DAO 203-20

SECTION 1. PURPOSE.

.01 This Order sets forth the prescribed standards and procedures for the establishment of charges for rental quarters and related facilities and costs provided to employees of the Department of Commerce (the Department) and employees of government contractors to the Department within the fifty states, the District of Columbia, and the territories and possessions of the United States.

.02 This revision updates and aligns the title of the Department Administrative Order (DAO) 203-20 with the Office of Management and Budget (OMB) Circular No. A-45, Rental and Construction of Government Quarters located at http://www.whitehouse.gov/omb; provides clarity to the regulations and policy governance in Section 2, General Provisions and in Section 3, Delegation Authority; and it deletes obsolete procedures and forms in Section 4, Standards and Section 5, Appraisals.

SECTION 2. GENERAL PROVISIONS.

.01 The Secretary of Commerce may furnish civilians and members of a uniformed service, including the National Oceanic and Atmospheric Administration (NOAA) Corps uniformed service, employed in the field service, with quarters and related services, provided that the reasonable value of such allowances is deducted from the salaries fixed for the employees occupying the quarters.

.02 The policy of the Department, with respect to charges for rental quarters and related facilities and costs (utilities, furnishings, garage space, and other services including, but not limited to, subsistence, laundry, trash removal, lawn care, and snow removal), provided to its employees and employees of government contractors, shall comply with the principles and procedures established by OMB Circular No. A-45.

SECTION 3. DELEGATION OF AUTHORITY.

.01 The head of each bureau/operating unit (B/OU) is hereby authorized to exercise the authority of the Secretary of Commerce, described in Section 2 hereof and to fix appropriate charges for rental quarters and related facilities and costs for employees and employees of government contractors to the Department under their jurisdiction in accordance with the provisions of this Order.

.02 The authority granted herein may be redelegated to such officers or employees as the heads of B/OUs may deem necessary to carry out the provisions and purposes of this Order.

SECTION 4. STANDARDS.

.01 Procedures for determining charges for rental quarters and related facilities and costs can be found in OMB Circular No. A-45.

.02 See OMB Circular No. A-45, Section 7, Procedures for Determining Rents and Other Charges, for procedures to determine an adjustment for an isolated location, which utilizes automobile mileage allowances determined by the General Services Administration.

.03 When a portion of the rental quarters is required for the purpose of conducting official business, the rental charge may be reduced up to fifty percent (50%) based on a fair valuation.

.04 In areas where another Federal agency is predominant as the supplier of rental quarters, the charges for rental quarters and related facilities and costs developed by that agency under the provisions of OMB Circular No. A-45 may be adopted by the B/OUs for comparable rental quarters, as appropriate.

.05 Where two or more B/OUs provide rental quarters at the same location, appropriate officials of each unit shall collaborate in the regular reappraisal of charges for rental quarters and related facilities and costs.

.06 The basis for determining exceptions shall be documented by the B/OU.

.07 The Department may seek the support of the Department of the Interior's Quarters Program to establish market-based rental rates for government-furnished housing in compliance with OMB Circular No. A-45.

SECTION 5. APPRAISALS.

.01 In order to insure effective and uniform application of the policy established in OMB Circular No. A-45 and the standards and procedures set forth in this Order, appraisals or regional surveys of charges for rental quarters and related facilities and costs should be repeated often enough to reflect important fluctuations in the private market. In any event, appraisals or regional surveys should be repeated at least once every four years.

.02 A Master List is an official list of record that is reviewed annually, updated as needed at the Department level, and is the custody of the Department. A copy of the Master List shall be provided to the Department's real property coordinator or custodian and the Department's Office of Financial Management point of contact as updates are made. Each time an appraisal, reappraisal, or regional survey is prepared, a copy shall be forwarded to the Department's real property coordinator or custodian and the Department's Office of Financial Management point of contact.

SECTION 6. EFFECT ON OTHER ORDERS.

This Order supersedes DAO 203-20, dated July 12, 1962.

Signed by: Deputy Chief Financial Officer and Director for Financial Management

Approved by: Chief Financial Officer and Assistant Secretary for Administration