OPM designates, within nonforeign areas, areas where agencies pay employees a COLA by virtue of living costs that are substantially higher than those in the Washington, DC, area. In establishing the boundaries of COLA areas, OPM considers—
The existence of a well-defined economic community,
The availability of consumer goods and services,
The concentration of Federal employees covered by this subpart, and
Unique circumstances related to a specific location.
If a department or agency wants OPM to consider establishing or revising the definition of a COLA area, the head of the department or agency or his or her designee must submit a request in writing to OPM.
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