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

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GSA SmartPay Program Update
David J. Shea, CPCM, PMPDirector, Office of
Charge Card Management (OCCM)Federal Acquisition
Service
April 2008
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Value to the Customer

• Gain a general understanding of the GSA SmartPay
  Program
  
• The value of charge cards to government agencies
• The value of the GSA SmartPay Program to its
  customer agencies
  
• Learn what improvements have been made under the
  GSA SmartPay 2 Program
  
• 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,
  how to complete transition activities, 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

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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 your participation in todays 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 approximately 3
  million government purchase, travel, fleet, and
  integrated charge cards
• GSA SmartPay, established in 1998, is the
  federal government-wide charge card program that
  provides program service to over 350 federal
  agencies, organizations, and Native American
  tribal governments
• One GSA Master Contract with (currently) 5 banks
  provides card products and services to all 350
  agencies, organizations, and tribes
  

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Program Overview

• Charge cards provide the following benefits
• Administrative savings and efficiency, estimated
  at 1.8 billion in administrative processing cost
  avoidance (e.g., reduced procurement time,
  streamlined payment procedures and paperwork) in
  FY07 for purchase cards alone
• Refunds based on dollar volume and payment
  performance
  
• 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
  
• Access to merchants offering Point-of-Sale
  discounts, including Office Depot, Home Depot,
  etc.
  
• Program-wide representation on regulations and
  issues impacting the program
  
• OCCM monitors legislation and communicates
  potential impacts on agencies/organizations

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Program Overview

• In FY07 alone
• Total FY07 program spend was over 27 billion, a
  4.8 increase over FY06
  
• Over 91.5 million purchase, travel, and fleet
  transactions were processed through approximately
  3 million cards
  
• Agencies earned over 166 million in refunds
• The ten largest customers (across business lines)
  account for more than 90 of total program spend

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Program Overview - Purchase
FY07 - 18.7 billion in spend 25 million
transactions 283,000 cardholders
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Program Overview - Travel
FY07 - 7.2 billion in spend 42 million
transactions 2 million cardholders
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Program Overview - Fleet
FY07 - 1.2 billion in spend 24 million
transactions 828,000 cards
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GSA SmartPay 2

• The current GSA SmartPay contract expires on
  November 29, 2008
  
• The successor contract, GSA SmartPay 2, was
  awarded ahead of schedule on June 7, 2007
  
• All agencies must transition to GSA SmartPay 2
  by November 30, 2008

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GSA SmartPay 2 Card Design Mock-ups
Purchase Card
Travel Card
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GSA SmartPay 2 Card Design Mock-ups
Fleet Card
Integrated Card
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GSA SmartPay 2 Program Improvements

• 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
  program performance for OCCM and agencies

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GSA SmartPay 2 Program Improvements

• Improved Program Technology
• Increased capability of EAS systems to 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

• Contactless cards facilitate faster
  point-of-sale transactions the card does not
  leave the hand of the cardholder
  
• Debit cards help to control the amount of
  outstanding credit with cardholders
  
• Pre-paid (stored value) cards provide
  capability to load and reload cards with specific
  dollar values. Cards can be issued with required
  value on short notice.
• Cardless accounts provide established
  vendor-specific charge accounts without physical
  cards
  
• Travelers and convenience checks improve
  ability to issue and reconcile checks online,
  including features 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 GSA
  SmartPay Master Contract to the GSA SmartPay 2
  Master Contract
• Each agency/organization is responsible for
  transitioning its program from GSA SmartPay to
  GSA SmartPay 2
  
• All charge cards must be cancelled and replaced
  with new cards no later than November 29, 2008

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Transition to GSA SmartPay 2

• Transition Timeline (Larger Agencies)

Now
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Transition to GSA SmartPay 2
OCCM will assist customers through the transition
by

• Working to facilitate a smooth government-wide
  transition to the GSA SmartPay 2 Program
  
• Providing support to agencies/organizations as
  needed through
  
• Regular A/OPC meetings
• Newsletters
• Discussions with Dave
• Training
• One-on-one meetings as needed
• Working to minimize the impact of transition on
  cardholders and other stakeholders
  
• Addressing transition issues and challenges at
  the program level as they arise

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Transition to GSA SmartPay 2
OCCM will assist customers through the transition
by (cont.)

• Tracking Agency Transition Status Reports
  (ATSR)
  
• Milestone tracking tool to support transition
  efforts of 32 designated agencies/organizations
  
• Provides OCCM and the Office of Management and
  Budget with insight into the government-wide
  transition status
  
• Agencies/organizations which have awarded task
  orders represent approximately 32 of total FY07
  program spend and 50 of total FY07 program cards
  (per February 26 ATSR)
• Next ATSR is due April 26
• Conducting GSA SmartPay 2 Outreach Campaign to
  build cardholder awareness of transition

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Transition to GSA SmartPay 2

• OCCM has developed tools to support
  agencies/organizations in their transition
  planning efforts
  
• Transition Executive Briefing
• Transition Quick Reference Guide
• Pre- and Post- Award Checklists
• Transition FAQs
• Communications Planning Tool
• Agency/Organization Needs Assessment
• A/OPC Information Technology Quick Reference
• Task Order Type Tool Task Order Guide

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Transition to GSA SmartPay 2 Web Page
http//www.gsa.gov/gsasmartpay
Address
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What Does This Mean for Program Managers? Key
Transition Tasks
Now
Pre-Award Tasks (should be completed)
Post-Award Tasks

• Obtain data from current GSA SmartPay bank
• Cleanse, verify and send data to GSA SmartPay
  2 bank
  
• Develop card activation and distribution plan
• Bank EAS, interfaces, and other systems tested
  and ready to activate
  
• New cards deployed users trained
• Develop contingency plan
• Card closeout procedures

• Develop communications plan
• Define needs/requirements
• Determine task order type
• Develop/issue task order request
• Evaluate and award task order

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What Does This Mean for Program
Managers?Post-Award Tasks

• The post-award transition phase requires
  significant efforts to coordinate activities with
  the current bank, the new bank, and internal
  agency stakeholders.

Intra-Agency
GSA SmartPay bank
GSA SmartPay 2 bank

• Establish communication and coordination
  procedures with bank
  
• Confirm task order variances and deliverables
• Plan logistics for card distribution and
  activation, including inserts and activation
  stickers
  
• Complete IT-related tasks
• Plan/coordinate user training

• Validate master file data
• Develop effective cardholder communications
• Develop/implement plans to reduce and deal with
  trailing transactions (subscriptions, travel
  vendor accounts)
  
• Update card policies and internal training on new
  card policies
  
• Develop contingency plans

• Identify critical data to be obtained from
  current bank (master file/cardholder data)
  
• Establish card closeout procedures

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What Does This Mean for Program Managers?
Considerations

• Have you thought about
• Which agency policies/procedures should be
  refreshed?
  
• Will there be any restrictions on card use
  leading up to transition?
  
• What are the old card destruction procedures?
• What record retention policies for closing out
  the current contract need to be followed?
  
• How will trailing transactions from subscriptions
  and vendor accounts be dealt with?
  
• How will new account numbers be communicated to
  travel vendors?
  
• How will fleet cards be distributed to their
  assigned vehicles?
  
• What will be communicated to agency cardholders
  so that they know when to activate/use GSA
  SmartPay 2 cards?

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What Does This Mean for Program Managers?
Contingency Planning

• Work with the appropriate bank and agency
  personnel to
  
• develop contingency plans around
• Cardholders who have not received GSA SmartPay 2
  cards by the cut-over date (especially those on
  TDY status)
  
• Cardholders that use their old GSA SmartPay
  card after the cut-over date
  
• Recurring charges (subscriptions, vendor
  accounts)
  
• EAS or other systems that are not ready by
  cut-over date, or any system malfunctions (e.g.,
  data breaches) that occur around the cut-over date

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What Does This Mean for Cardholders?

• You may receive new cards before the date your
  agency transitions to GSA SmartPay 2 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 GSA SmartPay 2
• 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 have a new EAS under GSA
  SmartPay 2, particularly those that transition
  to a new bank)

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What Does This Mean for Cardholders?

• Review guidance from your A/OPCs in order to stay
  informed of your agencys transition to GSA
  SmartPay 2 and your role in it complete tasks
  as requested, for example
• Apply for new cards in accordance with your
  agencys procedures
  
• Keep an eye out for your new card to arrive and
  activate your new cards as instructed
  
• Destroy your old card in accordance with your
  agencys procedures
  
• Be sure you understand new policies and
  procedures

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What Does This Mean for Cardholders?

• Utilize additional sources of information
  regarding transition to GSA SmartPay 2,
  including
  
• 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

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Vendor Brochure
GSA SmartPay 2 Ad and Poster
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Post-It Notes
Fleet Card Postcard
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All Business Lines Postcard
Integrated Card Postcard
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Travel Card Postcard
Purchase Card Postcard
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Q A
David J. Shea, CPCM, PMP david.shea_at_gsa.gov (703
) 605-2867 Please provide your feedback and tho
ughts about the current and future program at ww
w.gsa.gov/gsasmartpay, under GSA SmartPay Prog
ram Feedback Form
www.gsa.gov/gsasmartpay