**BACKGROUND:**

The General Services Administration (GSA), Office of Governmentwide
Policy (OGP)

Travel Management Policy Division (MTT) is required by law to annually
establish the maximum per diem rates up to which Federal employees are
reimbursed for expenses incurred while on official business travel at a
temporary duty location (TDY) within the Continental United States
(CONUS). MTT's mission under the CONUS per diem program is to ensure
that Federal travelers are fairly and equitably compensated for their
travel expenses while protecting the Government's financial interest.

Most of the 8,000-plus CONUS locations to which Federal employees travel
on an annual basis are covered by the standard CONUS per diem rate,
which is currently \$91 (\$60 for lodging and \$31 for M&IE). In
addition to the standard CONUS rate, there are approximately 420
non-standard locations (previously referred to as designated locations)
within CONUS that have a maximum per diem rate that is higher than the
standard CONUS rate as based on higher travel costs within these
locations.

The maximum per diem established for a location is comprised of three
components: a lodging, meal and incidental expense (M&IE) allowances.
While combined to create one maximum per diem rate, the lodging portion
of a per diem rate is established separately from the M&IE portion. The
lodging portions of per diem rates for the 420 non-standard locations
are reviewed annually; while the lodging portion of the standard CONUS
per diem rate is reviewed every three years. The standard CONUS rate was
last adjusted for Fiscal Year (FY) 2005. It will not be reviewed again
until FY 2007 (changes effective FY2008). The incidental expense
allowance is reviewed and changed as needed.

MTT bases lodging per diem rates in non-standard locations upon their
Average Daily Rate (ADR), a lodging industry metric calculated from the
economic factors of rental revenue of properties in each non-standard
location divided by number of rooms rented by those properties over a
specific period of time. To accomplish the review of per diem lodging
locations, MTT contracts with a travel industry data research firm that
collects and provides an ADR for each location. MTT sets the appropriate
lodging rate for each location after an extensive analysis and review of
this contractor-provided data.

For meals, MTT contracts with a data research firm to conduct a survey
of appropriate restaurants that result in data for the meals portion of
the per diem rates. The last comprehensive meals study was conducted in
1997, effective in FY98. In FY97, approximately 3,500-2 or 3
star/diamond (or comparable where there are an insufficient number of 2
or 3 star properties) restaurants were surveyed in both standard CONUS
and about 400 non-standard locations. MTT is scheduled to conduct a
meals survey in FY05 and in FY08 in order to update the meals per diem
rates. In non-survey years, the meals rate is adjusted by applying an
inflation factor to the prior year's meal rate. MTT is also requesting
the contractor to present alternative approaches to a meal survey, which
are more cost effective.

As the establishment of per diem rates is a resource intensive process,
MTT is seeking appropriate solutions to lesson the human resources
burden. Another task on this SOW is for the contractor to develop a
subscriber services to establish per diem rates. This service will
produce reports with current data, backup documentation and allow MTT to
easily change variables and produce reports based on these changes. The
service will produce all reports and supporting documentation for per
diem rates as described in the SOW.

# **OBJECTIVES:**

This procurement action will accomplish six objectives: 1) Provide MTT
with the necessary ADR data needed to determine the annual lodging
portion of the per diem rates for the non-standard and standard CONUS
per diem locations; 2) In FY05 and FY08, complete a new meals survey
providing MTT the data necessary to update the meals portion of the per
diem rates for all locations within CONUS; In FY06, FY07, and FY09
adjust meals data by utilizing the Consumer Price Index (CPI); 3) Create
an user friendly internet based subscriber service that produces the per
diem rates and supporting documentation; 4) Research the impact of
alternative methodologies on standard CONUS and non-standard locations;
5) Provide travel expertise; and 6) Communicate/educate the Federal
community, travel/hotel industry and other stakeholders on rate
methodology and need for Federal Emergency Management Agency (FEMA)
certification.

## TASK DESCRIPTION:

## 

## To satisfy this SOW for the per diem rates, the contractor shall:

1.  [Lodging Per Diem Rates:]{.underline}

-   Project Plan: The contractor shall provide a detailed project plan
    draft within one week after the award. The project plan shall
    address the methodology described by MTT, indicate timeline and
    major milestones for deliverables (as follow in this list of
    deliverables) and dependencies.

-   Have a database of at least 40,000 lodging properties in CONUS that
    are updated monthly. The contractor will merge the lodging property
    database with a recent database of lodging properties approved by
    the FEMA as being fire-safe and in compliance with the Hotel-Motel
    Fire Safety Act of 1990 ([**PL
    101-391**](http://www.usfa.fema.gov/applications/hotel/public_law.cfm)).
    The contractor shall download the current fire-safe properties from
    the FEMA website (presently at
    http://www.usfa.fema.gov/applications/hotel/state_download.cfm). The
    contractor shall update its lodging database with new FEMA data at
    least once annually, with the possible exception of the base year,
    during the life of this contract. Ideally the FEMA data will be
    updated quarterly. Also, the contractor will work to increase the
    number of hotels that are FEMA approved properties.

# For each non-standard location and standard CONUS, the contractor shall map using MapPoint Software and provide Excel reports showing charge card data where Federal travelers stay on TDY by any or all of the following, as requested: properties where Federal travelers are staying; properties that are FEMA approved; per diem county lines; zip code, county, Metropolitan Statistical Area, state, amount spent, room night volume, range around area of travel concentration, if applicable. The resulting map should be overlaid onto travel industry data by county or special area if used for a particular non-standard location. A key will clearly define which properties are being included in the resulting ADR. A sample report will be provided to MTT for review and modification although MTT reserves the right to subsequently change future reports at any time. MTT will provide the contractor with the charge card data annually in electronic format no later than April 30^th^.

-   ADR reports for each location shall be delivered in Excel format,
    via email to the Contracting Officer Technical Representative
    (COTR). The ADR reports shall minimally include the following fields
    (each item reported in separate columns) and depict the properties
    using MapPoint maps: Vendor ID, FEMA ID, \# of Rooms, non-standard
    location name and description, Street Address, City, State, ZIP
    Code, chain scale (contractor's price band assignment of each
    property, if appropriate), and County. The nonstandard location ADR
    reports will be based on 12 months of ADR (April 1-March 31^st)^ and
    occupancy data for each (or estimated when necessary). When 12
    months worth of data is unavailable, MTT should be notified and
    determines if they want to use that lesser period for reporting. The
    non-standard location reports should include statistics on (all
    provided with monthly data and by total year and averages):
    occupancy rate (expressed as a percent based upon supply and demand
    in the market as the market is defined by MTT), ADR, percent change
    by measure, percent change by year, reports based on either
    Monday-Thursday and/or a full week of ADR data, and response report
    (that is, properties in the market as defined by MTT), supply
    (number rooms in the market as defined by MTT), demand (number of
    rooms rented in the market as defined by MTT), revenue (revenue of
    properties in the market as defined by MTT). Excluded from the ADR
    are non-FEMA properties and outliers (either based on 1 standard
    deviation or an ADR index). All standard CONUS reports will exclude
    non-standard locations data. The standard CONUS reports may be
    national, regional or by state within the CONUS. The methodology
    will be further defined and may be subject to change at any time.
    Standard CONUS ADR reports will occur only in FY07, effective for
    FY08 rates.

-   The contractor shall determine whether each county's ADR is seasonal
    by checking if there is a 15 percent differential from a preceding
    month and extending for a minimum of two months. Where seasons
    exist, the ADR must separately be established for each season.
    Non-standard locations that have an average difference (over or
    under) ADR for at least an 8-week period of between 10-14 percent
    and an occupancy rate of at least 70 percent will be considered as
    seasonal. The contractor will enter the ADR for both seasonal and
    non-seasonal locations (and the seasons) into a spreadsheet for
    comparison with previous years' CONUS lodging per diem rates and
    seasons.

-   Special/Ad Hoc Reports: Special reports may be requested that do or
    do not include ADR data. These shall be provided to MTT by 5
    business days after the initial request (unless otherwise agreed
    upon). Raw data must be available for electronic review by MTT upon
    request. Examples of ad hoc or special reports might include data
    and charts showing FEMA approved properties/room nights by industry
    and/or chain scale; property distribution throughout standard CONUS
    or the non-standard locations; researching the impact of methodology
    changes in Standard CONUS or the non-standard locations; data for
    performance measures, etc.

> 2\) [Study for Meals Rates:]{.underline}

-   Project Plan: Create a project plan and receive approval for
    completion of tasks whose goal is to conduct two separate meals
    surveys (by telephone or other approved method) by a statistically
    valid sample of their populations that result in a determination of
    average breakfast, lunch and dinner costs in: 1) the approximately
    8,000 combined boundaries of Standard CONUS and 2) in the combined
    boundaries of the approximately 420 non-standard locations. Before
    going into depth on the project plan, alternative approaches that
    are more cost effective should be researched and presented to MTT
    for a determination of the direction to pursue. For all proposed
    methodologies, the contractor should present MTT with a streamlined
    sampling plan, timeline, justification of positives and negatives
    and estimated costs. MTT will discuss, may request additional
    information and select an approach after all information has been
    received. After the selected approach for the meals study, the
    contractor will provide MTT with a project plan for both Standard
    CONUS and non-standard locations supporting the selected
    methodology. The project plan shall address the methodology
    described by MTT, indicate timeline and major milestones for
    deliverables (as follow in this list of deliverables) and
    dependencies.

-   Survey meal results shall be listed separately for each non-standard
    location and Standard CONUS and provided in an Excel format. The
    spreadsheet will list in separate columns, minimally: State
    abbreviation, county name (Sorted alphabetically by these first two
    items), report date, city, zip code, and survey rates for each meal
    (breakfast, lunch and dinner). In a separate column, the current \$3
    incidental allowance will be added into the resulting average per
    diem meals and Standard CONUS rates. The incidental allowance rate
    is subject to change. Meal rates shall include state and local
    taxes, 15 percent gratuity after taxes and be rounded to the nearest
    \$1.00. All non-standard locations and Standard CONUS will have all
    3 meal average costs determined, with and without outliers beyond 2
    standard deviations, if appropriate. The resulting average meal
    amounts will be listed with their bucket meal per diem amount and
    total meal amount for each Standard CONUS and non-standard location.
    Also include the number of restaurants surveyed (out of universe and
    the percentage it represents).

-   Meals and Incidental Buckets: The resulting averages for
    non-standard location and Standard CONUS meals (breakfast, lunch and
    dinner) will be grouped into no more than 6 buckets for per diem
    meal reimbursement purposes. See attachment 2 "Meals Bucket
    Methodology" for more information.

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-   The meals surveys will be conducted twice during the course of the
    contract (in the 1^st^ and 5^th^ contract year). In the interim
    years (2^nd^-4^th^ of the contract), the meals rates will be
    adjusted by the CPI and placed into established buckets. MTT, in
    consultation with the contractor, will determine whether a national
    CPI, one for each non-standard location, or standard CONUS CPI
    rate(s) will be used for this adjustment. The contractor shall
    determine the appropriate CPI based upon MTT selections and apply it
    to the interim year's rates.

-   The contractor will apply the approved methodology for the meals
    study or alternative approach selected.

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```
-   Expertise and ability to conduct meals surveys.

# Provide, when requested, the actual reports from surveys that support resulting averages.

> 3\) Spreadsheet

-   A spreadsheet shall be provided and kept current through subscriber
    services or from the contractor that combines the M&IE results for
    Standard CONUS and non-standard locations. Minimally, it shall
    include: State, Destination, FY Seasonality, If seasonal-dates of
    each season, Location Defined (Counties unless otherwise defined),
    FY Prior Room Nights baseline, FY Prior Lodging rate, FY Prior M&IE,
    FY Prior Per Diem rate total, FY Prior Lodging \$ Impact with
    baseline room nights, FY Prior M&IE \$ Impact, FY Prior Total \$
    Impact, Current year ADR, ADR Difference With Prior Lodging Rates,
    Minus 5%, FY Current Year Room Nights, FY Current Year Lodging \$
    Impact without (-5%), FY Current Year Proposed Lodging Rate, FY
    Current Year Final Lodging Rate, \$ Diff. (Lodging), FY Current Year
    M&IE, FY Current Year Per Diem, FY Current Year Lodging \$ Impact,
    FY Current Year M&IE, \$ Impact, FY Current Year Total \$ Impact.
    This data will be sorted by State and County.

-   This spreadsheet shall be updated within 24 hours whenever rates are
    changed.

-   MTT reserves the right to obtain any of the documents the contractor
    used in preparing the resulting rates.

4\) CONSULTATION[:]{.underline}

The contractor shall provide:

-   Expert lodging industry travel consultation including education,
    travel economics, survey research, trends, data analysis;
    performance measures, and software assistance, on an as needed
    basis. Discuss request within 24 hours.

-   Respond to oral or written communications to the COTR, or as
    otherwise designated, within 24 hours of the initial request.

-   Application of new methodology to deliverables where MTT requests.

[PERFORMANCE PERIOD:]{.underline}

The period of performance for this contract is one base year, plus four
one-year option periods.

[OPTIONAL TASKS:]{.underline}

Lodging data for the non-standard locations will be required for annual
analysis of lodging per diem rates. Data will be updated on a monthly
basis. If the subscriber services line item is not awarded,
approximately 600 reports will be requested from MTT annually.

With the possible exception of the base year, the contractor shall
update their hotel database with FEMA data on fire-approved hotels no
less than annually or quarterly updates are desired. Notification of
updates should be provided to MTT.

Graphic Charge Card Data: The contractor will update and graphically
represent the GSA provided credit card data showing where Federal
travelers stay on TDY annually.

Standard CONUS ADR reviews will take place in FY2007 and reflected in
the FY2008 rates.

A full-fledged meals price survey or alternative approach selected is
expected to be conducted twice over the life of the contract in the base
and 5^th^ year. Annual adjustments by CPI or alternative method(s) will
occur annually.

[Provide Subscriber Services:]{.underline}

-   Project Plan: The contractor shall provide a detailed project plan
    draft within one week from date of award. The project plan shall
    address the methodology described by MTT, indicate timeline and
    major milestones for deliverables (as follow in this list of
    deliverables) and dependencies.

-   By April 30^th^ of the first option year, develop and make
    operational subscriber services. In the second through the fifth
    option years, subscriber service enhancements and maintenance should
    be completed by April 30^th^ for system use. Subscriber services
    will electronically produce maximum CONUS per diem rates (lodging,
    meals and incidentals) in non-standard and Standard CONUS locations
    with backup supporting documentation, based on current data. This
    service shall allow MTT to change the methodology used for ADR
    reports, meals or incidentals, adjusting variables globally (to all
    non-standard locations, Standard CONUS, and meals rates), to groups,
    and/or to selected non-standard locations. It will also allow input
    by authorized MTT personnel to change data globally, in buckets or
    to individual Standard CONUS or non-standard locations. The
    subscriber services will produce all ADR reports required by the SOW
    without direct interface with the contractor.

-   MTT shall have access to the subscriber services through the
    Internet. The service will be updated with the latest information
    available. When enhancements or a significant amount of updates are
    made, the contractor will notify the MTT Point of Contact that the
    subscriber services will be unavailable and when it is expected to
    be operational. Subscriber services should be available on an almost
    continuous basis (except when unavailable for brief periods for
    updating data, enhancements, and maintenance).

-   The subscriber services will enable inputs, which are reflected in
    output spreadsheets. Inputs may be made to change meals data,
    incidental expenses, and update information for new CPI data. Annual
    enhancements and maintenance will be made in such a way that the
    database is in proper working order and improvements are available
    to users by April 30th annually. It will also allow incorporation of
    updated CPI to meals data, modification of meal buckets for the
    appropriate meal rate. The contractor shall perform large updates.

-   Train the specified MTT personnel on use of the subscriber service
    and provide user manual.

-   MTT retains the right to modify the basis for determining the
    calculations used in the analysis report, at no additional cost.

-   Develop a methodology that selects properties for inclusion into the
    ADR calculation based on:

a.  Whether there is a concentration within a county where Federal
    Travelers are staying (or where their business is located).
    Concentration is defined as 50 percent or more Federal travelers are
    staying in a smaller area within a county's border. MTT may elect to
    select properties for inclusion in the ADR reports based on
    historical boundaries or independent selection. The area for
    selection should be retained for repeated use of borders although
    MTT may also opt to change borders at any time. MTT may elect to use
    historical boundaries for some destinations-information will be
    provided to the contractor.

b.  If no concentration is determined, then the ADR will be based on all
    properties located within the county excluding non-FEMA approved
    properties and elimination of a percentage of properties with the
    highest and lowest ADR.

c.  Where concentration(s) are identified, subscriber service or
    contractor should select area(s) of properties within areas of
    concentration for the basis of ADR calculation. ADR will be further
    refined to first eliminate non-FEMA approved properties, eliminate
    outliers outside of 2 or 3 standard deviations and last eliminate a
    percentage of properties with the highest and lowest ADR. The
    resulting ADR will be reported for the non-standard location with
    supporting documentation.

**DELIVERABLES:**

+---------------------+-----------------------------+-----------------+
| ## Deliverables     | ## Draft                    | ## Final        |
+---------------------+-----------------------------+-----------------+
| # **[Lodging Per    | 5 workdays after award of   | 5 workdays      |
| Diem]{.underline}** | contract                    | after MTT       |
|                     |                             | review          |
| 1.  Project Plan    |                             |                 |
+---------------------+-----------------------------+-----------------+
| 2.  Database        | 20 workdays after award of  | 5 workdays      |
|     updated w/FEMA  | contract                    | after MTT       |
|     properties      |                             | review          |
+---------------------+-----------------------------+-----------------+
| 3.  Non-Standard    | At least 100 ADR trend      | 5 workdays      |
|     Location ADR    | reports weekly beginning 5  | after MTT       |
|     Reports         | business days after the end | review          |
|                     | of the period for inclusion |                 |
|                     | or from the request date.   |                 |
|                     | All requested reports       |                 |
|                     | received no later than      |                 |
|                     | (NLT) 5 weeks from date     |                 |
|                     | reports initially           |                 |
|                     | requested.                  |                 |
+---------------------+-----------------------------+-----------------+
| #                   | 5 business days after the   | 5 workdays      |
| # Special Reports ( | end of the period for       | after MTT       |
| Ad hoc/methodology) | inclusion or from the       | review          |
|                     | request date unless         |                 |
|                     | otherwise agreed upon       |                 |
+---------------------+-----------------------------+-----------------+
| # **[Meals Per      | 5 workdays from meals       | 5 workdays      |
| Diem]{.underline}** | survey start date           | after MTT       |
|                     |                             | review          |
| 4.  Alternate       |                             |                 |
|     Approaches      |                             |                 |
+---------------------+-----------------------------+-----------------+
| 5.  Project Plan    | 5 workdays after receiving  | 5 workdays      |
|                     | MTT decision on selected    | after MTT       |
|                     | methodology for the meals   | review          |
|                     | study                       |                 |
+---------------------+-----------------------------+-----------------+
| 6.  Finalizing      | 5 workdays after starting   | 5 workdays      |
|     survey          | project                     | after MTT       |
|     questionnaire   |                             | review          |
|     or alternative  |                             |                 |
|     approach\*      |                             |                 |
+---------------------+-----------------------------+-----------------+
| 7.  Provide         | First day surveys are       | 1 day after MTT |
|     completed       | started                     | review          |
|     surveys to      |                             |                 |
|     MTT\*           |                             |                 |
+---------------------+-----------------------------+-----------------+
| 8.  Non-standard    | 40 workdays from survey or  | 5 workdays      |
|     and Standard    | alternate approach start    | after MTT       |
|     CONUS           | date                        | review          |
|     locations:      |                             |                 |
|     bre             |                             |                 |
| akfast/lunch/dinner |                             |                 |
|     rates           |                             |                 |
+---------------------+-----------------------------+-----------------+
| 9.  Bucket          | 5 workdays from MTT rate    | 5 workdays      |
|     Determination   | approval                    | after MTT       |
|                     |                             | review          |
+---------------------+-----------------------------+-----------------+
| # **[Spreads        | 5 workdays from when last   | 5 workdays      |
| heet]{.underline}** | non-standard ADR report     | after MTT       |
|                     | received or meals report    | review          |
|                     | accepted. Changes are       |                 |
|                     | updated within 24 hours.    |                 |
+---------------------+-----------------------------+-----------------+
| #                   |                             | 150 hours, as   |
|  **[Consulting Serv |                             | needed          |
| ices]{.underline}** |                             |                 |
+---------------------+-----------------------------+-----------------+

\*if approach requires MTT approval.

-   Status Updates: Monthly status updates on number of reports ordered
    and other contract activities and their costs will be sent to MTT's
    project manager via email.

[TRAVEL:]{.underline}

Travel will be reimbursed in accordance with the Federal Travel
Regulation. MTT expects the contractor to travel to Washington to meet
with MTT representatives and, when requested and deemed necessary,
travel with MTT representatives to various locations within CONUS to
meet with per diem stakeholders.

The contractor is expected to:

-   Travel to MTT's office to meet for a kick-off meeting and for
    periodic working meetings, as required by MTT or contractor. Expect
    2 meetings annually.

-   Travel, as required, to sites within the CONUS to address lodging
    and per diem needs of stakeholders, when requested by MTT. Expect 5
    sites visits annually.

[PROCEDURES FOR PAYMENT:]{.underline}

Upon completion of deliverables or upon completion of travel as required
under this contract, the contractor will submit invoices to MTT's COTR.
After verifying that the deliverables or travel for which the invoices
cover have been accepted or approved by MTT, MTT's COTR will forward the
approved invoices to GSA Finance Office for processing and payment.

[PRIVACY ACT:]{.underline}

The contractor may have access to date subject to the Privacy Act of
1974.

[GENERAL SERVICES ADMINISTRATION (MTT) RESPONSIBILITIES:]{.underline}

MTT will provide the contractor with:

1)  NLT 10 workdays from the start of each base or option year, Federal
    traveler charge card data that identifies hotel properties and/or
    locations where federal travelers are staying on TDY, and the amount
    spent;

2)  NLT 10 workdays after receiving an updated hotel property database
    and Federal credit card maps, annually MTT will provide the
    contractor with a list of non-standard per diem lodging locations
    (counties and included cities). Where special boundaries are
    desired, latitude and longitudinal information will be provided to
    the contractor by MTT. Note that all areas within the CONUS that are
    not specified as non-standard locations are defined as part of
    standard CONUS;

3)  A draft for the meals survey will be provided NLT 5 workdays from
    the start of each year that requires a meals survey or, if required,
    an alternative approach;

4)  NLT April 1 of each year, the most current CONUS per diem
    spreadsheet that lists current lodging, meals and incidental rates
    by non-standard per diem location will be provided.

Attachment 1- DEFINITIONS: GENERAL AND REPORT RELATED

**[GENERAL DEFINITIONS:]{.underline}**

[Contracting Officer Representative (COR)/Contracting Officer's
Technical Representative (COTR)]{.underline}-A person who is designated
by the Contracting Officer to assist in administering the technical
aspects of the contract.

[General Services Administration (GSA), Office of Governmentwide Policy
(OGP)]{.underline}

[Travel Management Policy Division (MTT)]{.underline}-MTT is the
organization seeking contractor support.

[Lodging Allowance]{.underline}-The maximum reimbursement rate the
Government reimburses employees on official travel for overnight lodging
in a standard room within a particular destination.

[Meal & Incidental Expense (M&IE) Allowance]{.underline}-A flat amount
established for reimbursement of Federal travelers for meals and other
non-lodging related expenses. It is equal to the per diem rate minus the
established lodging allowance.

[Non-standard location]{.underline}-Previously called destination or
designated area. This is any of approximately 420 county or smaller
geographic areas for which the standard CONUS rate does not apply.
Special, higher rates have been established for each of these areas. The
number of non-standard locations established varies depending upon the
results of the annual per diem process.

[No Later Than (NLT]{.underline})-Submission or work must be completed
by the specified date.

[Per Diem Rate]{.underline}-A rate established by the Federal Travel
Regulation for CONUS reimbursement of lodging, meals, and incidental
expenses for Federal civilian and military employees while traveling on
TDY overnight on official business. The maximum per diem rate is
calculated by adding together the lodging and M&IE allowances for that
location.

[Temporary Duty Location (TDY)]{.underline}-A place, away from the
employee's official station, where the employee is authorized to travel
for official business.

**[REPORT RELATED DEFINITIONS:]{.underline}**

[Average Meal Cost]{.underline}-The total average for the Breakfast,
Lunch, and Dinner. All meals include a Non-Alcoholic Beverage. Separate
averages for each meal will be established. Additionally the rates will
be separately established for Standard CONUS and aggregately computed
for the non-standard locations (presently about 420 locations).

[ADR (Average Daily Rate)]{.underline}- Room revenue divided by rooms
sold.

[Food Away From Home Consumer Price Index (CPI)-]{.underline}An index
compiled and released by the Department of Labor's Bureau of Labor
Statistics. The Consumer Price Index (CPI) is a measure of the average
change over time in the prices paid by urban consumers for a market
basket of consumer goods and services. In non-survey years, the Food
Away From Home CPI may be selected as a means of adjusting meals to
current dollar values. The end result of the first year will be used as
the base line for the second year. The end result of the second year
will be used as the base line for the third year, and so forth. More
information can be found at <http://www.bls.gov/cpi>.

[Demand (Rooms Sold)]{.underline}\--The number of rooms sold (excludes
complimentary rooms).

[FEMA Approved Lodging Establishments]{.underline}-The Federal Emergency
Management Agency's (FEMA) National Master List of lodging
establishments that meet the requirements of the fire prevention and
control guidelines described in Section 29 of the Federal Fire
Prevention and Control Act of 1974, as amended. Only FEMA approved
properties are included in calculation of the ADR. The list may be found
at <http://www.usfa.fema.gov/applications/hotel/state_download.cfm>

[Government\'s Annual Room Night Need]{.underline}-The number of room
nights that Federal employees stay at a specific destination on an
annual basis. MTT uses this data to determine the annual cost impact of
the maximum per diem rate (lodging and meals and incidental expenses)
for a specific destination. There may be some years that require a cost
impact that shows the impact of new per diem rates on both benchmark and
new room night data.

[Incidental Expenses]{.underline}-Specific related travel expenses other
than lodging and meals covered by per diem. The current rate is \$3 for
the each travel day. When calculating the meals costs, the Contractor
must add the incidental expense to determine the M&IE rate.

[Industry Rating]{.underline}- For lodging, properties are either put
into chain scales (for our purposes from top to bottom they include:
luxury, upper upscale, upscale, mid-scale, and economy) or assigned a
star rating. In FY05 our methodology used only the middle 3 hotel chain
scales in our ADR calculations. For the restaurant establishments, all
restaurants are rated based on a star/diamond system. One star/diamond
indicates the lowest rating, while a five star/diamond indicate the
highest rating. For the meals study, the contractor will survey 2 and 3
star properties and comparable non-rated family or independent
establishments where there is a sufficient number of rated properties.

[Meal Cost]{.underline}-The separate cost for breakfast, lunch, and
dinner, plus a 15 percent gratuity inclusive of state and local taxes.

[Non Seasonal Non-standard Location]{.underline} -A location that shows
no pattern of seasonal variations in lodging rates.

[Non-Standard Location]{.underline}-A geographic location specified by
MTT for which development of daily lodging and/or meals costs is
required.

[Meal Bucket/Meals Per Diem Bucket Approach]{.underline}-MTT currently
uses six "buckets" (\$31, \$35, \$39, \$43, \$47, and \$51) for meal
allowance rates. After average meal costs are determined, bucket ranges
are established, and allowances established for each bucket for Standard
CONUS and non-standard locations meal rates.

[Occupancy]{.underline}-Rooms sold divided by rooms available.

[Percent Change]{.underline}- Amount of growth, up, flat, or down from
the same period last year (month, ytd, three months, and twelve months).
Calculated as ((TY-LY)/LY) \* \"100\".

[Qualified properties]{.underline}- 1) for the lodging portion of the
per diem study, FEMA approved properties in a specific area are
qualified properties; 2) for the meals study, 2 and 3 star properties or
comparable are considered qualified.

[Revenue (Room Revenue)]{.underline}- Total room revenue generated from
the sale or rental of rooms.

[Seasonal Location]{.underline}- A non-standard location is a location
that has two or more lodging rate ADRs based on specific seasonal
timeframes. A location is considered seasonal if there is at least an
8-week pattern of seasonal lodging rate variation with a sustained 15
percent delta from the prior monthly period. Non-standard locations that
have a sustained change over the prior month of between 10-14 percent
change and an occupancy rate of at least 70 percent will be considered
as seasonal.

[Standard Room]{.underline}-A single occupancy room.

[Supply (Rooms Available)]{.underline}- The number of rooms times the
number of days in the period.

[Total Rounded Meal Cost]{.underline}\--The Total Meal Cost plus the CPI
Amount. If the ending amount is equal to or greater than \$.50, round up
to the nearest dollar. If the ending amount is less than \$.50, round
down to the nearest dollar.

[Trend Reports]{.underline}- Historical data on selected properties or
segments for the last five years.

[Year to Date]{.underline}- Average or sum of values starting at a
specied period and continuing for a twelve month period.

See also the [**Federal Travel Regulation
§300-3.1**](http://www.gsa.gov/gsa/cm_attachments/GSA_DOCUMENT/ftr_091704_R2QA53_0Z5RDZ-i34K-pR.pdf)

**Attachment 2- Meals Survey Definition of Standard Meals**

Survey from current restaurant menus and based on the menu selection
listed below. All three meals do not need to come from a single
restaurant:

**Definition of Standard Meals**

\(a\) A typical [Breakfast]{.underline} consists of:

> A combination platter consisting of:
>
> Two eggs
>
> Side of meat (bacon, sausage, ham)
>
> Hash browns
>
> Two pieces of toast or pancake(s)
>
> Coffee, tea, milk, juice or soft drink

\(b\) A typical [Lunch]{.underline} consists of:

\*Medium-priced entree or cold/hot sandwich;

Two vegetables;

Bread/rolls and butter; and

Coffee, tea, milk, or soft drink

\(c\) A typical [Dinner]{.underline} will be based on:

Salad

\*Medium-priced entree

Two vegetables;

Bread/rolls and butter;

Coffee, tea, milk, or soft drink

-   **[Sample Selection:]{.underline}**

    A.  Develop and gain approval for a representative survey-sampling
        plan for 90-95 percent statistical validity and a margin of
        error between 5-10 percent. Minimally for each validity level,
        the plan will include the number of locations to survey for both
        Standard CONUS and the non-standard locations, the areas
        designated for surveying and available for each category. A
        representative sample will be selected from each area and for
        each meal. When a predetermined number of acceptable meals
        surveys are completed (breakfast, lunch and dinner), average
        meals costs will be calculated for Standard CONUS. The same
        approach will be used for the non-standard locations with the
        additional step of adjusting each non-standard location with the
        Bureau of Labor Statistics' CPI for meals away from home, or
        comparable index, to reflect county costs. The proposed sample
        will be presented to the MTT POC for approval prior to survey
        commencement. If the contractor has conducted said survey in the
        described location within the preceding year prior to the start
        date of the surveys, then that data should be used in lieu of
        conducting a new survey. That data should be combined with the
        contractor's already existing meals-price database with the
        fresh survey data for destinations for which data was not
        already available. These surveys must receive prior approval by
        MTT and be part of the sampling plan.

    B.  Qualifying restaurant properties: 2 and 3 star/diamond full
        service restaurants located within the define boundaries of the
        locations being surveyed. These 2 or 3 star/diamond industry
        rated lodging properties/restaurants are found within the AAA
        and Mobil Travel Guides. When 2 and 3 star/diamond full service
        restaurants are not available, family dining chains or
        chain-type restaurants from within the defined boundaries of the
        destination. If requested by the property, the Contractor will
        fax a confirmation letter to the property being surveyed that
        they are conducting a survey for MTT for the establishment of
        the FY 2006 meals portion of the per diem rates.

    C.  County Adjustments for Per Diem Non-standard locations: Each Per
        Diem Non-standard location will be adjusted by the CPI for meals
        away from home, or comparable, to reflect county costs. This
        will be done after the average meals costs are determined with
        the removal of outliers beyond 2 standard deviations, but before
        the incidental expense is added into the totals.

    D.  In a separate column, add the determined amount for incidental
        expenses to the totals.

    E.  Determine the appropriate meal bucket/bucket (presently there
        are 6 between \$31-\$51) to put the resulting standard CONUS and
        each non-standard location averages into. This will require
        further consultation and approval from the GSA COTR.

> **[Meals Bucket Methodology]{.underline}**
>
> The average percentage for each meal (breakfast, lunch and dinner)
> shall be found by taking the average for each meal from all of
> Standard CONUS and non-standard locations and dividing it by the total
> average for all meals from Standard CONUS and non-standard locations.
> The resulting percentages for each meal will be used to determine each
> meals (breakfast, lunch and dinner) reimbursement rate within each
> bucket.
>
> Each non-standard location and Standard CONUS will have separate
> calculations to determine their meal reimbursement rate. Depending
> upon which bucket the resulting total average meals (combined for all
> meals), it will be put into one bucket. The incidental expenses will
> be added after the determination of the meal's bucket placement. The
> ranges appropriate for each bucket will need to be recalculated when
> meals data is available in consultation with GSA. The buckets will be
> subject to change.
>
> The current FY05 meals and incidental expense bucket chart is shown
> below:

  -----------------------------------------------------------------------------------------------------------------------
  **Table contains meals and incidentals totals and                                                            
  their breakdown**                                                                                            
  ----------------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
  **M&IE**                                              **\$31**   **\$35**   **\$39**   **\$43**   **\$47**   **\$51**

  **Breakfast\...\...\...\...\...\...\...\...\....**    6          7          8          9          9          10

  **Lunch\...\...\...\...\...\...\...\...\...\.....**   6          7          8          9          11         12

  **Dinner\...\...\...\...\...\...\...\...\...\....**   16         18         20         22         24         26

  **Incidentals\...\...\...\...\...\...\...\.....**     3          3          3          3          3          3
  -----------------------------------------------------------------------------------------------------------------------

> A formula similar to the one below will be used for placing the
> Standard CONUS and non-standard locations into the appropriate bucket
> as shown in the chart above.
>
> If M&IE \<=\$31.00, then the proposed M&IE=\$31
>
> If M&IE \> \$31.00 and \<\$35.00, then proposed M&IE = \$31.00
>
> If M&IE =\> \$35.00 and \<\$39.00, then proposed M&IE = \$35.00
>
> If M&IE =\> \$39.00 and \<\$43.00, then proposed M&IE = \$39.00
>
> If M&IE =\> \$43.00 and \<\$47.00, then proposed M&IE = \$43.00
>
> If M&IE =\> \$47.00 and \<\$51.00, then proposed M&IE = \$47.00
>
> If M&IE =\> \$51.00, then proposed M&IE = \$51.00