OMB Circular A-126

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Gulfstream Aerospace C-37A, the military designation of the Gulfstream V, parked at Luxembourg Gulfstream Aerospace C-37A Gulfstream V (G-V), USA - Air Force AN0786861.jpg
Gulfstream Aerospace C-37A, the military designation of the Gulfstream V, parked at Luxembourg

OMB Circular A-126, revised May 22, 1992, is a Government circular that introduces standards and policies to minimize the cost and improve the management and use of United States Government aircraft. Specifically, OMB Circular A-126 addresses the acquisition, management, usage, cost accounting, and disposal of government aircraft.

Contents

All policies presented by this circular apply to Executive Agencies, with special policy covering the travel by senior officials or non-Federal travelers on government aircraft that is government-owned, leased, chartered or rented and any related services that apply. The only exceptions are aircraft that is in use by or in support of the President or Vice President of the United States

The Office of Management and Budget was created in 1921 under the authority of the Budget and Accounting Act, revised in 1950 as the Budget and Accounting Procedures Act; again in 1970 as Reorganization Plan No. 2; as Executive Order 11541 and 31 U.S.C.   § 1344.

Use and travel on government aircraft

Note: The sections below are intended only as a summary of government aircraft use policy. For specific concerns or questions about official government flight policy, refer to the official circular at the Office of Management and Budget [1]

As stated in the circular, government aircraft are to be used for "defined official purposes", which is restricted to three categories: [2] [3]

  1. "[T]ravel to meet mission requirements" i.e., travel to discharge an agency's official responsibilities
  2. "[R]equired use travel" i.e., government aircraft are required to meet "bona fide communications or security needs" or as dictated by "exceptional scheduling requirements"
  3. "[O]ther travel for the conduct of agency business"

There are outlined specifics that define "official travel" that must meet these specific criteria: [4]

Cost and reimbursement

The following conditions are not considered official business and require reimbursement to the government: [5]

The government is reimbursed for the cost or portion of the "full coach fare" applicable to the time not spent on required use travel. [5] The "full coach fare" is defined as the cost of a ticket on a commercial airline available to the general public between the time the travel was planned and the day the travel was taken. [2] For political travel, other laws and regulations may apply that require reimbursement in an amount greater than the "full coach fare". [5]

Approval and documentation for government travel

Typically only an agency head or officials that are designated by the agency head may approve the use of agency aircraft, but government aircraft may also be used when it is also designated to transport senior Federal officials, members of their families or other non-Federal travelers on a "space available" basis but only when a written certification is presented by the agency. This certification must show that the mission activity is bona fide and that the minimum mission requirements are not surpassed to transport the additional travelers not required for official business. In emergency situations, this certification may be produced after-the-fact. [6]

At a minimum, those individuals appointed by the agency head must be one organizational level above the person(s) traveling. If this is not possible, then another appropriate approval is required. [7]

Travel requests must also be approved in advance and in writing. This approval must be done on a trip-by-trip basis from the agency's senior legal official or their principal deputy. There are two exceptions: [7]

All use of government aircraft by agencies must be reported semi-annually to the General Services Administration (GSA). These reports must be formatted within GSA standards and must list the following information for trips taken during the preceding six-month period: [6]

In addition to the GSA, summary data of these reports must also be submitted semi-annually to the OMB in the same format. The exception to this rule are any classified trips, which then must be maintained by the agency and be made available for review under authorization. [6]

For all uses of federal aircraft, the following documentation must be retained for a minimum of two years: [8]

Eligibility

Status as a federal employee does not automatically result in authorization for use of government aircraft. There are three categories of people who require advance authorization in writing: [6]

All authorizations must conform to the same policies as authorized agency travel.

In this circular, the term 'Senior Official' is defined by anyone employed by an Executive or independent agency at a payrate of Level I of the Executive Schedule or employed in the Executive Office of the President at a payrate of Level II of the Executive Schedule (5 U.S.C.   §§ 5311 – 5318). [2] Simply put, a 'Senior Official' is anyone who meets the criteria as being employed and paid at a rate equal to or greater than the basic pay equivalent to a member of the Senior Executive Service (5 U.S.C.   § 5382).

Active duty military officers are exempted from this definition. [2]

Audit responsibility

All agency officials with the statutory authority to procure aircraft must ensure that their policies and procedures comply with the requirements of OMB Circular A-76, and that those programs comply with the internal control requirements of OMB Circular A-123. Any material weaknesses must be reported to the President and the United States Congress. [9]

The development of policies and procedures must be done in cooperation with the GSA. If the agency does not have systems that conform to these policies, a period of one year from the date of issuance of GSA standards is given to implement those systems. [9]

Accounting

Those systems which are implemented that conform to GSA standards must permit justification of use of government aircraft services and the determination of usage over commercial or alternative government aircraft; recovery of operation costs of the aircraft; the cost-effectiveness of their aircraft program; and cost-comparison to justify in-house operation of government aircraft in accordance with OMB Circular A-76. [10]

History

Use by Speaker of the House

Since the September 11, 2001 attacks, air transportation security has become a major issue for all aspects of American culture, including government transportation. Because of concerns for safety of elected government officials, the Speaker of the House—next in line behind the Vice President in the order of succession—has been granted use of military planes for secure travel services. [11]

Nancy Pelosi

In February 2007, a controversy arose regarding the capability of aircraft for travel requested by newly elected House Speaker Nancy Pelosi (D-CA). The previous speaker, Rep. Dennis Hastert (R-IL), flew in a C-20 which is a modified version of a Gulfstream III. Pelosi requested an upgrade from this plane, which is incapable of flying non-stop the required 2,800+ miles to Pelosi's home district of San Francisco, California. [11]

There was some question as to whether or not Pelosi's friends and associates would be allowed to travel with her, and that further consultation with the Air Force, and Department of Defense would be required. [11]

Trump administration

After a number of news articles detailing the cost of flights on charter and government-owned aircraft, Senator Chuck Grassley (R-IA) sent a letter to the Trump administration, questioning recent travel by Secretary of Health and Human Services Tom Price, Treasury Secretary Steven Mnuchin, and EPA Administrator Scott Pruitt. [12] Other administration officials named as having recently taken charter, military, or private aircraft were Interior Secretary Ryan Zinke and Veterans Affairs Secretary David Shulkin. [13] The acting chief of the Office of Government Ethics, David J. Apol, issued a letter to agency heads asking them to ensure their actions are "motivated by the public good and not by personal interests." [14]

Tom Price

In a series of reports starting in September 2017, Politico reported that since May 2017, Price had expended more than $1 million of Department funds for travel on private charter jets and military aircraft. [15] Many of the flights were between cities that are easily accessible by train or car and have frequent, low-cost commercial airline service. [16] [17]

The reports from Politico sparked a larger inquiry into the use of private planes by Trump administration officials. The House Oversight Committee started a bipartisan investigation led by Representatives Trey Gowdy (R-SC) and Elijah Cummings (D-MD) of all use of private and government-owned planes by non-elected government officials of the Executive Branch on September 26, citing 5 U.S.C.   § 5733, which states "The travel of an employee shall be by the most expeditious means of transportation practicable and shall be commensurate with the nature and purpose of the duties of the employee requiring such travel." [18] [19] Senator Grassley's letter to the White House asked to "detail what steps the administration has taken to ensure that cabinet secretaries use the most fiscally responsible travel in accordance with the public trust they hold and the spirit and letter of all laws, regulations, and policies that apply." [20] [12]

Price vowed to pay back $52,000, the cost of his share of travel that was "approved through the normal process". [21] On September 29, Price resigned following what reporters called "an optics nightmare" for "the appearance of a millionaire Cabinet secretary flying routes easily navigated by far cheaper means." [22]

Steven Mnuchin

After his wife, Louise Linton, posted a controversial photograph on August 21, 2017, to Instagram showing her deplaning a government jet in Kentucky, the Treasury Department's Office of the Inspector General (OIG) opened up an inquiry into Mnuchin's use of government aircraft. [23] Mnuchin reimbursed the government for Linton's travel to Kentucky. [24] According to the OIG's review, the total cost of the operating the Gulfstream C-37B to Louisville and Fort Knox was $26,900. The reimbursement of Linton's cost of travel was $595.90, [25] as the typical reimbursement paid by requesting federal executive agencies only covers the cost of an equivalent coach ticket on a commercial flight. [26]

The OIG released its report on October 4, 2017, concluding that there was "no violation of law in these requests and uses" of government aircraft by Mnuchin, but also expressing concern regarding "a disconnect between the standard of proof called for in the Daley memo and the actual amount of proof provided by Treasury and accepted by the White House in justifying these trip requests". [27] The referenced Daley Memo was issued by then-White House Chief of Staff William M. Daley on April 4, 2011, and it stated the standards for use of government aircraft by senior executive branch officials were given in OMB Circular A-126, dated February 10, 1993. The Daley Memo also states that travel using military aircraft must be considered a White House Support Mission, taken at the specific direction of the President under one of a set of limited circumstances that "make commercial transportation unacceptable". [27]

In the report, the OIG reviewed nine travel requests by Mnuchin for military air transportation since March 2017, of which seven were approved and taken, one was withdrawn, and one was approved with travel pending in late October 2017. [27] The total cost of the seven trips taken was $811,800, calculated from per-hour cost and operating hours for the specific aircraft, or Air Force-provided direct costs of operations. [25] [28]

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References

  1. ↑ "Circular No. A-126 Revised". Office of Management and Budget. 22 May 1992. Retrieved 10 October 2017.
  2. 1 2 3 4 OMB Circular A-126, Section 5: Definitions (22 May 1992)
  3. ↑ OMB Circular A-126, Section 7: Use of Government Aircraft (22 May 1992)
  4. ↑ OMB Circular A-126, Section 8: Travel on Government Aircraft (22 May 1992)
  5. 1 2 3 OMB Circular A-126, Section 9: Reimbursement for Use of Government Aircraft (22 May 1992)
  6. 1 2 3 4 OMB Circular A-126, Section 10: Approving the Use of Government Aircraft (22 May 1992)
  7. 1 2 OMB Circular A-126, Section 11: Approving Travel on Government Aircraft (22 May 1992)
  8. ↑ OMB Circular A-126, Section 12: Documenting the Use of Government Aircraft (22 May 1992)
  9. 1 2 OMB Circular A-126, Section 13: Responsibilities (22 May 1992)
  10. ↑ OMB Circular A-126, Section 14: Accounting for Aircraft Costs (22 May 1992)
  11. 1 2 3 Tapper, Jake (February 8, 2007). "Pelosi Seeks Upgrade for Government-Provided Plane". Go.com. ABC News. Retrieved March 2, 2007.
  12. 1 2 Grassley, Charles E. (September 28, 2017). "Price Cabinet Travel" (PDF). Letter to President Donald J. Trump. Office of Senator Charles E. Grassley. Retrieved 29 September 2017.
  13. ↑ Treene, Alayna (29 September 2017). "The Trump officials caught spluging on luxury travel". Axios. Retrieved 10 October 2017.
  14. ↑ Rein, Lisa; Hamburger, Tom (10 October 2017). "In scolding letter, ethics chief tells agency heads to ask themselves 'Should I do it?' not 'Can I do it?'". The Washington Post. Retrieved 11 October 2017.
  15. ↑ Pradhan, Rachana; Diamond, Dan. "Price took military jets to Europe, Asia for over $500K". POLITICO. Retrieved 2017-09-29.
  16. ↑ Pradhan, Rachana; Diamond, Dan (September 21, 2017). "Price traveled by private plane at least 24 times". Politico. Retrieved September 25, 2017.
  17. ↑ Diamond, Dan; Pradhan, Rachana (September 19, 2017). "Price's private-jet travel breaks precedent". Politico. Retrieved September 25, 2017.
  18. ↑ "Gowdy, Cummings investigate federal agency travel" (Press release). House Oversight Committee. 27 September 2017. Retrieved 29 September 2017.
  19. ↑ "Travel of non-elected officials in the Executive Office of the President" (PDF). Letter to General John F. Kelly. House of Representatives, Committee on Oversight and Government Reform. 26 September 2017. Retrieved 29 September 2017.CS1 maint: others (link)
  20. ↑ Pradhan, Rachana (28 September 2017). "Price says he'll repay taxpayers for his private jet travel". Politico. Retrieved 29 September 2017.
  21. ↑ Tatum, Sophie; Marsh, Rene (29 September 2017). "Price vows reimbursement for flights 'approved through the normal process'". CNN. Retrieved 10 October 2017.
  22. ↑ Liptak, Kevin; Green, Miranda (29 September 2017). "Price out as HHS secretary after private plane scandal". CNN. Retrieved 10 October 2017.
  23. ↑ Harwell, Drew (31 August 2017). "Treasury inspector general to review Mnuchin's flight to Fort Knox". The Washington Post. Retrieved 25 September 2017.
  24. ↑ Bennett, Kate (September 5, 2017). "Louise Linton: 'I see the irony of making an apology in a ball gown'". CNN. Retrieved 25 September 2017.
  25. 1 2 Horowitz, Julia (5 October 2017). "The 7 trips Steven Mnuchin took on government planes for $811,800". CNN Money. Retrieved 5 October 2017.
  26. ↑ Fishel, Justin; McLaughlin, Elizabeth (22 September 2017). "Mnuchin's travel: Investigators now probing another costly government flight". ABC News. Retrieved 25 September 2017.
  27. 1 2 3 Delmar, Rich (4 October 2017). "Memorandum: Inquiry Re Use of Government Aircraft by Secretary Mnuchin". Letter to Inspector General Thornton. Department of the Treasury. Archived from the original on 6 October 2017. Retrieved 5 October 2017.
  28. ↑ Rappeport, Alan (5 October 2017). "Seven Flights for $800,000: Mnuchin's Travel on Military Jets". The New York Times. Retrieved 5 October 2017.
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