GSA SmartPay in More Than One Flavor: Innovative Products & Services

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GSA SmartPay in More Than One Flavor Innovative
Products Services
Erin VanDagna Camesha Everett Office of Charge
Card Management (OCCM)12th Annual GSA SmartPay
Training Conference August 10 - 12,
2010 Atlanta, GA
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Value to the Customer

• Gain a general understanding of the GSA SmartPay
  Program innovative products and services,
  specifically
• How they are being piloted
• Where they are being piloted
• What are the benefits

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Agenda

• GSA SmartPay2 Program Overview
• Encouraging Innovation
• Vision for the Future Products and Services
• Panel GSA SmartPay in More Than One Flavor
• Questions

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GSA SmartPay2 Program Overview
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GSA SmartPay2 Program Overview

• Enables over 350 Federal agencies/organizations
  to
  obtain charge card products and services
  through master contracts
  that GSA established with three
  banks Citibank, JPMorgan Chase,
  and U.S. Bank
• Agencies/organizations issued task orders against
  these master contracts to obtain charge card
  products and services
• Agencies/organizations pay no direct fees to use
  the program
• Period of performance for existing contracts is
  through 2018

DID YOU KNOW 943 was spent on the charge cards
every second in FY09
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Program Performance GSA SmartPay by the
Numbers(Omits FY1998 data)
Past Performance
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How We are Encouraging Innovation

• Comprehensive and flexible master contract
• Strong customer orientation and frequent customer
  contact/support
• Test and share best practices
• Ongoing market research and regular meetings with
  industry
• Beyond Plastics strategy and conferences
• Balanced customer advocacy and program leadership
• Training workshops, guides and GSA SmartPay
  Annual Training Conference

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GSA SmartPay Center for Charge Card Innovation
Mission The mission of the Center for Charge Card
Innovation is to identify, develop, test and
offer, through the GSA SmartPay2 Master Contract,
new products and services to meet evolving
agency/organization needs.

• The Federal government is a unique commercial
  card and payment customer with requirements that
  are mission sensitive
• The vision of the Center for Charge Card
  Innovation is a virtual center that serves as a
  leader in identifying, developing, and piloting
  Federal payment solutions
• As new products and services are introduced in
  the industry, the Center for Charge Card
  Innovation will collaborate with industry to
  serve as the launching pad for experimenting with
  new products and services to ensure high quality
  and successful results
• The GSA SmartPay2 program provides
  agencies/organizations with innovative products
  and services to advance their respective charge
  card programs beyond traditional card services

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Hallmarks of an Innovative Charge Card Program

• Challenging the Status Quo
• Have you analyzed your business processes?
• GSA SmartPay2 products and services can be
  utilized to provide more streamline, efficient,
  and transparent solutions for your
  agency/organization
• Have you considered the information management
  implications?
• Open Government Initiative (M-10-06)
• Have you considered sustainable practices?
• Federal Leadership in Environmental, Energy and
  Economic Performance (Executive Order 13514)
• Are you utilizing all the services available to
  you?
• Reach out to your GSA SmartPay point of contact
  and/or your contractor bank to discuss business
  challenges and potential solutions

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Vision for the Future Products Services
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Contact Contactless Chip Cards
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Note The GSA SmartPay2 Master Contract offers
the use of chip technology for customer
agencies/organizations
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Grants Funding Pilot
DID YOU KNOW If 10 of Federal discretionary
grant spending transacted with a GSA SmartPay
solution, the Federal government could realize
260 million in annual refunds Applied an
average 40 refund basis points to eligible
population

• Grant-making agencies face challenges of
  efficiency,
  cost-effectiveness, and
  transparency
• There is an increased need for improved internal
  
  controls, oversight, and evaluation
• OCCM has been engaged in discussions with Grants
  
  Subject Matter Experts and has identified
  discretionary grants as the
  target
  population for the grants funding pilot
• The GSA SmartPay grants funding initiative aligns
  with the Administrations Priorities
• Procurement savings of 40 billion annually
  (M-09-25)
• Transparency and Open Government Directive
  (M-10-06)
• Innovation, Operational Excellence, Customer
  Intimacy, and Responsible government (GSA
  Administrators Priorities)

Source GAO-06-566 Grant Management Grantees
Concerns with Efforts to streamline and Simplify
Process Source GAO-06-1046 Grants Management
Enhancing Performance Accountability Provisions
Could Lead to Better Results
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Grants Funding Pilot (contd)

• There are numerous benefits to extending the GSA
  SmartPay program to Federal discretionary grants
  programs

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Point of Sale Discount Recognition

• Pursuing a point of sale discount initiative to
  establish discounts for GSA SmartPay cardholders
  from merchants doing business with the Federal
  Government
• Ensuring that GSA SmartPay purchase cards are
  recognized at the point of sale and that GSA
  Schedule prices are automatically applied, as
  well as any other applicable merchant discounts
• Leverage the Federal Governments purchasing
  scale
• Increased cardholder buying power and refund
  potential
• Requirement for the new Federal Strategic
  
  Sourcing
  Initiative (FSSI) Blanket Purchase
  Agreements
  (BPAs) for office supplies

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Green Purchase Reporting

• Federal agencies are required to use sustainable
  practices when
  purchasing goods and services, as specified in
  a series of
  Executive Orders and in the Federal Acquisition
  Regulation (FAR)
• The Federal green purchasing program requires
  cardholders to
  purchase recycled content products, energy
  efficient products and environmentally preferable
  products
• Using the GSA SmartPay purchase charge card to
  buy "green" products helps agencies/organizations
  promote environmental stewardship and meet
  mission goals in a cost-effective manner,
  enhancing energy security, creating markets and
  increasing worker safety
• The Office of Management and Budget (OMB) and the
  Office of the Federal Environment Executive
  (OFEE) is seeking improvements in the reporting
  of green purchases
• With over 3.1 million cardholders there is an
  opportunity to improve green reporting
  information provided by the GSA SmartPay purchase
  card
• GSA SmartPay program is exploring opportunities
  with industry to create a green purchasing
  indicator

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Executive Order 13514 Federal Leadership in
Environmental, Energy and Economic Performance
Executive Order 13423 Strengthening Federal
Environmental, Energy, and Transportation
Management
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GSA SmartPay More Than One Flavor
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Innovative Products Services in Action

• PANELISTS
• Payment Card Department of State
• Controlled Spend Account US Air Force
• Prepaid Card Department of Commerce

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Payment Card Department of State
Presented by Margaret Colaianni
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Department of State Payment Card

• Background
• Initiated a program in 2008 that allows for
  certain individuals at Department of State to
  apply for a Payment Card for recurring service
• Intended for cardholders who anticipate an annual
  amount of recurring service with the same vendor
  exceeding 2,500 per year for domestic
  cardholders and 3,000 per year for cardholders
  overseas
• Ideally suited for high volume charges such as
  courier services
• Features
• Card-less account number issued on white
  plastic
• Account used for specific purposes and blocked
  for all Merchant Category Codes (MCC) or charges
  except identified vendor (i.e. FedEx)
• Ability to pay recurring services with
  bank-issued account number

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Department of State Payment Card

• Examples of Current Usages
• Courier Services
• Domestic Paper Requirements
• Domestic Utilities
• Overseas Utilities (under pilot)
• Jet Fuel
• Telecommunications

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Department of State Payment Card

• Benefits
• Significant reduction in number of Invoice
  Payments by Finance
• Reduction in interest penalties
• Consolidation of individual charges
• Improved oversight through online vendor review
  tools
• Card-less accounts minimize risk
• Maximizes usage of vendor online tools
• Enhanced data helps spot anomalies
• Vendors are paid in 48 hours
• Questions
• Contact Margaret Colaianni for more info,
  ColaiannMA_at_state.gov or
  [phone]

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Controlled Spend Account US Air Force
Presented by Mike Bilbrey
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Air Force Controlled Spend Account Pilot

• Background
• Piloted use of the Controlled Spend Account (CSA)
  in June 2010 across five Air Force locations for
  3,000 cardholders
• All travelers are eligible and have a Controlled
  Spend Account (CSA) since no
  credit check is necessary
• Mission-driven with spending limits based on
  approved travel authorizations and amount is just
  enough to perform the mission
• CSA is used for all temporary duty (TDY) and
  permanent change of station (PCS) expenses any
  amount owed to traveler at settlement will remain
  on the card for their personal use
• Cardholders are able to contact the contractor
  bank (Citibank) directly to request temporary
  spending limit increases versus relying on the
  A/OPC

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Air Force Controlled Spend Account Pilot

• Benefits
• Eliminates risk of Delinquency and Misuse
• CSA only has value if traveler has approved
  travel orders
• Removes Delinquency related Disciplinary Action
  duties from First Sergeants and Commanders
• Substantially Reduces Workload of A/OPCs
• Group, Squadron, Flight Level A/OPCs duties
  eliminated
• Reduce number of Finance and Transportation Tasks
• Lowers processing cost by reducing the need to
  use Centrally Billed Accounts (CBAs)
• Travel Advances, EFT Rejects, CBA
  Reconciliation
• Ensures more efficient use of funds and resources

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Air Force Controlled Spend Account Pilot

• Travel Card Comparison

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Air Force Controlled Spend Account Pilot

• Pilot
• Concept and System Development
• TDY Interface - Multiple Order Writing and Travel
  Payment Systems
• PCS Interface Development - System Integration
  (Personnel, Finance, Citi)
• Lessons Learned
• Systemic PII Accreditation
• Communication is Key Education and Execution of
  Concept
• Cutover Timing is Everything
• Looking forward
• Roll-out use of the CSA program-wide in fall 2010
  if pilot is successful
• Questions
• Contact Mike Bilbrey for more info,
  mike.bilbrey_at_pentagon.af.mil

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Prepaid Card Department of Commerce
Presented by David Carter
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Department of Commerce Prepaid card

• Background
• The Presidents Memorandum on Government
  Contracting, issued on March 4, 2009
• Requires agencies to review existing contracts
  and acquisition practices and develop a savings
  plan
• Requires 7 percent savings by the end of FY 2011
• The Department has potential to realize cost
  savings, increase refunds, reduce administrative
  cost and improve accounts payable processes
  through strengthening the Purchase Card Program.

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Department of Commerce Prepaid card

• Optimizing the Purchase Card Program
• Use as a Payment Tool
• Virtual Payment Cards
• Single Use Accounts
• Declining Balance Cards
• Prepaid Cards
• Maximizing use of additional Tools and Services
• Electronic Invoicing
• Accounts Payable Analysis
• Increase Supplier Purchase Card Acceptance
• Interagency Agency Agreements
• Same Day Pay
• Standardize and Consolidate Administrative
  Functions
• Perform reconciliation and account
  reclassification in servicing banks electronic
  access system

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Department of Commerce Prepaid card

• Potential Cost Savings using Available Tools

• Questions, contact David Carter at
  dcarter_at_doc.gov or [phone]

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Resources
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General Resources

• GSA SmartPay Website www.gsa.gov/gsasmartpay
• Bank Contact Info
• Citibank http//www.cards.citidirect.com/welcome.
  asp
• 1-800-790-7206 (customer service)
• JP Morgan Chase https//www.paymentnet.com/Login.
  asp
• 1-888-297-0781 (customer service)
• U.S. Bank https//access.usbank.com/cpsApp1/index
  .jsp
• 1-888-994-6722 (customer service)

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Other GSA SmartPay Courses being offered

• GSA SmartPay2 Purchase Card Basics
• GSA SmartPay2 Fleet Card Basics
• GSA SmartPay2 Travel Card Basics
• GSA SmartPay2 Master Contract Basics
• GSA SmartPay Program Update
• Effective Oversight of Your GSA SmartPay Program
• Basic Charge Card Payment Reconciliation
• Navigating the GSA SmartPay Website

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Questions? Contact Us Erin VanDagna,
erin.vandagna_at_gsa.gov, [phone] Camesha
Everett, camesha.everett_at_gsa.gov, (703)
605-1834 GSA SmartPay Program Support Phone
[phone] E-mail gsa_smartpay_at_gsa.gov
www.gsasmartpay.gov
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