Of fice of Governmentwide Policy

Of fice of Governmentwide Policy GSA’s Per Diem Rate Setting Process for the Continental United States Travel Management Policy Office of Travel, Transportation and Asset Management

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.)

Who Sets Per Diem Rates?

4 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) 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…”

Types of Lodging Rates • Standard Rate • The base rate for per diem in the continental United States • Increased in FY 2011 from $70 to $77 • 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 382 unique locations • Reviewed every year

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

7 Primary ZIP Codes FEMA Fire Safe Properties Mid-Range Priced Properties Per Diem Methodology 12K+ properties used; average 30 each NSA

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

Methodology Example 9 Mid-Price Range *Luxury category properties not included unless priced lower than the highest midscale.

Per Diem Methodology Standard CONUS Apply NSA Apply NSA Run 10

11 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)

12 Agency Flexibilities • Conference Lodging Allowance (CLA) • Up to 125% of lodging per diem rate to attend or plan conference (government agency sponsoring conference determines amount) • Federally sponsored FTR reference: 41 CFR §301-74 (www.gsa.gov/ftr)

13 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

14 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

17 Lodging Rate Changes - NSAs FY 2012 • 55 percent of the rates increased; 37 percent decreased (rest remained unchanged) FY 2011 • 82 percent of the rates decreased FY 2010 • 70 percent of rates remained the same or increased FY 2009 • 94 percent increased, 2 percent were unchanged and 4 percent decreased

FY12 Per Diem Lodging Rate Changes 18

FY12 Per Diem Lodging Rate Changes 19

US Average Daily Rate Data FY 2010 Data FY 2011 Data FY 2012 Data 20

US Average Daily Rate Data: Jan. 2000-July 2011 21

Additional Resources Questions:travelpolicy@gsa.gov E-Mail Notification:www.gsa.gov/travelpolicyemailnotification Websites: gsa.gov/perdiem http://www.usfa.dhs.gov/applications/hotel http://www.twitter.com/GSAtravelpolicy 22

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

Of fice of Governmentwide Policy