Standard Mileage Rate Goes Up a Penny for 2018

The General Services Administration (GSA) just published the 2018 Privately Owned Vehicle (POV) Mileage Reimbursement Rates. Although it applies to Government workers, most contractors have adopted the GSA rates as a matter of convenience. Although there is nothing in the FAR cost principles that requires Government to utilize the GSA mileage rates, there is no logical reason for not following the GSA standards - who would want to go through the effort of developing their own set of rates and then have them subjected to some kind of audit? We should note that while FAR does not apply the GSA rates to contractors, sometimes individual contracts will invoke such a requirement (e.g. DOE contracts).

So the rate for calendar year 2018 is 54.5 cents per mile, up from 53.5 cents per mile in calendar year 2017. The following schedule shows how the rate has trended the past few years.

GSA also published rates for airplanes, motorcycles, and POVs used for relocation purposes. You can see all the latest rates at the GSA website should you need those rates.

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.

Standard Automobile Mileage Rates for 2012

The IRS standard mileage rate for 2012 remains at 55.5 cents per mile - the same as the last six months of 2011. The standard GSA (General Services Administration) mileage rate for 2012 remains at 51 cents per mile, the same as 2011. Concerning the difference in the rates, GSA stated:

The IRS recently announced its standard automobile mileage rate of 55.5 cents will not change effective January 1, 2012. Although the results of our internal evaluation indicate no change in the Federal privately owned automobile, airplane and motorcycle mileage rates beginning January 1, 2012, we will continue to monitor the fuel costs and will adjust these rates if warranted. Any adjustments will be posted in the Federal Register and on this web site. Note: IRS and GSA do NOT necessarily have the same rate.

This distinction is important for contractors who have tied their reimbursement policies into one or the other's rates. See our posting from last July for more information as to why this distinction is important.