Presentation on theme: "Recommendation Presentation Administered by Ohio University Presented by Rusty Thomas & Shannon Bruce."— Presentation transcript:
Recommendation Presentation Administered by Ohio University Presented by Rusty Thomas & Shannon Bruce
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
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
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).
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
Purchasing Card – Industry Rankings JPMorgan is the #1 largest Purchasing Card provider Source: Nilson 6/08 Rankings
Works Citi AMEX US Bank GE JPMC TSI – Treasury Strategies Incorporated – Online Survey of 135 Organizations
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
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