Best Practices To Achieve
Government Travel Budget Savings
EdCon 2012
Certified Government Travel Professional
Master’s Class
Daniel M. Carozza - CGTP, CRP
Department Of The Treasury
Bureau Of The Public Debt
Administrative Resource Center
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Executive Orders Reduce
Government Travel Budgets
11/09/2011 - Executive Order – “Promoting Efficient Spending”.
Travel budget reductions of not less than 20% below
FY 2010 budget totals.
05/11/2012 - Executive Order – “Promoting Efficient Spending To
Support Agency Operations”.
Mandatory 30% reduction in travel budgets from FY 10 levels
starting in FY 13.*
*Reductions to be maintained from 2013 thru 2016.
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Impact of Reductions
•Reduced number and/or frequency of trips.
– Some in person trips replaced with virtual trips.
•Fewer mission critical and customer/vendor trips.
– Agency mission or business could suffer if trips cut.
•Reduced training/conference attendance.
– Professional development, peer interaction, and access
to best practices information could be limited.
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Compliance Strategy
1. Enforce
Existing Travel
Regulations
4. Goal
Achieved:
2. Apply Best
Travel
Practices
Travel Budget
Savings
Realized
3. Require
Travel Policy
Training For
Approvers
4
Enforce Existing Regulations
Approving Officials –
– Verify the need for travel.
– Evaluate alternatives (telephone or video conferences, virtual meetings).
Travelers/Approvers – The Federal Travel Regulation (FTR) requires travelers
and approvers to spend money wisely (Prudent Person Rule).
§ 301-2.3 What standard of care must I use in incurring travel
expenses?
“You must exercise the same care in incurring expenses that a prudent
person would exercise if traveling on personal business”.
(The FTR for civilian agencies or the JFTR and JTR for DOD military and
civilian employees share this provision).
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Enforce Existing Regulations
Hypothetical Trip - FTR Compliant
Expense Detail
POV to regional airport
Lodging at regional airport night before early flight
Airport Red Lot parking @ $ 6 per day
YCA Government City Pair Fare (round-trip)
2 checked bags ($25/$35)
Rental car in Las Vegas
Per diem rate lodging Las Vegas
Telephone calls home
Conference ends at noon – extra lodging/M&IE Las Vegas
3rd bag fee for conference material
Total
Expense Total
$ 116.00
136.00
30.00
424.00
60.00
150.00
495.00
50.00
170.00
100.00
$ 1,732.00
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Enforce Existing Regulations
Approver Discretion Applied
Expense Detail
POV to regional airport GOV
Lodging at regional airport (afternoon flight)
Airport Red Green Lot parking @ $ 6 $4 per day
YCA –CA Fare Government City Pair Fare (round-trip)
2 1 checked bags ($25/$35)
Rental car in Las Vegas Shuttle courtesy transp.
Per diem rate FedRooms lodging Las Vegas
Telephone calls Government calling card
Conference ends extra lodging/M&IE (return home)
3rd bag fee for conference material (carry on)
Totals
New Trip
Old Trip
$ 0.00
0.00
20.00
282.00
25.00
0.00
400.00
0.00
0.00
0.00
$ 116.00
136.00
30.00
424.00
60.00
150.00
495.00
50.00
170.00
100.00
$ 727.00
$ 1,732.00
For illustrative purposes only – limiting
authorizations may not be appropriate or
prudent in every case.
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Top 10 Best Practices
Government Travel Policy
Implement best practices for a sound managed travel program
that attains travel budget savings.
Important Federal Travel Regulation (FTR) Provisions:
•The FTR requires agencies to formulate policies in specific areas.
•Agency policies can be stricter than the FTR, but never more lenient.
– there is no statutory authority to exceed legislative limits by
agency policy or expense authorization.
•The FTR has the force and effect of law.
– FTR provisions may not be waived by travelers or approving
officials. Numerous CBCA/GAO decisions support this.
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Best Practice #1
Airport Choice
The agency, not the traveler decides how to route travel. Look at
alternatives, but keep in mind mission requirements and common sense.
•Departure airports for Parkersburg - Columbus, Pittsburgh, Akron/Canton,
Charleston, Parkersburg, Clarksburg, or Huntington.
•Departure airports for Washington - National, Dulles, and Baltimore-Wash.
Major cities with multiple airports/varying costs:
Houston
Houston or Hobby
Los Angeles
LAX, Ontario, Burbank, Orange County
Chicago
O’Hare, Midway
New York
JFK, LaGuardia, Newark
Washington
National, Dulles, Baltimore-Washington Int.
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Best Practice #1 Example
Airport Choice Determines Cost
Parkersburg Area to Atlanta
Airport City Pairs
GSA (YCA) Fare
GSA (-CA ) Fare
CMH - ATL
158
118
PIT - ATL
109
N/A
CAK - ATL
138
N/A
CRW - ATL
449
249
Contract Carrier
Washington Area to Atlanta
Airport City Pairs
GSA (YCA) Fare
GSA (- CA) Fare
BWI – ATL
129
N/A
IAD – ATL
143
94
DCA – ATL
187
142
Contract Carrier
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Best Practice # 2
Discounted GSA City Pair Airfare
Create an agency policy to require travelers to take the
discounted City Pair fare in markets where both fares exist.
•
Travelers may need education that both fares are the same seat on the same
aircraft but the discounted fare saves money. Both are fully refundable.
•
Travelers may not select the a higher priced contract fare to maximize frequent
traveler points or in order to upgrade to a higher class of service using their
points.
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Best Practice # 3
Baggage Fee Policy
Baggage fees apply to GSA City Pair contract airfares and are reimbursable.
•Approvers should generally limit one checked bag for trips lasting two to
four days. *
•Encourage travelers to join airline frequent flier programs that allow free
baggage with a certain level of points or member status.
* Longer trips may require another checked bag, however the approver can also
limit the bags in favor of reimbursing for laundry and dry cleaning (more than 4
consecutive days)
§ 301-12.2 What baggage expenses may my agency pay?
Your agency may reimburse expenses related to baggage as follows:
…(d) All fees pertaining to the first checked bag. In addition, charges relating to the
second and subsequent bags may be reimbursed when the agency determines those
expenses necessary and in the interest of the Government ( see §§301–70.300,
301–70.301). Travelers should verify their agency's current policies and procedures
regarding excess baggage prior to traveling;…
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Best Practice # 4
Transportation At TDY Location
Require travel approvers to ensure transportation is limited by
availability and mission need according to this hierarchy:
Free hotel/courtesy transportation as a first choice, if readily available.
Low cost paid transportation - commercial shuttle/public transportation.
Taxi cabs only if paid or free transportation is not available.
Rental cars should be a last option unless there is a mission related need.
(Note: Taxi cab and rental car are not normally authorized at the same TDY location,
may depend on mission need with advanced authorization and approval)
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Best Practice # 5
Lodging Policy
“Government Rates” for lodging are set by hotels, not the Government.
Government rates can be at or above the established per diem rate for the
TDY location involved.
The FTR asks travelers to give first consideration to
FedRooms rates are guaranteed to be at or BELOW the per diem rate. In a
down economy, most FedRooms hotels have reduced their rates to be well
under the per diem rate (average of 17% below).
•If there is no mission reason to stay at a specific hotel, require travel
approvers to promote the use of FedRooms as a cost savings means.
•Approvers must verify any ETS/DTS justifications that may have been
selected to not use a FedRooms property (verify your agency policy on this
point).
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Best Practice # 6
Telephone Calls
Update telephone call policy to encourage
phone card use rather than claim business and
authorized calls home the travel voucher.
Telephone card costs are applied to the
communications and not travel budget. Costs
are not claimed on the travel voucher.
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Best Practice #7
Airport Parking
Travelers should use the least expensive airport
long term parking option when available.
Example: If departing from Port Columbus Airport, require travelers to use
the new green long term shuttle lot over the red or blue lots when
available.
Green lot
$ 4 per day
Red lot
$ 6 per day
Blue lot
$ 7-9 per day
This applies to any airport that has discounted
parking lots – most now have this option.
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Best Practice # 8
Plan Trips In Advance
• Use ETS/DTS: Make reservations in ETS/DTS
together to avoid calling TMC/CTO later at
the higher agent-assisted transaction fee.
• Plan Ahead: Make reservations early to take
advantage of discounted City Pair rates.
• Ask For Help: Contact your agency Travel
Office or Help Desk for assistance.
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Best Practice # 9
Think “Out Of The Box” For Savings
•
•
•
•
•
•
•
•
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Coordinate Agency Trips: share costs if travelers can ride together.
Combine Traveler Trips: traveler can have 2 destinations in some cases.
Remote Attendance : use conference calls, WebEx, etc.
Non-Traditional Transportation: - Consider bus lines. For Parkersburg,
Mega Bus from Morgantown to Washington ($14 each way); Go Bus from
PKB/Athens/Columbus/ CIN/. Traveler that do not like to drive or fly
give good feedback. Other cities have similar lines.
Gain Sharing – travelers/agency share savings (if benefits > costs.) Some
agencies have programs, but others think administration too costly.
Share best practice ideas with GSA, other agencies, and peers at SGTP.
Take the CGTP class to learn more best practices for Government travel.
Post policies and tips on your travel guidance website.
Create a travel newsletter and/or send direct emails.
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Best Practice #10
Travel Policy Training Needed
Approvers and travelers make these common post payment audit
errors and/or ask these types of questions about travel policy. This
demonstrates the need for periodic travel policy training.
•Authorized both rental car and taxi at TDY location.
•Actual expenses allowed when lodging available at per diem.
•Lodging - “Gov. Rate” at per diem but FedRooms under per diem.
•Cheaper non-contract fare used; trip canceled – results in unused tickets
or high change fees. (contract fare is refundable)
•Departed from one regional airport for personal reasons but other
regional airports were cheaper.
•Taxi authorized when free hotel shuttle was available.
•Higher priced airport parking used over cheaper alternatives.
•Personal and official travel combined but no cost comparison.
•Not using the ETS/DTS for reservations.
•Authorizing POV and not verifying if a GOV was available.
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Best Practice #10
Travel Policy Training Options
The FTR tasks approvers and travelers with knowledge of the FTR, but
there is no training requirement. Traveler & approver training is the key to
applying existing regulations and best practices to reduce travel spend.
Agencies should consider:
GSA FTR Training Classes
Agency FTR Classes
On-line traveler policy classes. (approver class
in development).
Agency sponsored travel policy
overview classes
On-site traveler and approver policy classes.
Contract with GSA to come to your agency.
Provide a travel policy session at
Supervisor Orientation classes.
GSA Travel Training Website:
http://www.gsa.gov/portal/content/104478
Attend program office staff
meetings to present overviews of
travel policy and/or to address
specific policy questions.
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Formula For Compliance
Enforce FTR and Agency Specific Travel Policies
+
Add Best Practices To Your Agency Policy
+
Provide Traveler/Approver Policy Training
=
Travel Budget Savings & OMB Compliance
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Thank You!
Feel free to contact me if you have any questions
or comments:
Dan Carozza
dan.carozza@bpd.treas.gov
As in my original white paper I will also mention here that the contents of this presentation are mine personally and do not
necessarily reflect any position of the Government or my agency.
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