Of fice of Government-wide Policy

1. Of fice of Government-wide Policy GSA’s Per Diem Rate Setting Methodology for the Continental United States Travel Management Policy Office of Transportation and Asset Management

2. 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.)

3. 3 GSA’s Authority to set Per Diem In accordance with 5 U.S.C. 5702, GSA sets per diem rates to fairly reimburse Federal employees for their expenses while traveling to achieve their agencies’ missions. 5 U.S.C. Section 5702 (a)(1)(A) states 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… 5. U.S.C. Section 5707 a(b), Adherence to fire safety guidelines in establishing rates and discounts for lodging expenses, states “[S]tudies or surveys for the purposes of establishing per diem rates for lodging expenses … shall be limited to approved places of public accommodation” (e.g. properties with FEMA IDs).

4. Who Sets Per Diem Rates? *Current division of labor in place since 1982. No difference in rates between military/civilian travelers.

5. Per Diem Rate Setting - History • Subsistence Act of 1926 • CONUS per diem rate of $6; actual expense no more than $7 • Outside of CONUS – per diem rate of $7, average of $8 actual • Fiscal Year 2005 – current methodology goes into effect • FY 2013 – Governmentwide Travel Advisory Committee formed to discuss per diem methodology, travel efficiencies and savings

6. Types of Lodging Rates • Standard Rate • The base rate for per diem in the continental United States • Increased in FY 2014 from $77 to $83 • Applies to 2,600 counties • Generally reviewed every three years • Non-Standard Rate Areas (NSAs) • Unique areas identified by Federal agencies greater than the Standard Rate • Applies to 366 unique locations in FY2014 • Reviewed every year

7. Lodging Per Diem Process Identify area and primary ZIP codes Use updated Fire-Safe hotel list Obtain hotel industry data: Average Daily Rate Analyze hotel industry data Seek/obtain GSA senior management concurrence Publish FY per diem rates Notify Congress of FY rate change Seek/obtain OMB senior management concurrence

8. 8 Primary ZIP Codes FEMA Fire Safe Properties Mid-Range Priced Properties Per Diem Methodology 11.5K properties used; average 31 each NSA

9. Per Diem Methodology • Only data of hotels/motels; no condos, dorms, B&Bs, cabins • No weekend travel rates • Data used: April – March

10. Methodology Example 10 Mid-Price Range *Luxury category properties not included unless priced lower than the highest mid-priced property. **Final Average Daily Rate is weighted by room count of each property in the sample.

11. US Average Daily Rate Data: Jan. 2001-May 2014 11

12. Per Diem Rates – Which to Use? Standard CONUS Apply NSA Apply NSA Run FTR reference: 41 CFR §301-11.7 and §301-11.8 12

13. 13 Agency Flexibilities • Actual Expense Allowance • Agency approval • Up to 300% of per diem • Agencies discretion FTR reference: 41 CFR §301-11.300 to 11.306 (www.gsa.gov/ftr)

14. 14 Requests for Per Diem Reviews Federal Agency Travel Manager notifies GSA of their travelers’ difficulties in finding rooms at the current per diem rate. The letter should include: • Number of trips annually in specific location • Address, ZIPs & rates where they need to stay • Frequency actual expense used

15. 15 Requests for Per Diem Reviews • Requests postmarked by 4/1 or 12/31 • See www.gsa.gov/perdiem FAQs #5 and 6 • Rates can increase/decrease/remain • unchanged

16. Additional Resources Questions:travelpolicy@gsa.gov Websites: gsa.gov/perdiem http://www.usfa.dhs.gov/applications/hotel 16

17. Point of Contact Jill Denning Per Diem Program Manager (202) 208-7642 jill.denning@gsa.gov