David J. Shea Program Director, Office of Charge Card Management Federal Acquisition Service

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Whats New With GSA SmartPay?
David J. SheaProgram Director, Office of Charge
Card ManagementFederal Acquisition Service
May 2007
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Value to the Customer

• Gain a general understanding of the GSA SmartPay
  Program and what to expect under the new GSA
  SmartPay 2 contracts
• The value of charge cards to government agencies
• The value of the GSA SmartPay Program to its
  customer agencies
• New products and services offered under GSA
  SmartPay 2
• Learn about the transition to GSA SmartPay 2
• Learn why the transition is necessary and
  important, when it will occur, what your role is,
  and where to find additional information about
  the transition.

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Agenda

• Welcome
• Program Overview
• GSA SmartPay 2
• Transition to GSA SmartPay 2
• What Does This Mean for Program Managers?
• What Does This Mean for Cardholders?
• Q A

4
Welcome

• What are your objectives for this course?
• What issues would you like to discuss?
• What topics do you want to understand better as a
  result of this course?

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Program Overview

• GSA SmartPay provides federal employees with a
  secure, convenient, and efficient payment and
  procurement tool in the form of 2.9 million
  government charge cards.
• Charge cards provide
• Administrative savings and efficiency, estimated
  at 1.7 billion in administrative processing cost
  avoidance in FY06 for purchase cards alone
• Rebates based on dollar volume and payment
  performance

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Program Overview

• Charge cards provide (continued)
• Access to merchants offering Point-of-Sale
  discounts, including Office Depot, Home Depot,
  etc.
• Electronic transaction data, enabling better
  reporting
• Worldwide acceptance

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Program Overview

• Program benefits
• Training, including GSA SmartPay annual training
  conference
• Travel cards provide access to the City Pair
  program, which saves the government approximately
  2.8 billion/year
• 72 average discount off comparable commercial
  fares

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Program Overview

• GSA SmartPay, established in 1998, is the
  federal government charge card program that
  provides program service to over 350 federal
  agencies, organizations, and Native American
  tribal governments.
• One GSA Master Contract with 5 banks provides
  card products and services to all 350 agencies
  and tribes.

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Program Overview

• In FY06 alone
• Total program spend was over 26.5 billion, a
  6.4 increase over FY05.
• Over 98 million purchase, travel, and fleet
  transactions were processed through 2.9 million
  cards.
• Over 156 million was received by the government
  in refunds.
• The top ten customers account for over 90 of all
  program spend.

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Program Overview
FY06 - 17.7 billion in spend 25 million
transactions 299,000 cardholders
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Program Overview
FY06 - 6.9 billion in spend 40 million
transactions 2 million cardholders
12
Program Overview
FY06 - 1.8 billion in spend 32 million
transactions 659,000 cards
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GSA SmartPay 2

• The current GSA SmartPay contract expires on
  Nov. 29, 2008.
• In general, all charge cards must be cancelled
  and replaced with new cards no later than this
  date.
• Acquisition for GSA SmartPay 2, the successor
  contract, is well underway. Several agency
  customers are involved in the source selection
  process.

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GSA SmartPay 2

• The period of performance of the SP2 Master
  Contract will be 12 years.
• Card transactions under SP2 may begin as early as
  Nov. 30, 2007 and will continue until the end of
  the contract on November 30, 2018.

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GSA SmartPay 2
New cards under SP2
Purchase Card
Travel Card
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GSA SmartPay 2
New cards under SP2
Fleet Card
Integrated Card
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GSA SmartPay 2

• Improvements to the SP2 program
• Increased security requirements increased
  emphasis on security of both personally
  identifiable information (PII) and procurement
  data to minimize risk to individual cardholders
  and to agencies.
• Strategic sourcing support leveraging the
  buying power of the government to achieve savings
  and best value procurement.
• Increased data requirements more focus on Level
  3 data, which provides better insight into the
  program for both agencies and GSA SmartPay.

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GSA SmartPay 2

• Improvements to the SP2 program
• Improved Program Technology
• Increased capability of EAS systems provide
  flexibility in reporting and account management
• Ability to generate ad hoc reports
• Ability to change category block templates (e.g.,
  MCC blocking)
• Ability to dispute transactions electronically
• Improved ability for A/OPCs to turn cards on
  and off
• Transaction monitoring to detect misuse, fraud,
  waste, and abuse
• Email alert service

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GSA SmartPay 2

• Enhanced Products and Services
• Agency executives and A/OPCs will determine which
  new products and services offered under SP2 are
  most appropriate for the agencys unique needs.
  Examples of new products and services which
  agencies may choose to provide include
• Contactless cards faster transactions, the card
  does not leave the hand of the cardholder.
• Debit cards charge card alternative helps to
  control the amount of outstanding credit with
  cardholders.

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GSA SmartPay 2

• Enhanced Products and Services
• Pre-paid (stored value) cards capability to
  load and reload cards with specific dollar
  values. Cards can be issued with required value
  on short notice.
• Cardless accounts provides established
  vendor-specific charge accounts without physical
  cards.
• Travelers and convenience checks improved
  ability to issue and reconcile checks online such
  as
• Electronic transaction record must include
  merchant name
• Online imaging of cleared checks

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Transition to GSA SmartPay 2

• The transition refers to the activities
  involved in the movement from the current Master
  Contracts to the SP2 Master Contracts.
• Every agency is responsible for transitioning its
  program from GSA SmartPay to SP2.

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Transition to GSA SmartPay 2

• Transition Timeline

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Transition to GSA SmartPay 2

• The Office of Charge Card Management will
• Work to facilitate a smooth transition to the
• SP2 contract.
• Provide support to agencies as needed through
  regular A/OPC meetings, newsletters, emails,
  website updates, and phone calls.
• Work to minimize the impact of transition on
  cardholders.

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Transition to GSA SmartPay 2

• The Office of Charge Card Management is
  developing
• tools to support agencies in their transition
  planning
• efforts
• Transition Quick Reference Guide
• Transition Executive Briefing
• Pre- and Post- Award Checklists
• FAQs
• Communications Planning Tool
• Agency/Organization Needs Assessment
• Sample Statement of Work (SOW)

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What Does This Mean for Program Managers?

• Agencies should begin planning now for the
  transition
• to GSA SmartPay 2
• Utilize the transition tools on the website.
• Regular A/OPC meetings will provide additional
  guidance throughout the transition period.
• Agency personnel will need to work together to
  complete the transition this will require
  coordination of A/OPCs, agency executives, IT
  departments, finance managers, and procurement
  personnel.
• Keep cardholders informed of transition timelines
  and activities.
• Contact your agencys Office of Charge Card
  Management Point of Contact if you have questions.

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What Does This Mean for Program Managers?

• Agencies currently being serviced by Bank of
  America will have to transition to a new bank
  under SP2.
• Bank of America has notified the Office of Charge
  Card Management that it will not be participating
  in SP2. If your agency is a Bank of America
  customer, you will be transitioning to a new bank.

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What Does This Mean for Cardholders?

• All existing cards must be canceled no later than
  11/29/08.
• You may receive new SP2 cards before the date
  your agency transitions to SP2 be sure to use
  the correct card at the appropriate time (only
  one card will be operational at a time).
• If you are traveling around the time of your
  agencys transition date, ensure that you have
  your new card with you, and use it for all
  appropriate expenses after the transition date.

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What Does This Mean for Cardholders?

• Ensure that you cancel all automatic or recurring
  charges on your existing cards (e.g.,
  subscriptions), so that they are not charged to
  your old card accounts after your agencys
  transition to SP2.
• Transfer automatic or recurring charges to your
  new cards.
• Reconcile all transactions with your current
  bank.
• Complete Electronic Access System (EAS) training
  as needed (agencies may require a new EAS under
  SP2, especially if they transition to a new
  bank).

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What Does This Mean for Cardholders?

• Stay informed of your agencys transition to SP2
  and your role in it read statement inserts, and
  pay special attention to guidance that you
  receive from your Approving Officials and A/OPCs.
• Apply for new cards in accordance with your
  agencys procedures.
• Activate your new cards.
• Destroy your old cards in accordance with your
  agencys procedures.

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What Does This Mean for Cardholders?

• Stay informed on the upcoming transition to SP2.
  The
• following are good sources of information
• GSA SmartPay website www.gsa.gov/gsasmartpay
• Statement inserts
• Statement messaging
• Emails and guidance from A/OPCs

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What Does This Mean for Cardholders?

• Stay compliant with the requirements of the
  program
• Stay current with program training.
• Use the card in accordance with all agency and
  government guidelines.
• Pay account bills on time
• Salary offset (travel cards)
• Split disbursement (travel cards)

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What Does This Mean for Cardholders?
Continue being a good cardholder -- buy right,
buy smart!
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Q A
David J. Shea, CPCM, PMP david.shea_at_gsa.gov (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
www.gsa.gov/gsasmartpay