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Contractors Fact Sheet

GSA recognizes that contractors often sit next to federal employees, work on the same projects as federal employees, and travel with federal employees. However, contractors are not federal employees.

All of the major airlines have made it clear to GSA that, because the contract rates are so low and the terms so favorable, the airlines would drop out of the City Pair Program (CPP) rather than extend the contract rates to contractors. GSA has made the business decision not to jeopardize the program, or the over $7 billion savings for taxpayers.

GSA cautions agencies that the purchase of contract fare tickets on behalf of contractors is a misuse of the CPP, and could jeopardize its future success. In addition, invitational travel orders and the agency's Centrally Billed Account (CBA) should not be issued or used to allow contractors access/use of Contract City Pair fares. The numbering sequence on the government charge card indicates official government employee travel. If a contractor's commercial fare is put on a CBA, the CBA identifies the traveler as eligible for Airline City Pair contract fares.

GSA Transportation Audits will issue a debit memo whenever the contract fare is lower than the commercial fare. This is why it is important to ensure that separate GSA SmartPay® CBAs are set up for contractor travel, using the account numbering structure that denotes no access to the Airline City Pair fares.

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