Government Contracts Permit Extra $5 Per-Day Fee

ALEXANDRIA, Va. -- The U.S. federal government's newly revised car rental contract grants operators the authority to charge a $5 per-day administrative fee.

Dubbed GARS, an acronym for "government administrative rate supplement," the fee is intended to offset costs associated with doing business with the government. These costs include making rentals available to government employees under 25, authorizing additional drivers, and guaranteeing maximum rates for at least 60 days. All government renters must pay the fee, which will be listed as a separate item on rental contracts.

The federal government's car rental agreement program is managed by the Military Traffic Management Command, based in Alexandria, Va. Rental car operators have praised the policy change to implement GARS.

"Payless Car Rental has been a participant in the U.S. Government car rental agreement for many years," said Kathy Johnson, vice president of relationship management for Payless Car Rental. "We are very pleased to find them receptive to the needs of our industry, as evidenced by the new agreement allowing car rental agencies to recover a portion of their operating costs."

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