6 FAH-5 H-520
residential commissioning and
make-ready
(CT:ICASS-117; 10-23-2023)
(Office of Origin: CGFS/ICASS)
6 FAH-5 H-521 General
(CT:ICASS-117; 10-23-2023)
(Applies to participating ICASS agencies)
The Department of State as the single real property manager (SRPM) is responsible for managing the consolidated housing program overseas. At the post level, the management officer is typically the SRPM but the day-to-day responsibilities are typically delegated to the general services and facilities team. The goal of the housing program is to acquire and retain appropriate housing that meets established safety, fire safety, health, natural hazards, comfort, and efficiency standards, as well as specific operational requirements (for details see 15 FAM 250). Because housing markets are different around the world, the requirements for acquiring and maintaining properties vary from country to country:
(1) Residential commissioning: For the purposes of this sub-chapter, the process of preparing a new residential property for occupancy by the U.S. Government is called “residential commissioning” (see 6 FAH-5 H-522). New properties are brought into the housing pool either due to a need to expand the pool (the result of agency growth) or to replace an existing residence;
(2) Residential decommissioning: In the course of managing the consolidated housing pool, it is sometimes necessary to remove a residence for a variety of reasons: downsizing the housing pool, uncooperative landlord, high maintenance costs, etc. In such cases, the GSO housing officer must prepare the property to return it to the landlord in accordance with local practice and the terms of the lease. For the purposes of this sub-chapter, the process of preparing a property for return to the landlord is called “residential decommissioning” (see 6 FAH-5 H-523);
(3) Make-ready process: Each year numerous residential properties in the consolidated housing pool, whether government owned or leased, are reassigned as employees rotate in and out of post. Preparing these properties for occupancy is called “make-ready” (see 6 FAH-5 H-524). Make-ready should not be confused with sustainment, restoration, and modernization (SRM), (see 15 FAM 630) or building operating expenses (BOE) even though many of the tasks covered by these activities may be completed during the make-ready period;
(4) Post policy: The post SRPM is required to establish a policy for both residential commissioning and make-ready that outlines the typical process for each activity at post, including any unique factors, and identifies the average cost for each activity (see 6 FAH-5 H-522.2 paragraph c and 6 FAH-5 H-524 paragraph e). These policies are reviewed annually. While it is recommended that two separate policies be prepared, post may combine the two policies as long as all of the required information from the standard templates (see 6 FAH-5 H-522) is included. These policies must be approved by the post ICASS Council and published on the post’s website;
NOTE: For posts with less than five leased properties, a commissioning policy is not required but post will need to provide new/growing agencies with information on related costs. All posts should have a make-ready policy that covers all residential properties (Government Owned/Capital Leased/Operating Leased).
(5) Building operating expenses (BOE): BOE includes expenses incident to occupying a property including utilities, condo fees, service contracts (see paragraph 1 below), grounds care, etc. For a detailed definition of BOE, see 15 FAM 121:
(a) Contracted services specific to a residential property (e.g., gutter cleaning, chimney sweeping, pest control, etc.) are direct charged to the tenant agency. For State occupied properties, these costs are funded by the appropriate State entity (i.e., State Program/PD, INL, CA, DS, etc.). GSO should provide all agencies with details on these costs so they can be included in agency budgets and planning; and
(b) BOE costs in shared properties that cannot be readily direct charged can be included in ICASS in 78XX-Building Operations and shared among the occupants based on the total square meters assigned. If necessary to ensure equity, a sub-cost center can be created in the ICASS budget to isolate the costs for a specific property.
(6) Sustainment, restoration, and modernization (SRM): SRM includes activities required to maintain, restore, and modernize a property so it can be used for its intended purpose (examples: painting, caulking, repair broken water pipes or bathroom/kitchen fixtures, etc.) For a detailed definition of SRM, see 15 FAM 630:
(a) All bulk supplies required for sustainment activities for all GO/CL and OL residential properties are funded from the OBO Maintenance Cost Sharing (MCS) account (e.g., brushes/rollers, lumber, nails, plumbing supplies, electrical supplies, carpentry supplies, hand and power tools required for sustainment activities, etc. For more details, see the current fiscal year Maintenance & Repair (M&R) Funding Matrix on the OBO/FAC website). As these maintenance funds are invoiced to all agencies at the Washington level via OBO's MCS program, there is no direct charge at post for the usage of sustainment supplies. When OBO/MCS-funded sustainment supplies are used to complete maintenance tasks that are a landlord responsibility, the value of those supplies should be deducted from the rent in accordance with the terms of the lease. Post should journal voucher this amount to the allotment that funded the supplies (see 6 FAH-5 H-341.12, paragraph d.4.c.iv);
(b) In general, most SRM activities which are the U.S. Government's responsibility are performed by in-house ICASS staff and the agency's subscription to 7810/7850-Building Operations-Residential covers the labor costs. Additional labor hired to supplement in-house staff may be funded by ICASS and budgeted in cost center 7810/7850-Building Operations-Residential, depending on post policy; and
(c) OBO only funds specialized labor contracts (e.g., restoration contracts, preventive maintenance service contracts, and annual residential service contracts; see the current fiscal year M&R Funding Matrix). If a required task cannot be done with in-house staff because it requires specialized technical expertise, the cost of the contract is charged to OBO MCS funding. All other labor contracts for routine work (e.g., plumbing, carpentry, electrical, painting, etc.) are funded either in ICASS or direct charged to the tenant agency, depending on post policy. The M&R Funding Matrix provides guidance on which services are specialized versus routine. For situations not address directly by the matrix, the OBO Office of Facility Management, Division of Maintenance Support provides guidance.
(7) Temporary use for transient housing: When a residence is left vacant pending permanent assignment to a resident agency, it may be used as transient housing. During the transient period of occupancy, all costs are charged to the occupying agency in accordance with guidance in 15 FAM 164 and 15 FAM 249. Upon vacating the property, the agency will be responsible for any required make-ready tasks (e.g., final cleaning).
6 FAH-5 H-522 residential commissioning process
(CT:ICASS-117; 10-23-2023)
6 FAH-5 H-522.1 What is Residential Commissioning
(CT:ICASS-117; 10-23-2023)
(Applies to participating ICASS agencies)
Initial requirements to commission a residence for the housing program may include the following activities required to meet established SHEM (safety, occupational health, and environmental management) and security requirements, as well as accommodations to allow for the installation of U.S. Government provided appliances and equipment, and to improve accessibility for physically challenged occupants:
(1) Add/provide/install basic kitchen fixtures (e.g., cupboards, counter tops, sinks and faucets) where none are present, or they are significantly below U.S. standards;
(2) Upgrade the electrical and/or plumbing systems to accommodate appliances (e.g., dedicated circuit and/or water lines for a washer and dryer, grounding of the electrical system, wiring to accommodate air conditioning units, etc.). In some locations it may also include installing bathroom fixtures and appliances, shower curtain rods, etc.;
(3) Install a gas line for bottled gas, if required;
(4) Install USG-provided air conditioners, water heater(s), and household appliances, as required if not provided by the landlord;
(5) Provide/repair/replace/install interior light fixtures, as needed. (Installation of lighting fixtures not provided by the landlord is non-standard, and should not be performed when sufficient lighting can be provided with lamps);
(6) Repair/replace/install ceiling fans, if appropriate for the local climate;
(7) Refinish/repair floors, as needed (see NOTE 1);
(8) Install a water storage tank, water pump, and related water distribution infrastructure as needed;
(9) Install water filtration/purification system (see NOTE 2);
(10) Install safety upgrades to meet post occupational safety and health officer (POSHO) certification requirements specified in 15 FAM Exhibit 971.1 Residential Property POSHO Certification Requirements (see NOTE 7 and 8);
(11) Install security upgrades as identified by the regional security officer (RSO) (includes, as needed, installation of a portable guard booth including a concrete pad and connection to required utilities) (see NOTE 3);
(12) Install window screens and mosquito bed nets, if required (see NOTE 4);
(13) Install light-reflecting window film (see NOTE 5);
(14) Install smoke alarms, carbon monoxide detectors (if required), and fire extinguishers (equipment is provided by OBO; see 15 FAM 842);
(15) Perform initial pest control services/, if required;
(16) Perform initial gardening/yardwork, as needed;
(17) Plaster and paint, as needed;
(18) Perform a title search to validate ownership;
(19) Install ramps, stairs, lighting and other fixtures and fittings to make reasonable accommodations for physically challenged occupants;
(20) Install a generator, including an external fuel tank, automatic transfer switch, sound enclosure and concrete pad (see NOTE 6), and remote generator monitoring system, if applicable. In extremely hot climates, this may also include a solar shield to improve efficiency; and
(21) Conduct final cleaning after all commissioning work is completed.
NOTE 1: The lease should specify the landlord's responsibility for basic flooring in the property, including a requirement to repair/replace wall-to-wall carpeting and/or tile/wood floors, when necessary. In the Department of State's model lease (15 FAM 350), this language can be included in the sections related to Commissioning responsibilities or Landlord Maintenance responsibilities. In locations where this is not a landlord responsibility, post should avoid wall-to-wall carpet and use tile, hardwood or carpet tiles when preparing floors. Sanding wood floors should not be done more than once every eight to ten years and never between each occupant.
NOTE 2: Post must work with OBO/OPS/SHEM and MED when determining the most effective water treatment solutions, whether point of entry or point of use (see 6 FAH-5 Exhibit H-513.2-2(2)).
NOTE 3: For residential properties for new positions, all security upgrade costs are the responsibility of the sponsoring agency. For replacement leases, security upgrade costs are funded by DS (see 12 FAH-8 H-320 and 15 FAM 165.3).
NOTE 4: Window screens are not standard in all countries and should be provided only in those countries with a high threat of insect-borne diseases as listed on MED's website. In general, at such posts, bed nets [provided in the Furniture and Appliance Pool (FAP) buy-in] must be installed in all bedrooms. At some posts, the cost of installing window screens is cost prohibitive and often the local climate precludes opening windows. At other posts, window designs may not be conducive to the installation of screens without major alterations. In these situations, posts may determine that window screens will not be provided. Window screens must be addressed in post's commissioning policy (see 6 FAH-5 H-522.2 paragraph c).
NOTE 5: Before installing reflective window film, post should do a cost benefit analysis to compare energy cost savings with the cost of installation.
NOTE 6: To ensure provision of safe and reliable power, post must coordinate with OBO/CFSM/FAC/PS for technical assistance in selecting appropriate power conditioning equipment for post's requirements (e.g., generator, voltage regulator, etc.). OBO manages the residential generator program and is responsible for the movement and installation of generators (see 15 FAM 676).
NOTE 7: Residential POSHO Certification upgrades are included in the overall commissioning requirements and are reflected in post’s projected average costs. For routine replacement leases, POSHO required upgrades are charged to the funding source responsible for commissioning. When the POSHO implements new safety or other requirements which require changes or upgrades to existing operating leases in the consolidated housing pool, post must first negotiate with the landlord to fund and make the changes. If the landlord is not willing to fund the changes, post must work with OBO/CFSM/FAC to obtain appropriate funding for the required upgrades at existing properties. Post should seek support from OBO/PRE/RPL in negotiating upgrades into the lease. The costs to meet new POSHO certification requirements must be added to the overall NSDD 38 start-up costs and be incorporated in post's updated Residential Commissioning and Make Ready (RCMR) datasheet and commissioning policy.
NOTE 8: The Department of State, Bureau of Overseas Building Operations (OBO), is responsible for providing basic safety equipment for all residential properties (e.g., OBO/OPS/FIRE funds smoke detectors and fire extinguishers, and OBO/OPS/SHEM funds carbon monoxide alarms), irrespective of the occupying agency. These items are not funded by ICASS or the FAP program.
NOTE 9: If any tasks in the commissioning process must be contracted out, either due to the temporary lack of staff, or the lack of the skilled staff required, the cost of that contract is charged to the funding source responsible for commissioning in accordance with post policy.
6 FAH-5 H-522.2 Managing Residential Commissioning Requirements
(CT:ICASS-117; 10-23-2023)
(Applies to participating ICASS agencies)
a. Lease duration: Recognizing the additional costs associated with commissioning residential properties, the SRPM seeks to negotiate leases that will suit the long-term requirements of the consolidated housing pool and cover three or more tours of duty (see NOTE 2). Longer lease terms allow for greater utilization of alterations or improvements required to meet U.S. Government security and safety standards when bringing a new property into the consolidated housing pool. In negotiating the lease, the SRPM will ask the landlord to fund all initial requirements at no cost to the maximum extent possible (see 15 FAM 200 and 15 FAM 313.1). If the landlord agrees to perform the required upgrades but only at an additional cost, the cost of those upgrades must be separated from the rent and charged up front as a one-time cost to the tenant agency or other appropriate fund source as outlined in this sub-chapter. If the landlord will not fund any or all of these alterations or improvements, the U.S. Government will fund these requirements as outlined in this sub-chapter.
NOTE 1: Post is not authorized to enter into capital leases (as defined in 15 FAM 121) without prior authorization from OBO (see 15 FAM 312.1).
NOTE 2: Recognizing that the operating environment at each post is different, lengthy initial lease terms may not be feasible; however, post should acquire leases with multiple renewal options that would allow for retention of the property for three or more tours of duty (i.e., six or nine years, based on the Department of State's tour of duty policy) (see 15 FAM 313.2).
b. Cost-benefit analysis: When considering new properties for the housing pool, the SRPM should coordinate a cost benefit analysis to weigh the total lease costs for a well-appointed property that requires minor residential commissioning costs against potentially lower lease costs for a property that requires significant commissioning costs. Post should consult with OBO/PRE/RPL and make a decision based on the best financial interests of the U.S. Government over the initial term of the lease. If a proposed lease exceeds post's current rental benchmark or typical lease cost, post must present the analysis and justification to OBO/PRE/RPL for review.
c. Post policy: Starting with the standard template (see 6 FAH-5 Exhibit H-522), each post must prepare a policy that outlines the typical requirements for the residential commissioning process, selecting alternate language as needed. This will ensure that all customer agencies understand how the local environment impacts the requirements for bringing a property into the housing program. Post is responsible for ensuring the policy is reviewed and updated every two years (see 6 FAH-5 H-521 paragraph d):
(1) Central datasheet: A datasheet hosted on the RCMR page of the ICASS Service Center website maintains post-submitted information on the average cost for commissioning a new property into the housing pool at each post. This average residential commissioning cost is a budget and planning number to allow agencies to anticipate the projected costs for commissioning a new property, with the understanding that the final cost may be higher or lower than this amount, depending on the size of the incoming family and the availability of suitable housing. Agencies will fund the actual cost of the commissioning requirements. Each post is responsible for updating the cost information on the datasheet as needed, but at least every two years:
(a) Calculating average costs: Each post will determine its average residential commissioning cost for a new residential operating lease for the consolidated housing pool, recognizing that some properties will be more, others less. The total amount will include all costs, including security upgrades and generator costs (which must be broken out separately). This average amount and the activities it includes must have the concurrence of the ICASS Council and regional bureau (see 15 FAM 140). In calculating the average cost, each post must consider the local environment, availability and condition of residential properties, and the long-term interests of the U.S. Government;
(b) What is included?: Depending on circumstances at post, completion of commissioning requirements may be performed by the landlord, in-house staff, contractors, or a combination of all of these. In-house staff should be used only in circumstances where there are no other viable options. At posts that perform commissioning requirements in-house, budgeted costs in the 7850-0899-Commissioning sub-cost center will include primarily staff time, any necessary contract costs (see 6 FAH-5 H-522.3), and building operations supplies funded in ICASS; excluded from this calculation is the cost of all bulk maintenance supplies funded by OBO/MCS:
(i) If all commissioning requirements are contracted out and direct charged, post must determine the average costs across multiple properties of different sizes and enter the average cost in the datasheet;
(ii) If commissioning requirements are performed by both in-house and contract staff, post must include the average of all costs in the datasheet;
(iii) Commissioning requirements performed by the landlord but broken out and funded as a one-time cost by the U.S. Government (tenant agency) must be included in this calculation;
(iv) Costs for the purchase and installation of a generator and related equipment, where applicable, must be included in this calculation on a separate line. OBO has established standard buy-in amounts for the generator program; post must contact OBO/CFSM/FAC/PS for detailed information;
(v) Costs for all security upgrades funded by the U.S. Government must be included in this calculation on a separate line;
(vi) Commissioning requirements completed by the landlord at no additional cost to the U.S. Government should NOT be included in this calculation; and
(vii) OBO funds the cost of all bulk SRM supplies required for the commissioning process; there is no charge back to agencies and these should not be included in this calculation.
d. Management of records: Each post will maintain appropriate detailed records of all costs related to the commissioning of a property in accordance with 15 FAM 140. These records are essential for managing post's housing pool because they establish the history of conditions and changes to each leased property and are essential in making a future business case for retention of a property. This information is also essential for Washington managers to make future decisions on how this activity should be funded.
e. Commissioning costs and the FAP: Post must make a distinction between what is covered by the commissioning process and what is included in the FAP program. The commissioning process covers only the infrastructure improvements required in order to install household appliances, water heaters, water distillers/purifiers, air conditioners, furnishings, etc., that are part of the consolidated FAP program (see 6 FAH-5 Exhibit H-513.2-2). The new position start-up costs include the FAP buy-in amount which is collected separately and covers the purchase of all required furniture, furnishings, and appliances (FFA&E). The cost of the FFA&E is not included in the funding required for the residential commissioning process.
f. LQA/OHA reviews and approvals: Employees acquiring their housing under LQA/OHA are required to obtain the approval of the RSO and POSHO before leasing a property. Any costs associated with alterations required as a result of these reviews are funded by the employee or employing agency, in accordance with agency regulations. In addition, the post Interagency Housing Board (IAHB) must approve the property to ensure it is within established space standards.
6 FAH-5 H-522.3 Funding and Budgeting Residential Commissioning Costs
(CT:ICASS-117; 10-23-2023)
(Applies to participating ICASS agencies)
a. Given the variety of potential requirements for bringing a property into a post housing pool, the costs for this activity will vary widely from post to post. Ideally, landlords would fund all established requirements at no additional cost to the U.S. Government (USG). Where that is not possible, these requirements must be funded by the USG. Commissioning costs funded by the USG represent a significant investment in a property and post should make every effort to retain these properties for an extended lease period. Commissioning costs will be authorized for replacement of a lease only in certain circumstances as outlined below:
(1) SRPM has determined an existing property is too costly to maintain;
(2) RSO has determined that the existing property no longer meets security standards and cannot be upgraded;
(3) POSHO has determined that the existing property no longer meets SHEM certification requirements and cannot be upgraded;
(4) Landlord has unexpectedly requested the return of the property; or
(5) The SRPM has determined the existing property no longer fits the required post housing profile.
b. Funding commissioning costs for replacement operating leases for the consolidated housing pool:
(1) Posts that meet the 75 percent rule: To encourage longer lease retention, posts that retain at least 75 percent of their leases for at least three tours of duty (six years at two-year posts, nine years at three-year posts, based on the Department of State’s tour of duty policy for post) will be allowed to fund the commissioning costs of replacement leases in ICASS. This will simplify the budget and planning requirements for this activity (see paragraph e for budget guidance):
NOTE 1: To track lease retention data, OBO will provide the ICASS Service Center (ISC) with each post’s lease data every September. The ISC will calculate lease retention rates and post a report on the RCMR page of the ICASS website showing which posts meet the 75 percent criteria.
NOTE 2: ICASS funding may be used for commissioning for replacement operating leases only. See paragraph c for commissioning costs that must be funded from other sources.
(a) Change in status: Posts that drop below the 75 percent level will be given two years to realign their portfolio to return to the approved level; this will be monitored on the lease retention report. Posts that remain below the 75 percent level for more than two years, but do not meet the requirements for a waiver (see section (b) below), will need to change/update their post policy and begin direct charging the incoming assigned agency for all commissioning costs beginning in that fiscal year, as described in section 2 below; and
(b) Waivers: Posts that have traditionally met the 75 percent rule but experience a major change in their housing profile (i.e., a move into a planned multi-unit compound that required dropping a large number of leases; or a move to new embassy compound that required major changes to the housing pool), may request a waiver from the regional bureau that would allow them to continue to fund commissioning costs in ICASS. If approved, the lease retention report will be annotated to show this waiver. The ISC and the regional bureau will review the status of approved waivers periodically to ensure they meet the criteria outlined in this policy.
(2) When posts do not meet the 75 percent rule: If a post does not meet the 75 percent lease retention period, all commissioning and decommissioning costs are direct charged to the assigned agency. If these costs are not direct charged because contracting out is not possible, the costs are budgeted in ICASS as outlined in paragraph e below.
c. Funding commissioning costs for properties other than replacement leases for the Consolidated Housing Pool:
(1) Government-owned/capital lease (GO/CL): Residential commissioning requirements for GO/CL properties are funded by OBO;
(2) Designated/dedicated properties: Residential commissioning requirements for designated properties (e.g., residence of the chief of mission, deputy chief of mission, principal officer, or Marine Security Guards) and dedicated properties (for the senior representative of a foreign affairs agency) are charged to the assigned agency;
(3) New positions: All costs associated with the commissioning of a residential property required for a new position, including security and safety upgrades, are funded in full by the sponsoring agency. Agencies are provided the estimated average residential commissioning costs in the overall start-up costs outlined in the NSDD 38 process. However, the agency will be charged the actual costs of commissioning the assigned property, except as outlined below:
(a) Given the timing of an employee's arrival and the SRPM's need to maintain an appropriate mix of housing in the pool, the new employee may be assigned to an existing pooled property. In such cases, the agency with the new position will be responsible for the commissioning costs for the next new/replacement property needed for the housing pool. The total amount charged may not exceed post's average commissioning cost as reported on the RCMR Datasheet. If the average amount is not sufficient to cover the cost of commissioning the new property, ICASS will fund the difference. If the actual cost is less than the average commissioning cost, the agency will only be charged the actual cost; and
(b) The requirement for the new agency/new position to cover such commissioning costs will expire twelve months after the arrival date of the new employee.
NOTE 1: In situations where a new agency/position is established at a post in the same timeframe as another agency abolishes a position or withdraws from post, resulting in no requirement to lease a new property, the new agency/position is not charged any residential commissioning costs. The downsizing or withdrawing agency remains responsible for turnover make-ready costs of any occupied units.
NOTE 2: If an agency abolishes a position and creates a new one within the same year, there is no net increase for that agency (at the Department level). Commissioning costs for the property assigned to this new position will be managed in accordance with post policy and not as if it were a new position (i.e., the employee is assigned to an existing lease, or post would acquire a replacement lease as part of its normal operations).
(4) Vacant positions: If an agency leaves one of its positions vacant for an extended period of time, resulting in a lease being dropped from the housing pool, the agency will be responsible for funding the commissioning costs for a new lease when the position is filled in accordance with above guidance on new positions, regardless of whether post meets the 75 percent criteria;
(5) Double-encumbered positions: Most posts are able to accommodate nominal overlapping of positions (e.g., up to one month) and assign the newly arriving employee to existing vacant housing, if available. Post may also need to consider other alternatives to house the newly arriving employee until a property becomes available (e.g., hotel, corporate housing, TDY housing, etc., which is charged to the employing agency; see NOTE 1). If a situation arises where the incoming and outgoing employees of an agency overlap for a lengthy period and post is required to lease and commission a new property, the commissioning costs are direct charged to the agency. This situation may require adjustments to other ICASS workload counts (see 6 FAH-5 H-333.2 paragraph 4);
NOTE 1: If a position is to be double-encumbered for an extended period of time and post would need to commission a new property, the agency should be advised of the possible alternatives, including having the current employee move to temporary quarters (at the agency’s expense) to allow the incoming employee to be assigned to permanent housing.
(6) Tandem couples: If a new lease is required after the departure of a tandem couple, commissioning costs are split 50/50 by the agencies of the departing tandem couple; and
(7) Safe havened families: If a new lease is required when an employee is assigned to a high threat post and the family is allowed to safe haven at the home post and the agency assigns a replacement officer, the safe havening agency funds the commissioning costs.
d. Providing funding for commissioning costs: In order to ensure the timely receipt of funds and post's ability to complete the required commissioning activities, agencies must provide a fund cite at least ninety days before the end of the fiscal year and/or ninety days prior to the anticipated arrival of the new employee. For new employees scheduled to arrive early in a new fiscal year, funding must be received at least 90 days prior to the end of the previous fiscal year. OBO/MCS-funded SRM supplies used in the commissioning of a property for a new position are funded by OBO/MCS with no charge back to the agency.
e. Budgeting commissioning costs in ICASS: At posts that meet the 75% criteria or cannot out-source and direct charge commissioning costs to assigned agencies, these costs are budgeted in ICASS and must be broken out using standardized sub-cost center 7850-X899-Commissioning/decommissioning (see 6 FAH-5 H-341.15-12 for detailed guidance on budgeting, time allocation, and workload counts):
(1) Budgeted costs include time allocation for LE Staff who actually perform the make-ready activities; all supervisory staff time is allocated to the main 78XX-Building Operations cost centers and not to the sub-cost center. No USDH time is allocated to the sub-cost center;
(2) Posts that hire additional painters or other laborers to supplement in-house staff required for commissioning activities budget these costs in this sub-cost center using sub-object code 2510; and
(3) The workload count in the sub-cost center is the total number of properties commissioned in the prior fiscal year (from May 1 through April 30):
(a) At posts that meet the 75% criteria for funding commissioning costs in ICASS, the workload count is the total number of properties commissioned in the prior year and is charged only to 1901.0-ICASS. This will ensure that this cost is shared by all agencies at post; and
(b) At posts that do not meet the 75% criteria but are unable to out-source its commissioning requirements and direct charge, the workload count is the total number of properties commissioned for each agency in the prior fiscal year.
6 FAH-5 H-522.4 Exclusions to the Commissioning Process
(CT:ICASS-117; 10-23-2023)
(Applies to participating ICASS agencies)
a. Commissioning activities may not include any of the following building alterations:
(1) The removal or addition of exterior walls (or portions thereof) from/to a residence;
(2) Modification of any structural components of the property;
(3) Modification of any required component of a fire or smoke-rated material such as ceiling tiles or fire-rated doors;
(4) Alteration of any required means of egress, system or component except DS-approved security features;
(5) Modification of fire protection systems or utility service infrastructure;
(6) New building construction for any purpose (see NOTE); and
(7) Removal or disturbance of any hazardous materials.
NOTE: If any specialized enclosure or structure is required for a generator installation, post must submit a request for a new project and obtain a permit before any work is started (see 15 FAM 676.1-2.paragraph o.).
b. If any of the above are required, they must be performed either by the landlord as part of the negotiated lease or managed and funded by OBO as a lease fit-out project. To request a lease fit-out project, post must submit a "Major Lease" cable to OBO's Office of Planning and Real Estate (OBO/PRE) (see 15 FAM 311.4). If approved, the assigned agency funds the lease fit-out for the residence(s). For Department of State positions, residential fit-out costs are funded by OBO.
6 FAH-5 H-523 Decommissioning leased residential properties
(CT:ICASS-117; 10-23-2023)
(Applies to participating ICASS agencies)
a. What is decommissioning? In managing the consolidated housing pool, residential properties will periodically need to be “decommissioned” and returned to the landlord. The Department of State discourages including restoration terms in residential leases and has removed such language from the model lease in 15 FAM 350. However, depending on host country laws and local customs, such requirements will vary from post to post. When it is necessary to specify restoration conditions in the lease, post should negotiate arrangements that are favorable to the USG.
b. Who funds decommissioning costs?:
(1) Posts that retain at least 75 percent of their leases for at least three tours of duty (six years at two-year posts, nine years at three-year posts, based on the Department State's tour of duty policy for post) will be allowed to fund decommissioning costs in ICASS except as noted below:
(a) These costs will be budgeted in the standardized sub-cost center 7850-X899-Commissioning/Decommissioning (see 6 FAH-5 H-341.15-12). A decommissioned property is typically offset by a replacement lease that is acquired; the combined workload count for these two activities is "1" in this sub-cost center. Post will include workload counts for decommissioned properties only if they exceed the total number of replacement leases (i.e., post is in downsizing mode). The total number of properties decommissioned (and funded in ICASS) is charged to 1901.0-ICASS and the costs are spread through ICASS Redistribution; and
(b) However, an agency occupying a leased property that will be decommissioned and returned to the landlord will be held responsible for a portion of the costs related to the decommissioning process equal to or less than the typical turnover make-ready costs for post (depending on the total decommissioning costs). The agency will provide a fund cite equal to post's average turnover make-ready cost (see 6 FAH-5 H-524). Post will use those funds to offset the total decommissioning costs related to this property, thereby reducing the total amount funded by ICASS. If the actual total decommissioning cost is less than post's average make-ready cost, the agency will be charged only the actual cost.
(2) Posts that do not meet the 75 percent criteria are not able to retain leases for at least three TODs), direct charge decommissioning to the occupying agency. Posts in this category must ensure this information is included in their post policy (see 6 FAH-5 H-522.2 paragraph c);
(3) Decommissioning costs for a capital lease property are funded by OBO;
(4) In decommissioning a property, post should seek to remove and re-use any USG-installed equipment/items, as appropriate. Leases may require the lessee to restore the property to its original condition and post may be required to remove security grills, repair holes from HVAC installations, remove “improvements” unique to U.S. Government requirements. Post should seek to negotiate the most cost-effective termination arrangements possible; and
(5) For leased housing compounds, post should work with OBO/PRE/RPL to coordinate decommissioning efforts; cost sharing would follow the guidance as above.
c. Planning and management of records: Each post should ensure it appropriately plans for the decommissioning of residential properties well in advance to avoid potential lease penalties related to the notification period required in the lease or the condition of the property. Post must also provide timely notification to the tenant agency of the lease termination date to ensure an orderly departure from the property. Post must maintain appropriate records in the lease file on all costs related to decommissioning a residential property (see 15 FAM 140). For capital leases, OBO funds all related decommissioning costs.
d. Exceptions: Decommissioning costs for properties acquired for unique requirements (e.g., a lease for a one-tour short-term position; a one-time need to accommodate a large family of an agency; a group house; or a dedicated residence) are funded by the occupying/assigned agency. Post must ensure the affected agency is aware of this requirement.
6 FAH-5 H-524 Residential Make-ready
(CT:ICASS-117; 10-23-2023)
(Applies to participating ICASS agencies)
a. Occupant turnover starts the make-ready process in a consolidated housing pool. Standard make-ready requirements relate to painting, cleaning and minor grounds care. However, during the turnover process, post may identify additional SRM work required to restore the property to appropriate condition for occupancy. These SRM requirements are separate from the make-ready process and are handled differently (see paragraph d). Post’s make-ready policy (see paragraph e) should include information on the tasks/actions performed to prepare an existing property for a new occupant (see paragraph d below) as well as what is covered by the make-ready process. The cost of make-ready is direct charged to the outgoing tenant agency whenever possible or budgeted in ICASS as outlined in paragraph c.2 below. SRM requirements are handled in accordance with the terms of the lease and post policy.
b. What is make-ready?: Make-ready is the process to prepare a property for occupancy between tenants, whether it is a GO, CL, or OL property and includes:
(1) Interior painting (NOTE 1 and paragraph c below);
(2) General cleaning of the residential unit (e.g., floors, closets, windows, etc.) (see Notes 2 and 3);
(3) Garden clean-up, grounds care, and cleaning gutters (see paragraph h);
(4) Changing or re-keying door locks, as determined by the RSO (see NOTE 4);
(5) POSHO verification that requirements of 15 FAM 252.5 are still met at the property; and
(6) RSO verification that relevant security requirements are still met at the property (see paragraph d Note 1 for maintenance of security items).
NOTE 1: Exterior painting is typically a landlord maintenance responsibility. If the landlord refuses to perform the work, it is contracted out and the cost is deducted from the rental amount and used to offset the contracted labor and supplies used, executing journal vouchers as needed.
NOTE 2: Make-ready cleaning focuses on the residential property; maintenance and cleaning of FAP furniture and appliances is part of the services provided under 6144-FAP Services and is funded in ICASS.
NOTE 3: In vacated properties where the tenant had pets, post should ensure that any special cleaning or treatments required (e.g., fleas) are completed and charged to the outgoing tenant as a personal expense.
NOTE 4: If the RSO requires locks/keys to be changed between tenants, the related cost is funded by DS (FC 5841 - Residential Security Upgrades).
c. Who funds make-ready costs?: Make-ready costs are direct charged to the agency of the outgoing occupant. This will ensure that agencies can plan for the estimated cost of a routine make-ready associated with the anticipated rotation of its employees. This timing will also allow post to immediately prepare a property for occupancy without having to wait for a housing assignment to be made. Contract costs for make-ready services such as painting, cleaning, and grounds clean-up are direct charged to the outgoing agency and are not funded in ICASS except as outlined below:
NOTE 1: Make-ready costs include only the activities identified as typical turnover make-ready requirements outlined in paragraph b in this section, plus any unique post requirements. It does not include SRM tasks (see paragraph d below).
NOTE 2: Make-ready requirements for designated and dedicated properties are funded in accordance with the guidance outlined in this policy and charged to the outgoing tenant agency.
NOTE 3: If a property has been made ready by the outgoing tenant agency and it is temporarily assigned as transient housing, all costs for the property (e.g., rent, utilities, etc.) are paid by the assigned temporary agency during the period of occupancy (see 15 FAM 164 and 15 FAM 249). Upon vacating the property, the temporary agency will be responsible for any required cleaning to prepare the property for its permanent assigned occupant.
(1) Supplies for painting/cleaning/grounds care: OBO MCS funds the cost of all bulk SRM supplies, including painting supplies and equipment for make-ready requirements, as needed. Regional Bureau ICASS funds all supplies related to building operating expenses (i.e., cleaning products and tools, grounds care products and tools, etc.); and
(2) Budgeting for make-ready costs: Provision of make-ready services varies from post to post. Some posts only use in-house staff, some contract out for all services, and others may use a combination of both. Handling these costs in ICASS will vary depending on post circumstances. In all cases where make-ready costs must be budgeted in ICASS, post must break out these costs and activate the standardized sub-cost center 7850-X799-Make-Ready (for detailed guidance, see 6 FAH-5 H-341.15-11):
(a) Option 1 (Work performed by in-house staff and occasionally augmented by contract labor): At posts with sufficient LE Staff to provide make-ready services (e.g., painters, cleaners, and grounds keepers), an appropriate portion of their time is allocated to the make-ready sub-cost center; LE supervisors who do not actually perform make-ready activities allocate their time to the 78XX cost centers, not to the sub-cost center. No USDH time is allocated to the sub-cost center. If the in-house staff is augmented by outside contractors, the contract costs are also budgeted to this sub-cost center (using sub-object code 2510), pooling the total costs for make-readies. The workload count in the sub-cost center is the total square meters made ready for each outgoing agency in the prior fiscal year (from May 1 through April 30) and the total costs are shared according to each agency’s percentage share of the total square meters made ready;
(b) Option 2 (Specific make-ready activities split between in-house staff and contractors): At posts that typically direct charge portions of make-ready (e.g., all painting, all cleaning, or all grounds care services) but some services are done in-house, post would continue to direct charge those portions that are contracted out and in the make-ready sub-cost center budget only for those services performed with in-house staff and related supplies, following the guidance outlined in 6 FAH-5 H-341.15-11. The workload count is the total square meters made ready for each outgoing agency in the prior fiscal year (from May 1 through April 30); the total costs are shared according to each agency’s percentage share of the total square meters made ready;
(c) Option 3 (All make-ready work contracted out and direct charged): At posts with no in-house staff for make-ready requirements, post will continue to contract for these services and direct charge the tenant agency; no costs would be included in the ICASS budget, and the sub-cost center is not activated; and
(d) Option 4 (All make-ready work performed by the landlord): At posts where the landlord typically provides this service, that practice would continue, and these costs would not be included in the ICASS budget, and the sub-cost center is not activated. This arrangement would be documented in post’s Make-Ready policy.
d. Sustainment and restoration performed during make-ready: During the turnover process, many posts take this opportunity to perform a range of restoration tasks not done during the tenant agency's period of occupancy. These tasks are not part of the make-ready process but must be performed during this period in order to bring the property back to established standards:
(1) Restoration at operating lease properties should be coordinated with and charged to the landlord in accordance with established post procedures. Restoration that is not the landlord's responsibility should be handled according to OBO policy in 15 FAM 600. If the U.S. Government must complete restoration tasks because the landlord is unable/unwilling to perform the work, all costs related to required contract labor and/or supplies should be deducted from the rent. Post should process a journal voucher to the allotment that funded these items (e.g., to 7906 for OBO/MCS-funded SRM supplies used, or to 1901.0-ICASS or the tenant agency for contract labor);
(2) For government owned properties or in situations where the landlord is not responsible for sustainment, OBO MCS funds all sustainment parts and supplies. Agencies' subscription to 7810/7850-Building Operations Residential Services typically covers the labor associated with these activities. If a post does not have in-house facilities staff (e.g., painters, carpenters, electricians, plumbers, etc.) to perform sustainment, the cost of contract labor for these functions is direct charged to the tenant agency and not included in ICASS; and
(3) If a particular task requires specialized technical skills (e.g., elevator mechanic), OBO will fund the cost of the contract for this labor (see OBO M&R Funding Matrix). OBO does not fund labor contracts for sustainment tasks (e.g., plumbing, electrical, painting, etc.).
NOTE 1: Maintenance of security equipment: Routine maintenance and repair of security equipment (e.g., repainting of grills, repair/replacement of intercom/entry equipment) is funded by DS (FC 5841 - Residential Security Upgrades).
NOTE 2: Residential building operations contracts: Contract costs related to ongoing operations requirements for a specific property (e.g., gutter cleaning, chimney cleaning, etc.) are direct charged to the tenant agency assigned at the time the activities are performed. While these activities may take place during the make-ready time period, they are unique costs for a property which must be direct charged to the assigned tenant agency.
NOTE 3: Generator sustainment: OBO funds the cost of annual residential service contracts for generators, regardless of the occupying agency. At posts that provide generator sustainment services with in-house staff, OBO MCS provides all funding for related parts and supplies.
e. Post policy: The SRPM, working with the Interagency Housing Board (IAHB), will establish a make-ready policy using the standard template (see 6 FAH-5 Exhibit H-524). The policy outlines the required services to be provided in the make-ready process to ensure that all properties meet agreed upon standards. Having a clear policy will ensure that all properties are maintained and prepared for occupancy according to established post standards. GSO is responsible for preparing and updating this policy every two years:
(1) Average cost: Each post is responsible for entering and maintaining its average residential make-ready cost on the RCMR Datasheet on the ICASS Service Center website that also tracks post-specific residential commissioning costs. This information will be used by the regional bureau and agencies for budget and planning purposes, but posts will charge the actual costs of the make-ready, whether higher or lower. Post should ensure tenant agencies are given early warning if costs will exceed the post's average make-ready cost (and be prepared to provide an explanation). In calculating the average cost, each post must consider the local environment, the standard tour of duty, and the typical cost for meeting the make-ready requirements. It does not include any sustainment and restoration costs; and
(2) What is included?: Depending on circumstances at post, post may use various approaches to perform make-readies (see paragraph c.1 above); for the datasheet, post must capture the average cost to perform the basic make-ready requirements. LE staff time and any supplies (excluding OBO-funded sustainment supplies) budgeted in the make-ready sub-cost center are included in this calculation, as well as any contract costs that may be direct charged:
(a) If post contracts out and direct charges the entire requirement, calculate the average cost from the most recent set of make-readies and enter that amount in the datasheet;
(b) If post budgets all make-ready costs in the 7850-X799-Make-Ready sub-cost center, use the total budgeted costs divided by the number of properties made ready to calculate the average cost; and
(c) If post uses a combination of direct charging and budgeted costs, take the average from each category and add them together, dividing by the total number of properties made-ready, entering that total in the datasheet.
f. Management of records: Post will maintain appropriate records in the lease file on all costs related to the make-ready process in accordance with 15 FAM 140). Tracking these costs will allow the service provider to establish and monitor the average make-ready amount for their post and provide essential information for resident agencies. OBO will track the use of sustainment supplies using ILMS/Expendables and the Global Maintenance Management System (GMMS).
g. ICASS-funded costs: All posts that budget make-ready costs in ICASS must activate the standardized sub-cost center 7850-X799-Make-Ready for all property types (GO/CL/OL) and use square meters made ready for each agency in the previous year (May 1 through April 30) as the workload count (see detailed guidance in 6 FAH-5 H-341.15-11).
h. Tenant responsibilities: During occupancy, general cleaning, grounds keeping, and trash removal are the responsibility of the tenant. Prior to departure, the SRPM will inspect the residential property to assess the property condition and any damages determined to be beyond “fair wear and tear.” All costs associated with damages beyond fair wear and tear, including those related to pets, will be charged to the tenant (see 15 FAM 245 and 15 FAM 247).
NOTE 1: During occupancy, general grounds care is a tenant responsibility. If extensive clean-up or repair is needed upon departure of the tenant, post should ensure that the tenant is charged, as appropriate. During the period of vacancy (up to 90 days) until a new employee/agency is assigned, the outgoing agency remains responsible for all costs related to the property, including any service contracts or costs related to the ongoing operations of the property and grounds.
NOTE 2: Per 15 FAM 350, all residential leases must have a "conditions report" attached at signing (referenced in Article 2(B) of the Model Lease), agreed to and signed by both parties. The report is the baseline for measuring long-term damage and wear and tear on leased space.
i. Changing housing assignments: Procedures for appealing a housing assignment are outlined in 15 FAM 212.4-2.
(1) For changes approved for personal preference (e.g., location, personal reasons, etc.), any required make-ready of the occupied property being vacated is at the personal expense of the employee (e.g., cleaning costs). The cost of moving the personal effects of the occupant to the new residence is also a personal expense of the employee;
(2) For moves directed by the IAHB (e.g., an employee in an oversized home must move to accommodate a new, large family), the cost of any make-ready requirements and moving of personal household effects is charged to the current tenant agency;
(3) At posts where a new residential compound is acquired, the cost of moving the employees' personal effects from their current residence to the new compound is funded by the employing agency. The cost of moving all government owned furniture and appliance pool (FAP) items is funded by ICASS. Each agency is responsible for any lease termination costs associated with properties vacated by its employees; and
(4) For moves approved for genuine cause (e.g., security issues, landlord issues, documented medical reasons, etc.) and the lease is being dropped, follow the procedures for decommissioning a property outlined in 6 FAH-5 H-523. The cost of moving the personal effects of the employee is charged to the sponsoring agency; the cost of moving all FAP items is funded by ICASS.
6 FAH-5 Exhibit H-522
Post Commissioning Policy
(CT:ICASS-117; 10-23-2023)
(Applies to participating ICASS agencies)
This Post Commissioning Policy template must be tailored to reflect post’s circumstances. In all paragraphs with “Alternate Language,” post must select the language or option that represents local conditions. The final post policy should have no RED italicized text and all comments shown in italics should be deleted.
MANAGEMENT POLICY
SUBJECT: Residential Commissioning Policy for Mission XXXXX
1. PURPOSE
This document outlines the policy and guidance for post’s residential commissioning and decommissioning activities in accordance with 6 FAH-5 H-522 Commissioning Residential Properties.
2. GOAL
The primary goal of this policy is to standardize the process for acquiring residential properties for the consolidated post housing pool and to ensure the retention of these properties for at least three tours of duty to allow for greater utilization of the investment in any required upgrades.
3. SCOPE
This policy applies to all leased properties acquired for post’s consolidated housing pool and all agencies that receive housing services at post. Agencies that have dedicated housing (i.e., senior representatives of the Foreign Agriculture Service, Foreign Commercial Service, US Agency for International Development, and the senior Defense representative, as outlined in 15 FAM 235.3) are included under the provisions of this policy but each agency is responsible for all commissioning costs related to those dedicated properties. Similarly, properties acquired for unique requirements (e.g., group housing for a particular agency, housing for short-term positions) are funded by the requesting agency.
The Bureau of Overseas Building Operations (OBO) is responsible for all commissioning and decommissioning costs related to Government-owned and capital leased properties.
4. WHAT IS RESIDENTIAL COMMISSIONING?
Commissioning refers to the process of acquiring and preparing appropriate residential properties to meet the post’s housing requirements. It includes meeting all the safety and security requirements in accordance with 15 FAM 252. The Single Real Property Manager (SRPM) is responsible for identifying properties and negotiating leases that meet these requirements. Post makes every effort to have all necessary upgrades be completed by the landlord at the landlord’s expense whenever possible. Upgrades that the landlord will not fund but are deemed necessary to approve the lease are funded by the US Government as outlined in this policy.
New properties are acquired for new or growing agencies at post, as well as to replace existing properties that are dropped from the housing pool as outlined in paragraph 5.d below.
At this post, the following upgrades represent the typical requirements to bring a property into the housing pool:
For this section, delete all line items that are not required at your post and add items that are not on this list but are authorized commissioning activities unique to your post. The items shown on the list in your post policy must align with what post entered in the RCMR DataSheet.
a. Add/provide/install basic kitchen fixtures (e.g., cupboards, counter tops, sinks and faucets)
b. Upgrade the electrical and/or plumbing systems to accommodate American appliances (e.g., dedicated circuit and/or water lines for a washer and dryer, grounding of the electrical system, wiring to accommodate air conditioning units, etc.). Install bathroom fixtures and appliances, shower curtain rods, etc.;
c. Install a gas line for bottled gas;
d. Install USG-provided air conditioners, water heater(s), and household appliances;
e. Provide/repair/replace/install interior light fixtures;
f. Repair/replace/install ceiling fans;
g. Refinish/repair floors;
h. Install a water storage tank, water pump, and related water distribution infrastructure;
i. Install water filtration/purification system;
j. Install safety upgrades to meet POSHO certification requirements specified in 15 FAM Exhibit 971.1 Residential Property POSHO Certification Requirements;
k. Install security upgrades as identified by the RSO (includes, as needed, installation of a portable guard booth including a concrete pad and connection to required utilities;
l. Install window screens and mosquito bed nets, if required;
m. Install light-reflecting window film;
n. Install smoke alarms, carbon monoxide detectors, and fire extinguishers (equipment is provided by OBO;
o. Perform initial pest control services , if required;
p. Perform initial gardening/yardwork, as needed;
q. Plaster and paint, as needed;
r. Perform a title search to validate ownership;
s. Install ramps, stairs, lighting and other fixtures and fittings to make reasonable accommodations for physically challenged occupants;
t. Install a generator, including an external fuel tank, automatic transfer switch, sound enclosure and concrete pad; and remote generator monitoring system;
u. Conduct final cleaning after all commissioning work is completed.
The policy outlined in 6 FAH-5 H-520 contains detailed information regarding limitations on the items outlined above as well as types of activities that may not be included in the commissioning process. The SRPM is responsible for ensuring these limitations and exclusions are factored into post’s commissioning process.
WHO FUNDS COMMISSIONING COSTS?
Paragraph d in this section requires post-specific language; select the language/edits that reflect post circumstances. Non-generator posts should omit the related phrase in paragraph a.
a. New Positions: All costs associated with the commissioning of a residential property for a new position (excluding those costs undertaken by the landlord at the landlord’s expense), including all safety and security upgrades, and the purchase/installation of a generator, are funded in full by the sponsoring agency (also see paragraph e.7). Post’s estimated average commissioning cost of $XX,XXX is recorded in the RCMR Datasheet on the ICASS website and is updated periodically.
Agencies must provide a fund cite for residential commissioning costs at least 90 to 180 days prior to the anticipated arrival of the employee to avoid temporary lodging costs. If funding for the lease and commissioning costs is not received, work on a new property cannot begin.
In some cases, post may assign the employee for a new position to an existing property due to the timing of their arrival and/or family size. However, the agency will remain responsible for commissioning the next new replacement lease acquired in the ensuing twelve months starting with the arrival date of the new employee. In this situation, the new agency would be responsible for funding the commissioning costs equal to the average commissioning cost for post. If the actual commissioning costs for this property exceed the post’s average cost, ICASS funds will cover the difference; if they are less, the agency would only fund the actual cost.
If a new position is established in the same year that another agency withdrew from post and no new property must be commissioned for the new position, the new agency will not be charged any commissioning costs.
All sustainment, restoration, and modernization (SRM) type supplies used in the commissioning process for new positions are funded by OBO/Maintenance Cost Sharing with no charge back to the agency.
b. Short-term Positions: All costs associated with the commissioning or decommissioning of a residential property required for a short-term position, where the property will be dropped upon the departure of the employee, are funded by the sponsoring agency. The cost of SRM supplies used in this process is handled as outlined in paragraph a above.
c. Unique Requirements: All costs associated with the commissioning or decommissioning of a residential property required for a specific, one-time requirement (i.e., group house for an agency with many TDYers, or a large property required to accommodate a very large family) are funded by the sponsoring agency. The cost of SRM supplies used in this process is handled as outlined in paragraph a above.
d. Replacement Leases and ICASS Funding: (Select ONE option and edit as needed):
OPTION 1 (post does NOT meet the 75% criteria as shown on the “Leases – Age in Years report on the RCMR page of the ICASS website):
Commissioning costs for replacement leases are funded in ICASS only if 75 percent of post leases have been retained for three or more tours of duty. Currently, only XX percent of our leases meet that requirement. Consequently, commissioning costs for new and replacement leases must be charged to the first assigned occupant. Post is working with the Interagency Housing Board (IAHB) to review this issue to determine if and how our retention rate can be improved.
OPTION 2 (post meets the 75% criteria as shown on the “Leases – Age in Years report on the RCMR page of the ICASS website):
ICASS will fund commissioning costs for replacement leases only if 75 percent of our leases have been retained for three or more tours of duty. Currently, 79 percent of our leased properties in the housing pool meet this criteria and we are authorized to fund commissioning costs for replacement leases in ICASS if the property meets the following criteria and the guidance in paragraph e below:
The SRPM has determined a property is too costly to maintain; or
The RSO has determined the property no longer meets security standards and cannot be upgraded; or
The POSHO has determined the property no longer meets SHEM certification requirements and cannot be upgraded; or
The landlord has requested the return of the property; or
The SRPM has determined the property no longer fits the required post housing profile.
If any tasks in the commissioning process must be contracted out, either due to the temporary lack of staff, or the lack of the skilled staff required, the cost of that contract is direct charged to the assigned agency or budgeted in ICASS in accordance with post policy.
e. Replacement Leases Not Funded by ICASS: Irrespective of the 75 percent rule, ICASS will not fund commissioning costs for replacement leases in the following circumstances:
· A new lease required for an agency’s long vacant position that is now being filled is charged to the agency;
· A new lease required following the departure of a tandem couple is shared 50/50 by the agency(ies) of the departed employees;
· A new lease, required when a family is safe-havened at a post and a replacement employee is assigned, is charged to the agency supporting the safe-havened family;
· A new lease for a group house for a single agency is charged to that agency;
· A new or replacement lease for a dedicated house for the head of a foreign affairs agency is charged to the agency; and
· A new lease required to expand the housing pool for a new position where the new employee was assigned to an existing property (see paragraph 5.a above).
Security Upgrades for Replacement Leases: The Bureau of Diplomatic Security (DS) funds the cost of security upgrades for all replacement leases, regardless of occupant.
6. BUDGETING FOR COMMISSIONING COSTS (Select ONE option and edit as needed):
OPTION 1 (Post does NOT meet the 75 percent criteria so commissioning costs are charged to each agency. Post is able to out-source some limited activities):
This post does not meet the required 75 percent lease retention rate, so all commissioning costs are direct charged to the assigned agency. We use in-house and contracted labor to complete commissioning requirements. All electrical work and the final cleaning* is always contracted out and direct charged to the assigned agency. All other commissioning requirements are performed with in-house staff and the related costs (i.e., LE staff time and certain BOE supplies) are budgeted in a special sub-cost center under Residential Building Operations (7850-0899-Commissioning). The workload count is the cumulative number of properties commissioned for each agency in the prior fiscal year (from May 1 through April 30). ICASS is charged only when an ICASS employee is assigned to a new property. All SRM supplies required for the commissioning process are funded by OBO/MCS and are not charged back agencies.
*post must tailor this phrase to reflect post’s situation
OPTION 2 (Post does NOT meet the 75 percent criteria so commissioning costs are charged to each agency. Post is unable to outsource so all commissioning costs are budgeted in ICASS and billed out to the affected agencies):
This post does not meet the required 75 percent lease retention criteria, so all commissioning costs are direct charged to the assigned agency. This post it is not able to out-source commissioning activities and all work is completed with in-house staff. All commissioning costs (i.e., staff time and certain supplies) are budgeted in a special sub-cost center under Residential Building Operations (7850-0899-Commissioning). The workload count is the cumulative number of properties commissioned for each agency in the prior fiscal year (from May 1 through April 30). ICASS is charged only when an ICASS employee is assigned to a new property. All SRM supplies required for the commissioning process are funded by OBO/MCS and are not charged back to the agencies.
OPTION 3: (Post meets the 75 percent criteria and all commissioning costs for replacement leases are budgeted in ICASS; post is not able to out-source.):
This post meets the 75 percent lease retention criteria, and all commissioning costs are budgeted in ICASS. We do not out-source commissioning activities and all work is completed with in-house staff. All commissioning costs (i.e., staff time and certain supplies) required for replacement leases are budgeted in a special sub-cost center under Residential Building Operations (7850-0899 – Commissioning). The workload count is the cumulative number of replacement properties commissioned in the prior fiscal year (from May 1 through April 30) and the workload is assigned to 1901.0-ICASS; workload related to new leases for new positions will be assigned to the appropriate agency. All SRM supplies required for the commissioning process are funded by OBO/MCS and are not charged back to the agencies.
OPTION 4: (Post meets the 75 percent criteria and all commissioning costs for replacement leases are budgeted in ICASS; post out-sources all requirements.)
This post meets the 75 percent lease retention criteria, and all commissioning costs are budgeted in ICASS. We out-source all requirements and budget the costs in a special sub-cost center under Residential Building Operations (7850-0899 – Commissioning). The workload count is the cumulative number of properties commissioned in the prior fiscal year (from May 1 through April 30) and is assigned to 1901.0-ICASS; workload related to new leases for new positions will be assigned to the appropriate agency. All SRM supplies required for the commissioning process are funded by OBO/MCS and are not charged back to the agencies.
7. WHO FUNDS NEW SAFETY AND SECURITY UPGRADES ON EXISTING PROPERTIES?
If new safety (POSHO) requirements are introduced after properties are commissioned and included in the post housing pool, the cost of upgrading all existing properties to meet this standard is funded by OBO. If new security requirements (DS or RSO mandated) are introduced after properties are commissioned and included in the post housing pool, the cost of upgrading all existing properties is funded by DS. In both cases, these new costs must be added to post’s estimated average commissioning costs maintained on the RCMR Datasheet and be incorporated in post's updated commissioning policy.
8. COMMISSIONING REQUIREMENTS AND LQA/OHA PROPERTIES
Employees who acquire their properties using LQA or OHA are required to obtain the approval of the RSO and POSHO before leasing a property. Any costs associated with alterations required as a result of these reviews are funded by the employee or the employing agency, in accordance with agency regulations.
9. FUNDING FOR OTHER RESIDENTIAL ACTIVITIES (Only paragraph b changes; select ONE option and edit as needed)
a. Building Operating Expenses (BOE) include items incidental to occupying a property (e.g., utilities, condo fees, service contracts, grounds care, etc.) and are direct charged to the tenant agency. Also included in BOE are various contracted services that are unique to a property (e.g., gutter cleaning, chimney cleaning, pest control, etc.); these costs are direct charged to the tenant agency. Other BOE activities performed by in-house staff are budgeted in ICASS in 7810/7850-Residential Building Operations and charged to tenant agencies according to their square meters assigned. If there is a shared multi-residence property, costs that can be separated out will be direct charged. Any costs that cannot be separated out are budgeted in ICASS in 7810/7850 Residential Building Operations and charged to the tenant agencies according to their square meters assigned.
OPTION 1: (Landlord is responsible for maintenance requirements but post sometimes must complete the work with in-house staff or a contractor and process a rental offset)
b. Sustainment, Restoration, and Modernization (SRM) includes activities to preserve, maintain or restore a property so it can be used for its intended purpose (e.g., caulking, repairing broken water pipes or household fixtures, etc.). At this post, landlords are responsible for maintenance activities as outlined in the lease agreement. When the landlord is unable or unwilling to do this work, the SRPM will undertake to complete the work and calculate a rental offset to cover all necessary costs.
Depending on the task involved, the work may be completed by a contractor and that cost is the rental offset. If the work is completed with in-house staff, the related costs may not be charged back to the landlord; agencies’ subscription to 7850-Residential Building Operations covers these labor costs. If post needs to augment in-house staff with contracted labor to perform sustainment tasks, those costs are budgeted in the Building Operations cost center and may be included in the rental offset. The cost of all OBO/MCS-funded SRM supplies used to complete sustainment activities are also included any rental offset. In all cases, there is no charge back to the agencies for these supplies. To complete the rental offset, post will process a journal voucher to the allotment that funded these items (e.g., to 7906 for SRM supplies used, or 1901.0-ICASS for contract labor).
OPTION 2: (Landlord is responsible for and completes all maintenance and repair requirements)
b. Sustainment, Restoration, and Modernization (SRM) includes activities to preserve, maintain or restore a property so it can be used for its intended purpose. At this post, all residential SRM requirements are a landlord responsibility and are communicated to the landlord for prompt completion. There are no SRM costs included in the budget and no costs charged to the tenant agencies.
OPTION 3: (Landlord is responsible for specific, limited maintenance requirements outlined in the lease agreement; routine maintenance and repair is a tenant responsibility. Post has no in-house residential maintenance staff and contracts out all M&R requirements, direct charging the tenant agency)
b. Sustainment, Restoration, and Modernization (SRM) includes activities to preserve, maintain or restore a property so it can be used for its intended purpose (e.g., caulking, repairing broken water pipes or household fixtures, etc.). Under post lease agreements, landlords are not responsible for SRM and these requirements are a tenant responsibility. This post has no residential maintenance staff and all sustainment tasks are contracted out and direct charged to the tenant agency.
For restoration projects that are the responsibility of the landlord, if the landlord is unable or unwilling to do the work, the SRPM will undertake to complete the task and calculate a rental offset to cover all related costs. The cost of any OBO/MCS-funded SRM supplies used to complete this work is included any rental offset; there is no charge back to the agency for these supplies. To complete the rental offset, post will process a journal voucher to the allotment that funded these items (e.g., to 7906 for SRM supplies used, or the tenant agency for contract labor).
OPTION 4: (Landlords are responsible for specific, limited maintenance requirements outlined in the lease agreement; routine maintenance and repair is a tenant responsibility. Out-sourcing is not an option, so all routine maintenance and repair is performed by in-house staff)
b. Sustainment, Restoration, and Modernization (SRM) includes activities to preserve, maintain or restore a property so it can be used for its intended purpose (e.g., caulking, repairing broken water pipes or household fixtures, etc.). Under post lease agreements, landlords are not responsible for sustainment and these requirements are a tenant responsibility. The Facilities Management staff provides routine residential sustainment services for all agencies in the housing pool and your subscription to 7810/7850-Residential Building Operations covers these costs. sustainment supplies required for these activities are funded by OBO/MCS with no charge back to the tenant agencies.
For restoration projects that are the responsibility of the landlord, if the landlord is unable or unwilling to do the work, the SRPM will undertake to complete the task and calculate a rental offset to cover all related costs. The offset will be equal to the value of the SRM supplies issued; no costs related to in-house labor are included. To complete the rental offset, post will process a journal voucher to the allotment that funded these items (e.g., to 7906 for SRM supplies).
10. DECOMMISSIONING COSTS
When a property must be dropped from the post housing pool, the process for returning the property to the landlord is called “decommissioning.” The SRPM attempts to negotiate leases with no costs related to decommissioning, but if that is not possible, there may be costs associated with the removal of safety or security upgrades, appliances or other equipment.
For posts that meet the 75 percent rule, decommissioning costs may be funded in ICASS.
However, the last departing agency will provide a fund cite equivalent to the average make-ready cost reported on the ICASS Datasheet; these funds will be used to offset any costs related to the decommissioning of the property. If the total decommissioning costs are higher than this amount, ICASS will fund the difference. If they are lower, the agency will be charged only the actual cost of the decommissioning. This process is intended to ensure that all agencies pay their fair share of this aspect of the post housing program.
Posts that do not meet the 75 percent rule charge the decommissioning costs to the outgoing tenant agency.
Decommissioning costs related to unique properties, dedicated residences, group houses, etc., are charged to the sponsoring agency as outlined in 6 FAH-5 H-523 paragraph d.
6 FAH-5 Exhibit H-524
Post Make-Ready Policy
(CT:ICASS-117; 10-23-2023)
(Applies to participating ICASS agencies)
This Post Make-Ready Policy template must be tailored to reflect post’s circumstances. In all paragraphs with “Alternate Language,” post must select the language or option that represents local conditions. The final post policy should have no RED italicized text and all comments shown in italics should be deleted.
MANAGEMENT POLICY
SUBJECT: Residential Make-Ready Policy for Mission XXXXX
1. PURPOSE
This document outlines the policy and guidance for post’s residential make-ready process in accordance with 6 FAH-5 H-524 – Residential Make-Ready.
2. GOAL
The goal of this policy is to ensure all agencies are familiar with the activities covered in the make-ready process and separate those actions from other residential property requirements (e.g., sustainment, restoration, and modernization [SRM]). Understanding this policy will ensure agencies are prepared to fund the estimated costs of the make-ready process for their employees.
3. SCOPE
This policy applies to all agencies that participate in the post housing program, including tenants of both Government-owned and leased residential properties. Make-ready costs are charged to the outgoing tenant agency and agencies are expected to plan for and promptly provide funding for the estimated costs for make-ready requirements so that a property can be quickly prepared for the next occupant. Agencies will be notified six months prior to the projected departure of an employee that these funds will be required. GSO will conduct a pre-departure inspection of each property to determine if there are any damages beyond normal wear and tear that need to be charged to the tenant; the agency will be charged for such repairs if they are not paid by the tenant.
4. WHAT IS MAKE-READY?
Occupant turnover starts the make-ready process in the consolidated housing pool. Make-ready is the process to prepare a property for occupancy between tenants, whether it is a government-owned, capital lease or operating lease property. Make-ready requirements typically include:
· Interior painting;
· General cleaning (e.g., floors, closets, windows, etc.);
· Garden clean-up/grounds care/gutter cleaning (during period after tenant departure and prior to assignment to new tenant);
· Changing or re-keying door locks as determined by the RSO;
· POSHO verification that requirements of 15 FAM 252.5 are still met; and
· RSO verification that the property still meets relevant security requirements (see 15 FAM 252.4).
Post’s estimated average make-ready cost is $X,XXX and is recorded on post's Datasheet on the ICASS website, reviewed and updated every two years. It is post policy that all properties that were occupied by employees with pets must have the furniture professionally cleaned at the personal expense of the tenant. The tenant is responsible for any pet-related damages.
SRM requirements that were not requested during a tenant’s occupancy are often identified during the make-ready process. These SRM requirements will be addressed at the same time as make-ready activities are underway and will remain the responsibility of the outgoing tenant agency (see paragraph 8).
5. WHO FUNDS MAKE-READY COSTS? (Select ONE option and edit as needed)
OPTION 1: (Post has in-house staff to perform most make-ready requirements but augments with contract labor during the peak turnover season)
Make-ready costs are charged to the outgoing tenant agency. This post uses primarily in-house staff for this requirement, augmented by contracted labor when necessary. All costs are budgeted in a special make-ready sub-cost center in ICASS (7850-0799-Make-Ready), and the workload count is the total square meters made ready for each agency in the prior fiscal year (from May 1 through April 30). Any bulk painting supplies used in the make-ready process are funded by OBO/MCS and are not charged to the tenant agency. Upon vacating a property, agencies that abolish a position or withdraw from post are still required to fund the cost of make-ready in preparation for the next tenant.
OPTION 2: (Post has in-house staff to perform most make-ready activities, but always out-sources part of the requirements; this example outsources cleaning services)
Make-ready costs are charged to the outgoing tenant agency. Post primarily uses in-house staff for this requirement, but always contracts out the final cleaning requirements. All costs (i.e., primarily LE staff time), except costs for cleaning, are budgeted in a special make-ready sub-cost center (7850-0799-Make-Ready) and the workload count is the total square meters made ready for each agency in the prior fiscal year (from May 1 through April 30). Separately, agencies are direct-charged the total cleaning costs for the property. Upon vacating a property, agencies that abolish a position or withdraw from post are still required to fund the cost of make-ready, including the cleaning costs, in preparation for the next tenant.
OPTION 3: (Post has no in-house residential maintenance staff; all make-ready requirements are outsourced and direct charged to the outgoing tenant agency)
Post does not have in-house staff to perform residential make-ready and all requirements are contracted out and direct charged to the outgoing tenant agency. Upon vacating a property, agencies that abolish a position or withdraw from post are still required to fund the cost of make-ready in preparation for the next tenant.
OPTION 4: (Landlord performs all make-ready requirements)
Make-ready costs at this post are funded by the landlord; there are no related costs charged to the outgoing tenant agency.
6. SECURITY REQUIREMENTS (If the RSO does not require key changes between tenants, delete the opening sentence)
The RSO requires locks/keys to be changed between tenants and the related cost is charged to DS. The cost for security equipment that requires maintenance (e.g., repainting of grills, repair/replacement of intercom/entry equipment, etc.) is funded by DS, regardless of the occupant agency.
7. MAINTAINING “MAKE-READY CONDITIONS” IN VACANT RESIDENCES
The tenant agency remains responsible for an assigned property after the departure of its employee and until its assignment to a new employee/agency, up to a maximum of ninety days. During this period of vacancy, the agency is responsible for all costs (e.g., rent, utilities, periodic contracts, grounds care, pool maintenance, etc.). If no assignment is made within 90 days, the SRPM will submit a justification for retention of the property and request ICASS Council concurrence. With the Council’s concurrence, the SRPM will submit the retention request justification to OBO and request authorization to retain the property. If approved, all costs related to this property will be charged to ICASS until the property is assigned to a new tenant.
If a property that has been made ready by the outgoing tenant agency is temporarily assigned as transient housing, all costs for the property (e.g., rent, utilities, etc.) are paid by the assigned temporary agency (see 15 FAM 164) during the period of occupancy. Upon vacating the property, the temporary agency will be responsible for any required cleaning to prepare the property for its permanent assigned occupant.
8. SUSTAINMENT, RESTORATION, AND MODERNIZATION (SRM)REQUIREMENTS (Select ONE option and edit as needed)
OPTION 1: (Landlord is responsible for maintenance requirements but post sometimes must complete the work with in-house staff or a contractor and process a rental offset)
The Facilities Section will use the make-ready period to assess any required SRM activities. At this post, landlords are responsible for SRM activities as outlined in the lease agreement. The SRPM will communicate all SRM requirements to the landlord to ensure timely completion during the make-ready period. When the landlord is unable or unwilling to do this work, the SRPM will undertake to complete the work and calculate a rental offset to cover all necessary costs.
Depending on the task involved, the work may be completed by a contractor and that cost will be included in the rental offset. If the work is completed with in-house staff, the related costs may not be charged back to the landlord; agencies’ subscription to 7850-Residential Building Operations covers these labor costs. If post needs to augment in-house staff with contracted labor to perform routine SRM tasks, those costs are budgeted in the Building Operations cost center; if contract labor is used to complete SRM work that is a landlord responsibility, those contract costs should be included the rental offset. The value of all OBO/MCS-funded SRM supplies used by in-house or contract staff to complete these SRM activities are included in the rental offset. In all cases, there is no charge back to the agencies for these supplies. After deducting these costs from the rent, post will process a journal voucher to the account that funded the cost (e.g., 7906 for SRM supplies, or to 1901.0-ICASS for contract labor costs).
OPTION 2: (Landlord is responsible for and completes all maintenance and repair requirements)
The Facilities Section will use the period a property is in the make-ready process to assess any required SRM activities. At this post, all residential SRM requirements are a landlord responsibility and are communicated to the landlord for prompt completion. There are no SRM costs included in the budget and no costs charged to the tenant agencies.
OPTION 3: (Landlord is responsible for specific, limited maintenance requirements outlined in the lease agreement; routine maintenance and repair is a tenant responsibility. Post has no in-house residential maintenance staff and contracts out all M&R requirements, direct charging the tenant agency)
The Facilities Section will use the make-ready period to assess any required SRM activities. Under post lease agreements, landlords are not responsible for SRM and these requirements are a tenant responsibility. This post has no residential maintenance staff and all sustainment tasks are contracted out with labor expenses direct charged to the tenant agency and OBO/MCS funding the cost of supplies.
For restoration projects that are the responsibility of the landlord, if the landlord is unable or unwilling to do the work, the SRPM will undertake to complete the task and calculate a rental offset to cover all related costs. The cost of any OBO/MCS-funded SRM supplies used to complete this work is included any rental offset; there is no charge back to the agency for these supplies. To complete the rental offset, post will process a journal voucher to the allotment that funded these items (e.g., to 7906 for SRM supplies used and the tenant agency for contract labor).
OPTION 4: (Landlords are responsible for specific, limited maintenance requirements outlined in the lease agreement; routine maintenance and repair is a tenant responsibility. Out-sourcing is not an option, so all routine maintenance and repair is performed by in-house staff)
The Facilities Section will use the make-ready period to assess any required SRM activities. Under post lease agreements, landlords are not responsible for SRM and these requirements are a tenant responsibility. The Facilities Management staff provides routine residential sustainment services for all agencies in the housing pool and your subscription to 7810/7850-Residential Building Operations covers these costs. sustainment supplies required for these activities are funded by OBO/MCS with no charge back to the tenant agencies.
For restoration projects that are the responsibility of the landlord, if the landlord is unable or unwilling to do the work, the SRPM will undertake to complete the task and calculate a rental offset to cover all related costs. The offset will be equal to the value of the SRM supplies issued. To complete the rental offset, post will process a journal voucher to the allotment that funded these items (e.g., to 7906 for SRM supplies).
9. CHANGING HOUSING ASSIGNMENTS
Housing assignments may be changed in limited circumstances and often create additional make-ready requirements. We will charge make-ready costs according to the following guidance:
a. Moves for Personal Preference: If the IAHB approves the move of a tenant for personal preference, any required make-ready of the property being vacated is the personal expense of the employee (typically it is cleaning costs). The cost of moving the personal effects of the employee to the new residence is a direct charge to the employee.
b. Moves Directed by the IAHB: The IAHB may direct the move of a family in over-sized housing to accommodate the arrival of a large family. The cost of make-ready for the property being vacated and the cost of moving the employees’ household effects are charged to the current tenant agency.
c. Moves to a New Residential Compound: If a new residential compound is acquired, the cost of moving employees’ household effects from the current property to the new property is funded by the employing agency. The cost of moving all furniture and appliance pool (FAP) property is funded by ICASS. Each agency is responsible for their respective lease termination costs associated with the properties being vacated.
d. Moves for Cause: For moves approved for genuine cause (e.g., security issues, landlord issues, documented medical reasons, etc.) and the lease is being dropped, post follows the procedures for decommissioning a property outlined in 6 FAH-5 H-523. The cost of moving the personal effects of the employee is charged to the sponsoring agency; the cost of moving all FAP items is funded by ICASS.