Hello,
I am working with an order that requires conference rooms and equipment as well as a reservation on hotel rooms with fixed rates. The Government will pay for the conference rooms and equipment, but the hotel rooms will be paid by participants. A hotel submitted a quote with an 80% attrition rate, meaning if the reserved hotel rooms are not booked at least 80%, the hotel will charge the Government for those rooms or some penalties. The problem is that not all participants are Government employees, so we could run the risk of not meeting the 80% attrition rate. Also, if there is a Government shutdown, we would be at a loss here.
My question is both legal and ethical. I understand why hotels do this because they could lose money if the participants fail to fulfill their reservations. However, can the Government legally pay for services not rendered associated with this attrition rate? On another note, if the Government cannot pay for these unused rooms, is this unfair to hotel businesses?