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B-217913 1 (1986-05-30)

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OECISION




FILE:   3-217913


THE COMPTROLLER GENERAL
OP THU UNITEO STATES
WASHINGTON, 0.C. 20548



      DATE: May 30, 1986


MATTER OF:    Rebates from Travel Management Center
              Contractors


DIGEST:


Rebates from Travel Management Centers
redistributed to paying Federal agency may be
retained by agency for credit to its own appro-
priation and does not need to be deposited into
the Treasury as miscellaneous receipts. This
does not constitute an illegal augmentation of
appropriations in that these rebates are adjust-
ments of previous amounts disbursed and therefore
qualify as refunds under regulations permitting
such refunds to be retained by the agency.


     This decision is in response to a request from the
General Counsel of the General Services Administration (GSA)
asking whether Federal agencies whose employee travel arrange-
inents are handled by Travel Management Centers (TMC) (travel
agents operating under so-called no cost contracts with GSA)
might in the future retain rebate payments proposed to be
received from TMCs. The agency would either deposit these
payments to the credit of appropriations against which em-
ployee travel is charged or have amounts representing a por-
tion of the commission received by TMCs from third parties
whose services are used by TMCs when making employee travel
arrangenents credited against future billings.

     As explained in further detail below, payments or credits
may be credited to the appropriation against which the cost of
employee travel is charged or applied against future billings
for employee travel because they would constitute refunds
which do not have to be deposited to the general fund of the
Treasury as miscellaneous receipts.

                          BACKGROUND

     GSA currently has nearly 100 contracts with TMCs and is
considering further expansion of the program. GSA proposes to
request rebates or credits from TMCs in selected future solic-
itations. TMCs do not charge the Government directly for the
services they provide, but instead receive commissions from
transportation or lodging establishments with whom they book
reservations. Three methods are used to effect payment to
TMCs for Federal employee travel:

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