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I just found out that the travel agency my company is using is headquartered in Australia. Their US-based office handles all of our travel needs. The service fee they charge for each transaction is charged to the cost objective of the trip.  Is there a problem using a foreign-based company for our travel needs?  Should we switch to a US-owned company?  We didn't realize the connection until recently.

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sdgovacct,

As far as I know, there is no statute that requires a US-based travel agency to be used. The key point would be whether your company is able to show that the price paid -- the service fee plus whatever else -- is fair and reasonable. That being said, do you have any contracts that impose additional requirements? I wouldn't think you would, but you need to check.

Hope this helps

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9 hours ago, sdgovacct said:

Thanks for your help. I will poll a couple other local colleagues about their agency fees.

I presume that you are discussing travel agency fees that are reimbursable under the contract in question, not part of a fixed-price line item. Am I correct? 

Thanks! 

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1 hour ago, joel hoffman said:

I presume that you are discussing travel agency fees that are reimbursable under the contract in question, not part of a fixed-price line item. Am I correct? 

Yes, that is correct.

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