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Recommendation Presentation Administered by Ohio University Presented by Rusty Thomas & Shannon Bruce.

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Presentation on theme: "Recommendation Presentation Administered by Ohio University Presented by Rusty Thomas & Shannon Bruce."— Presentation transcript:

1 Recommendation Presentation Administered by Ohio University Presented by Rusty Thomas & Shannon Bruce

2  19 Schools have existing PCard Programs  Total Volume  $1.25 Billion over a 5 year contract period or $250 M/year  Over 8,700 existing card holders  $2.8 M/year in Collective rebate  6 different providers serve existing programs  JP Morgan Chase is the dominant provider

3 RFP Overview  Sent to 27 providers  Pre-bid had 9 providers represented  7 Proposals were received + (5 No Bid)  Top 2 providers JP Morgan Chase and PNC were asked to make oral presentations  The recommendation by the committee is unanimous

4 Provider Ranking By Rebate

5 University - JPMC Rebate Proposal

6 College - JPMC Rebate Proposal

7 Recommendation Justification Award to JP Morgan Chase  There is a rebate increase of over $1.3 M per year or $6.5 M during the initial contract period, compared to the current basis point rebate.  Additional income of $125,000 per year rebate or $625,000 during the initial contract period to IUC-PG to fund other program advancements.  Eight (8) schools are currently with JPMC - no implementation or technology change is necessary. This allows for a more rapid deployment and immediate member savings.  Approximately 2,600 card holders are not affected by the recommendation - JP Morgan Chase is already the issuing bank.  Over $111.4 M in annual spend is immediately and positively affected by the recommendation. The additional rebate increase calculated at $466,000 per year.  Large ticket item threshold is $7,500 (compared to PNC - $4,500).

8 Recommendation Justification Award to JP Morgan Chase  Ten (10) schools are currently under contract with other providers and will require some level of change to realize increased savings.  Approximately 6,100 card holders will be affected by the recommendation  Approximately $138.6 M in annual spend must be migrated to obtain savings of approximately $909,000  Implementation team for new schools roll out is prepared  JPMC offered $600,000 more than the 2 nd place proposal from PNC

9 Purchasing Card – Industry Rankings JPMorgan is the #1 largest Purchasing Card provider Source: Nilson 6/08 Rankings

10 Works Citi AMEX US Bank GE JPMC TSI – Treasury Strategies Incorporated – Online Survey of 135 Organizations

11  Establishment of IUC-PG PCard User group  Regional mentoring program to match small startup programs to larger, more mature programs  Small platform rapid startup program

12 JP Morgan Chase

13  Migration Scenario

14 Gene Stephens

15 Rusty Thomas Business Services Manager Shannon Bruce Pcard Administrator, Systems Administrator


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