Government reimbursement of travel costs

[jeff4757]

A subcontractor is trying to secure a long-term stay In a hotel to support scope on a Government contract. The area he is to stay in is a high tourist area and availability is an issue-not to mention the hotel rate that exceeds the GSA per diem.

Does the FAR speak to the process for reimbursement if you demonstrate that all means were utilized to try to secure lodging within the confines of the GSA per diem?

Or is our company on the hook for delta in cost from the per diem to the actual rate charged?

Any feed back is appreciated!

Thank you!

[ji20874]

Or is our company on the hook for delta in cost from the per diem to the actual rate charged?

Is the travel portion of the subcontract (not the prime contract) cost-reimbursement? Or fixed-price? Or something else?

Is the travel portion of the prime contract cost-reimbursement? Or fixed-price? Or something else?

[jeff4757]

Travel is under a T&M subcontract

[here_2_help]

The FTRs permit a revised per diem in certain circumstances up to 300% of original locality limits. I suggest you research it and document accordingly to support allowability.

Hope this helps.

[Retreadfed]

Adding to H2H's post see FAR 31.205-46(a)(3).

[ji20874]

Also adding -- travel is under the material part of T&M -- see the contract clause at FAR 52.232-7( b )( 1 )( ii )( C ).

[jeff4757]

_{Very much so sir! Thank you!!}

[ji20874]

You need to appreciate that the citations Retreadfed and I provided apply to prime contracts -- but your subcontract will be governed by the subcontract itself, which may or may not incorporate FAR principles. It will be the prime contractor (not the federal government) who approves or disapproves payment to the subcontractor for the higher travel payment.

The prime contract might be fixed-price, or it might be cost-reimbursement, or it might be T&M -- we don't know yet -- but the answer to that question may have some bearing on the prime contractor's willingness to be persuaded.