Cost Reimbursable Contract Employee Relocation Costs

[Old-Dog]

According to FAR 31.205-35 certain costs relating to the sale of a residence at a former location is reimbursable up to 14% of the sales price.

What happens when the employee can not sale the residence (it has been on the market for 2 years) due to the ecomony but has been reimbursed for duplicate home owners costs.

My opinion is that all costs that were paid to the employee and covered under the 14% limitation are unallowable.

[here_2_help]

According to FAR 31.205-35 certain costs relating to the sale of a residence at a former location is reimbursable up to 14% of the sales price.

What happens when the employee can not sale the residence (it has been on the market for 2 years) due to the ecomony but has been reimbursed for duplicate home owners costs.

My opinion is that all costs that were paid to the employee and covered under the 14% limitation are unallowable.

George,

I don't think you've provided enough information to reach a conclusion one way or the other. You say, "the employee ... has been reimbursed for duplicate home owners costs," but then cite to a provision related to a limitation on a sale of a residence. I suspect there is more to the story.

If not, and that's all there is, then I cannot answer your question. Perhaps others will venture in where I fear to tread.

H2H

[Jacques]

George, is your question, "How should the government handle allowable relocation costs that are capped based on a sales price of the property, when the property has not been sold?" If so, is this at contract closeout?

[Old-Dog]

George, is your question, "How should the government handle allowable relocation costs that are capped based on a sales price of the property, when the property has not been sold?" If so, is this at contract closeout?

Actually what I wanted to know is whether or not cost paid for duplicate home owners cost, to an employee that has relocated but has not been able to sell his house at his former job location, is allowable in accordance with FAR 31.205-35. The time limit for selling the house has expired.

[Jacques]

George, what do you mean by, "The time limit for selling the house has expired."? I see no reference to a time limit related to "continuing costs of ownership of the vacant former actual residence being sold" in FAR 31.205-35. Is this elsewhere in the FAR or CAS, or is this a contractor policy?

[Retreadfed]

According to FAR 31.205-35 certain costs relating to the sale of a residence at a former location is reimbursable up to 14% of the sales price.

What happens when the employee can not sale the residence (it has been on the market for 2 years) due to the ecomony but has been reimbursed for duplicate home owners costs.

My opinion is that all costs that were paid to the employee and covered under the 14% limitation are unallowable.

What do you mean by "duplicate home owners costs"? Can you give us examples of what those costs are?

[Old-Dog]

What do you mean by "duplicate home owners costs"? Can you give us examples of what those costs are?

Continuing costs of ownership of the vacant former actual residence being sold, such as maintenance of building and grounds (exclusive of fixing up expenses), utilities, taxes, property insurance, and mortgage interest, after the settlement date or lease date of a new permanent residence, except that these costs, when added to the costs described in paragraph (a)(3) of this subsection, shall not exceed 14 percent of the sales price of the property sold. anks for the feedback.

My company's policy set the two limit (taken from the Federal Travel Regs) and the policy was approved by the CO.