Nine Senators Express Concern Over Relocation and Education Expense Changes
Nine democratic senators July 23 wrote the Office of Management and Budget to express concern the proposed changes to the FAR would “unfairly hold federal employees and government contractors to different standards and could result in greatly increased costs to taxpayers.” The proposed lump-sum relocation change, following commercial practices, would allow reimbursement of such expenses on a lump-sum basis rather than the current practice of reimbursing contractors for relocation costs up to actual expenses. The senators site DCAA as saying the lump sum payment represents an “unacceptable risk” on the government and creates an “excessive audit task.” The final rule on training and education expenses would make such costs generally allowable for both contractors and federal employees as opposed to the current requirement that such costs cannot be reimbursed if their sole purpose is to obtain an academic degree or to qualify for a position that requires a degree. The senators said the result would be to “charge the government for education expenses” that Congress has prohibited for federal employees.
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