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Introduction to the MARAD Purchase Card Program. Module 1 Chapter 1 December 14, 2005. Rita Thomas Office of Acquisition Maritime Administration Rita.Thomas@dot.gov. Introduction to the MARAD Purchase Card Program. Agenda: Regulation Web Sites What is the Purchase Card Program
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Introduction to the MARAD Purchase Card Program Module 1 Chapter 1 December 14, 2005 Rita Thomas Office of Acquisition Maritime Administration Rita.Thomas@dot.gov
Introduction to the MARAD Purchase Card Program • Agenda: • Regulation Web Sites • What is the Purchase Card Program • About the Convenience Checks • Who Administers the Purchase Card Program • Frequently Asked Questions MARAD Purchase Card Program Chapter 1
Web Sites For Regulations • 1. Federal Acquisition Regulation – www.arnet.gov/far • 2. Transportation Acquisition Regulation – www.dot.gov/ost.m60 • 3. MARAD Intranet - intramarad.dot.gov • 4. Small Business Administration - www.sba.gov
What is the Purchase Card Program? Quick description - The Purchase Card Program allows you to make Gov’t purchases (within restrictions) using a credit card. • Benefits - • Purchase orders not necessary for micro purchases (under $2,500) • Appropriately warranted officials may use card for larger $ purchases • Lowers costs associated with processing small purchases • Shortens acquisition lead time • Purchases automatically recorded in U.S. Bank database (not subject to FPDS reporting) • Payments are made using electronic funds transfer. • Background - • In 1998 - OMB designated GSA to manage the Program • In 2004 - DOT selected U.S. Bank (MasterCard)
About the Convenience Checks • Q: Is the Purchase Card the same as the Gov’t Travel Card? • A: No. You cannot use the Purchase Card for Gov’t travel. • Q: Are Convenience Checks Available to MARAD Cardholders? • A: Yes. In cases where your credit card is not accepted, our agencypermits the use of convenience checks. Convenience checks are to be used only as a last resort. • The purchase card contractor will provide a supply of checks to designated cardholders drawn on the cardholder's purchase card account. The checks will be processed as they are presented for payment. • Convenience checks are multi-copied (one copy for the cardholder's records, the original for the merchant). • There is a 2% fee charged to the total dollar amount when writing convenience checks.
Who administers the Purchase Card Program? • GSA is the contracting agency for the entire program.Each agency defines its internal policies & procedures. • U.S. Bank - Provides credit for MARAD Gov’t Purchase Card uses - Maintains all account; issues cards to cardholders - Provides online transaction reconciliation (Access Online System) - Pays merchants - Investigates disputes. • Office of Acquisition - Delegates limited contracting authority to cardholders - Receives written requests for proposed cardholders - Forwards requests to U.S. Bank for processing - Reviews card use - Audits - Revokes cards if abuse is discovered - Acts in an advisory capacity
Who administers the Purchase Card Program? (continued…..) • Agency Program Coordinator (APC)Is the official liaison between DOT, GSA, and U.S. Bank. • The APC for MARAD is: • Rita C. Thomas • Office of Acquisition • Program Analyst • 400 - 7th Street, SW • Washington, DC 20590 • Telephone: (202) 366-2802 • In the absence of the APC, contact Wayne Leong, at (202) 366-5620
Frequently Asked Questions • Q: May I contact the Purchase Card Contractor Directly? • A: You may contact the purchase card contractor to report a lost or • stolen card and for general information. U.S. Bank 1-888-994-6722 • Q: Who is eligible to Use the Card? • A: Cardholders in Headquarters Program Offices or Field Program • Offices who have been trained to use the purchase card. • Approving Officials in Headquarters Program Offices or Field • Program Offices who have been trained to use the purchase card. • * Approving Officials are not authorized to use their cardholder’s • purchase card to make purchases.
Frequently Asked Questions(continued…..) • Q: How Can I Get a Card? • A: Program Offices and Field Program Offices must submit a memo to • the Director, Office of Acquisition-MAR-380/Washington, DC. • Memo must include: • (1) Name of proposed cardholder and approving official. • (2) Request for delegation of procurement authority. • (3) Monthly spending limit. • (4) Single spending limit. (5) What type of supplies/services the card will be used for. • (6) MAR/MRG Code. • (7) Accounting string that will be applied to the purchase card. • The memo must accompanied by evidence of completed purchase card training. The APC will complete appropriate forms and forward to U.S. Bank. Card is mailed to cardholder within 2 weeks. Cardholder should sign the card immediately. Activate the card by calling the 800 number provided on the card.
Frequently Asked Questions(continued…..) • Q: Should merchants keep your purchase card information in their files • for future purchases? • A: No, you as a cardholder must tell the merchants not to keep any of your • purchase card information in their files for future orders. • Q: Should Government Purchase Card Cardholders pay taxes for • purchases made with the Government purchase card? • A: Government Purchase Card Cardholders should never pay state or local • taxes for purchases made for the Government. (See Attachment A - State • Tax Letter – GSA’s request letter to the states, asking them to continuing to • extend tax exemption status to the federal government credit card purchases)
END Module 1 Chapter 1 Introduction to the MARAD Purchase Card Program Rita Thomas Office of Acquisition Maritime Administration Rita.Thomas@dot.gov
Purchase Card Program Duties and Responsibilities Module 1 Chapter 2 December 14, 2005 Rita Thomas Office of Acquisition Maritime Administration Rita.Thomas@dot.gov
Purchase Card Program - Duties and Responsibilities • Agenda: • What Training is Necessary • Approving Official Duties and Responsibilities • Cardholder Duties and Responsibilities MARAD Purchase Card Program Chapter 2
What Training is Necessary? • If you are a proposed cardholder or approving official, you must successfully complete the Purchase Card Training before applying for your card. • Purchase Card Program Team Personnel are: • Agency Program Coordinator - Rita C. Thomas • Fund Control Officer - Velma Marshall/Mark Truffer • Property Control Officer - Jimmie Gleaton • Accounting Officer - John Hoban/Osvaldo Jorge • Dispute Officer - John Hoban/Rita C. Thomas
Approving Official - Duties and Responsibilities • The Approving Official oversees and reviews purchase card purchases • and the associated documentation maintained by cardholders. • Each approving official: • Reviews cardholder’s electronic transactions and any additional purchase documentation, such as receipts and purchase request. • Timely approves the cardholder's transactions and ensures that purchases are not being split and payments are for purchases which are authorized and made in accordance with procurement regulations;
Approving Official - Duties and Responsibilities (continued…..) • Initiates issuance of purchase cards, upon termination collects purchase cards and forwards to the APC, and removes individuals from the purchase card program when appropriate; • (4) Initiates possible disciplinary actions against abusing cardholders. • Ensures that the inventory and disposition of all items, in particular non-consumable items such as capital equipment, are in accordance with applicable property management regulations. • No cardholder can be his or her own approving official. • If you are an approving official, you cannot designate any person to whom you are subordinate as a cardholder.
Cardholder - Duties and Responsibilities • Cardholder must comply with all applicable regulations and procedures such as the Federal Acquisition Regulations, Department of Transportation Acquisition Regulations and Maritime Administration Guidance. • Cardholders are the Government’s legal agent for each purchase made with the purchase card. You are legally responsible and accountable for each transaction. • Verify the accuracy of your name and address; • Call the toll-free number provided by the purchase card contractor to confirm receipt of your card and to activate your account; • Sign the card and; • Review cardholder guide provided by the card contractor.
Cardholder - Duties and Responsibilities (continued…..) • Each Cardholder is responsible to: • Secure the card • Maintain a purchase card log • Ensure funds availability before purchase • Use the purchase card strictly in accordance with all governing guidelines • Compare prices • Observe all dollars limits on purchases • Use card ethically • Obtain a receipt at the point of purchase and verify it for accuracy • Notify U.S. Bank Government Services of any billing discrepancies posted on your cardholder statement that cannot be resolved with the merchant
Cardholder - Duties and Responsibilities (continued…..) • (10) Reconcile, approve and forward all transactions to the Fund Control Officer • (11) Follow up on all your purchases for delivery • (12) Follow up on all parties involved in the transaction approval process • (13) Do not allow any member of your staff, family or supervisor to use your card. You alone, are authorized to use your card
Cardholder - Duties and Responsibilities (continued…..) • Each Cardholder • Resolves problems with the merchant, such as an incorrect amount charged for goods or services received, and assist the purchase card contractor with any investigation of disputed charges; and • Must cut in half and return the purchase card through the approving official and reconcile transactions, upon termination of employment or no longer participating in purchase card program.
END Module 1 Chapter 2 Purchase Card Program Duties and Responsibilities Rita Thomas Office of Acquisition Maritime Administration Rita.Thomas@dot.gov
Using the Purchase Card Module 1 Chapter 3 December 14, 2005 Rita Thomas Office of Acquisition Maritime Administration Rita.Thomas@dot.gov
Using the Purchase Card • Agenda: • Purchase Limitations • Types of Merchants • Strictly Prohibited Purchases • Guidelines for Using the Purchase Card • Oral Purchase Procedures • What Documents to Maintain • Procedures for Tracking, Receiving and Acceptance of Purchases MARAD Purchase Card Program Chapter 3
Single Purchase Limit • Single Purchase Limit - • Is the limit on the procurement authority delegated to the Cardholder. • Do not exceed unless revised delegation of authority is issued by the Director of Acquisition. • A single purchase may include multiple items. However no single purchase shall exceed the authorized single purchase limit. • The single purchse limit is • Up to $2,500 for program office personnel • Up to $100,000 for personnel possessing appropriate warrant authority.
Monthly Limit • Monthly Cardholder Limit – • Budgetary limit established for the cardholder • The monthly limit represents the cumulative dollar limit for your purchases in one month • It may be set to any dollar amount equal to or greater than single purchase limit • Total $ value of monthly purchases cannot exceed this limit
Purchase Limits If you attempt to make a purchase not within your dollar limits, the purchase card transaction will automatically be rejected at the point of sale. If your office has a request to temporarily raise the monthly limit, contact the APC at (202) 366-2802.
What Types of Merchants Can I Purchase From? • Mail order houses, subscription; • Discount/department stores, miscellaneous general merchandise, duty free stores; • Miscellaneous and specialty retail stores - lumber/hardware, lawn, garden, clothing, home furnishing and equipment, household supplies; • Government services not elsewhere classified; and • Miscellaneous business services.
What Types of Merchants Can I Purchase From?(continued…..) _____________________________________________________________ • Any business supply or service may be purchased, as long as regulations applicable to that specific item or service are followed. • Examples: • If you are purchasing information technology ( computers, videos and DVDs, facsimile, printers, telephones, software, and many other products along with IT services), the products/services you purchase must conform to the technical standards of Section 508 of the Rehabilitation Act, or you may be subject to a complaint requiring you to replace the products. www.section 508.gov includes more information on this law and resources to help you buy products/services that comply with the accessibility requirements of section 508. • Please contact the Chief Information Officer (CIO) (MAR-340) for approval before purchasing information technology. Cardholders must ensure the IT checklist is completed and signed by the CIO. CIO’s approval of the check list constitutes approval of the purchase.
What Types of Merchants Can I Purchase Form?(continued…..) _____________________________________________________________ • Prior to purchase of property items you must get approval from the Office of Management Services (MAR-310). • Buy Green • When you use your purchase card to buy “green” products, you and your agency are helping to perform the mission in a cost-effective manner, enhancing energy security, creating markets and promoting environmental stewardship. • Recyclable or recycled materials will be purchased to the maximum extent practicable, consistent with Federal law and procurement regulations - “RCRA, section 6002”, such as paper, toner cartridges etc..
What Types of Merchants Can I Purchase Form?(continued…..) _____________________________________________________________ (A). Buying recycled content products The Resource Conservation and Recovery Act requires the purchase of recycled content products designated by the Environmental Protection Agency (EPA). The EPA maintains a list of designated recycled-content products and recommends recycled-content levels that you should use when buying these products. To date, 54 recycled content products in 8 categories have been designated ranging from construction products to office products. Example of recycled content products are recycled content copier paper and re-refined lubricating oil. Refer to www.epa.gov/cpg for list of products, EPA’s recommendations, and additional information
What Types of Merchants Can I Purchase Form?(continued…..) _____________________________________________________________ (B). Buying biobased products Go to www.ofee.gov and click on Green Purchasing for additional information. (C). Buying energy efficient products Refer to www.eren.doe.gov/femp/procurement for efficiency recommendations, cost-effectiveness examples, buyer tips, product sources, and for additional information. (D). Buying environmentally preferable products Refer to www.epa.gov/oppt/epp for summaries of the pilot projects, sample contract language, standards information, product sources, and additional information.
Strictly Prohibited Purchases • These items are NEVER to be purchased using the purchase card: • (1) Personal Purchases • (2) Cash Advances • (3) Advance Payments • (4) Airlines, Bus, Boat, or Train Tickets • (5) Rental or Lease of Motor Vehicles on official Travel (exception on bus rental for Maritime hosted events or for the transport of the USMMA midshipmen)
Strictly Prohibited Purchases (continued…..) • (6) Lodging, Travel Expenses, Beverages or Meals (excluding conference rooms, meetings spaces, and local transportation services such as metro farecards, subway tokens etc.) • (7) Rental or Lease of Land or Buildings • (8) Telecommunications (telephone) Services, i.e., major systems such as FTS 2000 or DSN • (9) Repairs on Motor Vehicles in the GSA Fleet Management Program and or Department owned or Commercially leased vehicles. (Exceptions, when authorized, are MARAD owned vehicles over 10 years old where repairs do not exceed $1,500.00 per year) • Temporary Secretarial Support Services • IT equipment or services not coordinated with the Office of Chief Information Officer (MAR-340)
Can I Buy Services? • Yes. • Your purchase card can be used to purchase services that comply • with the dollar limitations, merchant category restrictions and • authorized uses of the card.
About Your Government MasterCard • Your Government MasterCard: • Has your name embossed on it; • May only be used by you; and • Shows the seal of the U.S. and the words "United States of America" imprinted on it to avoid being mistaken for a personal credit card. • Use of the purchase card should be consistent with: • Established guidelines for required sources of supply and applicable acquisition procedures • The acquisition rules established in the Federal Acquisition Regulations (FAR) • Agency/Organization policies and procedures.
Guidelines for Using the Purchase Card • Use the MARAD Purchase Card Checklist. (See - Attachment B ) • FAR Part 8 – Required Sources of Supplies and Services • The Federal Acquisition Streamlining Act did not abolish the priorities for use of the Government supply sources as stated in Part 8 (Required Sources of Supplies and Services) of the Federal Acquisition Regulations. Micro-purchases are not exempt from this requirement. The following information is provided to assist you in locating sources that can supply required supplies and services.
Guidelines for Using the Purchase Card (continued…..) • Required Sources: • Committee for Purchase from People Who are Blind or Severely Disabled* - www.jwod.gov or call (703) 603-7740 • National Industries for the Blind - www.nib.org or call (800) 433-2304. • NISH - www.nish.org or call (703) 560-6800 • GSA Products and Services o GSA Advantage! Http://www.gsaadvantage.gov/ or call (800)525-8027 or fax (800) 856-7057 • GSA Federal Supply Schedules- http://fss.gsa.gov/schedules/ or call (800) FSS-0070 • Federal Prison Industries, Inc. - www.unicor.gov or call (800) 827-3168 • Excess supplies from other agencies - http://fss.gsa.gov/property/ or call (703) 305-7240
Guidelines for Using the Purchase Card (continued…..) Open Market Purchases: If you are not required to get quotations, can you always buy from the same source? Part 13.202(a) of the Federal Acquisition Regulations recommends that micro-purchases be equitably distributed among qualified merchants to the extent practicable.
Oral Purchase Procedures When to use oral purchase procedures: An oral purchase requires no written purchase order or contract. You may make an oral purchase when your requirements can be described in sufficient detail so that the vendor has a clear understanding of what is required, and if the vendor does not need a written purchase order or contract.
How to use Oral Purchase Procedures • You must: • Contact the merchant and identify yourself as a Government employee who is making a purchase with a Government purchase card. • Indicate that the purchase will be tax exempt. (See attached State Tax Exemption Letter – GSA’s Request Letter) • Verify the quantity and quality of the items or service agreement with the merchant; • Ensure that all items purchased are immediately available. No splitting or backordering of purchases is permitted; • Note the purchase in your purchase log. Your log must be maintained electronically in the Purchase Card Reconciliation System (PCRS) accessible via the VOA at http://voa.marad.dot.gov
How to use Oral Purchase Procedures (continued…..) (f)For telephone and mail order - ask the merchant for the total including any shipping and handling charges at FOB destination. Also request that a copy of the charge slip be delivered with merchandise and ask not to be billed until shipment has occurred. (g) Request that the merchant to do not keep any of your purchase card information in their files for possible future purchases from you. (h) Use your government address for all shipment of supplies or services. (i) Record the purchase in your purchase log.
More about Oral Purchase Procedures • At the time the merchant obtains credit card authorization, the contractor’s authorization system automatically checks your purchase limits and merchant restrictions. • If the purchase is outside any one of the established limits, it will automatically be rejected at the point of sale. • Merchants who accept credit cards pay the credit card contractor an administrative fee. Ensure that this fee is not added to the total price.
What Documentation to Maintain • You must: • Document the reason for buying from lower priority or non-mandatory source; • Obtain price competition from two or more sources for purchases above the micro-purchase threshold; ($2,500) • Document that the price paid is fair and reasonable; • Report all accountable personal property items to the responsible administrative officer for inclusion in inventory; • Track all purchases made along with the purchase card’s remaining balance; • Maintain a purchase card log; and
What Documentation to Maintain (continued…..) • Keep Your Records: • g. Keep all necessary information on each purchase card transaction. You must have the following information: • The item purchased (including a description, unit number and quantity); • The amount of the purchase; • The name of the merchant;and • The date you received the item purchased. • Failure to retain records can result in excess administrative burden when you attempt to reconcile your monthly transactions.
Procedures for Tracking, Receiving and Acceptance • Instruct the vendor to include the following information on the shipping document or packing slip: • Cardholder's name, mail code, and telephone number; • Work address street address, city & state; and • Purchase card order/delivery number. • If item is picked up, the cardholder must sign the packing slip or sales receipt, and maintain for reconciling cardholder statement. • Acceptance is verifying that the supply or service actually does meet the minimum requirements of the Government and that the bill should be paid in full. Also as part of the acceptance procedure, you should report equipment that you ordered and accepted to your Property Officer for inventory management purposes. Mark your records as completed.
END Module 1 Chapter 3 Using the Purchase Card Rita Thomas Office of Acquisition Maritime Administration Rita.Thomas@dot.gov
Recognizing / Reporting Fraud and Misuse Module 1 Chapter 4 December 14, 2005 Rita Thomas Office of Acquisition Maritime Administration Rita.Thomas@dot.gov
Recognizing / Reporting Fraud and Misuse • Agenda: • What is Fraud? • Recognizing Fraud • Reporting Fraud • Penalties for Misuse MARAD Purchase Card Program Chapter 4
What is Fraud? • Fraud • Is any felonious act of corruption or attempt to cheat the Government or corrupt the Government's agents. • May be committed either by Government employees or by merchants. • There are two responsibilities each cardholder has relative to fraud: • (1) You must be alert to the indicator of fraud, and • (2) You must report suspected fraud immediately.