Certified Government Travel Professional » Fly America act http://cgtp.net Fri, 06 Feb 2015 11:16:13 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.3 The Sabre Global Distribution System within our e-Travel System http://cgtp.net/the-sabre-global-distribution-system-within-our-e-travel-system/ http://cgtp.net/the-sabre-global-distribution-system-within-our-e-travel-system/#comments Wed, 03 Dec 2014 16:16:18 +0000 http://cgtp.net/main/?p=993 Our E Travel System uses the Sabre Global Distribution System as an integral part of the overall travel system. The GDS is a legacy data based system that is used by all travel suppliers such as airlines, hotels and rental car vendors to automatically book travel. The GDS is separate from the commercial internet booking sites, although some booking sites will use GDS information to offer information to their users and to assist with bookings.

Not all airlines and hotels use a Global Distribution System as the GDS charges travel vendors to display inventories. If a supplier uses a GDS, it is the airline carrier, hotel, or rental car company’s responsibility to keep the GDS updated with current information. In some instances some small airlines do not use the GDS and therefore, the TMC must be contacted directly either by phone or by requesting assistance on line by entering a comment. The TMC will then contact the Non-GDS vendor to work with the traveler to make their reservations.

With domestic and foreign (non-complex) travel it is a requirement that our customers use the online booking tool within our eTS to book their reservations. However with complex foreign travel we encourage our customers to book directly through the TMC via phone. With complex foreign travel, the TMC has knowledge of and can offer advice about Visa requirements, the fly America Act, or if foreign carriers and flights are limited or unavailable in the GDS and will require TMC assistance.

by Brian Shears

]]> http://cgtp.net/the-sabre-global-distribution-system-within-our-e-travel-system/feed/ 0 City Pair Program http://cgtp.net/city-pair-program-4/ http://cgtp.net/city-pair-program-4/#comments Thu, 18 Sep 2014 15:15:15 +0000 http://cgtp.net/main/?p=774 The GSA City Pair program has helped save millions of taxpayer dollars since it’s inception in the early 80’s.   This program allows government employees to travel on negotiated flat airfares in most markets with up to 70% discount on refundable airfares.  Government contractors, however, are not allowed to participate in the CPP with GSA, but can negotiate with airlines on their own.

Working for an FFRDC proves to show significant differences between GSA CPP rates and corporate rates.  As airlines continue to struggle to make profit in today’s world due to fuel hikes, competition, union employees, airport fees, mergers, etc., corporate contracts have been revamped to tiered programs which provide small discounts on published airfares with heavy restrictions.

These tiered programs are restrictive and cumbersome to manage hampering the many cost savings initiatives that are incorporated into travel programs. Some of these cost saving initiatives are impeded by drastic changes including additional baggage fees, blackout dates, preferred seating fees, on board amenities, and increased ticketing change fees.  In contrast, the CPP offers no advance purchase requirement, no blackout dates, all tickets are fully refundable or other penalties associated with the airfare.

While many cost saving initiatives are incorporated into travel programs, we also struggle with rising costs of purchasing travel under the Fly America Act.   In most cases with codesharing the foreign carrier offers a significantly lower airfare for the same trip.   The Fly America Act requires all ticket purchases to be issued on the American carrier ticket stock which means we purchase the higher airfare.  This appears, to employees and government sponsors, that our cost savings measures are lacking.

After all, we are also using taxpayer dollars to purchase travel.

by Stefanie Tretola

 

 

]]> http://cgtp.net/city-pair-program-4/feed/ 0 Creating a Travel Policy for Government Contractors http://cgtp.net/creating-a-travel-policy-for-government-contractors/ http://cgtp.net/creating-a-travel-policy-for-government-contractors/#comments Fri, 18 Jul 2014 02:15:19 +0000 http://cgtp.net/main/?p=636 US Government business is often very different from commercial business, largely due to the extensive rules in place to ensure fairness in the award of contracts that use public funds.  Not only is the Government the customer it also acts at the overseer of contracts.

Detailed rules on reimbursement are designed to prevent the taxpayer from paying for costs that are against public policy.

For Government Contractors the creation of a Travel Policy is not only a resource for cost effective travel it also incorporates laws that must be followed in order to perform travel for the Federal Government.  Two of the most important documents that must be included in the Travel Policy are the Federal Acquisition Regulation (FAR) and Federal Travel Regulation (FTR).  These documents contain the basic framework contractors need to follow.

The following document is an example of a Travel Policy for Government Contractors.  Information from the FAR and FTR are highlighted in the document in addition to other government documents/ web pages used in the creation of this policy example:

Government Contractor Travel Policy

This document includes broad United States Federal Travel policy guidelines necessary to comply with Federal regulations. This provides the employee with helpful data and resources in order to ensure travel costs are allocated in a responsible manner.  This document may be more restrictive than the company’s Travel and Entertainment Policy; and while it covers the most important and most frequented applications of the governing Federal Travel Regulations, please defer to your travel counselor when arranging travel for any nuances or changes to policies and procedures.

Federal Travel Regulation (FTR) Compliance
General Requirement of the Fly America Act

This Act requires that foreign air travel funded with Federal dollars be performed on US flag air carriers or on foreign air carriers that code share with a US flag carrier. If there is no U.S. carrier to your destination, you must travel on aU.S. carrier as far as possible. Additional cost for U.S. carrier flights is NOT sufficient justification to fly on foreign carriers.

Below is a list of the US flag air carriers:

  • Alaska Airlines (AS)
  • American Airlines (AA)
  • Continental Airlines (CO)
  • Northwest Airlines (NW)
  • United Airlines (UA)
  • US Airways (US)
  • Delta Airlines (DL)

Additional information on airline code share alliances is available on:

Reminder – A code share flight must be documented with the U.S. flag carrier airline code.

For Domestic Travel and Travel to Canada:

  • Airtran Airways (FL)
  • Alaska Airlines (AS)
  • America West Airlines (HP)
  • American Airlines (AA)
  • American Trans Air (TZ)
  • Continental Airlines (CO)
  • Delta Airlines (DL)
  • Frontier Airlines (F9)
  • Hawaiian Airlines (HA)
  • Jet Blue (B6)
  • Midwest Express (YX)
  • Northwest Airlines (NW)
  • Southwest Airlines (WN)
  • Spirit Airlines (NK)
  • United Airlines (UA)
  • US Airways (US)
  • Virgin America (VX)

Note:  *Air Canada is NOT a US flag air carrier*.

Exceptions

There are acceptable reasons to not use a US flag carrier.  These exceptions are listed below:

  • a U.S. flag carrier does not provide service on a particular leg of your trip
  • there is no U.S. flag carrier available for a particular leg
  • the use of a U.S. carrier will unreasonably delay your travel time by three hours
  • travel costs are reimbursed in full by a third party, such as a foreign government or international agency
  • you are involuntarily rerouted
  • medical or safety reasons

Booking Travel

The company’s preferred travel agency, XXX, have agents that are well versed in the Fly America Act. If you advise them that your trip is federally funded, they will provide flight options that comply with the Act and will provide certification of that compliance for you.

 

 

Per Diem Policy             Employees will be reimbursed on an actual expense basis. However, to ensure reasonable reimbursement per diems are used, the Accounts Payable accountant will refer to government rates on the http://www.gsa.gov website
Allowable cost Allowable cost as per Federal regulations are defined as follows:•           Must be a reasonable cost

•           Must be allocable to the sponsored program

•           Must be treated consistently, through the application of generally accepted accounting principals

•           Must be within the limitations specifically defined in the particular contract or agreement, in terms of the type of cost item and dollar amount charged

Accordingly, cost may be billed to a United States Government (USG) program for example, only if they meet all of the above requirements.
Unallowable Cost All costs which do not fulfill the conditions in allowable cost above shall be treated as unallowable for the purposes of directly or indirectly (as part of the rates) billable to a UScontract.Examples of unallowable expenses would include :

•         Alcoholic Beverages

•           Shoe shine or Dry Cleaning (except for extended in excess of six (6) consecutive days)

•         Movies or personal entertainment

•         Airline or Travel Lounge Clubs

•         Donations or Contributions

•         Personal living expenses

•           Tickets to theatres, movies, sports events, social affairs e.g. golf outing, etc.

Exceptions may be made the company may, for business reasons, reimburse an employee for these expenses.

 Business Meals and Entertainment
General Purpose This serves to communicate the company’s policy on utilization of and reimbursement of cost for business related meals and entertainment. Business related meals and entertainment assist in meeting organizational goals, but must be used productively and with efficiency of cost expenditure, while maintaining a commitment to standards of conduct business ethics as defined by the federal government.
Application This policy amendment covers all company activities, locations, employees, consultants, and contractors within the Business Group, particularly those individuals that may entertain on behalf of the Company.

Business meal expense reimbursements outside of normal travel expenses are only authorized for those employees of the company who fall within executive leadership, own responsibility for a billable contract or P&L account, or sit at the head of a professional services department. The above management personnel may delegate this authority to only those individuals given the responsibility, by the nature of their job function, to strategically drive the business through new customer generation and/or in the preservation of existing customer relationships. (E.g. Business Development, Operations, and Project Management)

Approval outside the above mentioned parameters may be authorized by a VP, or other member of executive management, or can be delegated to the director

Level at the discretion of that director’s VP on a case by case basis.

As a member of an organization which emphasizes the value of integrity, each employee must pledge to uphold the Company’s reputation in keeping compliant with all applicable federal laws regulating procurement with the USgovernment. As a component of our company’s standardization in compliance, employees are prohibited from offering or providing, or being perceived to offer or provide, entertainment to government officials or employees and employees of government contractors or subcontractors. Employees finding themselves in a position to question the appropriateness of their actions, in providing entertainment to any individual, must seek the advice of the Company’s Compliance department and/or the Company’s legal counsel, prior to taking any action. Employees should refer to the Company’s Code of Business Ethics and Conduct for additional detail about contacting the Compliance department.
Policy On those occasions where, in the interest of business, facilitation of a meal and/or some form of entertainment is required, The company will cover costs by allowing for the reimbursement of business meals or entertainment as they relate to fair and lawful expenses that are solely in pursuit of profitability for the Company. The Company expressly forbids any business meal or entertainment event sponsored by, or with the knowledge of, an employee that is, or is perceived to be, with the intent of gaining influence in procurement of a government contract.
 

Allowable Costs Provisions     

 Business Meals: Those meals taken for obvious business purpose and where business is the primary reason for the meal as it falls before, during, or after a business meeting with partners, clients, potential clients, or co-workers where discussion supports a progressive advantage to the company. Excluding all government officials, or individuals representing a government agency, and with no suggestion, or appearance of attempting to influence those individuals involved in the contract decision making process.

Entertainment: Expenses incurred in conjunction with a Company social event where participants include a non-governmental company partner, client, prospective client, or employee, where the main purpose of the event is business, and where such discussion takes place prior to, during or after the event. The entertainment of such partners, clients, or employees is dependent upon the promotion of a business relationship that is advantageous for the company. Entertainment is to include such items as light refreshments, space rental cost, flowers, decoration or the like.

Reasonableness: Employees are to use sound judgment in determining what qualifies as a sensible or not excessive for entertainment, whether it is in the extent or the disposition of cost.

 

 

 

 

Expense Guidelines

Documentation to support actual costs expended may be made in accordance with Company’s established practice. The United States Federal Government provides a structured definition around allowable cost on billable expenditures, and any expenses not meeting the government’s standards for allowed cost will become the responsibility of the company.  Please see FAR 3.1205-46 for additional information.    http://www.arnet.gov/far/current/html/Subpart%2031_2.html#wp1095619

Submitting Reimbursements

 

 Business meal and entertainment expense reimbursement requests are to be process and submitted as follow:

 

  1. Each relative expense is to be itemized in sequential order by date, on the Expense Statement form.  (When an online tool is available this should be used in lieu of the expense form)
    1. The form must be completed in full, with the appropriate charge codes
    2. The form must be signed by the individual submitting the request.
    3. The form requires the approval signatures from the next level manager and/or department VP.

 

  1. Each receipt included in the expense is to be taped to a standard 8.5 x 11” sheet of paper, depending on the size multiple receipts can be applied to one sheet, in order to promote ease of scanning the document.  The sheets of paper with attached receipts are to be placed behind the Expense Statement Form in sequential order by date.

 

  1. A written statement of purpose is to be included for each individual event, and attached behind the receipts providing:
    1. A brief summary of the business purpose
    2. Who attended the event by organization/employer (includes last/first and business title)
    3. The date of the expense, name and location (City, State/City, Country) of the place where the event took place.
  1. Those employees requiring pre-approval for hosting an event on behalf of the Company are to attach as the last page, written authorization from the member of the executive management, a VP or their designee.

 

  1. A copy of the request should be kept by the employee for the employees personal files; all above documentation is to be submitted to Accounts Payable as designated by the Finance department.

 
Responsibility and Administration Compliance and administration of this policy is the responsibility of every employee.  The interpretation of this policy shall be the responsibility of the Vice President of Human Resources.  The Vice President of Human Resources, or their designee, shall be available for the consultation with supervisors and managers when and where appropriate.The policy should be read in conjunction with all applicable policies of the company, including and not limited to, the company’s Code of Business Ethics and Conduct Policy.

 

          Federal Government Travel related Web sites

1.      GSA – U.S. General Services Administration Site for an overview of the FTR

http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_OVERVIEW&contentId=14161

2.      CAS-Cost Accounting Standards

http://fast.faa.gov/archive/v1198/pguide/98-30C14.htm

3.      FTR-Federal Travel Regulation per diem rates

http://perdiem.hqda.pentagon.mil/perdiem/perdiemrates.html

4.      Standard Regulations- State Department foreign per diem rates

http://aoprals.state.gov/web920/per_diem.asp

5.               FAR 3.1205-46-this specific section defines allowable travel costs:

http://www.arnet.gov/far/current/html/Subpart%2031_2.html#wp1095619

Important Definitions Associated with Government Travel 

1. DCAA- Defense Contract Audit Agency.

The DCAA is the audit agency of the Defense Department. All

Costs incurred by Agility DGS are subject to audit by the DCAA.

2. CAS- Cost Accounting Standards.

The CAS contains various accounting standards that were designed to provide uniformity and consistency in the measurement, assignment and allocation of costs to government contracts.

3. Fly America Act

An Act instituted by the United States Government requiring that all travelers flying on government business, funded by the US government, must travel on a US flag carrier to the farthest possible point; regardless if a non-US carrier can be confirmed for a lower price.

4. GTR- Government Travel Regulations.

This term shall refer collectively to the following three separate Government travel regulations.

a.       FTR-Federal Travel Regulations-These regulations implements statutory requirements for travel for those authorized to travel with Federal funds.

b.      JTR-Joint Travel Regulations, volume 2, DOD Civilian Personnel.

Prescribed by the Department of Defense and governs travel in Alaska, Hawaii and outlying areas of theUnited States to include, but not limited to, Guam, Puerto Rico and American Samoa.

  1. Standardized Regulations (Government Civilians, Foreign Areas), Section 925, “Maximum Travel Per Diem Allowance for Foreign Areas” prescribed by the Department of State.

By: Maruca Malloy

 

 

 

 

 

]]> http://cgtp.net/creating-a-travel-policy-for-government-contractors/feed/ 0 Fly America Act http://cgtp.net/fly-america-act/ http://cgtp.net/fly-america-act/#comments Wed, 21 May 2014 04:16:03 +0000 http://cgtp.net/main/?p=671 The Fly America Act was first approved by congress with the Air Transporation Fair Competitive Practice act of 1974. In 1981 it was amended to include the verbiage requiring Federal Employees and their dependents, consultants, contractors, grantees and others performing United States Government financed foreign air travel to travel by US flag carriers.

In April 2007 the US-EU Open Skies Agreement was signed this agreement amended the earlier Fly America Act to provide airlines of the European Community or its Member States the right to transport passengers and cargo on scheduled or charter flights for US Government transportation. In October of 2008 the United States Government signed an Open skies agreement with Australia and Switzerland.   These agreements are only applicable if a “city-pair” contract fare does not exist in the market. Open Sky agreements do not apply to travel funded by the Department of Defense.

The Department of Defense continues to follow the requirements of the Act were all foreign air travel funded with Department of Defense dollars is performed on US flag air carriers or on the foreign air carriers that code share with the US flag carrier. If there is no US carrier to a particular destination the traveler must travel on a US carrier to the farthest point possible. Additional cost for US carrier flights is not sufficient justification to fly on foreign carriers.

Below is a list of the US flag air carriers:

  • Alaska Airlines (AS)
  • American Airlines (AA)
  • Continental Airlines (CO)
  • Northwest Airlines (NW)
  • United Airlines   (UA)
  • US Airways (US)
  • Delta Airlines (DL)

Additional information on airline code share alliances is available on:

  • StarAlliance.com with 21 partners including UA/US
  • Oneworld.com with 10 partners including AA
  • SkyTeam.com with 11 partners including DL/NW

A code share flight must be documented with the US flag carrier code.

There are acceptable reasons to not use a US flag carrier. These exceptions are listed below:

  • A US flag carrier does not provide service on a particular leg of your trip
  • There is no US flag carrier available for a particular leg
  • The use of a US carrier will unreasonably delay your travel time by three hours or more
  • Travel costs are reimbursed in full by a third party, such as a foreign government or international agency
  • The traveler is involuntarily rerouted
  • Medical or safety reasons.

By: Maruca Malloy

]]> http://cgtp.net/fly-america-act/feed/ 0 Code Share “A Win Win for All” http://cgtp.net/code-share-%e2%80%9ca-win-win-for-all/ http://cgtp.net/code-share-%e2%80%9ca-win-win-for-all/#comments Fri, 25 Apr 2014 00:16:04 +0000 http://cgtp.net/main/?p=282 The Fly America Act as you know it today provides excellent opportunities for all parties involved.  The program provides excellent advantages for the Traveler, the TMC, and the Airlines. 

Code share when it began did have its challenges, travelers were unsure which ticket counter to check in, what airline they were actually flying on, which baggage claim was the appropriate one and whom do they speak to in the event of problem that needed resolution as a result of their flight.  

Code share today represents positive changes to all involved in the process including the actual booking in ETS or DTS.    Government travelers are permitted to use the code share carriers provided the ticket is issued with the U.S. Flag Carrier code and U.S. Carrier flight number. 

An example is as follows, a government traveler needs to fly from Washington, DC to Frankfurt Germany.  If they code share is not allowed the traveler may have a choice of three United Airlines flights, however with code share and the partnership with Lufthansa the traveler now has a selection of five flight from Washington, DC Dulles Airport all being nonstop.

Win/Win for all is simple the traveler has great choice of flights and times.  The airline gains additional revenue with the expansion of their network through the alliance.  Lastly, savvy travel agencies that can adjust market share to particular carrier’s especially foreign carriers have the opportunity to negotiate better incentives for their clients and incentives for the travel agency as well.

By Rick Singer

]]> http://cgtp.net/code-share-%e2%80%9ca-win-win-for-all/feed/ 0 Fly America Act 2009 http://cgtp.net/fly-america-act-2009/ http://cgtp.net/fly-america-act-2009/#comments Wed, 02 Apr 2014 17:18:23 +0000 http://cgtp.net/main/?p=650 The Fly America Act was first approved by congress with the Air Transporation Fair Competitive Practice act of 1974.  In 1981 it was amended to include the verbiage requiring Federal Employees and their dependents, consultants, contractors, grantees and others performing United States Government financed foreign air travel to travel by US flag carriers.

In April 2007 the US-EU Open Skies Agreement was signed this agreement amended the earlier Fly America Act to provide airlines of the European Community or its Member States the right to transport passengers and cargo on scheduled or charter flights for US Government  transportation.  In October of 2008 the United States Government signed an Open skies agreement with Australia and Switzerland.   These agreements are only applicable if a “city-pair” contract fare does not exist in the market.  Open Sky agreements do not apply to travel funded by the Department of Defense.

The Department of Defense continues to follow the requirements of the Act were all foreign air travel funded with Department of Defense dollars is performed on US flag air carriers or on the foreign air carriers that code share with the US flag carrier.  If there is no US carrier to a particular destination the traveler must travel on a US carrier to the farthest point possible.  Additional cost for US carrier flights is not sufficient justification to fly on foreign carriers.

Below is a list of the US flag air carriers:

  • Alaska Airlines (AS)
  • American Airlines (AA)
  • Continental Airlines (CO)
  • Northwest Airlines (NW)
  • United Airlines   (UA)
  • US Airways (US)
  • Delta Airlines (DL)

Additional information on airline code share alliances is available on:

  • StarAlliance.com with 21 partners including UA/US
  • Oneworld.com with 10 partners including AA
  • SkyTeam.com  with 11 partners including DL/NW

A code share flight must be documented with the US flag carrier code.

There are acceptable reasons to not use a US flag carrier.  These exceptions are listed below:

  • A US flag carrier does not provide service on a particular leg of your trip
  • There is no US flag carrier available for a particular leg
  • The use of a US carrier will unreasonably delay your travel time by three hours or more
  • Travel costs are reimbursed in full by a third party, such as a foreign government or international agency
  • The traveler is involuntarily rerouted
  • Medical or safety reasons.

By Maruca Malloy

 

 

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