1. GSA SmartPay® Program Update
David J. Shea, CPCM, PMP Program Director, Office of Charge Card Management (OCCM) Federal Acquisition Service 11th Annual GSA SmartPay® Training Conference July 28-30, 2009 1

2. Welcome What are your objectives for this session?
What issues would you like to discuss?
What questions would you like to have answered as a result of this session?
Welcome: GSA SmartPay® Director since August 2005
What are you hoping that we will cover in this course? Do you have any specific questions that you would like to have answered?

3. Training Session – Value to the Customer
Gain a general understanding of the GSA SmartPay® Program and its current initiatives:
The value of charge cards to government agencies/organizations
The value of the GSA SmartPay® Program to its customers
The new products and services offered under GSA SmartPay® 2
The future of the GSA SmartPay® Program

4. Agenda The GSA Office of Charge Card Management Overview
GSA SmartPay® 2 Transition
GSA SmartPay® Program Performance
Relevant Legislation and Regulation
Charge Card Management Best Practices
The Future of the GSA SmartPay® Program
Training Resources
Q&A
This is a brief look at the topics we plan to cover in this course.

5. On Completing a Successful Transition to GSA SmartPay® 2
Congratulations!
On Completing a Successful Transition to GSA SmartPay® 2 5

6. GSA Office of Charge Card Management (OCCM)
Overview 6

7. Where does the Office of Charge Card Management (OCCM) fit into GSA?
Jim Williams
Commissioner (Q)
Tyree Varnado
Deputy Commissioner
Bruce E. Caughman
Chief of Staff
Office of Strategic Business Planning and Process Improvement (QP)
Amanda G. Fredriksen
Acting Assistant Commissioner
Office of Administration (QA)
Karen J. Hampel
Assistant Commissioner
Office of General Supplies and Services (QS)
Joseph H. Jeu
Office of Travel, Motor Vehicle, and Card Services (QM)
William F. Webster
Office of Assisted Acquisition Services (QF)
Mary A. Davie
Office of Integrated Technology Services (QT)
Edward J. O’Hare
Office of the Controller (QB)
Jon A. Jordan
Controller
Office of the Chief Information Officer (QI)
Elizabeth F. DelNegro
Acting Chief Information Officer
Office of Customer Accounts and Research (QC)
Gary Feit
Office of Acquisition Management (QV)
Steven J. Kempf
Office of Acquisition Operations (QMA)
Rebecca A. Koses
Director
Travel and Transportation Services (QMC)
Timothy J. Burke
Office of Motor Vehicle Management (QMD)
William A. Toth
Office of Charge Card Management (QMB)
David J. Shea 7

8. Office of Charge Card Management (OCCM) Organization
David J. Shea
Office of Charge Card Management
Director
Erin VanDagna
Service Delivery Division
Director
Perry Hampton
Utilization and Analysis Division
Director
Beverly Craig
Charge Card Acquisition Support Division
Director 8

9. GSA SmartPay® Program Overview
The GSA SmartPay® program office currently manages three Master Contracts with charge card providers: Citibank, JPMorgan Chase, and U.S. Bank. Through these contracts, agencies/organizations can obtain a number of different types of charge card products and services to support their mission needs, including:
Purchase Cards:  For purchasing general supplies and services;
Travel Cards:  For travel expenses related to official government travel (airline, hotel, meals, incidentals);
Fleet Cards:  For fuel and supplies for government vehicles; and
Integrated Cards:  Two or more business lines (card types) whose processes are integrated into one card.
DID YOU KNOW…
$970 was charged on the GSA SmartPay® charge card every second in FY08
The GSA SmartPay® Program is the largest government charge card program in the world

10. Transition to GSA SmartPay® 2

11. GSA SmartPay® 2 Transition Statistics
100% of agencies’/organizations’ cardholders transitioned successfully to the GSA SmartPay® 2 Program
To ensure a smooth transition to the next Master Contract, GSA OCCM has collected and documented numerous transition lessons learned 11 11

12. GSA SmartPay® 2 Transition Lessons Learned
Lesson Learned: Data Interface
Develop a standard data interface between industry and government
Standardizes multiple definitions into a single agreed upon interface
Minimizes costs by reconciling redundant work efforts
Permits agencies/organizations to more readily change their program bank
Encourages continuous innovation by program banks
Lesson Learned: Phased Transition
Conduct a phased transition where agencies/organizations transition at different times
Improves ability to manage transition effectively
Reduces risk implicit with entire government transitioning at once 12

13. GSA SmartPay® 2 Transition Lessons Learned Continued
Lesson Learned: Operating Systems Simultaneously
Hold a trial period, prior to transition, where the outgoing and incoming bank systems are operating simultaneously
Provides testing period
Improves knowledge sharing
Lesson Learned: Trailing Transaction Policy
Define a convenience check acceptance and trailing transaction policy prior to transition
Reduces convenience check acceptance issues after transition
Clarifies the period for which the government will accept invoices from prior contracts 13

14. GSA SmartPay® 2 Transition Lessons Learned Continued
Lesson Learned: Institutionalize Processes
Institutionalize the Federal Information Security Management Act (FISMA) and Certification and Accreditation (C&A) process by industry
Improves compliance
Increases customer confidence
Helps protect sensitive information
Lesson Learned: Access to Brand Information
Provide agencies/organizations with more information on the brands (VISA, MasterCard) participating in the program
Identifies the various benefits a brand provides to their customer
Describes the pros and cons of the different brands
Defines the varying interchange rates available 14

15. GSA SmartPay® Program Performance

16. Q. What was the approximate amount of program spend, number of transactions and number of cardholders in FY08?
$30 billion, 50 million, 1 million
$20 billion, 100 million, 1 million
$30 billion, 100 million, 3 million
$40 billion, 150 million, 3 million

17. Q. Each year the GSA SmartPay® Training Conference is conducted to provide training to Agency/Organization Program Coordinators (A/OPCs). This year, approximately how many of your colleagues are here to share the latest trends in charge card management?
4,000
5,400
8,000
2,500
Now, for a brief history on the GSA SmartPay® Program.
- Prior to the current contract, the Government purchase card contract was known as the IMPAC card. It was a single award contract with US Bank. American Express had the travel card and Wright Express had the fleet card.
- In 1998, GSA awarded a Multiple Award Contract with 5 banks. Citibank is an original bank. Nations Bank was an original bank. It became Bank of America in Bank of America became FIA Card Services Bank in First Chicago was also an original bank. It became Bank One in 1999 and in 2006 Bank One became JPMorgan Chase Bank.
Some program benefits:
Administrative savings and efficiency, estimated at $1.8 billion in administrative processing cost avoidance in FY07 for purchase cards alone
Travel cards provide access to the City Pair Program (also operated by GSA), which saves the government approximately $2.8 billion/year
72% average discount off comparable commercial fares
Rebates based on dollar volume and payment performance
Electronic transaction data, enabling better reporting and ability to detect waste, abuse, and fraud
Access to merchants offering Point-of-Sale discounts, including Office Depot, Home Depot, etc.
OCCM provides program-wide representation on regulations and issues impacting the program 17 17

18. Q. In FY08 agencies/organizations received this net amount of refunds from program banks.
$10 million
$187 million
$500,000
$1 million 18

19. Department of Agriculture Department of Defense
Q. In terms of total charge card spend in FY08, the Purchase Card program is the largest business line within the GSA SmartPay® program. Of the 10 agencies/organizations that make up 95% of the total Purchase Card spend, which is the second largest?
Department of Agriculture
Department of Defense
Department of Veterans Affairs
U.S. Postal Service
Department of Interior
Now, for a brief history on the GSA SmartPay® Program.
- Prior to the current contract, the Government purchase card contract was known as the IMPAC card. It was a single award contract with US Bank. American Express had the travel card and Wright Express had the fleet card.
- In 1998, GSA awarded a Multiple Award Contract with 5 banks. Citibank is an original bank. Nations Bank was an original bank. It became Bank of America in Bank of America became FIA Card Services Bank in First Chicago was also an original bank. It became Bank One in 1999 and in 2006 Bank One became JPMorgan Chase Bank.
Some program benefits:
Administrative savings and efficiency, estimated at $1.8 billion in administrative processing cost avoidance in FY07 for purchase cards alone
Travel cards provide access to the City Pair Program (also operated by GSA), which saves the government approximately $2.8 billion/year
72% average discount off comparable commercial fares
Rebates based on dollar volume and payment performance
Electronic transaction data, enabling better reporting and ability to detect waste, abuse, and fraud
Access to merchants offering Point-of-Sale discounts, including Office Depot, Home Depot, etc.
OCCM provides program-wide representation on regulations and issues impacting the program 19 19

20. Relevant Legislation and Regulation

21. Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-222)
Q. What is the public law passed in February 2009 that includes over $787 billion in stimulus spending? This public law delays the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) implementation of withholding on payments made to government contractors until after December 31, 2011.
Tax Increase Prevention and Reconciliation Act of 2005
(P.L )
Omnibus Appropriations Act of 2009 (P.L )
The American Recovery and Reinvestment Act of 2009 (P.L )
Increased data requirements:
The GSA SmartPay® 2 RFP included incentives for offeror banks to propose a plan to increase the number of merchants providing level 3 data

22. $5,000 recurring utility payment paid using the Purchase Card
Q. Which of the following payments would be subject to 3% withholding under the Tax Increase Prevention and Reconciliation Act of (TIPRA)?
$5,000 recurring utility payment paid using the Purchase Card
$8,000 in CBA Travel expenses
$9,000 emergency Purchase Card payment
$11,000 non-emergency Purchase Card payment
All of the above 22

23. Q. The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) 3% withholding applies to all GSA SmartPay® 2 charge cards.
True
False
Most payments for individual travel, lodging, and meal expenses would fall beneath the $10,000 payment threshold 23

24. Q. Your agency/organization has received Recovery Act funding, what are some guiding principles you may want to consider when using the GSA SmartPay® 2 Purchase Card for your Recovery Act purchases?
GSA SmartPay® 2 Purchase Cards can be used for official purchases in support of the Recovery Act, consistent with OMB Circular A-123, Appendix B, and agency/organization policy
Additional Purchase Card accounts can be established with a Recovery Act accounting code as a default
Cardholders should follow typical transaction reconciliation procedures, but must reconcile purchases to the accounting code(s) and provide appropriate Recovery Act transaction description(s) (if applicable) as specified by agency/organization policy for Recovery Act transactions
All of the above

25. Q. What is the micro-purchase threshold for contingency operations?
$10,000
$5,000
$15,000
There is no micro-purchase threshold for contingency operations
Increased data requirements:
The GSA SmartPay® 2 RFP included incentives for offeror banks to propose a plan to increase the number of merchants providing level 3 data 25 25

26. Penalties are enforced for violations of improper charge card use
Q. Senator Charles Grassley is sponsoring a bill, S.942, “The Government Charge Card Abuse Prevention Act of 2009.” Which of the following is NOT addressed in the bill:
Agencies/organizations with annual program spend of $10 million or more are required to report all charge-card related violations to the Office of Management and Budget (OMB)
Purchase cardholders must review and reconcile their card statements and forward to the appropriate certifying official
Penalties are enforced for violations of improper charge card use
Risk assessments and audits are required by the Inspector General
The executive agency/organization is not responsible for disputing centrally-billed unallowable and erroneous charges
Increased data requirements:
The GSA SmartPay® 2 RFP included incentives for offeror banks to propose a plan to increase the number of merchants providing level 3 data 26 26

27. Q. Which of the following findings from the March 2008 Government Accountability Office (GAO) report on Governmentwide Purchase Cards did the GSA Office of Charge Card Management (OCCM) agree with:
GSA OCCM has the authority to help agencies/organizations improve controls over independent receipt and acceptance
GSA OCCM has the authority to help agencies/organizations with asset accountability
GSA OCCM has the authority to impose financial liability for unauthorized purchases
None of the above

28. Charge Card Management Best Practices

29. Q. Your agency/organization Fleet Card can be used for a vehicle leased through GSA Fleet.
True
False
Only the GSA Fleet Services Card can be used for vehicles leased through GSA Fleet

30. Split disbursement and salary offset procedures
Q. According to OMB Circular A-123, Appendix B, what specific risk management controls, policies, and practices are required for addressing payment delinquencies?
Split disbursement
Salary offset
Split disbursement and salary offset procedures
Due process requirements prior to salary offset
All of the above
Now, for a brief history on the GSA SmartPay® Program.
- Prior to the current contract, the Government purchase card contract was known as the IMPAC card. It was a single award contract with US Bank. American Express had the travel card and Wright Express had the fleet card.
- In 1998, GSA awarded a Multiple Award Contract with 5 banks. Citibank is an original bank. Nations Bank was an original bank. It became Bank of America in Bank of America became FIA Card Services Bank in First Chicago was also an original bank. It became Bank One in 1999 and in 2006 Bank One became JPMorgan Chase Bank.
Some program benefits:
Administrative savings and efficiency, estimated at $1.8 billion in administrative processing cost avoidance in FY07 for purchase cards alone
Travel cards provide access to the City Pair Program (also operated by GSA), which saves the government approximately $2.8 billion/year
72% average discount off comparable commercial fares
Rebates based on dollar volume and payment performance
Electronic transaction data, enabling better reporting and ability to detect waste, abuse, and fraud
Access to merchants offering Point-of-Sale discounts, including Office Depot, Home Depot, etc.
OCCM provides program-wide representation on regulations and issues impacting the program 30 30

31. Request the merchant to manually authorize (force) the transaction
Q. A purchase cardholder is asked to make a $4,000 transaction in a non-emergency. What should the cardholder do?
The cardholder should not make the purchase and should refer the purchase to their servicing contracting officer because the amount is over the micro-purchase threshold
Request the merchant to manually authorize (force) the transaction
The cardholder should split the transaction into two separate transactions under the micro-purchase threshold
None of the above
Increased data requirements:
The GSA SmartPay® 2 RFP included incentives for offeror banks to propose a plan to increase the number of merchants providing level 3 data 31 31

32. Q. An agency/organization needs to issue a card to an employee who does not meet the minimum FICO 660 credit score required to obtain a Travel Card. Which GSA SmartPay® 2 card could they issue?
GSA SmartPay® Travel Card with normal agency/organization defined transaction limits
Debit Card
Stored-value Card
Contactless Card
Increased data requirements:
The GSA SmartPay® 2 RFP included incentives for offeror banks to propose a plan to increase the number of merchants providing level 3 data 32 32

33. Only when the iPod supports an agency’s/organization’s mission
Q. When can a government employee use their Purchase Card to buy an iPod?
Anytime, as long as the iPod is paid for with agency/organization funds
Never
Only when the iPod supports an agency’s/organization’s mission
When you are buying a gift for a co-worker
Increased data requirements:
The GSA SmartPay® 2 RFP included incentives for offeror banks to propose a plan to increase the number of merchants providing level 3 data 33 33

34. Terminate the contractor’s right to proceed
Q. According to the Federal Acquisition Regulation (FAR), when an agency/organization head or designee determines that a contractor provided gratuities to government personnel, the government may:
Terminate the contractor’s right to proceed
Initiate suspension measures
Take no action
Terminate the contractor’s right to proceed and initiate suspension measures (A and B)
Increased data requirements:
The GSA SmartPay® 2 RFP included incentives for offeror banks to propose a plan to increase the number of merchants providing level 3 data 34 34

35. Q. If you are on travel in Arizona using your GSA SmartPay® 2 Travel Card to pay for your lodging, are you required to pay Arizona lodging and occupancy taxes?
Yes No
Each state has different tax exemption rules. Please refer to the GSA SmartPay® website ( to view a full listing of state tax information. In Arizona, individuals are exempt from lodging and occupancy taxes if they stay for 30 consecutive days. 35

36. Description of agency/organization training requirements
Q. According to the OMB Circular A-123, Appendix B, which of the following is a required element of an agency’s/organization’s charge card management plan?
Identification of key management officials and their responsibilities for each charge card program
Establishment of a process for formal appointment of cardholders and approving officials, where applicable
Implementation of a process to ensure the credit worthiness of new charge card applicants
Description of agency/organization training requirements
Management controls, policies, and practices for ensuring appropriate charge card and convenience check usage and oversight of payment delinquencies, fraud, misuse, or abuse
All of the above
Increased data requirements:
The GSA SmartPay® 2 RFP included incentives for offeror banks to propose a plan to increase the number of merchants providing level 3 data 36 36

37. The Future of the GSA SmartPay® Program

38. The Future of the GSA SmartPay® Program
The future of GSA SmartPay® will focus on:
Encouraging contractors to continuously upgrade offerings to create a dynamic marketplace from now until 2018 that provides agencies/organizations the opportunity to change banks and brands more readily than they do today
Exploring the following initiatives:
Grants funding card
Emergency cards
State and local government cards
Strategic sourcing
Standard interface between banks and agency/organization financial systems

39. Training Resources GSA SmartPay® Annual Training Conference
GSA SmartPay® online training:
Cardholders: Charting the Course
A/OPCs:
Agency/organization-provided training
Bank-provided training
Materials available online, and hard copies may be ordered by visiting the
Mini card-sized brochure – “Helpful Hints for Purchase Card Use,” “Helpful Hints for Travel Card Use,” and “Helpful Hints for Fleet Card Use”
There are multiple training resources available to both cardholders and agencies/organizations. Specific purchase card training is available online for cardholders and A/OPCs, as well as electronic guides and brochures that provide hints and guidance for managing the purchase card program.
GSA SmartPay® will hold the annual training conference this year in Phoenix, AZ from July 28-30, Training will be provided by participating banks, OCCM, and other Federal government agencies/organizations.

40. Thanks for Your Time and Attention!
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”
Allow approximately minutes for questions.