Federal Acquisition Service U.S. General Services Administration John Jerow Deborah Lanier GSA SmartPay® Charge Card Acquisition Support July 22-24, 2008 GSA SmartPay® Master Contract Basics

Federal Acquisition Service U.S. General Services Administration 2 What’s in it for you -- or -- just why are we here today.  The GSA SmartPay® Master Contract is your blueprint for your Agency’s Task Order. True? False?  An Agency’s Task Order should always mirror image GSA’s SmartPay® Master Contract. True? False?  Once awarded your task order must always follow the policies and procedures implemented by GSA. True? False?

Federal Acquisition Service U.S. General Services Administration 3 What We’ll Cover Today  Program History/Overview  Master Contract Basics  Understanding Liability  Major Program Participants  Contract Prohibitions  Preventing Misuse and Fraud  Benefits of GSA SmartPay®2  Contact Information

Federal Acquisition Service U.S. General Services Administration 4 Program History/Overview  GSA SmartPay® began on 11/30/1998 and ends on 11/29/2008  GSA SmartPay® 2 will begin on 11/30/2008 and ends on 11/29/2018  350 agencies/organizations use GSA SmartPay®  Over 3.1 million cards in circulation (FY 07 data)  Spend is over $27.2 billion (FY 07 data)  91.5 million transactions per year (FY 07 data)  Efficiency savings per year = $1.7 billion (FY 07 data)

Federal Acquisition Service U.S. General Services Administration 5 Master Contract Basics GSA SMARTPAY ®  In 1998, GSA contracted with five banks to provide purchase, travel, and fleet card services: The current banks are:  Bank of America  JPMorgan Chase  U.S. Bank  Citibank  Mellon Bank (Purchase only)  Collectively these contracts are known as the GSA SmartPay® “Master Contract” GSA SMARTPAY ® 2  In 2007, GSA contracted with three banks to provide purchase, travel, and fleet card services: The current banks are:  JPMorgan Chase  U.S. Bank  Citibank  Collectively these contracts are known as the GSA SmartPay® 2 “Master Contract”

Federal Acquisition Service U.S. General Services Administration 6 Master Contract Basics (continued)  Fixed price, Indefinite Delivery/Indefinite Quantity (ID/IQ) type contract  Three year base period (11/08 – 11/11) one- 4 year option & one 3 year option (ending November 29, 2018) The base year period will begin on 11/30/2008  To use the contract Agencies/Organizations can: Place task order with selected banks based on identified needs and best value Pool with other agencies/organizations, or Tag-along with other agencies/organizations

Federal Acquisition Service U.S. General Services Administration 7 Understanding Liability  Under the Master Contract, there are two types of accounts:  Centrally Billed Accounts (CBA)  Individually Billed Accounts (IBA)  CBAs are accounts established for the agency’s/ organization’s use  The agency/organization is liable for payment of all activity by the authorized users  Purchase and Fleet Cards are CBAs  Travel cards can be a CBA or an IBA

Federal Acquisition Service U.S. General Services Administration 8 Understanding Liability (continued)  IBAs are accounts established for individual travelers and used to pay for travel and travel- related expenses.  Cardholder is liable for payment of the activity on the travel card  In case of misuse or fraud by an unauthorized user, cardholder liability is limited to $50.00.

Federal Acquisition Service U.S. General Services Administration 9 Major Program Participants Banks GSA Office of Charge Card Management Agencies & A/OPC’s

Federal Acquisition Service U.S. General Services Administration 10 The Banks  The banks provide purchase, travel, fleet and/or integrated cards to their client agencies/ organizations  Each agency/organization sets the spend limits for each account, but the bank can furnish information to assist in setting reasonable spend limits (e.g., historical spend records or credit checks)  The banks cannot refuse to issue cards, unless the cardholder’s GSA SmartPay® account had previously been canceled due to non-payment  When cards expire, the banks provide replacement cards (unless the agency requests no replacement be provided)

Federal Acquisition Service U.S. General Services Administration 11 The Banks (continued)  Provide training to A/OPCs through:  GSA SmartPay® Annual Training Conference  Internet (GSA and/or specific Bank WEB Page)  On-site training to groups of 25 or more program personnel (e.g., A/OPC, DBO, TDO) at agency’s/organization’s request  Provide assistance with audits and investigations  Banks are NOT permitted to release account information for any purpose outside of the contract (e.g. for marketing other products)

Federal Acquisition Service U.S. General Services Administration 12 The Banks (continued)  Provide A/OPC Guide that includes:  Account set-up and maintenance procedures  Transaction dispute procedures  Reconciliation procedures  Account suspension and cancellation procedures  Payment requirements  Authorized uses  Toll-free/collect, task order manager telephone number  The guide will be made available within 10 days of request by the agency/organization

Federal Acquisition Service U.S. General Services Administration 13 The Banks (continued)  Provide Electronic Access Systems (EAS) with reporting tools  Invoices & invoice status reports  Transaction dispute report  Delinquency report  Pre-suspension/pre-cancellation report  Suspension/cancellation report  Renewal report (cards due to expire)  Detailed electronic transaction file (each cardholder’s detailed transactions for each cycle)  Other reports as required by the agency/organization and commercially available

Federal Acquisition Service U.S. General Services Administration 14 Agency Responsibility Your Agency needs to:  Follow your specific individual Agency guidelines/policy  Identify/assign appropriate personnel to manage the card program(s)  Develop, issue & implement agency policies regarding the management of the card program(s)  We recommend you pay all CBAs and IBAs on a timely basis in order to get the best refunds  Administer the task order

Federal Acquisition Service U.S. General Services Administration 15 Agency Responsibility (continued) Your Agency needs to:  Follow established procedures for disputing transactions, suspending, canceling, or deactivating accounts, etc.  Conduct periodic reviews of the card program(s) and implement recommendations to improve performance  Promote ethical & responsible use of all card(s)

Federal Acquisition Service U.S. General Services Administration 16 A/OPC Responsibilities You need to:  Manage the card program  Set up and maintain accounts and set authorization controls for each account (e.g., spend limits, transaction limits, MCC blocks)  Monitor cardholder activity through EAS reports and/or SP2 alert notifications of card transactions  Report suspicious or questionable transactions to proper authorities  Answer cardholder questions & provide assistance  Deactivate, suspend, or cancel cards as necessary  Stay up-to-date on the GSA SmartPay®2 program

Federal Acquisition Service U.S. General Services Administration 17 A/OPC Responsibilities (continued) You need to:  Travel Card A/OPCs will also:  Monitor account delinquency (particularly IBA travel A/OPCs) and work with cardholders and banks to resolve delinquency issues as soon as possible – the faster you pay the more refunds you get  Purchase Card A/OPCs will also:  Work with Approving Officials (AOs) to verify account reconciliations (or, in some cases, act as the AO) and monitor account activity for questionable or suspicious activity  Fleet Card A/OPCs will also:  Work with the fleet manager to insure that the correct card is in the correct car

Federal Acquisition Service U.S. General Services Administration 18 Office of Charge Card Management  What does GSA do for you?  Administer the Master Contract  Develop program guides and provides generic training for A/OPCs and cardholders, such as: –A Guide for Managing Your GSA SmartPay® Travel Charge Card Program –Blueprint for Success: Purchase Card Oversight (for purchase card A/OPCs) –Online purchase and travel card training for cardholders –Online purchase and travel card program training for A/OPCs –Provide GSA and/or Agency contact information

Federal Acquisition Service U.S. General Services Administration 19 Office of Charge Card Management (continued)  Issue and distribute contract and program information through the GSA SmartPay® website –Master Contract –Agency task orders –Performance reports –Online training and downloadable publications  Issue a monthly CFO report which tracks agency delinquency rates  Sponsor GSA SmartPay® Annual Training Conference  Sponsor interagency work groups and roundtables

Federal Acquisition Service U.S. General Services Administration 20 Office of Charge Card Management (continued)  Hold monthly A/OPC meetings  Hold weekly “Discussions With Dave” Conference calls  Provide guidance on developing SOW’s  Provide assistance with developing task orders  Provide assistance with negotiations  Coordinate “pool” arrangements  Plan and prepare for transition in 2008

Federal Acquisition Service U.S. General Services Administration 21 Office of Charge Card Management (continued) New Improvements to the GSA SmartPay® 2 Program:  On site Bank training requirements have been reduced from 25 cardholders down to 20 cardholders  Increased security requirements with an emphasis on security of both personally identifiable information (PII) and procurement data to minimize risk to individual cardholders and agencies  Increased capability of EAS systems to provide flexibility in reporting and account management

Federal Acquisition Service U.S. General Services Administration 22 Office of Charge Card Management (continued) New Improvements to the GSA SmartPay® 2 Program:  Transaction monitoring combined with alert service to detect misuse, fraud, waste and abuse  Increased data requirements – more focus on level 3 data which provides better insight into the program for both agencies and GSA SmartPay ®  Strategic sourcing support – leveraging the buying power of the Government to achieve savings and best value procurement

Federal Acquisition Service U.S. General Services Administration 23 Contractual Prohibitions Purchase card prohibitions:  Long term lease or rental of land or buildings  Travel or travel-related expenses, excluding conference rooms, meeting spaces, and local transportation services (e.g., subway tokens)  Cash advances

Federal Acquisition Service U.S. General Services Administration 24 Preventing Fraud, Waste and Abuse Protect your card program from fraud, waste, and abuse by:  Educating and training cardholders  Establishing reasonable authorization controls for each cardholder (e.g., spend limits, transaction limits)  Setting Merchant Category Code (MCC) blocks for categories unrelated to agency or cardholder mission  Deactivating or canceling accounts  Using the bank’s EAS reporting tools to manage delinquency, detect questionable transactions and monitor activity

Federal Acquisition Service U.S. General Services Administration 25 Benefits of GSA SmartPay®  Refunds based on dollar volume and payment performance  Savings and efficiency is estimated at $1.7 billion per year in administrative processing cost avoidance in FY07 for purchase cards  Worldwide acceptance  Merchants prefer using cards  Data availability 24/7

Federal Acquisition Service U.S. General Services Administration 26 GSA SmartPay® 2 Contact Information  John Jerow  Phone:   Deborah Lanier  Phone:   WEB Page:

Federal Acquisition Service U.S. General Services Administration 27 Questions?