Best Practices To Achieve Best Practices To Achieve Government Travel Budget Savings Government Travel Budget Savings

EdCon 2012 EdCon 2012

Certified Government Travel Professional Certified Government Travel Professional Master’s Class Master’s Class

Daniel M. Carozza - CGTP, CRP Daniel M. Carozza - CGTP, CRP Department Of The TreasuryDepartment Of The TreasuryBureau Of The Public Debt Bureau Of The Public Debt

Administrative Resource Center Administrative Resource Center

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Executive Orders Reduce Executive Orders Reduce Government Travel Budgets Government Travel Budgets

11/09/2011 - Executive Order – 11/09/2011 - Executive Order – “Promoting Efficient Spending”. “Promoting Efficient Spending”.

Travel budget reductions of not less than 20% below Travel budget reductions of not less than 20% below FY 2010 budget totals. FY 2010 budget totals.

05/11/2012 - Executive Order – 05/11/2012 - Executive Order – “Promoting Efficient Spending To “Promoting Efficient Spending To Support Agency Operations”. Support Agency Operations”.

Mandatory 30% reduction in travel budgets from FY 10 Mandatory 30% reduction in travel budgets from FY 10 levels levels starting in FY 13.*starting in FY 13.*

*Reductions to be maintained from 2013 thru 2016. *Reductions to be maintained from 2013 thru 2016.

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Impact of ReductionsImpact of Reductions

•Reduced number and/or frequency of trips.Reduced number and/or frequency of trips.– Some in person trips replaced with virtual trips. Some in person trips replaced with virtual trips.

•Fewer mission critical and customer/vendor trips. Fewer mission critical and customer/vendor trips. – Agency mission or business could suffer if trips cut. Agency mission or business could suffer if trips cut.

•Reduced training/conference attendance. Reduced training/conference attendance. – Professional development, peer interaction, and access Professional development, peer interaction, and access

to best practices information could be limited. to best practices information could be limited.

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Compliance StrategyCompliance Strategy

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Enforce Existing Regulations Enforce Existing Regulations

Approving Officials – Approving Officials – – Verify the need for travel. Verify the need for travel. – Evaluate alternatives (telephone or video conferences, virtual meetings). Evaluate alternatives (telephone or video conferences, virtual meetings).

Travelers/Approvers – Travelers/Approvers – The Federal Travel Regulation (FTR) requires travelers The Federal Travel Regulation (FTR) requires travelers and approvers to spend money wisely (Prudent Person Rule). 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 You must exercise the same care in incurring expenses that a prudent person would exercise if traveling on personal business”.person would exercise if traveling on personal business”.

(The FTR for civilian agencies or the JFTR and JTR for DOD military and (The FTR for civilian agencies or the JFTR and JTR for DOD military and civilian employees share this provision). civilian employees share this provision).

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Enforce Existing Regulations Enforce Existing Regulations Hypothetical Trip - Hypothetical Trip - FTR Compliant FTR Compliant

Expense Detail Expense Detail Expense Total Expense Total

POV to regional airport POV to regional airport $ 116.00 $ 116.00Lodging at regional airport night before early flight Lodging at regional airport night before early flight 136.00 136.00Airport Red Lot parking @ $ 6 per day Airport Red Lot parking @ $ 6 per day 30.00 30.00YCA Government City Pair Fare (round-trip) YCA Government City Pair Fare (round-trip) 424.00 424.002 checked bags ($25/$35)2 checked bags ($25/$35) 60.00 60.00Rental car in Las VegasRental car in Las Vegas 150.00 150.00Per diem rate lodging Las VegasPer diem rate lodging Las Vegas 495.00 495.00Telephone calls home Telephone calls home 50.00 50.00Conference ends at noon – extra lodging/M&IE Las Vegas Conference ends at noon – extra lodging/M&IE Las Vegas 170.00 170.0033rdrd bag fee for conference material bag fee for conference material 100.00 100.00Total Total $ 1,732.00 $ 1,732.00

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Enforce Existing Regulations Enforce Existing Regulations Approver Discretion Applied Approver Discretion Applied

For illustrative purposes only For illustrative purposes only – limiting – limiting authorizations may not be appropriate or authorizations may not be appropriate or

prudent in every case. prudent in every case. 7

Top 10 Best PracticesTop 10 Best PracticesGovernment Travel Policy Government Travel Policy

Implement best practices for a sound managed travel program Implement best practices for a sound managed travel program that attains travel budget savings. that attains travel budget savings.

Important Federal Travel Regulation (FTR) ProvisionsImportant Federal Travel Regulation (FTR) Provisions: : •The FTR requires agencies to formulate policies in specific areasThe FTR requires agencies to formulate policies in specific areas.

•Agency policies can be stricter than the FTR, but never more lenient.Agency policies can be stricter than the FTR, but never more lenient. – – there is no statutory authority to exceed legislative limits by there is no statutory authority to exceed legislative limits by agency policy or expense authorization. agency policy or expense authorization.

•The FTR has the force and effect of law.The FTR has the force and effect of law.– FTR provisions may not be waived by travelers or approving FTR provisions may not be waived by travelers or approving officials. Numerous CBCA/GAO decisions support this. officials. Numerous CBCA/GAO decisions support this.

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Best Practice #1 Best Practice #1 Airport ChoiceAirport Choice

The agency, not the traveler decides how to route travel. Look at The agency, not the traveler decides how to route travel. Look at alternatives, but keep in mind mission requirements and common sense. alternatives, but keep in mind mission requirements and common sense.

•Departure airports for Parkersburg Departure airports for Parkersburg - Columbus, Pittsburgh, Akron/Canton, Columbus, Pittsburgh, Akron/Canton, Charleston, Parkersburg, Clarksburg, or Huntington. Charleston, Parkersburg, Clarksburg, or Huntington. •Departure airports for Washington Departure airports for Washington - National, Dulles, and Baltimore-Wash. - National, Dulles, and Baltimore-Wash.

Major cities with multiple airports/varying costs: Major cities with multiple airports/varying costs: Houston Houston Houston or Hobby Houston or Hobby Los Angeles Los Angeles LAX, Ontario, Burbank, Orange County LAX, Ontario, Burbank, Orange County ChicagoChicago O’Hare, Midway O’Hare, Midway New York New York JFK, LaGuardia, Newark JFK, LaGuardia, Newark Washington Washington National, Dulles, Baltimore-Washington Int. National, Dulles, Baltimore-Washington Int.

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Best Practice #1 Example Best Practice #1 Example Airport Choice Determines Cost Airport Choice Determines Cost

Airport City PairsAirport City Pairs GSA (YCA) Fare GSA (YCA) Fare GSA (-CA ) FareGSA (-CA ) Fare Contract Carrier Contract Carrier

CMH - ATL 158 118

PIT - ATL 109 N/A

CAK - ATL 138 N/A

CRW - ATL 449 249

Parkersburg Area to Atlanta

Airport City Pairs GSA (YCA) Fare GSA (- CA) Fare Contract Carrier

BWI – ATL 129 N/A

IAD – ATL 143 94

DCA – ATL 187 142

Washington Area to Atlanta

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Best Practice # 2Best Practice # 2Discounted GSA City Pair Airfare Discounted GSA City Pair Airfare

Create an agency policy to require travelers to take the Create an agency policy to require travelers to take the discounted City Pair fare in markets where both fares exist. discounted City Pair fare in markets where both fares exist.

•Travelers may need education that both fares are the same seat on the same 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. aircraft but the discounted fare saves money. Both are fully refundable.

•Travelers may not select the a higher priced contract fare to maximize frequent 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. traveler points or in order to upgrade to a higher class of service using their points.

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Best Practice # 3Best Practice # 3Baggage Fee Policy Baggage Fee Policy

Baggage fees apply to GSA City Pair contract airfares and are reimbursable. 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 Approvers should generally limit one checked bag for trips lasting two to four days. *days. *•Encourage travelers to join airline frequent flier programs that allow free Encourage travelers to join airline frequent flier programs that allow free baggage with a certain level of points or member status. 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 (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 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–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 70.301). Travelers should verify their agency's current policies and procedures regarding excess baggage prior to traveling;… excess baggage prior to traveling;…

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Best Practice # 4 Best Practice # 4 Transportation At TDY LocationTransportation At TDY Location

Require travel approvers to ensure transportation is limited by Require travel approvers to ensure transportation is limited by availability and mission need according to this hierarchy:availability and mission need according to this hierarchy:

Free hotel/courtesy transportation as a first choice, if readily available. Free hotel/courtesy transportation as a first choice, if readily available.

Low cost paid transportation - commercial shuttle/public Low cost paid transportation - commercial shuttle/public transportation. transportation.

Taxi cabs only if paid or free transportation is not available. 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.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, (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) may depend on mission need with advanced authorization and approval)

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Best Practice # 5 Best Practice # 5 Lodging PolicyLodging Policy

““Government Rates” for lodging are set by hotels, not the Government. Government Rates” for lodging are set by hotels, not the Government. Government rates can be Government rates can be at or above at or above the established per diem rate for the the established per diem rate for the TDY location involved. TDY location involved.

The FTR asks travelers to give first consideration to The FTR asks travelers to give first consideration to FedRooms rates are guaranteed to be FedRooms rates are guaranteed to be at or BELOW at or BELOW the per diem rate. the per diem rate. In a In a down economy, most FedRooms hotels have reduced their rates to be well down economy, most FedRooms hotels have reduced their rates to be well under the per diem rate (average of 17% below). under the per diem rate (average of 17% below).

•If there is no mission reason to stay at a specific hotel, require travel 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 to promote the use of FedRooms as a cost savings means.

•Approvers must verify any ETS/DTS justifications that may have been Approvers must verify any ETS/DTS justifications that may have been selected to not use a FedRooms property (verify your agency policy on this selected to not use a FedRooms property (verify your agency policy on this point). point).

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Best Practice # 6 Best Practice # 6 Telephone Calls Telephone Calls

Update telephone call policy to encourage Update telephone call policy to encourage phone card use rather than claim business and phone card use rather than claim business and authorized calls home the travel voucher. authorized calls home the travel voucher.

Telephone card costs are applied to the Telephone card costs are applied to the communications and not travel budget. Costs communications and not travel budget. Costs are not claimed on the travel voucher. are not claimed on the travel voucher.

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Best Practice #7 Best Practice #7 Airport Parking Airport Parking

Travelers should use the least expensive airport Travelers should use the least expensive airport long term parking option when available. long term parking option when available. ExampleExample: If departing from Port Columbus Airport, require travelers to use : If departing from Port Columbus Airport, require travelers to use the new green long term shuttle lot over the red or blue lots when the new green long term shuttle lot over the red or blue lots when available. available.

This applies to any airport that has discounted This applies to any airport that has discounted parking lots – most now have this option. parking lots – most now have this option.

Green lot Green lot $ 4 per day$ 4 per day

Red lot Red lot $ 6 per day$ 6 per day

Blue lot Blue lot $ 7-9 per day$ 7-9 per day

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Best Practice # 8 Best Practice # 8 Plan Trips In Advance Plan Trips In Advance

• Use ETS/DTS: Use ETS/DTS: Make reservations in ETS/DTS Make reservations in ETS/DTS together to avoid calling TMC/CTO later at together to avoid calling TMC/CTO later at the higher agent-assisted transaction fee. the higher agent-assisted transaction fee.

• Plan Ahead: Plan Ahead: Make reservations early to take Make reservations early to take advantage of discounted City Pair rates. advantage of discounted City Pair rates.

• Ask For Help: Ask For Help: Contact your agency Travel Contact your agency Travel Office or Help Desk for assistance. Office or Help Desk for assistance.

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Best Practice # 9 Best Practice # 9 Think “Out Of The Box” For SavingsThink “Out Of The Box” For Savings

• Coordinate Agency Trips: Coordinate Agency Trips: share costs if travelers can ride together.share costs if travelers can ride together. • Combine Traveler Trips: Combine Traveler Trips: traveler can have 2 destinations in some cases.traveler can have 2 destinations in some cases.• Remote Attendance : Remote Attendance : useuse conference calls, WebEx, etc. conference calls, WebEx, etc. • Non-Traditional Transportation: Non-Traditional Transportation: - Consider bus lines. For Parkersburg, - Consider bus lines. For Parkersburg,

Mega Bus Mega Bus from Morgantown to Washington ($14 each way); from Morgantown to Washington ($14 each way); Go Bus Go Bus from PKB/Athens/Columbus/ CIN/. Traveler that do not like to drive or from PKB/Athens/Columbus/ CIN/. Traveler that do not like to drive or fly give good feedback. Other cities have similar lines. fly give good feedback. Other cities have similar lines.

• Gain Sharing Gain Sharing – travelers/agency share savings (if benefits > costs.) Some – travelers/agency share savings (if benefits > costs.) Some agencies have programs, but others think administration too costly. agencies have programs, but others think administration too costly.

• Share best practice ideas Share best practice ideas withwith GSA, other agencies, and peers at SGTP. GSA, other agencies, and peers at SGTP. • Take the CGTP class Take the CGTP class to learn more best practices for Government travel. to learn more best practices for Government travel. • Post policies and tips Post policies and tips on your travel guidance website. on your travel guidance website. • Create a travel newsletter Create a travel newsletter and/or send direct emails. and/or send direct emails.

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Best Practice #10Best Practice #10Travel Policy Training NeededTravel Policy Training Needed

Approvers and travelers make these common post payment audit Approvers and travelers make these common post payment audit errors and/or ask these types of questions about travel policy. This errors and/or ask these types of questions about travel policy. This demonstrates the need for periodic travel policy training. demonstrates the need for periodic travel policy training.

•Authorized both rental car and taxi at TDY location. Authorized both rental car and taxi at TDY location. •Actual expenses allowed when lodging available at per diem. Actual expenses allowed when lodging available at per diem. •Lodging - “Gov. Rate” at per diem but FedRooms under per diem. Lodging - “Gov. Rate” at per diem but FedRooms under per diem. •Cheaper non-contract fare used; trip canceled – results in unused tickets Cheaper non-contract fare used; trip canceled – results in unused tickets or high change fees. (contract fare is refundable) or high change fees. (contract fare is refundable) •Departed from one regional airport for personal reasons but other Departed from one regional airport for personal reasons but other regional airports were cheaper. regional airports were cheaper. •Taxi authorized when free hotel shuttle was available. Taxi authorized when free hotel shuttle was available. •Higher priced airport parking used over cheaper alternatives. Higher priced airport parking used over cheaper alternatives. •Personal and official travel combined but no cost comparison. Personal and official travel combined but no cost comparison. •Not using the ETS/DTS for reservations. Not using the ETS/DTS for reservations. •Authorizing POV and not verifying if a GOV was available. Authorizing POV and not verifying if a GOV was available.

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Best Practice #10Best Practice #10Travel Policy Training Options Travel Policy Training Options

The FTR tasks approvers and travelers with knowledge of the FTR, but The FTR tasks approvers and travelers with knowledge of the FTR, but there is no training requirement. there is no training requirement. Traveler & approver training is the key to Traveler & approver training is the key to applying existing regulations and best practices to reduce travel spend. applying existing regulations and best practices to reduce travel spend. Agencies should consider: Agencies should consider:

GSA FTR Training ClassesGSA FTR Training Classes Agency FTR 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 ComplianceFormula For Compliance

Enforce FTR and Agency Specific Travel Policies Enforce FTR and Agency Specific Travel Policies ++

Add Best Practices To Your Agency PolicyAdd Best Practices To Your Agency Policy++

Provide Traveler/Approver Policy TrainingProvide Traveler/Approver Policy Training==

Travel Budget Savings & OMB ComplianceTravel Budget Savings & OMB Compliance

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Thank You!Thank You!

Feel free to contact me if you have any questions Feel free to contact me if you have any questions or comments: or comments:

Dan CarozzaDan Carozzadan.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 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. necessarily reflect any position of the Government or my agency.

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