PER DIEM, TRAVEL AND TRANSPORTATION ALLOWANCE COMMITTEE

HOFFMAN BUILDING 1, ROOM 836

2461 EISENHOWER AVENUE, ALEXANDRIA, VA 22331-1300

 EDITORIAL CHANGE

PDTATAC/(tmc) 23 November 1998

MEMORANDUM FOR EDITOR

SUBJECT: CAP Item 45-98E – Use of ITO’s by Contractors & Contract City Pair Program

1. The city pair air fare contract, effective 1 October 1998, indicates that Government contractors are not

eligible for city pair air fares. We have been advised by GSA that par. C6000, item 10 is confusing and

frequently interpreted in the field to allow contractors to be put on ITOs since it is generally considered to

be in the best interest of the DOD to do so. The result is that that city pair fares intended for employees

only are applied to contractors.

2. The purpose of this change is to:

(a) reword item 10 in par. C6000 to preclude the above described interpretation;

(b) insert a check box in the sample ITO for indicating whether the individual traveling under the ITO is

or is not eligible for contract city pair fares;

(c) Insert highlighted notes in the regulations and on the ITO to indicate that contractors and contractor

employees aren’t Government employees and aren’t eligible for city pair fares or any other travel

related items restricted to Government employees;

(d) update par. C6004 based on a new GSA fact sheet concerning availability of Government travel and

transportation contract fares or prices to Government contractors;

(e) update the conditions in par. C6005-A2 and the FAQ section regarding mandatory use of city pair

fares.

3. This change should appear in JTR change 400, dated 1 February 1999.
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CAP Item 45-98(E) (45-98cln-11/23/98)

(a) Revise JTR, Chapter 1, Part A by inserting a note in par. C1000 as shown.

C1000 APPLICATION

(Note: A Government contractor or contractor employee is not a Government employee)

A. Inclusion. Except as indicated in subpar. B, the provisions in this Volume apply to:

* * * * *

 (b) Revise JTR, par. C6000 by inserting the following note before the paragraph and

amending item 10 as shown; and change par. C6001, item 4 as indicated. (All the

changes in (b) through (d) will also be inserted in JFTR, Par. U7700)

(NOTE: Invitational travel orders may be used for authorizing travel and transportation at

Government expense for contractors or contractor employees only under the circumstances in par.

C6000, item 10. Government contractors and contractor employees aren’t Government employees

and aren’t eligible under any circumstances for city pair air fares or any travel related items

restricted to Government employees.)

C6000 WHEN AND TO WHOM APPLICABLE

Invitational travel is the term applied to authorize travel of individuals,

a. not employed by the Government, or

b. employed (under 5 U.S.C. § 5703) intermittently by the Government as consultants or experts

and paid on a daily when-actually-employed basis, and

c. for individuals serving without pay or at $1 a year

when they are acting in a capacity that is directly related to, or in connection with, official DOD

activities. Travel allowances authorized for these individuals are the same as those ordinarily

authorized for employees on TDY, except as provided by par. C4562-C for interview travel and by

item 15 of this paragraph for spouse invitational travel. See item 10, par. C6001, item 2 and par.

C6004 regarding travel by Government contractors. Invitational travel may be authorized in cases

such as when:

1. * * * * *;

 * * * * * *

10. a Government contractor or contractor employee travels under a contract that does not

provide funding or reimbursement for travel and transportation costs (NOTE 1: The intent

of this item is to accommodate those very few rare instances when a contractor’s personnel

must travel but the contract didn’t anticipate any requirement for travel and doesn’t

provide funding or reimbursement for travel and transportation costs. It’s not the intent
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CAP Item 45-98(E) (45-98cln-11/23/98)

of this item to induce or suggest that contracts should be negotiated without providing for

travel and transportation costs when travel by the contractor’s employees is reasonably

foreseen.) (NOTE 2: Government contractors and contractor employees aren’t

Government employees and aren’t eligible under any circumstances for city pair air fares

or any travel related items restricted to Government employees.);

C6001 RESTRICTIONS

Invitational travel at Government expense shall not be authorized for:

1. nonappropriated fund officials or employees traveling on nonappropriated fund business;

2. contractor employees (except as provided in par. C6000, item 10);

3. dependents and/or movement of HHG or other property of individuals for whom invitational

travel orders are issued;

4. (a) Federal Government employees or (b) members of the Uniformed Services, excluding retired

persons (Federal employees and Uniformed members on active duty are given regular TDY

orders unless authorized preemployment interview travel under par. C6200 and

employee/member is in a leave status during such travel (B-219046, September 29, 1986)). An

employee/uniformed member may be included on invitational travel orders issued to a patient

when traveling as a non-medical attendant.

 (c) Revise JTR, par. C6003 and the sample format of an invitational travel order as

shown.

C6003 INVITATIONAL TRAVEL ORDER

The sample format contained herein may be used as a guide in the preparation of an invitational travel

order in all Services. The use of the sample format isn't mandatory.

SAMPLE FORMAT OF AN INVITATIONAL TRAVEL ORDER

Name_________________________________ TRAVEL ORDER NUMBER_____________________

Address_____________________________________________________________________________

DATE APPROVED____________________________

You are invited to proceed from__________________________________________________________

in sufficient time to arrive at___________________________________ by _______________________

 (Date)
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CAP Item 45-98(E) (45-98cln-11/23/98)

for the purpose of_____________________________________________________________________

for approximately _________ days. Upon completion, you shall return to the point of origin.

A Government contractor or contractor employee isn’t a Government employee. If you are a Government contractor

or a contractor employee, or someone who doesn’t fit the definition of “employee” in Joint Travel Regulations (JTR),

par. C1000, you aren’t eligible for city pair air fares or any travel related item restricted to Government employees. If

you are or fit the definition of a Government employee, a uniformed service member or the dependent of a

Government employee or uniformed service member, you are eligible for contract city pair air fares and any travelrelated item restricted to Government employees.

You are authorized to travel by: Rail Commercial Air Military Aircraft Bus

 See below for travel by Privately-Owned Conveyance

You are are not eligible for contract city pair air fares.

 Transportation has been arranged by the order issuing agent.

 Transportation tickets are included with this order.

 Transportation tickets shall be provided at a later date.

 To arrange transportation call: (___)______________________

 You may arrange your transportation. The following rules apply:

You must arrange your transportation with a travel office under contract to the U. S. Government (Commercial Travel Office

(CTO)) when the contract with the CTO permits the CTO to arrange transportation for travelers who aren’t Government

employees. If you’re in a foreign country, except for Canada and Mexico, you may use a travel office not under contract to

the Government if ticketing can't be secured from a branch office or general agent of an American-flag carrier. If you

purchase transportation from a travel office (travel agency) not under contract to the Government, reimbursement is limited to

the cost to the Government on a constructive basis for transportation that would have been arranged by a CTO if available. If

the contract between the Government and the CTO doesn’t permit the CTO to arrange transportation for

contractors/contractor employees or others who aren’t Government employees, reimbursement for transportation may not

exceed coach class air accommodations unless otherwise permitted in JTR, par. C2204-A.

It is DOD policy that in using regularly scheduled air transportation:

(a) accommodations selected shall be the least costly service that permits satisfactory accomplishment of the

mission of the traveler, and

(b) United States carriers must be used for all commercial foreign air transportation if service provided by those

carriers is available; otherwise reimbursement for the cost of transportation isn't allowed.

 You are authorized to travel by privately-owned conveyance (POC) as advantageous to the Government. Reimbursement

shall be at the rate of $0.325 cents per mile, plus the cost of necessary parking fees and bridge, ferry, and tolls incurred

including per diem while in travel status under this travel order.

 You are authorized to travel by privately-owned conveyance (POC) on a constructive basis. You would normally be

authorized to travel by common carrier. Reimbursement shall be limited to the cost of travel by the usual mode of common

carrier, including per diem.

Receipts: Ticket stubs are required to substantiate your transportation cost. Receipts are required for lodging. Receipts are

required for all items of expense in an amount of $75 or more plus any applicable tax.

 You shall be paid a per diem allowance to cover your expenses for lodging, meals, and incidentals. While traveling and

performing the mission you shall be authorized a per diem equal to the daily amount you pay for lodging, plus a fixed amount
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CAP Item 45-98(E) (45-98cln-11/23/98)

for meals and incidental expenses, not to exceed the maximum amount prescribed in JTR, Appendix B or D for the locality

concerned. If your costs, particularly for lodging, are more than the maximum per diem rate prescribed in JTR, Appendix B

or D, then only the maximum per diem rate shall be paid. (See JTR, Chapter 4, Part L for applicable rules)

Applicable Per Diem Rates:

Locality

Maximum

Lodging Rate

Meal & Incidental

Expense Rate Total Per Diem

 You shall be paid an actual subsistence expense allowance (AEA) for lodging and a per diem for meals and incidentals

(M&IE). You are required to itemize your lodging expenses only.

 You shall be paid an actual subsistence expense allowance (AEA) for lodging and meals and incidental expenses

(M&IE). You must itemize all your subsistence expenses. Subsistence expenses include lodgings; meals; fees and tips to

waiters, bellboys, maids, porters; personal laundry, pressing, and dry cleaning; local transportation (including usual tips)

between places of lodging, duty, and place meals are taken; and other necessary expenses. You shall be reimbursed for the

actual expenses incurred, but not to exceed the maximum amount authorized for the locality concerned. (See JTR, Chapter 4,

Part M for applicable rules)

Actual Subsistence Expense Allowance (AEA) Authorized:

Locality

Maximum AEA

Allowance

Amount allowed for Meals & Incidental

Expenses if M&IE authorized on a per diem basis.

The JTR is available at http://www.dtic.mil/perdiem/. Address any inquiries regarding this travel order

to:________________________________________________________________________________

__________________________________________________________________________________

The travel authorized herein has been determined to be in the public interest, and is chargeable to:

_____________________________________________________________________________________

 (d) Revise JTR, pars. C6004, C6005 and the “Frequently asked questions about using

the Contract City Pair Program” following par. C6005-E2 as shown.

C6004 AVAILABILITY OF GOVERNMENT TRAVEL AND TRANSPORTATION CONTRACT

FARES OR PRICES TO GOVERNMENT CONTRACTORS.

Individual contracts or agreements between GSA and the vendors determine whether contractors are

eligible to utilize the travel cost saving programs – except that contract city pair fares must not be used

by Government contractors or contractor employees.
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CAP Item 45-98(E) (45-98cln-11/23/98)

A. Contractor(s). means:

1. Contractors working under a cost reimbursement contract; and

2. Contractors working for the Government at specific sites under special arrangements with the

contracting agency, and which are wholly Federally funded (e.g., Government-owned,

contractor operated (GOCO), federally funded research and development (FFRDC), or

management and operating (M&O) contracts).

B. Contract Air Passenger Transportation Practices. Use of GSA contract air passenger fares is

governed by GSA’s contracts with the airlines and by the Defense Transportation Regulation, Part I.

(DOD 4500.9-R) Chapter 103. As of October 1, 1998, under GSA’s contracts for air passenger

transportation services, contractors aren’t eligible to use GSA’s contract city pair fares. Invitational

travel orders must not be issued for contractors to receive air fares at the Government contract city pair

fare, nor should contractor travel be issued on Government centrally billed accounts at the

Government contract fare. For more information contact:

Services Acquisition Center (FCXB)

Federal Supply Service

General Services Administration

Washington, DC 20406

(703) 305-7261

C. Discount Rail Service. AMTRAK voluntarily offers discounts to Federal travelers on official

business. These discounted rates may be extended to eligible contractors traveling on official Government

business. A contractor-issued letter of identification is required (See subpar. H).

D. Discount Hotel/Motel Practices. Several thousand lodging providers extend discount lodging rates to

federal travelers. Many currently extend their discount rates to eligible contractors traveling on official

Government business. A contractor-issued letter of identification is required (See subpar. H). For more

information contact:

GSA Travel and Transportation (9FBT-1)

450 Golden Gate Avenue, 4th Floor W

San Francisco, CA 94102

(415)522-4671

E. DOD Car Rental Practices. DOD’s Military Traffic Management Command negotiates special rate

agreements with car rental companies available to all Government employees while traveling on official

Government business. Some car rental companies offer these discount rates to eligible Government

contractors at the vendor’s option, with appropriate identification from the contracting DOD component

(See par. H). For more information contact.

Military Traffic Management Command
6

CAP Item 45-98(E) (45-98cln-11/23/98)

5661 Columbia Pike

ATTN: MTOP-QE

Falls Church, VA 22041-5050

(703)681-6393

Complaints/Discrepancies/Claims - Chris Braswell (703)681-6292

F. Vendor requirements. The vendor providing the service may require that the Government authorized

contractor furnish a letter of identification signed by the authorizing DOD component’s contracting officer.

Par. H illustrates a standard letter of identification to request eligible Government contractors use of travel

and/or transportation discounts negotiated by the Government, where available.

G. DOD Component Responsibilities. DOD components should know which hotels and car rental

companies offer Government discount rates to Government contractors and ensure that their authorized

contractors know how to obtain this information. This information is provided to and published by several

commercial publications including the Official Airline Guides Official Traveler (800) DIAL-OAG, Innovata

(800) 846-6742, and National Telecommunications (201) 928-1900. In addition, GSA contract Travel

Management Centers (TMCs) and DOD’s Commercial Travel Offices (CTOs) have this information.

All DOD components should circulate this information to contracting officers and to Government

authorized contractors, where applicable. For more information contact:

Renita Townsend Nowlin

Service Acquisition Center

Service Contracts Division (FCXB)

Crystal Mall #4, Room 506

Washington, DC 20406

(703)305-7640

H. Contractor Letter of Identification. DOD components should furnish Government contractors with

the following identification letter, for presentation to AMTRAK, hotel/motel, car rental firms and/or use of

DOD facilities (when permitted) upon request. It should be noted, however, that the vendors are under no

obligation to extend the discounted Government rates to contractors working on behalf of the Federal

Government.

OFFICIAL AGENCY LETTERHEAD

TO: Participating Vendor

SUBJECT: OFFICIAL TRAVEL OF GOVERNMENT CONTRACTORS
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CAP Item 45-98(E) (45-98cln-11/23/98)

(FULL NAME OF TRAVELER), the bearer of this letter, is an employee of (COMPANY NAME) which

has a contract with this agency under Government contract (CONTRACT NUMBER). During the period

of the contract (GIVE DATES), AND WITH THE APPROVAL OF THE CONTRACT VENDOR,

the named bearer is eligible and authorized to use available travel discount rates in accordance with

Government contracts and/or agreements. Government Contract City Pair fares are not available to

Contractors.

SIGNATURE, Title and telephone number of Contracting Officer

C6005 CITY-PAIR PROGRAM

Regulations applicable to the Contract City Pair Program are found in DoD 4500.9-R, Part I, Chapter 103,

pars. A2 and E. Following is an edited extract from that regulation.

A. POLICY

2. GSA airlift contracted through the Contract City Pair Program shall be used for Government

employees. EXCEPTION TO THE USE OF CONTRACT CARRIERS: One or more of the following

travel conditions which must be certified on the travel order, travel voucher, or other document provided

by the traveler or agency-approved authorizing official, must apply if a non-contract carrier or a contract

carrier other than the primary contractor is used for travel within a contract route. Those conditions are as

follows:

a. Space or scheduled flights aren’t available in time to accomplish the purpose of travel, or use of

contract service would require the traveler to incur unnecessary overnight lodging costs which would

increase the total cost of the trip; or

b. The contractor's flight schedule is inconsistent with explicit policies of individual federal departments

and agencies to schedule travel during normal working hours; or

c. A non-contract (DOD approved) carrier offers a lower fare available to the general public, the use of

which results in a lower total trip cost to the Government, to include the combined costs of transportation,

lodging, meals, and related expenses. NOTE: This exception doesn’t apply if the contract carrier offers a

comparable fare and has seats available at that fare, or if the lower fare offered by a noncontract carrier is

restricted to Government and military travelers on official business and only may be purchased with a

Government procurement document (e.g., a GTR), contractor issued charge cards, or centrally billed

account.

d. Rail service is available and that service is cost effective and consistent with mission requirements.
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CAP Item 45-98(E) (45-98cln-11/23/98)

e. Smoking is permitted on the contract carrier flight and the nonsmoking section of the aircraft for the

contract flight isn’t acceptable to the traveler.

f. A through fare, special fare, commutation fare, excursion fare or reduced-rate roundtrip fare is

available and;

(1) the agency determines prior to the employee’s travel that this type of service is practical and

economical to the Government; and

(2) in case of a fare that is restricted or has specific eligibility requirements, it is known or can

reasonably be anticipated, based on the travel as planned, that the ticket will be used.

E. SCHEDULED AIR CARRIERS

1. Contract air service between city pairs shall be used for all domestic travel, and for international travel

when AMC Category B isn’t available or doesn’t meet the mission requirement.

2. Cost reimbursable contractor personnel in possession of invitational travel orders are prohibited from

using Government discount fares (including Contract City Pairs fares) when purchasing commercial airline

tickets

NOTE: See JTR, par. C2001-A2c for policy regarding use of Rail or Bus service.”

Frequently asked questions about using Contract City Pair Program

1. What if I can find a cheaper fare - Can I use it?

Answer: Yes, under certain conditions. An exception to the city pair contract allows the use of lower

fares offered by non-contract carriers, provided the fares are available to the general public, i.e., not

restricted to Government travel. Once a contract is awarded, many non-contract carriers offer matching or

lower fares (e.g., DG) in an attempt to increase their share of business in the market. If travelers routinely

use these matching fares as a first choice, without considering the contract carrier, the integrity of the

entire program suffers. Carriers may choose not to participate in future contracts; thereby, causing a loss

of program benefits and creating possible higher fares for all.

2. How come I never get nonstop service from my area? I always must use a connecting flight to

my destination. My time should be factored into the costs.

Answer: Reasons for connecting service vary, but most commonly it’s a matter of no offer, or an

extremely high priced offer from a carrier with nonstop service. This program relies on carriers submitting

offers of service in a given market. If nonstop service doesn’t exist or the carriers choose not to offer,

there is little the Government can do. During the evaluation process, offers are compared to fares available

in the market to determine if it is a "smart buy" to make the award. It doesn't make much sense to contract

for a fare that is the same or higher than what is already available in the market. As to your time, it is

factored into the evaluation of offers. The evaluation process is a "greatest value concept" using price and
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CAP Item 45-98(E) (45-98cln-11/23/98)

technical trade offs to reach the best award. Items such as service, flight distribution, elapsed flying time,

and number of available flights, are considered. Contract award criteria place greater emphasis on quality

service than on price.

3. My area has 3 airports, but fares vary between each of them and certain destinations. Why?

Answer: GSA solicits CONUS markets by airport to allow the Government traveler a choice of airports

and to provide more options in flight scheduling. One reason fares vary is that a carrier may serve one

airport, but not others. Also, competition among numerous carriers serving the same airport often

produces lower fares to and from that particular airport, and in some instances, the participation of a

recognized "low price" carrier in a market can have a dramatic impact on available fares.

4. Our organization has a lot of Cost Reimbursable Contractors (CRCs). Why can't they use the

Government contract fares?

Answer: Under the terms of the GSA contract, Government contractors aren’t eligible for city pair fares

under any circumstances.

Exceptions to the Required use of Contract Carriers

One or more of the following travel conditions, which must be certified on the travel order or travel

voucher by an agency-approved authorizing official, must apply if a carrier other than the contract carrier is

used for travel with a contract route.

1. Space or scheduled flights aren’t available in time to accomplish the purpose of travel, or use of

contract service would require the traveler to incur unnecessary overnight lodging costs, which would

increase the total cost of the trip.

2. The contractor’s flight schedule is inconsistent with explicit policies of individual Federal department

and agencies or mandatory users of scheduled travel during normal working hours.

3. A noncontract (DOD approved) carrier offers a lower fare available to the general public, the use of

which results in a lower total trip cost to the Government or other mandatory user to include the combined

cost of transportation, lodging, meals, and related expenses. This exception doesn’t apply if the contract

carrier offers a comparable fare and has seats available at that fare, or if the lower fare offered by a

noncontract carrier is restricted to Government and military travelers on official business and may only be

purchased with a Government procurement document (e.g., a GTR), contractor issued charge card, or

centrally billed account.

4. Rail service is available and such service is cost effective and consistent with mission requirements.

5. Smoking is permitted on the contract flight and the nonsmoking section of the aircraft for the contract

flight is not acceptable to the traveler.
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CAP Item 45-98(E) (45-98cln-11/23/98)

6. A through fare, special fare, commutation fare, excursion fare or reduced-rate roundtrip fare is

available and;

(1) the agency determines prior to the employee’s travel that this type of service is practical and

economical to the Government; and

(2) in case of a fare that is restricted or has specific eligibility requirements, it is known or can

reasonably be anticipated, based on the travel as planned, that the ticket will be used.

(e) Revise JTR, Appendix A, Definition of employee as shown.

EMPLOYEE. The Secretary of Defense, DOD officials, or any other individual employed in or under

DOD. This definition includes an individual employed intermittently as an expert or consultant and paid on

a daily when actually employed (WAE) basis and an individual serving without pay or at $1 a year (5 U.S.

Code 5701(2)) It also includes new appointees to permanent positions outside the continental United

States (CONUS) and individuals described in par. C4050-1. A Government contractor or contractor

employee is not a Government employee.