B-103315, FEB. 3, 1967

B-103315, FEB. 3, 1967

TO FISCAL OFFICER:

REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 1, 1966, IN WHICH YOU REQUEST PERMISSION TO PAY A TRAVEL AGENCY FOR TRANSPORTATION SERVICES INADVERTENTLY PROCURED THROUGH IT FOR TWO STAFF MEMBERS OF THE SMITHSONIAN INSTITUTION. IT IS UNDERSTOOD THAT YOU ARE AN AUTHORIZED CERTIFYING OFFICER OF THE SMITHSONIAN INSTITUTION AND THAT IN EFFECT YOU DESIRE A DECISION AS TO WHETHER YOU MAY PROPERLY CERTIFY FOR PAYMENT THE TRANSPORTATION CHARGES BILLED BY THE TRAVEL AGENCY.

YOU POINT OUT IN YOUR LETTER THAT A DEPARTMENT OF ONE OF YOUR MUSEUMS CONDUCTS SEVERAL PRIVATELY FUNDED FIELD RESEARCH PROGRAMS AND RECEIVES FEDERAL SUPPORT AS WELL; THAT CUSTOMARILY, THE DEPARTMENT'S TRAVEL ON OTHER THAN FEDERAL FUNDS HAS BEEN HANDLED THROUGH TRAVEL AGENCIES, AN ACCEPTABLE PROCEDURE UNDER PRIVATE FUND REGULATIONS; THAT RECENTLY, TRANSPORTATION FOR TWO ATTENDEES AT A SYMPOSIUM ON THE "BIOTA OF AMAZON BASIN" HELD IN BELEM, BRAZIL, WAS AUTHORIZED AGAINST FEDERAL FUNDS BY PROPER SMITHSONIAN AUTHORITIES; THAT BOTH ATTENDEES WERE TO PRESENT PAPERS, AND, ONE WAS ALSO ATTENDING THE CONGRESS AS THE SMITHSONIAN REPRESENTATIVE IN THE DEVELOPMENT OF CULTURAL RELATIONS WITH BRAZIL, BUT THAT INADVERTENTLY THIS TRAVEL WAS ARRANGED THROUGH A TRAVEL AGENCY.

FURTHER DEVELOPMENT OF THE MATTER REFERRED TO IN YOUR LETTER SHOWS THAT THE SUBJECT TRAVEL WAS AUTHORIZED AGAINST FEDERAL FUNDS BY PROPER SMITHSONIAN INSTITUTION AUTHORITIES AND U.S. GOVERNMENT TRANSPORTATION REQUESTS NOS. A-7,114,619 AND A-7,114,620 WERE ISSUED BY THE TWO TRAVELERS TO BIANCHI TRAVEL SERVICE, WASHINGTON, D.C., FOR ONE COACH AIRLINE TRIP EACH FROM BALTIMORE, MARYLAND, VIA MIA-NA-BELEM-RG-NEW YORK-PA-WASHINGTON- BRANIFF," THAT IS, BALTIMORE, MARYLAND, TO MIAMI, FLORIDA, VIA NATIONAL AIRLINES; MIAMI, FLORIDA, TO BELEM, BRAZIL, VIA VARIG AIRLINES; BELEM, BRAZIL, TO NEW YORK CITY, VIA PAN AMERICAN AIRWAYS AND NEW YORK CITY TO WASHINGTON VIA BRANIFF AIRLINES.

IT IS FOR NOTING THAT THE GOING TRIPS OF THESE OVERSEAS FLIGHTS WERE REQUESTED AND FURNISHED VIA MIAMI, AND RETURN VIA NEW YORK CITY. ALL OF THE FLIGHT SERVICES WERE FURNISHED BY AMERICAN FLAG CARRIERS EXCEPT THE FLIGHT PORTIONS FROM MIAMI TO BELEM WHICH WERE PROVIDED BY VARIG AIRLINES, A FOREIGN AIR CARRIER WITH AUTHORITY TO OPERATE FROM MIAMI. DURING MAY 1966 THERE WAS NO AMERICAN REGISTERED AIRLINE OPERATING BETWEEN MIAMI AND BELEM SO THAT SCHEDULE VIA THE ROUTE REQUESTED WOULD NECESSARILY REQUIRE THE USE OF A FOREIGN CARRIER, IN THIS CASE, VARIG AIRLINES. THIS SEEMS CONSISTENT WITH YOUR STATEMENT THAT "THE TRAVEL AGENT ACCEPTED THE GTR'S AND ARRANGED FOR TRANSPORTATION ON A FOREIGN CARRIER WHICH BETTER SUITED THE TRAVELERS' SCHEDULES.' IN THIS CONNECTION, THE USE OF VARIG AIRLINES SEEMS AUTHORIZED BY SECTION 3.10., "USE OF AMERICAN AIRPLANES," STANDARDIZED GOVERNMENT TRAVEL REGULATIONS, REVISED EFFECTIVE MARCH 1, 1965.

CHARGES OF $472 PER FLIGHT, THE AMOUNT BILLED BY BIANCHI TRAVEL SERVICE, ARE THE LOWEST AVAILABLE CHARGES VIA ANY CARRIER FOR THE AIRLINE SERVICES REQUESTED AND FURNISHED. THE CHARGES FOR EACH TICKET REPRESENT THE PUBLISHED FARES AND INCLUDE NO TAXES, FEES OR OTHER CHARGES.

THE REMAINING ISSUE APPEARS TO INVOLVE THE FAILURE BY THE TRAVELERS TO COMPLY WITH THE GENERAL ACCOUNTING OFFICE POLICY AND PROCEDURE MANUAL FOR GUIDANCE OF FEDERAL AGENCIES, TITLE 5, PARAGRAPHS 2013.10 AND 2013.20, PUBLISHED IN TITLE 4, CODE OF FEDERAL REGULATIONS, SECTIONS 51.3 AND 51.4.

SECTION 51.3 READS:

"PASSENGER TRANSPORTATION SERVICES BY AIR, BUS, RAIL, OR WATER SHOULD BE PROCURED DIRECTLY FROM CARRIERS. TRAVEL AGENCIES MAY BE UTILIZED ONLY AS PROVIDED IN SEC. 51.4. THEY MAY NOT BE UTILIZED TO SECURE AIR, RAIL, WATER, AND BUS PASSENGER TRANSPORTATION SERVICES, OR ANY COMBINATION THEREOF, (A) WITHIN THE UNITED STATES, CANADA, OR MEXICO; (B) BETWEEN THE UNITED STATES AND CANADA OR MEXICO; (C) FROM THE UNITED STATES OR ITS POSSESSIONS TO FOREIGN COUNTRIES; AND (D) BETWEEN THE UNITED STATES AND ITS POSSESSIONS, AND BETWEEN AND WITHIN ITS POSSESSIONS.'

IT APPEARS THE SMITHSONIAN INSTITUTION IS AWARE OF THE RESTRICTIONS ON THE USE OF TRAVEL AGENCIES IN PROCURING OFFICIAL TRANSPORTATION WITH APPROPRIATED FEDERAL FUNDS BUT DUE TO THE REPORTEDLY DIFFERENT PROCEDURES FOR OBTAINING TRANSPORTATION WHERE FEDERAL AND PRIVATE FUNDS ARE CHARGEABLE WITH THE EXPENSE THAT, IN THIS INSTANCE, TRAVEL WAS INADVERTENTLY ARRANGED BY THE TRAVELERS THROUGH A TRAVEL AGENCY (BIANI TRAVEL SERVICE); YOU ALSO INDICATE THE TRAVELERS HAVE BEEN REMINDED OF THE REGULATIONS PROHIBITING THE USE OF SUCH A TRAVEL AGENCY WHERE APPROPRIATED FUNDS ARE INVOLVED.

IN THE CIRCUMSTANCES, SINCE BOTH THE TRAVELERS AND THE TRAVEL AGENCY APPARENTLY ACTED IN GOOD FAITH, NO EXCESS COSTS HAVE ACCRUED TO THE GOVERNMENT, AND SINCE THE REMINDER TO THE EMPLOYEES SHOULD PREVENT A RECURRENCE OF THEIR USE OF TRAVEL AGENCIES, YOU ARE AUTHORIZED TO CERTIFY THE AMOUNT OF $944 BILLED BY THE TRAVEL AGENCY FOR PAYMENT.

IT IS SUGGESTED THAT IF THEY DO NOT ALREADY SO PROVIDE, IT WOULD BE PROPER TO REVISE OR AMEND THE ADMINISTRATIVE REGULATIONS AND PROCEDURES OF YOUR INSTITUTION TO PRECLUDE THE IMPROPER USE BY OTHER EMPLOYEES OF YOUR INSTITUTION OF TRAVEL AGENCIES WHERE THE TRANSPORTATION IS CHARGEABLE TO APPROPRIATED FUNDS. SEE 5 GAO 2075.10.