News Releases
GSA's City Pair Airline Contracts Expected to Save the Government Over $2B in FY03GSA # 9974 August 8, 2002
GSA recently negotiated rates with 14 U.S. airlines for official Federal government travelers on 4,359 domestic and 638 international routes. In addition, the City Pair contracts will continue to make hassle-free tickets available to Federal travelers at 72% less than unrestricted coach fares offered to the general public. "For fiscal year 2003, these contracts are expected to save the government more than $2 billion," said Donna Bennett, Commissioner of GSA's Federal Supply Service. Each year, GSA's Federal Supply Service awards contracts for air transportation services for official government travel under the City Pair program. The contracts are competitively awarded, based on the best overall value to the Government. Average flight time, offered price, type of service, flight distribution, and numbers of flights are all considered in determining the best value. This year the dual fare test (capacity controlled and unrestricted) was expanded to include considerably more markets than last year. Capacity controlled fares will be available on a first-come, first-served basis that will allow Government travelers to save additional dollars when they book tickets early. In addition, unrestricted contract fares will continue to be available to the government in all markets. GSA's City Pair Program continues to give Federal travelers' several other advantages over commercial restricted coach fares. Some of the biggest advantages are fully refundable tickets, no charge for cancellations or for schedule changes, and no change in the unrestricted fare price throughout the length of the contract, enabling agencies to better plan their travel budgets. The contract awards and prices are effective October 1, 2002 through September 30, 2003. Under the City Pair Program, two contract rates are awarded, an unrestricted fare and a capacity controlled fare. For example: Controlled New York LaGuardia/Reagan Washington National $ 34 not offered Discounts are generally greater in larger markets. In the evaluation criteria this year, considerable weight was given to customers' strong preference for non-stop service. Non-stop service was awarded in 1,732 markets. Awards were made to the following airlines: Carrier City Pair Estimated $ Value Delta Air Lines 1,199 $ 257,109,162 TOTALS 4,997 $1,077,177,814 GSA is a centralized Federal procurement and property agency responsible for providing office space, supplies and services for the Federal government. Since its creation in 1949, the agency has evolved from a mandatory supplier of space and products for Federal civilian agencies to a non-mandatory provider of competitively priced, high-quality office space, commercial products and services, and military and civilian workforce solutions. Index of News Releases
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