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Department of Defense Integrated Lodging Strategy

April 30, 2014

Background

Department of Defense Lodging Process

InternetPhone

Lodging Requirement

DoDLodging.netNavy Gateway/Air

Force Inns

Lodging Success/Army Lodging Navy Lodge

CTO DTS

Inns of the Corps

GDS

Lodging SuccessCall Center

Call Center determines government lodging availability in TDY location

Available?

Traveler informed to contact DoD lodging directly

Yes

Call Center issues non-availability certificate

No

Traveler must find own commercial hotel/apartment

Reservation inside 15 days

Call Center calls contracted hotels in TDY location to check availability

Yes

Inventory available?

Call Center faxes reservation

request to hotel

Yes

Traveler confirms reservation directly

with charge card number

No

Call Center checks database for

contracted hotels in TDY location

No

Inventory available?

Call Center faxes reservation

request to hotel

Traveler confirms reservation directly

with charge card number

Traveler must find own commercial hotel/apartment

Yes No

Traveler booking through internet?

Traveler books room directly with

Navy Lodge

Yes

Call Center checks availability at Navy

Lodge, Navy Gateway Inns

No

Call Center confirms room at available facility

Yes

Call Center offers traveler option to

use third party travel agency

No

Travel agency assistance accepted

Travel agency books traveler at contracted hotels

Traveler must find own commercial hotel/apartment

Yes No

Extended Stay Hotel/Transient Hotel

DTS CTO Internet Phone

GDS Chain Central Reservation Center

Extended Stay Hotel / Transient Hotel Property Management

System

Traveler checks availability at DoD lodge in TDY location

Available?

Traveler books DoD lodge

Yes

CNA / NA issued

No

Corporate Apartments

Traveler has requirement for lodging for more than 30

days

Is DoD lodging available?

Traveler books available DoD

lodge

YesNo

CNA issued

Phone Internet

Multi Supplier Platform

Corporate Apartment

Corporate Office

Bid sent to multiple

corporate apartment providers

Bids returned to traveler

Bid accepted?

Yes

Traveler books alternative long

term lodging

No

Traveler checks availability on

www.innsofthecorps.com or calls directly to Inn

Inventory available?

Traveler books room directly with available facility

Inn recommends BOQ/BEQ or off

base commercial hotel

YesNo

Traveler checks availability of Navy Gateway Inns, Air Force Inns at

DoDLodging.net website

Inventory available?

Traveler books room directly with available

facility

Traveler must call DoD lodge to obtain

CNA

YesNo

Contract

CNA

Direct to commercial

Centrally managed

Locally managed Unmanaged

Booked at DoD lodge

Lodging SuccessGSA Schedule

CLAS

Negotiated rates

ContractMOUMOA

Undetermined

Per diemUnmanaged

Internet Phone CTO DTSMulti

supplier platform

GSA Schedule CLAS

Per diem

Negotiated rates

Yes No

No Yes

Yes

NoManaged?

Version 11, 9/27/2012

Booking channel for Contract lodging will depend on

which type of lodging is selected

GDS

GDS

• DTS can only book commercial lodging• Currently, there are two government Call Centers with the possibility of a third• Competing programs involved in contracting commercial lodging• DoD lodging can only be booked across Services on DoDLodging.net• Multiple inventory databases are maintained with no central data repository • Multiple scenarios that require travelers to negotiate their own lodging rates • No centralized approach to ensuring quality standards and/or force protection

requirements• Disparate performance measures • No concerted DoD approach to maximize DoD lodging occupancy across Services• No centralized management of suppliers

Inns of the Corps is currently

negotiating with Navy Lodge to

act as Call Center for the Marine Corps

DoDLodging.net is considering establishing a Call Center in

Memphis, TN to handle calls and

database requirements

Booking Channels

$3 per room night is paid to LS by hotels for actualized room

nights

Traveler may incur a CTO fee which varies

by contract

Hotels pay a GDS fee between $5-7 per transaction to GDS

Hotel may pay CTO 10% commission on room rate

revenue

Hotel may pay CTO 10% commission on hotel rate revenue

Fees incurred by traveler/CTO/Hotel would vary by

method of booking

Potential cancellation fees could be incurred by traveler

dependent on internet site

Traveler must find own commercial hotel/apartment

Traveler must find own commercial hotel/apartment

Travelers may book

FedRooms through DTS,

CTO, Internet or phone

Omega Travel

supports MWR

contract

Lodging Success

Program is reducing

contracts as Army privatizes

DoD lodging

Carlson Wagonlit Travel receives 2% of room revenue

and GSA receives .75% of room revenue from hotels

• OMB M-12-12 requires Agencies to expand/leverage purchasing power to reduce cost associated with hotels

• The existing lodging programs serve subsets of the DoD population of travelers or travel types, and do not have an enterprise-wide scope or approach

• Business case analysis completed in 2013 indicated strategic sourcing for commercial lodging has the potential to yield savings of $28M based on FY2011 spend

• DODI 5154.31 assigned responsibility for managing commercial travel programs to DTMO

• DoD lodging rooms are not bookable in the DTS reservation module

• Customer focus groups indicated travelers want easier access to hotels in safe places, amenities consistent with corporate programs and the ability to provide feedback on their stay

2 Created the need for an Integrated Lodging Strategy… 2

Current DoD Policies and Processes • Government (on-base) lodging:

– Most military members on temporary duty travel (TDY) to a military installation must use government lodging if available

– Civilian employees are encouraged to consider government lodging

– 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

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Current DoD Commercial Lodging Programs

Army

• Lodging Success – Established to provide

overflow lodging commercial hotels near Army installations

– Currently operational at Ft Lee, VA; Fort Sam Houston, TX; and Charlottesville, VA

• Privatization of Army Lodging (PAL) – Replaced on-base

lodging at all other CONUS and non-foreign OCONUS locations

– Room rates average 75% of per diem across each of the three implementation phases

– Vendor has 50 year lease and must maintain facilities

– In process of being reflagged as Inter-Continental Hotels Group (IHG) properties once up to corporate standards

Navy

• Navy Gateway Inns & Suites – Established a

commercial lodging program with negotiated rates at selected locations

– Primarily used for group stays

• Navy Lodge – Uses Omega World

Travel to negotiate agreements with commercial hotels in selected locations

• Navy Elite – Managed by

CWTSatoTravel also offers a commercial lodging program near Naval installations

Marine Corps

• No formal commercial program

Air Force

• Each installation negotiates agreements as needed with local properties

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Integrated Lodging Strategy Strategically sourced commercial lodging program that leverages the buying power

of the Department to achieve better rates and services for DoD travelers. Integrates DoD lodging with the Defense Travel System.

• Performance Management • Supplier Management • Communications/Change

• Management

• Knowledge Management • Customer Engagement • Stakeholder Engagement

PROGRAM MANAGEMENT

• Strategically sourced commercial lodging pilot at 5 pilot locations – JFTR/JTR Changes – DTS modifications

pending funds – Third party vendor – Congressional notification – Customer feedback – Launch: Jan 2015

• Long term lodging being reviewed for incorporation

COMMERCIAL TRANSIENT/ LONG-TERM LODGING

DTS/DEFENSE LODGING SYSTEM INTERFACE

GROUP LODGING

• Establish the capability to book DoD Lodging in DTS

• Determining potential cost savings/process efficiencies in enterprise-wide management of group lodging

• Established sub-working group

• Estimated timeline to completion is December 2014

DEFENSE LODGING COUNCIL

Currently, 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 Changes

• Established a new title 37, Chapter 8 – Travel and Transportation Allowances, to implement 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/Joint Travel Regulations policy requiring travelers to book commercial lodging through DTS and stay in preferred hotels at the pilot sites

NDAA 2012

• Would permit the Secretary of Defense to direct the use of adequate government quarters for civilians employees or the use of government-leased quarters or lodging arranged through a government program by civilian employees and Uniformed Service members

President’s FY15 Budget Proposal

• Regulatory change in coordination to limit travelers to 75% of per diem for stays of 31 to 179 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-case

basis

Per Diem Travel and Transportation

Allowance Committee entitlement changes for long term lodging

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