81 FR 76385 - Improving the Management and Use of Government Aircraft

OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy

Federal Register Volume 81, Issue 212 (November 2, 2016)

The Office of Federal Procurement Policy (OFPP) in the Office of Management and Budget (OMB) is proposing to revise OMB Circular A- 126 ``Improving the Management and Use of Government Aircraft'' to update policies associated with the management and use of Government aircraft, including General Services Administration (GSA) and agency roles in regulating and managing the Federal aviation programs that have evolved since the Circular was last revised in 1992. The proposed changes also address recommendations from the Interagency Committee for Aviation Policy (ICAP) to make a clearer distinction between polices that apply to the management of aircraft and policies that apply to travel on Government aircraft.

[Federal Register Volume 81, Number 212 (Wednesday, November 2, 2016)]
[Notices]
[Pages 76385-76392]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26464]


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OFFICE OF MANAGEMENT AND BUDGET

Office of Federal Procurement Policy


Improving the Management and Use of Government Aircraft

AGENCY: Office of Federal Procurement Policy, Office of Management and 
Budget

ACTION: Proposed Revision to Office of Management and Budget Circular 
No. A-126, ``Improving the Management and Use of Government Aircraft.''

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SUMMARY: The Office of Federal Procurement Policy (OFPP) in the Office 
of Management and Budget (OMB) is proposing to revise OMB Circular A-
126 ``Improving the Management and Use of Government Aircraft'' to 
update policies associated with the management and use of Government 
aircraft, including General Services Administration (GSA) and agency 
roles in regulating and managing the Federal aviation programs that 
have evolved since the Circular was last revised in 1992. The proposed 
changes also address recommendations from the Interagency Committee for 
Aviation Policy (ICAP) to make a clearer distinction between polices 
that apply to the management of aircraft and policies that apply to 
travel on Government aircraft.

DATES: Interested parties should submit comments in writing to the 
address below on or before 30 days after publication in the Federal 
Register.

ADDRESSES: Comments may be submitted online at www.regulations.gov.
    Instructions: All comments received will be posted, without change 
or redaction, to www.regulations.gov, so commenters should not include 
information that they do not wish to be posted (for example because 
they consider it personal or business confidential).

FOR FURTHER INFORMATION CONTACT: Jim Wade, OFPP, [email protected].

SUPPLEMENTARY INFORMATION: 

Overview

    Federal agencies own more than 1,200 operational aircraft to 
support a wide range of missions, including fire-fighting, law 
enforcement, research and development, and other activities. Federal 
aircraft are also used in various situations to transport certain 
executives. OMB Circular A-126 sets forth requirements to help ensure 
the appropriate agency use of Government aircraft.
    Traditionally, the Circular has focused primarily on travel policy. 
When the Circular was last updated in 1992, coverage was strengthened 
to restrict the operation of aircraft to defined official purposes, 
restrict travel on such aircraft, require special review of such travel 
by senior officials or non-Federal travelers, and codify policies for 
reimbursement. The proposed revisions to A-126 would retain these 
policies but make several refinements to address recommendations made 
by the Government Accountability Office (GAO) in a 2014 report (GAO-14-
151) recommending clarification on reporting exemptions for the 
Intelligence Community. Currently, the Circular exempts the reporting 
of classified trips, but the reporting of unclassified data is not 
explicitly addressed. To resolve this ambiguity, the proposed revisions 
to the Circular would include a clear statement that the Intelligence

[[Page 76386]]

Community must maintain information on trips by senior Federal 
officials and non-Federal travelers, but agencies included in the 
community would not be required to report the data to the General 
Services Administration (GSA). Similarly, other agencies must maintain 
information on the required use of Government aircraft, but they are 
not required to report the data to GSA.
    Other proposed revisions would clarify the requirements for 
contractors traveling on Government aircraft and expand the guidance 
for determining whether Government aircraft is the most cost-effective 
alternative for meeting travel requirements.
    Further revisions are proposed to enhance the Circular's coverage 
on aircraft management. These changes are designed to integrate a 
number of policies and practices that have been developed or refined 
since the Circular was last updated that strengthen investment and 
management practices associated with capital assets. For example, the 
Circular adds references to long-standing requirements in OMB Circular 
A-11 to prepare a business case that justifies the acquisition and 
operation of a capital asset; requires agencies to maintain an office 
dedicated to aircraft management; establishes flight program standards 
and performance indicators; and encourages the use of the Exchange/Sale 
program for replacing and disposing of aircraft. Other changes include 
broadening the definition of Government aircraft to include unmanned 
aircraft systems and the addition of definitions of Commercial Aviation 
Services (CAS), fixed costs, variable costs, performance indicator, and 
Senior Aviation Management Official (SAMO). Finally, for clarification 
and ease of use, the Circular is reorganized into separate parts for 
management, travel, and cost accounting.
    OMB requests comments on these proposals as well as on other 
aspects of the Circular.

Lesley A. Field,
Acting Administrator for Federal Procurement Policy.

To the Heads of Executive Departments and Establishments

Subject: Improving the Management and Use of Government Aircraft

    1. Purpose. This Circular is issued to minimize cost and improve 
the management, safety and efficiency of Government aviation 
activities. It prescribes policies to be followed by Executive Agencies 
in acquiring, managing, using, disposing of, and accounting for costs 
of aircraft.
    2. Supersession Information. This Circular rescinds and supersedes 
OMB Circular No. A-126, Improving the Management and Use of Government 
Aircraft, dated May 22, 1992.
    3. Authority. This Circular is issued pursuant to 41 U.S.C. 1121 
and 31 U.S.C. 1344.
    4. Overview. In general, Government-wide policy guidance for use of 
Government aircraft restricts the operation to official purposes, i.e., 
mission requirements, required-use, and other official travel; 
restricts travel on such aircraft; requires special review of such 
travel by senior officials or Non-Federal Travelers; and codifies 
policies for reimbursement. This Circular is being revised to respond 
to recommendations from the Federal aviation community that OMB's 
aviation guidance make a clearer distinction between policies that 
apply to the management of Government aircraft and policies that apply 
to travel on Government aircraft. This revision also formalizes General 
Services Administration (GSA) and agency roles in regulating and 
managing the Federal aviation programs that have evolved since the 
Circular was last revised in 1992.
    This Circular applies to all Executive Agencies and to all 
Government aircraft except for aircraft used by or in support of the 
President or Vice President.
    5. Definitions. For purposes of this Circular, the following 
definitions apply.
    a. Acquire means to procure or otherwise obtain personal property, 
including by lease or rent (FMR 102-33.20).
    b. Aircraft means any contrivance invented, used, or designed to 
navigate, or fly in, the air (49 U.S.C. 40102(a)(6)).
    c. Commercial Aviation Services (CAS) include aircraft that are 
leased, lease-purchased, rented, chartered, hired under full service 
contracts, or hired under inter-service support agreements, and related 
support services.
    d. Crew Member means a person assigned to perform duty in an 
aircraft during flight time (14 CFR part 1.1).
    e. Federal Traveler means a person who travels as a Passenger, a 
Crew Member, or a Qualified Non-Crew Member, on a Government aircraft 
and who is either (1) a civilian employee of an Executive Agency 
including invitational travelers per 5 U.S.C. 5703; (2) a member of a 
uniformed or a foreign service of the United States Government; or (3) 
a contractor working under a contract with an Executive Agency.
    f. Fixed Costs of operating aircraft are those that result from 
owning and supporting the aircraft and that do not vary according to 
aircraft usage. The specific fixed cost elements are defined in GSA's 
Aircraft Cost Accounting Guide and include, but are not limited to: 
Crew, maintenance, labor, parts, contracts, lease costs, operations 
overhead, administrative overhead, self-insurance costs, and 
depreciation.
    g. Full Coach Fare means city pairs capacity-controlled fare. In 
the absence of availability of capacity-controlled city pairs, it is a 
city pairs unrestricted coach fare. If no city pair fare is available 
for that route, full coach fare is the lowest available coach fare 
available to the general public from any source between the day that 
the travel was planned and the day the travel occurred.
    h. Government Aircraft means manned or unmanned aircraft operated 
for the exclusive use of an Executive Agency. Government aircraft 
include (1) Federal aircraft as defined in FMR 102-33.20; and (2) 
Aircraft hired as commercial aviation services (CAS).
    i. Governmental Function means an activity undertaken by a 
government, such as national defense, intelligence missions, 
firefighting, search and rescue, law enforcement (including transport 
of prisoners, detainees, and illegal aliens), aeronautical research, or 
biological or geological resource management, which is a partial 
qualification for a Public Aircraft Operation as defined in 49 U.S.C. 
40125.
    j. Mission Requirements mean activities that constitute the 
discharge of an agency's Governmental functions. Such activities 
include, but are not limited to, the transport of troops and/or 
equipment, training related to the operation of or duties on board the 
aircraft, evacuation (including medical evacuation), intelligence and 
counter-narcotics activities, search and rescue, transportation of 
prisoners, use of defense attach[eacute]-controlled aircraft, 
aeronautical research and space and science applications, and other 
such activities. For purposes of this Circular, mission requirements do 
not include official travel to give speeches, to attend conferences or 
meetings, to make routine site visits, or to attend training not 
related to the operation of the aircraft.
    k. Non-Federal Traveler means an individual who travels on a 
Government aircraft, but is not a Federal traveler. Dependents and 
other family members of Federal travelers who travel on Government 
aircraft are considered to be Non-Federal Travelers within this 
Circular.

[[Page 76387]]

    l. Official Travel means (1) travel to meet mission requirements, 
(2) required-use travel, and (3) other travel to conduct non-mission 
agency business, either departure and return from one location, or 
between locations.
    m. Passenger means a traveler who is not a Crew Member or a 
Qualified Non-Crew Member.
    n. Performance Indicator means a numerical or qualitative term or 
value for reporting organizational activities and results, generally 
with respect to achieving specific goals related to outcomes, outputs, 
efficiency, and inputs. When applied to aircraft, performance 
indicators typically measure the effectiveness and efficiency of the 
processes involved with safely delivering aircraft services. Examples 
are Operations Scheduling Effectiveness; Aircraft Availability Rates; 
Non-Availability Rates; Mission Capable and Non-mission Rates; Non-
airworthy Maintenance Rates; and Non-airworthy Supply Rates.
    o. Public Aircraft Operation means the same as the term defined in 
49 U.S.C. 40102 and 49 U.S.C. 40125.
    p. Qualified Non-Crew Member means an individual, other than a 
member of the crew, aboard an aircraft (1) operated by the armed forces 
or an intelligence agency of the United States Government; or (2) whose 
presence is required to perform, or is associated with the performance 
of, a governmental function (49 U.S.C. 40125).
    q. Required-Use means use of a Government aircraft for the travel 
of an Executive Agency officer or employee, where the use of the 
Government aircraft is required because of bona fide communications or 
security needs of the agency or exceptional scheduling requirements.
    r. Senior Aviation Management Official (SAMO) means the person in 
an Executive Agency who is the agency's primary member of the 
Interagency Committee for Aviation Policy (ICAP). This person must be 
of appropriate grade and position to represent the agency and promote 
flight safety and adherence to standards.
    s. Senior Federal Officials are individuals who are paid according 
to the Executive Schedule, including Presidential appointees who are 
confirmed by the Senate; employed in the U.S. Government's Senior 
Executive Service or an equivalent senior service; who is a civilian 
employee of the Executive Office of the President; who is appointed by 
the President to a position under section 105(a)(2)(A), (B), or (C) of 
title 3 U.S.C. or by the Vice President to a position under section 
106(a)(1)(A), (B), or (C) of title 3 U.S.C.; or a contractor working 
under a contract with an Executive Agency who is paid at a rate equal 
to or more than the minimum rate for the Senior Executive Service, and 
has senior executive responsibilities. The term Senior Federal Official 
does not mean an active duty military officer.
    t. Transportation means, for the purpose of this Circular, the act 
of moving personnel or passengers engaged in travel onboard a 
Government aircraft.
    u. Travel, for purposes of reporting Senior Federal Travel, means 
on or in an aircraft while it is in flight. The origin and the 
destination may be different or the same. An example of the origin and 
the destination being the same is when the aircraft was used for 
observation from the air, i.e., for storm evaluation.
    v. Variable costs are the costs of operating aircraft that vary 
depending on how much the aircraft are used. The specific variable cost 
elements are defined in GSA's Aircraft Cost Accounting Guide and 
include, but are not limited to: crew costs; maintenance costs, labor, 
parts and contracts; engine overhaul; aircraft refurbishment; major 
component repairs; fuel, oxidants, and lubricants; lease costs and 
flight support.
    6. Policy.
    a. Managing Government Aircraft
    i. Acquiring Government Aircraft
    1. Executive Agencies must be authorized to acquire aircraft in 
accordance with 31 U.S.C. 1343.
    2. An Executive Agency may not acquire more, larger, or more 
capable aircraft than it needs to carry out its official Government 
business.
    3. Executive Agencies must choose the most cost-effective 
alternatives for acquiring aircraft and CAS. Aircraft selection should 
be based on need, a strong business case, and life-cycle cost analyses, 
which conform to the requirements in OMB Circular A-11, Preparation, 
Submission and Execution of the Budget, and its supplement, the Capital 
Programming Guide. Where performance of work by Federal employees may 
be involved, such as for aircraft maintenance, agencies shall also 
consider any other applicable policies used to compare the cost of 
Government and contractor performance.
    ii. Operating Government Aircraft
    1. Executive Agencies that operate Government aircraft (i.e., both 
owned and hired aircraft) must:
    a. Use them only for official purposes, i.e., mission requirements, 
required-use, and other official travel.
    b. Use them in the most operationally efficient and effective 
manner to accomplish these purposes.
    c. Document all uses of such aircraft and retain that documentation 
for at least two years. At a minimum, the documentation of each use of 
Government aircraft must include:
    i. The tail number of the aircraft;
    ii. The date(s) used;
    iii. The name(s) of the crew members and qualified non-crew 
members;
    iv. The purpose(s) of the flight;
    v. The cost(s) of flights conducted on Government aircraft used for 
political activities or required-use travel as identified in section 
6.b.iii that require reimbursement. Cost(s) of flights for Senior 
Federal Officials and Non-Federal Travelers are also required for 
potential reporting to GSA;
    vi. The route(s) flown and flight time; and
    vii. The name(s) of all passengers, and an indication if any 
passenger is either a Senior Federal Official or a Non-Federal 
Traveler.
    d. Unless otherwise exempt from reporting in accordance with FMR 
102-33, provide any information requested by GSA on a routine or ad hoc 
basis on their aircraft inventory, costs, and utilization (flight 
hours).
    2. Executive Agencies that only hire aircraft occasionally for 
specific flights, must either:
    a. Establish an aviation program that complies with the 
requirements in paragraph 3 of this section (i.e., a ``policy-compliant 
aviation program''), or
    b. Hire those aircraft through an agency with a policy-compliant 
aviation program to assure that safety and other critical aviation 
program requirements are satisfied.
    3. Executive Agencies or their components that own and/or operate 
aircraft, except agencies that only hire aircraft occasionally for 
specific flights, must:
    a. Designate a Senior Aviation Management Official (SAMO) to serve 
as the primary member of the GSA Interagency Committee for Aviation 
Policy (ICAP) and provide an alternate for the primary member.
    b. Maintain an office to carry out the agency's aircraft management 
responsibilities.
    c. Periodically review the continuing need for each of their 
aircraft and the cost-effectiveness of their aircraft operations as 
directed by OMB Circular A-11 as well as other applicable policies used 
to compare the cost of Government and contractor performance.
    d. Develop performance indicators that measure the impact on 
mission

[[Page 76388]]

accomplishment contributed by the aviation program and provide a tool 
for measuring the impact of future aviation program investments. Such 
information will be utilized in supporting budget requests and periodic 
agency reviews of the effectiveness of the aviation program's 
performance.
    e. Comply with the internal control requirements of OMB Circular A-
123 and assure that the appropriate internal controls for aviation 
management are included in the agency's Management Control Plan. Any 
material weaknesses in aviation programs are to be reported in the 
annual internal control reports to the President and the Congress.
    f. Establish and enforce agency-specific flight program standards 
that include, but are not limited to, the following topics:

i. Management/administration
ii. Acquisition and disposal
iii. Operations
iv. Maintenance
v. Training
vi. Safety
    g. Ensure that their flight program standards comply with all 
statutes required to qualify for Public Aircraft Operations status 
including 49 U.S.C. 40102(a)(41) and 49 U.S.C. 40125 and regulations 
that apply to Federal aviation activities, including GSA regulations 
and applicable Federal Aviation Administration (FAA) regulations. 
Also--
    i. When using a Government aircraft to transport a Passenger or to 
transport Passengers or property for compensation or hire, the activity 
would not qualify as a Public Aircraft Operation, and the Executive 
Agency flight program standards must comply with the applicable FAA 
regulations for civil aircraft;
    ii. When using Government aircraft to perform a Governmental 
Function, in accordance with 49 U.S.C. 40125, the Executive Agency 
flight program need only comply with agency-specific safety standards 
and with the applicable FAA regulations for all aircraft operating 
within the National Airspace System and not the safety standards and 
FAA regulations that apply only to civil aircraft (reference Pub.L. 85-
726, Federal Aviation Act of 1958).
    h. Use automated aircraft management information systems that 
comply with data standards and reporting requirements prescribed by 
GSA, as well as with the agency's internal information requirements, 
to:
    i. Accumulate costs into the standard aircraft program cost 
elements prescribed in GSA regulations. The uses of these cost elements 
for various purposes are discussed in section 6.c Accounting for 
Aircraft Costs.
    ii. Unless otherwise exempt from reporting in accordance with FMR 
102-33, accumulate and report to GSA information on their Government 
aircraft inventory, costs, and utilization according to GSA's guidance.
    iii. Accumulate data to support aviation performance indicators 
that measure the effectiveness of their operations, maintenance and 
logistics programs and the impact of the aviation program on mission 
performance.
    i. Develop agency specific fleet management and modernization plans 
to optimize the use of Government aircraft through:
    i. Sharing common aircraft, transferring, or disposing of 
underutilized aircraft;
    ii. Reducing excessive aircraft operations and maintenance costs; 
and
    iii. Disposing of aircraft that are no longer cost effective or no 
longer meet agency needs and acquiring replacement aircraft.
    iii. Providing Government Aircraft Services to Other Activities
    1. In general, agencies that own or operate aircraft are authorized 
in statute to use those aircraft to serve specific missions and/or 
agency components and are funded in appropriations acts to provide 
those services.
    2. In a few cases, one agency may be authorized to provide aviation 
services to another agency without requiring reimbursement for those 
services, e.g., the FAA is authorized to provide aviation support to 
the National Transportation Safety Board.
    3. In most cases, however, servicing agencies that provide aviation 
services to requesting agencies under the Economy Act (31 U.S. Code 
1535) are required to recover the actual costs from those entities 
receiving the service. This is typically handled as an Interagency 
Acquisition under the Economy Act.
    iv. Replacing and Disposing of Government Aircraft
    Agencies that want to replace aircraft are encouraged to use the 
Exchange/Sale Authority to do so. Under this authority, agencies are 
permitted to exchange or sell aircraft or aircraft parts that need to 
be replaced and apply the Exchange allowance or the Sale proceeds to 
the cost of the replacement aircraft or aircraft parts. Agencies that 
determine that their aircraft or aircraft parts are excess property and 
do not need replacement property may dispose of the aircraft or 
aircraft parts via donation, transfer, or sale. Guidance for using the 
Exchange/Sale Authority to replace aircraft or aircraft parts or for 
disposing of excess property is provided in regulations issued by the 
GSA.
    b. Traveling on Government Aircraft
    i. Who May Travel on Government Aircraft
    Federal travelers who, for purposes of this Circular, include 
contractors traveling on official agency business, invitational 
travelers, Non-Federal Travelers and any other passengers, crewmembers, 
and qualified non-crewmembers may travel on Government aircraft, but 
only if they have authorization from an Executive Agency to do so.
    ii. Approving Travel on Government Aircraft
    1. Who may approve travel on Government Aircraft. All travel on 
Government aircraft must be authorized by the agency sponsoring the 
travel in accordance with its travel policies and this Circular and, 
when applicable, documented on an official travel authorization. Where 
possible, such travel must be approved by at least one organizational 
level above the person(s) traveling (i.e., passengers, crewmembers, or 
qualified non-crewmembers) in advance and in writing. If review by a 
higher organizational level is not possible, or not applicable as in 
the case of non-Federal or invitational travelers, another appropriate 
approval is required. In an emergency situation, prior verbal approval 
with an after-the-fact written authorization by the agency's designated 
travel approving official is permitted.
    2. Special approval requirements for travel to meet Mission 
Requirements. Each agency may establish its own approval requirements 
for travel to meet mission requirements.
    3. Special approval requirements for required-use travel.
    a. Use of Government aircraft may be required because of bona fide 
communications needs (e.g., 24-hour secure communications are 
required), security reasons (e.g., circumstances that present a clear 
and present danger to the traveler), or exceptional scheduling 
requirements (e.g., a national emergency or other compelling 
operational considerations). This requirement may apply to travel for 
official, personal, or political purposes.
    b. Required-use of Government aircraft for travel (i.e., required-
use travel) must be approved in advance and in writing by one of the 
following:
    i. The President may determine that all travel, or travel in 
specified categories, by an agency head or other Federal official 
satisfies the criteria to qualify as required-use travel, or
    ii. The agency head may determine in writing that all travel, or 
travel in

[[Page 76389]]

specified categories, by an officer or employee within the agency 
satisfies the criteria to qualify as required-use travel. This 
determination must also conform to written standards established by the 
agency head.
    iii. If neither of the two preceding determinations applies, a 
Federal officer or employee must obtain written approval for all 
required-use travel on a trip-by-trip basis from the agency's senior 
legal official or his/her principal deputy. In special emergency 
situations, an after-the-fact written approval by an agency is 
permitted, but in either case, the approval must certify that the 
travel satisfies the criteria to qualify as required-use travel.
    4. Special approval requirements for other official travel. An 
agency may approve other official travel on a Government aircraft under 
one or more of the following circumstances:
    a. Sufficient capacity exists on a Government aircraft that will 
meet the traveler's flight requirements (i.e., space-available). 
Agencies authorizing space available justification must ensure--
    i. The aircraft is already scheduled for use for an official 
purpose;
    ii. Such space-available use does not require a larger aircraft 
than needed for the official purpose;
    iii. Such space-available use results only in minor additional cost 
to the Government; and either
    iv. The Federal traveler or the dependent of a Federal traveler is 
stationed by the Government in a remote location that is not accessible 
to scheduled commercial airline service; or
    v. The traveler is authorized to travel space-available under 10 
U.S.C. 2648 Persons and supplies: Sea, land, and air transportation.
    b. Use of a Government aircraft is the most cost-effective 
alternative that will meet the travel requirements. To ensure that a 
Government aircraft is the most cost-effective alternative for travel, 
the traveler's designated travel-approving official must--
    i. Compare the cost of all reasonable travel alternatives, 
including:
    1. The cost of the city-pair fare for scheduled commercial airline 
service or the cost of the lowest available full coach fare, if a city-
pair fare is not available to the traveler.
    2. The cost of using Government aircraft, whether owned or hired as 
a CAS.
    3. Travel by other available modes of transportation that are 
capable of meeting the travel requirements.
    ii. Consider the cost of non-productive or lost-work time while in 
travel status and other relevant costs (e.g., landing fees, tolls, 
parking, etc.) when comparing the costs of using Government aircraft in 
lieu of scheduled commercial airline service and other available modes 
of transportation. NOTE: The cost of non-productive or lost-work time 
must be computed based on gross actual hourly costs to the Government. 
These hourly costs should include benefits, but may not include the use 
of multipliers based on salary, position, or any other factor.
    iii. Approve the most cost-effective alternative that meets the 
agency's needs.
    c. Scheduled commercial airline service is less expensive than 
Government aircraft, but no such service is reasonably available (i.e., 
able to meet the traveler's departure and/or arrival requirements 
within a 24 hour period, unless the traveler demonstrates that 
extraordinary circumstances require a shorter period) to effectively 
fulfill the agency requirement.
    5. Special approval requirements for Senior Federal Officials and 
Non-Federal Travelers. Use of Government aircraft for all official 
travel by Senior Federal Officials and Non-Federal Travelers (including 
members of families of such Senior Federal Officials) must be in 
conformance with an agency review and approval system that has been 
approved by OMB, or authorized in advance and in writing, on a trip-by-
trip basis, by the senior legal official of the agency sponsoring the 
travel or his/her principal deputy, except for required-use travel 
authorized under paragraph 6.b.ii.3 Special Approval Requirements For 
Required-Use Travel. This special approval requirement also applies to 
Senior Federal Officials traveling space-available or as crewmembers or 
qualified non-crewmembers on a flight (i.e., being transported from 
point to point). In an emergency situation, neither prior written nor 
prior verbal approval is required.
    iii. Reimbursement for Use of Government Aircraft
    1. For travel other than required-use or space-available travel:
    a. Any incidental private activities (personal or political) of an 
employee undertaken on an employee's own time while on official travel 
must not result in any increase in the actual costs to the Government 
of operating the aircraft.
    b. The Government must be reimbursed the appropriate share of the 
full coach fare for any portion of the time on the trip spent on 
political activities (except as provided in paragraph 6.b.iii.4. For 
Any Political Travel).
    2. For required-use travel. The Government must be reimbursed as 
follows (except as may otherwise be required in paragraph 6.b.iii.4. 
For Any Political Travel) for required-use travel;
    a. For a wholly personal or political trip, the full coach fare for 
the trip;
    b. For an official trip during which the employee engages in 
political activities, the appropriate share of the full coach fare for 
the entire trip;
    c. For an official trip during which the employee flies to one or 
more locations for personal reasons, the excess of the full coach fare 
of all flights taken by the employee on the trip over the full coach 
fare of the flights that would have been taken by the employee had 
there been no personal activities on the trip.
    3. For space-available travel. For space-available travel other 
than for the conduct of agency business, whether on mission or other 
flights, the Government must be reimbursed at the full coach fare 
except (1) as authorized under 10 U.S.C. 2648 and regulations 
implementing the statute; and (2) by civilian personnel and their 
dependents in remote locations (i.e., locations not reasonably 
accessible to regularly-scheduled commercial airline service). No 
reimbursement is required for space-available travel for the conduct of 
agency business.
    4. For any political travel. Reimbursement must be made in the 
amount required by law or regulation (e.g., 11 CFR 106.3) if greater 
than the amount otherwise required by the foregoing reimbursement 
rules.
    iv. Documenting Travel on Government Aircraft.
    In addition to the usual information provided on an official travel 
authorization (e.g., the purpose of the travel, name and title of the 
approving official, date approved, funding source, etc.), 
authorizations for travel on Government aircraft should also document 
the justification for such travel as well as any special approvals 
required.
    1. Travel to meet mission requirements must be noted as such and 
identify the mission(s).
    2. Required-use travel must be noted as such, the criteria for its 
use cited, and any required approvals documented.
    3. Other official travel must be noted as such and the 
justification for using Government aircraft documented, i.e.:
    a. Space-available--Space is available on a Government aircraft 
that meets the traveler's flight requirements.
    b. Cost--Use of Government aircraft is the most cost-effective 
alternative that will meet the travel requirements. If this 
justification is cited, the estimated cost

[[Page 76390]]

of the travel alternatives considered must be provided.
    c. Lack of reasonable alternatives--For example, scheduled 
commercial airline service may be less expensive, but not reasonably 
available to meet the traveler's schedule requirements.
    4. All travel authorizations for the use of Government aircraft by 
Senior Federal Officials and Non-Federal Travelers for mission 
requirements and other official travel must document all special 
approvals required.
    v. Reporting Travel on Government Aircraft
    1. Agencies that use Government aircraft for travel must report 
semi-annually to GSA each use of such aircraft for non-mission travel 
by Senior Federal Officials and any Non-Federal Travelers (except for 
travel authorized under 10 U.S.C. 2648 and regulations implementing 
that statute). This includes travel as a passenger, crewmember, or 
qualified non-crewmember.
    2. Agencies that are included in the Intelligence Community, as 
identified in the National Security Act, 50 U.S.C. 3003, must maintain 
information on trips by Senior Federal Officials and Non-Federal 
Travelers, but the agencies are not required to report this information 
to GSA. The information must be made available to Congress or any other 
organization with the appropriate security clearance and oversight 
responsibility upon request.
    3. Agencies must maintain data on required-use of Government 
aircraft, but are not required to submit this information to GSA. The 
information must be made available to Congress or any other 
organization with oversight responsibility upon request.
    4. GSA will provide policies and reporting criteria to agencies 
that authorize travel on Government aircraft and administer the annual 
submission of a Senior Federal Travel Report to OMB.
    c. Accounting for Aircraft Costs
    The costs associated with agency aircraft programs must be 
accumulated to: (1) Justify acquisitions needed to support the agency's 
aviation program; (2) justify the use of Government aircraft in lieu of 
commercially available aircraft, and the use of one Government aircraft 
in lieu of another; (3) recover the costs of operating Government 
aircraft when appropriate; and (4) determine the cost effectiveness of 
various aspects of agency aircraft programs. To accomplish these 
purposes, agencies must accumulate their aircraft program costs in 
accordance with GSA's Aircraft Cost Accounting Guide. The remainder of 
this section presents guidance for accomplishing each of these 
purposes.
    i. Justifying Aviation Program Acquisitions
    When the Circular was revised in 1992, the principal OMB guidance 
affecting agencies' aviation program acquisition choices was OMB 
Circular A-76, ``Performance of Commercial Activities.'' Since that 
time, OMB has developed more comprehensive guidance for agency use in 
planning and justifying investments in capital assets, including 
capital assets needed to support aviation programs. This guidance is 
contained in OMB Circular A-11 and its supplement, the Capital 
Programming Guide. Taken together, these two documents provide the 
broad principles that agencies should use to establish capital planning 
processes for their aviation programs. It is critical that agencies be 
able to collect accurate costs for the acquisition and operation of all 
assets that comprise their aviation programs, including non-aircraft 
assets, where appropriate. These costs will be aggregated and presented 
for budget justification purposes in formats that meet the overall 
requirements of OMB Circular A-11 and are acceptable to the agencies' 
OMB Resource Management Offices (RMOs). The Capital Programming Guide 
requires agencies to consider OMB Circular A-76, as appropriate, when 
evaluating investment alternatives; e.g., determining whether any 
aviation program activities qualify as inherently Governmental 
functions and justifying in-house operation of Government aircraft 
versus procurement of CAS.
    ii. Justifying Use of Government Aircraft.
    Agencies that use Government aircraft to support recurring travel 
between locations are encouraged to develop standard trip cost 
justification schedules, and must ensure that the costs used for such 
schedules are kept current. These schedules should summarize and 
compare the projected costs of using one or more specific types of 
agency aircraft (both owned and hired, as applicable) for travel 
between selected locations to the costs of using commercial airline 
service between those locations. Comparative costs for varying 
passenger loads should also be shown. Agencies that choose to use this 
approach should be able to see the minimum number of official travelers 
needed to justify the use of a particular aircraft or aircraft type for 
a trip between locations on the schedule. Agencies that are not able to 
use such schedules are required to do a cost justification on a case by 
case basis.
    To make the cost comparisons necessary to justify the use of a 
Government aircraft, the agency must compare the actual cost of using a 
Government aircraft to the cost of using a commercial airline service. 
The actual cost of using a Government aircraft is either: (a) The 
amount that the agency will be charged by the organization (e.g., 
another agency or a CAS provider) that provides the aircraft, (b) the 
variable cost of using the aircraft, if the agency operates its own 
aircraft; or (c) the variable cost of using the aircraft as reported to 
it by the owning agency, if the owning agency is not required to charge 
for the use of its aircraft.
    Agencies should develop a variable cost rate for each aircraft or 
aircraft type (i.e., make and model) in their inventories before the 
beginning of each fiscal year. These rates should be developed as 
follows:
    1. Accumulate or allocate to the aircraft or aircraft type all 
historical costs (for the previous 12 months, or longer periods, as 
appropriate) grouped under the variable cost category defined in GSA 
regulations. These costs should be obtained from the agency's 
accounting system.
    2. Reduce or eliminate short-term data volatilities, as needed, by 
factoring in or out seasonal, cyclic, and infrequent variable cost 
components, such as engine overhauls and accident repairs, and 
allocating those costs over time as appropriate.
    3. Adjust the historical variable costs from Step 1 for inflation 
and for any known upcoming cost changes to project the new variable 
cost total. The inflation and escalation factors used must conform to 
OMB Circulars A-11 and A-76, as appropriate.
    4. Divide the total variable costs of the aircraft or aircraft type 
by the flying hours corresponding to the historical data timeframe for 
the aircraft or aircraft type to compute the projected variable cost or 
usage rate (per flying hour).
    To compute the variable cost of using an agency's own aircraft for 
a proposed trip, multiply the variable cost rate computed in Step 4 
(above) by the estimated number of flying hours for the trip. The 
variable cost of using a Government aircraft for a trip should include, 
as appropriate, all time required to position or reposition the 
aircraft prior to and after the trip, if no follow-on trip is 
scheduled. If a follow-on trip requires any repositioning time, it 
should be charged with that time. If one aircraft mission (i.e., a 
series of flights scheduled sequentially) supports multiple trips, the 
use of the aircraft for the total mission may be justified by comparing 
the actual cost of the entire

[[Page 76391]]

mission to the commercial airline costs for all the component trips.
    The cost of using commercial airline services for the purpose of 
justifying the use of Government aircraft must:
    1. Be the current Government contract fare or price or the lowest 
fare or price known to be available for the trip(s) in question;
    2. include, as appropriate, any differences in the costs of any 
additional ground or air travel, per diem and miscellaneous travel 
(e.g., taxis, parking, etc.), and lost employees' work time (computed 
at gross hourly costs to the Government, including benefits) between 
the two options; and
    3. only include costs associated with passengers on official 
business. Costs associated with passengers traveling on a space-
available basis may not be used in the cost comparison.
    iii. Recovering Cost of Operation
    Under the Economy Act of 1932, as amended, (31 U.S.C. 1535), and 
various acts appropriating funds or establishing working funds to 
operate aircraft, agencies are required to recover the costs of 
operating their aircraft for use by other agencies, other governments 
(e.g., state, local, or foreign), or non-official travelers. Depending 
on the statutory authorities under which its aircraft were obtained or 
are operated, an agency may use either of two methods for establishing 
the rates charged for using its aircraft: (1) The full cost recovery 
rate or (2), the variable cost recovery rate.
    The full cost recovery rate for an aircraft is the sum of the 
variable and fixed cost rates for that aircraft. The computation of the 
variable cost rate for an aircraft or aircraft type is described under 
paragraph 6.c.ii. Justifying Use of Government Aircraft. The fixed cost 
rate for an aircraft or aircraft type is computed as follows:
    1. Accumulate from the agency's accounting system (for the previous 
12 months or longer, as appropriate) the fixed costs listed in GSA 
Regulations that are directly attributable to the aircraft or aircraft 
type (e.g., crew costs-fixed, maintenance costs-fixed, and aircraft 
lease-fixed).
    2. Adjust the historical fixed costs from Step 1 for inflation and 
for any known upcoming cost changes, including contract price 
adjustments, to project the new fixed cost total. The inflation and 
escalation factors used must conform to OMB Circulars A-11 and A-76, as 
appropriate.
    3. Add to the adjusted historical fixed costs amounts representing 
self-insurance costs and the annual depreciation or replacement costs, 
as described in GSA regulations.
    4. Allocate operations and administrative overhead costs to the 
aircraft or aircraft type based on the percentage of total aircraft 
program flying hours attributable to that aircraft or aircraft type.
    5. Compute a fixed cost recovery rate for the aircraft or aircraft 
type by dividing the sum of the projected directly attributable fixed 
costs (from Step 3) and the allocated fixed costs (from Step 4) by the 
annual flying hours projected for the aircraft or aircraft type.
    6. To compute the full cost recovery rate of using a Government 
aircraft for a trip, add the variable cost rate for the aircraft or 
aircraft type to the corresponding fixed cost rate (computed in Step 5 
above) and multiply the result by the estimated number of flying hours 
for the trip using the proposed aircraft.
    The variable cost recovery rate for an aircraft or aircraft type is 
usually the same as the variable cost or usage rate described under 
paragraph 6.c.ii. Justifying Use of Government Aircraft. In the event 
that the requesting agency covers some of the costs included in the 
variable cost recovery rate, e.g., fuel or crew costs, such costs are 
not incurred by the servicing agency and should be subtracted from cost 
recovery rate for that flight. If an agency decides to base the charge 
for using its aircraft solely on the variable cost recovery rate, it 
must recover the fixed costs of those aircraft from the appropriation 
which supports the mission for which the procurement of the aircraft 
was justified. In such cases, the fixed cost recovery rate may be 
expressed on an annual, monthly or flying hour basis.
    iv. Determining Aircraft Program Cost Effectiveness
    Although cost effectiveness measures are not the only performance 
indicators of the effectiveness of an agency's aircraft program, they 
can be very useful in identifying opportunities to reduce aircraft 
operational costs. These opportunities might include changing 
maintenance practices, purchasing fuel at lower costs, and the 
replacement of old, inefficient aircraft with aircraft that are more 
fuel efficient and have lower operations and maintenance costs.
    The most common measures used to evaluate the cost effectiveness of 
various aspects of an aircraft program are expressed as the cost per 
flying hour or per passenger mile for certain types of aircraft costs. 
These measures may be developed using the Standard Aircraft Program 
Cost Elements and include, but are not limited to: Maintenance costs/
flying hour, fuel and other fluids cost/flying hour, accident repair 
costs/flying hour (or per aircraft), and variable cost/passenger mile.
    In coordination with the Interagency Committee for Aviation Policy 
(ICAP), GSA should assist in the development of aviation performance 
indicators that agencies can use, within the context of their various 
missions and unique operating environments, to assess the cost-
effective management of their aircraft.
    7. Agency Responsibilities.
    a. The head of each Executive Agency must issue the appropriate 
internal agency directives to implement this Circular within 180 days 
of its publication. These internal agency directives must include all 
policies contained in this Circular that apply to the agency's use of 
Government aircraft, and may contain additional policies unique to the 
agency.
    i. Agencies that own or hire aircraft must assure that their 
internal directives comply with section 6.a. of this Circular.
    ii. Agencies that use Government aircraft to support their travel 
requirements must assure that their internal travel policies are 
consistent with section 6.b. of this Circular.
    b. The Secretaries of Defense and the uniformed services, the 
Secretary of State and GSA must incorporate the applicable policies of 
this Circular into the travel regulations that they publish for 
uniformed service, foreign service, and civilian employees, 
respectively. The necessary changes to these regulations should be 
issued no later than 180 days from the date of this Circular.
    c. GSA shall maintain an office to implement Government-wide 
responsibilities for Government aviation program management that 
include, but are not limited to, the following:
    i. Organizing and maintaining an interagency committee composed of 
Federal agency senior aviation management officials who advise the 
Administrator of General Services on Government aircraft policy and 
management.
    ii. Coordinating the development of effectiveness measures, policy 
recommendations, and guidance for the procurement, operation, safety, 
and disposal of Government aircraft consistent with section 6.a. of 
this Circular.
    iii. Providing policy recommendations and guidance on the use of 
Government aircraft to conduct official business.
    iv. Operating a Government-wide information system to collect, 
analyze, and report agency information on Government aircraft.
    v. Developing and maintaining common, generic aircraft information

[[Page 76392]]

system standards (i.e., data definitions and software specifications) 
for agencies' use in developing their own internal aircraft information 
systems and for routine and ad hoc reporting of their information to 
GSA. These data definitions will also include aircraft program cost 
element definitions and standards to account for aircraft costs 
consistent with section 6.c. of this Circular.
    vi. Providing to OMB and, upon request to Congress and other 
official requestors, analytical reports of the information collected 
and maintained in the Government-wide aircraft management information 
system as well as information collected from agencies on an ad hoc 
basis. Such reports should include, but not be limited to:
    1. Aviation related reports that may be required by OMB and other 
Executive guidance.
    2. An annual aviation data set that includes an inventory of 
agency-owned aircraft and the costs and flight hours associated with 
each agency's flight operations performed by both agency-owned and CAS 
aircraft.
    3. Periodic reports on the utilization of the Exchange/Sale 
Authority for aircraft and aircraft parts.
    vii. Upon a Federal agency's request, conduct external audits, 
surveys or reviews of Federal agency aviation programs to identify 
weaknesses and/or to recommend improvements as needed to increase the 
efficiency and the effectiveness, as well as to improve the safety 
culture of Federal agency aviation programs.
    viii. Reviewing agency aircraft policies for compliance with 
Federal regulation and guidance as needed.
    ix. Developing, coordinating and providing training, through 
workshops and other means, to agency aviation professionals on aviation 
safety, fleet modernization, and any other subjects approved by the 
ICAP.
    8. Reports to OMB. GSA will submit a Senior Federal Travel Report 
to OMB annually. GSA will also submit the following items to OMB upon 
request:
    a. Aviation related reports.
    b. Annual aviation data sets.
    c. Exchange/Sale authority utilization reports.
    9. Related Guidance. OMB Circular A-11 and its supplement the 
Capital Programming Guide.
    10. Effective Date. This Circular is effective upon publication.
    11. Information Contact. All inquiries should be addressed to the 
Office of Federal Procurement Policy, Office of Management and Budget, 
telephone number (202) 395-1158.

[FR Doc. 2016-26464 Filed 11-1-16; 8:45 am]
 BILLING CODE P