Superseded by PIC 00-17
Procurement Information Circular
January 15, 1999
MAXIMUM PER DIEM RATES UNDER THE FEDERAL TRAVEL REGULATIONS (FTR)
PURPOSE: FAR deviation to permit contractors to choose to satisfy the limitation on allowable travel costs by continuing to use the FTR maximum per diem rates and the definitions of lodging, meals, and incidental expenses in effect on December 31, 1998, or by using the revised FTR rates and definitions that were effective January 1, 1999.
BACKGROUND: FAR 31.205-46(a)(2) limits the allowable costs for contractor employee lodging, meals, and incidental expenses to the maximum per diem rates in effect at the time of travel set forth in the Federal Travel Regulations (FTR); the Joint Travel Regulation (JTR), Volume 2, DOD Civilian Personnel, Appendix A; or the Standard Regulations (Government Civilians, Foreign Areas), Section 925, "Maximum Travel Per Diem Allowances for Foreign Areas." On December 2, 1998, a final rule was issued (63 FR 66674-6676) that significantly changes how the FTR maximum per diem rate limitations are computed, such as lodging taxes being separated from the per diem rates and those costs being allowed instead as a miscellaneous expense. The revised FTR rule went into effect on January 1, 1999. The change in the FTR could result in contractors incurring a significant administrative burden and substantial costs in modifying their systems to comply with the new rule. This change comes at the same time as the Federal agencies are considering a FAR change that would remove all the maximum per diem rate limitations at 31.205-46(a)(2). Allowing contractors to choose to follow the limitation on travel costs in effect on December 31, 1998, or those in effect January 1, 1999, is consistent with the action taken by the Department of Defense.
GUIDANCE: For travel costs incurred after December 31, 1998, contracting officers shall allow contractors to choose to satisfy the limitation on allowable travel costs by either continuing to use the FTR maximum per diem rates and the definitions of lodging, meals, and incidental expenses in effect on December 31, 1998, or by using the revised FTR rates and definitions that became effective January 1, 1999.
EFFECTIVE DATE: This PIC is effective as dated and shall remain in effect until canceled or superseded.
HEADQUARTERS CONTACT: Joe Le Cren, Code HK, (202) 358-0444, email: firstname.lastname@example.org.
Acting Associate Administrator for Procurement