By memorandum dated October 20, 1997, we advised that travel agency surcharges may not be paid by State agencies. Some State agencies and travel agencies have expressed concern that a total prohibition against payment of the surcharges may result in less services or poorer quality services. In order to ensure that State agencies obtain necessary travel agency services while not unnecessarily paying the surcharge, pricing and services information should be obtained from multiple travel agencies. If the State agency finds that the best proposal, from a pricing and services standpoint, requires the payment of the surcharge, the additional charge may be paid. State agencies should be prepared to document that reasonable steps were taken to ensure that the best business case was selected. Some State agencies have requested written proposals of prices and services from travel agencies. If additional information is needed, please contact Cheri Greene at (850) 414-7861 (Suncom 994-7861) or Sharon Schrader at (850) 414-7835 (Suncom 994-7835).