MEMORANDUM
DATE: March 10, 2000
ACTION: Extension of Class Deviation from FAR 31.205-46(a)(2)
{original signed by}
David J. Litman
Senior Procurement Executive
Procurement Management Council Members
On June 14, 1999, I granted the Department of Transportation contracting officers the authority to deviate from the Federal Acquisition Regulation (FAR) 31.205-46(a)(2), in accordance with FAR 1.404, as implemented by the Transportation Acquisition Manual (TAM) 1201.404. The purpose of this memorandum is to extend the class deviation until new FAR coverage is issued.
Effective January 1, 1999, the computation of Federal Travel Regulations (FTR) maximum per diem rate limitations was significantly
changed. The lodging taxes are now separated from the per diem rates and will be paid separately as a miscellaneous expense. This change could cause contractors to incur significant administrative burden and substantial cost in modifying their system to comply with the new
rule.
A change to FAR 31.205-46(a)(2) is being proposed that will delete the maximum per diem rate limitations.
Contracting officers may give contractors the choice of either using the FTR rates and definitions in effect on December 31, 1998, OR the FTR rates and definitions that took effect January 1, 1999. The deviation DOES NOT permit contractors to choose between the different per diem rates on a case-by-case basis. Instead, the contractor must choose between the 1998 FTR definitions and rates or the 1999 definitions and rates for all pertinent contracts related travel.
This deviation remains effective until issuance of the applicable FAR change. The original class deviation was coordinated with the Chairperson of the Civilian Agency Acquisition Council.