Educational Institutions are not subject to the Federal Civilian Employee and Contractor Travel Expense Act of 1985 (Pub. L. 99-234) at this time. The most recent amendment to the Federal Register on travel costs amended FAR 31.109(h)(8) and 31.205-46(a) which are not applicable to educational institutions. To date, neither (FAR 31.3 nor OMB A-21) of the applicable government regulations governing educational institutions have been modified. Under FAR 31.303(b) "Agencies are not expected to place additional restrictions on individual items of cost".
On November 17, 1988 the President signed P. L. 100-679. This legislation exempts universities from the restrictions on contractor travel expenses by all federal employees and contractors. Section 12 reads "(b)(1) The provisions....shall not apply to any agreement between an executive agency and a state institution, or an executive agency and a nonprofit institution, entered into for the purpose for conducting federally sponsored research and related activities".
Costs incurred for travel, including lodging and other subsistence, will be considered reasonable and allowable to the extent that they do not exceed charges normally allowed by the University in its regular operations according to institutional policy. In the absence on institutional policy, the GSA rates shall apply.