1. Purpose. This chapter provides general information applicable to all Fee-for-Service components.
2. Description. Fee-for-Service components are businesslike activities that operate within the WCF, providing a continuous cycle of client services for fees established in a rate-setting process and, in some cases, with funding provided by appropriated funds. Chapters 5–11 of this handbook describe the current Fee-for-Service components of the USGS Working Capital Fund.
A. A Fee-for-Service component works primarily on a reimbursement basis. The component must conduct Fee-for-Service activities, for which the component is reimbursed by its customers. It must have clearly defined user fees by which it bills and collects all costs incurred to produce the agreed product.
B. Fees should be sufficient to recover the full cost of goods, services, and resources provided by the USGS. When the USGS sells goods and services under businesslike conditions, user fees should be based on market prices. Market price is the price for goods and services that is based on competition in open market and that creates neither a shortage nor a surplus of the goods or services. When a substantial competitive demand exists for goods or services, the market prices will be determined by using commercial practices, such as—
(1). Competitive bidding.
(2). Referring to prevailing prices in competitive markets for goods, resources, or services that are the same or similar to those provided by the Government, with adjustments that reflect demand, level of service, and quality of the goods or services.
In the absence of substantial competitive demand, market price will be determined by taking into account the prevailing prices for goods or services that are the same or substantially similar to those provided by the Government and then adjusting the supply made available and/or the price of the goods or service so that there will be neither a shortage nor a surplus.
In accordance with Comptroller General decision B-271894, Reimbursements received from private sector participants cannot be deposited into the WCF. If deposits are received from the private sector, the deposits must be returned to the General Fund.
C. Approving Officials are responsible for ensuring that appropriate cost assignment methods and FFS cost classification structures necessary to determine the full cost of outputs are used. Full costs are the costs of resources incurred by the component that directly or indirectly contribute to the outputs; full costs will be determined or estimated from the best available records of the USGS.
(1). Direct costs are costs that can be specifically identified with an output.
(2). Indirect costs are costs of resources that are jointly or commonly used to produce two or more outputs but are not specifically identifiable with any particular output. Indirect costs typically require the use of a consistent allocation methodology to assign costs to outputs.
(3).Full costs include, but are not limited to, an appropriate share of the following:
(A). Direct and indirect personnel costs, including salaries and benefits.
(B). Physical overhead, consulting, and other indirect costs, including material and supply costs; utilities; travel; rents on land, buildings, and equipment; and depreciation of structures and equipment.
(C). Management and supervisory costs.
(D). Costs of collection, research, establishment of standards, and regulations.
D. Whenever possible, charges should be set as fees rather than fixed dollar amounts to adjust for changes in costs to the Government or changes in market prices of goods or services provided.
E. Approving Officials are required to review user fees biennially in accordance with OMB Circular A–25, Appendix A. Also, Approving Officials are encouraged to annually review and monitor methodology for establishing prices, determining the actual cost of producing outputs, and comparing costs with amounts collected from customers. Copies of this documentation should be retained at the Approving Official level.
F. The WCF will retain ownership of equipment purchased by the Fee-for-Service component(s).
(1). Equipment sales proceeds - Proceeds from the sale of WCF equipment will remain in the WCF. The sales proceeds will be designated for new or replacement equipment (see SM chapter 338.9 for additional information).
(2). Replacement funds limitations - Fee-for-Service components equipment replacement funds that will accumulate balances in excess of $10,000 over two fiscal years must establish an Investment Plan in the WCF Equipment Replacement Investment component (see SM 335.6, sec. 6.A.5).
G. Cost Chare for DOI customers is exempt for Fee-for-Service components. It is required that fees for a Fee-for Service activity are consistently applied to all like customers (DOI customers have the same fee structure as all Federal customers).
4. Interagency Agreements. When providing services to other Federal agencies, an interagency agreement should be prepared and signed by both parties before work is performed. Funds received from other Federal agencies must remain in a non-WCF allocation organization.
5. Billings. Each Fee-for-Service component is responsible for maintaining and publishing client fees, billing terms, and billing frequency. FFS internal vouchers (IVs) will be used for billing USGS customers. The IV document charges the USGS customer and creates funding for the WCF component. See Appendix E - Instructions for Investment Components for detailed instructions.
6. Planning and Budgeting. Annually, Approving Officials must forecast new and changing customer requirements to plan for new services, determine when existing services need to be updated, and project when existing services can no longer be provided at competitive rates. By using forecasts, Approving Officials will estimate resource requirements and prepare budgets. This process will be coordinated by the Office of Budget and Performance and the servicing Fiscal Services office. Approving Officials are responsible for two planning documents—the WCF Annual Operating Plan and the WCF Annual Out-Year Plan—and for one budgetary support document—the Schedule of Open Orders and Accumulated Equipment Replacement Funds.