TREASURY DIRECTIVE: 72-03
Date: July 14, 2004
Sunset Review: July 14, 2008
SUBJECT: Location of New Offices and Facilities in Rural Areas
1. PURPOSE. This directive states Departmental policy and procedures on locating new Treasury offices and other facilities in rural areas, in conformity with the Rural Development Act of 1972, as amended (the “Act”).
2. SCOPE.
a. This directive applies to all bureaus and offices in the Department. All the bureaus and offices (other than the IGs as defined in 2.b) are referred to here as “bureaus”.
b. The Inspector General and Inspector General for Tax Administration (the “IGs”) are independent and objective units within the Department, pursuant to the Inspector General Act of 1978, as amended, 5 U.S.C.A. Appendix 3. The IGs each have responsibilities in implementing the requirements of the Act, and for reporting to Congress on the Department’s policies and procedures for carrying out the Act. The policy and procedures set forth in this directive shall be applied by all bureaus and the IGs in their facility location decisions.
3. POLICY. The policy of the Department of the Treasury is to give first priority to locating new Treasury offices and other facilities in rural areas, subject to the following considerations and exclusions, unless there are substantial reasons for not doing so.
a. Considerations. When determining the feasibility of locating facilities in rural areas, express consideration, consistent with this policy, shall be given to the:
(1) efficient performance of the Department's missions and programs, in accordance with all applicable statutes, regulations and policies, as well as the nature and functions of the facilities involved, with due regard for the convenience of the public served, and to the maintenance and improvement of safe and healthful working conditions for employees;
(2) environmental and socioeconomic impacts on the employees and the communities involved;
(3) need for development and redevelopment of areas consistent with State, regional and local plans and programs (see Executive Order (E.O.) 12072, “Federal Space Management”; E.O. 13006, “Locating Federal Facilities on Historic Properties in Our Nation’s Central Cities”); and
(4) use of existing government-owned facilities which are adequate or economically adaptable to the efficient performance of the Department's programs.
b. Exclusions. This policy does not apply to:
(1) facilities acquired pursuant to statutory authority, where locating the facility in a rural area would be inconsistent with statutory language or Congressional intent;
(2) facilities acquired for temporary occupancy of one year or less;
(3) vacant land acquisitions on which no construction is planned; or
(4) permanent post of duty facilities used intermittently by personnel whose duties require their absence from the office for extended periods of time.
4. BACKGROUND. The Rural Development Act of 1972, as amended (codified in relevant part at 7 U.S.C. 2204b-1), directs the heads of all Executive departments and agencies to establish and maintain policies and procedures which give first priority to locating new Federal offices and other facilities in rural areas.
5. DEFINITIONS. The following terms used in this directive are defined.
a. Establishment of a Facility. Any action to acquire space or real property for the purpose of housing a new program activity involving the assignment or relocation of personnel. Expansion of an existing facility is not included unless it is for the purpose of housing a program activity different from that currently housed at that facility and which is not located elsewhere in the community.
b. Metropolitan Area. A Metropolitan Statistical Area (MSA) as defined by the Office of Management and Budget (OMB), subject to such modifications as the Secretary of the Treasury may determine to be appropriate for the purpose of this directive. MSA's are defined in the OMB Bulletin No. 03-04 (2003).
c. Office or Facility. Any building, structure, installation, or portions thereof where personnel are housed to perform their official duties.
d. Program Activity. A bureau or a major/distinct organizational/functional entity thereof, such as an administrative, regional, area, or field office; service or disbursing center; inspection station; laboratory; warehouse facility, etc.
e. Relocation of a Facility. The moving of a program activity and its personnel from one site to another either within the same community or to another community.
f. Rural Area. Rural area means a city, town, or unincorporated area that has a population of 50,000 inhabitants or less, other than an urbanized area immediately adjacent to a city, town, or unincorporated area that has a population in excess of 50,000 inhabitants. See Federal Management Regulation Bulletin 2003-B1.
g. Supervisory Policy Officials. Those Departmental Office officials to whom the Secretary has assigned supervisory responsibility as described in Treasury Order 101-05.
6. RESPONSIBILITIES.
a. The Deputy Chief Financial Officer has responsibility for approving bureau requests to establish or to relocate facilities in other than rural areas, when the requests concern facilities covered under paragraph 7.a. The IGs have responsibility for approving such requests within their respective offices.
b. The Director, Office of Asset Management shall:
(1) ensure that appropriate Departmental procedures are developed and implemented, in compliance with the Act;
(2) review bureau requests for Departmental approval of locations covered under paragraph 7.a. for compliance with the Act, and with the policies set forth in this directive. This review shall involve coordination with appropriate Departmental supervisory policy officials;
(3) provide recommendations for the Deputy Chief Financial Officer’s approval or disapproval of bureau location requests covered under paragraph 7.a.; and
(4) conduct periodic reviews of bureau implementing instructions and records for compliance with this directive and provide recommendations to the bureau for improvement when bureau procedures and documentation are found in noncompliance or incomplete.
c. The IGs shall, with respect to their offices, review requests within their offices for approval of locations covered under paragraph 7.a. for compliance with the Act, and with the policies set forth in this directive.
d. The Deputy Assistant Secretary for HQ Operations, Heads of Bureaus, and the IGs shall ensure, for their respective bureaus and offices, that:
(1) instructions and controls are established to comply with the provisions of this directive; and
(2) documentation of new offices and facilities is maintained and made available to the Director, Office of Asset Management to perform periodic reviews and assessments of Departmental compliance.
7. DEPARTMENTAL OR IG APPROVAL OF OTHER THAN RURAL LOCATIONS. Except as may be otherwise required by statute or an applicable external regulation:
a. Approval to establish or relocate facilities in other than rural areas shall be obtained when the request concerns:
(1) a major facility acquisition;
(2) significant organizational changes which involve geographic, regional adjustments requiring approval by Departmental supervisory policy officials (see Treasury Directive (TD) 21-01, "Organizational Changes"); or
(3) a program activity which involves, in its entirety, fifty or more employees AND which otherwise is not a part of a proposal covered by paragraphs 7.a.(1) or (2).
b. Requests for Departmental or IG approval shall contain the following information:
(1) a brief description of the type of program activity concerned, the number of employees involved, and the reason(s) for establishing or relocating the facility;
(2) a brief description of the program activity requirements which affect the location selection, including (if applicable) a description of the area to be served by the facility; and
(3) a comparative analysis of alternative locations, which briefly discusses considerations such as the following (including real estate, labor and other operational costs when appropriate) in relation to each alternative location:
(a) program implementation:
1. impact on program activity due to loss of employees not relocated, and the availability of workers to replace those lost due to relocation;
2. impact on agreed and required coordination with other Treasury organizations, Federal agencies, and State and local governments;
3. the proximity to supporting services (equipment maintenance and supply, mail, etc.); and
4. the proximity to the public to provide efficient service and support.
(b) socioeconomic impacts:
1. relocation of employees to new location;
2. availability of low and moderate income housing on a nondiscriminatory basis for employees;
3. location and adequacy of medical facilities, schools, recreation facilities and other public services, and the convenience of the facility to the public and employees, including the availability and adequacy of transportation; and
(c) community development or redevelopment impact, including environmental implications and locality incentives.
c. Bureau requests for Departmental approval shall be submitted in triplicate to the Deputy Chief Financial Officer at least sixty days before the proposed effective date. A request for approval from an Inspector General’s office shall be submitted in triplicate to the appropriate Inspector General at least sixty days before the proposed effective date.
d. Bureaus and the IGs will provide written records of actions on requests to the Office of Asset Management.
8. BUREAU AND IG APPROVAL OF OTHER THAN RURAL LOCATIONS.
a. Approval of plans to establish or to relocate facilities in other than rural areas which are NOT covered by paragraph 7.a. shall be given by the bureau or IG officer authorized to approve such requests.
b. Requests for bureau or IG approval shall contain (as appropriate) the information outlined in paragraph 7.b.
c. A written record of the action on the request shall be maintained by the bureau or IG.
9. CANCELLATION. TD 72-03, “Location of New Offices and Other Facilities in Rural Areas,” dated August 19, 2003, is rescinded.
10. AUTHORITY. The Rural Development Act of 1972, as amended (codified in relevant part at 7 U.S.C. 2204b-1).
11. REFERENCES.
a. Competition in Contracting Act of 1984.
b. Inspector General Act of 1978, as amended, 5 U.S.C.A. App. 3.
c. E.O. 12072, “Federal Space Management,” dated August 16, 1978.
d. E.O. 13006, “Locating Federal Facilities on Historic Properties in Our Nation’s Central Cities,” dated May 21, 1996.
e. 41 Code of Federal Regulations, Part 102-83, “Location of Space”, 67 Fed. Reg. 76880 (2002).
f. Federal Management Regulation Bulletin 2003-B1, “Locating Federal Facilities in Rural Areas”, 68 Fed. Reg. 2776 (2003).
g. Letter of September 7, 1976, from the Acting Comptroller General to the Secretary of the Treasury regarding Treasury's implementation of and compliance with the Agricultural Act of 1970.
h. Treasury Directive 21-01, “Organizational Changes.”
i. Treasury Directive 72-02, “Acquisition, Utilization, and Disposal of Treasury Real Property Assets.”
j. Treasury Order 101-05, “Reporting Relationships and Supervision of Officials, Offices and Bureaus, Delegation of Certain Authority in the Department of the Treasury.”
k. U.S. General Accounting Office Report (B-114873), “Progress and Problems in Giving Rural Areas First Priority When Locating Federal Facilities,” dated September 7, 1976.
l. U.S. General Accounting Office Report (GAO-01-805), “Facilities Location: Agencies Should Pay More Attention to Costs and Rural Development Act,” dated July 31, 2001.
12. OFFICE OF PRIMARY INTEREST. Office of Asset Management, Office of the Deputy Chief Financial Officer, Office of the Assistant Secretary for Management.
Jesus H. Delgado-Jenkins
Acting Assistant Secretary for Management