Of fice of Governmentwide Policy - PowerPoint Presentation

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Of fice of Governmentwide Policy

GSA’s Per Diem Rate Setting Process for the Continental United StatesTravel and Relocation Policy Office of Asset and Transportation Management

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What is included in Per Diem?

Per diem rates include the following reimbursement allowances for Federal travelers:

Lodging

Meals: Breakfast, lunch and dinner

Incidentals expenses: Fees and tips (excluding tips for taxis, airport shuttles, etc.)

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GSA’s Authority to set Per Diem

In accordance with 5 U.S.C. 5702, GSA sets per diemrates to fairly reimburse Federal employees for their expenses while traveling to achieve their agencies’missions. 5 U.S.C. Section 5702 (a)(1)(A) and (B) state that employees are entitled to a per diem allowance at a rate not to exceed that established by the Administrator of General Services for travel within the continental United States….…reimbursement for the actual and necessary expenses of official travel not to exceed an amount established by the Administrator [of GSA] for travel within the continental United States…”

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Meals & Incidental Expense Definitions

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From the Federal Travel Regulation, §300-3.1

Per diem…

(b) 

Meals.

Expenses for breakfast, lunch, dinner and related tips and taxes (specifically excluded are alcoholic beverage and entertainment expenses, and any expenses incurred for other persons).

(c) 

Incidental expenses

. Fees and tips given to porters, baggage carriers, hotel staff, and staff on ships.

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M&IE History

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Previous Advisory Committee recommended review of meals rates every five years

Last nationwide survey conducted in FY2009

-Effective FY2010

-Most of these rates still in effect except for

small number of new locations and special

review areas

Surveyed 9,348 restaurants in 502 locations

-402 non-standard areas (NSA)

-100 areas in continental United States

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Current M&IE rate tiers

$46 – CONUS and lowest NSA (33)

$51 – (90)

$56 – (103)

$61 – (67)

$66 – (29)

$71 – (43)

Incidental rate - $5 per day, all locations (built in)

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Methodology – What’s Included

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Average Rate for 3 meals

- Two different meal types per meal, averaged

Local taxes

Gratuity – 15 percent

Add $5 for incidental expenses

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Methodology – Tier Placement

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<$51 ($46 Tier)

>= $51 and <$56 ($51 Tier)

>= $56 and <$61 ($56 Tier)

>= $61 and <$66 ($61 Tier)

>= $66 and <$71 ($66 Tier)

>= $71 ($71 Tier)

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Methodology – Restaurant Types

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Primary – 2 and 3 star/diamond full service restaurants found within the AAA and Forbes/Mobil Travel Guides

Secondary – Chain-type restaurants

Tertiary – Local family dining restaurants

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Methodology – AAA Diamond

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Relaxed family fare. Enhanced food presentation, such as the use of common garnishes and dishware, a wide selection of familiar or home-style foods. Relaxed service, often family oriented. DC Examples:Hard Rock CaféCactus CantinaOld Ebbitt Grill

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Methodology – AAA Diamond

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Skillfully prepared food, often reflecting current trends, and expanded beverage offerings, Efficient service staff, well-coordinated décor. Often adult oriented.DC Examples:Gordon BierschMcCormick and Schmick’sMaggiano’s Little Italy

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Methodology – Example

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Denny's (chain)

Alberto's Crystal Cafe

Crispy's CaféDell's CafeJust Peachy CafePapa Chon's Mexican RestaurantFirehouse GrillSpanish Inn RestaurantTexas Cajun CafeHilltop CafeCarlos RestaurantJoe's Italian BistroGill's Gold-N-Crisp FriedK C Steak & Seafood House (2 Diamond)El Nopal Cafe

Big Spring, TX – new location in FY2014Restaurants meeting criteria:

Average cost of 3 meals

+8.25% tax

+15% gratuity = $42.42

+$5 for incidentals = $47.42

Tier placement:

<$51 ($46 tier)

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Other Methodology - BTN

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Business Travel News (BTN)

January 2013 pricing

Business Travel Costs in Top 100 cities:

http://businesstravelnews.texterity.com/businesstravelnews/20130318#pg20

U.S. average for meals = $85

Only five locations less than $71

New York = GSA rate: $71; BTN average: $115

Orlando = GSA rate: $56; BTN average: $71

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Other Methodology - BTN

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Differences in methodology: Food choices

Breakfast: two eggs, meat, toast, orange juice and coffee

Lunch: soup, a hamburger or chicken sandwich, a slice of pie and a soft drink

Dinner: soup, filet steak, a glass of red wine, dessert and a cup of coffee.

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Other Methodology - BTN

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Differences in methodology: Misc. factors

No tax

No incidental expense of $5

Includes 15 percent gratuity

Unknown variable factor? Restaurant type sampled

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Federal Travel Regulation:

Sections Related to Meals and Incidental Expenses

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FTR sections – M&IE

§301-11.17  If my agency authorizes per diem reimbursement, will it reduce my M&IE allowance for a meal(s) provided by a common carrier or for a complimentary meal(s) provided by a hotel/motel? No. A meal provided by a common carrier or a complimentary meal provided by a hotel/motel does not affect your per diem.

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FTR sections – M&IE

§301-11.18  What M&IE rate will I receive if a meal(s) is furnished by the Government or is included in the registration fee? (a) (b) (c)

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FTR sections – M&IE

(a) Except as provided in §301-11.17 or in paragraph (b) of this section, your M&IE allowance must be adjusted for meals furnished to you by the Government (including meals furnished under the authority of Chapter 304 of this Title) by deducting the appropriate amount shown in the chart in this section for travel within CONUS and the chart in Appendix B of this chapter for meal deductions for OCONUS and foreign travel. For meals provided on the day of departure and the last day of travel, you must deduct the entire allocated meal cost from the decreased M&IE rate (see §301-11.101). The total amount of deductions made will not cause you to receive less than the amount allowed for incidental expenses.

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FTR sections – M&IE

(b) Your agency, at its discretion, may allow you to claim the full M&IE allowance if: (1) You are unable to consume the furnished meal(s) because of medical requirements or religious beliefs; (2) In accordance with administrative procedures prescribed by your agency, you requested specific approval to claim the full M&IE allowance prior to your travel; (3) In accordance with administrative procedures prescribed by your agency, you have made a reasonable effort to make alternative meal arrangements, but were unable to do so; and (4) You purchase substitute meals in order to satisfy your medical requirements or religious beliefs.

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FTR sections – M&IE

(c) In your agency’s discretion, and in accordance with administrative procedures prescribed by your agency, you may also claim the full M&IE allowance if you were unable to take part in a Government-furnished meal due to the conduct of official business.

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FTR sections – M&IE

§301-11.25  Must I provide receipts to substantiate my claimed travel expenses? Yes. You must provide a lodging receipt and a receipt for every authorized expense over $75, or provide a reason acceptable to your agency explaining why you are unable to furnish the necessary receipt(s) (see §301-52.4 of this chapter).

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FTR sections – M&IE

§301-11.101  What allowance will I be paid for M&IE? (a) Except as provided in paragraph (b) of this section, your allowance is as shown in the following table:

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When travel is

Your allowance is

More than 12 but less than 24 hours

75 percent of the applicable M&IE rate for each calendar day you are in a travel status.

24 hours or

more …

on the day of departure

75 percent of the applicable M&IE rate

Full days of travel

100 percent of the applicable M&IE rate

The last day of travel

75 percent of the applicable M&IE rate.

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FTR sections – M&IE

§301-11.102  What is the applicable M&IE rate?

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For days of travel which

Your applicable M&IE rate is

Require lodging

The M&IE rate applicable for the TDY location or stopover point.

Do not require lodging, and

-Travel is more than 12 hours

but less than 24 hours.

The M&IE rate applicable to the TDY site or the highest M&IE rate applicable when multiple locations are involved.

-Travel is 24 hours or more, and you are traveling to a new TDY site or stopover point at midnight.

The M&IE rate applicable to the new TDY site or stopover point.

-Travel is 24 hours or more, and you are returning to your official station.

The M&IE rate applicable to the previous day of travel.

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FTR sections – M&IE

§301-11.200  Under what circumstances may my agency prescribe a reduced per diem rate lower than the prescribed maximum? Under the following circumstances: (a) When your agency can determine in advance that lodging and/or meal costs will be lower than the per diem rate; and (b) The lowest authorized per diem rate must be stated in your travel authorization in advance of your travel.

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Point of Contact

Jill Denning

Per Diem Program Manager

(202) 208-7642

jill.denning@gsa.gov