--ALLOWANCES FOR TRANSPORTATION AND EMERGENCY STORAGE OF
A PRIVATELY OWNED VEHICLE
0
56. The authority citation for 41 CFR part 302-9 is revised to read as
follows:
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, as
amended, 3 CFR, 1971-1975 Comp., p. 586.
Sec. 302-9.11 [Amended]
0
57. Amend Sec. 302-9.11 by removing ``Sec. 302-2.20'' and adding
``Sec. 302-2.22'' in its place.
Sec. 302-9.140 [Amended]
0
58. Amend Sec. 302-9.140, paragraph (a), by removing ``Sec. 302-
9.503'' and adding ``Sec. 302-9.504'' in its place.
Sec. 302-9.170 [Amended]
0
59. Amend Sec. 302-9.170, paragraph (d), by removing ``302-9.503'' and
adding ``Sec. 302-9.504'' in its place.
0
60. Amend Sec. 302-9.301 by--
0
a. Removing the word ``and'' at the end of paragraph (b);
0
b. Removing the period at the end of paragraph (c) and adding ``;'' in
its place; and
0
c. Adding paragraphs (d) and (e) to read as follows:
Sec. 302-9.301 Under what conditions may my agency authorize
transportation of my POV within CONUS?
* * * * *
(d) Your agency determines that the POV is in operating order and
legally titled and tagged for driving; and
(e) The distance that the POV is to be shipped is 600 miles or
more.
0
61. Revise Sec. 302-9.302 to read as follows:
Sec. 302-9.302 How many POV's may I be authorized to transport within
CONUS?
You may be authorized to transport only the number of POVs equal to
the number of people on the relocation travel orders, who are licensed
drivers, not to exceed two, while relocating within CONUS at Government
expense under this Chapter. Your agency must determine that such
transportation is advantageous and cost effective to the Government in
accordance with Sec. 302-9.301. A vehicle may not be shipped as PBP&E.
Sec. Sec. 302-9.501 through 302-9.505 [Redesignated as Sec. Sec.
302-9.502 through 302-9.506]
0
62. Redesignate Sec. Sec. 302-9.501 through 302-9.505 as Sec. Sec.
302-9.502 through 302-9.506, respectively.
0
63. Add a new Sec. 302-9.501 to read as follows:
Sec. 302-9.501 How many POV's may we authorize for transportation at
Government expense?
Within CONUS, you may authorize transportation of up to two POVs at
Government expense, as prescribed in Sec. 302-9.302. For shipments
from CONUS to OCONUS, OCONUS to OCONUS, and OCONUS to CONUS, only one
POV may be transported at Government expense.
Sec. 302-9.504 [Amended]
0
64. Amend newly designated Sec. 302-9.504 by removing ``Sec. 302-
9.504'' and adding ``Sec. 302-9.505'' in its place.
0
65. Amend the newly designated Sec. 302-9.505 by--
0
a. Removing the word ``and'' at the end of paragraph (c);
0
b. Removing the period at the end of paragraph (d) and adding ``; and''
in its place; and
0
c. Adding paragraph (e) to read as follows:
Sec. 302-9.505 What factors must we consider in deciding whether to
authorize transportation of a POV to a post of duty?
* * * * *
(e) The POV is in operating order and legally titled and tagged for
driving.
0
66. Amend newly designated Sec. 302-9.506 by:
0
a. Removing the period at the end of paragraph (d) and adding ``; and''
in its place; and
0
b. Adding paragraphs (e) and (f) to read as follows:
[[Page 18343]]
Sec. 302-9.506 What must we consider in determining whether
transportation of a POV within CONUS is cost effective?
* * * * *
(e) The POV is in operating order and legally titled and tagged for
driving; and
(f) The distance that the POV is to be shipped is greater than 600
miles.
PART 302-11--ALLOWANCES FOR EXPENSES INCURRED IN CONNECTION WITH
RESIDENCE TRANSACTIONS
0
67. The authority citation for 41 CFR part 302-11 continues to read as
follows:
Authority: 5 U.S.C. 5738 and 20 U.S.C. 905(c).
0
68. Revise Sec. 302-11.2 to read as follows:
Sec. 302-11.2 Am I eligible to receive an allowance for expenses
incurred in connection with my residence transactions?
(a) You must meet four basic conditions to be eligible to receive
an allowance for expenses incurred in connection with your residence
transactions:
(1) You must be transferring from one official station to another;
(2) Your relocation must be incidental to the transfer (i.e., not
for the convenience of the employee);
(3) Your relocation must meet the distance test conditions of Sec.
302-2.6; and
(4) Your new official station must be within the United States.
(b) If you previously transferred from an official station in the
United States to a foreign area and you are now transferring back to
the United States, then, in addition to the requirements of paragraph
(a) of this section, you must have completed the time period specified
in your service agreement for your overseas tour of duty.
Sec. 302-11.21 [Amended]
0
69. Amend Sec. 302-11.21, in the second sentence, by removing ``2
years'' and adding ``1 year'' in its place.
0
70. Revise Sec. 302-11.22 to read as follows:
Sec. 302-11.22 May the 1-year time limitation be extended by my
agency?
Yes, your agency may extend the 1-year limitation for up to one
additional year for reasons beyond your control and acceptable to your
agency.
0
71. Amend Sec. 302-11.200 by revising the introductory text to read as
follows:
Sec. 302-11.200 What residence transaction expenses will my agency
pay?
Provided the residence transaction expenses are customarily charged
to the seller of a residence in the locality of the old official
station or paid by the purchaser at the new official station, your
agency will, with appropriate supporting documentation provided by you,
reimburse you for the following residence transaction expenses when
they are incurred by you incident to your relocation:
* * * * *
Sec. 302-11.404 [Amended]
0
72. Amend Sec. 302-11.404, paragraph (c), by removing ``2-year'' and
adding ``1-year'' in its place.
Sec. 302-11.420 [Amended]
0
73. Amend Sec. 302-11.420 by removing ``2 years'' and adding ``1
year'' in its place.
Sec. 302-11.421 [Amended]
0
74. Amend Sec. 302-11.421, paragraph (a), by removing ``two years''
and adding ``one year'' in its place.
PART 302-12--USE OF A RELOCATION SERVICES COMPANY (RSC)
0
75. The authority citation for 41 CFR part 302-12 continues to read as
follows:
Authority: 5 U.S.C. 5738 and 20 U.S.C. 905(c).
0
76. Revise Sec. Sec. 302-12.1 through 302-12.3 to read as follows:
Sec. 302-12.1 Who determines if I may use a RSC?
Your agency determines whether you may use a RSC and chooses which
RSC you may use.
Sec. 302-12.2 Under what conditions may I participate in my agency's
homesale program?
You may participate in your agency's homesale program, through its
RSC contract, blanket purchase agreement, task order, or other formal
arrangement (for the remainder of this part, all of these will be
referred to as the contract with the RSC) provided you meet all of the
following conditions:
(a) You are authorized to relocate;
(b) Your relocation includes at least one residence transaction;
(c) You have signed a relocation service agreement;
(d) Your agency authorizes you to use a RSC with which your agency
has a contract;
(e) Your residence is within RSC contract scope for type, size,
condition, and other contractual requirements;
(f) You meet all conditions established by this Chapter for the
services that the RSC will provide to you; and
(g) You have signed an agreement with your agency to enter the
agency's homesale program and to abide by all terms of the agency's
contract with the RSC (see Sec. 302-12.4 for contract term examples).
Sec. 302-12.3 Am I required to participate in homesale counseling?
Yes, you are required to participate in homesale counseling if you
are going to use the RSC. The RSC and/or your agency must provide
counseling to help you understand the process, select a broker, prepare
your home for sale, identify an appropriate selling price, set
realistic expectations, etc. This counseling may be in person or via an
electronic medium, at your agency's discretion. Your agency should also
provide you with relocation information/counseling prior to you making
any decisions to relocate.
Sec. Sec. 302-12.4 through 302-12.9 [Redesignated as Sec. Sec. 302-
12.5 through 302-12.10]
0
77. Redesignate Sec. Sec. 302-12.4 through 302-12.9 as Sec. Sec. 302-
12.5 through 302-12.10.
0
78. Add a new Sec. 302-12.4 to read as follows:
Sec. 302-12.4 To what terms of the RSC contract am I required to
agree?
Your agency determines the contract terms to which you will be
required to agree. Examples of these contract terms may include, but
are not limited to, the following:
(a) You will participate in counseling provided by the RSC;
(b) You will seriously consider any bona fide offer that you
receive during the minimum marketing period;
(c) As a precondition of using its relocation services, you will
complete and submit a disclosure form to the RSC to provide thorough
information about the age and condition of your home and its systems.
0
79A. Revise Sec. Sec. 302-12.105 and 302-12.106 to read as follows:
Sec. 302-12.105 Must we have a contract with a RSC that includes a
comprehensive homesale program?
No, you are not required to have a contract that includes a
comprehensive homesale program (which, for this purpose, is defined as
a relocation program that includes a contract with a RSC that provides
for buyer value option sales, amended sales, and appraised value
purchases by the RSC).
[[Page 18344]]
However, if you do not have such a program, you must examine and
evaluate the objectives and relative costs of your relocation benefits
and management processes at least once every two years to determine
whether a comprehensive homesale program should be part of your
relocation program.
Sec. 302-12.106 What rules must we follow when contracting for a
comprehensive homesale program?
You must follow the rules contained in the Federal Acquisition
Regulations (FAR) (48 CFR) and/or all other acquisition regulations
applicable to your agency.
Sec. 302-12.107 [Removed and Reserved]
0
79B. Remove and reserve Sec. 302-12.107.
Sec. Sec. 302-12.108 through 302-12.114 [Redesignated as Sec. Sec.
302-12.115 through 302-12.121]
0
80. Redesignate Sec. Sec. 302-12.108 through 302-12.114 as Sec. Sec.
302-12.115 through 302-12.121.
0
81A. Add and reserve Sec. 302-12.108 to read as follows:
Sec. 302-12.108 [Reserved]
0
81B. Add new Sec. Sec. 302-12.109 to read as follows:
Sec. 302-12.109 May we require employees to participate in counseling
before listing their homes?
Yes, you may require that employees participate in counseling
before listing their homes, provided this is written into your agency's
relocation policy. This is a common practice in the private sector.
Please note, however, that this may exclude from your homesale program
any employee who lists his/her home before the relocation travel
authorization is approved. If you choose to make this part of your
agency policy, you should make a major, ongoing effort to inform as
many of your potential transferees as possible of this policy.
0
81C. Add and reserve Sec. 302-12.110 to read as follows:
Sec. 302-12.110 [Reserved]
0
81D. Add new Sec. Sec. 302-12.111 through 302-12.114 to read as
follows:
Sec. 302-12.111 May we require an employee to use a real estate
broker specified by the RSC?
Yes, you may require, through your contract with the RSC, that
every employee enrolled in the homesale program use a real estate
broker specified by the RSC. This provision is not part of the standard
terms for a homesale program, but it may provide a pricing advantage in
negotiations with potential RSC, as well as an opportunity for better
management of the homesale process.
Sec. 302-12.112 May we require an employee to use a mortgage service
provider specified by the RSC?
No. Under the Real Estate Procedures Settlement Act (RESPA), you
may not require that the employee obtain any mortgage from a lender
specified by the RSC. The RSC may provide the employee access to
multiple mortgage service providers as long as there is no use
requirement, and the employee is provided a choice. Allowing the RSC to
provide access to multiple providers is not part of the standard terms
for a homesale program, but it may provide a pricing advantage in
negotiations with potential RSCs, as well as an opportunity for better
management of the homesale process.
Sec. 302-12.113 What must we do when planning, establishing, and
administering a RSC contract?
(a) When planning and establishing a RSC contract, you must
structure the contract so that it provides the best possible value to
the Government, considering costs, tax implications, morale, mobility,
employee choice, productivity, and any other relevant considerations.
For most agencies and most relocations, this structure will include the
possibility of a BVO sale or an amended value sale.
(b) Once you have a RSC contract, you must monitor costs and tax
consequences and make adjustments as necessary, to ensure that your
homesale program continues to provide the same best value to the
Government.
Sec. 302-12.114 What policies must we establish when offering our
employees the services of a RSC?
If you choose to offer the services of a RSC to your employees, you
must establish policies governing:
(a) The conditions under which you will authorize an employee to
use the contract with the RSC;
(b) Which employees you will allow to use the contract with the
RSC;
(c) Which services the RSC will provide to the employee;
(d) Who will determine in each case if an employee may use the
contract with the RSC and which services the RSC will provide;
(e) How you will monitor and evaluate the counseling provided by
you and/or the RSC to your employees; and
(f) How you will monitor and maintain an appropriate balance
between the three types of homesale transactions in your homesale
programs (appraised value, buyer value option, and amended value).
PART 302-15--ALLOWANCE FOR PROPERTY MANAGEMENT SERVICES
0
82. The authority citation for 41 CFR part 302-15 is revised to read as
follows:
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, as
amended, 3 CFR, 1971-1975 Comp., p. 586.
0
83. Revise Sec. 302-15.2 to read as follows:
Sec. 302-15.2 What are the purposes of the property management
services allowance?
The purposes of the property management services allowance are to:
(a) Reduce overall Government relocation costs by using the
property management services allowance in place of allowances for the
sale of the employee's residence; and
(b) Relieve employees transferred to OCONUS duty stations from the
costs of maintaining a home in CONUS during their tour of duty.
Sec. 302-15.10 [Amended]
0
84. Amend Sec. 302-15.10, paragraph (a), by--
0
a. Removing ``2 years'' and adding ``one year'' in its place; and
0
b. Removing ``2-year'' and adding ``1-year'' in its place.
0
85. Revise Sec. 302-15.70 to read as follows:
Sec. 302-15.70 What governing policies must we establish for the
allowance for property management services?
You must establish policies and procedures governing:
(a) When you will authorize payment for property management
services for an employee who transfers in the interest of the
Government;
(b) When it is appropriate to authorize this service on a
reimbursable basis to the employee, rather than paying the property
management company directly, as long as any reimbursement is equal to
or less than the agency negotiated rate for this service (agencies may
require that employees hire only licensed and/or certified property
managers).
(c) Who will determine, for relocations to official duty stations
in the United States, whether payment for property management services
is more advantageous and cost effective than sale of an employee's
residence at Government expense;
(d) If and when you will allow an employee who was offered and
accepted payment for property management services to change his/her
residence at Government expense in accordance with paragraph (e) of
this section; and
[[Page 18345]]
(e) How you will offset expenses you have paid for property
management services against payable expenses for sale of the employee's
residence when an eligible employee who elected payment for property
management services later changes his/her mind and elects instead to
sell his/her residence at Government expense.
PART 302-16--ALLOWANCE FOR MISCELLANEOUS EXPENSES
0
86. The authority citation for 41 CFR part 302-16 is revised to read as
follows:
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, as
amended, 3 CFR, 1971-1975 Comp., p. 586.
Sec. Sec. 302-16.1 and 302-16.2 [Redesignated as Sec. Sec. 302-16.2
and 302-16.1]
0
87. Redesignate Sec. Sec. 302-16.1 and 302-16.2 as Sec. Sec. 302-16.2
and 302-16.1, respectively.
0
88. Revise newly redesignated Sec. Sec. 302-16.1 and 302-16.2 to read
as follows:
Sec. 302-16.1 What is the purpose of the miscellaneous expenses
allowance (MEA)?
The miscellaneous expenses allowance (MEA) is intended to help
defray some of the costs incurred due to relocating. (See part 302-10
of this chapter for specific costs normally associated with relocation
of a mobile home dwelling that are covered under transportation
expenses.)
Sec. 302-16.2 What are miscellaneous expenses?
Miscellaneous expenses are:
(a) Costs associated with relocating that are not covered by other
relocation benefits detailed in Chapter 302.
(b) Expenses allowable under this section include but are not
limited to the following, and similar, items:
----------------------------------------------------------------------------------------------------------------
General expenses Fees/deposits Losses
----------------------------------------------------------------------------------------------------------------
Appliances............................ Fees for disconnecting/connecting
utilities, appliances, equipment, or
conversion of appliances for operation
on available utilities.
Rugs, draperies, and curtains......... Fees for cutting and fitting such items
when they are moved from one residence
quarters to another.
Utilities (For mobile homes, see Sec. Deposits or fees not offset by eventual
302-10.204). refunds.
Medical, dental, and food locker ........................................ Losses that cannot be
contracts. recovered by transfer or
refund and are incurred due
to early termination of a
contract.
Private Institutional care contracts ........................................ Losses that cannot be
(such as that provided for recovered by transfer or
handicapped or invalid dependents refund and are incurred due
only). to early termination of a
contract.
Privately-owned vehicles.............. Registration, driver's license, and use ..............................
taxes imposed when bringing vehicles
into certain jurisdictions.
Transportation of pets................ The only costs included are those ..............................
normally associated with the
transportation and handling of dogs,
cats, and other house pets, as well as
costs due to stringent air carrier
rules. Other animals (horses, fish,
birds, reptiles, various rodents, etc.)
are excluded because of their size,
exotic nature, restrictions on
shipping, host country restrictions,
and special handling difficulties.
Inoculations, examinations, and
boarding quarantine costs are excluded.
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[FR Doc. 2011-6609 Filed 3-31-11; 8:45 am]
BILLING CODE 6820-14-P