Presented by: Jeff Redding Soldier Systems Center – IMD NDiV Incorporated

1. Presented by:Jeff ReddingSoldier Systems Center – IMDNDiV Incorporated Purchase Card Management System ESSENTIAL IN PEACE, INDISPENSABLE IN WAR Army Materiel Command Army Materiel Command

2. PCMS - Stats • Number of Users: 5350 • Number of Card Holders: 2100 • Number of Billing Officials: 850 • Actions (Purchases) Processed to Date: 575,000 • $ Value of Actions Processed to Date: $725,000,000 • Actions Processed in FY2002: 155,266 • $ Value of Actions Processed in FY2002: $224,010,129

3. PCMS – How it came out • Natural addition to a front end procurement system in place at Soldier Systems Center – Natick – July, 1997 • Selected as AMC Standard • Built as own product and web-enabled • Deployed to first location, Joint Munitions Command – Rock Island, November, 1998 • Most recent deployment – HQ Army Materiel Command – April, 2000 • Embraced/Integrated US Bank CARE system into the process – April, 2001

4. PCMS - Benefits • Centralized or Portable • Four Locations host their own PCMS (Soldier Systems Center – MA, Army Research Labs – MD, Redstone Arsenal – AL, Tank-Automotive and Armaments Command – MI) • Site at Aberdeen, MD hosts the PCMS for numerous locations (Aberdeen Proving Grounds - MD, Soldier & Biological Chemical Command - MD, Dugway Proving Grounds – UT, Yuma Proving Grounds – AZ, White Sands Missile Range – NM, HQ Army Materiel Command – VA, Cold Regions Test Center – AK and many more associated organizations)

5. PCMS - Benefits • Tried and Tested: 6+ years and 575,000 purchases • Experience With Most All Government Purchase Card Use Scenarios (Purchase, Training, Payment, etc) • Large, Varied Customer Base with Purchases across many lines of accounting. • Large, Varied Card Holder Base: From the “stand-alone” cardholder to “centralized” cardholders. • Flexible & Adaptive To Change • Realignments Transparent To Users In Most Cases

6. PCMS – Benefits • Is the PCMS Fraud Proof? GAO spent eight weeks at the Soldier Systems Center and found no fraud, waste or abuse • Excellent Tool For Providing Proper Oversite and Management Controls • Brings those “Associated” with card purchasing into an on-line process and gives them easy access to information: Auditors/IG, Resource Managers, Property, Customers/Requestors, IT, etc. • Captures all information regarding a purchase: line item details, vendor details, funding details, requestor details, justifications, etc. • Reporting and Reporting Potential

7. PCMS – Benefits • Open and Searchable Environment

8. PCMS – Benefits • Control Factors: An organization can enable many controls or none at all • Pre-Purchase Approvers: Most everyone uses the PCMS for Fund Certification Approvals • Other Common Possible Pre-Purchase Approvers: Billing Official, DOIM/ADP Equipment, Hazardous Materials, Property Book, Equipment, Safety • Other Somewhat Unique Pre-Purchase Approvers: Subscriptions, Fund Propriety Review, IOB Review, Firefighters, Chemicals, Microorganism or Biological Toxin, Test Management, Budget Analyst, Contracting (if over $2500), SBA (if over $10,000), Supply Support, Director, Branch Chief, Division Chief, Classified/Sensitive, Public Works • Card Holder Placed On Disciplinary Action – AOPC Approval Rq’d

9. PCMS – How Does It Work • A new Credit Card Purchase Request Document is created by someone (requestor/customer, card holder, someone else) • All information pertaining to the purchase is entered (Funding information may be entered later by the fund certifier). Approvals needed entered. • Document routed for approvals and approvals given. Note: emails and URL hotlinks help facilitate quick processing. • Card holder places order with vendor and marks their request document as ordered. • Every month card holder/billing official reconciles bank statement with request documents on “PCMS Payment Processing Documents”

10. PCMS – How Does It Work • Works with US Bank CARE System. Bank Statement Posted in PCMS

11. PCMS – Benefits • PCMS helps expedite statement approval process, eliminating delinquencies and maximizing rebates • Email notifications and hotlinks carry the card holders and billing official through the process • PCMS links card holders and billing official into US Bank CARE system • No re-allocation needed to be done in CARE

12. PCMS – Benefits • Using the credit card as a Payment Vehicle is happening in PCMS and CARE • Loosely quoting a Director of Acquisition, “We are able to reconcile, in one afternoon, statements which result in $150,000 worth of rebates a quarter using PCMS and we wouldn’t be able to do it otherwise.” • In FY2002, 0.5% of Actions recorded in PCMS were greater than $25,000. These actions accounted for 39% of dollars recorded. • Average action of over $25,000 was worth $120,000

13. PCMS – How Does It Work • PCMS routes transactions to the financial system • PCMS obligates dollars on a daily basis • PCMS re-disburses dollars on a monthly basis • In the end, the financial system has what PCMS sends

14. PCMS – Where Do We Go From Here • PCMS can accommodate any purchase card process throughout DOD • May we demo it?