[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Rules and Regulations]
[Pages 31657-31658]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14536]



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DEPARTMENT OF DEFENSE
48 CFR Part 31

[FAC 90-39; FAR Case 93-022; Item XXI]
RIN 9000-AG00


Federal Acquisition Regulation; Travel Costs

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council (CAAC) and the Defense 
Acquisition Regulations Council (DARC) have agreed on a final rule to 
amend the Federal Acquisition Regulation (FAR) to specify the 
documentation required to support the allowability of contractors' 
claimed travel costs. This regulatory action was subject to Office of 
Management and Budget review under Executive Order 12866, dated 
September 30, 1993. It is not a major rule under 5 U.S.C. 804.

EFFECTIVE DATE: August 19, 1996.

FOR FURTHER INFORMATION CONTACT: Mr. Jeremy F. Olson at (202) 501-3221 
in reference to this FAR case. For general information, contact the FAR 
Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-39, FAR case 93-022.

SUPPLEMENTARY INFORMATION:

A. Background

    A proposed rule was published in the Federal Register at 59 FR 
47777, September 16, 1994, because the CAAC and the DARC determined 
that the FAR did not adequately specify what documentation is required 
to support travel costs incurred under Government contracts. The rule 
reflects a recommendation made by the Office of Federal Procurement 
Policy SWAT Team on Civilian Agency Contracting in its report of 
December 3, 1992, entitled ``Improving Contracting Practices and 
Management Controls on Cost-Type Federal Contracts,'' which found that 
agencies were having difficulty because the travel cost principle is 
silent on the documentation requirements.
    The rule amends FAR 31.205-46 by adding paragraph (a)(7) which sets 
forth specific documentation criteria for travel costs. The major 
difference between the final rule and the proposed rule is that the 
final rule strikes the reference to ``time'' and adds a parenthetical 
after ``place'' in (a)(7)(i) to make the rule consistent with similar 
requirements already imposed by section 274 of the Internal Revenue 
Code for claiming costs for Federal tax purposes (26 U.S.C. 274(d)). 
The final rule also coincides with guidance currently contained in the 
Defense Contract Audit Manual (CAM) at CAM 7-1002.2.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., because most contracts awarded 
to small entities are awarded on a competitive, fixed-price basis and 
the cost principles do not apply. No comments were received on the 
impact of this rule on small entities during the public comment period.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 31

    Government procurement.

    Dated: June 4, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Part 31 is amended as set forth below:

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES

    1. The authority citation for 48 CFR Part 31 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Section 31.205-46 is amended--
    (a) By adding a heading to paragraph (a) and by revising paragraph 
(a)(1);
    (b) By revising the first sentence of paragraph (a)(3)(iv); and
    (c) By adding paragraph (a)(7) immediately preceding paragraph (b) 
to read as follows:


31.205-46  Travel costs.

    (a) Costs for transportation, lodging, meals, and incidental 
expenses. (1) Costs incurred by contractor personnel on official 
company business are allowable, subject to the limitations contained in 
this subsection. Costs for transportation may be based on mileage 
rates, actual costs incurred, or on a combination thereof, provided the 
method used results in a reasonable charge. Costs for lodging, meals, 
and incidental expenses may be based on per diem, actual expenses, or a 
combination thereof, provided the method used results in a reasonable 
charge.
* * * * *
    (3) * * *
    (iv) Documentation to support actual costs incurred shall be in 
accordance with the contractor's established practices, subject to 
paragraph (a)(7) of this subsection, and provided that a receipt is 
required for each expenditure in excess of $25.00. * * *
* * * * *

[[Page 31658]]

    (7) Costs shall be allowable only if the following information is 
documented:
    (i) Date and place (city, town, or other similar designation) of 
the expenses;
    (ii) Purpose of the trip; and
    (iii) Name of person on trip and that person's title or 
relationship to the contractor.

[FR Doc. 96-14536 Filed 6-19-96; 8:45 am]
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