Requires federal agencies to conduct a benefit-cost analysis and obtain an Inspector General review before carrying out significant employee or agency relocations.
Suhas Subramanyam
Representative
VA-10
The COST of Relocations Act requires federal agencies to conduct a benefit-cost analysis and report to their Inspector General (OIG) before carrying out a "covered relocation" which involves moving or replacing a significant number of employees. The OIG then reviews the agency's report and submits its findings to Congress, assessing the justification for using federal funds and adherence to guidelines. This act aims to ensure transparency and careful evaluation of the financial and operational impacts of agency relocations.
This bill, the COST of Relocations Act, basically puts a new process in place before a federal agency can pack up and move a significant chunk of its operations. If an agency plans a "covered relocation" – essentially moving the jobs of more than 5% or 100 of its employees (whichever number is smaller) outside their current commuting area, or shifting those functions to new positions elsewhere – it first has to do some serious homework.
The core idea here is transparency and justification. Before initiating a major move, the agency needs to conduct a detailed benefit-cost analysis. Think of it like needing to show your math before making a big purchase. This analysis isn't just a quick estimate; it has to follow specific guidelines set by the Office of Management and Budget (OMB Circular A4) and dig into the nitty-gritty.
The required analysis report must cover a lot of ground: how the move will improve things, the metrics to track success, plans for employee and stakeholder engagement, impacts on those stakeholders, staffing and financial strategies, timelines, risk assessments, and even succession planning. Crucially, it must also assess how the move affects the agency's ability to do its actual job, both now and down the line. This report then goes to the agency's internal watchdog, the Office of Inspector General (OIG), for review. The OIG has 90 days to check the agency's work, assess if the analysis justifies spending taxpayer money on the move, and report its findings to Congress. If the move is out of the DC area (National Capital Region), the OIG also checks if local real estate options were considered. While the agency has to make its analysis public, expect some details might be redacted if deemed proprietary or confidential. This adds layers of scrutiny, aiming to ensure big agency moves are well-thought-out and fiscally sound, though it could also slow down the process for agencies needing to relocate.