[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]
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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]
BILLING CODE 6820-EP-P
