FAM No. 97-17
April 11, 1997
FINANCIAL ADMINISTRATION MEMORANDUM NO. 97 - 017 (II.G.6.)
To: Bureau Assistant Directors, Administration
Chief Executive Officer, Interior Service Center
Bureau Finance Officers
Coach Acquisition, Fiscal and Property Services
From: Focus Leader, Asset and Debt Management
Office of Financial Management
Subject: Contracting for Relocation Services - FTR Amendment 62
Attached is a copy of pages 13765 through 13767, Federal Register,
Volume 62, No. 55, dated Friday, March 21, 1997, which contain Federal
Travel Regulation, 41 CFR 302-6 and 302-12, Amendment 62. This
amendment eliminates the fixed dollar caps on reimbursement for sale and
purchase of residences and provides authority for agencies to enter into
cost reimbursable contracts for relocation services. It also provides
authority for agencies to place a maximum value on the homes that will
be fully covered by the home sale program.
The Department will continue to offer the relocation service program to
all eligible employees based on the Government-wide relocation services
contract issued by GSA. The Department has elected not to place a
maximum value on the property covered by the contract program.
GSA is currently in the process of obtaining new contracts to cover
relocation services and we will continue to be a mandatory user until
the end of the first contract period. At that time the Department may
elect to discontinue being a mandatory user of the Government-wide
contract. Contracting for relocation services on a cost reimbursable
basis has many hidden costs, including considerable tax consequences
that the agencies must bear. Therefore, a full review of the benefits
and cost effectiveness of changing the method of contracting must be
explored before an attempt is made to issue a Departmental contract.
The current relocation services contract does not require the Department
to incur a tax liability for any of the covered services.
The removal of the maximum dollar amount limitation on sale and purchase
of residences applies only to those employees whose effective date of
transfer (date the employee reports for duty at the new official
station) is on or after March 22, 1997.
Please direct any questions you may have on this subject to Mr. Lesley
Oden on (202) 208-6225.
William E. Webber /s/
Attachment
