GSA SmartPay® 2 Master Contract Basics

1. GSA SmartPay® 2 Master Contract Basics 11th Annual GSA SmartPay® Training Conference Phoenix, AZ July 28-30, 2009

2. Value to the Customer The GSA SmartPay® Master Contract is your blueprint for your agency’s/organization’s task order. True? False? An agency’s/organization’s task order should always mirror image the GSA SmartPay® Master Contract. True? False? Once awarded, your task order must always follow the policies and procedures implemented by GSA. True? False?

3. Agenda Master Contract Basics Understanding Liability Major Program Participants Contract Prohibitions Preventing Misuse and Fraud

4. GSA SMARTPAY® 1 In 1998, GSA contracted with five banks to provide purchase, travel, and fleet card services: The banks were: Bank of America JPMorgan Chase U.S. Bank Citibank Mellon Bank (Purchase only) Collectively these contracts are known as the GSA SmartPay® 1 “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” Master Contract Basics

5. Master Contract Basics (continued) Fixed price, Indefinite Delivery/Indefinite Quantity (ID/IQ) type contract Three-year base period (November 2008 to November 2011) • One four-year option & one three-year option (ending November 29, 2018) • The base year period began on November 30, 2008

6. Master Contract Basics (continued) 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

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

8. Understanding Liability (continued) IBAs are accounts established for individual travelers and used to pay for travel and travel-related expenses. The 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

9. Program Bank Responsibilities 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 automatically provide replacement cards (unless the agency/organization requests that no replacement be provided)

10. Program Bank Responsibilities (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 20 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)

11. Program Bank Responsibilities (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

12. Program Bank Responsibilities (continued) Provide Electronic Access Systems (EAS) with reporting tools Invoices and 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

13. Agency Responsibilities Follow your specific individual agency guidelines/policy Identify/assign appropriate personnel to manage the card program(s) Develop, issue and implement agency policies regarding the management of the card program(s) Pay all CBAs and IBAs on a timely basis

14. Agency Responsibilities (continued) Administer the task order 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 and responsible use of all card(s)

15. A/OPC Responsibilities 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 e-mail alert notifications of card transactions

16. A/OPC Responsibilities (continued) Report suspicious or questionable transactions to proper authorities Answer cardholder questions and provide assistance Deactivate, suspend, or cancel cards as necessary Stay up-to-date on the GSA SmartPay®2 program by attending monthly A/OPC meetings

17. A/OPC Responsibilities (continued) Travel Card A/OPCs 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 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 Work with the fleet manager to insure that the correct card is in the correct car

18. Office of Charge Card Management Responsibilities What does GSA do for you? Administer the Master Contract Develop program guides and provides program 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

19. 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 OCCM Responsibilities (continued)

20. Hold monthly A/OPC meetings Provide guidance on developing Statements of Work (SOWs) Provide assistance with developing task orders Provide assistance with negotiations Coordinate “pool” arrangement Sponsor interagency work groups and roundtables OCCM Responsibilities (continued)

21. On-site bank training requirements have been reduced from 25 A/OPC’s down to 20 A/OPC’s 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 GSA SmartPay® 2 Program Improvements

22. Transaction monitoring combined with e-mail 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 GSA SmartPay® 2 Program Improvements (continued)

23. Program flexibility- providing agencies with flexible options for accessing and customizing program offerings to address their unique operating needs and issues Enhanced program technology- increased emphasis on technologies for account management and streamlined billing and payment processes to generate greater cost savings to the government Interchange rates- lowered interchange rates for government to government transactions are required, as well as reduced rates or other alternative approaches for “large ticket” purchases GSA SmartPay® 2 Program Improvements (continued) 22

24. 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

25. 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

26. Questions? Please provide your feedback and thoughts about the currentand future program at the: http://wwww.gsa.gov/smartpay under “GSA SmartPay® Program Feedback Form” www.gsa.gov/gsasmartpay