DATE: October 24, 2002
SUBJECT: Federal Acquisition Regulation (FAR); Reimbursement of Relocation Costs on a Lump-Sum Basis
SOURCE: Federal Register, Ocotber 24, 2002, Vol. 67, No. 206, page 65467
AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)
ACTION: Request for Comments
SYNOPSIS: Comments are being sought from industry on whether FAR 31.205-35, Relocation Costs, should be revised to expand the use of lump-sum payments to reimburse contractors for relocation expenses.
EDITOR'S NOTE: Recently, FAR 31.205-35(b)(4) was amended to increase, from $1,000 to $5,000, the ceiling for miscellaneous relocation expenses when the contractor uses the lump-sum payment method. For more on this change, see the June 27, 2002, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Circular (FAC) 2001-08, Miscellaneous Amendments."
DATES: Comments are due on or before December 23, 2002.
ADDRESSES: Submit comments to General Services Administration, FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405, or by e-mail to firstname.lastname@example.org. Cite "FAR Notice on Reimbursement of Relocation Costs on a Lump-Sum Basis" in all correspondence related to this request for comments.
FOR FURTHER INFORMATION CONTACT: Jeremy Olson, 202-501-3221.
SUPPLEMENTAL INFORMATION: FAR 31.205-35 requires the government to reimburse a contractor up to an employee's actual expenses with one exception: the miscellaneous costs identified in FAR 31.205-35(a)(5) (such as disconnecting and connecting appliances, automobile registration, forfeited utility fees and deposits) may be reimbursed a flat, or lump-sum, amount up to $5,000.
The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council are considering revising FAR 31.205-35 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 may increase costs to the government. Therefore, the Councils are inviting industry to provide the following information to help the assess the potential costs and benefits of the lump-sum reimbursement approach:
FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.
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