In total, the U.S. federal government is the largest buyer of travel in the world. And so, when a portion of the government goes unfunded and hundreds of thousands of civilian employees are furloughed or working without pay, a negative impact on suppliers and intermediaries that serve federal travel programs is expected.
The U.S. General Services Administration confirmed that 30 of the more than 90 eligible federal agencies and bureaus have signed vendor task orders for the next-generation E-Gov Travel Service travel management system. Each of the 30 has signed with Concur, though CWTSatoTravel has secured multiple extensions for its first-generation system.
The U.S. General Services Administration confirmed that Concur has addressed "all major concerns" regarding its second-generation E-Gov Travel Service implementation. Concur, which at first won exclusive rights to service the $1.4 billion, 15-year ETS2 contract but now is sharing it with CWTSatoTravel, has secured 26 task orders representing "62 agencies, components, bureaus and commissions," according to a GSA.
The U.S. General Services Administration expects by July to finish a court-mandated reevaluation of its decision to award Concur the full 15-year contract for its second-generation E-Gov Travel Service, according to officials from GSA and CWTSatoTravel. Both CWTSatoTravel and Concur had been expected to win rights to bid on federal agency business under the GSA program.
A U.S. Court of Federal Claims judge this week ordered the U.S. General Services Administration "to conduct a reevaluation" of Carlson Wagonlit Travel's bid to serve as a contractor for the second-generation E-Gov Travel Service contract, awarded exclusively to Concur last May.
The U.S. General Services Administration has awarded Carlson Wagonlit Travel a piece of its second-generation E-Gov Travel Service contract. The award followed a court-ordered reevaluation of CWT's bid and reversed a once-steadfast GSA position to maintain Concur as the sole contractor.
CWTSatoTravel on June 15 filed a protest with the U.S. Government Accountability Office over the U.S. General Services Administration's decision, announced June 4, to select Concur as the sole provider of booking and expense management technology to civilian federal agencies as part of the next-generation e-Gov Travel Service initiative.
The U.S. General Services Administration aims this summer to be the first federal agency to deploy the ETS2 end-to-end system for which it selected Concur as primary contractor, according to AdTrav president and CEO Roger Hale.
The U.S. General Services Administration in April will award its e-Gov Travel Service 2.0 contract in parts to Concur and CWTSatoTravel/Northrop Grumman, according to BMO Capital Markets analysts Karl Keirstead and Shateel Alam.
Following "exceptionally strong" March quarter results, Concur raised its near-term guidance for revenue, operating margin, earnings and cash flow, including an expectation for revenue growth of 25.5 percent in the current quarter. Concur on Wednesday reported March quarter revenue of $108.4 million, which at 28 percent higher than a year earlier represented the company's "highest year-over-year growth rate since the beginning of the recession," CFO Frank Pelzer told analysts during a conference call.
One of the hottest issues in travel management: who will become the dominant aggregator of data, and therefore primary intermediary, for the corporate client?