GSA to launch $1.4B next-generation travel management system

Monday - 6/4/2012, 3:50pm EDT

The General Services Administration has awarded Concur Technologies a 15-year, $1.4 billion contract to overhaul the agency's cloud-based travel-management service.

Since its launch in 2002, the E-Gov Travel Service has consolidated more than 250 different agency-operated travel systems and helped spur the use of online travel services to save costs.

Version 2 of the program will provide even more capability, GSA said. Under the terms of the contract, Concur will provide travel planning, authorizations, reservations, ticketing, and reimbursements and reporting through a streamlined interface. This will allow agency managers to "leverage government purchasing power through in-depth analysis of governmentwide travel data," GSA said in a release.

The performance-based, firm fixed-price contract has a 15-year period of performance — a three-year base period and three four-year options. The $1.4 billion pricetag is the the total value of the contract over 15 years, if all agencies sign up for the service and exhaust all the options.

"This new service will bring efficient, cost-effective travel management strategies and deliver real savings to the taxpayer," said GSA's Federal Acquisition Service Commissioner Steve Kempf. "When you combine GSA's market expertise with best practices from the private sector, ETS2 is positioned to transform travel savings and management across the government."

ETS, which is now used by more than 90 federal agencies to manage travel bookings and expenses, saves the government more than $20 million each year, GSA said.

The first iteration of ETS fell under a 10-year, $450 million contract awarded in 2003 to three vendors: Carlson Wagonlit, EDS (now HP) and Northrop Grumman.

GSA first issued a request-for-proposal for the ETS update in August 2010. In the RFP, GSA signaled it was looking to move from three vendors to as few as one.

GSA will deploy ETS2 later this year.

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