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Federal Acquisition Service
U.S. General Services Administration
Bradley ForrestelElizabeth SkolnikContract SpecialistsGeneral Services Administration
Bradley ForrestelElizabeth SkolnikContract SpecialistsGeneral Services Administration
April 2008April 2008
Managing Your GSA SmartPay® Purchase Card Program
Managing Your GSA SmartPay® Purchase Card Program
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Federal Acquisition Service
Value to the Customer
Gain Knowledge and Resources
Share Best Practices
Learn about the future of GSA SmartPay®
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Federal Acquisition Service
Agenda
Overview of the GSA SmartPay® Program
Purchase Card Program Facts and Statistics
Management and Oversight Best Practices
Considerations for the Future
Questions and Answers
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Federal Acquisition Service
GSA SmartPay® Program
Provides Purchase, Travel, Fleet, and Integrated charge cards to over 350 government agencies and organizations
5 Bank Contractors: Bank of America, Citibank, JPMorgan Chase, Mellon Bank, and US Bank
Contract Period of Performance: 5 year base period with 5 one-year options (1998 through 2008)
Each agency negotiates separate task orders tailored to their needs or pools with other agencies
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Federal Acquisition Service
Purchase Card Program Overview
FY06 - $18.7 billion in spend; 25 million transactions; 283,861 cardholders
Purchase Card Program 1999-2007
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5.0
10.0
15.0
20.0
25.0
30.0
1999 2000 2001 2002 2003 2004 2005 2006 2007
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150
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450
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Spend(billions)
Transactions(millions)
Cardholders(thousands)
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Federal Acquisition Service
Management and OversightOMB Circular A-123, Appendix B OMB Circular A-123, Appendix B, Improving the Management of
Government Charge Card Programs: Consolidates and updates government-wide charge card
program requirements and guidance issued by various government agencies (i.e., OMB, GSA, Treasury, and other federal agencies)
Outlines requirements affecting three business lines of the government charge card program (purchase, travel, and fleet)
Establishes standard minimum requirements and suggested best practices for government charge card programs that may be supplemented by individual agency policy and procedures
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Federal Acquisition Service
Management and Oversight
Necessity at any size program Best practices:
• Strong commitment and leadership by senior management
• Commit the necessary resources• Maintain lines of communication at all levels
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Federal Acquisition Service
Management and OversightAgency Policies
Recommended agency policy should address the following areas to ensure that clear guidance is provided to Agency/Organization Program Coordinators (A/OPCs), Approving Officials (AOs), and cardholders:
Delegation of contracting authority Training requirements Account limits Uses of the card Receipt and acceptance of supplies and services Reconciling accounts Span of control for A/OPCs and AOs Criteria for establishing accounts Criteria for deactivating or canceling accounts with minimal activity Merchant Category Code (MCC) blocks
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Federal Acquisition Service
Management and OversightDelegation of Contract Authority
FAR 1.603-3(b) Agency heads are encouraged to delegate micro-purchase authority… Individuals delegated this authority…shall be appointed in writing in accordance with agency procedures
Are your Approving Officials (AOs) appointed in writing?
What procedures are in place when these appointments are terminated?
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Federal Acquisition Service
Management and OversightPreventative Measures
What is your criteria for establishing a purchase cardholder account?
How are reasonable single and monthly purchase limits determined?
Is there criteria in place for deactivating or closing an account?
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Federal Acquisition Service
Management and OversightPreventative Measures
Establish periodic audit reviews of cardholders and AOs Define responsibilities of cardholders, AOs, A/OPCs,
and agency auditors Verify compliance with policy OMB recommendation: Conduct reviews as needed,
but not less than annually
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Federal Acquisition Service
Management and Oversight Training Has training been received prior to appointment—for AOs and/or
A/OPCs or prior to issuance of a purchase card—for cardholders?
Are copies of training certificates kept on file in a centralized location?
How often is refresher training provided? How do you track training completion? Are learning objectives properly defined and tested?
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Federal Acquisition Service
Management and OversightSpan of Control
Recommended range: 1:5 or 1:10 (one AO for every 5-10 cardholders)
Consider volume Familiar with operations Able to act independently
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Federal Acquisition Service
Management and OversightMerchant Category Codes (MCCs)
What MCCs are necessary for agency mission?
Block certain MCCs to prevent unauthorized use
MCC blocks are NOT 100% foolproof—work with the bank to assist you in determining which MCCs should be restricted and/or blocked
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Federal Acquisition Service
Management and OversightElectronic Access Systems (EAS)
Does your agency make use of the bank’s electronic access system to manage cardholder accounts? Reports assist with cardholder oversight
– General account information– Transaction, payments, and disputes– Statistical or summary reports
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Federal Acquisition Service
Management and OversightRefund Management Does your agency policy maximize the opportunity for refunds?
Productivity refunds: based on the timeliness and/or frequency of payments to the bank (faster payments = higher refunds)
Sales refunds: based on the dollar or *spend* volume during a specified time period
Corrective refunds: payments made to the agency to correct improper or erroneous payments on an invoice adjustment
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Federal Acquisition Service
GSA SmartPay® ProgramConsiderations for the Future
Piloting new technologies (data mining, pre-authorization, electronic commerce)
Leveraging the government’s buying power Balancing risk and reward Legislative compliance Learn more about all these topics at the GSA SmartPay®
conference, July 22-24, 2008 (Denver, CO)
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Federal Acquisition Service
GSA SmartPay®
Questions and AnswersBradley Forrestel
[email protected] (703) 605-2799
Liz Skolnik [email protected](703) 605-5736
You will find a wealth of contract and program information, training, publications, and points of contact at our website: www.gsa.gov/gsasmartpay
Treasury Financial Management Manual provides guidance to management of a purchase card program. A copy can be obtained from the following website:http://www.fms.treas.gov/tfm/vo11/v1p4c450.txt
