Department of Defense Purchase Card Program

1. Department of Defense Purchase Card Program Implementation of Transaction Management and Electronic Data Interchange DoD Joint Program Management Office

2. By FY ‘00, 90 percent of good and services less than $2,500 will be bought using the purchase card. Percentage of Total Micro-purchases Made Using the Purchase Card 90% GOAL 90% purchase card utilization goal achieved by FY 99. DoD Joint Program Management Office DRO 2000 CD:Chapter 1.04 Source: Purchase Card PMO

3. Continued reductions in the total number of transactions of less than $2,500 being processed via ‘traditional’ means. Total Number of Micro-purchase Transactions by Process Type 90% reduction in the number of purchase orders and BPA calls (micro-purchases) processed via traditional means over 7 years. BPA calls & POs Purchase Card Number of Transactions Processed x1,000 DoD Joint Program Management Office DRO 2000 CD:Chapter 1.04 Source: Purchase Card PMO

4. Decrease administrative burden associated with processing micro-purchase transactions through increased purchase card transactions. Annual Savings Associated with Purchase Card Transactions Over $742M* in savings over 7 years on approximately 38 million transactions. Total Annual Savings in $Millions DoD Joint Program Management Office Notes: 1) Purchase Card administrative savings based upon lowest published estimate of $20 saved per transaction over traditional processing means.

5. FY2000 Card Purchases DoD Joint Program Management Office

6. FY2000 Card Sales DoD Joint Program Management Office

7. Why Change Anything? • Increased Rebates • Increased Internal Savings • Decreased Payment Costs • Enhanced Capabilities DoD Joint Program Management Office

8. DOD Purchase Card Program Bank Refunds USA = $2 billion in ‘00 sales 45 35.90 44 37.40 43 38.90 42 40.40 41 41.90 40 43.40 39 44.90 38 46.40 37 47.90 36 49.40 35 50.95 34 52.45 33 54.00 32 55.55 31 57.10 30 58.64 29 60.15 28 61. 41 27 63.25 26 66.35 25 67.95 24* 69.55 22 71.10 21 72.70 20 74.25 19 75.85 18 77.45 17 79.00 16 80.60 15 82.20 14 83.85 13 85.45 12 87.05 11 88.70 10 90.30 9 91.95 8 93.55 Basis Points (.00%) Days after cycle $10.8 - $18.8 Million USA = 31 days/USAF* = 24 days DoD Joint Program Management Office

9. Increased Savings with Web-Based Applications • Reduced Administrative Efforts for APC in Cardholder/Approving Official setup and maintenance • Reduced Administrative Efforts for Resource Managers in allocation/re-allocation of accounting data • Reduced Prompt Payment Interest Penalties • Reduced DFAS costs (64% reduction in LOA cost) • Increased Rebates DoD Joint Program Management Office

10. Increased Capabilities with Web-Based Applications • Real Time review capability for card transactions by APC, AO, CH, RM/FSO • Real Time input capability for account data by APC, RM/FSO • Real Time oversight of cardholder purchases • Automated report/query capabilities • Accurate/Timely financial reporting • Positive funds control DoD Joint Program Management Office

11. Post Obligation ANSI X12.821 Process Invoice ANSI X12.810 Bank web-based data file Agency Program Coordinator CH Cardholders Billing Official Resource Manager

12. FA2 - Electronic Data Interchange “Key” DoD Joint Program Management Office

13. Department of Defense Purchase Card Program In Summery • paperless web-based account setup and maintenance • paperless web-based account statements • paperless approval/certification • electronic download to accounting and finance systems DoD Joint Program Management Office

14. Department of Defense Purchase Card Program Thank Youvisit us at http://purchasecard.sarda.army.mil DoD Joint Program Management Office