Federal Civilian Employee and Contractor Travel Expenses Act of 1985
PL 99-234 (S.1840), enacted 01/02/1986

99 STAT. 1756 
PUBLIC LAW 99-234—JAN. 2, 1986 
Public Law 99-234 
99th Congress 
Jan. 2, 1986 
[S. 1840] 
Federal Civilian 
Employee and 
Contractor 
Travel Expenses 
Act of 1985. 
5 u s e 5701 note. 
Regulations. 
5 u s e 5707. 
5 u s e 5703. 
Regulations. 
Regulations. 
Transportation. 
An Act 
To amend title 5, United States Code, to revise the authority relating to the payment 
of subsistence and travel allowances to Government employees for official travel; to 
prescribe standards for the allowability of the cost of subsistence and travel of 
contractor personnel under Government contracts; and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. This Act may be cited as the "Federal Civilian Em-
ployee and Contractor Travel Expenses Act of 1985". 
TITLE I—TRAVEL EXPENSES OF FEDERAL CIVILIAN 
EMPLOYEES 
SEC. 101. Section 5701(4) of title 5, United States Code, is amended 
to read as follows: 
"(4) 'per diem allowance* means a daily payment instead of 
actual expenses for subsistence and fees or tips to porters and 
stewards;". 
SEC. 102. (a) Section 5702 of title 5, United States Code, is amended 
by striking out subsections (a), (b), (c), and (d) and inserting in lieu 
thereof the following: 
"(a)(1) Under regulations prescribed pursuant to section 5707 of 
this title, an employee, when traveling on official business away 
from the employee's designated post of duty, or away from the 
employee's home or regular place of business (if the employee is 
described in section 5703 of this title), is entitled to any one of the 
following: 
"(A) a per diem allowance at a rate not to exceed that 
established by the Administrator of General Services for travel 
within the continental United States, and by the President or 
his designee for travel outside the continental United States; 
"(B) reimbursement for the actual and necessary expenses of 
official travel not to exceed an amount established by the 
Administrator for travel within the continental United States 
or an amount established by the President or his designee for 
travel outside the continental United States; or 
"(C) a combination of payments described in subparagraphs 
(A) and (B) of this paragraph. 
"(2) Any per diem allowance or maximum amount of reimburse-
ment shall be established, to the extent feasible, by locality. 
"(3) For travel consuming less than a full day, the payment 
prescribed by regulation shall be allocated in such manner as the 
Administrator may prescribe. 
"(b)(1) Under regulations prescribed pursuant to section 5707 of 
this title, an employee who is described in subsection (a) of this 
section and who abandons the travel assignment prior to its 
completion— 
"(A) because of an incapacitating illness or injury which is not 
due to the employee's own misconduct is entitled to reimburse-
ment for expenses of transportation to the employee's des-
PUBLIC LAW 99-234—JAN. 2, 1986 
99 STAT. 1757 
ignated post of duty, or home or regular place of business, as the 
case may be, and to payments pursuant to subsection (a) of this 
section until that location is reached; or 
"(B) because of a personal emergency situation (such as seri-
ous illness, injury, or death of a member of the employee's 
family, or an emergency situation such as fire, flood, or act of 
God), may be allowed, with the approval of an appropriate 
official of the agency concerned, reimbursement for expenses of 
transportation to the employee's designated post of duty, or 
home or regular place of business, as the case may be, and 
payments pursuant to subsection (a) of this section until that 
location is reached. 
"(2)(A) Under regulations prescribed pursuant to section 5707 of 
this title, an employee who is described in subsection (a) of this 
section and who, with the approval of an appropriate official of the 
agency concerned, interrupts the travel assignment prior to its 
completion for a reason specified in subparagraph (A) or (B) of 
paragraph (1) of this subsection, may be allowed (subject to the 
limitation provided in subparagraph (B) of this paragraph)— 
"(i) reimbursement for expenses of transportation to the loca-
tion where necessary medical services are provided or the emer-
gency situation exists, 
"(ii) payments pursuant to subsection (a) of this section until 
that location is reached, and 
"(iii) such reimbursement and payments for return to such 
assignment. 
"(B) The reimbursement which an employee may be allowed pur-
suant to subparagraph (A) of this paragraph shall be the employee's 
actual costs of transportation to the location where necessary 
medical services are provided or the emergency exists, and return to 
Eissignment from such location, less the costs of transportation 
which the employee would have incurred had such travel begun and 
ended at the employee's designated post of duty, or home or regular 
place of business, as the case may be. The payments which an 
employee may be allowed pursuant to subparagraph (A) of this 
paragraph shall be based on the additional time (if any) which was 
required for the employee's transportation as a consequence of the 
transportation's having begun and ended at a location on the travel 
assignment (rather than at the employee's designated post of duty, 
or home or regular place of business, as the case may be). 
"(3) Subject to the limitations contained in regulations prescribed 
pursuant to section 5707 of this title, an employee who is described 
in subsection (a) of this section and who interrupts the travel 
assignment prior to its completion because of an incapacitating 
illness or injury which is not due to the employee's own misconduct 
is entitled to payments pursuant to subsection (a) of this section at 
the location where the interruption occurred.". 
(b) Section 5702 of such title is further amended by redesignating 
subsection (e) as subsection (c). 
SEC. 103. (a) Subchapter I of chapter 57 of title 5, United States 
Code, is amended by inserting after section 5706 the following new 
section: 
"§ 5706a. Subsistence and travel expenses for threatened law 
enforcement personnel 
"(a) Under regulations prescribed pursuant to section 5707 of this 
title, when the life of an employee who serves in a law enforcement. 
Regulations. 
5 use 5707. 
Transportation. 
Regulations. 
5 u s e 5707. 
Ante, p. 1756. 
5 use 5706a. 
Regulations. 
5 use 5707. 
99 STAT. 1758 
PUBLIC LAW 99-234—JAN. 2, 1986 
Regulations. 
Effective date. 
Ante, pp. 1756, 
1757. 
Transportation. 
Expiration date. 
Regulations. 
Ante, p. 1756. 
5 use 5734. 
investigative, or similar capacity, or members of such employee's 
immediate family, is threatened as a result of the employee's as-
signed duties, the head of the agency concerned may approve appro-
priate subsistence payments for the employee or members of the 
employee's family (or both) while occupying temporary living accom-
modations at or away from the employee's designated post of duty. 
"(b) When a situation described in subsection (a) of this section 
requires the employee or members of the employee's family (or both) 
to be temporarily relocated away from the employee's designated 
post of duty, the head of the agency concerned may approve 
transportation expenses to and from such alternate location.". 
(b) The analysis for chapter 57 of title 5, United States Code, is 
amended by inserting after the item pertaining to section 5706 the 
following new item: 
"5706a. Subsistence and travel expenses for threatened law enforcement 
personnel.". 
SEC. 104. Section 5707 of title 5, United States Code, is amended— 
(1) by inserting "(1)" immediately after "(a)"; 
(2) by inserting the following at the end of subsection (a): 
"(2) Regulations promulgated to implement section 5702 or 5706a 
of this title shall be transmitted to the appropriate committees of 
the Congress and shall not take effect until 30 days after such 
transmittal."; and 
(3) by inserting at the end thereof the following new subsection: 
"(c)(1) The Administrator of General Services shall periodically, 
but at least every 2 years, submit to the Director of the Office of 
Management and Budget an analysis of estimated total agency 
payments for such items as travel and transportation of people, 
average costs and duration of trips, and purposes of official travel; 
and of estimated total agency pa5niients for employee relocation. 
This analysis shall be based on a sampling survey of agencies each of 
which spent more than $5,000,000 during the previous fiscal year on 
travel and transportation payments, including payments for em-
ployee relocation. Agencies shall provide to the Administrator the 
necessary information in a format prescribed by the Administrator 
and approved by the Director. 
"(2) The requirements of paragraph (1) of this subsection shall 
expire upon the Administrator's submission of the analysis that 
includes the fiscal year that ends September 30,1991.". 
SEC. 105. Section 5724a of title 5, United States Code, is amended— 
(1) by striking out "instead of each place it appears in 
subsections (a)(1) and (aX2) and inserting in lieu thereof "or"; 
(2) by striking out "maximum per diem rates prescribed by or 
under section 5702 of this title" each place it appears and 
inserting in lieu thereof "maximum pa3anent permitted under 
regulations which implement section 5702 of this title"; and 
(3) by striking out "average daily rates" in subsection (aX3) 
and inserting in lieu thereof "daily rates and amounts". 
SEC. 106. (a) Subchapter II of chapter 57 of title 5, United States 
Code, is amended by adding at the end thereof the following new 
section: 
"§ 5734. Travel, transportation, and relocation expenses of em-
ployees transferred from the Postal Service 
"Notwithstanding the provisions of any other law, officers and 
employees of the United States Postal Service promoted or trans-
PUBLIC LAW 99-234—JAN. 2, 1986 
99 STAT. 1759 
ferred under section 1006 of title 39, United States Code, from the 
Postal Service to an agency (as defined in section 5721 of this title), 
5 U
S
C 5721. 
for permanent duty may be authorized travel, transportation, and 
relocation expenses and allowances under the same conditions and 
to the same extent authorized by this subchapter for other trans-
ferred employees within the meaning of this chapter.". 
(b) The analysis for chapter 57 of title 5, United States Code, is 
amended by inserting after the item relating to section 5733 the 
following new item: 
"5734. Travel, transportation, and relocation expenses of employees transferred 
from the Postal Service.". 
SEC. 107. (a) Section 7(e) of the Technology Assessment Act of 1972 Regulations. 
(2 U.S.C. 476(e)) is amended by striking out "a per diem in lieu of 
subsistence at not to exceed the rate prescribed in sections 5702 
and" and inserting in lieu thereof "payments when traveling on 
official business at not to exceed the payment prescribed in regula-
tions implementing section 5702 and in". 
(b) Section 636(g)(2) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2396(g)) is amended by striking out "5702(c)" and inserting in 
lieu thereof "5702". 
(c) Section 4941(d)(2)(G)(vii) of the Internal Revenue Code of 1954 
(26 U.S.C. 4941(d)(2)(G)(vii)) is amended by striking out "5702(a)" and 
inserting in lieu thereof "5702". 
(d) Section 456(a) of title 28, United States Code, is amended by Regulations, 
striking out "a per diem allowance for travel at the rate which the 
Director establishes not to exceed the maximum per diem allowance 
fixed by section 5702(a) of title 5, or in accordance with regulations 
which the Director shall prescribe with the approval of the Judicial 
Conference of the United States, reimbursement for his actual and 
necessary expenses of subsistence not in excess of the maximum 
amount fixed by section 5702 of title 5" and inserting in lieu thereof 
the following: "payments for subsistence expenses at rates or in 
amounts which the Director establishes, in accordance with regula-
tions which the Director shall prescribe with the approval of the 
Judicial Conference of the United States and after considering the 
rates or amounts set by the Administrator of General Services and 
the President pursuant to section 5702 of title 5". 
Ante, p. 1756. 
(e) Section 3260t)) of title 31, United States Code, is amended by 
striking out "rates" and inserting in lieu thereof "rates and 
amounts". 
(f) Section 6 of Public Law 90-67 (42 U.S.C. 2477) is amended by 
striking out "rates" and inserting in lieu thereof "rates £ind 
amounts". 
TITLE II—TRAVEL EXPENSES OF GOVERNMENT 
CONTRACTORS 
SEC. 201. The Office of Federal Procurement Policy Act (41 U.S.C. 
401 et seq.) is amended by adding at the end thereof the following 
new section: 
TRAVEL EXPENSES OF GOVERNMENT CONTRACTORS 
"SEC. 24. Under any contract with any executive agency, costs 
incurred by contractor personnel for travel, including costs of lodg-
ing, other subsistence, and incidental expenses, shall be consider^ 
to be reasonable and allowable only to the extent that they do not 
exceed the rates and amounts set by subchapter I of chapter 57 of 
41 USC 420. 
Regulations. 
99 STAT. 1760 
PUBLIC LAW 99-234—JAN. 2, 1986 
5 u s e 5701 
et seq. 
98 Stat. 1195. 
42 u s e 403. 
Study. 
Transportation. 
Report. 
Regulations. 
5 u s e 5701 note. 
title 5, United States Code, or by the Administrator of General 
Services or the President (or his designee) pursuant to any provision 
of such subchapter. This section shall be implemented in regulations 
prescribed as a part of the single system of Government-wide 
procurement regulations as defined in section 4 of this Act.". 
SEC. 202. The Administrator for Federal Procurement Policy, in 
consultation with the Secretary of Defense and the Administrator of 
General Services, shall undertake a study to determine whether 
limitations should be placed on payments by executive agencies to 
Government contractors for costs incurred by contractor employees 
for transportation and relocation. The Administrator for Federal 
Procurement Policy shall submit within 180 days after the enact-
ment of this Act a report thereon to the appropriate committees of 
the Congress. 
TITLE III—EFFECTIVE DATE 
SEC. 301. (a) The Administrator of General Services shall promul-
gate regulations implementing the amendments made by sections 
101, 102, 103, 104, and 106 of this Act not later than 150 days after 
the date of enactment of this Act. The amendments made by title I 
of this Act shall take effect on the effective date of such regulations, 
or 180 days after the date of enactment of this Act, whichever occurs 
first. 
(b) The amendments made by section 201 of this Act shall take 
effect 30 days after the effective date of the amendments made by 
title I. 
Approved January 2, 1986. 
LEGISLATIVE HISTORY—S. 1840: 
eONGRESSIONAL REeORD, Vol. 131 (1985): 
Dec. 19, considered and passed Senate and House.