Home Marketing Incentive Payments Date: Fri, 13 Feb 1998 15:55:35 -0500 To: "AO - All Administrative Officers" From: "Alice A. Sabatini" Subject: Home Marketing Incentive Payments Cc: "Catherine L Hill, ACH/Operations, Reston, VA" , "DC - All District Chiefs", "B - Branch Chiefs and Offices", "Kelly L Bradley, Chief, FORS, Reston, VA" , "Nancy J Hill, Chief, Mgmt Support Section, Reston, VA" , "Ruth C Hines, Secretary (OA), Reston, VA" , "Alice A Sabatini, Administrative Officer, Reston, VA" , "Jackie Johnson, Financial & Budget Specialist, Reston, VA" , "Tammy C D'Elia, Budget & Financial Specialist, Reston, VA" , "Michele L O'Meara, Financial Specialist, Reston, VA" , "Susan K Clark, Budget & Financial Specialist, Reston, VA" , "Amy C Cornwell, Accounting Technician, Reston, VA" , "Patrick D Smith, Computer Specialist, Reston, VA" , "Patricia A Powers, Admin. Operations Assistant, Reston, VA" , "Elizabeth A Brenner, Management Assistant, Reston, VA" , "Michele D Fanning, General Services Clerk, Reston, VA" , "Harry M Padbury, Mail Clerk, Reston, VA" Recent GSA regulations entitle relocating travelers to 5% incentive allowances if they find a buyer for their homes rather than waiting on the relocation contractor to sell the home. The incentive allowance can only be obtained if the relocation contractor is used; it is not available on a direct reimbursement transaction. The following is an email from Susan Sheely, Chief, Travel Branch in OFM providing additional information. The Department of Interior has decided that all relocating employees are eligible to receive the allowances--the USGS cannot restrict their use. You might also want to review the DOI web pages for more information on this issue. The USGS OFM does not intend to issue procedural guidance as they believe that the implementing instructions are complete in the DOI Financial Administration Memos (FAM) on this subject (the FAMs can be accessed from the OPS home page, URL below). Please contact Susan Sheely if you need additional information on this subject. Also worthy of note is that there are now three vendors on the GSA relocation contract available for use at any location in the U.S. They compete against each other for awards. Information on the relocation contractors can be found on the Office of Program Support web page at http://www.usgs.gov:8888/ops/finance/ftrchng.html. This page has hot links to the DOI web pages and information on other new travel regulations that have not been widely disseminated. ---------------------------------------------------------------------------- ---------------------- >Date: Fri, 13 Feb 1998 13:09:21 -0500 >To: "Alice A. Sabatini, Division Administrative Officer" , > "Susan R Sheely, Reston, VA" >From: "Susan R. Sheely" >Subject: Re: Home Marketing Incentive Payments > >Alice, below is a much overdue response to some questions you raised quite >some time ago. I verified my information with a departmental contact and >the following is some information on the home marketing incentive program: > > Once an employee is authorize to relocate for the benefit of the >Government, he/she automatically becomes eligible to use the Relocation >Services Contract according to the Departmental policy and agreements with >labor organizations. Using this as a starting point - FAM 97-014, dated >March 31, 1997, restates this policy and states that all employees >participating in relocation services program may receive the incentive >allowance by successfully marketing his house. Therefore, the agency (DOI) >as required by the regulation made the determination to pay the incentive >(5% of the amended value sale) to all employees who successfully marketed >their home and obtained an amended value sale fee for the government. >These entitlements do not require a separate bureau policy. > >The following examples show why the Department is totally correct in >offering the incentive to all participants of the relocation service program. > > Appraised value of the home $187,000 > > Amended value sale (seller finds a buyer) $190,000 (5% = >$9,500) > > Appraised Value Sale fee Associates 22.7% $42,449 > > Amended Value Fee 13.8% 25,806 > > Employee Incentive Allowance 9,500 > > Total amended value and employee incentive 35,306 > > Savings to the agency if employee finds buyer 7,143 > > Savings to the Gov't including Fed. Tax @ 28% 9,803 > > > Appraised Value Sale fee HFS 22% $41,140 > > Amended Value Fee 12.98% 24,272.60 > > Employee Incentive Allowance 9,500 > > Total amended value and employee incentive 33,772.60 > > Savings to the agency if employee finds buyer 7,367.40 > > Savings to the Gov't including Fed. Tax @ 28% 10,027.40 > > > > Appraised Value Sale fee Prudential 22.9% $42,823 > > Amended Value Fee 13.5% 25,245 > > Employee Incentive Allowance 9,500 > > Total amended value and employee incentive 34,745 > > Savings to the agency if employee finds buyer 8,078 > > Savings to the Gov't including Fed. Tax @ 28% 10,738 > > > As demonstrated above there is a big savings to the bureau and government >for the employee to sell his/her house. > >The second issue is whether you can restrict relocation allowances - If the >move is for the benefit of the Gov't they must be paid with the exception >of Temp. Qtrs. House Hunting Trip and extended storage. These two require >a decision that they are necessary and authorized. > >Currently any move within DOI that is in response to an announcement >Department-wide or Government-wide should be considered for relocation >allowances unless there is no promotion potential and the person selected >can clearly show that the move is for personal reasons and personal >convenience. > >If the above information does not sufficiently address the issues, please >let me know and I will seek further explanations. > >Susan > >Susan R. Sheely, Chief >Travel Management Branch >703-648-7602 Fax 703-648-4112 >ssheely@usgs.gov > >