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GSA City Pair Program Saves Billions for Federal Agencies

More than $2 billion saved annually through government’s air travel program

WASHINGTON, D.C.—The U.S. General Services Administration (GSA) awarded its Fiscal Year 2019 City Pair Program air travel contracts, which will save the government approximately $2.38 billion next year. Under the GSA City Pair Program, airfare rates for the federal government’s official travel are pre-negotiated and firm-fixed-price, offering a 49 percent discount on comparable commercial fares. In addition to offering considerable discounts, the City Pair Program allows the federal government maximum flexibility in how it books air travel, with benefits including no cancellation or change fees.

“Since it began in 1980 with just 11 markets, GSA’s City Pair Program has delivered great value for taxpayers,” said GSA’s Federal Acquisition Service Commissioner Alan Thomas. “Today, with more than 11,000 markets, this Best-In-Class contract solution is not just one of the largest governmentwide contracts FAS awards on a yearly basis - it represents the single largest strategically sourced procurement for negotiated airline fares in the world.“

Eight major U.S. carriers were awarded contracts for FY19. When awarding City Pair contracts to airlines, GSA considers a number of criteria, including availability of non-stop service, total number of flights, flight availability, average elapsed flight time, availability of jet service and price of service. The 2019 FY rates will become effective October 1, 2018.

Key Facts:

  • GSA’s data-driven analytical approach to managing the program and negotiating with the airlines and carriers drives cost savings and program performance.
  • The 2019 CPP has an awarded contract value of $2.205B, compared to $2.13B in FY18.
  • Average domestic fares awarded remained essentially flat at $228 in F19 versus $227 in FY18. Average international fares awarded decreased from $742 in FY18 to $729 in FY19.
  • The City Pair Program continues its global reach with 11,535 total markets being awarded. In FY19 2,766 new markets were awarded for the first time contributing to a 25 percent increase of markets in the program.
  • FY19 utilization of the City Pair Program fares projects an estimate of 9 percent below corporate best-in-class benchmarked fares and a savings of $237 million against those fares.

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Last updated: Apr 16, 2020
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