6 FAH-5 H-380 ICASS BUDGETING UNDER UNIQUE CIRCUMSTANCES

UNCLASSIFIED (U)

6 FAH-5 H-380

ICASS Budgeting Under Unique Circumstances

(CT:ICASS-100; 08-27-2020)
(Office of Origin: CGFS/ICASS)

6 FAH-5 H-381 ICASS BUDGETING AND COST SHARING FOR POSTS UNDER EVACUATION

(CT:ICASS-47; 08-20-2015)
(Applies to participating ICASS agencies)

When a post is under an evacuation (authorized or ordered departure), all agencies agree that post must maintain the ICASS platform to provide administrative support for ongoing operations, and to resume full operations when the evacuation is lifted. Many ICASS costs are fixed and post will continue to incur these costs whether or not personnel have been evacuated from a post. This chapter provides guidance, policy and procedures on distributing ICASS costs to agencies when a post experiences either a short or a long-term (i.e., over 180 days) drawdown. This guidance also applies to alternate service providers (ASPs) as appropriate. In exceptional circumstances including situations where the COM limits the return of some agencies to post, other approaches that deviate from guidance in this chapter may be used to determine the workload counts to ensure more equitable distribution of costs. Post must coordinate with the affected agencies, the regional or functional bureaus, the ASP headquarters when applicable, and the ICASS service center when an alternative methodology is needed.

6 FAH-5 H-381.1 ICASS Workload Counts

(CT:ICASS-47; 08-20-2015)
(Applies to participating ICASS agencies)

Workload counts form the basis for developing ICASS agency invoices. Evacuations and drawdowns pose challenges in gathering the data and validating the information. It is the responsibility of both the service provider and the customer agencies to ensure their accuracy.

6 FAH-5 H-381.1-1 General Rule on Workload Counts

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

a. ICASS workload counts play a crucial role in distributing administrative support costs to ICASS customer agencies. During an evacuation, if an agency decides to permanently downsize its presence or withdraw from post due to events, it will result in certain fixed ICASS costs shifting to remaining agencies until the service provider can make appropriate adjustments such as terminating leases, reducing staff size, etc. Therefore, it is important for agencies to notify the service provider as soon as possible about their intention to permanently change their presence at post.

b. Approval of workload counts and invoices may be requested at agency headquarters if post is unable to contact the post agency representatives during an evacuation.

c. The ICASS workload counts established on May 1 and approved by agency representatives should be used when agency personnel, including EFMs, are temporarily away from post due to an evacuation. If a post is under evacuation on May 1 when the annual workload count is normally conducted, workload counts will be based on the most recently approved workload counts from a budget or data call, adjusted for any changes, abolished positions, or withdrawals with proper notification. If an agency has initiated the National Security Decision Directive (NSDD) -38 process to abolish certain positions and notified the service provider, those positions will not be counted.

d. In general, workload counts will only be adjusted when an agency abolishes positions or completely withdraws from post. If an agency temporarily withdraws from services during evacuation without any other actions to reduce presence such as abolishing positions, workload counts will not be adjusted.

Note: In cases where ICASS support is provided by another post as a result of the evacuation either because agency personnel have been evacuated to another post or ICASS staff is providing service from another post customer agencies may also receive an invoice from the servicing post.

e. If an agency has initiated the NSDD-38 process to abolish certain positions and notified the service provider, workload counts will be adjusted in accordance with existing policies in 6 FAH-5 H-333.3. If the abolishment of position(s) results in a complete withdrawal from post, refer to 6 FAH-5 H-381.1-1, paragraph f.

f. If an agency decides to completely withdraw from post, it must initiate the NSDD-38 process and provide 6 months termination notice in writing, with the six-month period commencing on the next April 1 or October 1 (6 FAH-5 H-016.5); workload counts will be changed in accordance with existing policy (6 FAH-5 H-333.3).

g. For detailed guidance on handling workload counts related to 78XX-Building Operations for residential and non-residential space, see section 6 FAH-5 H-381.2.

h. For workload related to 6144-FAP regarding vacant positions, see 6 FAH-5 H-512.4. If all FAP assets are lost during an evacuation, a new buy-in will be assessed to all agencies upon return to post.

i. For an evacuation that lasts until the start of the next workload count cycle, post should communicate with regional bureaus for further guidance based on the circumstances at post at the time. The regional bureaus, working with the ISC, will keep affected agencies informed of decisions related to an evacuated post, including coordination on budgets and workload counts.

6 FAH-5 H-381.1-2 Evacuation Begins After October 1

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

If an evacuation occurs after the beginning of the fiscal year, workload counts will not be adjusted unless the agency formally abolishes positions or completely withdraws from post (See 6 FAH-5 H-381.1-1, paragraphs e and f). All agencies will continue to share ICASS costs based on established workload counts.

6 FAH-5 H-381.1-3 Evacuation Begins Before October 1

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

If an evacuation occurs before the beginning of the fiscal year:

(1) At the initial budget, workload counts will remain the same as previously documented (See 6 FAH-5 H-381.1-1, paragraph c.) unless the agency formally abolishes positions or completely withdraws from post (See 6 FAH-5 H-381.1-1, paragraphs e and f); and

(2) At the final budget, the capitation workload count should be pro-rated to 0.5 for any of the counted positions that remain in evacuation status. For all others, the workload count will not be adjusted. The cumulative and other noncapitation static workload counts should remain the same as previously documented (See 6 FAH-5 H-381.1-1, paragraph c). If post is completely drawn down with no U.S. direct hires at post, all workload counts will remain the same as previously documented (see 6 FAH-5 H-381.1-1, paragraph c).

6 FAH-5 H-381.2 Costs for Building Operations and Local Guard Program

(CT:ICASS-47; 08-20-2015)
(Applies to participating ICASS agencies)

Funding responsibilities for lease costs and other building operating expenses depend on the ownership (Government-Owned/Capital Lease vs. Operating Lease) and type of the space (Residential vs. Nonresidential).

6 FAH-5 H-381.2-1 U.S. Government-Owned/Capital Lease (GO/CL) Residential Space

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

a. Lease costs for Capital Lease (CL) residential space are fully funded by the Bureau of Overseas Buildings Operations (OBO) regardless of the occupying agency, except for certain USAID properties (15 FAM 162.1).

b. Building operating expenses (BOE) for Government Owned/Capital Lease (GO/CL) residential spaces are the responsibility of the occupying agency (15 FAM 162.1). During an evacuation, ICASS workload counts for cost center 7810 GO/CL Residential Building Operations remain unchanged in accordance with existing policy. For any direct charges, such as utilities, the vacating agency is responsible up to 90 days after the property has been permanently vacated, unless another tenant is assigned. After the 90-day period, if the space remains unassigned, the funding responsibility for direct charges will shift to State DP since the Department of State is the single real property manager.

c. If an agency decides to permanently abolish some but not all of its positions, it must immediately notify the service provider. If the agency has initiated the NSDD-38 process, the service provider will change the agency’s workload counts for cost center 7810 at the next possible opportunity, either at the beginning (initial budget) or end (final budget) of the budget cycle (6 FAH-5 H-333.3). All vacant/unassigned GO/CL space is allocated to agency code 1900.0-State DP. For any direct charges, the vacating agency is responsible up to 90 days after the property has been permanently vacated, unless another tenant is assigned. If the property is not reassigned to another agency after 90 days, the funding responsibilities for direct charges will shift to State DP since the Department of State is the single real property manager.

d. If an agency decides that it will completely withdraw from post, the agency must initiate the NSDD-38 process and provide 6 months termination notice in writing, with the 6-month period commencing on the next April 1 or October 1, whichever is closer (6 FAH-5 H-016.5, paragraph c). Workload counts for cost center 7810 will be adjusted according to existing policy in 6 FAH-5 H-333.3, subparagraph (5). During the 6-month notification period, the vacating agency remains responsible for the workload counts related to its assigned space. After the required 6-month notification period expires, if the property has not been assigned, the related workload counts are allocated to agency code 1900.0-State DP since the Department of State is the single real property manager. For any direct charges, the vacating agency is responsible up to 90 days after the property has been permanently vacated, unless another tenant is assigned. If the property is not reassigned to another agency after 90 days, the funding responsibilities for any direct charges will shift to State DP since the Department of State is the single real property manager.

6 FAH-5 H-381.2-2 U.S. Government-Owned/Capital Lease (GO/CL) Nonresidential Space

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

a. Lease Costs for Capital Lease (CL) nonresidential spaces are fully funded by the Bureau of Overseas Buildings Operations (OBO) regardless of the occupying agency, except for certain USAID properties (15 FAM 162.1).

b. Building operating expenses (BOE) for Government-owned/Capital Lease (GO/CL) nonresidential spaces are the responsibility of the occupying agency (15 FAM 162.1). During an evacuation, an agency remains responsible for the BOE related to its assigned space. ICASS workload counts for cost center 7820 GO/CL Nonresidential Building Operations remain unchanged in accordance with existing policy.

c. If an agency decides to permanently abolish some of its positions, it must immediately notify the service provider. If the agency has initiated the NSDD-38 process, the service provider will change the agency’s workload counts for cost center 7820 at the next possible opportunity, either at the beginning (initial budget) or end (final budget) of the budget cycle (6 FAH-5 H-333.3). If the property is not reassigned to another agency upon notification of abolishment of the position, all vacant/unassigned GO/CL space is allocated to agency code 1900.0-State DP since the Department of State is the Single Real Property Manager (6 FAH-5 H-341.12-2(D)).

6 FAH-5 H-381.2-3 Operating Lease (OL) Residential Space

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

a. Lease costs and BOE for Operating Lease (OL) residential spaces are the responsibility of the occupying agency (15 FAM 162.2). During an evacuation, ICASS workload counts for cost center 7850 OL Residential Building Operations remain unchanged in accordance with existing policy. For any lease costs and other direct charges, the vacating agency is responsible up to 90 days after the property has been permanently vacated unless another tenant is assigned. If the residence is vacant/unassigned for more than 90 days after the agency has permanently vacated it, and post management, with ICASS council (or headquarter agency) concurrence, wishes to retain it, approval from OBO must be obtained (15 FAM 313.5). In such cases, if retention is approved, all related lease costs and other direct charges shift to ICASS and will be shared among the remaining agencies through ICASS redistribution until it is reassigned (6 FAH-5 H-471.13).

b. If an agency decides to permanently abolish some of its positions during an evacuation or drawdown, it must immediately notify the service provider. If the agency has initiated the NSDD-38 process, the service provider will change the agency’s workload counts for cost center 7850 at the next possible opportunity, either at the beginning (initial budget) or end (final budget) of the budget cycle (6 FAH-5 H-333.3). For lease costs and any other direct charges, the vacating agency is responsible for up to 90 days after the property has been permanently vacated, unless another tenant is assigned. If the residence is vacant/unassigned for more than 90 days after the agency has vacated it, and post management, with ICASS council concurrence, wishes to retain it, approval from OBO must be obtained (15 FAM 313.5). In such cases, if retention is approved, lease costs and any other direct charges shift to ICASS and will be shared among the remaining agencies through ICASS redistribution until it is reassigned (6 FAH-5 H-471.13).

c. If an agency decides that it will completely withdraw from post, the agency must initiate the NSDD-38 process and provide 6 months termination notice in writing, with the 6-month period commencing on the next April 1 or October 1, whichever is closer (6 FAH-5 H-016.5, paragraph c). Workload costs for cost center 7850 will be adjusted according to existing policy in 6 FAH-5 H-333.3, subparagraph (5). During the 6-month notification period, the vacating agency remains responsible for the workload counts for the residence. After the required 6-month notification period expires, if the property has not been reassigned and a decision has been made to retain it (15 FAM 313.5), the related workload counts are allocated to agency code 1901.0-ICASS and the costs will be shared by all remaining agencies through ICASS redistribution (6 FAH-5 H-471.13). For any lease costs and other direct charges, the vacating agency is responsible up to 90 days after the property has been permanently vacated, unless another tenant is assigned. If the residence is vacant/unassigned for more than 90 days after the agency has vacated it, and post management, with ICASS council concurrence, wishes to retain it, approval from OBO must be obtained (15 FAM 313.5). In such cases, if retention is approved, lease cost and any other direct charges shift to ICASS and will be shared among the remaining agencies through ICASS redistribution until it is reassigned (6 FAH-5 H-471.13).

d. If a lease is terminated early, any penalty or decommissioning costs may be charged to ICASS.

6 FAH-5 H-381.2-4 Operating Lease (OL) Nonresidential Space

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

a. Lease costs and BOE for OL nonresidential spaces are the responsibility of the occupying agency(ies) (15 FAM 162.2). During an evacuation, an agency remains responsible for its share of lease costs and BOE related to its assigned space. ICASS workload counts for cost center 7860 OL Nonresidential Building Operations remain unchanged in accordance with existing policy.

b. If the agency decides to permanently abolish some of its positions, it must immediately notify the service provider. If the agency has initiated the NSDD-38 process, the service provider will change the agency’s count at the next possible opportunity, either at the beginning (initial budget) or end (final budget) of the budget cycle (6 FAH-5 H-333.3). If it is a single agency occupied space, the agency will continue to be responsible for all lease costs and BOE related to the space unless/until the lease is terminated.

d. For a single-agency occupied space, if the lease is terminated early, any related costs will be charged to the vacating agency. For a shared space, if as a result of any agency downsizing post is able to terminate the lease for a portion of the space, termination costs are the responsibility of the departing agency.

6 FAH-5 H-381.2-5 Local Guard Program (LGP)

(CT:ICASS-47; 08-20-2015)
(Applies to participating ICASS agencies)

Local Guard Program costs will be charged to evacuated agencies in accordance with their assigned/occupied space under the Building Operations cost centers as described in this subchapter. Space maintained for the agency will be guarded according to the security standards in place at post, and agencies are responsible for all costs related to the maintenance and preservation of that space. At such time as the agency is no longer liable for the BO costs due to the circumstances described above (e.g., positions abolished, space permanently vacated, etc.) then the related LGP costs for the space will no longer be the responsibility of the agency. This includes guard costs associated with cost centers 5821, 5822, 5823, and 5826.

6 FAH-5 H-381.3 Budgeting During Evacuation

(CT:ICASS-47; 08-20-2015)
(Applies to participating ICASS agencies)

a. Budgeting in a fiscal year when post is under evacuation poses special challenges due to uncertainties. Although post continues to incur most ICASS support costs during evacuation, reduced presence and operational levels at post should result in a decrease in certain costs, such as utilities, fuel, supplies, etc. Certain costs (American Salary and Post Assignment Travel) related to ICASS USDH positions that will be vacant for more than 6 months in the fiscal year should not be included in budget.

b. Post should communicate the estimated requirements to regional and functional bureaus so that proper budget targets can be established. If the targets exceed the requirements, post should contact the appropriate funding office and submit a budget under target. At a post that remains closed, the budget should be limited to actual requirements to operate the post in its current status.

6 FAH-5 H-381.4 Budgeting for Return to Full Operations

(CT:ICASS-47; 08-20-2015)
(Applies to participating ICASS agencies)

When post returns to full operations, the service provider must assess the funding requirements to restore the platform and coordinate with the regional and functional bureaus to develop estimated targets. If this occurs outside of the twice-annual target setting process and requires an immediate increase in funding, the regional bureau will contact the ICASS service center (ISC) to facilitate a meeting with all appropriate Department of State entities and agencies with a presence at post to determine each agency’s share of the costs to restore operations. Agencies should be aware that there may also be significant direct charges outside ICASS required to maintain the post.

6 FAH-5 H-382 diplomatic support services contract for special circumstances

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

a. There may be situations when agencies under chief of mission authority request ICASS services that are beyond the scope of services that the embassy or consulate is able to provide. This may include administrative support for programs that are temporary in nature, may fluctuate in size/scope, or be located in areas where ICASS service providers could not reasonably provide sustained administrative support provided through the embassy or consulate platform.

b. To accommodate this type of requirement, post may consider use of contract support provided through the Acquisition Management (AQM) Division of State Department’s Bureau of Administration (A).

c. Use of contracted support facilitates the provision of services on-site, eliminating the need for extensive travel or augmentation of ICASS embassy support staff. ICASS staff must continue to perform those tasks considered inherently governmental.

d. For the purposes of this chapter, such contract arrangements will be referred to as Diplomatic Support Services (DSS). These contracted services are not to be confused with local administrative services that may be outsourced, i.e., gardening, custodial services, equipment maintenance, that may be routine given local conditions.

6 FAH-5 H-382.1 Criteria for Contract Support

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

a. Programs eligible for contract support must meet at least two of the following criteria:

(1) Exceed post’s capacity to provide service without making major investments in the management and security platforms;

(2) Are temporary or transient in nature and subject to fluctuations in the size of its presence;

(3) Are located in areas beyond which an embassy or consulate could reasonably provide full and sustained management or security support; and

(4) Are located in newly reopened areas, such as the return after an extended evacuation, until the ICASS platform can be re-established.

b. Typical programs supported by DSS contracts include bilateral military sales, Customs pre-clearance, training efforts, or limited-term projects.

6 FAH-5 H-382.2 Contract Support Services

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

a. DSS customer agencies will sign an ICASS MOU covering the services, as needed. DSS customer agencies must subscribe to all mandatory ICASS cost centers (i.e., Basic Package, Community Liaison Office, Health Services, and Security Services) as well as applicable Local Guard Program Services.

NOTE: The RSO remains the sole authority on safety and security requirements for all agencies under COM authority.

b. Services typically provided under a DSS contract are:

(1) Liaison with embassy management staff and supported customers;

(2) Residential property management, including housing searches, residential furnishings, residential maintenance, and commissioning/decommissioning activities;

NOTE: Leases must be approved/signed in accordance with 15 FAM;

(3) Delivery/transport of embassy-cleared official and personal shipments;

(4) Procurement of goods and services, upon approval by the assigned contracting officer’s representative (COR);

(5) Reporting of funds availability and tracking of payments;

(6) Distribution of mail and messenger services;

(7) Travel services;

(8) Local transportation and motor pool management;

(9) Telephone, internet, and non-OpenNet IT services; and

(10) Management of unclassified office space, including identifying suitable space, providing support with leasing, commissioning/decommissioning, fit-out of furniture and equipment, and maintenance of designated space.

c. The contractor-provided services should be equivalent in scope and standard to services provided in the ICASS platform. ICASS service providers must be aware of the provisions of this policy and understand their roles and responsibilities for DSS-serviced agencies.

d. Services provided by contract will be mutually agreed upon by the DSS service provider, DSS customer agencies, and the ICASS service provider, and must be reviewed by the regional bureau and AQM, to ensure that tasks considered inherently governmental are not included in the contract. The post’s ICASS council must be informed once the support arrangement has been finalized and approved, and again when the contract is awarded.

6 FAH-5 H-382.3 Contractor Requirements

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

a. The Acquisition Management (AQM) division of the State Department’s Bureau of Administration manages the DSS contract due to the unique and complex requirements of such large-scale arrangements.

b. Provision of contracted services requires close oversight by a full-time, on-site, qualified contracting officer’s representative (COR) who is part of post’s ICASS service provider team. This cost is shared in ICASS among the agenc(ies) using DSS contract support.

c. Third-party contract personnel typically do not have diplomatic privileges and immunities and are usually subject to local labor law and taxes, immigration and registration requirements. It is important to understand how these issues might impact the contractors’ ability to provide the needed services.

d. Contract operations may be subject to banking, real estate, tax, licensing or other laws not applicable to diplomatic entities.

e. Contract language must stipulate the level of security clearance and data access necessary for contract personnel.

6 FAH-5 H-382.4 Approval Process for Contract Support

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

a. If support services are requested by an agency/entity that meets the criteria in 6 FAH-5 H-382.1, post management must notify the regional bureau. The regional bureau will coordinate with the Under Secretary for Management’s Office of Strategy and Solutions (M/SS), the Acquisition Management Division (AQM), and the ICASS Service Center (ISC) to identify the appropriate contracting vehicle, appropriate nongovernmental services to include in the contract, and determine cost distribution.

b. If the request is approved, a contract will be prepared and signed by the relevant parties. The DSS-serviced agency(ies) will subscribe to the required cost centers through the ICASS service subscription process.

c. Any additional ICASS positions needed to support the contracted services are subject to post ICASS council approval.

6 FAH-5 H-382.5 Budgeting and Invoicing for Contract Support Costs

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

a. Post will establish a location budget into which the contract costs are budgeted in a single cost center that uses a capitation-based distribution factor. Mission personnel, including the contracting officer’s representative (COR), allocate time to the relevant cost center in the location budget. Contract costs are borne only by agencies subscribed to services at the location.

b. There are five cost components:

(1) DSS contract costs are billed through ICASS on a per capita basis, on the same invoice used to bill other ICASS services. The DSS contract costs include contractor staff salaries, benefits, office rent and administrative expenses, plus general administrative and profit components as well as the AQM procurement surcharge. These costs are budgeted in the relevant cost center in the location budget;

(2) Costs related to ICASS service provider staff (U.S. direct-hire and LE staff) who provide DSS contract support is captured through time allocation to the relevant cost center in the location budget. This includes all costs for the COR which are budgeted in an ICASS cost pool for this position and allocated to the relevant cost center in the location budget;

(3) Support services covered by an ICASS MOU are billed to each customer agency in the annual invoice process, including the DSS contract costs noted herein;

(4) ICASS support costs for the COR are paid by the DSS customer agencies but are handled outside the post budget process. The post ICASS workload counts for the COR are counted against a special agency code and included in the post budget process. These costs are then billed to the DSS customer agencies in Washington “below the line” based on the same percentage of contract costs each agency pays at the post; and

(5) Direct charges for actual purchases or activities specific to a single DSS customer agency which are billed separately.

c. Customer agencies subscribing to services at the location may be authorized modified workload counts in accordance with post policy developed to address the particular circumstances of subscription to the contract support.

6 FAH-5 H-383 THROUGH H-389 UNASSIGNED

6 FAH-5 Exhibit H-381
Funding Matrix for Building Operations

(CT:ICASS-100; 08-27-2020)
(Applies to participating ICASS agencies)

	Lease Cost	Direct Charges*		ICASS 78xx BO**
GO/CL (residential)	OBO	Occupying agency (up to 90 days after it permanently vacates the assigned space); State DP if unassigned (after 90-day period)		Occupying agency based on workload count 1900.0-State DP for unassigned space

GO/CL (Nonresidential)	OBO	Occupying agency based on workload count State DP if unassigned		Occupying agency based on workload count 1900.0 State DP for unassigned space
OL (Residential)	Occupying agency (up to 90 days after it permanently vacates the assigned space);	Occupying agency (up to 90 days after it permanently vacates the assigned space);		Occupying agency based on workload count 1901.0-ICASS for unassigned space
	ICASS if unassigned (after 90-day period)		ICASS if unassigned (after 90-day period)
OL (Nonresidential)	Occupying agency based on workload count Unassigned space is proportionally allocated to remaining tenant agencies		Occupying agency based on workload count		Occupying agency based on workload count Unassigned space is proportionally allocated to remaining tenant agencies

*Direct charges – costs that are directly charged to agencies such as utilities.

**78XX BO – Building operating expenses budgeted in cost center 7810/7820/7850/7860 that are distributed to agencies through ICASS.

UNCLASSIFIED (U)