Request for Travel Authorization Waiver for Contractors Date: Wed, 24 Jun 1998 13:49:40 -0400 To: "AO - All Administrative Officers" X-Sender: aasabati@130.11.51.82 X-Mailer: Windows Eudora Pro Version 3.0.1 (32) Date: Thu, 02 Jul 1998 10:22:19 -0400 To: "AO - All Administrative Officers" From: "Alice A. Sabatini" Subject: Request for Travel Authorization Waiver for Contractors Cc: "Susan R Sheely, Reston, VA" , "John J Blickley, Reston, VA" , "Timothy E Calkins, Reston, VA" , "Catherine L Hill, ACH/Operations, Reston, VA" , "Alice A Sabatini, Administrative Officer, Reston, VA" , "Gary N Paulachok, District Chief, PA, Lemoyne, PA" Mime-Version: 1.0 Content-Type: text/plain; charset="us-ascii" The guidance issued on June 24, 1998 regarding travel authorizations for contractors (Attachment 2) is rescinded. The Department issued a Financial Administration Memorandum (FAM) 98-014 dated June 29, 1998 (Attachment 1) that prohibits the direct payment of travel costs for contractors. These costs may be included in the contract, but cannot be paid in advance directly to the contractor's employees. This policy has serious ramifications to our ongoing work utilizing interns from the Environmental Careers Organization and Oakridge Associates. We will begin work immediately with the Office of Financial Management and the Department to request a waiver from this policy because of the serious programmatic impacts. Attachments Attachment 1 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 (not included on this email message) Prior Financial Administration Memorandum on this Subject: No. 98-012 (II.G.1.), June 23, 1998 - Active Attachment 2 >X-Sender: aasabati@130.11.51.82 >Date: Wed, 24 Jun 1998 13:49:40 -0400 >To: "AO - All Administrative Officers" >From: "Alice A. Sabatini" >Subject: Request for Travel Authorization Waiver for Contractors >Cc: "Susan R Sheely, Reston, VA" , > "John J Blickley, Reston, VA" , > "Timothy E Calkins, Reston, VA" , > "Catherine L Hill, ACH/Operations, Reston, VA" , > "Gary N Paulachok, District Chief, PA, Lemoyne, PA" , > "Alice A Sabatini, Administrative Officer, Reston, VA" > >I have never received a response to this waiver request. The referenced >memorandum stated that the agency head had 30 days to deny the request. If >no denial is received within this time period, the initiator can assume >approval and implement the requested waiver. > >Please use this memorandum as your authority to implement the >policy/procedural change outlined in this memorandum in the Water Resources >Division. Effective immediately, contractors under the two student >experience contracts (Environmental Careers Organization and Oakridge) may >be issued annual limited open travel authorizations. > >>X-Sender: aasabati@130.11.51.82 >>Date: Wed, 13 May 1998 14:42:27 -0400 >>To: "William F Gossman Jr., Reston, VA" >>From: "Alice A. Sabatini" >>Subject: Request for Travel Authorization Waiver for Contractors >>Cc: "Susan R Sheely, Reston, VA" , >> "Timothy E Calkins, Reston, VA" , >> "John J Blickley, Reston, VA" , sao, >> "Catherine L Hill, ACH/Operations, Reston, VA" , >> "Gary N Paulachok, District Chief, PA, Lemoyne, PA" , >> "Diann E Straub, Administrative Officer, Lemoyne, PA" >> >>In Reply Refer To: >>Mail Stop 442 >> >> May 13, 1998 >> >> >> MEMORANDUM >> >>To: Acting Chief, Office of Program Support >> >>From: Alice A. Sabatini >> Administrative Officer, Water Resources Division >> >>Subject: Request for a Waiver of Travel Authorization Restrictions for >>Contractors >> >>The Water Resources Division (WRD) has an increasing number of contract >>employees working in our field offices under the Oakridge and Environmental >>Career Organization student experience contracts. Most of these >>contractors are required to travel to complete their work. The USGS was >>unsuccessful in negotiating prepayment of the travel expenses into these >>contracts because the vendors are not-for-profit entities that do not have >>the available cash flow to finance these costs. >> >>At this time, the DOI policy requires that a separate travel authorization >>be issued for each trip for non-federal employees. A trip is defined as >>the period of time between leaving and returning to the office. As most of >>these contractors work in the field the majority of their time, an >>individual travel authorization must be issued weekly. In addition, >>because most of these contractors are students and cannot afford to travel >>on their own funds, a weekly travel advance must also be issued, followed >>by a weekly travel reimbursement voucher to document the actual costs of >>the trip. For each contractor, there are 3 documents that must be prepared >>and processed each week during the field season which began this week. I >>think you can agree that this administrative work load is burdensome and >>very costly. >> >>Our Pennsylvania District had 20 contractors under these contracts last >>field season. This policy required that they prepare 60 documents per week >>for a minimum of 20 weeks in the year--a total of 1,200 documents. There >>simply must be a better way! This administrative workload has resulted in >>decreased usage of the contract this year. This is an unfortunate >>development because the qualifications of the contractors under these >>contracts were excellent and their use definitely added to the effective >>accomplishment of mission objectives. >> >>These contracts are two of a very few available to our managers to meet >>work commitments without hiring federal employees. WRD is striving to >>dramatically expand our use of contractors to increase flexibility in an >>era of decreasing and uncertain budgets. This type of administrative >>restriction is counterproductive to our achieving this goal. >> >>WRD is formally requesting a waiver of this internal requirement under the >>President's Memorandum to Agency Heads dated April 21, 1998, subject, >>"Streamlining the Granting of Waivers". We propose that contract employees >>under these two student experience contracts be permitted to travel under >>the annual limited open travel authority that requires only one travel >>authorization be issued per fiscal year. Please let me know if you require >>additional information to respond to this waiver request. >> >> > >