Defense contractor to develop a business travel prototype

The Department of Defense (DoD) recently selected defense contractor SAP Concur to develop a business travel system prototype to replace the aging Defense Travel System.

Annually, the DoD spends $9 billion on travel. Approximately 70 percent of all department travel vouchers is temporary duty travel.

The $9.3 million Other Transaction Authority – the term used to refer to the authority of the DoD to carry out specific prototype projects – is expected to lower airline ticket costs and save more than 10 million labor hours annually spent booking travel by the more than 2 million active duty, reserve, and civilian personnel.

“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,” John Gibson, DoD chief management officer, said.

The prototype must have the capability to adopt commercially-available travel processes using information technology solutions. The system must use lower-cost non-refundable airline tickets in markets without pre-negotiated fares.

It also must also align to commercial and industry best practices, improve customer satisfaction, meet the department’s audit readiness requirements, and reduce process and workflow complexity.

The prototype is expected to be completed within 24 months.