Travel is a common part of federal contract work. Many contractor employees spend time on the road for meetings, site visits, or project work. Travel can add up in cost, but there are discounts available. Federal contractors are not treated the same as federal employees, but they still have access to certain savings on rail, hotels, motels, and car rentals.
Contractor employees must use available travel discounts for Amtrak, hotels, and car rentals when they lower the trip cost. GSA city pair airfares are not available to contractors. Vendors may require a Contracting Officer signed ID letter.
This article explains the Contractor Employee Travel Discounts clause, why it matters, and how contractor employees can use it.
Purpose of the Travel Discount Clause
The Federal Acquisition Regulation supplement includes a clause titled 952.251-70 Contractor Employee Travel Discounts. It directs contractors to take advantage of travel discounts when those discounts are available and make trips less expensive overall.
The goal is simple: save government money. When a contractor employee is on official travel for a federal contract, they should use the discounts provided by vendors such as Amtrak, hotels, motels, and rental car companies.
Contractors must look for these savings and use them if the discounts are reasonably available.
Key Points of the Clause
The clause provides clear rules for contractor travel discounts. Here are the main parts:
- Use of Discounts: Contractors must use available discounts when it reduces the total cost of a trip. This includes Amtrak rail discounts, hotel and motel rates, and car rental discounts.
- Contracted Airlines: Federal contractor employees cannot use GSA’s city pair contract fares. Those fares are reserved only for direct federal employees.
- Discount Rail Service: Amtrak voluntarily offers discounts for federal travelers on official business. Sometimes Amtrak extends these rates to federal contractor employees.
- Hotels and Motels: Many hotels and motels extend government rates to contractor employees. While not guaranteed, these rates are often offered as long as the traveler can show proof of working under a federal contract.
- Car Rentals: The Department of Defense negotiates car rental agreements through the Surface Deployment and Distribution Command (SDDC). Some rental companies extend those same discounted rates to contractor employees.
- How to Obtain Discounts: Contractors can review travel publications or check with GSA Travel Management Centers or Department of Defense Commercial Travel Offices. Some vendors may require a formal letter of identification signed by the Contracting Officer before honoring the discount.
How Contractor Employees Get Discounts
Contractor employees get discounts by showing proof that they work under a federal contract. They first check which vendors offer discounts, then confirm the rate is available, and finally present a letter of identification signed by the Contracting Officer to the vendor.
Getting travel discounts requires a few steps.
Step 1: Identify Available Vendors
Contractors can use travel publications like the Official Airline Guide’s Official Traveler or Innovata, or contact GSA Travel Management Centers. These sources list vendors that offer discounts to government contractors.
Step 2: Confirm Availability
Not all vendors automatically extend discounts to contractors. Each vendor sets its own rules. The contractor should confirm that the rate applies before booking.
Step 3: Provide Proof of Eligibility
Many vendors require a letter of identification. This letter must be signed by the authorized Contracting Officer and presented to the travel provider.
Standard Letter of Identification
The clause provides an example of a letter contractors can use. It includes:
- The name of the traveler
- The contractor company name
- The government contract number
- Contract dates
- A clear statement that the traveler is authorized to use available travel discounts (except airline city pair fares)
The letter must be on official agency letterhead and signed by the Contracting Officer. Without this letter, many vendors will not provide the discounted rate.
Examples of Travel Discounts for Contractors
Amtrak
Amtrak often extends government discounts to federal contractors traveling for official business. The discount may be 10% or more off the base fare. It can reduce the cost of regular trips between cities.
Hotels and Motels
Many large hotel chains allow contractors to book government rates. This can lead to significant savings, especially in cities where hotel rates are high. Contractors must show identification or the official letter at check-in.
Car Rentals
Car rental companies that participate in the SDDC agreement may extend those rates to federal contractors. These rates usually include benefits such as collision damage waiver and unlimited mileage.
What Contractors Cannot Use?
It is important to note that contractors cannot access everything federal employees can. GSA contract city pair airfares are not available to contractors. These fares are deeply discounted airline tickets that only federal employees may use. Contractors must book airfare through commercial channels.
Why This Matters?
Travel is one of the largest costs for contractors working under federal agreements. By using discounts, contractors help reduce total project costs. This benefits both the contractor and the government.
For the contractor, using discounts makes billing more accurate and helps avoid disputes over travel costs. For the government, it ensures taxpayer money is spent wisely.
Best Practices for Contractors
Contractors can make the most of travel discounts by following a few practices:
- Order the letter of identification early so there are no delays at check-in or booking.
- Check vendor policies before booking, as not every location honors contractor discounts.
- Keep records of discount use to show savings on invoices.
- Train employees on how to request discounts and what documents they need.
Common Questions Contractors Have
Do I always have to use the discount?
Only when it lowers the total trip cost and the service is reasonably available.
What if the discount is not offered in the city I travel to?
Then the contractor is not required to use it. Discounts only apply when they are available.
Who provides the letter of identification?
The letter comes from the Contracting Officer assigned to the contract.
Are contractors treated the same as federal employees?
No. Contractors cannot use city pair airfares, and not all vendors extend discounts to them.
Can federal contractor employees use government hotel rates?
Yes. Many hotels and motels extend government rates to federal contractor employees. Proof of eligibility, such as a letter from the Contracting Officer, is usually required at check-in.
Are contractor employees allowed to use GSA city pair airfares?
No. Contractors are not eligible for GSA city pair fares. Those fares are reserved for direct federal employees only.
How do contractor employees get Amtrak discounts?
Amtrak often extends its federal travel discount to contractors traveling on official business. The contractor must present proper identification or a signed letter of eligibility from the Contracting Officer.
Do car rental discounts apply to contractors?
Yes, in some cases. Car rental companies that participate in the Department of Defense SDDC agreement may extend those rates to federal contractors. The contractor should confirm availability before booking.
Is a letter of identification always required?
Many vendors require it. The letter must be signed by the Contracting Officer and confirm that the traveler is an employee of a company under contract with the government.
Can contractors choose not to use discounts?
Discounts must be used if they result in a lower total trip cost and are reasonably available. If the discount does not apply in a given location, contractors are not required to use it.
Where can contractors find information about available discounts?
They can review commercial travel publications such as the Official Airline Guide’s Official Traveler, Innovata, or National Telecommunications. They can also check with GSA Travel Management Centers or Department of Defense Commercial Travel Offices.
How often should a contractor update travel discount information?
Contractors should check rates and availability for every trip. Vendor participation may change from time to time, and policies differ by location.
Summary
The Contractor Employee Travel Discounts clause helps lower the cost of federal contract travel. While contractors cannot access airline city pair fares, they may still benefit from discounts on Amtrak, hotels, motels, and car rentals.
To use these discounts, contractor employees often need a letter signed by the Contracting Officer. By preparing ahead and booking with vendors that honor contractor discounts, companies can reduce costs and stay compliant with contract rules.
