B-140659, FEBRUARY 3, 1960, 39 COMP. GEN. 554

B-140659, FEBRUARY 3, 1960, 39 COMP. GEN. 554

TRANSPORTATION - TELETICKETING CONTRACTS - PROPRIETY A TELETYPE TICKET SERVICE CONTRACT BETWEEN GENERAL SERVICES ADMINISTRATION AND AN AIRLINE UNDER WHICH, IN EXCHANGE FOR GOVERNMENT TRANSPORTATION REQUESTS, AIRLINE TICKETS ARE ELECTRONICALLY TRANSMITTED AND ISSUED TO EMPLOYEES FOR OFFICIAL TRAVEL BY MEANS OF A TELETYPE TICKET RECEIVER IS PROPER, PROVIDED THAT THE GOVERNMENT AND ITS EMPLOYEES ARE EXEMPT FROM ANY LIABILITY IN EXCESS OF THAT INCIDENT TO CONVENTIONAL PROCEDURES, THAT RECOVERY OF UNAUTHORIZED OR EXCESSIVE CHARGES IS LIMITED TO PROCEEDINGS AGAINST PERSONS WHO OBTAIN THE TRANSPORTATION RESULTING IN SUCH CHARGES, THAT PROCEDURES ARE ESTABLISHED FOR HANDLING EXCESS BAGGAGE CHARGES WITH THE AIRLINE CONTINUING TO BE RESPONSIBLE FOR THE VALIDATION STAMP, AND PROVIDED FURTHER THAT ARRANGEMENTS ARE MADE WHICH WOULD PERMIT PARTICIPATION OF OTHER AIRLINES.

TO THE ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION, FEBRUARY 3, 1960:

OUR CIVIL ACCOUNTING AND AUDITING DIVISION HAS RAISED QUESTIONS CONCERNING THE PROPERTY OF A TICKET SERVICE CONTRACT DATED MARCH 23, 1959, BETWEEN DELTA AIR LINES, INC., AND THE ATLANTA REGIONAL OFFICE OF THE GENERAL SERVICES ADMINISTRATION. THE CONTRACT COVERS AN ARRANGEMENT FOR TELETYPE TICKETING, SOMETIMES CALLED "TELETICKETING," UNDER WHICH, IN EXCHANGE FOR GOVERNMENT TRANSPORTATION REQUESTS, AIRLINE TICKETS ARE ELECTRONICALLY TRANSMITTED AND ISSUED TO GOVERNMENT EMPLOYEES FOR OFFICIAL TRAVEL PURPOSES BY MEANS OF A TELETYPE TICKET RECEIVER WHICH IS LOCATED IN THE GENERAL SERVICES ADMINISTRATION OFFICES IN THE PEACHTREE--- SEVENTH BUILDING, ATLANTA, GEORGIA.

UNDER THE CONTRACT IN QUESTION THE GOVERNMENT AGREES TO ARRANGE FOR THE INSTALLATION OF A TELETYPE TICKET RECEIVER; PAY FOR ITS INSTALLATION CHARGES AND OTHER (MONTHLY RENTAL) CHARGES FOR ITS USE (THIS REQUIRES A LEASE WITH THE SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY); REPORT TO DELTA THE RECEIPT ON THE TICKET RECEIVER OF ALL TICKETS; SUBMIT TO DELTA MONTHLY ALL SIGNED TRANSPORTATION REQUESTS RECEIVED; BE RESPONSIBLE FOR THE VALIDATING STAMP SUPPLIED BY DELTA AND FOR THE MISUSE OF THE STAMP AND TICKETS; CONFORM TO DELTA'S INSTRUCTIONS FOR VALIDATING TICKETS; ALLOW DELTA TO INSPECT UNUSED TICKETS; GIVE RECEIPTS TO DELTA FOR ALL BLANK TICKET FORMS SUPPLIED; AND RETURN AT DELTA'S REQUEST AT ANY TIME ALL TICKET FORMS AND THE VALIDATING STAMP. IN RETURN, DELTA AGREES TO FURNISH THE TICKETS THAT THE GOVERNMENT REQUESTS, WHETHER ROUTED VIA DELTA OR COMPETING AIRLINES, AND THE GOVERNMENT RESERVES THE RIGHT TO SELECT FOR THE TRANSPORTATION SERVICE DESIRED THE AIRLINE OF ITS CHOICE. UNDER PARAGRAPH III OF THE CONTRACT, IT IS "THE GOVERNMENT'S RESPONSIBILITY TO INSURE THAT THE TICKETS AND VALIDATING STAMP ARE ADEQUATELY PROTECTED FROM MISUSE BY UNAUTHORIZED PERSONS.'

AS WE UNDERSTAND OPERATIONS UNDER THE CONTRACT, THE GOVERNMENT TRAVELER TELEPHONES THE DELTA TICKET OFFICE AND REQUESTS TRANSPORTATION VIA A PARTICULAR AIRLINE, GIVING THE TRANSPORTATION REQUEST NUMBER AND OTHER RELEVANT INFORMATION SUCH AS THE CLASS OF SERVICE, DATE OF TRAVEL, FLIGHT NUMBER, ETC. DELTA ADVISES THE COST OF THE SERVICES THAT ARE ORDERED VIA THE SELECTED AIRLINE AND CONFIRMS THE RESERVATION. THE TRAVELER COMPLETES THE TRANSPORTATION REQUEST AND A DELTA CLERK TELEPHONES YOUR CLERK WHO IS ADVISED THAT A TICKET IS READY FOR SENDING. THE TICKET INFORMATION IS TRANSMITTED TO THE TELETYPE TICKET RECEIVER WHERE A BLANK TICKET FORM IS COMPLETED AUTOMATICALLY. YOUR CLERK AT THE TELETYPE TICKET RECEIVER STATION ACCEPTS THE COMPLETED AND SIGNED TRANSPORTATION REQUEST TENDERED BY THE TRAVELER, COMPARING THE TRANSPORTATION SERVICE SPECIFIED ON THE TICKET. HE THEN VALIDATES, I.E., STAMPS THE TICKET AND DELIVERS IT TO THE TRAVELER. ONE COPY OF THE AIRLINE TICKET, SIGNED BY THE TRAVELER, IS RETAINED BY THE GENERAL SERVICES ADMINISTRATION.

THE SAVING ACCRUING TO THE GOVERNMENT UNDER THIS ARRANGEMENT THROUGH THE ELIMINATION OF EMPLOYEE TRIPS TO AIRLINE TICKET OFFICES REPORTEDLY IS ESTIMATED TO BE VALUED AT ABOUT $4,700 ANNUALLY, COMPARED WITH AN ANNUAL RENTAL COST OF ABOUT $500 FOR THE USE OF THE TELETYPE TICKET RECEIVER. ARE INFORMED THAT THIS COST IS SHARED EQUALLY BY THE VARIOUS PARTICIPATING GOVERNMENT AGENCIES LOCATED IN THE PEACHTREE--- SEVENTH BUILDING THROUGH REIMBURSEMENTS TO THE GENERAL SERVICES ADMINISTRATION. IT IS INDICATED THAT THE TIME SPENT BY ADMINISTRATION EMPLOYEES IN PARTICIPATING IN THE ARRANGEMENT HAS AVERAGED ROUGHLY AN HOUR A DAY.

WHILE IT APPEARS THAT YOU ARE AUTHORIZED, IN THE EXERCISE OF ADMINISTRATIVE DISCRETION, TO OBTAIN AND UTILIZE FACILITIES OF THE DESCRIBED KIND IN ORDER TO FULFILL YOUR RESPONSIBILITIES UNDER SECTIONS 201 (A) AND 302 (A) OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949, 63 STAT. 377, 383-384, 40 U.S.C. 481 (A), AND 393-394, 40 U.S.C. 252 (A), THERE ARE CERTAIN FEATURES OF THE PRESENT CONTRACT WHICH COULD GIVE RISE TO LEGAL CONSEQUENCES RESULTING IN POSSIBLE GOVERNMENTAL LIABILITIES FOR THE SATISFACTION OF WHICH THE AVAILABILITY OF PUBLIC FUNDS WOULD BE QUESTIONABLE. IN PARTICULAR, WE QUESTION THE PROPRIETY OF THE CONTRACTUAL PROVISION WHEREBY THE GOVERNMENT ASSUMES RESPONSIBILITY FOR THE PROTECTION OF THE AIRLINE VALIDATING STAMP IN VIEW OF SECTION 3648, REVISED STATUTES, 31 U.S.C. 529, INSOFAR AS THAT PROVISION OF LAW REQUIRES THAT PAYMENT FOR ANY SERVICE FURNISHED FOR THE USE OF THE UNITED STATES SHALL NOT EXCEED THE VALUE OF THE SERVICE RENDERED, AND SECTION 3678, REVISED STATUTES, 31 U.S.C. 628, SETTING FORTH THAT " EXCEPT AS OTHERWISE PROVIDED BY LAW, SUMS APPROPRIATED FOR THE VARIOUS BRANCHES OF EXPENDITURE IN THE PUBLIC SERVICE SHALL BE APPLIED SOLELY TO THE OBJECTS FOR WHICH THEY ARE RESPECTIVELY MADE, AND FOR NO OTHERS.'

AS WE SAID IN OUR DECISION OF OCTOBER 30, 1956, B-129003, TO THE ADMINISTRATOR OF THE FEDERAL CIVIL DEFENSE ADMINISTRATION, AN ARRANGEMENT WHEREBY A GOVERNMENT EMPLOYEE WOULD ACT AS ISSUING AGENT FOR AN AIRLINE AND BE PERSONALLY RESPONSIBLE FOR THE SAFEKEEPING AND THE COLLECTION OF TICKETS "MIGHT WELL RESULT IN UNFORESEEN OBLIGATIONS OR LIABILITIES ON THE PART OF THE GOVERNMENT AS A RESULT OF THE EMPLOYMENT OF ITS PERSONNEL IN A DUAL CAPACITY.' A COPY OF THAT DECISION IS ENCLOSED FOR READY REFERENCE. UNDER THE PRESENT ARRANGEMENT AT ATLANTA, MISUSE OF THE AIRLINE VALIDATING STAMP WHICH WOULD LEAD TO THE VALIDATION OF COMPLETED TICKETS FOR TRANSPORTATION NOT PROPERLY AUTHORIZED BY THE GOVERNMENT WOULD GIVE RISE TO CONTROVERSIES BETWEEN THE AIRLINES AND THE GOVERNMENT AS TO LIABILITY FOR PAYMENT OF THE CHARGES ACCRUING FOR THE UNAUTHORIZED TRANSPORTATION. TO AVOID SUCH COMPLICATIONS IT WOULD SEEM ESSENTIAL THAT THE CONTRACTING AIRLINE AGREE TO EXEMPT THE GOVERNMENT AND ITS EMPLOYEES FROM ANY LIABILITY IN EXCESS OF THAT INCIDENT TO CONVENTIONAL TICKETING PROCEDURES AND TO LIMIT ACTION FOR RECOVERY OF UNAUTHORIZED OR EXCESSIVE CHARGES TO PROCEEDINGS AGAINST THE PERSON OR PERSONS WHO OBTAIN TRANSPORTATION RESULTING IN SUCH CHARGES.

THE PROBLEM HAS BEEN THE SUBJECT OF CONVERSATIONS BETWEEN REPRESENTATIVES OF OUR OFFICE AND YOURS. WE HAVE GIVEN CONSIDERATION TO ONE ALTERNATIVE PROCEDURE WHEREBY THE COMPLETED AIRLINE TICKET TRANSMITTED TO THE TELETYPE RECEIVER STATION WOULD BE VALIDATED BY AN AGENT OR SERVANT IN THE EMPLOY OF THE AIRLINE AT OR BEFORE THE TIME THE PASSENGER BEGINS HIS JOURNEY. OTHER WORDS, PROTECTION OF THE VALIDATION STAMP WOULD, AS IS TRUE ORDINARILY IN THE TRADE, CONTINUE TO BE THE AIRLINE'S RESPONSIBILITY. THE GOVERNMENT WOULD BE HELD ACCOUNTABLE FOR THE AIRLINE'S TICKET STOCK ON HAND IN THE TELETYPE RECEIVER, BUT THE COMPLETED TICKET WOULD BE INVALID IN THE ABSENCE OF AUTHENTICATION BY THE AIRLINE. IN ACCORDANCE WITH THE SUGGESTED ALTERNATIVE PROCEDURE THE GOVERNMENT TRAVELER WOULD PRESENT THE PERTINENT GOVERNMENT TRANSPORTATION REQUEST AND THE AIRLINE'S COPIES OF THE TICKET TO THE AIRLINE'S AGENT, USUALLY AT THE AIR TERMINAL. THE AIRLINE'S AGENT WOULD RETAIN THE ORIGINAL TRANSPORTATION REQUEST AND SUCH COPIES OF THE TICKET AS ARE NOT REQUIRED BY THE TRAVELER. SUCH A PROCEDURE FOR THE VALIDATION OF TICKETS WOULD NOT SEEM TO BE UNDULY BURDENSOME UPON THE AIRLINE AND WOULD RELIEVE THE GOVERNMENT OF A RESPONSIBILITY WHICH HAS ALWAYS BEEN ASSUMED BY THE CARRIERS. IT WOULD ALSO SERVE AS AN ADDITIONAL CHECK ON THE ISSUANCE AND VALIDATION OF CARRIER TICKETS IN EXCESS OF THAT SPECIFIED IN THE GOVERNMENT TRANSPORTATION REQUEST WHICH BY ITS TERMS (CONDITION 1 ON THE BACK OF THE REQUEST) LIMITS GOVERNMENT RESPONSIBILITY FOR CHARGES TO TRANSPORTATION AND ACCOMMODATIONS OF THE TYPE, CLASS OR CHARACTER SPECIFIED IN THE REQUEST AND MAKES IT THE CARRIER'S DUTY TO COLLECT ANY EXCESS CHARGES FROM THE TRAVELER.

AN ADDITIONAL CONSIDERATION WHICH SUGGESTS THE DESIRABILITY OF HAVING THE VALIDATION PROCESS REMAIN THE AIRLINE'S RESPONSIBILITY IS THE FACT THAT THERE ARE OCCASIONS WHEN THE GOVERNMENT TRAVELER HAS EXCESS BAGGAGE. UNDER PRESENT CONDITIONS THE SO-CALLED GOVERNMENT EXCESS BAGGAGE AUTHORIZATION ( GEBA) IS ISSUED AT THE SAME TIME AS THE FLIGHT TICKET. AUTHORIZATION FOR THE HANDLING OF EXCESS BAGGAGE IS REFLECTED EITHER IN THE GOVERNMENT TRANSPORTATION REQUEST SPECIFYING THE CLASS AND CHARACTER OF THE TRANSPORTATION SERVICE OR IN A SEPARATE TRANSPORTATION REQUEST COVERING EXCESS BAGGAGE ONLY. TELETICKETING ARRANGEMENTS DO NOT NOW AFFORD ANY SUBSTITUTE FOR THE PRESENT METHOD OF HANDLING OF THE PAPERWORK FOR THE EXCESS BAGGAGE AUTHORIZED TO BE CARRIED SINCE THE EXACT WEIGHT TO BE CARRIED IS NOT DETERMINED UNTIL THE TRAVELER'S ARRIVAL AT THE AIRPORT TO PREPARE FOR HIS JOURNEY. VALIDATION OF THE FLIGHT TICKET AND OF THE EXCESS BAGGAGE DOCUMENT BY THE AIRLINE'S AGENT AT THE SAME TIME AT THE AIRPORT WOULD TEND TO ELIMINATE CONFUSION AND TO MAINTAIN UNIFORMITY FOR THE CONVENIENCE OF THE GOVERNMENT AND THE TRAVELER. INDEED, THERE IS NO APPARENT REASON WHY SUCH COINCIDENTAL HANDLING SHOULD NOT BE ADVANTAGEOUS TO THE AIRLINE AS WELL.

ANOTHER FEATURE OF THE ATLANTA TELETICKETING CONTRACT WHICH IS SUBJECT TO CRITICISM IS THE REQUIREMENT THAT ALL TICKETING ARRANGEMENTS BE MADE WITH DELTA AIR LINES, INC., REGARDLESS OF THE INITIAL AIRLINE TO BE USED FOR THE TRANSPORTATION, ALTHOUGH THE GOVERNMENT RESERVES THE RIGHT TO SELECT THE SCHEDULED AIRLINE OF ITS CHOICE. THIS CONTRAVENES 5 GAO 2040.30 WHICH REQUIRES THAT TRANSPORTATION REQUESTS BE DRAWN ON THE CARRIER WHICH IS EXPECTED TO HONOR THEM FOR SERVICE. THERE ALSO EXISTS IN THAT SITUATION A POTENTIAL SOURCE OF DISCRIMINATION AGAINST OTHER AIRLINES CAPABLE OF PROVIDING THE NECESSARY SERVICE. WE UNDERSTAND, HOWEVER, THAT THIS OBJECTION COULD BE ELIMINATED BY THE INSTALLATION OF LATER MODEL TELETYPE EQUIPMENT WHICH WOULD PERMIT THE DIRECT PARTICIPATION OF OTHER AIRLINES IN THE ARRANGEMENT, ENABLING TRANSMISSION OF THE FLIGHT TICKET INFORMATION TO THE TELETYPE RECEIVER BY ANY PARTICULAR AIRLINE SELECTED AND NAMED IN THE TRANSPORTATION REQUEST ISSUED BY THE GOVERNMENT. IT WOULD SEEM NECESSARY THAT ALL INTERESTED AIRLINES SERVING THE SAME POINT BE SIGNATORIES TO THE JOINT CONTRACT UNLESS THEY HAVE SEPARATELY DESIGNATED ONE PARTICULAR LINE AS THEIR AGENT IN THE MAKING OF THE CONTRACT, OR UNLESS SEPARATE CONTRACTS ARE NEGOTIATED WITH EACH AIRLINE.

INTEREST HAS BEEN EXPRESSED BY YOUR REPRESENTATIVES IN EXPANDING UTILIZATION OF THE TELETICKETING TECHNIQUE OF OBTAINING TRAVEL DOCUMENTATION REQUIREMENTS INTO OTHER AREAS WHERE SAVINGS ARE DEMONSTRABLE. AS NOTED ABOVE, WE HAVE DISCUSSED THIS MATTER GENERALLY WITH YOUR REPRESENTATIVES; WE SHALL, OF COURSE, BE GLAD TO CONTINUE DISCUSSIONS IN THE INTEREST OF CONTRIBUTING TO THE SOLUTION OF ANY PROBLEMS THAT MAY BE ENCOUNTERED IN THE PREPARATION OF SUITABLE ARRANGEMENTS AT ANY PARTICULAR PLACE. IT IS POSSIBLE THAT OTHER TRANSPORTATION MEDIA SUCH AS THE RAILROADS AND BUS/LINES WILL SEEK TO PARTICIPATE IN A TELETICKETING ARRANGEMENTS AT VARIOUS LOCATIONS, AND APPARENTLY THE DEVICES USED ARE ADAPTABLE TO USE BY THE RAILROADS AND BUS/LINES.

WE APPROVE THE TELETICKETING ARRANGEMENT AT ATLANTA AND AT OTHER PLACES AS THE NEED AND DESIRABILITY ARE ADMINISTRATIVELY DETERMINED TO EXIST, PROVIDED THAT THE PRESENT CONTRACT AND OTHERS FOR THE SAME PURPOSE ARE REVISED TO INCLUDE PROVISIONS CONSISTENT WITH THE VIEWS AND CONDITIONS STATED HEREIN AND SUBJECT TO FURTHER REVIEW BY OUR OFFICE, AS OCCASION REQUIRES, OF OPERATIONS PURSUANT TO SUCH ARRANGEMENT AT SELECTED LOCATIONS AND INSTALLATIONS, FOR THE PURPOSE OF DETERMINING WHETHER THE INTERESTS OF THE UNITED STATES ARE BEING MATERIALLY SERVED IN THE INSTANCES INVOLVED.