LETTER TO TERRY ANGELO (SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88G00186R000700790018-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: October 22, 2010
• Sequence Number: 18
• Publication Date: August 2, 1985
• Content Type: LETTER

Sanitized Copy Approved for Release 2010/10/22 : CIA-RDP88GO0186R000700790018-4
Central kMi8 = Ataxy
Mr. Terry Angelo
Director of Travel and Transportation
Services Division
General Services Administration
Washington, D.C. 20406
Dear Mr. Angelo:
I) b1~ '3 V I~_ L4~-,J/
We would like to thank you for your letter of April 2, 1985 and assure you
that this agency is in full agreement with the Government Contract Airline
Program. Our employees are aware of the importance of compliance with this
program.
The Agency is well aware of the tremendous cost savings which can be
achieved by utilizing the city-pairs and this program is currently in use to
the greatest extent possible. We are in full agreement with the changes to
FPMR A-22 SUPP 3 as proposed at the joint meeting of The Interagency Committee
on Transportation and Traffic Management and Travel Management. We,
furthermore, would like to see this program expanded to cover transoceanic
airline traffic as well; such expansion would further enhance savings in
travel funds.
We are certain that the high cost of TDY, given current budgetary
limitations, is a Government wide problem. Therefore we wish to add our
support to your continuing effort in this area.
Sincerely,
STAT
Special Support Assistant to the
Deputy Director for Administration
Sanitized Copy Approved for Release 2010/10/22 : CIA-RDP88GO0186R000700790018-4
 Sanitized Copy Approved for Release 2010/10/22 : CIA-RDP88GO0186R000700790018-4
General Office of
Services Federal Supply
Administration and Services Washington, DC 20406
AP 2
Mr. Harry E. Fitzwater
Deputy Director of Administration
Central Intelligence Agency
Washington, DC 20505
Dear Mr. Fitzwater:
We would like to take this opportunity to bring you up to date on the status
of the Government contract airline program, which is jointly administered by
the General Services Administration (GSA) and the Military Traffic Management
Ccamand, Department of Defense (DOD). At the same time, we would like to ask
for your continued support in assuring employee compliance with this important
cost saving initiative.
GSA awarded its first city-pair airline contract in July 1980, to four
carriers serving a total of 11 city-pairs. Since that time, the program has
grown substantially. For the current fiscal year, contracts were awarded to
22 carriers serving 644 city-pairs. Contract airline sales for fiscal year 1985
are projected to be $150 million, which represent a savings of $100 million, or
40 percent below the lowest available coach fares. On a market-by-market basis,
the savings range as great as 79 percent below the lowest available coach seats.
In addition to the savings possible through this program, GSA introduced a
number of service enhancements to the city-pair program for fiscal year 1985.
First, contract award criteria were strengthened with respect to time en route
requirements to ensure that where direct air service is the norm, contracts
would be awarded to carriers providing direct service. In fact, the March 1985
issue of our Federal Travel Directory contains 7,855 flights, of which nearly
55 percent are direct. This is a significant increase in service levels over
previous years, particularly at a time when the majority of air carriers are
diverting more and more of their flights to a hub and spoke operation.
Secondly, provision was made for the first time to incorporate a 1-year
renewal clause in the current contracts. With the exception of city-pairs
where no coverage exists, or where current coverage falls short of the
Government's requirements, we plan to exercise options to extend the current
contracts through September 30, 1986, thereby minimizing the uncertainty and
disruption that has cane to be associated with annual changes in contractors.
Finally, the number of city-pairs covered under current contracts represents an
all-time high for the program, and a 48 percent increase in contract coverage
over fiscal year 1984.
Despite the increased contract coverage and service improvements, our data show
that contract utilization tends to be in the 60 percent range when compared to
Sanitized Copy Approved for Release 2010/10/22 : CIA-RDP88GO0186R000700790018-4
 Sanitized Copy Approved for Release 2010/10/22 : CIA-RDP88GO0186R000700790018-4
the availability of contract flights. While there are a limited number of
exceptions to use of the contract carrier provided under applicable regulations,
those exceptions are designed to protect you and your employees in instances
where use of the contract carrier would inhibit the accomplishment of your
mission requirements. Outside of a few city-pairs where we freely acknowledge
limited contract service is available, we find the level of nonuse of some
concern with the appearance of a certain degree of employee abuse. To this end,
GSA and DOD have agreed on a major revision of applicable regulations to restrict
significantly the conditions under which nonuse of the contract carrier may be
justified. Proposed regulatory changes have been presented to and approved in
principle by the military services, and have been transmitted to representatives
of civil departments and agencies who participate in our Interagency Camnittees
on Travel Management and Transportation and Traffic Management. Your agency's
representative attended a joint meeting of both committees on March 27, 1985,
at which the VL9=ed es were discussed, and written cannents re ested
-by April 30, 1985. We believe this action will strengthen compliance with the
by contract air ine'program.
We are proposing to take this action not only to ensure greater contract
utilization today, but to assure the long-term stability of the city-pair
program. Simply put, if carriers do not realize the passenger traffic we
estimate on a city-pair by city-pair basis in our contracts, they will have
little incentive to continue to offer quality discount fares for official
Government travel. In the absence of contract fares, the established practice
on the part of noncontract carriers of filing matching fares also will disappear.
Consequently, the long-term effect can only be higher transportation costs for
Federal employees. Thus in an era of increasing budget cutbacks, the stakes are
especially high.
With your help, we can conceivably double the projected fiscal year 1985 savings
to $200 million, and achieve even greater savings in future year. What is
required is nothing more than a strong contract compliance effort on the part of
each Federal department and agency to ensure that its employees only are granted
permission to use noncontract carriers when absolutely necessary to meet
urgent mission requirements. We look forward to your cooperation in this
regard, and welcome any comments or suggestions you may have. Please have your
staff contact the Director of our Travel and Transportation Services Division,
Mr. Terry Angelo, at 557-1261, in this regard.
Thank you for your continuing support.
Sincerely,
DONALD C. J. MAY
Assistant Administrator
Sanitized Copy Approved for Release 2010/10/22 : CIA-RDP88GO0186R000700790018-4