GSA City Pair Program Saves Billions for Federal Agencies--
July 15, 2019
More than $2 billion saved annually through government's air travel program
WASHINGTON — The U.S. General Services Administration awarded its Fiscal Year 2020 City Pair Program air travel contracts, which will save the government approximately $2.71 billion next fiscal year. Under the GSA City Pair Program, airfare rates for the federal government’s official travel are pre-negotiated and firm-fixed-price, offering a 51 percent discount on comparable commercial fares. In addition to offering considerable discounts, the City Pair Program allows the federal government maximum flexibility in how it books air travel, with benefits including no cancellation or change fees.
“Year after year, GSA’s ‘Best-in-Class’ City Pair Program helps federal agencies save valuable taxpayer dollars by leveraging the government’s buying power,” said GSA’s Federal Acquisition Service Commissioner Alan Thomas. “Through the GSA City Pair Program, we’ll be able to save taxpayers more than $2.71 billion, while still providing travel solutions that help agencies meet their missions.”
Eight major U.S. carriers were awarded contracts for FY20. When awarding City Pair contracts to airlines, GSA considers a number of criteria, including availability of non-stop service, total number of flights, flight availability, average elapsed flight time, availability of jet service, and price of service. The FY 2020 rates will become effective October 1, 2019.
- GSA’s data-driven analytical approach to managing the program and negotiating with the airlines and carriers drives cost savings and program performance.
- Average domestic fares awarded remained virtually the same at $229 in FY20 versus $228 in FY19. Average international fares awarded increased from $729 in FY19 to $749 in FY20.
- The City Pair Program continues its global reach with 12,015 total markets being awarded.
- For FY20, 2,564 markets have been awarded with non-stop service. For the first time CPP solicited all eligible non-stop service markets traveled by government travelers, awarding 99%.
- FY20 utilization of the CPP fares projects an estimated savings of $216 million when compared to corporate fares.
About GSA: The mission of GSA is to deliver value and savings in real estate, acquisition, technology, and other mission-support services across government. One of its four strategic goals is to establish GSA as the premier provider of efficient and effective acquisition solutions across the government.