|CHAPTER��15�-�USE�OF�RELOCATION�SERVICE�COMPANIES
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| | CHAPTER� 15 - USE OF RELOCATION SERVICE COMPANIES | 
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| | PART A:� USE OF RELOCATION SERVICE COMPANIES | 
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| | Effective on 24 October 1997 and applies to an employee whose effective date of transfer (seeAppendix A) is on after that date. | 
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| | C15000� AUTHORITY | 
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| | DOD may enter into contracts with private firms to provide relocation services to its employees. Examples of these services are: | 
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| | 1.� homesale program;� | 
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| | 2.� home finding assistance;� | 
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| | 3.� home marketing assistance;� | 
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| | 4.� spouse employment assistance; and� | 
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| | 5.� property management services (see Chapter 15, Part B). | 
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| | C15001� RESPONSIBILITIES OF DOD COMPONENTS | 
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| | Each DOD component shall:� 1) determine whether, to what extent, and under what conditions relocation services are to be made available to its employees, who transfer within or between components or between DOD components and other agencies; and 2) designate the employees entitled to the relocation services | 
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| | NOTE:� for par. C15002:� See subpar. C1057-B1, item f, to authorize payment under a relocation contract for reappraisal and re-inspection of hurricane-damaged homes for employees relocating from or to Presidentially declared disaster areas. | 
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| | C15002� GENERAL CONDITIONS AND LIMITATIONS FOR ELIGIBILITY | 
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| | A.� Employees Covered.�� | 
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| | Relocation services may be made available to employees only when� the employee's transfer from one official station to another is determined to be in the Government's interest and it isn't primarily for the convenience or benefit of the employee, or at the employee's� request. | 
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| | B.� Persons Excluded from Coverage.� | 
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| | The provisions of this Chapter don't apply to the following individuals/employees: | 
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| | 1.new appointees including those covered in par.C4050-A(new appointees to any position, including Senior Executive Service positions, and Presidential appointees); | 
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| | 2.employees assigned under the Government Employees Training Act (5 U.S.C.A. �4109); or | 
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| | 3.employees assigned or transferred to or from a duty station in a foreign area except (a) employees eligible for reimbursement of residence transaction expenses as provided in par.C14000-C, and (b) employees eligible for property management services under Part B. | 
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| | (NOTE:See subpar.C1057-B1, item f, to authorize payment under a relocation contract for reappraisal and reinspection of hurricane-damaged homes for employees relocating as a result of Hurricane Andrew from or to Presidentially-declared disaster areas of Florida and Louisiana.) | 
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| | C15003� PROCEDURAL REQUIREMENTS� AND CONTROLS | 
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| | A.� Employee Option.� | 
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| | Employees offered use of relocation services in� accordance with par.C15001shall be given the option to accept or reject the offer. | 
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| | B.� Dual Benefits Prohibited.� | 
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| | Once an eligible employee is offered and decides to use the services of a relocation company, reimbursement to the employee shall not be allowed for expenses authorized in other parts of this regulation that are analagous or similar to expenses or the cost for services the DOD component will pay for under the relocation service contract. | 
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| | C.� Transportation Agreements.� | 
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| | The employee must have signed a transportation agreement as required in par.C4001.� In the event the employee violates the terms of the agreement, the Government reserves the right to recover from the employee any and all payments made to the relocation company on the employee's behalf in accordance with par.C4357.� | 
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| | D.� Ineligible Individuals.� | 
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| | Components shall not make payment to relocation companies that will benefit ineligible individuals.� For example, where joint ownership of a residence exists between an eligible transferring employee and a non-Government employee, the benefits derived from relocation services accrue equally to the ineligible party.� This type of situation is addressed for direct reimbursement of real estate expense under par.C14000-A, item 4; similar provisions apply regarding relocation services. | 
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| | E.� Maximum Home Value.� | 
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| | The maximum home value under the DOD relocation contract for which homesale services are payable is $500,000, unless waived by the paying activity.� If a home is sold under a homesale program at a price exceeding $500,000, the employee is responsible for any additional costs unless the maximum is waived. | 
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| | PART B:� PROPERTY MANAGEMENT (PM) SERVICES��� | 
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| | C15050� GENERAL | 
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| | A.� When Payment for PM Services May be Authorized.� | 
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| | A DOD component may offer payment for PM services when determined through the Secretarial Process to be in the Government's interest to assist the employee in offsetting costs that are incurred as a result of the relocation associated with retaining a residence at the old PDS.� Payment for PM services may be authorized when an employee: | 
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| | 1.transfers in the Government's interest to a PDS in a foreign area;� | 
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| | 2.assigned to a foreign PDS, is transferred back to a non-foreign area different than the one the employee left when transferred to a foreign area and is eligible to sell a residence at Government expense (In this case the DOD component pays for PM services instead of the sale of an employee's residence at Government expense.); or | 
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| | 3.is authorized TCS (see par.C4111). | 
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| | B.How PM Services Are Obtained.� | 
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| | The DOD component shall use PM services provided in the DOD National Relocation Program contract. | 
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| | C.� Definitions | 
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| | 1.PM Services.� | 
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| | PM services are programs provided by private companies for a fee, which help an employee to manage a residence at the old PDS as a rental property.� These services typically include, but aren't limited to: | 
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| | a.obtaining a tenant;� | 
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| | b.negotiating the lease;� | 
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| | c.inspecting the property regularly; | 
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| | d.managing repairs and maintenance;� | 
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| | e.enforcing lease terms;� | 
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| | f. collecting the rent;� | 
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| | g.paying the mortgage and other carrying expenses from rental proceeds and/or funds of the employee; and� | 
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| | h.accounting for the transactions and providing periodic reports to the employee. | 
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| | 2.Non-foreign Area.� | 
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| | See Appendix A. | 
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| | 3.Foreign Area.� | 
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| | A foreign area under this Part means any area that isn't a non-foreign area. | 
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| | D.� Income Tax Consequences When Employee Receives PM Services.� | 
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| | An employee should be advised to consult with a tax advisor to determine if there will be any tax liability. | 
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| | E.� Employees Ineligible for Payment for PM Services.� | 
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