June 29, 1998
FINANCIAL ADMINISTRATION MEMORANDUM NO. 98-014 (II.G.1.)
To: Bureau Assistant Directors, Administration
Director, Office of Administrative Services
Bureau Finance Officers
Finance Officer, Financial Management Services
From: Focus Leader, Asset and Debt Management
Office of Financial Management
Subject: Use of Government Contract Fares and Government Travel
Authorizations By Departmental Contractors and Employees of
Departmental Contractors
This Financial Administration Memorandum (FAM) is being issued in
response to several inquiries we have received regarding propriety of
providing agency travel authorizations or agency procured Government
contract rate transportation tickets to Departmental contractors and
employees of Departmental contractors.
The contracts and agreements entered into by the General Services
Administration and the Department of Defense for passenger
transportation, car rentals, and lodging facilities require the
contractors/vendors to provide the service/accommodations to
Government travelers on official business when available; however,
these contracts and agreements do not cover Government contractors and
their employees. Consequently, the contractors/vendors are not
required to make contract fares and rates available to Government
contractors and their employees, but may do so at their option.
Government contractors should be issued a letter of identification
(sample attached), and not a travel authorization, to assist in
obtaining reduced fares and rates. Contract fare tickets, rentals,
lodging accommodations and travel advances are not to be procured for
contractors and their employees. Departmental contractors should
procure the services and be reimbursed, if the contract authorizes
reimbursement. Issuance of a travel authorization or direct
procurement of the service to conceal the employer or imply that the
person meets the requirements of 5 U.S.C. 5703 is improper and must be
avoided.
Travel authorizations are not be issued to anyone not meeting the
definition of an employee as stated in 5 U. S. C. 5703, which requires
providing a direct service to the Government or another specific
statutory authority providing for direct payment of travel expenses to
an individual. If the Government pays a fee for a person's service
and does not report the payment on a W-2, in most instances the person
is a contractor and not an employee. When a person is authorized to
travel on a travel authorization, the Government must not be bound to
pay a third party for the services provided, since this would
constitute a contractual relationship and not an employee/employer
relationship.
The Government must assume the responsibilities of an employer for all
personnel authorized to travel on a Government travel authorization.
This includes responsibility for injury as well as the possibility for
liability for damaged property. Therefore, travel authorizations
should not be issued until the employee/employer relationship is
verified.
Should you have questions or require additional information on this
subject, please contact Lesley Oden on (202) 208-5223.
/s/
William E. Webber
Attachment
Prior Financial Administration
Memorandum on this Subject:
No. 98-012 (II.G.1.), June 23, 1998 - Active
