Thursday, January 7, 2016

Privately Owned Vehicle (POV) Mileage Rates Drop

This is just a reminder that the standard mileage rates for 2016 have dropped to $0.54 per mile from last year's $0.575 per mile. The 2016 is the same whether contractors are following the GSA (General Services Administration) benchmark or the IRS benchmark. Both are set at $0.54 per mile. That has not always been the case however. There have been situations where the rates are slightly different.

FAR does not specify that contractors follow a particular guideline - only that costs (reimbursements) be reasonable. For convenience and because no auditor will question the rate, contractors usually choose one or the other.

Click here for more information on the GSA reimbursable mileage rate.

Click here for more information on the IRS standard mileage rate.

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