Office 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

Today’s Agenda 2 Quick overview of lodging per diem methodology and FY16 results Meals and Incidental Expense (M&IE) methodology changes for FY16 and beyond New FTR proposed rule – comments until March 8

Lodging Per Diem Methodology Primary ZIP Codes Mid-Range Priced Properties FEMA Fire Safe Properties K properties used; average 30 each NSA

4 Lodging Per Diem Methodology Only data of hotels/motels; no condos, dorms, cabins No weekend travel rates Data used: April – March

5 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 Seek/obtain OMB senior management concurrence Notify Congress of FY rate change Publish FY per diem rates

FY2016 Lodging Study Findings 6 What was reviewedOverall Results Non-standard area lodging rates305 increases – average $7 14 remain the same 30 decreases – average -$5 Standard lodging rateIncrease to $89 from $83 FY14 was the last time this rate changed. GTAC recommended reviewing annually; GSA agreed.

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M&IE Methodology – What’s Included 8 Average Rate for 3 meals - Two different meal types per meal, averaged Local taxes Gratuity – 15 percent Add $5 for incidental expenses

GTAC Suggestions – March After learning about the M&IE methodology, the GTAC proposed GSA test the following options to potentially save money on M&IE spend: Add “fast casual” restaurants (e.g. Panera) Exclude AAA three-diamond restaurants Add fast casual and exclude three-diamond restaurants

Adjusted Restaurant Types 10 Type of restaurantPercent in sample Family dining chains or chain-type restaurants 62.2% AAA 2-diamond restaurants17.7% Independent, full-service restaurants not otherwise included 9.6% Fast-casual restaurants7.9% AAA 1-diamond restaurants2.6%

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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 12

Requests for Per Diem Reviews Requests postmarked by 4/1 or 12/31 See FAQs #5 and 6www.gsa.gov/perdiem Rates can increase/decrease/remain unchanged 13

Proposed Rule – ATM fees, etc Proposed change to Federal Travel Regulation announced Jan. 8, 2016 Public has 60 days to comment at regulations.gov ATM fees will be considered part of the M&IE amount Clarifies that laundry/pressing/cleaning MAY be paid by the agency (not MUST be) 14

Additional Resources Questions: Websites: gsa.gov/perdiem 15

Point of Contact Jill Denning Per Diem Program Manager (202)