[Federal Register: December 11, 2003 (Volume 68, Number 238)]
[Proposed Rule]
[Page 69263-69265]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11de03-43]
[[Page 69263]]
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Part VII
Department of Defense
General Services Administration
National Aeronautics and Space Administration
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48 CFR Part 31
Federal Acquisition Regulation; Reimbursement of Relocation Costs on a
Lump-Sum Basis; Proposed Rule
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 31
[FAR Case 2003-002]
RIN 9000-AJ81
Federal Acquisition Regulation; Reimbursement of Relocation Costs
on a Lump-Sum Basis
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) to revise the relocation cost
principle to expand the use of reimbursement on a lump-sum basis to
certain types of employee relocation costs.
EFFECTIVE DATES: Interested parties should submit comments in writing
on or before February 9, 2004 to be considered in the formulation of a
final rule.
ADDRESSES: Submit written comments to-General Services Administration,
FAR Secretariat (MVA), 1800 F Street, NW., Room 4035, ATTN: Laurie
Duarte, Washington, DC 20405.
Submit electronic comments via the Internet to--farcase.2003-002@gsa.gov.
Please submit comments only and cite FAR case 2003-002 in all
correspondence related to this case.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat at (202) 501-4755
for information pertaining to status or publication schedules. For
clarification of content, contact Mr. Edward Loeb, Policy Adviser, at
(202) 501-0650. Please cite FAR case 2003-002.
SUPPLEMENTARY INFORMATION:
A. Background
The relocation cost principle at FAR 31.205-35 permits the
Government to reimburse contractors for certain types of relocation
costs, with the exception of miscellaneous costs, up to the employee's
actual expenses. For miscellaneous costs that are described at FAR
31.205-35(a)(5), the Government may reimburse the contractor a flat or
lump-sum amount up to $5,000, in lieu of actual costs. The cost
principle has no ceiling for miscellaneous expenses when reimbursement
is based on actual expenses.
In order to help the Councils decide whether to expand the use of
reimbursement on a lump-sum basis, DoD, GSA, and NASA published a
notice requesting public comments in the Federal Register at 67 FR
65468, October 24, 2002, and invited interested parties to provide
information to help assess the potential costs and benefits of the
lump-sum reimbursement approach. Nine respondents submitted public
comments. After reviewing the public comments that were submitted, the
Councils decided to explore further the views of interested parties.
Accordingly, DoD, GSA, and NASA published a notice of public meeting in
the Federal Register at 68 FR 4054, January 27, 2003, and invited
interested parties to attend a public meeting held on February 6, 2003,
at the Department of the Interior, Washington, DC, to present their
views on the subject. Representatives from an industry association, a
travel and relocation management firm, and a defense contractor
presented their views.
It is apparent from the public comments submitted and the
discussions at the public meeting that, in addition to the
miscellaneous relocation costs for which lump-sum reimbursements are
already permitted by FAR 31.205-35(b)(4), it is now common commercial
practice to reimburse relocating employees on a lump-sum basis for
their house-hunting, final move, and temporary lodging expenses.
Accordingly, the Councils are proposing to amend the relocation cost
principle to permit contractors the option of being reimbursed on a
lump-sum basis for three types of employee relocation costs, namely,
(1) costs of finding a new home, (2) costs of travel to the new
location, and (3) costs of temporary lodging. These three types of
costs are in addition to the miscellaneous relocations costs for which
lump-sum reimbursements are already permitted. While individual
receipts are not required with a lump-sum approach, contractors would
still have to demonstrate that amounts paid are reasonable and
appropriate for the circumstances of each relocating employee.
The proposed rule is expected to reduce the accounting and
administrative burden of the relocation cost principle on contractors
and lead to faster relocations. Costs to the Government are not
expected to increase significantly as a result of this revision.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The Councils do not expect this proposed rule to 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 most contracts awarded to small entities use simplified
acquisition procedures or are awarded on a competitive, fixed-price
basis, and do not require application of the cost principles and
procedures discussed in this rule. An Initial Regulatory Flexibility
Analysis has, therefore, not been performed. We invite comments from
small businesses and other interested parties. The Councils will
consider comments from small entities concerning the affected FAR Part
31 in accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 601, et seq. (FAR case
2003-002), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the FAR do not impose information collection requirements
that require the approval of the Office of Management and Budget under
44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 31
Government procurement.
Dated: December 8, 2003.
Laura Auletta,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA propose amending 48 CFR part 31 as
set forth below:
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES
1. The authority citation for 48 CFR part 31 is revised to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
2. Amend section 31.205-35 by revising paragraph (b)(4) to read as
follows:
31.205-35 Relocation costs.
* * * * *
(b) * * *
(4) Amounts to be reimbursed shall not exceed the employee's actual
expenses, except that reimbursement on an appropriate lump-sum basis to
the individual employee may be allowed for any of the following
relocation costs:
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(i) Costs of finding a new home, as discussed in paragraph (a)(2)
of this subsection.
(ii) Costs of travel to the new location, as discussed in paragraph
(a)(1) of this subsection (but not costs for the transportation of
household goods).
(iii) Costs of temporary lodging, as discussed in paragraph (a)(2)
of this subsection.
(iv) Miscellaneous costs of the type discussed in paragraph (a)(5)
of this subsection, not to exceed a maximum lump-sum amount of $5,000.
* * * * *
[FR Doc. 03-30695 Filed 12-10-03; 8:45 am]