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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: January 7, 2000

FROM: Barry McVay, CPCM

SUBJECT: Federal Travel Regulation (FTR) Amendment 88; Increase in Privately Owned Automobile Mileage Reimbursement

SOURCE: Federal Register, January 7, 2000, Vol. 65, No. 5, page 1267

AGENCIES: General Services Administration (GSA)

ACTION: Final Rule

SYNOPSIS: GSA is amending the FTR to increase the mileage reimbursement rate for use of a privately owned automobile (POA) on official travel from 31 cents to 32.5 cents. This increase reflects the current costs of operation as determined in GSA's cost studies.

EDITOR'S NOTE: The FTR is Chapters 300 through 304 of Title 41 of the Code of Federal Regulations (CFR). The regulation being amended by this final rule are under "Chapter 301, Temporary Duty (TDY) Travel Allowances," "Subchapter B, Allowable Travel Expenses," "Part 301-10, Transportation Expenses," "Subpart D, Privately Owned Vehicle (POV)," then "Section 301-10.303, What am I reimbursed when use of a POV is determined by my agency to be advantageous to the Government?"

DATES: The effective date for this change is January 14, 2000.

FOR FURTHER INFORMATION CONTACT: Devoanna R. Reels, Program Analyst, 202-501-3781.

SUPPLEMENTAL INFORMATION: By law, the Administrator of General Services is responsible for establishing the privately owned vehicle (POV) mileage reimbursement rates for automobiles (including trucks), motorcycles, and airplanes. The Administrator of General Services has determined the operating costs of a POA to be 32.5 cents per mile. The administrator made the same determination on September 8, 1998, and FTR 301-10.303 was revised to reflect the 32.5 cents per mile POA reimbursement rate. However, the statute that directs the administrator of General Services to establish the POV mileage reimbursement rates also provides that these rates cannot exceed the single standard mileage rate established by the Internal Revenue Service (IRS). Since the IRS announced that it was decreasing the POA reimbursement rate from 32.5 cents per mile to 31 cents per mile effective April 1, 1999 (because of lower gasoline prices), GSA had to revise FTR 301-10.303 to reflect the 31 cents per mile rate, which it did on March 31, 1999.

The IRS has announced that is increasing the POA reimbursement rate to 32.5 cents per mile, effective January 1, 2000. Therefore, GSA is revising FTR 301-10.303 to reflect the 32.5 cents per mile rate.

With regard to motorcycles and airplanes, the mileage rates remain unchanged (26 cents per mile for motorcycles and 88 cents per mile for airplanes). However, GSA is currently collecting data on the operating costs for motorcycles and airplanes, and FTR 301-10.303 will be revised accordingly when the administrator determines the appropriate reimbursement rates.

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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