31.205-46
Travel costs
Travel costs are only allowable if they are reasonable, within federal per diem limits, properly documented, and justified when exceeding standard rates.
Overview
FAR 31.205-46 governs the allowability of travel costs incurred by contractor personnel on official company business under government contracts. It sets strict limitations on transportation, lodging, meals, and incidental expenses, referencing federal per diem rates and requiring detailed documentation and justification for costs exceeding standard limits. The regulation also addresses airfare, use of contractor-owned or -leased aircraft and automobiles, and the need for advance agreements in certain situations.
Key Rules
- Allowable Travel Costs
- Transportation, lodging, meals, and incidental expenses are allowable if reasonable and properly documented. Costs must not exceed federal per diem rates unless justified and approved.
- Per Diem and Actual Expenses
- Lodging, meals, and incidental expenses must not exceed GSA, DoD, or State Department per diem rates unless special circumstances apply and are justified in writing.
- Special or Unusual Situations
- Higher actual expenses are allowable only if specific regulatory conditions are met, including written justification, officer approval, and, for repetitive use, contracting officer approval.
- Airfare Limitations
- Airfare costs above the lowest available fare are unallowable unless justified by specific business needs and documented.
- Contractor-Owned/Leased Aircraft and Automobiles
- Costs are limited to allowable airfare or reasonable automobile expenses for business use, with strict documentation and manifest/log requirements.
- Documentation Requirements
- All travel costs must be supported by detailed records, including dates, locations, purpose, traveler identity, and receipts for expenses $75 or more.
Responsibilities
- Contracting Officers: Review and approve justifications for higher travel costs, advance agreements, and ensure compliance with documentation requirements.
- Contractors: Ensure travel costs are reasonable, within per diem limits, properly documented, and justified when exceeding standard rates; maintain required records and obtain necessary approvals.
- Agencies: Oversee contractor compliance and review supporting documentation during audits or contract administration.
Practical Implications
- This regulation ensures government funds are used prudently for contractor travel and prevents abuse of travel reimbursements. Contractors must be diligent in tracking, justifying, and documenting travel expenses, especially when exceeding standard per diem rates or using company-owned transportation. Common pitfalls include inadequate documentation, exceeding allowable rates without justification, and failing to obtain required approvals.