Analysis Results Of Business Data Request 04-45

Analysis Results Of Business Data Request 04-45 Presented to: Governmentwide Relocation Advisory Board By: Runzheimer International Speakers: Julie Blanford (Travel & Relocation Mgmt Solutions), Dr. Adlore Chaudier (Mercury Associates) When: February 16, 2005

Data Sought by the BDR Analysis of OMB BDR 04-45 Preliminary Findings

Basis for Data Analysis • 162 BDR submissions from Federal departments, agencies and bureaus in Excel format • Respondents “customized” many submissions to add or omit data fields; Runzheimer manually re-entered the data into a Microsoft Access database • Consultants reviewed data to identify outliers resulting from data entry errors and/or incongruent reporting of dollar amounts (e.g., reporting in “actual” dollars rather than thousands) • For drill-down analysis of expenses and activities, we focus primarily on FY 2003 data because it offers the most complete and reliable information Analysis of OMB BDR 04-45 Preliminary Findings

BDR Analysis At-a-Glance • Number of Agencies/Bureaus Responding: 160 • Number of Agencies/Bureaus Included in Analysis (omitting blanks and summaries): 154 • Aggregate Relocation Authorizations for 2003 (New Hire + Transfers): 22,334 • Percentages of New-Hire and Current-Employee Authorized Transfers: 27% New Hires, 73% Current Employees • Aggregate Completed Relocations for 2003: 18,968 (85% of authorizations) • Trend in Average Number of Authorizations (2005 and 2006): 5% increase per year • Aggregate Actual Relocation Budget for 2003: $655M Analysis of OMB BDR 04-45 Preliminary Findings

BDR Analysis At-a-Glance • Aggregate Est. Relocation Budget for 2004: $737M • Average Budget/Authorized Move for 2003: $29,735 • Average Budget/Authorized Move for 2004: $37,394 • Trend in Average Estimated Budget/Move (2005 and 2006): 5% increase • Number of RMC Managed Moves for 2003: 7,378 • Aggregate Payment to RMCs for 2003: $177M • Average Payment for RMC Assistance for 2003: $23,990 • Employment Grades with Highest Proportions of Transfers: GS-12, GS-13, FP-04 (a State Department classification) Analysis of OMB BDR 04-45 Preliminary Findings

Respondent Groupings • All Respondents (154, but reported statistics reflect only those that responded to specific data fields) • Case Study Group (13) • Department of State • Department of Defense (25) • Agency Detail and Departmental Comparisons Analysis of OMB BDR 04-45 Preliminary Findings

General Observations • Many Federal components track many relocation data elements, so the data is more complete than most of us expected; but pattern is spotty/inconsistent • Majority of respondents able to report activity and costs in a nearly standard format upon OMB request • Responses support GSA’s proposed rule changes (Pending FTR Case 2003-309) prescribing and requiring implementation of a RMIS • Inconsistent data tracking among agencies and within Departments • Few Departments appear to have the technology to aggregate relocation data centrally • Nine agencies noted that they gathered information manually from transferee files Analysis of OMB BDR 04-45 Preliminary Findings

General Observations • Most agencies identified payment types by Budget Object Class (BOC) subclasses that align with Circular A-11 • BOC subclass designations varied significantly among Agencies, in general, and within Departments, specifically • Disparate Budget Object Class sub-classification approaches among components of the same Departments points to decentralization of financial management as well as relocation administration Analysis of OMB BDR 04-45 Preliminary Findings

General Observations • Only a few agencies/bureaus initiate the vast majority of Government transfers • 10% of respondents (15 submissions) accounted for 82% of 2003 total authorized transfers • 10% of respondents accounted for 75% of the total budget dollars for 2003 • Most agencies reported nearly identical relocation volumes for both authorized and completed transfers (2003) • Many moves appear to be completed in the year authorized or the backlog remains fairly consistent from year to year Analysis of OMB BDR 04-45 Preliminary Findings

Number of Relocations (BDR Sec. 1) • Relocation Activity 2003 – 2006 (Table 1.1) • Distribution of Authorized Relocations 2003 (Table 1.2, All Respondents) • Distribution Completed 2003 (Table 1.3, All Respondents) • Respondents with Highest Transfer Volumes (Tables 1.5 and 1.6) Analysis of OMB BDR 04-45 Preliminary Findings

Relocation Budget Data (BDR Sec. 2) • Budget Data by Budget Object Class (Table 2.1) • Average and Median Budget Per Authorized Transfer (Table 2.3) • Departments/Agencies with Highest Budgets (Table 2.4) Analysis of OMB BDR 04-45 Preliminary Findings

Relocation Management Company Contracts & Costs (BDR Sec. 3) • 40% of All Respondents (62 submissions) indicated use of one or more RMCs • Payments for RMC services (Table 3.3) • Average Payout per Managed Relocation (Table 3.4) • Comparison of Sec. 3 Responses with Sec. 4B (Table 3.6) Analysis of OMB BDR 04-45 Preliminary Findings

Relocation Management Information (BDR Sect. 4) • Systems for tracking relocation costs/data • Top Ten Grades for Relocation 2003 and 2004 (Table 4.1.2) • Relocation Costs by Category (Table 4.2.1, 2003 Actual Expenses) • Comparison of 2003 Budget Data with Actual Expenses (Table 4.2.3) • Relocation Payment Processing Statistics (Table 4.3.1, All Respondents) Analysis of OMB BDR 04-45 Preliminary Findings

Department of State • Table 5.1: Department of State Authorized Relocations (New Hires and Transferees) Analysis of OMB BDR 04-45 Preliminary Findings

Department of State • Table 5.2: Department of State Trends in Authorized Relocations (New Hires and Transferees) Analysis of OMB BDR 04-45 Preliminary Findings

Department of State Relocation Budget • Department of State Budget Information (Table 5.4) • Estimated budget increase from FY 2003 to FY 2004 is 27%, with year-over-year increases for FY 2005 and FY 2006 being 3% each year Analysis of OMB BDR 04-45 Preliminary Findings

Figure 5.5: State Dept. Average Budget Per Authorized Relocation Analysis of OMB BDR 04-45 Preliminary Findings

Department of State • No information on use of relocation management companies • Responses regarding payments by category suggest lack of a system for tracking and aggregating actual expenses associated with transfers • Only expenses for house hunting trips in the continental United States are available • CONUS vs. “Other” Transfers • State Dept. Employment Grades Analysis of OMB BDR 04-45 Preliminary Findings

DoD: What We Know • BDR responses were limited to civilian moves only • Generalizations should not be made in haste • Few DoD respondents report data in the same way • Many respondents have only scant data Analysis of OMB BDR 04-45 Preliminary Findings

DoD Total Average 2003 Budget Per Completed Relocation Analysis of OMB BDR 04-45 Preliminary Findings

Some Reasons For Large Deviations in Averages • DoDEA • All but 13 were OCONUS transfers • Did not provide expense data: “Entitlements authorized on PCS orders are obligated in two object classes and are not broken out individually. All disbursements are paid by either DFAS [Defense Finance Accounting Service] or military disbursing functions both in CONUS and overseas. The DoD disbursing system is electronic and vouchers are not provided to show the individual entitlement payments. CONUS returns are generally separations/retirements.” Analysis of OMB BDR 04-45 Preliminary Findings

Air Force • Completed relocations = 1,783 (350 new hires and 1,433 current employees) Analysis of OMB BDR 04-45 Preliminary Findings

Air Force • Air Force only authorizes relocation services for GS 12 through SES (Senior Executive Service) • 3rd party relocation company moved only 370 • If all other payments totaled $22,883 for this group of 370, then the total average budget per completed relocation for this segment was $52,613 • Average relocation budget per completed relocation for all others was, then, $18,051 Analysis of OMB BDR 04-45 Preliminary Findings

Air Force • Specified Relocation Expense Total (Sec. 4) = $51.8M • Actual Relocation Expense Total = $25,867,000 • Average cost per completed relocation = $14,508 • Perhaps add in $11M for 3rd Party? • Now total is $36,867,000 • Average cost per completed relocation = $20,678 • We do not find RITA included in the reported totals Analysis of OMB BDR 04-45 Preliminary Findings

Army Corps of Engineers 2003 Budget Breakout Analysis of OMB BDR 04-45 Preliminary Findings

DoD Military PCS Budget Data Analysis of OMB BDR 04-45 Preliminary Findings

DoD: What We Don’t Know • Several DoD entities did not respond; most notably, we lack data on civilian moves for US Navy (other than 3 medical facilities), USMC, NSA, and others • Some DoD responses were substantially incomplete; i.e., no Army volume or budget data, no DLA volume or budget data, etc. • No military relocation data Analysis of OMB BDR 04-45 Preliminary Findings

Conclusions • Changes in Federal relocation management and monitoring policy should recognize that most Federal entities relocate few employees and only a few Federal entities relocate most employees. • 10% of Respondents = 82% of 2003 Transfer Volume • 10% of Respondents = 75% of 2003 Budget • Departments cannot easily aggregate relocation costs and measures of activity to leverage volume and expenditures in contracting for relocation services.Data gaps hinder comparisons among Departments. (USDA example) • Departments and agencies could benefit from implementation of standardized BOC sub-classifications for line-item budget expenditures. Analysis of OMB BDR 04-45 Preliminary Findings

Conclusions • Little consistency in relocation data tracking among agencies or within Departments. • Most transferees are at the mid-to-upper management level (comparable to “typical” transferees in the private sector). • Governmentwide, average relocation costs ($29,735 and $37,394 for 2003 and 2004, respectively) are significantly lower than the average private-sector relocation cost of $44,143. Analysis of OMB BDR 04-45 Preliminary Findings

Recommendations • Develop a criteria for identifying an Extrapolation Profile Group and create model to project transfer volume and cost trends as well as costs of line-item expenses across the Federal Government. • Identify critical cost drivers that affect increases or decreases in Government relocation expenses. • Create a model that incorporates those drivers for use across the Federal Government to improve relocation budgeting and management to those budgets. Analysis of OMB BDR 04-45 Preliminary Findings

Recommendations • Select Departments or bureaus for follow-up and: • validate BDR responses, • fill in data gaps as necessary, • map relocation management processes, particularly for departing and receiving locations, financial and reimbursement steps, and the inter-relationship of Departmental oversight and bureau policy compliance, and • identify best practices. Analysis of OMB BDR 04-45 Preliminary Findings

Recommendations • Separate analysis of OCONUS relocation from CONUS relocation. • Study the Department of Defense separately from the civilian agencies. • GSA should require implementation of a RMIS through the FTR. • Develop policies and management recommendations that recognize that most Federal entities relocate fewer than 10 employees and, conversely, that a handful of agencies initiate the vast majority of relocations. Analysis of OMB BDR 04-45 Preliminary Findings

Recommendations • Supplement BDR data through targeted follow-on data-gathering to identify: • Number of transferees that received each type of payment noted in BDR Sections 2 and 4 to enable estimation of the costs of revising current entitlements and benefits. • Non-cost metrics specific to the homesale program (e.g., % of inventoried homesales and employee-assisted sales); other benefit areas, such as TQSE (e.g. number of days of temporary living and whether accompanied or unaccompanied); and transferee demographics. • Qualitative assessment to determine the degree to which current relocation entitlements/benefits assist departments and agencies in meeting strategic staffing, recruitment and retention goals. Analysis of OMB BDR 04-45 Preliminary Findings

Analysis Results Of Business Data Request 04-45