1. Kimberly Lanfersieck August 2011

2. Travel Policy  Purpose Cost effective management of travel expenses Identify reimbursable vs non-reimbursable expenses Clarify employee responsibility for controlling and reporting travel expenditures  Scope and Applicability All KES employees Consultants Interviewees

3. Responsibilities  Supervisors and Program Managers Travelers are fully aware of KES, Inc travel policies and procedures Approving only reasonable and necessary expenses  Travelers Obtain official authorization prior to incurring any travel expenses. Exercise good judgment and reasonable discretion in spending. Submittal expense reimbursement reports timely and accurately in accordance with travel policy

4. Definitions  Allowable Costs: Costs that can be allocated to or reimbursed by the U.S. government, by law, applicable procurement regulations, agreements with the contracting officer or the terms of individual contracts.  Business Meals: Meals with non-U.S. Government clients, prospects or business associates during which a business discussion takes place.  Business Meal Receipt: Original receipt with beverage & meal breakdown for each item purchased.  Cost and Expense: For purposes of this policy, these terms are synonymous.  Direct Costs: Costs that are charged directly to a contract.  Domestic Travel: Travel within the United States and Puerto Rico.  High-Risk-Area Travel (HRA): Any travel to a destination designated as a high-risk area.  Indirect Costs: Costs that are charged to an intermediate collection point, such as an overhead or general and administrative (G&A) pool, prior to allocation to a contract.  International Travel: Non-domestic travel.  Mileage Reimbursement: A set rate per mile, established by the IRS,based on gasoline and oil, depreciation of original vehicle cost, maintenance, accessories, parts, tires, insurance, State and Federal taxes.  Reimbursable Expenses: Those expenses that the company chooses to reimburse to an employee for business-related out-of-pocket expenses. Reimbursable expenses might be allowable or unallowable, depending on the nature and circumstances involving the particular cost.  Travel Plan Approval Request: The document by which travel is authorized.  Travel Expense Report: The document used to reimburse authorized traveler.  Unallowable Costs: Costs that cannot be allocated to or reimbursed by the U.S. government, by law, applicable procurement regulations, agreements with the contracting officer, or the terms of individual contracts.

5. New Government Regulations FAR 31.205-46 Airfare costs in excess of the lowest priced airfare available to the contractor during normal business hours are unallowable except when such accommodations require circuitous routing, require travel during unreasonable hours, excessively prolong travel, result in increased cost that would offset transportation savings, are not reasonably adequate for the physical or medical needs of the traveler, or are not reasonably available to meet mission requirements. However, in order for airfare costs in excess of the above airfare to be allowable, the applicable condition(s) set forth above must be documented and justified.

6. Airfare  Exceptions Excessive time for connections ○ 2 or more connecting flights Physical/Medical reasons Only flight available to meet schedule  Unallowable Fees Early boarding Increase leg room / Aisle seat First class / Business class fares

7. International Travel  Must be covered under Defense Base Act Insurance Notify Director of Human Resources (Erica) 3 weeks prior to departure  Fly America Act Requires the use of U.S. flag air carriers  Business Class Authorized for trips in excess of 14 hours

8. Rental Cars  Intermediate Class  Exceptions Unavailability (third-party documentation is required Multiple travelers in a single car Excessive load requirements Physical/Medical needs supported by a written statement from employee’s Doctor

9. Rental Car cont.  Insurance Domestic-Liability insurance and physical damage is covered by our corporate insurance policy on vehicle rentals. Please decline additional insurance. International-Must purchase liability insurance.  Accident Reporting Report any accident or damage within 24 hours to Director of Administration & Finance  Refuel rental car prior to returning to avoid excessive gasoline charges.

10. Lodging, Meals and Incidentals  Lodging Reimbursed at actual expenses up to US Govt per diem rate (Domestic doesn’t include taxes). Pre approval required for any expense over per diem rate – Must be documented and justified.  Meals Reimbursed based on per diem rate First and last day ~ 75% of meal per diem No receipts required

11. Business Meals  Those meals with non-U.S. government clients, prospects, or business associates during which a business discussion takes place Know your per diem rates Meals for U.S. Government clients are NOT allowed and WILL NOT be reimbursed. Original detailed receipt required Document ○ Client name and title ○ Company name ○ Meeting purpose and benefit

12. Incidentals  Gratuities for skycaps, bellmen and housekeepers are considered incidentals Exceptions ○ Traveling with heavy equipment or excess baggage due to the nature of the business trip  Laundry, Cleaning and Pressing Trips for (4) consecutive nights or more Must be reasonable

13. Special and Unusual Circumstances  Reimbursement up to 300% allowance for lodging Meeting, conference or training session offered by a third party. Specials events and no available lodging within per diem (missile launch) Customer requests the employee stay at a particular hotel facility ○ Written documentation from customer required

14. Documentation, Documentation, Documentation  Travel Expense Reports Date and place Purpose of the trip relate it back to SOW Name of person, Title  Airfare/Hotel/Rental Car Reasonable justification  Business Meals Original detailed receipts only Client name, title, company name, meeting purpose and meeting benefit

15. Process  Travel Authorization Manager Approval Foreign – Erica Insurance Contracts/Dir of Admin & Finance– Approval* A/P – Advances  Concur – Online Booking System Traveler – Book reservations, document exceptions Contracts/Dir of Admin & Finance – Approval* A/P – Monthly reports * Direct bill to a contract or overhead?

16. QUESTIONS