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B-201230 L/M, DEC 30, 1980

B-201230 L/M Dec 30, 1980
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WE HAVE REVIEWED YOUR PROPOSAL AND ON THE BASIS OF YOUR SUBMISSION. WE ARE UNABLE TO GRANT YOU THE REQUESTED EXEMPTION. THESE CRITERIA HAVE NOT BEEN SATISFIED. THE QUESTION OF TO WHOM THE GOVERNMENT TRANSPORTATION REQUEST (GTR) WILL BE ISSUED - THE AIRLINE OR THE TRAVEL AGENT - IS UNRESOLVED. YOU HAVE NOT PROVIDED SUFFICIENT INFORMATION CONCERNING THE OPERATION OF YOUR PLAN TO ALLOW US TO EVALUATE ITS MERITS WITH REGARD TO PAYMENT CONTROLS. YOUR REQUEST FOR AN EXEMPTION UNDER 4 C.F.R. 52.3 IS DENIED.

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B-201230 L/M, DEC 30, 1980

PRECIS-UNAVAILABLE

CLYDE C. COOK, VETERANS ADMINISTRATION:

SUBJECT: YOUR LETTER OF NOVEMBER 10, 1980

YOU REQUESTED A PERMANENT EXEMPTION FROM OUR TRAVEL AGENT PROHIBITION, 4 CODE OF FEDERAL REGULATIONS (CFR) 52.3 (1980) FOR THE VETERANS ADMINISTRATION SUPPLY DEPOT, SOMERVILLE, NEW JERSEY. WE HAVE REVIEWED YOUR PROPOSAL AND ON THE BASIS OF YOUR SUBMISSION, WE ARE UNABLE TO GRANT YOU THE REQUESTED EXEMPTION.

IN OUR CIRCULAR LETTER OF AUGUST 20, 1979, WE STATED OUR WILLINGNESS TO LIFT THE PROHIBITION ON AN INDIVIDUAL AGENCY BASIS IF ANY AGENCY COULD SHOW SUCH ACTION WOULD RESULT IN A MORE EFFICIENT AND LESS COSTLY TRAVEL OPERATION. WE FURTHER INDICATED THAT WE WOULD CONSIDER AGENCY PLANS FOR THE USE OF TRAVEL AGENTS ON THE BASIS OF ANALYSES THAT ADEQUATELY DEMONSTRATE THE ECONOMIES TO BE ACHIEVED. THESE CRITERIA HAVE NOT BEEN SATISFIED. OUR AUDIT PERSONNEL INDICATED VARIOUS DEFICIENCIES IN YOUR PROPOSAL. FOR EXAMPLE, THE QUESTION OF TO WHOM THE GOVERNMENT TRANSPORTATION REQUEST (GTR) WILL BE ISSUED - THE AIRLINE OR THE TRAVEL AGENT - IS UNRESOLVED. CURRENTLY, THE GENERAL SERVICES ADMINISTRATION (GSA) REGULATIONS GENERALLY REQUIRE THAT GTR'S BE ISSUED TO CARRIERS ONLY. 41 C.F.R. 101-41.203-1 (1980). YOU HAVE NOT PROVIDED SUFFICIENT INFORMATION CONCERNING THE OPERATION OF YOUR PLAN TO ALLOW US TO EVALUATE ITS MERITS WITH REGARD TO PAYMENT CONTROLS, POST AUDIT OF TICKET SALES, INCREASED OR DECREASED ADMINISTRATIVE COSTS, AND OVERALL IMPACT OF THE PROPOSAL ON OTHER AGENCIES SUCH AS GSA WITH ITS TRANSPORTATION AUDIT RESPONSIBILITIES.

THEREFORE, YOUR REQUEST FOR AN EXEMPTION UNDER 4 C.F.R. 52.3 IS DENIED. HOWEVER, UPON RECEIPT OF A MORE DETAILED REPORT SHOWING EFFICIENCY OF OPERATION, COST EFFECTIVENESS, AND RESPONDING TO THE CONCERNS EXPRESSED IN THIS LETTER, WE WOULD GIVE FURTHER CONSIDERATION TO YOUR REQUEST.

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