Federal Acquisition Service U.S. General Services Administration David J. Shea, CPCM, PMP Program...

Federal Acquisition Service

U.S. General Services Administration

David J. Shea, CPCM, PMP Program Director, Office of Charge Card Management (OCCM) Federal Acquisition Service

11th Annual GSA SmartPay® Training ConferenceJuly 28-30, 2009

David J. Shea, CPCM, PMP Program Director, Office of Charge Card Management (OCCM) Federal Acquisition Service

11th Annual GSA SmartPay® Training ConferenceJuly 28-30, 2009

GSA SmartPay® Program UpdateGSA SmartPay® Program Update


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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?


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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


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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


Congratulations! On Completing a Successful

Transition to GSA SmartPay® 2

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GSA Office of Charge Card Management (OCCM)

Overview

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Where does the Office of Charge Card Management (OCCM) fit into GSA?

Jim Williams Commissioner (Q)

Tyree VarnadoDeputy Commissioner

Bruce E. CaughmanChief of Staff

Jim Williams Commissioner (Q)

Tyree VarnadoDeputy Commissioner

Bruce E. CaughmanChief of Staff

Office of Strategic Business Planning and Process

Improvement (QP)

Amanda G. FredriksenActing Assistant Commissioner

Office of Strategic Business Planning and Process

Improvement (QP)

Amanda G. FredriksenActing Assistant Commissioner

Office of Administration (QA)

Karen J. HampelAssistant Commissioner

Office of Administration (QA)

Karen J. HampelAssistant Commissioner

Office of General Supplies and Services (QS)

Joseph H. JeuAssistant Commissioner

Office of General Supplies and Services (QS)

Joseph H. JeuAssistant Commissioner

Office of Travel, Motor Vehicle, and Card Services

(QM)William F. Webster

Assistant Commissioner

Office of Travel, Motor Vehicle, and Card Services

(QM)William F. Webster

Assistant Commissioner

Office of Assisted Acquisition Services (QF)

Mary A. Davie Assistant Commissioner

Office of Assisted Acquisition Services (QF)

Mary A. Davie Assistant Commissioner

Office of Integrated Technology Services (QT)

Edward J. O’HareAssistant Commissioner

Office of Integrated Technology Services (QT)

Edward J. O’HareAssistant Commissioner

Office of the Controller (QB)

Jon A. JordanController

Office of the Controller (QB)

Jon A. JordanController

Office of the Chief Information Officer (QI)

Elizabeth F. DelNegroActing Chief Information

Officer

Office of the Chief Information Officer (QI)

Elizabeth F. DelNegroActing Chief Information

Officer

Office of Customer Accounts and Research

(QC)

Gary FeitAssistant Commissioner

Office of Customer Accounts and Research

(QC)

Gary FeitAssistant Commissioner

Office of Acquisition Management (QV)

Steven J. Kempf Assistant Commissioner

Office of Acquisition Management (QV)

Steven J. Kempf Assistant Commissioner

Office of Acquisition Operations (QMA)

Rebecca A. KosesDirector

Office of Acquisition Operations (QMA)

Rebecca A. KosesDirector

Travel and Transportation Services (QMC)

Timothy J. BurkeDirector

Travel and Transportation Services (QMC)

Timothy J. BurkeDirector

Office of Motor Vehicle Management (QMD)

William A. TothDirector

Office of Motor Vehicle Management (QMD)

William A. TothDirector

Office of Charge Card Management (QMB)

David J. SheaDirector

Office of Charge Card Management (QMB)

David J. SheaDirector

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Office of Charge Card Management (OCCM) Organization

David J. SheaOffice of Charge Card

ManagementDirector

David J. SheaOffice of Charge Card

ManagementDirector

Perry HamptonUtilization and Analysis

DivisionDirector

Perry HamptonUtilization and Analysis

DivisionDirector

Erin VanDagnaService Delivery Division

Director

Erin VanDagnaService Delivery Division

Director

Beverly CraigCharge Card Acquisition

Support DivisionDirector

Beverly CraigCharge Card Acquisition

Support DivisionDirector

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GSA SmartPay® Program Overview

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DID YOU KNOW…$970 was charged on the GSA SmartPay® charge card every second in FY08

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.

The GSA SmartPay® Program is the largest government charge card program in the world


Transition to GSA SmartPay® 2


GSA SmartPay® 2 Transition Statistics

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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


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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

GSA SmartPay® 2 Transition Lessons Learned


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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

GSA SmartPay® 2 Transition Lessons Learned Continued


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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

GSA SmartPay® 2 Transition Lessons Learned Continued


GSA SmartPay® Program Performance


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Q. What was the approximate amount of program spend, number of transactions and number of cardholders in FY08?

A. $30 billion, 50 million, 1 million

B. $20 billion, 100 million, 1 million

C. $30 billion, 100 million, 3 million

D. $40 billion, 150 million, 3 million


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?

A. 4,000

B. 5,400

C. 8,000

D. 2,500

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Q. In FY08 agencies/organizations received this net amount of refunds from program banks.

A. $10 million

B. $187 million

C. $500,000

D. $1 million


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?

A. Department of Agriculture

B. Department of Defense

C. Department of Veterans Affairs

D. U.S. Postal Service

E. Department of Interior

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Relevant Legislation and Regulation


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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.

A. Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-222)

B. Omnibus Appropriations Act of 2009 (P.L. 111-8)C. The American Recovery and Reinvestment Act of 2009 (P.L. 111-5)

http://www.recovery.gov/


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Q. Which of the following payments would be subject to 3% withholding under the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA)?

A. $5,000 recurring utility payment paid using the Purchase Card

B. $8,000 in CBA Travel expenses

C. $9,000 emergency Purchase Card payment

D. $11,000 non-emergency Purchase Card payment

E. All of the above

http://www.thomas.gov


Q. The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) 3% withholding applies to all GSA SmartPay® 2 charge cards.

A. True

B. False

Most payments for individual travel, lodging, and meal expenses would fall beneath the $10,000 payment threshold

23http://www.irs.gov/pub/irs-tege/2008_0104_0001_1.pdf


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?

A. 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

B. Additional Purchase Card accounts can be established with a Recovery Act accounting code as a default

C. 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

D. All of the abovehttp://www.omb.gov

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Q. What is the micro-purchase threshold for contingency operations?

A. $10,000B. $5,000C. $15,000D. There is no micro-purchase threshold for contingency operations

http://acquisition.gov/far/loadmainre.html


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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:

A. 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)

B. Purchase cardholders must review and reconcile their card statements and forward to the appropriate certifying official

C. Penalties are enforced for violations of improper charge card useD. Risk assessments and audits are required by the Inspector GeneralE. The executive agency/organization is not responsible for disputing

centrally-billed unallowable and erroneous charges

http://www.govtrack.us/congress/bill.xpd?bill=s111-942


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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:

A. GSA OCCM has the authority to help agencies/organizations improve controls over independent receipt and acceptance

B. GSA OCCM has the authority to help agencies/organizations with asset accountability

C. GSA OCCM has the authority to impose financial liability for unauthorized purchases

D. None of the above

http://www.gao.gov


Charge Card Management Best Practices


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Q. Your agency/organization Fleet Card can be used for a vehicle leased through GSA Fleet.

A. True

B. False

Only the GSA Fleet Services Card can be used for vehicles leased through GSA Fleet


Q. According to OMB Circular A-123, Appendix B, what specific risk management controls, policies, and practices are required for addressing payment delinquencies?

A. Split disbursement

B. Salary offset

C. Split disbursement and salary offset procedures

D. Due process requirements prior to salary offset

E. All of the above

30www.whitehouse.gov/omb/circulars/a123/a123_appendix_b.pdf


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Q. A purchase cardholder is asked to make a $4,000 transaction in a non-emergency. What should the cardholder do?

A. 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

B. Request the merchant to manually authorize (force) the transactionC. The cardholder should split the transaction into two separate

transactions under the micro-purchase thresholdD. None of the above


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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?

A. GSA SmartPay® Travel Card with normal agency/organization defined transaction limits

B. Debit Card

C. Stored-value Card

D. Contactless Card


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Q. When can a government employee use their Purchase Card to buy an iPod?

A. Anytime, as long as the iPod is paid for with agency/organization funds

B. NeverC. Only when the iPod supports an agency’s/organization’s missionD. When you are buying a gift for a co-worker


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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:

A. Terminate the contractor’s right to proceedB. Initiate suspension measuresC. Take no actionD. Terminate the contractor’s right to proceed and initiate suspension

measures (A and B)

http://www.acquisition.gov/FAR/current/html/Subpart%203_2.html#wp1085016


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?

A. Yes

B. No

Each state has different tax exemption rules. Please refer to the GSA SmartPay® website (www.gsa.gov/smartpay) 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.

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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?

A. Identification of key management officials and their responsibilities for each charge card program

B. Establishment of a process for formal appointment of cardholders and approving officials, where applicable

C. Implementation of a process to ensure the credit worthiness of new charge card applicants

D. Description of agency/organization training requirementsE. Management controls, policies, and practices for ensuring

appropriate charge card and convenience check usage and oversight of payment delinquencies, fraud, misuse, or abuse

F. All of the above

www.whitehouse.gov/omb/circulars/a123/a123_appendix_b.pdf


The Future of the GSA SmartPay® Program


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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

The Future of the GSA SmartPay® Program


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Training Resources GSA SmartPay® Annual Training Conference

GSA SmartPay® online training: • Cardholders: Charting the Course http://www.gsa.gov/sppurchasetraining• A/OPCs:

http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_BASIC&contentId=13032

Agency/organization-provided training

Bank-provided training

Materials available online, and hard copies may be ordered by visiting the http://apps.fss.gsa.gov/cmls/index.cfm

• Mini card-sized brochure – “Helpful Hints for Purchase Card Use,” “Helpful Hints for Travel Card Use,” and “Helpful Hints for Fleet Card Use”


David J. Shea, CPCM, PMP

[email protected]

(703) 605-2867

Please provide your feedback and thoughts about the current

and future program at: www.gsa.gov/gsasmartpay

under “GSA SmartPay® Program Feedback Form”

Thanks for Your Time and Attention!

www.gsa.gov/gsasmartpay

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