SECTION 1. PURPOSE.

This order sets forth the policy and prescribes standards and procedures for the establishment of rental and utility charges for quarters furnished to employees of the Department, * and for the provision of furnishings in personnel quarters.*

SECTION 2. GENERAL PROVISIONS.

.01 By law (5 U.S.C. 75a) the Secretary may furnish civilians employed in the field service with quarters, head, light, household equipment, subsistence and laundry services, provided that the reasonable value of such allowances is considered as part of the compensation of such civilians, or, in other words, is deducted from the salaries fixed for the employees occupying the quarters or receiving any of the benefits listed. It is made clear by another statute (5 U.S.C. 71), however, that the compensation of employees is not to be supplemented through the distortion of rent schedules.

.02 The policy of the Department with respect to rental charges and utilities for quarters furnished its civilian employees shall be to equate these charges with the charges for comparable private rental housing and utilities in the same area.

.03 The principles and procedures established by the Bureau of the Budget in Circular No. A-45 shall be applicable throughout the department excepting the uniformed personnel of the coast and Geodetic Survey *who are assigned public quarters under 37 U.S.C. 252.* Implementing Departmental standards are contained in Section 4. below.

*.04 Policies governing the provision of furnishings in personnel quarters are set forth in Bureau of the Budget Circular No. A-15 (Revised). Organization units in the Department of Commerce shall comply with all provisions of Bureau Circular No. A-15 (Revised) in providing furnishings in personnel quarters.*

SECTION 3. DELEGATION OF AUTHORITY.

.01 The head of each primary organization unit is hereby authorized to exercise the authority of the Secretary of Commerce described in Section 2 hereof and to fix appropriate rental charges for quarters and services for employees under their jurisdiction, *and provide furnishings in personnel quarters,* in accordance with the provisions of this order.

.02 The authority granted herein may be redelegate to such officers or employees as the heads of primary organization units may deem necessary to carry out the provisions and purposes of this order.

SECTION 4. STANDARDS.

.01 Where private rental housing is available in the same area the principle of equivalence shall apply subject to adjustments of the base rental authorized herein. For the purpose of this order "the same area" means within the limits and fringe areas of cities, towns, or other established communities where normal community services are available and "basic rental" means the prevailing rent for comparable private housing.

.02 Rents for quarters furnished to civilian employees at the Merchant Marine Academy shall be at the same level as quarters allowances provided to uniformed personnel according to the equivalent military rants held you civilian employee occupants.

.03 When housing furnished employees is beyond the distances shown below from the limits of an established community where church, school, medical and shopping facilities are available, the percentage deductions indicated shall be applied to the base rental charge:

Over 15 miles ------------------------------ 20%

Over 30 miles ------------------------------ 40%

Over 50 miles ------------------------------ 60%

Over 75 miles ------------------------------ 80%


.04 When a portion of the quarters furnished an employee is required to be used for the conduct of official business, the adjusted rental charge may be reduced up to 50 % based on a fair valuation of such usage for official purposes.

.05 In areas where another Federal agency is predominant as the supplier of quarters for civilian employees the rental and utility charges developed by that agency under the provision of Bureau of the Budget Circular No. A-45 may be adopted by organization units of the Department for comparable quarters.

.06 Where two or more organization units of the Department furnish quarters to employees at the same location appropriate officials of each unit shall collaborate in the regular reappraisal of rental and utility charges.

.07 Charges to employees for utilities furnished should be set by comparison with domestic rates for similar services in the same or the nearest community where available.

.08 Where lack of transportation or other conditions exist which are not contemplated by the standards set forth in this Section or in Bureau of the Budget Circular No. A-45, the head of the primary organization unit may make such exceptions as are necessary to establish equitable rental and utility charges. The basis for determining such exceptions shall be reported on Form CD-83.

SECTION 5. APPRAISALS.

.01 In order to insure effective and uniform application of the principles established in Bureau of the Budget Circular No. A-45 and the standards set forth in this order, appraisals of rental and utility charges should be repeated often enough to reflect important fluctuations in the private market. In any event, appraisals should be repeated at least once every three years.

.02 Form CD-83 shall be used to document the establishment of charges for rent and utilities. Each time an appraisal or reappraisal is made, a copy of Form CD-83 shall be forwarded promptly to the Office of Budget and Management.

SECTION 6. EFFECT ON OTHER ORDERS.

This order supersedes Administrative Order No. 201-18 (Revised) of July 6, 1961.

Signed by: Director, Office of Budget and Management

Approved by: Assistant Secretary for Administration