Letter to Ray Mabus, Secretary of the Navy - Regarding the Long-Term Temporary Duty (TDY) Flat Rate Per Diem Policy for Public Shipyard Employees

Letter

Dear Secretary Mabus,

As you know, our public shipyard workers play an essential role in maintaining the safety and combat readiness of our fleet. In order to fulfill this mission that is so central to our economic and national security interests, public shipyard employees often are required to travel on long-term temporary duty (TDY) to other shipyards. When the Navy asks public shipyard employees to travel for weeks away from their homes to another shipyard on official travel, these skilled workers have a right to expect that they will receive full compensation and not be encumbered with administrative requirements that are time-consuming, counterproductive, and detrimental to the mission.

As you know, on January 19, 2016, Admiral William Hilarides, then-Commander of Naval Sea Systems Command (NAVSEA) wrote a letter to Mr. Anthony Kurta, the Per Diem, Travel and Transportation Allowance Committee Charter Chair (PDTATAC). The letter requested a change to the Joint Travel Regulation (JTR) regarding the long-term TDY flat rate per diem policy for public shipyard employees traveling to conduct maintenance. Admiral Hilarides wrote that the new policy "has already had a negative impact on the Naval Shipyards' ability to effectively and efficiently conduct Navy ship maintenance." He also said that the policy "has the potential to increase the end cost of projects." On April 5, 2016, Admiral Hilarides reiterated his concerns in testimony before the Senate Armed Services Readiness and Management Support Subcommittee that I chair. On March 15, 2016, the then-Vice Chief of Naval Operations also expressed concern about the long-term TDY policy and its impact on public shipyard workers.

In addition to this letter and the associated testimony, I have also heard repeated concerns from my constituents at Portsmouth Naval Shipyard. As a result, I have led efforts in the Senate to change the law and ensure that public shipyard employees traveling on long-term TDY to conduct maintenance receive the full per diem rate. After introducing S.2749, I worked with my colleagues to include language in the Senate Armed Services Committee (SASC) and Senate-passed versions of the Fiscal Year (FY) 2017 National Defense Authorization Act (NDAA) that would permit you to waive the reduced rate and pay public shipyard workers on long-term TDY the full per diem rate.

I would like to highlight specific excerpts of that provision. Section 1151 of the Senate-passed NDAA would not only permit you to pay public shipyard employees on long-term TDY the full per diem rate, but it would also allow you to waive any requirement for the collection of receipts if it is certified that "requiring such travelers to submit receipts for that purpose will negatively affect mission performance, create an undue administrative burden, or result in significant additional administrative processing costs..." While I have advocated for a full repeal of the Department of Defense's (DoD) reduced long-term TDY rates, at a minimum, I am hopeful that the final NDAA will at least include a provision similar to Section 1151.

As I have worked to change the law and ensure our shipyard workers receive the full per diem rate they deserve, I understand that the Navy and DoD have reexamined the long-term TDY policy as well. I appreciate the Navy's willingness to be responsive to Congressional concerns and to act proactively before the law is changed. I understand that the PDTATAC approved a permanent change to the JTR that permits the Navy to waive the reduced meals and incidental expenses (M&IE) portion of per diem. I also understand this policy was effective as of May 11, 2016, for public shipyard civilians. However, the Navy confirmed for my office this week that the implementation of these changes has not yet occurred at the public shipyards. The Navy also informed my office that the service is finalizing guidance and instructions for implementing these changes, including guidance related to any requirement for public shipyard workers on long-term TDY to submit receipts in order to receive the full per diem rate.

In light of this, I would like to point out the following excerpt from SASC's Report on the FY 2017 NDAA (114-255). The Committee unambiguously stated its understanding and expectation that "naval shipyard employees traveling on long term TDY in support of off-yard work would not be subject to the reduced TDY rate and would not be required to submit receipts in order to receive the full per diem rate if so certified by such commander in accordance with the provision."

I am pleased that the Navy has adopted a policy that will permit public shipyard workers traveling on long-term TDY to receive the full per diem rate, but I want to reiterate SASC's and my position that they should not be required to submit receipts to receive the full per diem rate. While on long-term TDY, my constituents from Portsmouth Naval Shipyard often work 10-12 hour days, six days a week. Requiring these workers to keep receipts for every meal over several months is both unnecessary and overly-burdensome. Such a policy certainly would "negatively affect mission performance, create an undue administrative burden, or result in significant additional administrative processing costs."

Therefore, as the Navy finalizes its guidance and instructions, I urge you to respect the Senate Armed Services Committee's explicit position and not require public shipyard employees traveling on long-term TDY to submit receipts in order to receive the full per diem rate. If the Navy chooses to do otherwise, I will work to ensure the law requires the Navy's compliance.

I look forward to your response. Thank you for your distinguished service to our country.

Sincerely,

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