A proposed rule was issued to revise the travel cost principle, FAR 31.205-46, to clarify the limitations on allowable contractor airfare costs. 72 Fed. Reg. 72325 (Dec. 20, 2007). FAR 31.205-46(b) currently limits allowable contractor airfare costs to “the lowest customary standard, coach, or equivalent airfare offered during normal business hours,” with some exceptions. This limitation has been subject to inconsistent interpretations, with some interpreting it to mean lowest coach fare available to the contractor and others interpreting it to mean lowest coach fare available to the general public. The proposed rule would clarify that the limitation means lowest coach fare available to the contractor. Comments to the proposed rule must be submitted by February 19, 2008.
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