[Federal Register: August 3, 2007 (Volume 72, Number 149)]
[Proposed Rules]
[Page 43216-43221]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03au07-26]
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GENERAL SERVICES ADMINISTRATION
41 CFR Parts 300-3, 302-3, 302-5, 302-7, 302-12, and 302-16
[FTR Case 2007-304; Docket 2007-0002, Sequence 1]
RIN 3090-AI37
Federal Travel Regulation; FTR Case 2007-304, Relocation
Allowances-Governmentwide Relocation Advisory Board
AGENCY: Office of Governmentwide Policy, General Services
Administration (GSA).
ACTION: Proposed rule.
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SUMMARY: The General Services Administration (GSA), Office of
Governmentwide Policy (OGP), continually reviews and adjusts policies
as a part of its ongoing mission to provide policy assistance to the
Government agencies subject to the Federal Travel Regulation (FTR).
Accordingly, GSA created the Governmentwide Relocation Advisory Board
(GRAB), consisting of Government and private industry relocation
experts, to examine Government relocation policy. To allow for the use
of private industry expertise in the rulemaking and possible
legislative actions, the GRAB was chartered through the Federal
Advisory Committee Act on July 9, 2004. The GRAB submitted a final
report of its findings on September 15, 2005. If implemented, the 100
plus recommendations of the GRAB would keep Government relocation
practices aligned with private sector best practices, as well as
improve the overall management of Government relocation programs and
reduce costs. This proposed rule transforms many of the GRAB's
recommendations into FTR policy. The GRAB Findings and Recommendations
and corresponding documents may be accessed at GSA's Web site at http://www.gsa.gov/grab
.
DATES: Interested parties should submit comments in writing on or
before October 2, 2007 to be considered in the formulation of a final
rule.
ADDRESSES: Submit comments identified by FTR case 2007-304 by any of
the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Search for any document by first selecting the proper document types
and selecting ``General Services Administration - All'' as the agency
of choice. At the ``Keyword'' prompt, type in the FTR case number (for
example, FTR Case 2007-304) and click on the ``Submit'' button. You may
also search for any document by clicking on the ``Advanced search/
document search'' tab at the top of the screen, selecting from the
agency field ``General Services Administration - All'', and typing the
FTR case number in the keyword field. Select the ``Submit'' button.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VIR), 1800 F Street, NW., Room 4035, ATTN: Laurieann
Duarte, Washington, DC 20405.
Instructions: Please submit comments only and cite FTR case 2007-
304 in all correspondence related to this case. All comments received
will be posted without change to http://www.regulations.gov, including
any personal information provided.
FOR FURTHER INFORMATION CONTACT: Mr. Ed Davis, Office of Travel,
Transportation and Asset Management (MT), General Services
Administration at (202) 208-7638 or e-mail at ed.davis@gsa.govfor
clarification of content. For information pertaining to status or
publication schedules, contact the FAR Secretariat at (202) 501-4755.
Please cite FTR case 2007-304.
SUPPLEMENTARY INFORMATION:
A. Background
The General Services Administration (GSA), Office of Governmentwide
Policy (OGP), reviews the regulations under its purview to address
current Government relocation needs and incorporates private industry
policies and best practices, where appropriate. The relocation services
industry is complex and changes frequently. Changes in relocation
policy need to be made to comport with industry best practices.
With the exception of the Relocation Income Tax Allowance (RITA),
which will be addressed in a subsequent proposed rule, most of the cost
of a relocation is related to the residence transactions. The Federal
Government has traditionally reimbursed up to 10 percent of the selling
price of the previous residence and 5 percent of the purchase price of
the new home (this is known as direct reimbursement). Currently, the
tax implications of this transaction are handled through a two-year
RITA process, and there are long delays in getting equity into the
hands of the employee so that a new residence can be purchased. Through
a homesale program, directed by a contracted vendor, these two issues
can be solved for the benefit of both the agency and employee. The
result is that the employee receives equity when selling to the
contracted vendor, and this transaction if accomplished through a
vendor, is not taxable to the employee.
For smaller relocation expenses such as the Miscellaneous Expense
Allowance (MEA), much of private industry uses lump-sum payments. These
payments have a small one-time administrative cost and do not need to
be reconciled in a post-payment audit. The administrative savings and
efficiency improvements of such systems are clear because far less
staff time is needed to administer, monitor, and audit payments in a
lump-sum scenario.
Private industry spends less time on its relocation packages
because they are tiered and handle special circumstances more flexibly.
Also, in private industry, payment or reimbursement of relocation
expenses to the employee or third party vendor rarely extends beyond
one year because there are few extensions. The focus is on getting the
transferee settled at the new location in permanent quarters as quickly
as possible. The main lesson that the Government can
[[Page 43217]]
learn from benchmarking against private industry is that efficiency is
important.
OGP has examined the issues facing agencies and their relocating
employees. Through GRAB recommendations, internal GSA discussions,
consideration of Governmentwide policy interests, and comments added by
the Executive Relocation Steering Committee, this proposed rule
emerged.
B. Proposed Rule
This proposed rule implements some of the GRAB's recommendations.
The changes in part 302 will necessitate the addition of the following
definitions to part 300-3: amended value sale, appraised value sale,
buyer's value option (BVO), fair market value, and relocation services
company (RSC).
The proposed changes to 41 CFR Chapter 302 are designed to:
Reinforce the difference between mandatory and discretionary
relocation allowances and clarify the tables in part 302-3- The GRAB
wanted to ensure that the FTR highlights which relocation benefits are
mandatory and which are discretionary. To do this, several errors need
to be corrected in the tables outlining benefits.
Use the standard continental United States (CONUS) per diem for
calculating actual expense per diems for househunting trips (HHTs) and
the locality rate per diem for calculating lump-sum HHT benefits in
part 302-5 - The GRAB final report explains this issue well:
``. . . , 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 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 both 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`` worth of the locality
rate? Simply saving the trouble of submitting receipts is not a
sufficient motivator to forego 5 days' 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.''
GSA originally intended for the househunting regulation to mirror
the TQSE process, where the agency either reimburses actual expenses
for up to 120 days at the lower standard CONUS rate or calculates a
lump-sum reimbursement for up to 30 days, with the higher locality rate
as the multiplier. This would give the agencies and transferred
employees a real chance to use the incentives of higher payments for a
shorter timeframe to get the employees to move into permanent quarters
faster. People do actually choose the lump sum for TQSE, but they do
not use the lump sum for HHTs because the error removed the intended
economic incentive. Agencies report that because of the error, the
lump-sum househunting trips are underutilized, while the lump sum for
TQSE is frequently utilized.
By emulating the TQSE regulations and correcting the error that GSA
made in creating the existing househunting regulation, real economic
incentives will help work towards employees managing their househunting
trips more economically. Just as with the TQSE, the use of the higher
locality rate for the lump-sum payment versus the lower standard CONUS
rate for actual expense reimbursement will incentivize faster
househunting trips managed more carefully by an employee who has
economic reasons to do so.
Changing the storage allowance for the temporary storage of
Household Goods by amending section 302-7.8 - The GRAB recommended
that, instead of allowing for temporary storage for 90 days with one
possible 90-day extension, as the FTR does today, the temporary storage
benefit should be more logically planned and utilized. The GRAB's
recommendation for temporary storage for CONUS to CONUS transfers is
that temporary storage would be limited to 60 days, with no extensions
possible. Federal agencies strongly oppose the loss of any possible
extension because of the inflexibility this imposes on legitimate
cases.
In consideration of the Federal agencies' need for flexibility, we
are proposing that CONUS to CONUS moves will have their storage reduced
to 60 days with a 30-day extension. This is in line with private
industry, which rarely stores household goods for very long. However,
since transfers to or from Outside the Continental United States
(OCONUS) locations present greater, inherent problems, we are proposing
to continue to allow for 90 days with a possible 90-day extension for
any shipment that has an OCONUS origin or destination.
It is also important for agencies to have a management plan for
deciding how and when they will grant temporary storage extensions.
This must be based on genuine relocation criteria and not an automatic
benefit. Extensions should only be granted for legitimate,
unanticipated reasons, not for anything that is the result of poor
planning by the employee.
Require employees to limit the asking price to 105% of the
appraised value estimate of their home value and to attend residence
transaction counseling sessions by changing section 302-12.3 - The GRAB
recommendation allows for having two 30-day periods in the marketing of
a home in the homesale program, with the latter period limited to 105%
of the appraised value or broker's estimate. This regulation, in line
with the current real estate market, where houses sit for much longer
than they did when the GRAB was meeting, sets the time for marketing
under the broker price at 60 days. This is fair to the home owner, who
would have 30 days to let the market justify a belief in a higher
price, and it is fair to the RSC, who would then have 30 days to market
the house with the price they saw as more in line with its value.
With mandatory counseling sessions, agencies ensure that the
employees who are relocating understand the different transactions
involved in a home sale or purchase. This is an important part of any
comprehensive program because unless the employee understands the
process, problems regarding implementation may occur.
Require homes to be listed for 60 days prior to accepting an
appraised value sale under section 302-12.3(c) - As was mentioned in
the explanation directly above, of the three major homesale programs
used by private industry, the appraised value option is the most costly
of the three, even though it is a valuable tool when compared to direct
reimbursement. The GRAB Report states that appraised value is used by
the Government for 41% of homesale program transactions versus the 18%
of private industry homesale transactions. The GRAB report strongly
recommends that Government homesale programs drive the balance towards
amended and BVO options.
By requiring that each agency contracting with an RSC employ a 60-
day listing prior to accepting an appraised value sale, the number of
appraised value sales will be reduced, and the Government will shift
its mix of homesale programs to resemble that of private industry.
According to the work of the Employee Relocation Council's auditor,
Raffa and Associates, as shown
[[Page 43218]]
in the GRAB Findings and Recommendations, a shift into the same
portfolio mix as private industry would save the Government $35.1
million per year.
A 60-day listing period may seem like a long time, but it allows
for sales in a slower market. In a heated housing market, the listing
will rarely get to 60 days.
Require employees to use the homesale marketing counseling services
offered by the homesale contractor under section 302-12.3(e) - One of
the problems inherent in homesale programs is the complexity of the
various programs. Direct reimbursement by contrast can be easier to
understand. If savings are going to be realized through the use of
homesale programs, the employee must understand the options thoroughly.
An easy way to do that is by having the employee receive counseling on
the various options provided by the RSC. The counseling helps the
agency, company, and employee because it clarifies what employees must
do to participate in the program and what options the employee has to
consider while dealing with the sale of one of his or her largest
assets. The agency has a responsibility to monitor these counseling
sessions and make sure that the materials and presentation are fair and
useful to the employee. Requiring this counseling is useful to
everyone.
Require that agencies examine and evaluate their relocation
programs and determine whether or not a comprehensive homesale program
should be part of their program under sections 302-12.105 and 302-
12.106 - The Government has a major difference 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 can assume title.
Therefore, the RSCs charge the Government slightly more than they
charge private companies, to cover the additional risk that the RSC
assumes on each property. This gives the appearance to agencies that
RSC-managed homesale programs are more expensive than direct
reimbursement for homesale costs, which is the most common practice
among Federal agencies. 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's. Furthermore, the GRAB recommended that each
agency try to tilt their mix of the three homesale programs away from
the more expensive appraised value and towards the amended and BVO
style programs, where actual offers determine the value of a residence.
GSA is in strong support of this program but is not willing to mandate
that all agencies implement a homesale program. GSA's position is that
this would go against the philosophy that agencies are better managers
of their own programs because they understand each agency's culture and
mission better than GSA. However, use of a comprehensive homesale
program through an RSC should be a first consideration for all agencies
in designing and administering their residence transactions, because
the economics of the relocation industry indicate that direct
reimbursement is a tool that is best used only for cases where the
property is difficult to sell (i.e., houseboats, mobile homes, geodesic
domes, houses with mold or artificial stucco, etc.). This proposed rule
would make use of a homesale program the first consideration.
The other reason that GSA does not want to mandate homesale
programs in lieu of direct reimbursement is that it believes market
forces are clearly directing agencies towards doing this as a business
decision. More and more agencies are contracting with RSCs for homesale
services. GSA also does not want the regulation to require one method
of residence transaction reimbursement, because this would possibly
prevent evolution of or migration to another new method should one
develop. Relocation is a quickly changing industry and the regulation
must allow agencies flexibility.
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 can
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 would be free to use his or her judgment to make sure the
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 proposal also eliminates the need for the
Government from having to specify what is covered by the MEA.
A standard payment for private industry is based on a month's
salary. At this time, the MEA payment to Federal employees remains
legally limited to one or two week's salary for a GS-13 step 10,
depending on family status. GSA is planning to address this limitation
in a legislative proposal.
C. Changes to Current FTR
This proposed rule--
Adds definitions for amended value sale, appraised value
sale, buyer's value option, fair market value and relocation services
companies in section 300-3.1.
Amends Table B, in section 302-3.2.
Amends Table H, in section 302-3.101.
Amends section 302-5.13 to make the standard CONUS rate
the operative per diem for calculating actual expense househunting
trips per diems and clarifies the availability and use of lump-sum
reimbursements.
Amends section 302-7.8 to limit household goods (HHG)
storage to 60 days with a possible 30-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.
Amends section 302-12.3 to require that the employee's
residence, if unsold after 30 days at a price set by the employee, be
listed at a price no more than 105% of the appraised value for 30 days
when an RSC is used and to require the employee to attend relocation
counseling sessions.
Amends sections 302-12.105 and 302-12.106 to require the
agencies that
[[Page 43219]]
use a homesale program to administer it in a manner that will drive the
programs towards the buyer value option and amended sales, and away
from appraised value sales.
Amends sections 302-16.1 and 302-16.2 to remove the
connection between the miscellaneous expense allowance and the
establishment and disestablishment of a residence and switches the
order of the two sections to make a better logical point.
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 proposed rule is not required to be published in the Federal
Register for notice and comment as per the exemption specified in 5
U.S.C. 553(a)(2); therefore, the Regulatory Flexibility Act, 5 U.S.C.
601, et seq., does not apply.
F. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the FTR 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 proposed rule is also exempt from congressional review
prescribed under 5 U.S.C. 801 et seq., since it relates solely to
agency management and personnel.
List of Subjects in 41 CFR Parts 300-3, 302-3, 302-5, 302-7, 302-
12, and 302-16
Government employees, Travel and transportation expenses.
Dated: June 19, 2007.
Kevin Messner,
Acting Associate Administrator.
For the reasons set forth in the preamble, under 5 U.S.C. 5701-
5709, GSA proposes to amend 41 CFR parts 300-3, 302-3, 302-5, 302-7,
302-12, and 302-16 as set forth below:
PART 300-3--GLOSSARY OF TERMS
1. The authority citation for 41 CFR part 300-3 continues 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; 36 FR 13747; 3 CFR, 1971-1975 Comp., p. 586, Office of
Management and Budget Circular No. A-126, ``Improving the Management
and Use of Government Aircraft.'' Revised May 22, 1992.
2. Amend Sec. 300-3.1 by adding alphabetically the terms and
definitions ``Amended Value Sale'', ``Appraised Value Sale'', ``Buyer's
Value Option (BVO)'', ``Fair Market Value'' and ``Relocation Service
Company (RSC)'' to read as follows:
Sec. 300-3.1 What do the following terms mean?
* * * * *
Amended Value Sale-A residential sale where a bona fide outside
offer to buy a residence is accepted by a relocation services company.
This offer can be equal to or higher than the guaranteed offer. If the
contract is acceptable, the RSC will sign the contract and amend its
guaranteed offer to reflect the new value based on the higher sales
price. The RSC will then disburse the transferee's equity (or remaining
equity if a portion had been disbursed earlier) based upon this amended
value, complete the acquisition of the property, and resell the home to
the outside buyer. Amended value sales are often called ``amend from
zero'' sales with the RSC guaranteed offer being the baseline from
which the amendments are made.
Appraised Value Sale-A residential sale where two or more
independent appraisers set the price for a guaranteed offer for the
purchase of a residence. Under this option, once a transferee's home is
placed in the homesale program, a relocation services company (RSC)
makes a guaranteed offer for the transferee's home based on the fair
market value established by independent appraisers. The offer is
guaranteed for a contract specified number of calendar days. If the
transferee accepts the guaranteed offer within the time period, the RSC
purchases the home, takes the home into its inventory, and disburses
the transferee's equity (or remaining equity if a portion had been
disbursed earlier) based upon the offer. It is then the RSC's
responsibility to sell the home, and the agency pays the RSC a fee that
covers the closing costs, other expenses, and the risk that the RSC may
lose money on the resale of the home.
* * * * *
Buyer Value Option (BVO)-A residential sale in which a transferee
in consultation with a broker sets the initial asking price and sells
through the relocation services company (RSC) for an acceptable outside
offer. If the transferee receives an offer from an outside buyer
acceptable to the RSC, the RSC buys the home from the transferee at
that price, disburses the equity (or remaining equity if a portion had
been disbursed earlier) and then immediately re-sells it to the outside
buyer; the agency pays the RSC a fee that covers the closing costs and
other RSC expenses. If, on the other hand, the transferee does not
receive an acceptable offer within, for example, 30 days, then the home
is placed in the homesale program and the RSC proceeds with the
appraised value option.
* * * * *
Fair Market Value-The price at which a property would most likely
sell if placed on the market for a reasonable period of time. It is the
most likely price that a well-informed buyer would pay and a well-
informed seller would agree to accept for a given property if the
property were placed on the market for a reasonable period of time.
* * * * *
Relocation Service Company (RSC)-A third party vendor under
contract with an agency to assist a transferred employee in relocating
to the new official station. Examples of the assistance include, but
are not limited to: homesale programs, home marketing assistance, home
finding assistance, and property management services.
* * * * *
PART 302-3--RELOCATION ALLOWANCE BY SPECIFIC TYPE
3. 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).
Sec. 302-3.2 [Amended]
4. Amend Sec. 302-3.2, Table B, Column 2, by removing entries
``3'' and ``4''.
Sec. 302-3.101 [Amended]
5. Amend Sec. 302-3.101, Table H, by redesignating entry ``5'' in
Column 1 as new entry ``3'' in Column 2; and in Column 1, redesignating
entry ``6'' and entry ``7'' as new entry ``5'' and new entry ``6''
respectively.
PART 302-5--ALLOWANCE FOR HOUSEHUNTING TRIP EXPENSES
6. The authority citation for 41 CFR part 302-5 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.
7. Amend Sec. 302-5.13 by revising the table to read as follows:
[[Page 43220]]
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 transportation expenses. Your actual transportation costs.
..........................................
You and/or your spouse's subsistence expenses. (a) A per diem allowance at the standard
CONUS rate (see http://www.gsa.gov/
perdiem), for you and/or your spouse
(i.e., if you both go together; or if you
go separately, the standard CONUS rate
multiplied by 2), 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, which is
dependent upon spousal participation, as
follows:
(1) If you go and your spouse does not, or
if your spouse goes and you do not,
multiply the applicable locality per diem
rate by 5.00 (see http://www.gsa.gov/
perdiem).
(2) If you and your spouse both go,
together or separately, multiply the
applicable locality per diem rate by 6.25
(see http://www.gsa.gov/perdiem).
----------------------------------------------------------------------------------------------------------------
Part 302-7--TRANSPORTATION AND TEMPORARY STORAGE OF HOUSEHOLD GOODS
AND PROFESSIONAL BOOKS, PAPER, AND EQUIPMENT (PBP&E)
8. The authority citation for 41 CFR part 302-7 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.
9. Revise Sec. 302-7.8 to read as follows:
Sec. 302-7.8 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 30 days; such a request 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 90 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; such a request 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.
(c) For all shipments, your HHG may be placed in temporary storage
at origin, in transit, at destination, or any combination of these, so
long as storage at Government expense does not exceed the applicable
time limit.
PART 302-12--USE OF A RELOCATION SERVICES COMPANY
10. 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).
11. Amend Sec. 302-12.3 by removing ``and'' in paragraph (b),
redesignating paragraph (c) as paragraph (f), and adding new paragraphs
(c), (d), and (e) to read as follows:
Sec. 302-12.3 Under what conditions may I use a relocation services
company?
* * * * *
(c) Agree that once an RSC presents a guaranteed offer through a
home buyout program, you must list your residence on the market to the
public for 30 days, at a price of no more than 105% of the guaranteed
offer;
(d) Agree that if you receive a bona fide offer from an outside
buyer that is at or above the guaranteed offer and acceptable to the
RSC, you may take the Amended Value sale option;
(e) Attend homesale marketing counseling sessions provided by the
chosen RSC; and
* * * * *
12. Revise Sec. 302-12.105 to read as follows:
Sec. 302-12.105 How must we administer a relocation services
contract?
If you have a relocation services contract you must:
(a) Administer your homesale program to give first consideration
towards the use of the buyer's value option (BVO).
(b) Administer your homesale program to give second consideration
to amended value sales.
(c) Monitor costs and make adjustments as necessary to ensure that
your homesale program continues to provide the best possible value to
the Government, considering costs, employee morale and mobility, and
other relevant considerations.
13. Amend Sec. 302-12.106, by removing ``and'' in paragraph (c),
redesignating paragraph (d) as paragraph (e), and adding a new
paragraph (d) to read as follows:
Sec. 302-12.106 What policies must we establish when offering our
employees the services of a relocation services company?
* * * * *
(d) How you monitor and balance between the three kinds of homesale
programs (appraised value, buyer's value option, and amended value);
and
* * * * *
PART 302-16--ALLOWANCE FOR MISCELLANEOUS EXPENSES
14. The authority citation for 41 CFR part 302-16 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, 1971-1975 Comp., p. 586.
Sec. Sec. 302-16.1 and 302-16.2 [Redesignated as Sec. Sec. 302-16.2
and 302-16.1]
15. Redesignate Sec. Sec. 302-16.1 and 302-16.2 as Sec. Sec. 302-
16.2 and 302-16.1 respectively; and 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 to help defray some
of the costs incurred due to relocating. (See part 302-10 of this
chapter for
[[Page 43221]]
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 of chapter 302.
(b) Expenses allowable under this section including, but not
limited to the following:
------------------------------------------------------------------------
General Expenses Fees/Deposits Losses
-----------------------------------------------------------------------
Appliances Fees for
disconnecting/
connecting
appliances,
equipment, or
conversion of
appliances for
operation on
available
utilities.
Rugs, draperies, and Fees for .........................
curtains cutting and
fitting such
items when
they are moved
from one
residence
quarters to
another.
Utilities (For mobile Deposits or .........................
homes, see Sec. 302- fees not
10.204) offset by
eventual
refunds..
Medical, dental, and food ............... Losses that cannot be
locker contracts recovered by transfer or
refund and are due to
early termination of a
contract.
Private Institutional care ............... Losses that cannot be
contracts (such as that recovered by transfer or
provided for handicapped refund and are due to
or invalid dependents early termination of a
only) contract.
Privately-owned vehicles Registration, .........................
Driver's
license, and
use taxes
imposed when
bringing into
certain
jurisdictions..
Transportation of pets The only costs
included are
those normally
associated
with
transportation
and handling
of dogs, cats,
and other
house pets, as
well as costs
due to
stringent air
carrier rules.
Inoculations,
examinations,
and boarding
quarantine
costs are
excluded. Also
excluded are
costs
associated
with large or
exotic
animals, costs
associated
with host
country
restrictions,
and costs
arising from
special
handling
difficulties.
------------------------------------------------------------------------
[FR Doc. E7-15156 Filed 8-2-07; 8:45 am]
BILLING CODE 6820-14-S