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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: April 11, 2002

SUBJECT: Federal Property Management Regulations (FPMR) Amendment E-279, Frequent Flyer Miles Earned on Official Travel

SOURCE: Federal Register, April 11, 2002, Vol. 67, No. 70, page 17649

AGENCIES: Office of Governmentwide Policy, GSA

ACTION: Final Rule

SYNOPSIS: GSA is removing FPMR 101-25.103-2, Promotional Material Received in Conjunction with Official Travel from Transportation Companies, Rental Car Companies, or Other Commercial Activities, because a provision of the National Defense Authorization Act for Fiscal Year 2002, Public Law 107-107, provides that federal employees may retain for personal use promotional benefits, including frequent flyer miles, earned on official travel.

EDITOR'S NOTE: The FPMR is Chapter 101 of Title 41 of the Code of Federal Regulations (CFR). It is available at http://policyworks.gov/org/main/mv/fmr/index.htm.

For more on the acquisition-related provisions of the FY2002 National Defense Authorization Act, see the January 2, 2002, FEDERAL CONTRACTS DISPATCH "Enactment of the National Defense Authorization Act for Fiscal Year 2002."

EFFECTIVE DATE: April 11, 2002.

FOR FURTHER INFORMATION CONTACT: Henry Maury, Office of Governmentwide Policy, 202-208-7928.

SUPPLEMENTAL INFORMATION: The Federal Acquisition Streamlining Act of 1995 (Public Law 103-355), Section 6008, Cost Savings for Official Travel, required that promotional items, including frequent flyer miles, earned on official travel were to be used only for official travel. This provision was reflected in FPMR 101-25.103-2, which stated "all promotional materials (e.g., bonus flights, reduced-fare coupons, cash, merchandise, gifts, credits toward future free or reduced costs of services or goods, etc.) received by employees in conjunction with official travel and based on the purchase of a ticket or other services (e.g., car rental) are properly considered to be due the government and may not be retained by the employee."

On December 28, 2001, President Bush signed into law Public Law 107-107, and its Section 1116, Retention of Travel Promotional Items, repealed Section 6008 of Public Law 103-355, so employees are now permitted to retain such benefits for personal use. Therefore, FPMR 101-25.103-2 is repealed.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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