Memo to federal employees: Stay at your desks.

In the wake of the firestorm over GSA’s $822,000 Las Vegas conference, the Office of Management and Budget ordered a 30% cut in employee travel and new restrictions on conference spending.

While OMB is encouraging government and contractors to talk to each other, consultant Larry Allen of Allen Federal Partners says, “It will apparently happen primarily via your own travel to your customer, a Skype session or regular phone call. Just please don’t make it a ‘conference call.’”

The reduction in travel could also mean less oversight of contractors, since some site visits would likely have to be curtailed.

In a memo, Acting OMB Director Jeffrey Zients said the travel cutbacks will take effect in 2013 and continue for four years. Agency deputy secretaries must review all planned conference spending above $100,000. No conference can cost more than $500,000 without approval of the agency head, and agencies will be required to file annual public reports on their conference spending.

“These are all common sense steps that will save taxpayer dollars by eliminating waste and improving government operations — all while maintaining the core government functions that the American people count on,” Zients wrote on OMB’s blog.

But consultant Allen said, “It is no myth, unfortunately, that when the ability of government and industry to interact in common sense ways is restricted, the cost of government does go up.”

Both the House and Senate have approved restrictions on travel and conference spending.

The 2010 Las Vegas conference sponsored by GSA’s Public Buildings Service led to the resignation of GSA Administrator Martha Johnson and the firing of two top executives. Ten career employees were placed on leave and GSA’s inspector general has referred his findings to the Justice Department for possible criminal prosecution.