Government Aviation Administration and Coordination

GENERAL SERVICES ADMINISTRATION

41 CFR Part 101-37

[FPMR Amendment G-109]

RIN 3090-AF43

Government Aviation Administration and Coordination

AGENCY: Federal Supply Service, GSA.

ACTION: Final rule.

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SUMMARY: This regulation updates policies and procedures concerning the

documentation, approval, and use of Government aircraft. Specifically,

the rule places definitions in a single subpart for ease of reference,

reconciles the standard aircraft program cost elements with those

contained in the revised Office of Management and Budget (OMB) Circular

A-126 (May 22, 1992), updates subparts on cost recovery methods and

aviation program cost effectiveness, and clarifies agency Federal

Aviation Management Information System (FAMIS) reporting requirements.

This action is necessary for compliance with the provisions of OMB

Circular A-126. Implementation of this rule will minimize the cost and

improve the management and use of Government aviation resources.

EFFECTIVE DATE: January 18, 1995.

FOR FURTHER INFORMATION CONTACT: Larry Godwin, Aircraft Management

Division (FBA), Federal Supply Service, General Services

Administration, Washington, DC 20406 (703-305-6399).

SUPPLEMENTARY INFORMATION: The General Services Administration (GSA)

has determined that this rule is not a significant rule for the

purposes of Executive Order 12866. The OMB Circular A-126 requires the

Administrator of GSA to establish a single coordinating office for

aircraft management to improve the management of Government-owned and

operated aircraft. The responsibilities of this Office include: (1)

Coordinating the development of effectiveness measures and standards,

policy, recommendation, and guidance for the procurement, operation,

safety, and disposal of civilian agency aircraft; (2) operating a

Government-wide aircraft management information system; (3) identifying

and advising agencies and OMB of opportunities to share, transfer, or

dispose of underutilized aircraft; to reduce excessive aircraft

operations and maintenance costs; and to replace obsolete aircraft; (4)

providing technical assistance to agencies in establishing automated

aircraft information and cost accounting systems and in conducting cost

analysis, (5) developing generic aircraft information system standards

and software; (6) reviewing proposed agency internal aircraft policies

for compliance with OMB guidance and notifying OMB of any

discrepancies; and (7) conducting an annual study of the variable and

fixed costs of operating the different categories of Government

aircraft and disseminating the results for use in making the cost

comparisons and reporting the trip costs. [[Page 3548]]

Regulatory Flexibility Act

This final rule is not required to be published in the Federal

Register for notice and comment. Therefore, the Regulatory Flexibility

Act does not apply.

List of Subjects in 41 CFR Part 101-37

Aircraft, Air transportation, Aviation, Government property

management.

For the reasons set out in the preamble, 41 CFR Part 101-37 is

amended as follows:

PART 101-37--GOVERNMENT AVIATION ADMINISTRATION AND COORDINATION

1. The authority citation for Part 101-37 continues to read as

follows:

Authority: 31 U.S.C. 1344; Sec. 205(c), 63 Stat. 390; (40 U.S.C.

486(c)).

Subpart 101-37.1--Definitions

2. Subpart 101-37.1 is revised to read as follows:

Sec. 101-37.100 Definitions.

In Part 101-37, the following definitions apply:

Acquisition date means the date the agency acquired the asset.

Acquisition value means the value initially recorded on agency

property records and/or accounting records at the time of acquisition.

If the aircraft is acquired through an interagency transfer, the

acquisition value is the greater of the aircraft net book value plus

the cost of returning the aircraft to an airworthy, mission ready

condition or the commercial retail value of that aircraft in average

condition. If it is a military aircraft without a commercial

equivalent, the acquisition value is equal to the scrap value plus the

cost of returning the aircraft to an airworthy, mission ready

condition.

Actual cost means all costs associated with the use and operation

of an aircraft as specified in Sec. 101-37.406(b).

Agency aircraft means an aircraft, excluding aircraft owned by the

Armed Forces, which is: (1) owned and operated by any executive agency

or entity thereof, or (2) exclusively leased, chartered, rented,

bailed, contracted and operated by an executive agency.

Aircraft accident means an occurrence associated with the operation

of an aircraft which takes place between the time any person boards the

aircraft with the intention of flight and all such persons have

disembarked, and in which any person suffers death or serious injury,

or in which the aircraft received substantial damage.

Bailed aircraft means any aircraft borrowed by a department or

agency from the Department of Defense (DOD), State or local government,

or other non-Federal entity.

Capital asset means any tangible property, including durable goods,

equipment, buildings, facilities, installations, or land, which:

(1) Is leased to the Federal Government for a term of 5 or more

years; or

(2) In the case of a new asset with an economic life of less than 5

years, is leased to the Federal Government for a term of 75 percent or

more of the economic life of the asset; or

(3) Is built for the express purpose of being leased to the Federal

Government; or

(4) Clearly has no alternative commercial use; e.g., special-

purpose Government installation.

Charter aircraft means a one time procurement for aviation

resources and associated services.

Civil aircraft means any aircraft other than a public aircraft.

Contract aircraft means aircraft procured for an agency's exclusive

use for a specified period of time in accordance with the requirements

of the Federal Acquisition Regulation (FAR) 48 CFR Chapter 1 or other

applicable procurement regulations.

Deep cover aircraft means an agency aircraft that is utilized to

gather information for law enforcement purposes. This aircraft does not

display any agency markings. Although the registration filed with the

Federal Aviation Administration (FAA) may indicate ownership by persons

other than the owning or using agency, actual ownership will be

maintained by the owning Federal agency.

Fatal injury means any injury which results in death within 30 days

of the accident.

Fixed costs means the costs of operating aircraft that result from

owning and supporting the aircraft and do not vary according to

aircraft usage. For specific fixed aircraft program cost information,

see Sec. 101-37.201(b).

Forfeited aircraft means an aircraft acquired by the Government

either by summary process or by order of a court of competent

jurisdiction pursuant to any law of the United States.

Full coach fare means a coach fare available to the general public

between the day that the travel was planned and the day the travel

occurred.

Government aircraft means any aircraft owned, leased, chartered or

rented and operated by an executive agency.

Head of executive agency means the head of a Department, agency,

bureau, or independent establishment in the executive branch, including

any wholly owned Government corporation, or an official designated in

writing to act on his or her behalf.

Incident means an occurrence other than an accident, associated

with the operation of an aircraft, which affects or could affect the

safety of operations.

Intelligence agencies refers to the following agencies or

organizations within the intelligence community:

(1) Central Intelligence Agency;

(2) National Security Agency;

(3) Defense Intelligence Agency;

(4) Offices with the Department of Defense for the collection of

specialized national foreign intelligence through reconnaissance

programs;

(5) The Bureau of Intelligence and Research of the Department of

State;

(6) Intelligence elements of the Army, Navy, Air Force, Marine

Corps, Federal Bureau of Investigation, Drug Enforcement

Administration, Department of the Treasury, and Department of Energy;

and

(7) The staff elements of the Director of Central Intelligence.

Investigator-in-charge means the investigator who organizes,

conducts, and controls the field phase of the investigation. This

investigator shall assume responsibility for the supervision and

coordination of all resources and of the activities of all personnel

involved in the on-site investigation.

Lease purchase aircraft means a leased aircraft for which the

Government holds an option to purchase.

Leased aircraft means an aircraft that the Government has a

contractual right to use for a specific period of time.

Loaned aircraft means an aircraft owned by a Department or

independent office which is on loan to a State, cooperator, or other

entity.

Mission requirements mean activities that constitute the discharge

of an agency's official responsibilities. Such activities include, but

are not limited to, the transport of troops and/or equipment, training,

evacuation (including medical evacuation), intelligence and counter-

narcotics activities, search and rescue, transportation of prisoners,

use of defense attache-controlled aircraft, aeronautical research and

space and science applications, and other such activities. Mission

requirements do not include official travel to give speeches, to attend

conferences or meetings, or to make routine site visits. Routine site

[[Page 3549]] visits are customary or regular travel to a location for

official purposes.

Net book value means the acquisition value plus the cost of capital

improvements minus accumulated depreciation.

Non-operational aircraft means an owned, leased, lease purchased,

or bailed aircraft that cannot be flown or operated by the owning or

using agency for an extended period (6 months or more).

Official travel means travel for the purpose of mission

requirements, required use travel, and other travel for the conduct of

agency business.

Operational aircraft means an owned, leased, lease purchased, or

bailed aircraft that is flown and operated or capable of being flown

and operated by the owning or using agency.

Operator means any person who causes or authorizes the operation

of an aircraft, such as the owner, lessee, or bailee of an aircraft.

Owned aircraft means aircraft registered to a Department or an

independent agency in conformity with the regulations of the Federal

Aviation Administration of the Department of Transportation (14 CFR

Chapter 1, Part 47) or in conformity with appropriate military

regulations.

Owning agency means any executive agency, including any wholly

owned Government corporation, having accountability for owned aircraft.

This term applies when an executive agency has authority to take

possession of, assign, or reassign the aircraft regardless of which

agency is the using agency.

Reasonably available means commercial airline or aircraft

(including charter) is 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

of time).

Rental aircraft means aviation resources or services procured

through a standing ordering agreement which is a written instrument of

understanding, negotiated between an agency, contracting activity, or

contracting office and contractor that contains: (1) terms and clauses

applying to future contracts (orders) between parties during its term,

(2) a description, as specific as practicable, of supplies or services

to be provided, and (3) methods for pricing, issuing, and delivering

future orders.

Required use means use of a Government aircraft for the travel of

an executive agency officer or employee to meet bona fide

communications or security requirements of the agency or exceptional

scheduling requirements. An example of a bona fide communications

requirement is having to maintain continuous 24-hour secure

communications with the traveler. Bona fide security requirements

include, but are not limited to, life threatening circumstances.

Exceptional scheduling requirements include emergencies and other

operational considerations which make commercial transportation

unacceptable.

Residual value means the estimated value of an asset at the

conclusion of its useful life, net of disposal costs. It is the dollar

value below which the asset will not be depreciated. Residual value is

established at the time of acquisition.

Seized aircraft means an aircraft that has been confiscated by the

Federal Government either by summary process or by order of a court of

competent jurisdiction pursuant to any law of the United States and

whose care and custody will be the responsibility of the Federal

Government until final ownership is determined by judicial process.

Senior executive branch official means civilian officials appointed

by the President with the advice and consent of the Senate and civilian

employees of the Executive Office of the President (EOP).

Senior Federal official means a person:

(1) Employed at a rate of pay specified in, or fixed according to,

subchapter II of chapter 53 of title 5 of the United States Code;

(2) Employed in a position in an executive agency, including any

independent agency, at a rate of pay payable for level I of the

Executive Schedule or employed in the Executive Office of the President

at a rate of pay payable for level II of the Executive Schedule;

(3) Employed in an executive agency position that is not referred

to in paragraph (1) of this definition, (other than a position that is

subject to pay adjustment under 37 U.S.C. 1009) and for which the basic

rate of pay, exclusive of any locality-based pay adjustment under 5

U.S.C. 5304 (or any comparable adjustment pursuant to interim authority

of the President), is equal to or greater than the rate of the basic

pay payable for the Senior Executive Service under 5 U.S.C. 5382; or

(4) Appointed by the President to a position under 3 U.S.C.

105(a)(2) (A), (B), or (C) or by the Vice President to a position under

3 U.S.C. 106(a)(1) (A), (B), or (C). Generally, a senior Federal

official is employed by the White House or an executive agency,

including an independent agency, at a rate of pay equal to or greater

than the minimum rate of basic pay for the Senior Executive Service.

The term senior Federal official does not include an active duty

military officer.

Serious injury means any injury which: Requires hospitalization for

more than 48 hours, commencing within 7 days from the date the injury

was received: results in a fracture of any bone (except simple

fractures of fingers, toes, or nose); causes severe hemorrhages, nerve,

muscle, or tendon damage; involves any internal organ; or involves

second- or third-degree burns, or any burns affecting more than 5

percent of the body surface.

Space available means travel using aircraft capacity, that is

already scheduled for use for an official purpose, that would otherwise

be unutilized. For the purposes of this part, space available travel is

travel other than for the conduct of agency business.

Substantial damage means damage or failure which adversely affects

the structural strength, performance, or flight charactersistics of the

aircraft, and which would normally require major repair or replacement

of the affected component. Engine failure or damage limited to an

engine if only one engine fails or is damaged, bent fairings or

cowling, dented skin, small puncture holes in the skin or fabric,

ground damage to rotor or propeller blades, and damage to landing gear,

wheels, tires, flaps, engine accessories, brakes or wing tips are not

considered ``substantial damage.''

Support service agreement means a preestablished agreement with a

commercial vendor for specific aviation services.

Undercover aircraft means an owned, leased, lease purchased, or

bailed aircraft that is utilized to gather information for law

enforcement purposes. An undercover aircraft does not display agency

markings but is registered with the FAA to the owning agency.

Useful life means the service life, in years, of the aircraft as

estimated by the manufacturer or evidenced by historical performance.

The useful life is established at the time of acquisition.

Using agency means an executive agency using aircraft for which it

does not maintain ownership. This term applies when an agency obtains

aircraft from any other executive agency on a temporary basis.

Variable costs means the costs of operating aircraft that vary

depending on how much the aircraft are used. For specific variable

aircraft program cost information see Sec. 101-37.201(a).

[[Page 3550]]

3. Subpart 101-37.2 is revised to read as follows:

Subpart 101-37.2--Accounting for Aircraft Costs

Sec.

101-37.200 General.

101-37.201 Standard aircraft program cost elements.

101-37.202 Policy.

101-37.203 [Reserved]

101-37.204 Operations cost recovery methods.

101-37.205 Aircraft program cost effectiveness.

Subpart 101-37.2--Accounting for Aircraft Costs

Sec. 101-37.200 General.

The provisions of this subpart prescribe policies and procedures

for accounting for aircraft costs. This subpart also prescribes

provisions and procedures contained in OMB Circulars A-76 and A-126.

Sec. 101-37.201 Standard aircraft program cost elements.

The following cost elements will be used for the establishment of

cost accounting systems and for reporting Government-owned and operated

aircraft cost and utilization data to the Federal Aviation Management

Information System (FAMIS) on GSA Form 3552.

(a) Variable costs. The variable costs of operating aircraft are

those costs that vary depending on how much the aircraft are used. The

specific variable cost elements include:

(1) Crew costs. The crew costs which vary according to aircraft

usage consist of travel expenses, particularly reimbursement of

subsistence (i.e., per diem and miscellaneous expenses), overtime

charges, and wages of crew members hired on an hourly or part-time

basis.

(2) Maintenance costs. Unscheduled maintenance and maintenance

scheduled on the basis of flying time vary with aircraft usage and,

therefore, the associated costs are considered variable costs. In

addition to the costs of normal maintenance activities, variable

maintenance costs shall include aircraft refurbishment, such as

painting and interior restoration, and costs of or allowances for

performing overhauls and modifications required by service bulletins

and airworthiness directives. If they wish, agencies may consider all

of their maintenance costs as variable costs and account for them

accordingly. Otherwise, certain maintenance costs will be considered

fixed as described in paragraph (b) of this section. Variable

maintenance costs include the costs of:

(i) Maintenance labor. This includes all labor (i.e., salaries and

wages, benefits, travel, and training) expended by mechanics,

technicians, and inspectors, exclusive of labor for engine overhaul,

aircraft refurbishment, and/or repair of major components.

(ii) Maintenance parts. This includes cost of materials and parts

consumed in aircraft maintenance and inspections, exclusive of

materials and parts for engine overhaul, aircraft refurbishment, and/or

repair of major components.

(iii) Maintenance contracts. This includes all contracted costs for

unscheduled maintenance and for maintenance scheduled on a flying hour

basis or based on the condition of the part or component.

(iv) Engine overhaul, aircraft refurbishment, and major component

repairs. These are the materials and labor costs of overhauling

engines, refurbishing aircraft, and/or repairing major aircraft

components.

(A) In general, the flight hour cost is computed by dividing the

costs for a period by the projected hours flown during the period.

However, when computing the flight hour cost factor for this cost

category, divide the total estimated cost for the activities in this

category (e.g., overhaul, refurbishment, and major repairs) by the

number of flight hours between these activities.

(B) Cost or reserve accounts for engine overhaul, aircraft

refurbishment, and major component repairs may, at the agency's

discretion, be identified and quantified separately for mission-

pertinent information purposes. Reserve accounts are generally used

when the aircraft program is funded through a working capital or

revolving fund.

(3) Fuel and other fluids. The costs of the aviation gasoline, jet

fuel, and other fluids (e.g., engine oil, hydraulic fluids, and water-

methanol) consumed by aircraft.

(4) Lease costs. When the cost of leasing an aircraft is based on

flight hours, the associated lease or rental costs are considered

variable costs.

(5) Landing and tie down fees. Landing fees and tie down fees

associated with aircraft usage are considered variable costs. Tie down

fees for storing an aircraft at its base of operations should be

considered part of operations overhead, a fixed cost.

(b) Fixed costs. The fixed costs of operating aircraft are those

that result from owning and supporting the aircraft and do not vary

according to aircraft usage. The specific fixed cost elements include:

(1) Crew costs. The crew costs which do not vary according to

aircraft usage consist of salaries, benefits, and training costs. This

includes the salaries, benefits, and training costs of crew members who

also perform minimal aircraft maintenance. Also included in fixed crew

costs are the costs of their charts, personal protective equipment,

uniforms, and other personal equipment when the agency is authorized to

purchase such items.

(2) Maintenance costs. This cost category includes maintenance and

inspection activities which are scheduled on a calendar interval basis

and take place regardless of whether or how much an aircraft is flown.

Agencies are encouraged to simplify their accounting systems and

account for all maintenance costs as variable costs. However, if they

wish, agencies may account for the following costs as fixed costs:

(i) Maintenance labor. This includes all projected labor expended

by mechanics, technicians, and inspectors associated with maintenance

scheduled on a calendar interval basis. This does not include variable

maintenance labor or work on items having a retirement life or time

between overhaul. This category also includes costs associated with

nonallocated maintenance labor expenses; i.e., associated salaries,

benefits, travel expenses, and training costs. These costs should be

evenly allocated over the number of aircraft in the fleet.

(ii) Maintenance parts. This includes all parts and consumables

used for maintenance scheduled on a calendar interval basis.

(iii) Maintenance contracts. This includes all contracted costs for

maintenance or inspections scheduled on a calendar interval basis.

(3) Lease costs. When the cost of leasing an aircraft is based on a

length of time (e.g., days, weeks, months, or years) and does not vary

according to aircraft usage, the lease costs are considered fixed

costs.

(4) Operations overhead. This includes all costs, not accounted for

elsewhere, associated with direct management and support of the

aircraft program. Examples of such costs include: personnel costs

(salaries, benefits, travel, uniform allowances (when the agency is

authorized to purchase such items), training, etc.) for management and

administrative personnel directly responsible for the aircraft program;

building and ground maintenance; janitorial services; lease or rent

costs for hangars and administrative buildings and office space;

communications and utilities costs; office supplies and equipment;

maintenance and depreciation of support equipment; tie down fees for

[[Page 3551]] aircraft located on base; and miscellaneous operational

support costs.

(5) Administrative overhead. These costs represent a prorated share

of salaries, office supplies, and other expenses of fiscal, accounting,

personnel, management, and similar common services performed outside

the aircraft program but which support this program. For purposes of

recovering the costs of operations, agencies should exercise their own

judgment as to the extent to which aircraft users should bear the

administrative overhead costs. Agencies may, for example, decide to

charge non-agency users a higher proportion, not to exceed 100 percent

of administrative overhead, than agency users if the agency has the

authority to do so. If an aircraft is provided pursuant to an

interagency agreement under the Economy Act of 1932 (31 U.S.C. 1535),

the agency must charge based on the actual costs of the goods or

services provided. For purposes of OMB Circular A-76 costs comparisons,

agencies should compute the actual administrative costs that would be

avoided if a decision is made to contract out the operation under

study.

(6) Self-insurance costs. Aviation activity involves risks and

potential casualty losses and liability claims. These risks are

normally covered in the private sector by purchasing an insurance

policy. The Government is self-insuring; the Treasury's General Fund is

charged for casualty losses and/or liability claims resulting from

accidents. For the purposes of analyses, Government managers will

recognize a cost for ``self-insurance'' by developing a cost based on

rates published by GSA's Aircraft Management Division.

(7) Depreciation. The cost or value of ownership. Aircraft have a

finite useful economic or service life (useful life). Depreciation is

the method used to spread the acquisition value, less residual value,

over an asset's useful life. Although these costs are not direct

outlays as is the case with most other aircraft costs, it is important

to recognize them for analyses required by OMB and other cost

comparison purposes and when replenishing a working capital fund by

recovering the full cost of aircraft operations. Depreciation costs

depend on aircraft acquisition or replacement costs, useful life, and

residual or salvage value. To calculate the cost of depreciation that

shall be allocated to each year, subtract the residual value from the

total of the acquisition cost plus any capital improvements and, then,

divide by the estimated useful life of the asset.

(c) Other costs. There are certain other costs of the aircraft

program which should be recorded but are not appropriate for inclusion

in either the variable or fixed cost categories for the purposes of

justifying aircraft use or recovering the cost of aircraft operations.

These costs include:

(1) Accident repair costs. These costs include all parts,

materials, equipment, and maintenance labor related to repairing

accidental damage to airframes or aircraft equipment. Also included are

all accident investigation costs.

(2) Aircraft costs. This is the basic aircraft inventory or asset

account used as the basis for determining aircraft depreciation

charges. These costs include the cost of acquiring aircraft and

accessories, including transportation and initial installation. Also

included are all costs required to bring aircraft and capitalized

accessories up to fleet standards.

(3) Cost of capital. The cost of capital is the cost to the

Government of acquiring the funds necessary for capital investments.

The agency shall use the borrowing rate announced by the Department of

the Treasury for bonds or notes whose maturities correspond to the

manufacturer's suggested useful life or the remaining useful life of

the asset.

Sec. 101-37.202 Policy.

Agencies shall maintain cost systems for their aircraft operations

which will permit them to justify the use of Government aircraft in

lieu of commercially available aircraft, or the use of one Government

aircraft in lieu of another; recover the costs of operating Government

aircraft when appropriate; determine the cost effectiveness of various

aspects of their aircraft program; and conduct the cost comparisons to

justify in-house operation of Government aircraft versus procurement of

commercially available aircraft services. To accomplish these purposes,

agencies must accumulate their aircraft program cost into the standard

aircraft program cost elements specified in Sec. 1010-37.201.

Sec. 101-37.203 [Reserved]

Sec. 101-37.204 Operations cost recovery methods.

Under 31 U.S.C. 1535, and various acts appropriating funds or

establishing working funds to operate aircraft, agencies are generally

required to recover the costs of operating all aircraft in support of

other agencies and other governments. Depending on the statutory

authorities under which its aircraft were obtained or are operated,

agencies may use either of two methods for establishing the rates

charged for using their aircraft; full cost recovery rate or the

variable cost recovery rate.

(a) 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 is described in Sec. 101-37.304. The

fixed cost recovery rate for an aircraft or aircraft type is computed

as follows:

(1) Accumulate the fixed costs listed in Sec. 101-37.201(b) that

are directly attributable to the aircraft or aircraft type. These costs

should be taken from the agency's accounting system.

(2) Adjust the total fixed cost for inflation and for any known

upcoming cost changes to project the new fixed total costs. The

inflation factor used should conform to the provisions of OMB Circular

A-76.

(3) Allocate operations and administrative overhead costs to the

aircraft based on the percentage of total aircraft program flying hours

attributable to that aircraft or aircraft type.

(4) Compute a fixed cost recovery rate for the aircraft by dividing

the sum of the projected directly attributable fixed costs, adjusted

for inflation, from paragraph (a)(2) of this section and the allocated

fixed costs from paragraph (a)(3) of this section by the annual flying

hours projected for the aircraft.

(b) The variable cost recovery rate is the total variable cost rate

of operating an aircraft described in Sec. 101-37.304. If an agency

decides to base the charge for using its aircraft solely on this rate,

it must recover the fixed costs of those aircraft from the

appropriations which support 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.

(c) To compute the full cost recovery rate of using a Government

aircraft for a trip, add the variable cost recovery rate for the

aircraft or aircraft type to the corresponding fixed cost recovery rate

and multiply this sum by the estimated number of flying hours for the

trip using the proposed aircraft.

Sec. 101-37.205 Aircraft program cost effectiveness.

Although cost data are not the only measures of the effectiveness

of an agency's aircraft program, they can be useful in identifying

opportunities to reduce aircraft operational costs. These opportunities

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 operation and maintenance costs. The

[[Page 3552]] 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 (one passenger flying

one mile). These measures may be developed using the standard aircraft

program cost elements (see Sec. 101-37.201) and include, but are not

limited to: maintenance costs/flying hours, fuel and other fluids/

flying hours, and variable cost/passenger mile. GSA will coordinate the

development of other specific cost-effectiveness measures with the

appropriate Interagency Committee for Aviation Policy subcommittees

(ICAP).

(a) Maintenance costs per flying hour. Maintenance costs per flying

hour identifies on an aggregate basis relative cost effectiveness of

maintenance alternatives. This measure is among those necessary to

identify and justify procurement of less costly aircraft.

(b) Fuel and other fluids cost per flying hour. Fuel per flying

hour identifies the relative fuel efficiency of an individual aircraft.

The measure identifies the requirement to replace inefficient engines

or to eliminate fuel inefficient aircraft from the fleet.

(c) Crew costs-fixed per flying hour. When based on the total fixed

crew costs and flying hours, can be used to determine the impact of

crew utilization on overall operating costs; can also be used to

compare crew utilization and salary levels among different agency or

bureau aircraft programs.

(d) Operations overhead per flying hour. Operations overhead may be

used on an aggregate basis (i.e., total operations overhead

expenditures divided by hours flown) to compare the overhead activities

in direct support of aircraft operations among agencies or bureaus.

This factor can indicate excess overhead support costs.

(e) Administrative overhead per flying hour. Administrative

overhead may be used on an aggregate basis (i.e., total administrative

overhead divided by hours flown) to compare the level of administrative

support to other agencies and bureaus.

4. Subpart 101-37.3 is revised to read as follows:

Subpart 101-37.3--Cost Comparisons for Acquiring and Using Aircraft

Sec.

101-37.300 General.

101-37.301 Applicability.

101-37.302 [Reserved]

101-37.303 [Reserved]

101-37.304 Variable cost rate.

101-37.305 Acquisition and management.

Subpart 101-37.3--Cost Comparisons for Acquiring and Using Aircraft

Sec. 101-37.300 General.

The provisions of this subpart prescribe policies and procedures

for conducting cost comparisons for the acquisition, use, or lease of

aircraft. This subpart incorporates selected provisions of OMB

Circulars A-76 and A-126.

Sec. 101-37.301 Applicability.

This subpart applies to all agencies in the executive branch of the

Federal Government. It does not apply to the United States Postal

Service, to the Government of the District of Columbia, or to non-

Federal organizations receiving Federal loans, contracts, or grants.

Sec. 101-37.302 [Reserved]

Sec. 101-37.303 [Reserved]

Sec. 101-37.304 Variable cost rate.

For the purpose of comparing costs (Government, commercial charter,

and airline) associated with passenger transportation flights, as

required by Sec. 101-37.406, the agency should develop a variable cost

rate for each aircraft or aircraft type as follows:

(a) Accumulate or allocate to the aircraft or aircraft type all

historical costs, for the previous 12 months, grouped under the

variable cost category defined in Sec. 101-37.201. These costs should

be obtained from the agency's accounting system.

(b) Adjust the historical variable costs for inflation and for any

known upcoming cost changes to determine the projected variable cost.

The inflation factor used should conform to the provisions of OMB

Circular A-76.

(c) Divide the projected variable cost of the aircraft or aircraft

type by the projected annual flying hours for the aircraft or aircraft

type to compute the variable cost rate (per flying hour).

(d) To compute the variable cost for a proposed trip, multiply the

variable cost rate by the estimated number of flying hours for the

trip. The number of flying hours should include:

(1) If no follow-up trip is scheduled, all time required to

position the aircraft to begin the trip and to return the aircraft to

its normal base of operations.

(2) If a follow-on trip requires repositioning, the cost for

respositioning should be charged to the associated follow-on trip.

(3) If an aircraft supports a multi-leg trip (a series of flights

scheduled sequentially), the use of the aircraft for the total trip may

be justified by comparing the total variable cost of the entire trip to

the commercial aircraft cost (including charter) for all legs of the

trip.

Sec. 101-37.305 Acquisition and management.

(a) The number and size of aircraft acquired by an agency and the

capacity of those aircraft to carry passengers and cargo shall not

exceed the level necessary to meet the agency's mission requirements.

(b) Agencies must comply with OMB Circular A-76 before purchasing,

leasing, or otherwise acquiring aircraft and related services to assure

that these services cannot be obtained from and operated by the private

sector more cost effectively.

(c) Agencies shall review on a 5-year cycle the continuing need for

all of their aircraft and the cost effectiveness of their aircraft

operations in accordance with OMB approved cost justification

methodologies. A copy of each agency review shall be submitted to GSA

when completed and to OMB with the agency's next budget submission.

Agencies shall report any excess aircraft and release all aircraft that

are not fully justified by these reviews.

(d) Agencies shall use their aircraft in the most cost effective

way to meet their requirements.

Subpart 101-37.4--Use of Government-Owned and Operated Aircraft

Sec. 101-37.401 [Reserved]

5. Section 101-37.401 is removed and reserved.

6. Section 101-37.404 is revised to read as follows:

Sec. 101-37.404 Approving the use of Government aircraft for

transportation of passengers.

(a) Use of Government aircraft for official travel may be approved

only by the agency head or official(s) designated by the agency head.

(b) Whenever a Government aircraft used to fulfill a mission

requirement is used also to transport senior Federal officials, members

of their families or other non-Federal travelers on a space available

basis (except as authorized under 10 U.S.C. 4744 and regulations

implementing that statute), the agency that is conducting the mission

shall certify in writing prior to the flight that the aircraft is

scheduled to perform a bona fide mission activity, and that the minimum

mission requirements have not been exceeded in order to transport such

space available travelers. In emergency situations, an after-the-fact

written certification by the agency is permitted. [[Page 3553]]

7. Section 101-37.408 is revised to read as follows:

Sec. 101-37.408 Reporting travel by senior Federal officials.

Agencies shall submit semi-annual reports for the periods October 1

through March 31 (due May 31), and April 1 through September 30 (due

November 30) to the General Services Administration, Aircraft

Management Division, Washington, DC 20406. A copy of each report shall

also be submitted to the Deputy Director for Management, Office of

Management and Budget, 725 17th Street, NW, Washington, DC 20503.

Agencies shall submit report data using the Federal Aviation Management

Information System structure and management codes for automated

reporting or GSA Form 3641, Senior Federal Travel. Agencies that did

not transport any senior Federal officials or special category

travelers during the relevant time frame must still submit a written

response that acknowledges the reporting requirements and states they

have no travel to report. These reports shall be disclosed to the

public upon request unless classified.

(a) Reports shall include data on all non-mission travel by senior

Federal officials on Government aircraft (including those senior

Federal officials acting in an aircrew capacity when they are also

aboard the flight for transportation), members of the families of such

officials, any non-Federal traveler (except as authorized under 10

U.S.C. 4744 and regulations implementing that statute), and all mission

and non-mission travel for senior executive branch officials. The

reports shall include:

(1) The names of the travelers;

(2) The destinations;

(3) The corresponding commercial cost had the traveler used

commercial airline or aircraft service (including charter);

(4) The appropriate allocated share of the full operating cost of

each trip;

(5) The amount required to be reimbursed to the Government for the

flight;

(6) The accounting data associated with the reimbursement; and

(7) The data required by Sec. 101-37.407 (a), (b) and (d) of this

subpart.

(b) Each agency is responsible for reporting travel by personnel

transported on aircraft scheduled by that agency.

(c) The agency using the aircraft must also maintain the data

required by this section for classified trips. This information shall

not be reported to GAS or OMB but must be made available by the agency

for review by properly cleared personnel.

8. Subpart 101-37.5 is revised to read as follows:

Subpart 101-37.5--Management Information Systems (MIS)

Sec.

101-37.500 General

101-37.501 [Reserved]

101-37.502 GSA MIS responsibilities.

101-37.503 Reporting responsibilities.

101-37.504 Reports.

101-37.505 Aircraft used for sensitive missions.

101-37.506 Reporting requirements for law enforcement, national

defense, or interdiction mission aircraft.

Subpart 101-37.5--Management Information Systems (MIS)

Sec. 101-37.500 General.

Executive agencies must maintain an aviation MIS. Agency systems

will include computer applications appropriate to the complexity of the

operation. Systems should be integrated among bureaus, agencies, and

Departments as appropriate to maximize efficiency and effectiveness

Governmentwide. MIS capabilities will include, but are not limited to,

collecting, consolidating, and producing the reports and analyses

required by: field-level organizations for day-to-day operations,

agencies to justify the continuing use of aircraft or new acquisitions,

GSA to develop Governmentwide aviation management guidance, and OMB and

other oversight agencies to capitalize on opportunities to improve

efficiency and effectiveness.

Sec. 101-37.501 [Reserved]

Sec. 101-37.502 GSA MIS responsibilities.

The Aircraft Management Division will operate the Governmentwide

aircraft MIS (also known as the Federal Aviation Management Information

System (FAMIS)), develop generic aircraft MIS standards and software,

and provide technical assistance to agencies in establishing automated

aircraft information and cost accounting systems and conducting cost

analyses required by OMB. The FAMIS will collect and maintain summary

data including, but not limited to:

(a) Aircraft and aviation related facilities inventories;

(b) Cost and utilization for owned aircraft and aviation

facilities;

(c) Cost and utilization for chartered, rented, or contracted

aircraft;

(d) Inventories of support service agreements; and

(e) Senior Federal official and special category travel data.

Sec. 101-37.503 Reporting responsibilities.

Reporting responsibilities are as follows:

(a) Owned aircraft. The executive agency to which the aircraft is

registered in conformance with the FAA regulations or appropriate

military regulations is responsible for reporting inventory, cost, and

utilization data for each aircraft.

(b) Bailed aircraft. The executive agency which operates bailed

aircraft is responsible for reporting inventory, cost, and utilization

data for each aircraft.

(c) Leased or lease/purchased aircraft. The executive agency which

makes payment to a private or other public sector organization for the

aircraft is responsible for reporting inventory, cost, and utilization

data for each aircraft.

(d) Loaned aircraft. The executive agency which owns an aircraft on

loan to a Federal agency will report inventory, cost, and utilization

data. The executive agency which owns an aircraft on loan to a State,

cooperator, or other non-Federal entity will report inventory data

associated with that aircraft.

(e) Contract, charter, and rental aircraft. The executive agency

which makes payment to a private sector or other public sector

organization for the aircraft is responsible for reporting cost and

utilization data by specific aircraft for each type of mission

performed.

(f) Support services. The executive agency establishing the

aviation support services agreement with service vendors is responsible

for reporting associated data by agreement number, aircraft or service

type, and vendor.

(g) Senior Federal official and special category travel. Each

executive agency is responsible for reporting travel by personnel

transported on aircraft scheduled by that agency.

Sec. 101-37.504 Reports.

Executive agencies will submit aviation management data using FAMIS

structure format for automated reporting or appropriate forms. FAMIS

data shall be submitted to the General Services Administration,

Aircraft Management Division, Washington, DC 20406. Interagency report

control number 0322-GSA-AN has been assigned to these reports. To the

extent that information is protected from disclosure by statute, an

agency is not required to furnish information otherwise required to be

reported under this subpart.

(a) Each executive agency will provide GSA with reports as changes

occur for: [[Page 3554]]

(1) Facilities inventories. Additions, deletions, and changes shall

be submitted using GSA Form 3549, Government-owned/leased Maintenance,

Storage, Training, Refueling Facilities (per facility) or FAMIS file

structures.

(2) Aircraft inventories. Additions, deletions, and changes shall

be submitted using GSA Form 3550, Government Aircraft Inventory (per

aircraft) or FAMIS file structures. Any aircraft operated or held in a

non-operational status, must be reported to FAMIS regardless of its

ownership category.

(3) Aviation support services cost data. This data will be

submitted using GSA Form 3554, Aircraft Contract/Rental/Charter Support

Services Cost Data Form or FAMIS file structures, as support service

agreements become effective.

(b) Each executive agency will provide GSA with reports annually on

or before January 15 for the previous fiscal year ending September 30

for:

(1) Contract, rental, and charter aircraft cost and utilization

data. Each form or FAMIS database record must contain only one aircraft

for each type of mission performed. The data is submitted using GSA

Form 3551, Contract/Charter/Rental Aircraft Cost and Utilization or

FAMIS file structures.

(2) Government aircraft cost and utilization data. The cost and

utilization information must be tracked by serial number and must

reflect the actual use and expenditures incurred for each individual

aircraft. These reports are to be submitted using GSA Form 3552,

Government Aircraft Cost and Utilization or FAMIS file structures.

(c) Each executive agency will provide GSA with a report

semiannually on or before May 31 for the period October 1 through March

30, and on or before November 30 for the period April 1 through

September 30 for senior Federal official and special category travel.

These reports are to be submitted using GSA Form 3641, Senior Federal

Travel or FAMIS file structures. Executive agencies that did not

transport any senior Federal officials or special category travelers

during the relevant time frame must submit a written response that

acknowledges the reporting requirements and states that they have no

travel to report. For detailed explanation see Sec. 101-37.408.

Sec. 101-37.505 Aircraft used for sensitive missions.

Inventory, cost, and utilization data submitted to GSA for agency

aircraft dedicated to national defense, law enforcement, or

interdiction missions will be safeguarded as specified in Sec. 101-

37.506. GSA will not allow identification (registration number, serial

number, etc.), location, or use patterns to be disclosed except as

required under the Freedom of Information Act.

Sec. 101-37.506 Reporting requirements for law enforcement, national

defense, or interdiction mission aircraft.

Agencies using aircraft for law enforcement, national defense, or

interdiction missions may use reporting provisions which provide for

agency information protection as specified in paragraphs (a) and (b) of

this section.

(a) Undercover aircraft. Agencies operating undercover aircraft as

defined in Sec. 101-37.100, will report to GSA all FAMIS data in

accordance with Sec. 101-37.504, to include the registration number and

serial number as reported to the Federal Aviation Administration (FAA),

Office of Aircraft Registry.

(b) Deep cover aircraft. Agencies operating deep cover aircraft as

defined in Sec. 101-37.100, will report to GSA all FAMIS data in

accordance with Sec. 101-37.504, except for that data requiring special

handling by the FAA. Specific identifying data for those aircraft

requiring special handling by the FAA will be reported as follows:

(1) Special number data. Initially, agencies will supply the actual

aircraft serial number with a unique code number. The code number will

be used for all future data submissions. GSA will maintain the actual

serial number and associated code in a secured file independent from

all other FAMIS data. The secured file containing aircraft serial

number data will not be printed or distributed.

(2) Registration number data. Agencies will not submit registration

number (FAA registration number) for deep cover aircraft.

(3) Location data. Agencies will not submit location data.

Subpart 101-37.11--Accident and Incident Reporting and

Investigation

Sec. 101-37.1101 [Reserved]

8. Section 101-37.1101 is removed and reserved.

Dated: December 28, 1994.

Julia M. Stasch,

Acting Administrator of General Services.

[FR Doc. 95-773 Filed 1-17-95; 8:45 am]

BILLING CODE 6820-24-M