Federal Acquisition Service U.S. General Services Administration David J. Shea, CPCM, PMP Director, Office of Charge Card Management (OCCM) Federal Acquisition Service April 2008 GSA SmartPay® Program Update

Federal Acquisition Service 2 Value to the Customer  Gain a general understanding of the GSA SmartPay® Program: The value of charge cards to government agencies The value of the GSA SmartPay® Program to its customer agencies  Learn what improvements have been made under the GSA SmartPay® 2 Program: New products and services offered under GSA SmartPay® 2  Learn about the transition to GSA SmartPay® 2:  Learn why the transition is necessary and important, when it will occur, what your role is, how to complete transition activities, and where to find additional information about the transition

Federal Acquisition Service 3 Agenda  Welcome  Program Overview  GSA SmartPay® 2  Transition to GSA SmartPay® 2  What Does This Mean for Program Managers?  What Does This Mean for Cardholders?  Q & A

Federal Acquisition Service 4 Welcome  What are your objectives for this course?  What issues would you like to discuss?  What topics do you want to understand better as a result of your participation in today’s course?

Federal Acquisition Service 5 Program Overview  GSA SmartPay® provides federal employees with a secure, convenient, and efficient payment and procurement tool in the form of approximately 3 million government purchase, travel, fleet, and integrated charge cards  GSA SmartPay®, established in 1998, is the federal government-wide charge card program that provides program service to over 350 federal agencies, organizations, and Native American tribal governments  One GSA Master Contract with (currently) 5 banks provides card products and services to all 350 agencies, organizations, and tribes

Federal Acquisition Service 6 Program Overview  Charge cards provide the following benefits:  Administrative savings and efficiency, estimated at $1.8 billion in administrative processing cost avoidance (e.g., reduced procurement time, streamlined payment procedures and paperwork) in FY07 for purchase cards alone  Refunds based on dollar volume and payment performance  Electronic transaction data, enabling better reporting  Worldwide acceptance

Federal Acquisition Service 7 Program Overview  Program benefits  Training, including GSA SmartPay® annual training conference  Travel cards provide access to the City Pair Program, which saves the government approximately $2.8 billion/year –72% average discount off comparable commercial fares  Access to merchants offering Point-of-Sale discounts, including Office Depot, Home Depot, etc.  Program-wide representation on regulations and issues impacting the program –OCCM monitors legislation and communicates potential impacts on agencies/organizations

Federal Acquisition Service 8  In FY07 alone:  Total FY07 program spend was over $27 billion, a 4.8% increase over FY06  Over 91.5 million purchase, travel, and fleet transactions were processed through approximately 3 million cards  Agencies earned over $166 million in refunds  The ten largest customers (across business lines) account for more than 90% of total program spend Program Overview

Federal Acquisition Service 9 Program Overview - Purchase FY07 - $18.7 billion in spend; 25 million transactions; 283,000 cardholders

Federal Acquisition Service 10 Program Overview - Travel FY07 - $7.2 billion in spend; 42 million transactions; 2 million cardholders

Federal Acquisition Service 11 Program Overview - Fleet FY07 - $1.2 billion in spend; 24 million transactions; 828,000 cards

Federal Acquisition Service 12  The current GSA SmartPay® contract expires on November 29, 2008  The successor contract, GSA SmartPay® 2, was awarded ahead of schedule on June 7, 2007  All agencies must transition to GSA SmartPay® 2 by November 30, 2008 GSA SmartPay® 2

Federal Acquisition Service 13 GSA SmartPay® 2: Card Design Mock-ups Purchase CardTravel Card

Federal Acquisition Service 14 GSA SmartPay® 2 : Card Design Mock-ups Fleet CardIntegrated Card

Federal Acquisition Service 15  Increased security requirements – increased emphasis on security of both personally identifiable information (PII) and procurement data to minimize risk to individual cardholders and to agencies  Strategic sourcing support – leveraging the buying power of the government to achieve savings and best value procurement  Increased data requirements – more focus on Level 3 data, which provides better insight into program performance for OCCM and agencies GSA SmartPay® 2: Program Improvements

Federal Acquisition Service 16  Improved Program Technology – Increased capability of EAS systems to provide flexibility in reporting and account management −Ability to generate ad hoc reports −Ability to change category block templates (e.g., MCC blocking) −Ability to dispute transactions electronically −Improved ability for A/OPCs to turn cards “on” and “off” Transaction monitoring to detect misuse, fraud, waste, and abuse − alert service GSA SmartPay® 2: Program Improvements

Federal Acquisition Service 17 GSA SmartPay® 2: Enhanced Products and Services  Contactless cards – facilitate faster point-of-sale transactions; the card does not leave the hand of the cardholder  Debit cards – help to control the amount of outstanding credit with cardholders  Pre-paid (stored value) cards – provide capability to load and reload cards with specific dollar values. Cards can be issued with required value on short notice.  Cardless accounts – provide established vendor-specific charge accounts without physical cards  Travelers and convenience checks – improve ability to issue and reconcile checks online, including features such as: Electronic transaction record must include merchant name Online imaging of cleared checks

Federal Acquisition Service 18 Transition to GSA SmartPay® 2  The “transition” refers to the activities involved in the movement from the current GSA SmartPay® Master Contract to the GSA SmartPay® 2 Master Contract  Each agency/organization is responsible for transitioning its program from GSA SmartPay® to GSA SmartPay® 2  All charge cards must be cancelled and replaced with new cards no later than November 29, 2008

Federal Acquisition Service 19 Transition to GSA SmartPay® 2 Transition Timeline (Larger Agencies) Now

Federal Acquisition Service 20 OCCM will assist customers through the transition by: Transition to GSA SmartPay® 2  Working to facilitate a smooth government-wide transition to the GSA SmartPay® 2 Program  Providing support to agencies/organizations as needed through: Regular A/OPC meetings Newsletters “Discussions with Dave” Training One-on-one meetings as needed  Working to minimize the impact of transition on cardholders and other stakeholders  Addressing transition issues and challenges at the program level as they arise

Federal Acquisition Service 21 OCCM will assist customers through the transition by (cont.): Transition to GSA SmartPay® 2  Tracking Agency Transition Status Reports (ATSR): Milestone tracking tool to support transition efforts of 32 designated agencies/organizations Provides OCCM and the Office of Management and Budget with insight into the government-wide transition status Agencies/organizations which have awarded task orders represent approximately 32% of total FY07 program spend and 50% of total FY07 program cards (per February 26 ATSR) Next ATSR is due April 26  Conducting GSA SmartPay® 2 Outreach Campaign to build cardholder awareness of transition

Federal Acquisition Service 22 OCCM has developed tools to support agencies/organizations in their transition planning efforts:  Transition Executive Briefing  Transition Quick Reference Guide  Pre- and Post- Award Checklists  Transition FAQs  Communications Planning Tool  Agency/Organization Needs Assessment  A/OPC Information Technology Quick Reference  Task Order Type Tool & Task Order Guide Transition to GSA SmartPay® 2

Federal Acquisition Service 23 Transition to GSA SmartPay® 2 Web Page

Federal Acquisition Service 24 What Does This Mean for Program Managers? Key Transition Tasks Now Pre-Award Tasks (should be completed) Post-Award Tasks Develop communications plan Define needs/requirements Determine task order type Develop/issue task order request Evaluate and award task order Obtain data from current GSA SmartPay® bank Cleanse, verify and send data to GSA SmartPay® 2 bank Develop card activation and distribution plan Bank EAS, interfaces, and other systems tested and ready to activate New cards deployed; users trained Develop contingency plan Card closeout procedures

Federal Acquisition Service 25 What Does This Mean for Program Managers? Post-Award Tasks The post-award transition phase requires significant efforts to coordinate activities with the current bank, the new bank, and internal agency stakeholders. GSA SmartPay® bank Identify critical data to be obtained from current bank (master file/cardholder data) Establish card closeout procedures GSA SmartPay® 2 bank Establish communication and coordination procedures with bank Confirm task order variances and deliverables Plan logistics for card distribution and activation, including inserts and activation stickers Complete IT-related tasks Plan/coordinate user training Intra-Agency Validate master file data Develop effective cardholder communications Develop/implement plans to reduce and deal with trailing transactions (subscriptions, travel vendor accounts) Update card policies and internal training on new card policies Develop contingency plans

Federal Acquisition Service 26 What Does This Mean for Program Managers? Considerations Have you thought about…  Which agency policies/procedures should be refreshed?  Will there be any restrictions on card use leading up to transition?  What are the “old” card destruction procedures?  What record retention policies for closing out the current contract need to be followed?  How will trailing transactions from subscriptions and vendor accounts be dealt with?  How will new account numbers be communicated to travel vendors?  How will fleet cards be distributed to their assigned vehicles?  What will be communicated to agency cardholders so that they know when to activate/use GSA SmartPay® 2 cards?

Federal Acquisition Service 27 What Does This Mean for Program Managers? Contingency Planning Work with the appropriate bank and agency personnel to develop contingency plans around:  Cardholders who have not received GSA SmartPay® 2 cards by the cut-over date (especially those on TDY status)  Cardholders that use their “old” GSA SmartPay® card after the cut- over date  Recurring charges (subscriptions, vendor accounts)  EAS or other systems that are not ready by cut-over date, or any system malfunctions (e.g., data breaches) that occur around the cut- over date

Federal Acquisition Service 28  You may receive new cards before the date your agency transitions to GSA SmartPay® 2; be sure to use the correct card at the appropriate time (only one card will be operational at a time)  If you are traveling around the time of your agency’s transition date, ensure that you have your new card with you, and use it for all appropriate expenses after the transition date What Does This Mean for Cardholders?

Federal Acquisition Service 29  Ensure that you cancel all automatic or recurring charges on your existing cards (e.g., subscriptions), so that they are not charged to your old card accounts after your agency’s transition to GSA SmartPay® 2  Transfer automatic or recurring charges to your new cards  Reconcile all transactions with your current bank  Complete Electronic Access System (EAS) training as needed (agencies may have a new EAS under GSA SmartPay® 2, particularly those that transition to a new bank) What Does This Mean for Cardholders?

Federal Acquisition Service 30 What Does This Mean for Cardholders?  Review guidance from your A/OPCs in order to stay informed of your agency’s transition to GSA SmartPay® 2 and your role in it; complete tasks as requested, for example:  Apply for new cards in accordance with your agency’s procedures  Keep an eye out for your new card to arrive and activate your new cards as instructed  Destroy your old card in accordance with your agency’s procedures  Be sure you understand new policies and procedures

Federal Acquisition Service 31 Utilize additional sources of information regarding transition to GSA SmartPay® 2, including:  GSA SmartPay® website:  Statement inserts  Statement messaging  s and guidance from A/OPCs What Does This Mean for Cardholders?

Federal Acquisition Service 32 Stay compliant with the requirements of the program:  Stay current with program training  Use the card in accordance with all agency and government guidelines  Pay account bills on time What Does This Mean for Cardholders?

Federal Acquisition Service 33 Vendor Brochure GSA SmartPay 2 Ad and Poster

Federal Acquisition Service 34 Post-It Notes Fleet Card Postcard

Federal Acquisition Service 35 Integrated Card Postcard All Business Lines Postcard

Federal Acquisition Service 36 Purchase Card Postcard Travel Card Postcard

Federal Acquisition Service 37 David J. Shea, CPCM, PMP (703) Please provide your feedback and thoughts about the current and future program at: under “GSA SmartPay® Program Feedback Form” Q & A