MEMORANDUM TO THE HEADS OF FEDERAL DEPARTMENTS AND AGENCIES FROM ELMER B. STAATS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81M00980R001500070012-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 65
• Document Creation Date: December 16, 2016
• Document Release Date: July 6, 2005
• Sequence Number: 12
• Publication Date: July 21, 1978
• Content Type: MEMO

EXECUTIVE SECRETARIAT
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Remarks: To c : For info and appropriate action.
If there's something here that warrants
C CI an..,. -.'I attention, please advise them
accords oY? I
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COMPTROLLER GENERAL OF THE UNITED _STATES
WASHINGTON. D.C. 20541+^'
OLC
July 21, 1978
Enclosed is a copy of our report to the Congress on
ways to achieve savings and better accounting control over
Government travel expenses by using discount airline fares
and teleticket machines. Basically, the report shows that
Federal agencies lacked controls to ensure that all costs
associated with air travel are minimized. As a result,
millions of dollars have been unnecessarily spent annually
for Federal air travel.
This report contains recommendations to you on pages
14 and 24. As you know, section 236 of the LeaisLatiyp
Reorganization Act of 1970 requires the head of a Federal
agency to submit a written statement on actions taken on our
recommendations to the House Committee on Government Opera-
tions and the Senate Committee on Governmental Affairs aat
later than 60 days after the date of the It requires
similar reports to the House and Senate Committees on Appro-
priations with the agency's first request for appropriations
made more than 60 days after the date of the rport.
Comptroller General
of the United States
Enclosure(s)
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 Report To The Congress
OF THE UNITED STATES
Use Of Discount Airline Fares
And Teleticketing Would Help Save
On Government Travel Expenses
Federal employees frequently have not
obtained available discount airline fares
because the General Services Administration
and other Federal agencies have inadequate
financial controls and oversight of agency
travel. As a result, millions of dollars have
been spent unnecessarily on commercial air
travel.
Agencies could also save on travel person-
nel and administrative costs by using tele-
ticket machines more effectively and by
purchasing rather than leasing them. Costs
would be reduced in procuring airline
tickets, processing unused tickets for re-
funds, and auditing travel expenditures by
the General Services Administration.
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 f M
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COMPTROLLER GENERAL OF THE UNITED STATES
WASHINGTON. D.C. 20548
To the President of the Senate and the
Speaker of the House of Representatives
This report summarizes the results of our review of
financial and administrative controls used by Federal agen-
cies to ensure that employee air-travel costs are minimized.
It shows that Federal agencies annually have spent millions
of dollars unnecessarily to provide their employees with
commercial air travel.
We reviewed controls over air-travel costs to determine
their adequacy in view of the substantial amount spent an-
nually on air travel by Federal agencies. This review was
made pursuant to the Budget and Accounting Act, 1921
(31 U.S.C. 53), and the Accounting and Auditing Act of 1950
(31 U.S.C. 67).
Because of the Government-wide application of matters
and recommendations contained in this report, we are send-
ing copies to the Administrator of General Services and to
the heads of all other Federal departments and agencies as
well.
44
Comptroller General
of the United States
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and Department of Defense agencies. For
example, Federal Aviation Administration
employees attending centralized training
courses in Oklahoma usually qualify for
these fares, but few employees obtain them.
Consequently, as much as $312,000 was spent
unnecessarily on training-related travel
during 1976. In Defense, military reserve
trainees annually attend 2-week training
sessions. Many travel to training sites
via commercial airlines and could qualify
for excursion fares, but few use the fare.
For example, more than $230,000 was un-
necessarily spent because trainees. ordered
to classes from one location did not use
excursion fares. (See p. 6.)
Use of group fares also offers immediate
and substantial savings to Federal depart-
ments and agencies. The Environmental Pro-
tection Agency sent 19 employees from Denver
to Salt Lake City to attend a conference in
February 1977. Although 10 passengers trav-
eled together to Salt Lake City and 7 others
traveled separately on the same day, they
did not use the available group fare. A
total of $357 could have been saved-. (See
p. 8.)
Even greater group fare use would be pos-
sible if the General Services Administra-
tion (GSA) would make and pay for, on a
reimbursable basis, Federal group reserva-
tions for routine flights. For example,
GAO found that a sufficient number of Fed-
eral employees flew on selected flights
from Denver to eight different cities dur-
ing a 1-week period to qualify for group
fares. If the group discount fares had
been obtained, the Government would have
saved $5,900. If this week is representa-
tive, the Government loses over $306,000
annually on flights from Denver, Colorado.
(See p. 9.)
Employees taking early morning or late
evening flights may qualify for off-peak
fares, but often do not request and obtain
them. Failure to use these fares from
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Denver to Salt Lake City resulted in losses
of about $107,000 during 1977. (See p. 11.)
RECOMMENDATIONS
The heads of departments and agencies should
--review the use of airline discount fares
and inform employees of the potential for
savings,
--establish, in agency travel organizations,
adequate accounting for savings on dis-
counts taken and procedures for recording
and analyzing explanations for not taking
discounts, and
--evaluate audit priorities and staff re-
sources to determine the need for periodic
internal audits of the use of discount
fares.
The Administrator of General Services should
--regularly inform Federal agencies of dis-
count air fares available between commonly
traveled locations,
--determine the feasibility of establishing
a system for consolidating Federal traveler
reservations in cities when there is sub-
stantial travel by Federal employees, and
--evaluate the feasibility of providing as-
sistance to agencies sponsoring multi-
agency conferences by making and paying
for, on a reimbursable basis, group fare
reservations for attendees.
INCREASED USE OF TELETICKET
MACHINES COULD REDUCE COSTS
Teleticket machines electronically produce
airline tickets. Their proper use can re-
duce the Government's costs of
--procuring airline tickets,
--processing unused tickets for refunds, and
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--auditing travel expenditures by GSA.
The administrative costs associated with the
procurement, payment, reimbursement, and au-
dit of air carrier tickets could be reduced
by about $5 a ticket if agencies followed
established procedures for using teleticket
machines. (See p. 18.)
Many agency officials were unfamiliar with
teleticket equipment or its potential bene-
fits. For example, because the Department
of Labor in Washington, D.C., did not re-
quire the use of its teleticket machines,
thousands of Government transportation re-
quests were unnecessarily processed. (See
pp. 19 and 20.)
Many agencies also could benefit from joint
use of teleticket machines.
--The Postal Inspection. Service in Atlanta
did not know that it could share the
United States Postal Service's teleticket
machine which is in the same building.
--The Department of Labor attempted to obtain
a teleticket machine in Denver, although.
the Job Corps, an agency of Labor, already
had a machine in the same building.
(See p. 22.)
RECOMMENDATIONS
The heads of all departments and agencies
should provide their regional offices with
GSA and agency guidelines and procedures
to implement teleticket machine use.
The Administrator of General Services should
--amend GSA guidelines and bulletins to in-
clude information on sharing teleticket
machines,
--direct each GSA regional office to survey
machine use in its region for compliance
with GSA guidelines, and
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--direct each GSA regional office to work
with agencies to increase use of tele-
ticket machines.
NEED TO EXPEDITE REFUNDS
FOR UNUSED TICKETS
Many agencies GAO visited waited months
before requesting refunds for unused tickets
and could not determine whether the amount
of refunds received was correct. .(See
p. 21.)
RECOMMENDATION
The heads of all departments and agencies
should make sure that ticket refund requests
are timely and that adequate control over
the amount of refunds is established.
PURCHASE IN LIEU OF LEASING TELETICKET
MACHINES COULD BE MORE ECONOMICAL
The Federal Government could save at least
$145,000 annually if Federal agencies would
purchase rather than lease the 172 tele-
ticket machines now in use, but they are
not clearly listed as available for pur-
chase in the Authorized Federal Supply
Schedule Catalog for Communications Ter-
minals. (See p. 27.)
RECOMMENDATIONS
The Administrator of General Services should
--inform agencies of the cost advantages
of purchasing rather then leasing tele-
ticket machines and
--include teleticket machines in the Au-
thorized Federal Supply Schedule for Com-
munication Terminals as-being available
for purchase.
AGENCY COMMENTS
The Office of Management and Budget, Depart-
ments of Defense and Transportation, and GSA
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generally agreed that substantial benefits
could be derived with greater use of dis-
count air fares and more effective adminis-
trative controls over Federal employee air-
line travel. These agencies also agreed
that administrative costs associated with
airline travel can be reduced. The Depart-
ments of Defense and Transportation and GSA
plan to take action to reduce direct and in-
direct Federal air travel costs. (See
pp. 15, 25, and 28.)
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Page
DIGEST
CHAPTER
INTRODUCTION 1
Federal policy on travel costs and
management responsibilities 1
How the Government makes airline
reservations and pays its bills 3
A related report 4
2 DISCOUNT AIRLINE FARES--INCREASED USE
COULD SAVE THE GOVERNMENT MILLIONS
OF DOLLARS 5
Federal requirements 5
Need to increase use of discount
excursion fares 6
Need to increase use of group,
discounts 8
Need to increase use of discount
off-peak fares 11
GSA should help agencies get
discount air fares 12
Better audit coverage and control
over employee travel is needed 13
Conclusions 13
Recommendations 14
Agency comments and our
evaluation 15
Agency comments and our
evaluation
TELETICKETING--THE WAY TO ACHIEVE
ADMINISTRATIVE SAVINGS AND BETTER
ACCOUNTING CONTROL 18
How teleticket machines can reduce
administrative costs associated
with procuring airline tickets 18
Opportunities for agencies to
share teleticket machines 22
Conclusions 24
Recommendations 24
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CHAPTER Page
4 POTENTIAL SAVINGS BY PURCHASING
TELETICKET MACHINES 27
GSA should clarify catalog and con-
sider other sources 28
Conclusions 28
Recommendations 28
Agency comments and our evaluation 28
5 SCOPE OF REVIEW 30
APPENDIX
August 25, 1977, memorandum from the
Comptroller General to the heads of
departments, agencies, and. others
concerned, calling attention to savings
available by using airline discount
fares 31
II Military traffic management command's
message of May 13, 1977, to the head-
quarters of all military service
branches including reserve units after
GAO's meeting on discount air fares and
teleticketing service
III Extent of nonuse of airline excursion fares
by nine ?Federal agencies in Denver,
Colorado, during our review
IV Departments and agencies contacted during
our review 37
V April 21, 1978, letter from the Associate
Director for Economics and Government,
,Office of Management and Budget
VI April 11, 1978, letter from the Assistant
Secretary for Administration, Department
of Transportation
VII April 13, 1978, letter from the
Administrator of General Services 44
VIII May 2, 1978, letter from the Principal De-
puty Assistant Secretary of Defense,
Manpower, Reserve Affairs, and Logistics 49.
IX Principal officials responsible for admin-
istering activities discussed in this
report
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ABBREVIATIONS
DOD Department of Defense
GAO General Accounting Office
GSA General Services Administration
GTR Government Transportation Request
HEW Department of Health, Education, and Welfare
OMB Office of Management and Budget
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CHAPTER 1
INTRODUCTION
The Congress has repeatedly expressed interest in reduc-
ing Federal travel costs and in establishing methods and
procedures to produce that result. The Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 471) empha-
sized this objective by providing for an economical and ef-
ficient transportation and traffic management system. The
Congress directed the General Services Administration (GSA)
to establish policies and procedures for the system.
The reason for congressional interest in travel costs
is clear--Federal travel costs are substantial. A major
portion is spent for Federal employees' travel on commercial
airlines. In fiscal year 1976, for example, the Federal Gov-
ernment spent at least $470 million on airline fares alone
and incurred high administrative costs for travel as well.
This report analyzes and evaluates GSA and Federal
agency accounting controls and related procedures for en-
suring that least costly
--air fares are obtained and
--systems are used for procuring airline tickets,
processing unused tickets for refunds, and
auditing travel expenditures.
Although we did not review the travel practices of Gov-
ernment contractors or Federal-grant recipients, we believe
their travel practices would be similar to those of Government
agencies.
FEDERAL POLICY ON TRAVEL COSTS
AND MANAGEMENT RESPONSIBILITIES
Federal policy clearly states that agencies should keep
all travel 'costs to a minimum. This is evident in the Office
of Management and Budget (OMB) guidance to agencies on the
control and management of travel. OMB Bulletin 76-9, Decem-
ber 4, 1975, states that:
"It is Administration policy that agencies
should authorize that amount of travel
necessary to accomplish the purposes of
the Government effectively--but not one
bit more--and at minimum. cost."
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Travel regulations issued by GSA and the Department of
Defense (DOD) are designed to carry out this policy. The reg-
ulations require all employees traveling on official business
to consider cost in selecting the method of travel. They also
state that if discount fares are available, such fares should
be used when they will not interfere with agency business.
Discounts offered by airlines include excursion, group,
and off-peak fares. These fares, offered by most major air-
lines, are from 15 to 35 percent lower than coach-class fares.
Since our review, several airlines have announced even greater
discounts--as much as 50 percent off coach fares. To obtain
these discounts the traveler generally must make reservations
and pay for tickets earlier than for coach-class fares.
To carry out its broad responsibilities as traffic
manager for all Federal agencies, except DOD, GSA should
--make onsite surveys of transportation activities in
Federal agencies and evaluate agency operations and
compliance with Federal regulations,
--recommend changes in agency policies, standards,
practices, and procedures to improve the efficiency
and economy of agency transportation operations,
--hold seminars and training courses to improve and
broaden traffic management knowledge and experience
of agency personnel,
--contract for transportation-related services, such
as teleticket machines, and
--prescribe and promulgate regulations to govern travel
and transportation expenses.
Although GSA has these responsibilities, it has taken the role
of travel advisor rather than manager. In the past, it has
made onsite surveys when invited or requested by an agency,
not on its own initiative.
The Military Traffic Management Command was established
to manage DOD transportation. Unlike GSA, this command ac-
tively encourages military travelers to use available lower
air fares and consolidates personnel and cargo to obtain
discounts.
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HOW THE GOVERNMENT MAKES AIRLINE
RESERVATIONS AND PAYS ITS BILLS
The methods used to make airline reservations, obtain
tickets, and pay for them vary by agency location. At loca-
tions not having access to teleticket machines, either the
traveler or the agency travel office contacts an airline,
reserves a seat, and selects a ticket office location from
which the ticket will be obtained.
Employees may obtain airline tickets with either Govern-
ment Transportation Requests (GTRs) or with their own funds.
When employees do not have access to an agency travel sec-
tion, they may have to purchase with cash tickets costing
less than $100. If they buy tickets with their own funds,
employees are reimbursed on the basis of their travel voucher.
Generally, however, employees obtain airline tickets with
GTRs. Although GTRs can be used to obtain tickets for a
number of different trips and travelers, they are normally
used for one trip and one passenger.
Over a period, airlines accumulate GTRs by agency and
prepare bills for each agency. In many cases, the bill covers
only 1 or 2 GTRs and consequently only 1 or 2 tickets. This
creates a sizable bill-paying workload. When the agency re-
ceives the bill, it matches its copies of GTRs to those at-
tached to the bill, to ensure their appropriateness, and
certifies that the bill is correct. Civilian agencies send
these certified bills to the Department of the Treasury for
payment, and DOD pays the bills for the services. Both ci-
vilian agencies and DOD, with'the exception of the Department
of the Navy, send copies of GTRs to GSA for audit of the fare
computations; the Navy audits its own. Unused or partially
used tickets are sent to agency accounting offices for proc-
essing. -
The method is different with teleticket machines. These
machines are essentially teletypewriters which connect agen-
cies with airline ticket offices. When a Federal traveler
needs a ticket, either the traveler or the agency travel sec-
tion contacts the airline. Travel requirements are provided
to the airline, and the airline transmits a ticket to the
agency via the teleticket machine. Instead of issuing one
GTR per ticket or trip, a single GTR is prepared for all
tickets for the agency during the payment period, such as 2
weeks or 1 month. The agency lists all tickets issued during
the payment period as support, along with the GTR, for Treas-
ury's payment with one check.
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ticket machines and several more were on order. Of those
in use, 84 were in the Washington, D.C., area. Twelve were
in use in Atlanta, and the Chicago and New York areas had
6 machines each.
?A RELATED REPORT
We briefly discussed teleticketing as a method of reduc-
ing the administrative costs of airline travel in an August
1977 report to OMB and GSA. 1/ We made several recommenda-
tions on centralizing administrative functions but made no
specific recommendations on the use of teleticket machines
or discount fares.
1/"Standardized Federal Regions--Little Effect on Agency
Management of Personnel," FPCD-77-39, Aug. 17, 1977.
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ZI-
DISCOUNT AIRLINE FARES--INCREASED USE
COULD SAVE THE GOVERNMENT MILLIONS OF DOLLARS
Because of inadequate financial management controls and
procedures in Federal agencies and the inadequacy of GSA's
oversight of travel activities, Federal employees frequently
do not obtain available discounts. Agencies have not (1)
kept records of discounts taken, (2) analyzed reasons for
discounts not taken, nor (3) regularly monitored travel ex-
penditures to ensure that lowest available fares are used.
The Government could save millions of dollars annually
if agency employees obtained the lowest available air fares,
as GSA and DOD travel regulations require. However, for
several reasons, Federal employees have not always obtained
the lowest available fares.
--Employees did not know special fares existed.
--Employees did not make airline reservations suffi-
ciently in advance to qualify for reduced fares.
--No agency was responsible for making group reser-
vations for Federal employees attending multi-
agency conferences or for employees of various
agencies who routinely had common departures and
destinations.
We believe Federal departments and agencies have not
adequately analyzed the costs, the administrative work in-
volved, and the auditing needed to identify opportunities
for reducing travel costs. Neither has GSA issued adequate
information on discount air fares to agencies nor assisted
them in grouping reservations to obtain lower fares. The
array of special fares available to travelers makes the se-
lection of the lowest available fare difficult. However,
knowledge and use of the special fares usually results in
substantial savings over regular fares.
FEDERAL REQUIREMENTS
Both GSA's Federal Travel Regulations and DOD's Joint
Travel Regulations require using special or reduced air-
carrier fares when using such fares will not interfere with
the work. These regulations, as well as most individual
agency regulations, stress that travelers should take the
least costly air transportation practicable.
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In an August 1977 memorandum (see app. I) to the heads
of departments and agencies, we suggested that the use of
discount fares be emphasized. This memorandum was issued
because of the potential for immediate savings. A number of
agency officials told us that they had distributed this mes-
sage to their employees but that they had not compiled sta
tistics on the extent of their savings. We intend to follow
up on our suggestions to ascertain the actions taken and the
amount of savings attained.
For this review, we compared the fares used by Federal
travelers to the readily available discount fares. We con-
sidered only those reduced fares that would not interfere
with agency effectiveness and would not limit customary pas-
senger services. Included were excursion, group, and off-
peak fares. Since our review, several airlines have an-
nounced even greater discounts--as much as 50 percent off
coach fares.
NEED TO INCREASE USE OF
DISCOUNT EXCURSION FARES
Increased use of excursion fares would save millions of
dollars. Although most Federal agencies did not have suffi-
cient information to determine the extent of possible savings,
11 agencies did. (See app. IV for the agencies contacted.)
At these locations, over $550,000 could have been saved dur-
ing the year with excursion fares, which reduce air-travel
costs as much as 20 percent below coach fares. Although each
airline establishes its own criteria for discounts on excur-
sion fares, many are available when
--reservations are confirmed and tickets purchased at
least 14 days before departure,
--a maximum of two stopovers (including the destination)
are scheduled, and
--the travel is scheduled for at least 7 but not more
than 30 days.
We believe that much of the travel associated with
training courses, seminars, and conferences would qualify for
excursion fares because travel dates are usually known at
least 14 days in advance and planned travel would meet the
7- to 30-day criteria.
The Federal Aviation Administration is a good illustra-
tion of how an agency could use excursion fares. It has cen-
tralized training facilities in Lawton and Oklahoma City,
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Oklahoma. Many of the courses offered are of sufficient
length to enable the attendees to qualify for and obtain ex-
cursion fares. Also, the training schedules are prepared
weeks in advance, and attendees generally are notified of
their training dates early enough to obtain excursion fares.
An analysis of the 1976 training program showed that, if the
employees who qualified had traveled to their courses on ex-
cursion fares, costs might have been reduced by $312,000.
Some agency travel officials said they were not aware
of requirements that excursion or other reduced fares be
used; others informed us that their employees generally re-
quested airline reservations too late to obtain reduced
fares. Federal Aviation Administration officials said
they planned, in the future, to tell their employees to use
the lowest fares and to make air reservations in time to
obtain discounts.
DOD incurred similar losses. Each year thousands of
reservists receive active-duty training for 2 weeks. Al-
though reservists frequently have sufficient notice of their
training schedule to qualify for excursion fares, few use
them. For example, one military reserve location in St.
Louis ordered 30,000 reservists to report for training during
1976 but did not specifically tell reservists to use excur-
sion fares. In a sample of 300 travel vouchers related to
this training, we identified 37 reservists who could have
obtained excursion fares but did not. The excursion fares
averaged $43 less than the coach fares. Based on the total
number of reservists who flew to training sites during 1976,
we estimated that over $230,000 in discounts may have been
lost.- Similar instances were identified at other military
locations.
After we met with DOD officials to discuss this matter,
they immediately told the major military commands of the need
to have reservists use excursion and other lower fares. (See
app. II.)
Many other official business trips also offer potential
for excursion-fare use. In an analysis of employee travel
practices in nine agencies in Denver, Colorado, we deter-
mined that at least 5 percent of the travelers qualified for
excursion fares but did not use them. (See app. III.) If
the travelers had used excursion fares, about 1 percent of
their total expenditures for airline travel in 1976 could
have been saved.
Several agency officials said that excursion fares were
not used because they precluded some travelers by requiring
that reservations be confirmed at least 14 days in advance.
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It is important to note, however, that no penalty is imposed
if it becomes necessary to cancel or change the travel period.
If the period is changed, a new ticket is acquired, and the
cost reverts to the coach fare.
Federal agencies need to keep adequate accounting records
of discounts taken and tell their travelers of the need to
use excursion fares unless other lower discounts can be used.
Federal agencies also need to monitor employee travel to en-
sure that lowest fares are obtained.
NEED TO INCREASE USE OF
GROUP DISCOUNTS
Increased use of group fares would also produce substan-
tial travel savings annually. For example, if this type of
fare had been used at the locations visited,.$400,000 could
have been saved. Group fares do not reduce passenger serv-
ices but generally are much lower than both coach and excur-
sion fares. Travel rules and fares can be obtained directly
from the airlines or from published tariffs. Group fares
were not obtained because
--no one agency was responsible for consolidating'
the reservations of all Federal employees
flying to the same destination and
--individuals who made the reservations in each
agency were unaware of the availability of
group fares.
Group.travel rules
Group travel rules and fares vary by city of departure,
airline, destination, and size of group. For example, most
airline group requirements from Denver, Colorado, to other
cities are relatively easy to meet. Between Denver and
Bismarck, North Dakota, it is required that
--there be 10 or more passengers in the group,
--reservations be made 2 weeks before departure,
--tickets be purchased 48 hours before departure,
--the group depart together although the passengers
may return individually.
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Qualified passengers could obtain a $32 reduction (20
percent) in the round-trip coach fare by using the group
discount. Frequently, enough Federal employees are traveling
between Bismarck and Denver to qualify for group discounts.
From other cities, such as Washington, D.C., airlines may
require as many as 40 people to qualify for a group fare.
A method is needed for consolidating
civilian reservations
Unlike DOD agencies, civilian agencies do not have a
systematic method for consolidating the travel of large num-
bers of Federal passengers from various agencies. As a re-
sult, Federal travelers who attend multiagency conferences
or make regular business visits to the same location often
do not use less expensive group fares.
There are many multiagency conferences attended by
hundreds of Federal employees who might qualify for group
discounts. For example, more than $6,500 was lost because
Federal employees attending a multiagency conference in
Phoenix, Arizona, in January 1977, did not use group fares,
even though a sufficient number of Federal passengers from
three different cities qualified.
Substantial savings are also possible if Federal trav-
elers would use group fares between major cities. We ana-
lyzed the extent of Federal travel on 4 airlines during a
1-week period from Denver to 8 other cities. Of the 212
flights we analyzed, 19 had sufficient Federal passengers
to qualify. for group fares. If the group discount fares
had been obtained,. the Government would have saved $5,900.
If this week was representative, Federal agencies located
in Denver spent about $306,000 more during a 12-month period
than was necessary for employee travel because they did not
use group discount fares.
We made similar observations in the Dallas-Ft. Worth
area. On 44 flights to 5 cities with a substantial number
of Federal travelers, 8 flights had sufficient Federal trav-
elers to qualify for group fares. If these travelers could
have consolidated their. reservations, Federal agencies would
have saved $1,580 in air fares during the week. If this
week was representative, Dallas area agencies spent about
$54,000 more in 1976 than was necessary for employee travel.
If the civilian agencies had a central point, such as
GSA, to contact in each city with many Federal offices to
obtain group reservations for their employees on airlines
flying to heavily traveled cities, we believe the Federal
9
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Government could reduce travel costs substantially. Because
of the need for making one payment for a group reservation,
GSA could pay for the airline tickets and could be reimbursed
by the agencies involved.
Because of the high concentration of Federal employees
in the Washington, D.C., area, the system necessary for GSA
to handle group fare reservations and payments in this area
would be on a much larger scale than a system in a regional
city such as Denver, Colorado. For this reason, we believe
that GSA should consider testing the implementation of such
a system in a regional city before implementation in Washing-
ton, D.C. We further believe that GSA should encourage Fed-
eral departments with several agencies in Washington to
establish their own systems for consolidating employee reser-
vations, allowing for greater use of group fares until GSA
determines the feasibility of implementing a system to handle
group fare reservations and payments.
Agencies should use group fares
Many management and travel section employees of both
civilian and Defense agencies either were not aware of group
fares or were not aware of the requirement to use them. Con-
sequently, several agencies were not using the lowest avail-
able fares although they had a sufficient number of employees
traveling to the same destination at the same time.
For example, in February 1977,. 19 employees from the
Environmental Protection Agency attended a conference in
Salt Lake City, Utah. Ten employees used the same flight
to Salt Lake City, and 7 other employees took other flights
the same day. If these 7 employees had travelled with the
other 10 and all had used the group fare, the Environmental
Protection Agency could have saved $357. The conference
coordinator told us that she made no effort to obtain a group
fare because she didn't know of it. Agency officials agreed
that they should use such fares, and they issued instructions
on using group fares to agency employees.
Similarly, 16 Air Force employees flew together from
Salt Lake City to Winnipeg, Canada, but did not use a group
fare which amounted to a 20-percent discount. As a result,
about $850 ($53 a person)- was spent unnecessarily. DOD regu-
lations require that the Military Traffic Management Command
be notified when groups of 10 or more are traveling more than
450 miles. According to officials, this trip should have
been referred to them so they could make the group reserva-
tion and possibly other reservation consolidations. After
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we brought this case to their attention, the military Traf-
fic Management Command reminded the Department of Defense
(DOD) to follow established regulations. (See app. II.)
Federal agencies need to be more aware of group fares
and to use them whenever possible. They should make appro-
priate inquiries of the airlines to identify group fares
and potential savings available.
NEED TO INCREASE USE OF
DISCOUNT OFF-PEAK FARES
Increased use of off-peak fares would also reduce Federal
travel expenditures. Many airlines offer off-peak fares for
early morning and late evening flights between many cities.
Although the fares have few restrictions, most agency travel
offices and employees were not aware of the fares and did
not encourage their use. We estimated that failure to use
off-peak fares from Denver to Salt Lake City cost the Federal
Government about $107,000 during 1977.
There are several off-peak flights from Denver to Salt
Lake City. Some are available during prime morning flight
hours. Use of this fare does not reduce passenger services
(including meals) but does reduce the normal one-way fare from
$56 to $28.
For two sample flights from Denver to Salt Lake City,
we found that Federal passengers who might have used off-peak
fares did not. One sample showed that 35 percent of the pas-
sengers who traveled on off-peak flights paid the full fare.
The other sample showed that over $2,000 ($26 per person at
the time of the review) could have been saved during a 1-week
period if the off-peak fare had been used.
If this same amount exists for the entire year, Federal
agencies might save more than $100,000 just on trips from Den-
ver to Salt Lake City. We believe that a similar situation
may exist on Salt Lake City to Denver flights. As the traf-
fic manager for civilian agencies, GSA needs to provide
greater assistance to the agencies. Agencies have not ob-
tained the lowest fares because employees are unaware of dis-
counts offered--especially group fares and such specials as
off-peak fares.
In our review we saw little effort by GSA or other de-
partments and agencies to take advantage of group fares. GSA
should assist Federal agencies in Washington and other major
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cities to achieve travel savings by (1) making group reserva-
tions for Federal employees traveling to cities visited fre-
quently and (2) informing agencies of the special discount
fares offered by airlines.
GSA SHOULD HELP AGENCIES GET
DISCOUNT AIR FARES
As shown. earlier, large amounts are lost because there
is no system for consolidating reservations for Federal em-
ployees traveling to the same city. GSA, in conjunction with
other Federal agencies, should identify the most common des-
tinations and days and time of departure of Federal employees
traveling from each major city where numerous agencies are
located. With this information, GSA could review specific
airline tariffs for group fares or find out from the airlines
whether such fares are offered on commonly used flights and,
if so, what the requirements are to qualify for the group
fare. For flights with available group fares, GSA could tell
the agencies how much advance notice was needed so it could
make and pay for group reservations on a reimbursable basis.
If not enough employees are listed with GSA by the time
reservations need to be.made, GSA could inform the agency,
allowing it to make. reservations for its employees. We be-
lieve that GSA also could assist agency employees in making
group reservations for multiagency conferences, as well as
for travel to various cities.
This particular method is not necessarily the best or
only method for handling group reservations.
Publicizing special fares
Although GSA is responsible for disseminating traffic
management information to civilian agencies, some GSA offi-
cials said they do not publicize or emphasize the availa-
bility of special airline fares. We believe that because.
of this lack of publicity, many Federal agencies are not
aware of such fares.
Knowing about special fares would be useful to many
agencies. For instance, agency officials recognized their
responsibility to obtain the lowest-fares but said it was
difficult to keep informed about changing fares and related
rules. It would be helpful if GSA informed them about the
availability of lower fares.
GSA regularly publishes bulletins informing Federal
agencies of items and services it provides. These bulletins
could be used to communicate information on airline fares.
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BETTER AUDIT COVERAGE AND CONTROL
OVER EMPLOYEE TRAVEL IS NEEDED
Federal agencies need to audit employee compliance with
Federal travel regulations. Our multiagency audit disclosed
that most of the agencies visited lacked control over em-
ployee travel. Frequently, agency officials were not aware
of the potential travel savings nor of employees' failure to
comply with Federal travel regulations because problems had
not been identified and reported to management. Although
some agencies' internal audit staffs- reported on selected
areas of employee travel, we found no audits specifically
evaluating whether employees were using the lowest available
air fares or the adequacy of agency accounting controls and
procedures to control travel costs.
CONCLUSIONS
Considering our extensive review and the examples we
identified, it seems probable that the practices at other
agencies, Government contractors, and Federal grant recip-
ients are the same. Accordingly, we conclude that millions
of dollars in airline fares could be saved if agencies ob-
tained available discounts and that these savings can be
achieved without disrupting agency business or reducing
passenger service. Because of the large savings possible,
Government agencies should try to ensure that discount fares
are obtained.
None of the agencies we visited had examined or analyzed
why discount fares were not used. It would be beneficial
to record when discounts are available for particular trips
and when and why travelers do not obtain the lower fares. We
recognize that travelers will not always be able to obtain
discount fares because of inapplicable situations. However,
keeping records should provide management with information
on how much their efforts have saved. Also, analyzing trav-
elers' explanations of why discounts were not taken should
help to identify ways to obtain these discounts in the future.
Management in each agency is responsible for establish-
ing internal audit priorities which should be reflected in
the agency's audit plan. Because of the lack of audits of
employee use of discount air fares and because of the large
savings available with their use, we believe that managers
should reassess their auditing plans. They should determine
whether.there is a need to adjust audit priorities or in-
crease audit resources to provide the necessary oversight.
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Although agencies should give greater attention to
obtaining the lowest air fares, the full potential of these
savings cannot be realized without the leadership and
assistance of GSA.
With GSA's assistance in establishing procedures for
grouping reservations, Federal agencies could save more on
transportation. GSA would be able to consolidate reserva-
tions for travelers from several agencies. This assistance
could be available for travel to various cities, as well
as for multiagency conferences.
RECOMMENDATIONS
To ensure that Federal agencies use discount air
fares, as required, and to reduce transportation costs in
line with congressional objectives, we recommend that the
heads of departments and agencies
--review the use of airline discount fares and
inform employees of the potential for savings,
--establish, in agency travel organizations,,
adequate accounting for savings on discounts
taken and procedures for recording and analyzing
explanations for not taking discounts, and
--evaluate audit priorities and staff resources
to determine the need for periodic internal
audits of the use of discount fares.
To achieve savings through increased use of group fares
and other special fares, we recommend that the Administrator
of General Services
--regularly inform Federal agencies of discount
air fares available between commonly traveled
locations;
--determine the feasibility of establishing a
system for consolidating Federal traveler
reservations in cities where there is substantial
travel by Federal employees; and
--evaluate the feasibility of providing assistance
to agencies sponsoring multiagency conferences
by making and paying for, on a reimbursable basis,
group-fare reservations for attendees.
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AGENCY COMMENTS AND OUR EVALUATION
The Office of Management and Budget, the General Serv-
ices Administration, the Department of Transportation, and
the Department of Defense provided written comments on this
report. (See apps. V through VIII for copies of their com-
ments.) These agencies agree that discount air fares should
be used whenever possible and that methods of obtaining air-
line tickets should be reviewed. The agencies also agree
that better administrative controls are needed to ensure use
of discount fares. The following sections summarize each
agency's comments on our recommendations for increasing use
of discount airline fares.
Office of Management and Budget
OMB agreed that the Government could derive substantial
benefits through the establishment and maintenance of effec-
tive administrative controls over air travel. Particularly,
OMB believed that Government managers should emphasize in-
forming potential travelers.of available fare and service
options.
OMB officials also agreed with our recommendation that
periodic audits of agency travel may be appropriate in light
of the varied treatment now given-to air travel by agencies.
Periodic internal audits could serve to ensure the maximum
utilization of discount fares. OMB stated that the recent
proliferation of discount fares makes it extremely difficult
to administer a comprehensive system for recording and ana-
lyzing explanations for not taking the lowest available fare.
While Government travelers should be encouraged to select
the lowest fare consistent with their travel needs, OMB does
not favor burdening travelers with excessive paperwork to
justify their final choice.
Our recommendation that travelers justify using coach
fares when discount fares might have been used is not in-
tended to burden the traveler with excessive paperwork. We
are recommending that agency travel units account for sav-
ings on discount fares taken and record travelers' or travel
units' reasons. for not obtaining a discount air fare. This
could be done on a sample basis at the time reservations are
made. Management needs this information to identify problems
which hinder agencies from obtaining the economical air fares.
This information should aid managers in reducing air travel
costs and should inform managers of the benefits derived from
agency efforts. Also, the accounting for savings on dis-
counts taken could provide management with justification data
for larger travel service units.
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Department of Transportation
The Department of Transportation shares our view that
increased use of discount air fares will result in considera-
ble savings of travel dollars. The Department plans to au-
dit its travel practices and monitor the travel arranged
by Department travel service units, paying particular at-
tention to the use of discount air fares.
General Services Administration
GSA supports our recommendations encouraging the use
of discount airline fares. GSA commented that individual
agencies are responsible for keeping each traveler informed
of special fares and for establishing internal procedures
to ensure that reservations are made sufficiently in advance
to qualify for reduced fares..
GSA agreed that it may be able to assist agencies in'
effecting some marginal increase in savings by regularly
informing Federal agencies of discount air fares available
between commonly traveled locations. GSA believed, however,
that in providing this information to agencies, it would
be duplicating information already available in issues of
the "Official Airline Guide" and through advertisements
in newspapers and on the radio.
Federal agency officials recognize their responsibility
to obtain the lowest available fare for travelers. However,
they stated that it is difficult for them to keep informed
of the latest fares and the rules to qualify for them be-
cause the rules change frequently. While it would be unrea-
sonable for GSA to publish information on all available air-
line discount fares, GSA should regularly inform agencies
of the availability of lower fares between the cities most
commonly traveled by Federal workers. We believe this will
help agencies to make greater use of discount air fares.
GSA informed us that it is making a study to evaluate
the feasibility of providing more passenger traffic manage-
ment assistance to Federal agencies and to determine the
kind of assistance which should be provided. The study is
to include the feasibility of establishing a system for con-
solidating Federal traveler reservations and to take advan-
tage of group fares. Because of the potential savings
available with the use of these fares, we encourage GSA to
complete its study expeditiously.
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Department of Defense
DOD agreed that Federal agencies have not taken full
advantage of discount airline fares. DOD plans to publicize
discount fares in future transportation newsletters and
magazines as well as at transportation seminars conducted
for DOD personnel. DOD suggested we emphasize that travel
arrangements need to be made through Government transporta-
tion officers, where available, and as far in advance of the
travel date as possible.
DOD's Defense Audit Service has agreed to-give appro-
priate consideration to the use of discount air fares when
planning audits in the transportation area. Recognizing
the significance of discount air fares and good transporta-
tion management, DOD stated:
"To assist in raising the level of interest in this
important management function, it is suggested that
your final report explicitly state the need for ad-
ministrators and individual travellers to ensure
travel arrangements are made through Government
transportation officers where available and as far
in advance of the travel as possible."
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CHAPTER 3
TELETICKETING--THE WAY TO ACHIEVE ADMINISTRATIVE
SAVINGS AND BETTER ACCOUNTING CONTROL
Teleticket machines provide a means for effective
accounting control over disbursements for air travel and for
reducing the administrative costs of procuring airline tickets.
When Government employees and agencies use GTRs to obtain
and pay for airline tickets at airports or. airline ticket
offices, administrative costs can average over $5 a ticket.
Teleticket machines conveniently allow agencies to make bulk
purchases and payments for airline tickets, thereby reducing
the average administrative cost per ticket.
In 1973 and 1974 GSA published information on the nature
and purposes of teleticketing, the usefulness of automatic
payment procedures, and the methods for obtaining teleticket
services. Since that time GSA has done little to encourage
the use of teleticket equipment or to determine if the agen-
cies that adopted the teleticket system are using it properly.
GSA interprets its role, where teleticket systems are con-
cerned, as travel system advisor and believes any changes in
an agency's process of obtaining airline tickets must be
initiated by the agencies.
GSA's efforts to persuade agencies to use teleticket
machines have had limited success. During our review, we
noted that many agencies, particularly at regional and
field locations,
--were unaware of the teleticket process;
--were unaware of, or did not follow, established
procedures; and
--had not considered multiagency use of machines.
We also noted that GSA had not published any informa-
tion on the cost of renting teleticket machines, the
possibilities of joint use, or the potential cost benefits
from purchasing teleticket machines.
HOW TELETICKET MACHINES CAN REDUCE
ADMINISTRATIVE COSTS ASSOCIATED WITH
PROCURING AIRLINE TICKETS
Proper use of teleticket machines substantially reduces
administrative costs of air travel.
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Reductions occur in costs associated with
--obtaining airline tickets,
--processing GTR payments,
--processing refund applications for unused tickets,
and
--auditing fares paid.
For agencies acquiring airline tickets at airports or
through airline ticket offices and using a GTR for each
ticket, we estimated that the costs described above ranged
between $5 and $11. The costs depended on the distance
between agency offices and airline ticket offices. In con-
trast, an efficient teleticket facility could decrease these
costs to about $1 a ticket for a machine which issues 300
tickets a month.
Costs associated with obtaining
airline tickets can be reduced
Teleticket machines reduce costs incurred in obtaining
tickets since the tickets are printed by the machine in the
agency travel office. Savings can be large for agencies
located some distance from airline ticket facilities and
for those with substantial travel requirements.
A-1974 GSA analysis of the amount of time spent in
acquiring tickets from airline ticket offices showed that
the average time was about 25 minutes, excluding the time
required to make a reservation. Based on this average time,
the cost for obtaining a ticket could vary between $3 and
$6, depending on the salary of the person obtaining the
ticket.
GTR processing costs can be reduced
A 1969 Joint Agency Transportation Study, sponsored
by the Joint Financial Management Improvement Program showed
the cost of administering a GTR to be $2. We analyzed the
GTR process at three agencies in the Denver area and found
the cost to be about $3 a GTR. This figure is close to the
Joint Agency Transportation Study amount, when adjusted for
inflation.
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A GTR is a document which, when presented to an air
carrier, authorizes the air carrier to issue tickets to
Government travelers. A GTR also authorizes the air carrier
to bill the Government agency for services provided. When
tickets are obtained from an agency's teleticket machine,
a single GTR can be used for all tickets obtained from the
machine during a designated period (usually 1 week).
Some of the agencies we visited did not use teleticket
machines to obtain airline tickets even though they author-
ized large amounts of travel. For example, a number of Armed
Forces Examining and Entrance Stations we visited processed
more than 2,500 GTRs a year at an estimated cost of about
$8,000. Most of these GTRs could be eliminated by obtaining
the tickets from teleticket machines and using one GTR to
obtain a number of tickets. Examining Station personnel
said they were unfamiliar with teleticket equipment and its
advantages.
Several agencies with teleticket machines were issuing
an excessive number of GTRs. For example, the Department
of Labor headquarters, which has two teleticket machines
in the same building, issued about 20,000 GTRs for about
21,000 airline tickets in fiscal year 1976. Less than 25
percent of the airline tickets were obtained from the
agency's teleticket machine because employees were not re-
quired to use it. Most employees chose to use a single GTR
and pick up their ticket from airline ticket offices or air-
ports. Also, the travel office used a single GTR for each
ticket obtained over the teleticket machine. Using the $3
figure for processing a GTR, this practice cost Labor about
$60,000 in fiscal year 1976.
At our suggestion, Labor will require all headquarters
personnel to obtain their airline tickets through the agency's
teleticket machines. It also plans to implement an accounting
system whereby one GTR and payment for that GTR will cover
a large number of tickets.
Although GSA headquarters has provided departments and
agencies in Washington, D.C., with guidelines, instructions,
and assistance, numerous regional officials said that GSA
had given them little or no assistance in establishing tele-
ticket operations. This lack of assistance could be the
reason many regional offices did not have an adequate under-
standing of ?teleticket machine use and were issuing and
processing large numbers of GTRs.
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Reduction in the number of ticket
refunds from air carriers
Teleticket machines can be used to reduce the number of
ticket refund claims against air carriers since the teleticket
process permits unused tickets to be voided without payment.
This process provides that the agency can void the unused
ticket and line out the ticket entry on the teleticket list-
ing. Consequently, the agency does not pay for the unused
ticket.
This process differs from the refund practice used when
a GTR is exchanged for an individual ticket. Once the airline
receives the GTR, a refund is required for all unused tickets.
Since the airline only issues the ticket upon receiving the
GTR, refunds for unused tickets cannot be obtained without
using the refund process. We estimated the cost to obtain
refunds amounts to $3 for each ticket.
The GSA Federal Property Management Regulations require
Government agencies to take prompt steps to obtain adjustments
from airlines. However, there was neither prompt action to
obtain refunds nor accounting control at many agencies we
visited. Some agencies waited.months after tickets were
issued without seeking reimbursement. For example, the En-
vironmental Protection Agency in Dallas had 32 unused or
partially used tickets as old as 7 months for which refunds
had not been requested. The estimated value of these tickets
was about $900.
Also, agencies made no followup on outstanding ticket
refund requests. GSA regulations require that if within 3
months from the issuing of a claim for reimbursement the air
carrier has failed to make the refund or failed to explain
why no refund was due, the agency should contact. GSA so
further action can be taken. The Mining Enforcement and
Safety Administration, in Denver had 57 ticket refund requests
outstanding which were 4 to 30 months old." The Department
of Labor in?Dallas had '18 requests outstanding which were
3 to 54 months old. Neither agency had determined why the
refunds had not been obtained, nor had they contacted GSA
for help in-obtaining refunds.
The value of the outstanding Labor tickets was over
$1,100, but the value of the outstanding Mining Enforcement
and Safety Administration tickets could not be determined.
The agency neither recorded the amount of expected refunds
nor kept copies of unused tickets. The agency used whatever
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the airline returned as a refund to automatically close the
account. This procedure was also followed by the GSA office
in Ft. Worth. It had requested refunds for 41 tickets but
could not determine the value of the expected reimbursement.
Because teleticket machines would reduce the number of
paid for but unused airline tickets, agencies would have less
travel funds in the possession of air carriers. These funds
could be used to meet the agencies' current travel needs.
Teleticketing helps simplify the
audit of travel payments
Public Law 93-604 requires GSA to "examine, settle, and
adjust accounts involving payments for transportation and
related services for the account of the United States."
GSA auditors stated that the auditing is simplified and
more efficient when airline tickets are obtained from tele-
ticket machines and a single GTR covers a number of tickets.
Benefits from this process include:
--Reduction in paperwork shuffling. Instead of
sorting through numerous GTRs to identify those
to be audited, the auditors have a teleticket
listing containing a number of tickets from
which to choose.
--Increase in the accuracy of audit support.
Teleticket listings identify actual travel,
stopovers, and fare class more accurately than
GTRs.
In addition to these benefits, GSA auditors said that
far fewer ticket rate errors occur on tickets obtained over
teleticket machines. Personnel who issue tickets over
teleticket machines are more experienced than those at airline
ticke$\counters. Also, there is more of a chance for human
error when an airline ticket is written in busy airports and
airline ticket offices.
OPPORTUNITIES FOR AGENCIES TO
SHARE TELETICKET MACHINES
Sharing teleticket machines would benefit many agencies,
particularly those which obtain only small numbers of airline
tickets. We noted several cases where regional and field
offices would benefit from shared interagency or interdepart-
mental use of machines.
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The Department of Health, Education, and Welfare (HEW)
headquarters in Washington, D.C., and some of the regional
offices have centralized interagency teleticketing opera-
tions. For example, in Denver, HEW has a single machine in
the Federal Office Building to issue tickets.for six of the
Department's agencies. This machine issues 300 to 400 tickets
a month and is operated by one employee who also has other
responsibilities.
On the other hand, many agencies within the same depart-
ment do not share machines. For example, the Job Corps had
operated a machine in Denver for several years but did not
issue tickets for other Department of Labor agencies. Con-
sequently, Labor's Regional Office of Administration and
Management ordered a second machine to be installed in the
same building as the Job Corps machine. After we told Labor
that the second machine was unnecessary because the Job Corps
could share its machine, the order for the second machine was
canceled.
San Francisco was the only location where we observed
a successful large-scale interdepartmental use of tele-
ticketing with automatic payment procedures. At that loca-
tion, GSA provided tickets for itself and two'Treasury agen-
cies. Staff of both agencies said the operation fulfilled
their needs.
In each regional city we visited, multiagency office
buildings did not have teleticket machines. Although joint
use would benefit all participants, neither GSA nor the other
agencies occupying the buildings had acted to provide for
joint use.
The U.S. Postal Service and the Postal Inspection
Service in Atlanta are in the same building. A Postal Inspec-
tion Service official said the agency did not use the Postal
Service's teleticket machine because it believed the
GTR volume was too low. Officials were not aware that they
could share,a machine regardless of GTR volume. As a result
of our suggestion that the agencies share the machine, a
procedure for joint use was developed and implemented.
We believe GSA needs to further promote the shared use
of teleticket machines. While all agencies and departments
could benefit. from sharing, no organization is willing to
take the initial step.
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CONCLUSIONS
Although GSA has provided headquarters offices of
departments and agencies with teleticketing guidelines and
procedures, many regional officials were not aware of them.
Agency headquarters offices should provide their field of-
fices with information needed to effectively administer
travel. If regional travel volume is large enough to war-
rant the use of the teleticket machines, headquarters offi-
cials should provide regional offices with information from
GSA or agency procedures on appropriate use of the machines.
Although GSA has published general information on the
usefulness of teleticket facilities, several agencies have
not adopted a teleticket system. GSA guidelines detail
machine benefits, but they are inadequate concerning infor-
mation on joint use and machine cost.
Agencies need to improve their processes for refunding
tickets. These improvements must be initiated by the
individual agencies. To adequately control this process,
agencies must determine the appropriateness of refunds and
follow up promptly on refund requests.
RECOMMENDATIONS
We recommend that the heads of all departments and
agencies
--provide regional offices with GSA and agency
guidelines and procedures to implement
teleticket machine use and
--ensure that ticket refund requests are timely
and that adequate control over the amount of
refunds is established.
We also recommend that the Administrator of General
Services .
--amend GSA guidelines and bulletins to include infor-
mation on sharing teleticket machines,
--direct each GSA regional office to survey machine use
in its region for compliance with GSA guidelines, and
--direct each GSA regional office to work with agencies
to increase use of teleticket machines.
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AGENCY COMMENTS AND OUR EVALUATION
Office of Management and Budget
OMB stated that it supported our effort to reduce over-
head costs associated with obtaining airline tickets. It
suggested that a comprehensive study of different methods
of obtaining airline services, covering services provided
by Scheduled Airline Ticket Offices, might be worthwhile.
These offices are staffed and managed by airline personnel
and provide reservation, ticketing, billing, and refund
services to Government agencies occupying space in Federal
buildings.
During our review, we observed the operation of
selected Scheduled Airline Ticket Offices. Given suffi-
cient air traffic volume, it appears they can be an accept-
able alternative to a teleticket machine. While these
offices have a number of advantages, they usually require a
relatively large volume of air travel business to warrant
the airlines establishing them. Our report focused on tele-
ticket machines because we found them to be an inexpensive,
convenient way for agencies to make bulk purchases and pay-
ments for airline tickets. Even if the volume is small, the
machine will significantly reduce the average administrative
costs per ticket issued.
Department of Transportation
The Department of Transportation agreed to examine its
present methods of obtaining air tickets and to consider
if the reduced cost and the convenience of teleticketing can
be made available to more Department activities.
General Services Administration
GSA agrees that it should amend guidelines and bulletins
to include information on sharing teleticket machines. GSA
will direct its regional Transportation Services Divisions
to continue to work with agencies to effect increased use of
teleticket machines when teleticketing is determined to be
the most economical method of ticket procurement.
Department of Defense
DOD agreed that its activities should be notified of
guidelines and procedures for using teleticket machines. DOD
informed us that the Joint Service Military Traffic Management
Regulations contain guidelines and implementing procedures
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on the use of teleticket machines. A change to the publica-
tion will soon be issued that will promulgate the latest
teleticketing services negotiated in 1977 by GSA with the Air
Traffic. Conferences of America.
DOD commented that alternatives to teleticket
machines such as computerized terminals should be explored.
During our review we observed the use of computerized
terminals for making airline reservations. Although we did
not evaluate this system in detail, it appears that it could
be a feasible alternative given sufficient air traffic volume.
We might add, however, that these systems still require a
machine to-print the ticket. Existing teleticket machines
should be considered for the printing function during cost
analyses.
26
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CHAPTER 4
POTENTIAL SAVINGS BY PURCHASING
TELETICKET MACHINES
The Federal Government could have saved at least $145,000
in fiscal year 1977 if Federal agencies had owned rather than
leased the 172 teleticketing machines in use at that time.
Agencies have not considered purchasing these machines pri-
marily because GSA has not clearly indicated in the Authorized
Federal Supply Schedule Catalog for Communication Terminals
that teleticket machines can be purchased.
Because a teleticket machine can pay for itself in about
2 years, many agencies have paid more through lease payments
than it would have cost to buy them. The National Bureau of
Standards has used the same machine in Boulder, Colorado, since
1962. GSA has used its Washington and San Francisco machines
for more than 11 years. The cost to lease a teleticketing
machine is about $100 a month or $1,200 annually, while these
machines can be purchased for $1,650 each. The GSA catalog
lists the basic machine plus an attachment at just over
$2,000. But even at this price, it would cost less-to pur
chase rather than lease machines.
Savings available Government-wide are sizable and could
be even greater as more agencies learn of the advantages of
these machines and install them. For example, one vendor's
selling price for a teleticket machine was.$1,650. Based
on the manufacturer's estimate of the machine's useful life
(2,000 hours) and a ticket issuance rate of 300 a month,
the machine would last about 200 months, or 17 years. The
monthly cost, therefore, would be $8.25 ('$1,650 : 200 months).
With a maintenance contract, which costs about $20 a month,
the monthly purchase cost would be about $30, compared to
$100 a month for leasing. The savings would be $70 a month
for each machine, and the total annual savings available
throughout the Government, therefore, would be about
$145,000 (172 machines X $70 a month).
When we explained that teleticket machines could be
purchased for under $2,000, officials of several agencies
said they would consider purchasing" a machine, and officials
of two agencies already have placed orders for machines.
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GSA SHOULD CLARIFY CATALOG
AND CONSIDER OTHER SOURCES
Although GSA has Government-wide procurement responsi-
bilities for civilian Federal agencies, its Authorized
Federal Supply Schedule Catalog for Communication Terminals
did not identify and list teleticket machines as available
for purchase. The catalog did list an item which, if properly
equipped with several options, could be used as a teleticket
machine; however, the catalog did not specifically state
which options were necessary to make the system work as a
teleticket machine. As a matter of fact, the catalog was so
vague even GSA's contracting officer for this equipment
was unaware that the machine could be used for teleticketing.
We believe GSA should consider other sources of tele-
ticket machines because we found lower prices available
from another vendor.
CONCLUSIONS
Agencies have leased teleticket machines when it would
have been cheaper to purchase them. In fact, they had not
adequately considered the option of buying machines because
they lacked information about this option. We believe that
because of its Government-wide procurement responsibilities,
GSA should publicize the purchase option and help agencies
get the lowest price possible.
RECOMMENDATIONS
Considering the sizable savings possible through
purchasing teleticket machines, we recommend that the Ad-
ministrator of General Services
--inform agencies of the cost advantages of purchasing
rather than leasing teleticket machines and
--include teleticket machines in the Authorized
Federal Supply Schedule Catalog for Communication
Terminals as being available for purchase.
AGENCY COMMENTS AND OUR EVALUATION
GSA agreed that purchasing rather than leasing
teleticketing machines has considerable merit but would
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like to study it. Considering the cost advantages of pur-
chasing these machines, we question the need for a study.
We believe that GSA should inform each agency of the cost
advantages of purchasing teleticket machines and should
assist agencies in obtaining these machines.
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CHAPTER 5
SCOPE OF REVIEW
We reviewed and evaluated accounting system controls and
related procedures developed by selected Federal agencies to
determine whether these controls and procedures are adequate
to minimize Federal employee air travel costs.
We limited our work to evaluating the adequacy of controls
to ensure economical travel; we did not question or evaluate
the need for travel. At the agencies visited, we interviewed
travel and accounting officials regarding established controls
and procedures and examined agency records to determine whether
reduced airline fares were used. This work was performed at
selected agencies in 7 departments and 2 independent agencies
in the Washington, D.C. area, and at offices in 10 departments
and 14 independent agencies in 5 Federal regions--Atlanta,
Dallas, Denver, Kansas City, and San Francisco. (See app. IV
for agencies contacted.)
We also met with officials of several airlines in the
Washington, D.C., and Denver, Colorado, areas to discuss the
availability of group discount air fares and to enlist their
cooperation in evaluating the volume of Federal employee air
travel to and from selected locations.
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 APPENDIX I APPENDIX I
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B-103315
August 25, 19TT
SUBJECT: SAVINGS AVAILABLE BY USING
AIRLINE DISCOUNT FARES
This memorandum is to bring to your attention the poten-
tial for immediate savings by informing your employees that
they should use airline discount fares when feasible rather
than regular coach-class air fares.
Most major airlines offer. discount fares that are about
15 to 35 percent lower than coach-class fares. ?Section 1-3.4
of the Federal Travel Regulations and chapter 304, paragraph
304002. of the military Traffic Management Regulations require
the use of special lower fares when practical. We are making
a Government-wide review of the use of established teleticketing
procedures. which are intended to simplify the Government's
accounting for and payment of airline tickets. In visiting 20
departments and agencies in the Washington, D.C., area as well
as field offices of 40 departments and agencies, we determined
that most agencies are not taking advantage of these lower air
fares."
One of the most frequently missed discount fares is the
round-trip excursion fare. Excursion fares generally are
available when
--reservations are confirmed and tickets are purchased
at least 14 days before departure,
--only a maximum of two stopovers (including the destina-
tion) are scheduled, and
--the travel period is for at least 7 but not more than
30 days.
The restrictions requiring that reservations be confirmed at
least 14 days in advance prevent some travelers from using
excursion fares because travel plans are not always firm
that far in advance. However, it is important to note that
there is no penalty for canceling or changing a reservation
made to take advantage of the excursion rate. The fare would
revert to the coach fare, and a new ticket would be obtained.
FGMSD-77-67
(90609)
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Much of the travel by Federal employees, especially
that connected with training courses, seminars, and con-
ferences, qualifies for excursion fares, because travel
dates usually are known at least 14 days in advance. Thus,
sizable savings could result. Also, each summer many
thousands of military reservists receive active-duty train-
ing for a 2-week period. The reservists usually are noti-
fied of their training dates several months before depart-
ing for summer camps and thus could in many cases obtain
excursion fares.
Savings.also can accrue to Federal agencies by using
group fares rather than coach-class fares. Group fare re-
quirements vary by airline and by flight and are usually
more restrictive than requirements governing excursion
fares. The discounts, however, are generally greater than
excursion fares (up to 35 percent of'coach-class fares).
Federal travel office personnel are aware of discount
air fares but have not always used them because travelers
requested airline tickets too late to take advantage of
the discounts. Also, at agencies where travelers made
their own reservations, discount fares generally were not
obtained apparently because travelers were not aware of
them.
We believe that several million dollars is being lost
annually Government-wide because travelers and travel of-
fices are not taking advantage of discount fares, even
though Government regulations require them to do so.
A draft of this memorandum was furnished to the General
Services Administration for comment's. The Director of the
Federal Travel Management Division responded:
"Our Government-wide responsibilities in developing
and prescribing per diem, travel, transportation,
and relocation allowances for civilian Federal
employees includes traffic management programs and
procedures for procuring passenger services from
the carrier industry.
"In the Federal Travel Regulations (FPMR-101-7),
as well as in information bulletins issued to
assist agencies in these matters, we direct the
use of special, commutation. excursion, and re-
duced round-trip fares for official travel and
even group or charter arrangements * * *
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 APPENDIX I APPENDIX I
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B-103315
"We believe the subject of your memorandum
will place greater emphasis on the use of such
fares and will produce significant savings on
a Government-wide basis. More and more special
or reduced fares are being offered by the car-
rier industry and we fully support your pro-
posal in this regard."
I suggest you review the use of airline discount fares
in your agency and communicate to your personnel the poten-
tial for additional Government savings by increased use of
these fares. Also, because travel office personnel are
generally more knowledgeable about available discounts.
your employees should be required to use their services
when appropriate.
74U.4
Comptroller General
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 APPENDIX II
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MILITARY TRAFFIC MANAGEMENT COMMAND'S
MESSAGE OF MAY 13, 1977, TO THE HEADQUARTERS
OF ALL MILITARY SERVICE BRANCHES INCLUDING
RESERVE UNITS AFTER GAO'S MEETING ON
DISCOUNT AIR FARES AND TELETICKETING SERVICE
Subject: Discount Air Fares and Teleticketing Service
1. On 4 May 1977 DOD and GAO met to discuss DOD procurement
of discount air fares and use of teleticketing systems to
simplify the billing process. As agreed in that meeting,
the following information and guidance was developed to
aid transportation officers in procuring lowest cost trans-
portation:
a. Discount fares - Transportation Officers/Agents
and offices arranging travel or directing travel on a
reimbursable basis are reminded that a number of reduced
or discount airline fares, other than those applicable
specifically to DOD, are available to the public, but can
be used for official DOD travel. In general, these fares
fall into three categories: (1) Reduced Fare Classes--
Night Coach, Thrift, Off-peak, etc., (2) Excursion Fares,
and (3) Group Fares - YG 10, SG 10, etc.
(1) Reduced fare and excursion fare costs and the
general rules of application are contained in the Official
Airline Guide (OAG). Flight coach reduced fares are gener-
ally applicable between 2100 and 0700 hours and may be
suitable for some TDY travel. Excursion fares do require
advance reservation/ticket purchase and involve minimum/
maximum stay periods, but may be especially appropriate
for travel of Reserve and National Guard personnel to/from
active duty training.
(2) Group fares for travel arranged by Transportation
Officers under the delegated authority provisions of
Chapter 306, Joint Military Traffic Management Regulation
(MTMR) (AR 55-355, NAVSUP Pub 444 (Rev), AFM 75-2, MCO
P4600.14A, DSAR 4500.3) are also available between many
points in CONUS. Information on group fares should be
available at any location where airline tickets are for
sale or may be obtained by contacting the HQ MTMC Tariff
Branch, AUTOVON 289-1630 or Area Code 202, 756-1630.
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 APPENDIX II APPENDIX II
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b. Teleticketing - Those TO's who do not have
sufficient passenger traffic to warrant the services of
a SATO (Scheduled Airline Ticket Office - formerly JAMTO)
are requested to consider the feasibility of installing
a teletypewriter ticketing service as described in Chapter
314 and Appendix M, MTMR. In addition to the evaluation
factors specified in Paragraph 314004, MTMR, the potential
should be considered for reducing the number of GTR's
issued by adapting new or existing teleticketing operations
to automatic payment procedures variously identified as
APP by GSA, LOPA by DA, and local purchase and payment of
airlines service by DAF. Payment procedures are described
in Chapter 10, Section B, AFM 75-8 and the brochure entitled
"Automatic Payment Procedures" which may be secured from the
GSA Transportation Services Division at the nearest GSA Re-
gional Office. A change to the MTMR describing these pay-
ment procedures has been forwarded for printing and will soon
be published in Chapter 319, MTMR.
2. Information similar to the foregoing will be published
in the MTMC Traffic Management Information Letter and Trans-
log Magazine.
3. Request the above information be given widest dissemina-
tion.
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EXTENT OF NONUSE OF AIRLINE EXCURSION
FARES BY NINE FEDERAL AGENCIES IN
DENVER, COLORADO, DURING OUR REVIEW
Percent of
travelers
qualifying but
Number of Amount of not using
travelers discounts excursion fares
Department and agency sampled not used (note a)
Department of Agricul-
ture:
Soil Conservation
Service 38 $ 197 15.8
Department of Commerce:
National Bureau of
Standards (note b) 1,206 3,502 5.9
Department of the Interior:
Bureau of Reclamation 879 1,006 3.0
Mining Enforcement and
Safety Administration 279 796 5.7
National Park Service 404 1,196 5.4
Department of Labor:
Employment Training
Administration (Job
Corps) 255 536 7.1
Department of Transpor-
tation:
Federal Aviation
Administration
Federal Highway
Administration
Civil Service
Commission
440 2,010
327 821
152 256
Total 3,980 $10,320 5.5
a/None of the sampled travelers qualifying for excursion fares
used them.
b/Includes all travelers using Commerce's teleticket machine.
The travel office provides travel services for several other
agencies.
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DEPARTMENTS AND AGENCIES CONTACTED
DURING OUR REVIEW
WASHINGTON, D.C.
Department of Defense:
Department of the Army
Department of the Navy
Military Traffic Management Command
Department of Health, Education, and Welfare:
Office of the Secretary
Office of Education
Department of Housing and Urban Development
Department of the Interior:
Office of the Secretary
National Park Service
Bureau of Outdoor Recreation
Department of Labor:
Office of the Secretary
Bureau of International Labor Affairs
Department of Transportation:
Office of the Secretary
Federal Aviation Administration
Department of the Treasury:
Office of the Secretary
Bureau of Government Financial Operations
U.S. Customs Service
Internal Revenue Service
General Services Administration
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FIELD LOCATIONS
Department of Agriculture:
Food and Nutrition Service
Forest Service
Soil Conservation Service
Department of Commerce:
National Bureau of Standards
National Oceanic and Atmospheric Administration
Department of Defense:
Department of the Air Force
Department of the Army
Department of the Navy
Marine Corps
Department of Health,' Education, and Welfare:
Center for Disease Control
Department of Housing and Urban Development
Department of the Interior:
Bureau of Land Management
Bureau of Reclamation
Mining Enforcement and Safety Administration
National Park Service_
United States Fish and Wildlife Service
Department of Justice:
Drug Enforcement Administration
Immigration and Naturalization Service
Law Enforcement Assistance Administration
Department of Labor:
Employment-and Training Administration
Department of Transportation:
Federal Aviation Administration
Federal Highway Administration
National Highway Traffic Safety Commission
Department of the Treasury:
Bureau of Alcohol, Tobacco and Firearms
Internal Revenue Service
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 APPENDIXr,IV ""`ly/y~~ y
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INDEPENDENT AGENCIES
ACTION
Civil Service Commission
Community Services Administration
Energy Research and Development Administration
Environmental Protection Agency
Equal Employment Opportunity Commission
Federal Energy Administration
Federal Mediation and Conciliation Service
Federal Power Commission
General Services Administration
Nuclear Regulatory Commission
Small Business Administration
United States Postal Service
Veterans Administration
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EXECUTIVE OFFICE 0= THE PRESIDEN'
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. O.C. 20551
Mr. D. L. Scantlebury
Director, Finance and General
Management Studies Division
General Accounting Office.
441 G Street, N. W.
Washington, D. C. 20548
Dear Mr. Scantlebury:
We have reviewed your draft report entitled "Discount Airline Fares
and Teleticketing: Ways to Achieve Savings and Better Accounting
Control over Government Travel Expenses" and believe that the GAO
has done a good job of highlighting some of the significant problems
relating to government travel practices in the commercial airlines
area. We agree with the report that substantial benefits could be
derived through the establishment and maintenance of more effective
administrative controls over airline travel by the Federal Government.
The suggestion that agencies closely monitor travel activity via.
periodic internal audits to assure maximum utilization of discount
fares may be appropriate in light of the varied treatment now given
to air travel by agencies. However, the recent proliferation of
discount fares approved by the CAB would make it extremely difficult
to administer a comprehensive system for collecting and analyzing
explanations for not taking the lowest cost available fare. In addi-
tion to discount fares subject to special terms and'conditions the
CAB is considering reducing the restrictions on charter travel so that
this type of low cost service would become very attractive to the
individual traveler. Furthermore, the Board is considering a zone of
fare flexibility which would allow market-by-market economy and first
class fare reductions with minimal CAB oversight. All these develop-
ments are leading toward a plethora of price and service options for
the government traveler to consider. While government travelers
should be encouraged to select carefully the-lowest price option con-
sistent with their travel needs, we should not burden them with
excessive paperwork to justify their final choice.
40
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We believe the primary attention of government managers should be
on developing ways to inform potential travelers of the available
price and service options. To this end, we believe the focus of
this report is correct in attempting to provide up-to-date informa-
tion to the travel user through the efforts of the General Services
Administration as well as the agencies.
With regard to your recommendation that agencies increase their
utilization of teleticketing machines where feasible and that GSA
facilitate the economic purchase of such machines through its
authorized Federal Supply Schedule Catalog, we support the GAO intent
to reduce overhead costs now associated with alternative methods of
securing airline tickets as well as the current costs of leasing tele-
ticketing machines. We would recommend that the report also include
the suggestion for a comprehensive study of other opportunities avail-
able to agencies in securing airline services, such as those provided
by GSA's Scheduled Airlines Traffic Offices. These offices are staffed
and managed by airline personnel and provide free-of-charge reservation,
ticketing, periodic billing, and ticket refund services to government
agencies occupying space in Federal buildings. Such arrangements are
very effective and economic to the government in areas where there is
substantial Federal air travel.
We hope that the comments provided above will assist you in the prepara-
tion of the final report. We regret the delay in providing them to you.
Sincerely,
Dennis 0. Green
Associate Director for
Economics and Government
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APPENDIX VI APPENDIX VI
OFFICE OF THE SECRETARY OF TRANSPORTATION
ASSISTANT SECRETARY
FOR ADMINISTRATION
Mr. D. L. Scantlebury
Director, Division of Financial
and General Management Studies
U.S. General Accounting Office
Washington, D.C. 20548
April 11, 1978
Dear Mr. Scantlebury:
This is in response to your request that the Department review and
comment on the draft proposed report on use of discount airline fares
and teleticketing.
The Department shares the view of the report that increased use of air
discount fares may result in considerable savings of travel dollars. In
fact, Departmental and operating administration guidance has been issued
several times since 1972 on the subject, and employees will continue to
be encouraged to use discount fares when available.
The report recommends that agencies establish within their travel organ-
izations an ability to account for savings resulting from air fare dis-
counts taken. Also, the report states that procedures be instituted
for collecting and analyzing explanations for available discounts not
taken. In this regard it must be pointed out that most of the Department's
travel is not processed through travel organizations. However, procedures
are being developed to monitor that portion of the travel which is handled
through a travel services unit. It is anticipated that the Department's
travel audit practices and the experience gained from monitoring the travel
handled by the travel services unit will enable the Department to attain
a high frequency of discount air fare use.
The Department currently provides systematic audit coverage of all aspects
of internal travel and transportation activity. Future audit coverage will
include a specific review of the use of discount air fares.
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 APPENDIX 'VI APPENDIX VI
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The Department will examine its present methods of obtaining air tickets
to determine where the cost and convenience benefits of teleticketing,
including joint-agency teleticketing, can be made available to Department
activities. Also, Departmental users of teleticketing machines are being
notified to examine the purchase and lease costs of the machines with a
view toward purchasing the equipment where economies can be obtained.
Sincerely,
xdo~4M4~
~v4dward W. Scott, Jr.
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GENERAL SERVICES ADMINISTRATION
WASHINGTON. DC 20405
APR 13137!
Honorable Elmer B. Staats
Comptroller General of the United States
U.S. General Accounting Office
Washington, DC 20548
This is in response to the letter of March 1, 1978, from Mr. D.L. Scantlebury,
Director, Division of Financial and General Management Studies, requesting
our comments on the draft report entitled "Discount airline fares and
teleticketing: ways to achieve savings and better control over Government
expenses." We appreciate the opportunity to comment.
We generally concur in the recommendations contained in the report and
have initiated action to implement them as indicated in the enclosed comments.
Although the General Accounting Office implies that we have failed to take
initiative in making greater use of discount airline fares, we believe that
after reading our comments you will agree with us that we are taking positive
action in this regard.
Jay Solomon
Adr,inlstrator
44
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 APPEIfWf ko For Release 2005/07/14: CIA-RDP81 M00980R0015A 7 J Vii
GSA COMMENTS ON GAO DRAFT REPORT ENTITLED
"DISCOUNT AIRLINE FARES AND TELETICKETING: WAYS
TO ACHIEVE SAVINGS AND BETTER CONTROL OVER
GOVERNMENT TRAVEL EXPENSES"
General comments:
Chapter 1 of the report implies that one of the fundamental reasons the
Government is not making greater use of discount airline fares is GSA's
failure to take initiative in the five management areas discussed below:
1. Performing on-site surveys of transportation activities in Federal
agencies. GAO states on page 3 that surveys ". . . are performed when
invited or requested by an agency, not on GSA initiative. Since November 1,
1976, we have conducted surveys of the traffic management practices of
five agencies. Each of these surveys was initiated by GSA.
2. Recommending changes in agency policies, standards, practices,
and procedures. At the conclusion of a survey, a report is developed and
furnished to the agency involved. Such recommendations are included in
the report, as applicable.
3. Conducting seminars and training courses. The transportation seminar
program receives less emphasis now than in recent years because of budget
limitations and the difficulty of identifying and quantifying the benefits on a
cost benefit perspective. Nevertheless, during the first 5 months of FY 1978,
we have expended over 2,647 manhours in conducting transportation and travel
management seminars. Concurrently, the Civil Service Commission (CSC)
and GSA developed a CSC sponsored Federal Travel Regulation Seminar Program.
GSA specialists both in Central Office and the regions are presently conducting
these seminars." pne of the subjects discussed is the use of special or reduced
passenger fares,..
4. Contracting for transportation related services. We presently have
an indefinite term contract for the use of teleticketing and automated payment
procedures with the Air Traffic Conference of America and a master railroad
ticket contract with the National Railroad Passenger Corporation (Amtrak).
During the first 5 months of FY 1978, we performed 1,653 contract and pro-
curement actions for freight and office relocation transportation and related
services. In addition, 3,148 manhours have been obligated to our passenger
travel and travel service responsibilities.
5. Prescribing travel and transportation regulations. GSA has during
the past year prescribed and revised numerous regulations. The most .
recent regulation pertaining to passenger travel management (FPMR Temp.
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 API 9Md1di. Release 2005/07/14: CIA-RDP81 M00980R0015000VMfl J IX VII
Reg. A-11, Supplement 5, dated March 8, 1978), prohibits the use of
first class air transportation unless such use has been authorized by the
head of the agency, or his deputy. This authority may not be further delegated.
In summary, we believe that we are accomplishing our broad management
responsibilities within current budget allocations. However, this is not to
say that the most cost effective passenger traffic management techniques
are used by all agencies in all locations throughout the country. We believe
that GSA has provided the agencies with s;.`ficient information and guidelines
pertaining to the advantages of teleticketing and the requirement to use the
lowest available fare consistent with the requirements of duty. The problem,
as we view it, lies mainly in reaching the travelers themselves. GAO appears
to share this view.
We accept responsibility for establishing the civilian agency traffic manage-
ment policy and procedures. However, the responsibility for keeping each
traveler in each agency currently informed of special fares, and for establishing
internal procedures to ensure that reservations are made sufficiently in
advance to qualify for reduced fares, belongs to the individual agencies and
not to GSA. In this regard the three recommendations for the heads of
departments and agencies should do much to encourage increased use of
airline discount fares.
Recommendation: GAO recommends that the Administrator of General Services
regularly inform Federal agencies of discount air fares available between
commonly traveled locations.
Comment: We agree that by regularly informing Federal agencies of discount
air fares available between commonly traveled locations, GSA may be able
to assist agencies in effecting some marginal increase in savings. However,
we could only duplicate the information already available to each travel
office in the bimonthly issues of the North American Edition of the "Official
Airline Guide," and through daily advertisements in newspapers and on radio.
Recommendation: GAO recommends that the Administrator of General Services
ask agencies. to make improvements in administrative procedures to achieve
greater use of discount air fares.
Comment: We believe that procedural improvements will be achieved if
agencies implement the recommendations contained in this report. We do
not feel that our asking agencies to make these improvements will have
any substantial impact because the written policy pertaining to use of
discounted fares has long been established in the Federal Travel Regulations
1-3.4b.
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Recommendation: GAO recommends that the Administrator of General Services:
-- Determine the feasibility of establishing a system for consolidating
Federal traveler reservations in cities from which there is substantial
travel by Federal employees; and
-- Evaluate the feasibility of providing assistance to Federal agencies
sponsoring multi-agency conferences by making and paying on a reimbursable
basis, for group fare reservations for attendees.
Comment: We are presently conducting a study which' will enable us to
evaluate the feasibility of providing more passenger traffic management
assistance to Federal agencies and to relate the kind of assistance which,
should be provided to the various reservations and ticket procurement
concepts. The study will include the feasibility of establishing a system
for consolidating Federal traveler reservations, providing group fare
reservations, and assisting agencies sponsoring multi-agency conferences.
There are, however, some problems associated with our paying for the
group fare tickets on a reimbursable basis. First, since many programs
compete for inclusion or expansion into the General Supply Fund (GSF), it
will be necessary to carefully determine the impact which this use would
have on the GSF. Second, we must ensure that the costs of developing and
maintaining an accounting and payment system for this purpo6e do not exceed
the transportation savings associated with purchasing group fare tickets.
In the meantime, we have established Scheduled Airlines. Traffic Offices
(SATO' s) in Chicago, Illinois, and San Francisco, California. These offices
are staffed and manged by airline personnel and provide free-of-charge
reservation, ticketing, periodic billing, and ticket refund services to the
Government agencies occupying space in Federal buildings or complexes
of buildings : SATO's offer substantial advantages over teleticketing: They
can provide better service to more agencies than teleticketing; Government
staffing is not required; and they obviate the need for numerous (and
relatively expensive) teleticket machines in a single Government complex.
SATO's are only established where there is a substantial amount of Federal
travel. GSA is working with the Air Transport Association and with other
agencies to establish similar offices for consolidating Federal traveler
reservations in New York, New York, Atlanta, Georgia, Honolulu, Hawaii,
and Anchorage, Alaska.
Recommendation: GAO recommends that the Administrator of General Services:
-- Amend GSA guidelines and bulletins to include information on basic
purchase and rental costs of teleticket machines as well as joint use information.
-- Direct each GSA regional office to survey machine use in its region
for compliance with GSA guidelines.
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-- Direct each GSA regional office to work with agencies to effect increased
use of teleticket machines.
We generally concur with the first recommendation and, as indicated below,
will consider including this information during our study.
Through our nationwide traffic management survey program, we will
continue to survey teleticket machine utiliz :ion by Federal executive
agencies.
We will direct our regional Transportation Services Divisions to continue
to work with agencies to effect increased use of teleticket machines when
teleticketing is determined to be the most economical method of ticket
procurement.
Recommendation: GAO recommends that the Administrator of General Services:
-- Negotiate with vendors to obtain the lowest possible volume price; and
-- Notify agencies that the purchase of teleticket machines is a cost
effective alternative to leasing them.
Comment: The Federal Supply Schedule is for various types of communication
terminals, and not specifically planned for teleticket machines as terminal
end use application. This recommendation appears to have considerable
merit, and is deserving of more detailed study. The method of procurement
and supply with cost/benefit guidance to agencies as to lease or purchase
would be part of the study. It is therefore requested that this recommendation
be changed to propose a detailed study on which the teleticketing program
and the implementing guidelines and bulletins would be based.
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 APPENDIX VIII APPENDIX VIII
MANPOWER.
RESERVE AFFAIRS
AND LOGISTICS
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Mr. D. L. Scantlebury
Director, Division of Financial
and General Management Studies
U. S. General Accounting Office
Washington, D. C. 20548
Dear Mr. Scantlebury:
1, RMfi; 1978
This is in reply to your letter to the Secretary of Defense regarding
your draft report dated March 1, 1978. on "Discount Airlines Fares and
Teleticketing - Ways to Achieve Savings and Better Accounting Control
over Government Travel Expenses." OSD Case #4829, GAO Code 90609.
The Department of Defense (DoD) agrees with your findings that agencies
have not taken full advantage of discount airlines fares and associated
savings. As noted in your report the DoD's Military Traffic Management
Command (MTMC) actively encourages the use of discount fares and we
are pleased to report that in 1977 each Military Department and Defense
Agency issued messages or memoranda on this subject similar to the
MTMC message included as Appendix 11 of your report. Our efforts in
this area are continuing and information about discount fares will be the
subject of future articles in transportation newsletters and magazines as
well as semiannual transportation seminars conducted by MTMC for
DoD transportation personnel.
The recommendation that procedures be established to account for savings
on discounts taken and record explanations for not using discount fares
is not definitive. While the necessity for some recordkeeping procedure
is acknowledged, it is possible that retaining records on all travellers
could result in an administrative burden that would offset the possible
advantages. Whereas much of the temporary duty trips made in DoD
are of a short duration and, therefore, not generally compatible with
excursion fares, the travel in conjunction with school and training of
employees and military reservists is identified in your report as having
a high potential for saving. Therefore, it is recommended that record-
keeping efforts be concentrated in those areas which tend to be moat
compatible with excursion fares. This is not to suggest that transpor-
tation personnel will reduce their efforts to use discount and excursion
fares for all DoD travellers when such fares meet the official travel
requirements.
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ASSISTANT SECRETARY OF DEFENSE
WASHINGTON. O. C. 20301
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In response to the recommendation concerning audits, the Defense Audit
Service has reviewed your report and will ensure its subject receives
appropriate consideration when planning future audits in the transportation
field.
We concur with your recommendations concerning teleticketing. The
Joint Service Military Traffic Management Regulations contain guidelines
and implementing procedures on the use of teleticket machines and a
change to that publication will soon be issued that will promulgate the
latest teleticketing services negotiated in 1977 by General Services
Administration (GSA) with the Air Traffic Conference of America.
Although the recommendation to consider purchasing, in lieu of leasing.
teleticket machines was directed to the GSA, the following comment is
offered. Recently some airlines have offered to lease Government
agencies computer terminals that provide electronic reservation and
ticketing services. Since this type of system would, in effect, replace
a teleticket machine it is suggested that GSA may wish to include these
devices in any study it might conduct to develop new guidelines in
regard to the acquisition and use of reservation and ticketing equipment.
In closing we again endorse the need to intensify passenger traffic
management but also note that the efforts of transportation personnel
alone cannot suffice. To assist in raising the level of interest in this
important management function, it is suggested that your final report
explicitly state the need for administrators and individual travellers
to ensure travel arrangements are made through Government transpor-
tation officers where available and as far in advance of the travel date
as possible. Conscientiousness and cooperation by all concerned are
essential to facilitate the use of discount fares and other cost saving
devices while providing responsive travel services.
Sincerely,
SIDED
ROBERT B. PIRIE, JR.
Principal Deputy Assistant Secretary
of Defense (MRA&L)
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 APP 66 qcj For Release 2005/07/14: CIA-RDP81 M00980R001A9 ] A-6I X
PRINCIPAL OFFICIALS RESPONSIBLE FOR ADMINISTERING
ACTIVITIES DISCUSSED IN THIS REPORT
Tenure of office
From To
GENERAL SERVICES ADMINISTRATION
ADMINISTRATOR OF GENERAL SERVICES:
Joel W. Solomon
May
1977
Present
Robert T. Griffin (acting)
Feb.
1977
Apr.
1977
Jack Eckerd
Nov.
1975
Feb.
1977
Arthur Sampson
June
1973
Oct.
1975
FEDERAL SUPPLY SERVICE
COMMISSIONER OF FEDERAL SUPPLIES:
Robert P. Graham
July
1977
Present
J. H. Bolton (acting)
Apr.
1977
July
1977
Wallace H. Robinson, Jr.
Feb.
1976
Apr.
1977
J. H. Bolton (acting)
Nov.
1975
Feb.
1976
Michael J. Timbers
June
1973
Oct.
1975
Milton S. Meeker
Jan.
1972
June
1973
(90609)
There are several officials in each Federal agency
that are responsible for management of agency
travel costs including associated personnel and
administrative costs. These officials have not
been identified above because they are so numerous.
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