Airbnb for lodging by contractors

[Tzarina of Compliance]

Does anybody know if contractors may use Airbnb for lodging (subject to safety etc) and bill up to the GSA/DSSR per diem rate for lodging?  

[LuketheNuke]

Was it in the contract that re-imbursement for travel will be at GSA per-diem schedules?  Not many realize that NOT ALL OF FAR 31-205.46 is invoked on contractors, see 31.205-46(a)(4) 

[Tzarina of Compliance]

The contract is cost-type and subject to cost principles.  FAR 31.205-46 states that the reimbursement of per diem can not exceed the GSA or DSSR rates.  I know that nothing else applies.   I was more looking for Airbnb being used for lodging under per diem limits?

[Retreadfed]

The travel cost principle, including the portion of the government travel regulations cited there, does not limit contractor employees in regard to where they may stay while in a travel status.  Thus, there is no regulatory restriction on contractor employees staying at an Airbnb.  Airbnb operates on a rental basis.  If the employee pays for a rental while on covered travel, the employee has incurred a lodging expense.  If the contractor reimburses the employee for that cost, the contractor has incurred a lodging expense subject to the travel cost principle.  As long as the daily rental cost and M&IE expenses do not exceed the daily per diem amount for the locale, I see no reason why it should not be allowable. 

[Vern Edwards]

I don't know the answer, but see this 2021 Air Force memo, "Clarifying Guidance for Nonconventional Lodging (Airbnb, VRBO etc.)"

https://www.buckley.spaceforce.mil/Portals/13/AirBnB policy.pdf

There are other memos like it by other agencies and sources.

https://combadi.com/can-you-use-airbnb-for-government-travel/

[Tzarina of Compliance]

15 minutes ago, Retreadfed said:

The travel cost principle, including the portion of the government travel regulations cited there, does not limit contractor employees in regard to where they may stay while in a travel status.  Thus, there is no regulatory restriction on contractor employees staying at an Airbnb.  Airbnb operates on a rental basis.  If the employee pays for a rental while on covered travel, the employee has incurred a lodging expense.  If the contractor reimburses the employee for that cost, the contractor has incurred a lodging expense subject to the travel cost principle.  As long as the daily rental cost and M&IE expenses do not exceed the daily per diem amount for the locale, I see no reason why it should not be allowable. 

Thank you very much!

[Tzarina of Compliance]

8 minutes ago, Vern Edwards said:

I don't know the answer, but see this 2021 Air Force memo, "Clarifying Guidance for Nonconventional Lodging (Airbnb, VRBO etc.)"

https://www.buckley.spaceforce.mil/Portals/13/AirBnB policy.pdf

There are other memos like it by other agencies and sources.

https://combadi.com/can-you-use-airbnb-for-government-travel/

This is helpful.  Thank you!

[LuketheNuke]

That Air Force  memo, which Vern provide the link, says it all. Well done Air Force!,  Airbnb not reimbursable (there can be exceptions).

[Retreadfed]

1 hour ago, LuketheNuke said:

Airbnb not reimbursable

Where does the memo say it applies to contractors?

[Vern Edwards]

Just now, Retreadfed said:

Where does the memo say it applies to contractors?

Not FAR 31.205-46.

I did not find a single BCA decision about contractor use of AirBNB, nor any GAO decision.

[LuketheNuke]

I think you have me there, Retreadfed. The memo directs/mandates the use of the Travel Management Company for lodging reservations,  not sure one can invoke that requirement onto contractors. Then how does one establish 'reasonablness'?  I don't see it as unallowble

[Retreadfed]

46 minutes ago, Vern Edwards said:

Not FAR 31.205-46.

I don't understand this.  Do you mean that 31.205-46 says that the cost of staying at an Airbnb is unallowable?

[Retreadfed]

2 minutes ago, LuketheNuke said:

Then how does one establish 'reasonablness'? 

If the total cost of lodging and M&IE does not exceed the total amount allowed by the appropriate regulation for those costs, the cost is considered reasonable.  The cost principle does not apply the separate limits on lodging and M&IE to contractors, only the total daily amount.

[here_2_help]

So long as the lodging cost is within the ceiling established by GSA for the locality, and there is sufficient evidence the cost was incurred (e.g., a receipt), then the cost is allowable as defined by the FAR.

Company policy, however, may indicate a different choice.

[Vern Edwards]

37 minutes ago, Retreadfed said:

I don't understand this.  Do you mean that 31.205-46 says that the cost of staying at an Airbnb is unallowable?

No. I meant that FAR 31.205-46 does not say that the prohibition in the memo applies to contractors. Sorry for the confusing message.

[Retreadfed]

Vern, thanks for the clarification.