DoD Announces Award to Reform its Travel System
The Department of Defense announced the selection of SAP Concur to develop a business travel system prototype that will replace the aging and inefficient Defense Travel System. The department’s $9.3 million Other Transaction Authority award would exponentially lower the cost of airline tickets and save more than 10 million labor hours annually spent on the process of booking travel by more than 2 million active duty, reserve, and civilian personnel.
The Department of Defense spends $9 billion annually on travel, with temporary duty travel comprising approximately 70 percent of all department travel vouchers. The department, through this Other Transaction Authority, will leverage its recently simplified and rewritten Joint Travel Regulations, mandate the use of lower-cost non-refundable airline tickets in markets without pre-negotiated fares, and launch a prototype capability to adopt commercially-available travel processes using information technology solutions. In addition to reducing overall costs, the new capability must reduce process and workflow complexity, decreasing the time and effort spent by travelers, authorizing officials, and administrators planning travel and reimbursing travel expenses. It must also meet the department’s audit readiness requirements, improve customer satisfaction, and align to commercial/industry best practices.
“We have a responsibility to ensure our resources are used in the most efficient and effective manner, and given this specific project has such a wide ranging and deep impact – reforms with results like these are crucial,” said Chief Management Officer John H. Gibson. “I’m proud of the work we’re executing through the Reform Management Group and initiatives like this from the Information Technology Reform Team.”
SAP Concur is a non-traditional defense contractor that provides integrated travel and expense management services and solutions. The award to the SAP Concur team, that also includes Accenture Federal Services, Booz Allen Hamilton and CWTSato Travel, will deliver an end-to-end travel-as-a-service capability that is expected to reduce the overall cost of travel and empower Department of Defense travelers and authorizing officials to make travel decisions that benefit their organizations. SAP Concur is expected to complete the business travel prototype within 24 months.