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Department of DefenseIntegrated Lodging StrategyApril 30, 20145/7/20141
Background OMB M-12-12 requires Agencies toexpand/leverage purchasing power to reducecost associated with hotelsLodging RequirementBooking ChannelsPhoneInternetLodgingSuccessProgram isreducingcontracts asArmy privatizesDoD lodgingTraveler may incur aCTO fee which variesby contractCTONoCall Center determines governmentlodging availability in TDY ler must findown commercialhotel/apartmentCall Center faxesreservationrequest to hotelInventoryavailable?NoTraveler must findown commercialhotel/apartmentNoIs DoD lodgingavailable?Travel r booksDoD lodgeYesNoNoPhoneTraveler booksavailable DoDlodgeDTSHotel may pay CTO10% commission onhotel rate revenueCorporateApartmentDoDLodging.netNavy Gateway/AirForce InnsNoTraveler confirmsreservation directlywith charge cardnumberInventoryavailable?Bid sent daccepted?Traveler booksroom directly withavailable facilityChain CentralReservation CenterGDSBids returned totravelerTraveler must findown commercialhotel/apartmentTravelers maybookFedRoomsthrough DTS,CTO, Internet orphoneNoExtended Stay Hotel / TransientHotel Property ManagementSystemTraveler booksalternative longterm lodgingCarlson Wagonlit Travelreceives 2% of room revenueand GSA receives .75% of roomrevenue from hotelsBooking channelfor Contractlodging willdepend onwhich type oflodging isselectedContractDoDLodging.netis consideringestablishing aCall Center inMemphis, TN tohandle calls edTraveler must callDoD lodge to obtainCNAInternetInn recommendsBOQ/BEQ or offbase commercialhotelMulti SupplierPlatformTraveler checks availability of NavyGateway Inns, Air Force Inns atDoDLodging.net websiteCTOInternetTraveler must findown commercialhotel/apartmentTraveler confirmsreservation directlywith charge cardnumber 3 per room night is paid to LSby hotels for actualized roomnightsTraveler checksavailability onwww.innsofthecorps.comor calls directly to InnYesAvailable?CNA / NAissuedGDSTravel agencybooks traveler atcontracted hotelsNoYesCall Center faxesreservationrequest to hotelNoTraveler booksroom directly withNavy LodgeInns of theCorps iscurrentlynegotiating withNavy Lodge toact as CallCenter for theMarine CorpsInns of the CorpsTraveler checks availability atDoD lodge in TDY locationCorporateOfficeCall Center checksdatabase forcontracted hotels inTDY locationHotel may pay CTO 10%commission on room raterevenueTraveler has requirement forlodging for more than Reservationinside 15 daysNoGDSYesCall Center offerstraveler option touse third partytravel agencyCall Centerconfirms room atavailable facilityCall Center callscontracted hotelsin TDY location tocheck availabilityYesCall Center checksavailability at NavyLodge, NavyGateway InnsCall Centerissues nonavailabilitycertificateTraveler informedto contact DoDlodging directlyTraveler bookingthrough internet?DTSExtended Stay Hotel/Transient HotelCorporateApartmentsNavy LodgeLodging SuccessCall CenterYes DoD lodging rooms are not bookable in theDTS reservation modulePotential cancellation fees couldbe incurred by travelerdependent on internet siteHotels pay a GDS fee between 5-7 per transaction to GDSLodging Success/Army Lodging DODI 5154.31 assigned responsibility formanaging commercial travel programs toDTMODTS can only book commercial lodgingCurrently, there are two government Call Centers with the possibility of a thirdCompeting programs involved in contracting commercial lodgingDoD lodging can only be booked across Services on DoDLodging.netMultiple inventory databases are maintained with no central data repositoryMultiple scenarios that require travelers to negotiate their own lodging ratesNo centralized approach to ensuring quality standards and/or force protectionrequirements Disparate performance measures No concerted DoD approach to maximize DoD lodging occupancy across Services No centralized management of suppliersDepartment of Defense Lodging Process The existing lodging programs serve subsets ofthe DoD population of travelers or travel types,and do not have an enterprise-wide scope orapproach Business case analysis completed in 2013indicated strategic sourcing for commerciallodging has the potential to yield savings of 28M based on FY2011 spend LocallymanagedDirect tocommercialYesUnmanagedBooked at DoDlodgeTraveler books roomdirectly with availablefacilityNoManaged? Customer focus groups indicated travelerswant easier access to hotels in safe places,amenities consistent with corporate programsand the ability to provide feedback on their stay22Lodging SuccessGSA ScheduleCLASContractMOUMOAPer diemUnmanagedYesTraveler must findown edInternetPhoneFees incurred by traveler/CTO/Hotel would vary bymethod of DSNegotiatedratesVersion 11, 9/27/2012Per diemCreated the need for an Integrated Lodging Strategy
Current DoD Policies and Processes Government (on-base) lodging:– Most military members on temporary duty travel (TDY) to amilitary installation must use government lodging if available– Civilian employees are encouraged to consider governmentlodging– Government lodging not bookable via the Defense TravelSystem (DTS) Commercial lodging:– Travelers typically use multiple booking channels and selecthotels based on personal preference within per diem rates– No enterprise wide management of commercial lodgingprograms– DoD programs are not bookable though DTS3
Current DoD Commercial Lodging ProgramsArmy Lodging Success– Established to provideoverflow lodgingcommercial hotels nearArmy installations– Currently operationalat Ft Lee, VA; FortSam Houston, TX; andCharlottesville, VA Privatization of ArmyLodging (PAL)– Replaced on-baselodging at all otherCONUS and nonforeign OCONUSlocations– Room rates average75% of per diemacross each of thethree implementationphases– Vendor has 50 yearlease and mustmaintain facilities– In process of beingreflagged as InterContinental HotelsGroup (IHG) propertiesonce up to corporatestandards4Navy Navy Gateway Inns &Suites– Established acommercial lodgingprogram withnegotiated rates atselected locations– Primarily used forgroup stays Navy Lodge– Uses Omega WorldTravel to negotiateagreements withcommercial hotels inselected locations Navy Elite– Managed byCWTSatoTravel alsooffers a commerciallodging program nearNaval installationsMarine Corps No formal commercialprogramAir Force Each installationnegotiates agreements asneeded with localproperties
Integrated Lodging StrategyStrategically sourced commercial lodging program that leverages the buying powerof the Department to achieve better rates and services for DoD travelers.Integrates DoD lodging with the Defense Travel System.PROGRAM MANAGEMENT Performance Management Supplier Management Communications/ChangeCOMMERCIAL TRANSIENT/LONG-TERMLODGING Management Strategically sourcedcommercial lodging pilot at5 pilot locations– JFTR/JTR Changes– DTS modificationspending funds– Third party vendor– Congressional notification– Customer feedback– Launch: Jan 2015 Long term lodging beingreviewed for incorporation Knowledge Management Customer Engagement Stakeholder EngagementDTS/DEFENSE LODGINGSYSTEM INTERFACE Establish the capability tobook DoD Lodging in DTSGROUPLODGING Determining potential costsavings/process efficienciesin enterprise-widemanagement of grouplodging Established sub-workinggroup Estimated timeline tocompletion is December2014DEFENSE LODGING COUNCIL5Currently, all key commercial travel programs are centrally managed at the DoD level with the exception of lodging.DoD spent 1.3B in lodging for FY12.
Statute and Policy ChangesNDAA 2012 Established a new title 37, Chapter 8 – Travel and Transportation Allowances, toimplement simple, efficient travel and transportation policy Includes authority to conduct pilot programs (e.g., to gain efficiencies)– Congressional notification and reporting required Commercial lodging pilot will operate under new Joint Federal Travel Regulations/JointTravel Regulations policy requiring travelers to book commercial lodging through DTSand stay in preferred hotels at the pilot sitesPresident’s FY15Budget Proposal Would permit the Secretary of Defense to direct the use of adequate governmentquarters for civilians employees or the use of government-leased quarters or lodgingarranged through a government program by civilian employees and Uniformed ServicemembersPer Diem Travel andTransportationAllowance Committeeentitlement changesfor long term lodging6 Regulatory change in coordination to limit travelers to 75% of per diem for stays of 31 to179 nights and 55% for stays 180 nights or more Will not apply to military lodging facilities although M&IE may be limited Approving Official can approve reimbursement of higher lodging rate on a case-by-casebasis
- Government lodging not bookable via the Defense Travel System (DTS) Commercial lodging: - Travelers typically use multiple booking channels and select hotels based on personal preference within per diem rates - No enterprise wide management of commercial lodging programs - DoD programs are not bookable though DTS . 3
