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5/7/2014 1
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
3
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
4
5
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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