94-23028. Federal Acquisition Regulation; Travel Costs

[Federal Register Volume 59, Number 179 (Friday, September 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23028]


[[Page Unknown]]

[Federal Register: September 16, 1994]


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DEPARTMENT OF DEFENSE
48 CFR Part 31

[FAR Case 93-22]

 

Federal Acquisition Regulation; Travel Costs

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

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing changes to 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 
pursuant to Executive Order 12866, dated September 30, 1993.

DATES: Comments should be submitted on or before November 15, 1994 to 
be considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (VRS), 18th & F 
Streets, NW, Room 4037, Washington, DC 20405. Please cite FAR case 93-
22 in all correspondence related to this case.

FOR FURTHER INFORMATION CONTACT:
Mr. Jeremy Olson at [phone] in reference to this FAR case. For 
general information, contact the FAR Secretariat, Room 4037, GS 
Building, Washington, DC 20405 [phone]. Please cite FAR case 93-
22.

SUPPLEMENTARY INFORMATION:

A. Background

    The FAR currently does not specify what documentation is required 
by contractors in order to support travel costs incurred under 
Government contracts. As with other contract costs, the requirement to 
document travel costs, in order to determine the allowability of costs 
incurred, has been implicit and would not normally be specifically 
stated in a cost principle. However, the Councils are proposing that 
specific criteria be incorporated in the cost principle at FAR 31.205-
46 because 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,'' found that agencies are having difficulty because 
the travel cost principle is silent on the documentation requirements. 
The report had recommended several changes to the FAR which were viewed 
to have Government-wide benefit and which would make the FAR less 
general with respect to the allowability of certain costs. The Councils 
also believe that revising the FAR to include specific documentation 
criteria will help in achieving consistent treatment of such costs by 
contracting officers.
    The documentation criteria being proposed for the FAR reflect 
similar requirements already imposed by Section 274 of the Internal 
Revenue Code for claiming travel costs for Federal tax purposes (26 
U.S.C. 274(d)). There would, therefore, be no additional recordkeeping 
requirements placed on contractors. The proposed revisions also 
coincide with guidance currently contained in the Defense Contract 
Audit Agency's Contract Audit Manual (CAM) at CAM 7-1002.2.

B. Regulatory Flexibility Act

    This proposed rule clarifies a condition of cost allowability for 
contractors who wish to be reimbursed under Government contracts 
subject to FAR 31.2. The Regulatory Flexibility Act, 5 U.S.C. 601, et 
seq., applies, but the rule is not expected to have a significant 
economic impact on a substantial number of small entities because most 
contracts awarded to small entities are awarded on a competitive, 
fixed-price basis and the cost principles do not apply. An Initial 
Regulatory Flexibility Analysis has, therefore, not been performed. 
Comments from small entities concerning the affected FAR subpart will 
be considered in accordance with 5 U.S.C. 610 of the Act. Such comments 
must be submitted separately and should cite 5 U.S.C. 601, et seq. (FAR 
case 93-22), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
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: September 13, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.
    Therefore, it is proposed that 48 CFR part 31 be 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) to read as follows:


Sec. 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 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 
(a)(7) of this subsection, and provided that a receipt is required for 
each expenditure in excess of $25.00. * * *
* * * * *
    (7) Costs shall be allowable only if the following information is 
documented:
    (i) Time, date, and place of the expenses;
    (ii) Purpose of trip; and
    (iii) Name of person on trip and their title or relationship to the 
contractor.

[FR Doc. 94-23028 Filed 9-15-94; 8:45 am]
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