[Federal Register: October 24, 2002 (Volume 67, Number 206)]
[Proposed Rules]               
[Page 65467-65468]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[[Page 65467]]


Part IV

Department of Defense

General Services Administration

National Aeronautics and Space Administration


48 CFR Part 31

Federal Acquisition Regulation; Reimbursement of Relocation Costs on a 
Lump-Sum Basis; Proposed Rule

[[Page 65468]]



48 CFR Part 31

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: Notice of request for comments.


SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are considering revising the 
relocation cost principle to expand the use of reimbursement of costs 
on a lump-sum basis. The Councils are requesting comments regarding 
this potential change. The Councils will consider the comments received 
in their decision whether to develop a proposed rule. Should the 
Councils decide to draft a proposed rule, an additional 60-day public 
comment period will be provided.

DATES: Interested parties should submit comments in writing on or 
before December 23, 2002 to be considered in the formulation of a 
proposed 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: farnotice.relocationcosts@gsa.gov.
    Please submit comments only and cite FAR Notice on Reimbursement of 
Relocation Costs on a Lump-Sum Basis in all correspondence related to 
this case.

Building, Washington, DC, 20405, at (202) 501-4755 for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Jeremy Olson at (202) 501-3221. Please cite FAR 
Notice on Reimbursement of Relocation Costs on a Lump-Sum Basis.

SUPPLEMENTARY INFORMATION: The relocation cost principle at FAR 31.205-
35 permits the Government to reimburse contractors for relocation costs 
(with the exception of miscellaneous costs) up to the employee's actual 
expenses. For miscellaneous costs that are addressed 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 Councils are 
considering revising FAR 31.205-35, Relocation costs, to permit 
contractors the option of claiming employee relocation costs based on 
actual costs, an appropriate lump-sum basis, or a combination of the 
two approaches.
    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 Councils anticipate that this change may achieve overall 
benefits by reducing administrative costs for contractors and by 
improving employee morale. However, there is concern that permitting 
lump-sum payments in lieu of actual costs may result in an increase in 
costs to the Government.Therefore, the Councils invite interested 
parties to provided the following information to help assess the 
potential costs and benefits of the lump-sum reimbursement approach. 
Note that public comments provided in response to this notice will be 
available in their entirety to any requester, including any requester 
under the Freedom of Information Act (5 U.S.C. 552). Under no 
circumstances should respondents provide any information unless they do 
so with a clear understanding that their comments will be made 
available to the public.
    1. Commercial practice. What has been your company's experience in 
using a lump-sum approach instead of an actual cost method for 
reimbursement of employee relocation expenses? If used, is the practice 
to use the lump-sum approach for total costs of relocating employees, 
or only certain types of costs? If so, which types?
    2. Reasonableness. How would your company ensure that relocation 
costs charged to the Government using a lump-sum approach are 
    3. Limits. Does your company now use commercially available data, 
such as that developed by the Employee Relocation Council, in order to 
establish reimbursement limits on relocation costs? If so, what sources 
of commercially available data do you use, and how do you use the data? 
If not, what other criteria or standards could be (or are being) used 
to assess reasonableness?
    4. Benefits. What are the types and amounts of savings or other 
benefits that you anticipate would result if reimbursement on a lump-
sum basis were permitted?
    5. Costs. What are the types and amounts of costs or other 
disadvantages that you anticipate would result if reimbursement on a 
lump-sum basis were permitted?

    Dated: October 18, 2002.
Al Matera,
Director, Acquisition Policy Division.
[FR Doc. 02-27083 Filed 10-23-02; 8:45 am]