Agencies slammed for not gathering data on employee relocation costs

Frustrated that the government does not know how much money it spends relocating its workers, Sen. Charles Grassley, R-Iowa, sent a harshly worded letter to officials at the General Services Administration and the Office of Management and Budget last week.

"Apparently, that ball seems to have been slipping through a lot of hands," the Senate Finance Committee chairman wrote Nov. 9. "What exactly did OMB and GSA do to attempt to fix the problem of the incomplete or badly flawed data that was being provided to it by the agencies?"

The surveys required for the mandated biennial Federal Travel and Relocation report from GSA to OMB contained data from agencies that was so flawed and inaccurate that GSA admitted the information was worthless, and the report has not been published for six years. A draft of the 2004 report was distributed about three months ago.

Agencies' relocation policies have received criticism from Congress in the past 10 years because agencies haven't been able to pinpoint how much they spend moving workers. According to the Senate Finance Committee's majority office, moving a federal employee often costs more than $100,000 and sometimes as high as $250,000. Grassley wrote in his letter that GSA failed to insist that agencies submit accurate and timely data, making it "virtually impossible for agencies to manage their [relocation] costs." According to the senator, GSA officials claim they do not have the authority to force federal agencies to provide accurate data, and he is concerned that OMB has not helped GSA collect the information.

"Rather than attempting to provide governmentwide leadership, both GSA and OMB appear instead to have closed their eyes to this problem and shrugged their shoulders," Grassley wrote.

According to an OMB official, the office is in the process of gathering better information from agencies and revising its regulations to improve management of relocation expenses and to tighten the funds given to relocated workers. For several days, GSA officials were unable to provide responses to inquiries for this story by Government Executive, saying they needed more time.

In his letter, Grassley requested written responses from the agencies addressing his concerns by Nov. 22. A member of the Finance Committee staff said all that the agencies need is basic tracking software, which should help them save hundreds, if not thousands, of dollars per move.

Grassley also criticized government agencies for spending too much to move an estimated 40,000 nonmilitary transplanted federal workers each year.

"The federal government's employee relocation program appears to be costing taxpayers hundreds of millions of dollars each year," Grassley said. "Yet, no one has the foggiest idea how many employees are relocated on the taxpayers' dime, how much it's costing the taxpayers, and what taxpayers are really getting in return."

An advisory board made up of government and private industry representatives is preparing to recommend core changes to the Federal Travel Regulation's relocation rules. The board's next meeting is Dec. 1.