Federal Manager's Daily Report 
Monday, September 20, 2004
 
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In Today's Issue:
1. GSA Announces New City Pair Airline Contracts 
2. Card Restriction Struck Down
3. NTEU Lauds House Veto of Private Tax Collection 
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1. GSA Announces New City Pair Airline Contracts 
The General Services Administration has announced new city 
pair contracts for discounted air travel on 4,345 routes, 
which it expects to save billions of dollars in fiscal 2005. 
 
It said it negotiated with 13 U.S. carriers for official 
government travel on 3,616 domestic and 729 international 
routes -- favoring non-stop service, which was awarded in 
1,674 markets, nearly everywhere it was offered. 
 
GSA's federal supply service awards contracts to airlines 
based on average flight time, price, type of service, 
flight distribution, and number of flights. It said dual 
fares will remain available in more than 2,300 markets 
and that unrestricted contract fares will be available 
in all markets. 
 
It said fixed-price, unrestricted fares may help agencies 
plan their travel budgets throughout the one-year contract 
beginning October 1, and noted that federal employees 
generally would pay less by booking cheaper capacity 
controlled fares early.
 
The city pair program offers last seat availability, fully 
refundable tickets and no charge for cancellations of 
schedule changes.
 
2. Card Restriction Struck Down
During preliminary voting on its version of the 2005 
Transportation-Treasury appropriations bill, the House 
struck out for technical reasons language that would have 
required agencies to evaluate the creditworthiness of an 
individual before issuing him or her a government purchase 
card or travel charge card.
 
The language had been put in the measure as a reaction to a 
string of reports from agency inspectors general and the 
Government Accountability Office of abuses of the cards, 
including purchases of personal and other inappropriate 
goods and services. It would have barred issuance of those 
cards to those who either lack a credit history or are found 
to have an unsatisfactory one.
 
The language also would have required agencies to set 
policies for disciplinary actions to be take for improper, 
fraudulent or abusive use of the cards.
 
It was struck as impermissible setting of new policy in a 
spending bill.
 
3. NTEU Lauds House Veto of Private Tax Collection 
An amendment to the Transportation, Treasury appropriations 
bill for 2005 prohibits the Internal Revenue Service from 
contracting out tax collection. 
 
Rep. Shelley Moore Capito, R-W.Va., sponsored the amendment 
and said the inherent potential for harm in the use of 
private debt collectors "should be cause for alarm." 
 
Debate on the amendment demonstrated "strong bipartisan 
support," for blocking IRS from using funds to contract 
with private debt collectors, according to the National 
Treasury Employees Union. 
 
It cited an audit from the Treasury Inspector General for 
Tax Administration that found that the "lack of oversight 
of contractors resulted in serious security vulnerabilities," 
and that "contractors blatantly circumvented IRS policies 
and procedures even when security personnel identified 
inappropriate practices." 
 
The proposal would have paid debt collectors a 25 percent 
bounty for money collected, something NTEU said does not 
make fiscal sense given IRS estimates that "a modest 
increase in enforcement resources" could yield $9 billion 
in collected debt.
 
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