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[Senate Report 109-289]
[From the U.S. Government Publishing Office]

109th Congress                                                   Report
                                 SENATE
                                                                
 2d Session                                                     109-289
_______________________________________________________________________

                                     

                                                       Calendar No. 528

 
   TO EXTEND RELOCATION EXPENSES TEST PROGRAMS FOR FEDERAL EMPLOYEES

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 2146

   TO EXTEND RELOCATION EXPENSES TEST PROGRAMS FOR FEDERAL EMPLOYEES

                 July 21, 2006.--Ordered to be printed

                    U.S. GOVERNMENT PRINTING OFFICE
                          WASHINGTON : 2006
_____________________________________________________________________________

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        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   SUSAN M. COLLINS, Maine, Chairman
TED STEVENS, Alaska                  JOSEPH I. LIEBERMAN, Connecticut
GEORGE V. VOINOVICH, Ohio            CARL LEVIN, Michigan
NORM COLEMAN, Minnesota              DANIEL K. AKAKA, Hawaii
TOM COBURN, Oklahoma                 THOMAS R. CARPER, Delaware
LINCOLN D. CHAFEE, Rhode Island      MARK DAYTON, Minnesota
ROBERT F. BENNETT, Utah              FRANK LAUTENBERG, New Jersey
PETE V. DOMENICI, New Mexico         MARK PRYOR, Arkansas
JOHN W. WARNER, Virginia

           Michael D. Bopp, Staff Director and Chief Counsel
            Jennifer A. Hemingway, Professional Staff Member
      Joyce A. Rechtschaffen, Minority Staff Director and Counsel
          Jason M. Yanussi, Minority Professional Staff Member
                  Trina Driessnack Tyrer, Chief Clerk

                            C O N T E N T S

                              ----------                              
                                                                   Page
  I. Purpose & Summary...............................................00
 II. Background......................................................00
III. Legslative History..............................................00
 IV. Section-by-Section Analysis.....................................00
  V. Estimated Cost of Legislation...................................00
 VI. Evaluation of Regulatory Impact.................................00
VII. Changes in Existing Law.........................................00
                                                       Calendar No. 528
109th Congress
                                 SENATE
                                                                 Report
 2d Session                                                     109-289

======================================================================

   TO EXTEND RELOCATION EXPENSES TEST PROGRAMS FOR FEDERAL EMPLOYEES

                                _______
                                

                 July 21, 2006.--Ordered to be printed

                                _______
                                

 Ms. Collins, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 2146]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 2146) to extend 
relocation expenses test programs for Federal employees, having 
considered the same reports favorably thereon and recommends 
that the bill do pass.

                         I. Purpose and Summary

    The purpose of S. 2146 is to extend the authority for the 
General Services Administration to conduct relocation expenses 
test programs for federal employees for an additional four 
years. The original authority, enacted as part of the 1998 
Travel and Transportation Reform Act,\1\ expired on October 20, 
2005.
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    \1\ P.L. 105-264; 112 Stat. 2350.
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                             II. Background

    The federal government provides worldwide relocation 
assistance to approximately 28,000 federal civilian employees 
each year under various relocation rules and regulations at an 
estimated cost of more than $800 million.\2\ The relocation of 
federal employees has traditionally been governed by the 
Federal Travel Regulation (FTR),\3\ which implements the 
statutory requirements \4\ and Executive branch policies for 
relocation and travel by federal civilian employees and others 
authorized to travel at government expense. The FTR is 
promulgated by the Administrator of General Services. The 
General Services Administration's relocation management policy 
seeks to improve the effectiveness and efficiency of the 
federal government in providing or obtaining ``best value'' 
relocation services through the implementation of 
governmentwide policies and tools.\5\
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    \2\ Government Relocation Advisory Board, Findings and 
Recommendations, September 2005, p. 2.
    \3\ 41 CFR 300-304. Chapter 302 of the FTR contains federal 
civilian relocation policies.
    \4\ 5 U.S.C. Sec. Sec. 5721 through 5739.
    \5\ www.gsa.gov/relo
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    Under existing FTR requirements, certain relocation 
expenses must be reimbursed, including transportation and per 
diem for en route travel to the employee's new duty station, 
miscellaneous expenses, residence transactions, and the 
transportation and temporary storage of household goods.\6\ The 
FTR also identifies expenses that may be reimbursed at agency 
discretion, including costs associated with finding a home, 
securing temporary quarters, and the use of a relocation 
services company for guaranteed home sale and other 
services.\7\
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    \6\ Under the FTR regime, expenses for which the Agency is 
responsible include: transportation and a per diem for employees and 
immediate family members (Part 302-4); miscellaneous moving expenses 
(Part 302-16); the transaction costs for the sale or purchase of the 
new and old residences, or obtaining or breaking of a lease (Part 302-
11); transportation and temporary storage of household goods (Part 302-
7); extended storage of household goods (Part 302-8); and a relocation 
income tax allowance (RITA).
    \7\ These are items for which a relocating employee may be 
compensated at the discretion of the relevant office. Discretionary 
items include: house hunting (Part 302-5); temporary quarters 
subsistence expense (Part 302-6); shipment of privately owned vehicle 
(Part 302-9); property management services (Part 302-15) and home 
marketing incentives (Part 302-14).
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    Reducing federal travel costs has been a longstanding goal 
of the Congress. The Federal Employee Travel Reform Act if 1996 
\8\ made improvements in federal travel and relocation 
services. The Travel and Transportation Reform Act of 1998 \9\ 
authorized federal agencies to participate in travel pilot 
tests expected to save taxpayer dollars.\10\ The authority was 
limited to 10 pilot programs upon approval of the General 
Services Administration. The Act requires agencies to include 
in any request to the Administrator of General Services for 
approval of such a test program an analysis of the expected 
costs and benefits and a set of criteria for evaluating the 
effectiveness of the program.
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    \8\ P.L. 104-201.
    \9\ P.L. 105-264.
    \10\ Senate Report 105-295.
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Use of the authority provided by the Travel and Transportation Reform 
        Act of 1998

    Currently, Customs and Border Protection (CBP) deploys more 
than 30,000 front line personnel, including nearly 12,000 
border patrol agents, at the ports and along the country's 
borders to protect the nation against instruments of terror, 
facilitate international trade and assist in other national 
security efforts. CBP has found the average historical cost to 
the federal government to move a border patrol agent to be 
$72,000 under the FTR.\11\
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    \11\ Report from CBP Acting Commissioner Deborah J. Spero to David 
L. Bibb, Acting Administrator, General Services Administration, 
February 9, 2006.
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    As the seriousness of international threats escalated after 
9/11, the Office of Border Patrol (OBP) within CBP identified a 
need to relocate hundreds of agents to critical U.S. border 
locations. Border patrol agents volunteered to transfer to 
border locations deemed most vulnerable. Yet, the high cost of 
these transfers limited CBP's ability to relocate agents in a 
timely and cost-effective manner, and CBP sought alternative 
funding sources.
    In 2004 and 2005, CBP sought and received approval from GSA 
to conduct two relocation expenses test pilot programs designed 
to provide the Border Patrol greater flexibility to 
expeditiously relocate agents at a significant savings. Under 
both programs, transferees were fully responsible for arranging 
their own moves, rather than submitting expense reports 
supported by receipts, and received a predetermined single 
payment to cover all expenses incurred from the move.\12\ The 
lump-sum amount paid to relocating employees was dependent on 
the agents' family status and ranged from $5,000 for relocation 
of a single, nonhomeowner, to $20,000 for a multi-person 
household owning a home. The programs, known as the Voluntary 
Relocation Program and the Alternative Relocation Payment 
Program, were developed through cooperative efforts with the 
federal employee unions representing border patrol agents.
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    \12\ Mandatory and discretionary reimbursable relocation expenses 
are set out in the Federal Travel Regulation, Part 302.
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    The lump-sum payments have the added benefit of reducing 
the administrative burden. CBP found that administrative 
resources previously required to file and review detailed 
vouchers and process payments were reduced. From April 2004 
through September 2005, CBP processed 435 relocations at an 
average cost of $16,888 per move, resulting in estimated 
savings of $23,693,500 in relocation costs.\13\
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    \13\ Report from CBP Acting Commissioner Deborah J. Spero to David 
L. Bibb, Acting Administrator, General Services Administration, 
February 9, 2006.
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    CBP has adjusted the program to be more responsive to the 
needs of its employees. For example, as a direct result of 
input from participating employees, CBP increased the lump-sum 
amounts by an incremental margin to offset the tax burden on 
employees participating in the program.\14\ CBP's final report 
to the General Services Administration on the pilot programs 
indicate that participating employees appreciated the 
additional flexibility provided by the program and expressed 
interest in its continuation.\15\
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    \14\ In the initial survey of participating CBP employees, a small 
minority expressed concern that the lump-sum payment was inadequate to 
cover the costs of the move. Consequently, CBO increased the lump-sum 
payment to offset the tax burden to $6,750, $13,500, $20,250, or 
$27,000 according to the category of employee.
    \15\ Report from CBP Acting Commissioner Deborah J. Spero to David 
L. Bibb, Acting Administrator, General Services Administration, 
February 9, 2006.
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    GSA approved the Federal Bureau of Investigation's (FBI) 
Relocation Test Program in March 2003. The pilot program ended 
in April 2005. In its September 2005 report, the Governmentwide 
Relocation Advisory Board stated that the program ``has been 
extremely successful in providing the FBI with the flexibility 
in recruitment of vital private-sector personnel and the 
authority to provide a myriad of relocation of benefits to fill 
positions deemed critical in addressing the war on terrorism.'' 
\16\ The FBI reported a savings of more than $1.3 million with 
878 employees electing the fixed-rate reimbursement under the 
Relocation Test Program.\17\
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    \16\ Government Relocation Advisory Board, Findings and 
Recommendations, September 2005, p. 37.
    \17\ Government Relocation Advisory Board, Findings and 
Recommendations, September 2005, p. 37.
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    The capability to efficiently relocate personnel, while 
simultaneously minimizing costs, can be of significant benefit 
to federal agencies as they continue to recruit and retain a 
highly-skilled workforce. In its September 2005 report, the 
Government Relocation Advisory Board concluded that employee 
relocation should be completed in a cost-efficient manner and 
in the shortest time practicable to allow the transferee to be 
settled in the new location and focused on the new 
assignment.\18\ The Committee hopes that agencies will avail 
themselves of the relocation expenses test program authority as 
part of their broader human capital plans.
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    \18\ Government Relocation Advisory Board, Findings and 
Recommendations, September 2005, p. iv.
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                        III. Legislative History

    S. 2146 was introduced by Senators Collins, Lieberman, and 
Akaka on December 20, 2005, and was referred to the Committee 
on Homeland Security and Governmental Affairs. On January 27, 
2006, the bill was referred to the Subcommittee on Oversight of 
Government Management, the Federal Workforce, and the District 
of Columbia, which favorably polled the legislation on April 
21, 2006.
    On June 15, 2006, the Committee considered S. 2146 and 
ordered the bill reported favorably by voice vote without 
amendment. Members present were Senators Collins, Voinovich, 
Coleman, Coburn, Chafee, Bennett, Lieberman, Carper, Dayton, 
and Pryor.

                    IV. Section-by-Section Analysis

Section 1--Extension of Relocation Expenses Test Programs

    (a) Amends 5 U.S.C. Sec. 5739 to strike the provision 
limiting the relocation expenses test program to 24 months. 
Extends the authority for agencies, upon approval of the 
Administrator of General Services, to conduct relocation 
expenses test programs for an additional four years.
    (b) Provides that the amendments would take effect as 
though enacted as part of the Travel and Transportation Reform 
Act of 1998.

                    V. Estimated Cost of Legislation

                                                     June 30, 2006.
Hon. Susan M. Collins,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Madam Chairman: As you requested, the Congressional 
Budget Office has prepared the enclosed cost estimate for S. 
2146, a bill to extend relocation expenses test programs for 
federal employees.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.

S. 2146--A bill to extend relocation expenses test programs for federal 
        employees

    With the approval of the General Services Administration 
(GSA), federal agencies were able to test new and innovative 
methods of reimbursing their employees for travel and 
relocation expenses without seeking a waiver of current rules 
or law prior to the start of fiscal year 2005. (The authority 
for such relocation expense test programs expired on October 
20, 2005.) S. 2146 would reauthorize the relocation expenses 
test program until October 20, 2009.
    CBO estimates that implementing S. 2146 would reduce 
federal administrative expenses associated with employee 
reimbursement by about $15 million annually, assuming amounts 
provided in appropriation acts are correspondingly reduced. 
Enacting the legislation would not affect direct spending or 
revenues. S. 2146 contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
and would not affect the budgets of state, local, or tribal 
governments.
    Under existing Federal Travel Regulation (FTR) 
requirements, certain relocation expenses must be reimbursed, 
including transportation and per diem for travel to the 
employee's new duty station, real estate sales and settlement 
expenses, and the transportation and storage of household 
goods. Other expenses that may be reimbursed at an agency's 
discretion are costs associated with finding a home, securing 
temporary quarters, and the use of a relocation service 
company.
    Before authority to operate a relocation expenses test 
program expired, the U.S. Customs and Border Protection and the 
Federal Bureau of Investigation each initiated a voluntary 
relocation program. Those programs allowed employees being 
transferred to arrange and pay for their own moves using a 
predetermined lump-sum payment rather than submitting expense 
reports to obtain reimbursement. Based on information from GSA, 
CBO estimates that the two agencies reduced moving costs by 
about $15 million annually by implementing test programs 
outside of the requirements of the FTR. Assuming a similar 
level of participation, CBO estimates that implementing S. 2146 
would reduce relocation costs by about $15 million a year. 
Those savings would be achieved only to the extent that amounts 
provided in appropriation acts are correspondingly reduced.
    The CBO staff contact for this estimate is Matthew 
Pickford. This estimate was approved by Jeffrey Holland, Chief, 
Projections Unit.

                  VI. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill. CBO states that 
there are no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and no costs on 
state, local, or tribal governments. The legislation contains 
no other regulatory impact.

                      VII. Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic and existing law, in which no 
change is proposed, is shown in roman):

   TITLE 5, UNITED STATES CODE: GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     SUBPART D--PAY AND ALLOWANCES

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

SUBCHAPTER II--TRAVEL AND TRANSPORTATION EXPENSES, NEW APPOINTEES, 
                    STUDENT TRAINEES, AN6 TRANSFERRED EMPLOYEES

5739. Authority for relocation expenses test programs.

    (a)(1) Notwithstanding any other provision of this 
subchapter, under a test program which the Administrator of 
General Services determines to be in the interest of the 
Government and approves, an agency may pay through the proper 
disbursing official [for a period not to exceed 24 months] any 
necessary relocation expenses in lieu of any payment otherwise 
authorized or required under this subchapter. An agency shall 
include in any request to the Administrator of such a test 
program an analysis of the expected costs and benefits and a 
set of criteria for evaluating the effectiveness of the 
program.

           *       *       *       *       *       *       *

    (e) The authority to conduct test programs under this 
program shall expire [7 years] 11 years after the date of 
enactment of the Travel and Transportation Reform Act of 1998.

           *       *       *       *       *       *       *

                                  
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