GSA

1
GSA SmartPay 2 Driving a Successful
Transition
MasterCard Worldwide Global Public Sector Forum
David J. Shea, CPCM, PMPDirector, Office of
Charge Card ManagementMarch 25, 2008
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Agenda

• Recap from Last Years Forum
• Program Overview
• GSA SmartPay 2 New Products and Services
• Transition to GSA SmartPay 2
• GSA Customer Service and Support
• Q A

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Recap from Last Years Forum

• What would happen if the government had to find a
  new way to handle 98 million transactionswith
  the current shortage of contracting and other
  specialists?
• What would happen if 26 billion in government
  purchases, travel transactions, and
  fuel/maintenance disappeared?
• What would happen if banks lost 5 - 10 of their
  total annual card spend overnight?

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Program Overview

• GSA SmartPay, established in 1998, is the
  federal government charge card program that
  serves over 350 federal agencies, organizations,
  and Native American tribal governments
• One GSA SmartPay Master Contract with five banks
  (using 2 associations MasterCard and Visa)
  currently provides card products and services to
  all 350 agencies, organizations and tribes banks
  under the current program include
• Bank of America
• Citibank
• JPMorgan Chase
• Mellon Bank
• US Bank

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Program Overview

• GSA SmartPay is the largest government charge
  card program in the world. In FY07 alone
• Total FY07 program spend was over 27 billion, a
  4.8 increase over FY06
• Over 91.5 million transactions were processed
  through approximately 3 million cards
• Over 174 million in refunds were earned by
  customer agencies/organizations

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GSA SmartPay 2 New Products and Services

• New or Improved Products
• Contactless cards facilitate faster
  point-of-sale transactions
• Debit cards help to control the amount of
  outstanding credit with cardholders
• Pre-paid (stored value) 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 improved
  ability to issue and reconcile checks online such
  as
• Electronic transaction records that must include
  merchant name
• Online imaging of cleared checks

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GSA SmartPay 2 New Products and Services

• 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
• Detailed minimum security standards including
  FISMA and Payment Card Industry (PCI) security
  standards
• GSA has conducted bank security system reviews
  and determined that bank Electronic Access
  Systems (EAS) are Certified and Accredited (CA),
  and are Section 508 compliant
• Increased data requirements more focus on Level
  3 data, which provides better insight into the
  program for agencies/organizations and GSA
  SmartPay

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GSA SmartPay 2 New Products and Services

• Improved Program Technology
• Increased capability of bank EAS systems to
  provide flexibility in reporting and account
  management, including the ability to
• Generate ad hoc reports
• Change category block templates (e.g., MCC
  blocking)
• Dispute transactions electronically
• Enable A/OPCs to turn cards on and off
• Data mining tools provided by associations such
  as MasterCards Expert Monitoring System (EMS)
  offer additional insight into card program data
  and trends
• Transaction monitoring to detect misuse, fraud,
  waste, and abuse (e.g., email alert service)

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GSA SmartPay 2 Card Design Mock-ups
Purchase
Travel
Fleet
Integrated
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Transition to GSA SmartPay 2

• The current GSA SmartPay contract expires on
  November 29, 2008 all charge cards must be
  cancelled and replaced with new cards no later
  than this date
• No later than November 30, 2008,
  agencies/organizations must transition to one of
  the GSA SmartPay 2 banks
• Citibank
• JPMorgan Chase
• US Bank
• Agencies/organizations rely on charge card
  services to support their missions and operations
  ensuring a successful transition, without gaps
  in service, is of utmost importance

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Transition Challenges

• Transition activities require significant
  efforts, and involve many different stakeholders
  
• Cardholders
• Agency executives
• Agency IT personnel and Contracting Officers
• Agency finance and accounting personnel
• Approving officials
• Current GSA SmartPay and GSA SmartPay 2 banks
• Merchants
• Associations
• Fortunately, 10 agencies represent approximately
  90 of total program spend unfortunately, these
  agencies are huge, complex organizations
• Bank of America and Mellon Bank are not
  participants in the GSA SmartPay 2 program all
  Bank of America and Mellon Bank customer
  agencies/organizations must transition to a new
  bank under GSA SmartPay 2

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Transition to GSA SmartPay 2 - Notional
Relationship Diagram
Legal
Fleet Mgmt
Congress/ Legislation
OMB/GAO Compliance
SP1 Bank
Contracting Officers
Senior Leadership
Agency A/OPC Purchase Travel Fleet
GSAs Office of Charge Card Management
Card Processors
Associations
Finance
Procurement
Approving Officials
SP2 Bank
IT
Cardholders
IG
Human Resources
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Transition Timeline
Now

• At this point in time, agencies should be
  finalizing
• task order award activities

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Agency Transition Status Report

• The Agency Transition Status Report (ATSR) tracks
  the transition progress of 32 designated agencies
  and provides
• Agencies with a milestone tracking tool to
  support transition efforts
• GSA SmartPay program and the Office of
  Management and Budget (OMB) with insight into the
  government-wide transition status
• To date, approximately 38 of these designated
  agencies have awarded task orders, representing
  approximately 32 of total FY07 program spend

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Key Transition Activities
Now
Pre-Award Tasks (should be completed)
Post-Award Tasks

• Obtain data from current bank
• Cleanse, verify and send data to GSA SmartPay
  2 bank
• Develop 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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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 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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Post-Award Tasks 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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Post-Award Tasks Tips

• Work closely with the current GSA SmartPay bank
  to
• Obtain master file/cardholder data and hierarchy
  data
• Obtain historical data and/or other data as
  required by agency
• Develop plans to manage trailing transactions
• Establish card closeout procedures
• Develop plans soon after task order award with
  the GSA SmartPay 2 bank to address
• General expectations and communication processes
  with GSA SmartPay 2 bank
• Card distribution and activation procedures
• Testing/deploying EAS and other systems
• Bank training
• Contingency plans

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Contingency Planning

• Work with the appropriate bank and agency
  personnel to
• develop contingency plans around
• Cardholders that 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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GSA Customer Service and Support

• GSAs Office of Charge Card Management (OCCM) is
  dedicated to supporting agencies in their
  transition activities through
• ATSR Tracking
• Transition tools posted on the GSA SmartPay
  website
• GetSmart newsletter and GSA SmartPay Smart
  Bulletins
• GSA SmartPay 2 outreach campaign
• Monthly A/OPC meetings
• Discussions with Dave
• One-on-one meetings
• GSA SmartPay Points of Contact

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Q A
David J. Shea david.shea_at_gsa.gov [phone]
www.gsa.gov/gsasmartpay