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House Vote Supports Small Travel Agencies

The House voted June 30 to kill the e-Travel program, which critics say is a bundled contract that shuts out small travel agencies.

Over the objections of Republican leaders, the House passed Rep. Nydia Velazquez’s amendment to the Transportation-Treasury Appropriations bill that would prohibit the use of funds for the program, one of President Bush’s e-government initiatives. The vote was 233- 192.

The House approved the Transportation-Treasury Appropriations bill, H.R. 3058, and sent it on to the Senate. It is uncertain whether Velazquez’s amendment will become law, since the administration opposes it.

GSA implemented the e-Travel program last year over congressional objections, saying it would cut the government’s travel management costs by as much as 50% by having agencies hire one of three large vendors.

“This means that no local or federal office can use their neighborhood travel agency, even if they already have for years,” Velazquez (D-NY) told the House. “The results of GSA’s actions are massive losses which industry estimates project costing small travel agencies at least $100 million in contracting opportunities.”

The Society of Government Travel Professionals, made up of travel agencies and federal travel managers, supported the amendment.

Rep. Joe Knollenberg (R-MI), chairman of the Transportation-Treasury appropriations subcommittee, said the amendment would “shut down the GSA e-travel program.”

Last year a conference report adopted by both houses of Congress urged GSA “to preserve that portion of the Federal travel agent business that is currently served by small businesses and local entrepreneurs.’’ The language was not mandatory, but Velazquez said the agency ignored Congress’s intent when it directed all agencies to use the e-Travel program.

In November 2003 GSA awarded e-Travel contracts to EDS, CW Government Travel and Northrop Grumman Mission Systems. After testing the contractors’ online systems, GSA declared the program operational in May 2004. The three companies compete for each agency’s business in a deal worth up to $450 million over 10 years.

GSA’s Federal Travel Regulation permits the prime contractors to subcontract with small travel agencies, but the Society of Government Travel Professionals said that would cost agencies more than if they dealt directly with the primes.


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