United States Department of Agriculture
Research, Education, and Economics
ARS * CSREES * ERS * NASS
Policies and Procedures
Title: | Home Marketing Incentive Award Program |
Number: | 341.3 - NASS |
Date: | August 3, 2000 |
Originating Office: | Financial Management Division, Travel and Relocation Services Branch, ARS/AFM |
This Replaces: | |
Distribution: | All NASS Employees |
This bulletin announces the implementation of the Home Marketing Incentive Award Program for NASS employees. This bulletin is effective for transferees who reported for duty on or after June 1, 2000, and only for those employees who use the contracted relocation services company to sell their residence. *Minor changes made on 8/28/00 and again on 9/8/00 |
Table of Contents
1. Authority
2. Background
3. Eligibility
4. Initiation and Approval of Award
5. Summary of Responsibilities
EXHIBIT 1
EXHIBIT 2
EXHIBIT 3
The General Services Administration issued Amendment 61 on March 22, 1997, which allowed agencies to offer a Home Marketing Incentive Award.
The relocation Home Marketing Incentive Award will take the form of a Special Act or Service Award (SAS), *alternatively known as an Extra Effort Award*(Changes made on 8/28/2000). Part 451 of the Code of Federal Regulations describes an SAS award as a contribution or accomplishment in the public interest which is a nonrecurring contribution either within or outside job responsibilities which benefit the Government. This definition is consistent with the activity of a transferee's sale of their residence, by allowing for the fact that the transferee's sale of a home returns benefits to the Government, but is not directly a part of the employee's job responsibilities.
The following program has been developed by the Agricultural Research Service, Financial Management Division for the National Agricultural Statistics Service (NASS). This is an optional program for employees authorized a transfer of station/relocation as a benefit to the Government. The objective is to reduce the overall cost of relocating NASS employees and share a portion of that savings with employees.
The Government's Relocation Services Program allows NASS employees to receive a guaranteed offer to purchase their residence. Under this program, a relocation services company; e.g., Cendant Mobility, Associates Relocation Management, or Prudential Relocation Services, arranges for independent appraisers to determine market value for the transferee's residence. The contractor then offers to buy the residence at that market value. This is a guaranteed offer.
If the contractor buys the residence, the contractor inventory professionals must manage the maintenance and marketing of the residence until a buyer is found. In order to reimburse the contractor for carrying costs, broker commissions, repairs, settlement costs and resale losses, NASS pays contractor fees ranging from 22 to 29 percent of the residence's market value offer.
With the relocation Home Marketing Incentive Award Program, the transferee is encouraged to actively find an outside buyer who would purchase the residence at the same or higher value than the appraised value offered by the relocation company. If the outside offer received is considered a bona fide offer by the contractor, the contractor still incurs the same broker's commission and settlement costs, but markedly lower repair and carrying costs, because the residence, already under contract to an outside buyer, is carried for a much shorter time period. In addition, the contractor incurs no risk of resale loss. Consequently, NASS pays the contractor a lower fee of approximately 13.75 to 13.90 percent of the homes market value.
The relocation Home Marketing Incentive Award Program will introduce a cash incentive award for transferees who successfully find a buyer and sell their residence. This program only applies to transfer of station (relocation) employee's who choose to use the Government's Relocation Services Program and actively seek to find an outside buyer whom will pay the transferee more than the guaranteed market value offer from the relocation company.
To be eligible for the Home Marketing Incentive Award, a transferee must:
This program does not apply to:
Eligibility for the Home Marketing Incentive Award will be determined by the Budget and Administrative Services Office (BASO), when the billing invoice is received from the relocation company. Once BASO has confirmed the eligibility and the calculation of the award, BASO will initiate an AD-287-2, Recommendation & Approval of Awards and forward to the Associate Deputy Administrator for Field Operations for approval.
Transferees will receive an SAS award of the lesser of 5% of the price the relocation services company paid when it purchased the residence or the savings the Agency realized from the reduced fee as a result of the amended value purchase, whichever is less, this amount may not exceed a maximum of $5,000. Payment is received through ordinary payroll channels just as payment is received for other awards or paychecks. The relocation Home Marketing Incentive Award will be taxable income for the transferee.
Relocation incentive awards will be funded from amounts budgeted for relocation expenses.
Budget and Administrative Services Office
Award Approving Official
W. G. HORNER
Deputy Administrator
Administrative and Financial Management
*Home Marketing Incentive Award Program Calculation
(Changes made on 9/8/2000)
Name: (Last, First, Middle):___________________________________________________________ | ||
Position Title, Series,
Grade:__________________________________________________________
|
||
Recommendation and Calculation:
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||
|
= $ ________________ | |
|
= $
__________________ = $ __________________ |
|
Savings Realized by Agency = | $___________________ | |
*Total Award $ |
================== | |
* The award paid will be the lesser of 1 and 2 above not to exceed
a maximum of $5,000
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||
Prepared by:_________________________ Date | ___________________ | |
Financial Officer:_____________________ Date | __________________ |
*Sample - Justification language for cash award
(Changes made on 8/28/2000)
(Name) has merited a Special Act or Service (Extra Effort Award) award by achieving
savings for NASS.
Savings were achieved by the above named employee through successfully marketing
his/her home in association with NASS' relocation Home Marketing Incentive program.
The savings was achieved by the employee enabling the Government's relocation
contractor to acquire his/her property, under the terms of our relocation services
contract, at the lower amended/assigned rate fee rather than the higher guaranteed home
purchase rate.