Guidance when using Other Direct Costs (ODCs) in support of a

Guidance when using Other Direct Costs (ODCs)

in support of a Conference Event or Trade Show

The Professional Services Schedule, offer GSA customers an array of services related

to planning, coordinating, and implementing superior conference events or trade shows

in support of mission requirements. Despite diverse offerings identified under SIN C541

4D, Conference Planning, GSA realizes the value add in facilitating a means, through

Other Direct Costs (ODC), that enable our federal customers to tailor these types of

events. This document further clarifies guidance regarding Other Direct Costs (ODCs) in

support of Conference Event or Trade Shows.

Prior to placing a Task Order under SIN C541 4D, Conference Events and Tradeshow

Planning Services, for an Event in conjunction with services being provided under SIN

C541 5, Integrated Marketing Services, the following information should be considered:

1. If the intent of the order is to have all “Other Direct Costs” (ODC’s) inclusive in

the contract, ensure that all contractors being issued the RFQ have also been

awarded “Other Direct Cost” SIN 541 1000.

2. If the contractor has not been awarded the “Other Direct Cost” SIN associated

with the Professional Services Schedule, understand that all “Other Direct Costs”

associated with the event must be issued as “Open Market” items in accordance

with FAR 8.402(f). If ODC’s are being awarded under the contract, the following

guidance is applicable:

a. Other Direct Costs (ODCs) are expenses other than the direct labor hours

listed in the vendor’s pricelist. All ODCs proposed must be directly

related to a service being offered under the Professional Services

Schedule and can only be purchased in conjunction with the Schedule

service. Possible ODCs may include, but are not limited to items such as

audio/visual equipment, facility rental, commercial production, media

costs, booth space rental, etc.

b. All ODC’s are established at ceiling amounts on the contract and may only

be increased through contract modification. As long as the contractor

quotes a price for the ODC that is less-than, or equal-to the ceiling price

listed, the cost is allowable under the contract. The approved ODC’s on

the Schedule contract are supported with either an invoice or a quote

from a third-party provider. GSA normally approves the highest priced

verified invoice amount as the ceiling amount. This provides the greatest

flexibility for our vendors to meet diverse federal agency requirements.

Please note that our expectation is that our federal customer experts

procuring these services will evaluate each ODC for appropriateness and

reasonableness in performance of your task order. The actual cost for

the ODC in most instances will fall below the approved ceiling amount.

c. If the needed ODC falls outside of the ceiling amount on the contractor’s

Schedule contract, the contractor has the ability to modify the contract

and raise the ceiling amount based upon a quote from their provider to

fulfill your need.

d. If an ODC is needed that is not currently listed on their Schedule

Contract, the contractor has the ability to modify the contract and add

the ODC to their contract to fulfill your need.

e. In general, government funds may not be used to purchase meals or

refreshments for government employees or others. There are

exceptions to this general rule, such as:

● When employees are attending a bona fide awards ceremony

authorized under the Government Employees Incentive Awards

Act (5 United States Code [USC]. §§ 4501 -4509), light

refreshments may be provided to enhance the ceremony.

● When employees are attending a cultural awareness program,

light refreshments consisting of samples of ethnic foods may be

served for the purpose of promoting Equal Employment Office

(EEO) objectives by increasing employee appreciation for the

cultural heritage of ethnic groups.

● When employees are on official travel –

○ The cost of meals may be reimbursed as authorized by the

Federal Travel Regulation (FTR), 41 Code of Federal

Regulations (CFR) Chapters 300 and 301, and

○ The cost of light refreshments for employees at a

government-sponsored conference may be paid with

agency funds as authorized by Part 301-74.11 of the CFR

● When employees are attending training under the Government

Employee's Training Act (GETA) (conducted either by the

government or a non-governmental organization) that meets the

definition of training set out in 5 U.S.C. § 4101(4), meals or

refreshments may be paid for by the government if –

○ The meals or refreshments are incidental to the training; and

○ Attendance of the employees at the meals is necessary in

order to obtain the full benefit of the training; and

○ Employees are not free to take the meals elsewhere

without being absent from essential formal training

sessions.

● When employees are attending a formal meeting or conference that

is authorized under 5 USC § 4110 (i.e., a meeting or conference

that is related to official business, but does not meet the definition

of "training") meals or refreshments may be paid for by the agency

if –

○ If the meeting or conference is sponsored by a non-

government organization, and if a single fee is charged

covering both attendance at the conference and meals and

refreshments, and no separate charge is made for meals or

refreshments; or

○ if the meeting or conference is sponsored by a Federal

entity or if it is sponsored by a non-government organization

and a separate charge is made for meals, the agency may

pay for the meals and refreshments if –

■ The meals and refreshments are incidental to

the meeting or conference;

■ Attendance at the meals or when refreshments are

served is important to ensure the employees' full

participation in the meeting or conference; and

■ The meals or refreshments are part of a formal

meeting or conference that includes not just the meals

and refreshments and discussions or speeches that

may take place when they are served, but also

substantial functions separate from when the food is

served.

It should be noted that if employees are on official travel to attend training or a formal

meeting or conference, and meals are furnished at a nominal or no cost to the

employees or are included within the registration fee, the per diem allowance for meals

and incidental expenses must be adjusted in accordance with the FTR at 41 CFR 301-

11.18.

If you have any questions about the use of agency funds for meals or refreshments,

please contact your servicing legal office.