GSA SmartPay in More Than One Flavor: Innovative Products & Services

1. GSA SmartPay in More Than One Flavor: Innovative Products & Services Erin VanDagna Camesha Everett Office of Charge Card Management (OCCM)12th Annual GSA SmartPay Training Conference August 10 - 12, 2010 Atlanta, GA

2. Value to the Customer • Gain a general understanding of the GSA SmartPay Program innovative products and services, specifically: • How they are being piloted • Where they are being piloted • What are the benefits

3. Agenda • GSA SmartPay2 Program Overview • Encouraging Innovation • Vision for the Future: Products and Services • Panel: GSA SmartPay in More Than One Flavor • Questions

4. GSA SmartPay2 Program Overview

5. GSA SmartPay2 Program Overview • Enables over 350 Federal agencies/organizations to obtain charge card products and services through master contracts thatGSA established with three banks: Citibank, JPMorgan Chase, and U.S. Bank • Agencies/organizations issued task orders against these master contracts to obtain charge card products and services • Agencies/organizations pay no direct fees to use the program • Period of performance for existing contracts is through 2018 DID YOU KNOW… $943 was spent on the charge cards every second in FY09

6. Program Performance – GSA SmartPay by the Numbers(Omits FY1998 data) Past Performance

7. How We are Encouraging Innovation • Comprehensive and flexible master contract • Strong customer orientation and frequent customer contact/support • Test and share best practices • Ongoing market research and regular meetings with industry • “Beyond Plastics” strategy and conferences • Balanced customer advocacy and program leadership • Training workshops, guides and GSA SmartPay Annual Training Conference

8. GSA SmartPay Center for Charge Card Innovation Mission The mission of the Center for Charge Card Innovation is to identify, develop, test and offer, through the GSA SmartPay2 Master Contract, new products and services to meet evolving agency/organization needs. • The Federal government is a unique commercial card and payment customer with requirements that are mission sensitive • The vision of the Center for Charge Card Innovation is a virtual center that serves as a leader in identifying, developing, and piloting Federal payment solutions • As new products and services are introduced in the industry, the Center for Charge Card Innovation will collaborate with industry to serve as the launching pad for experimenting with new products and services to ensure high quality and successful results • The GSA SmartPay2 program provides agencies/organizations with innovative products and services to advance their respective charge card programs beyond traditional card services 8

9. Hallmarks of an Innovative Charge Card Program Challenging the Status Quo: • Have you analyzed your business processes? • GSA SmartPay2 products and services can be utilized to provide more streamline, efficient, and transparent solutions for your agency/organization • Have you considered the information management implications? • Open Government Initiative (M-10-06) • Have you considered sustainable practices? • Federal Leadership in Environmental, Energy and Economic Performance (Executive Order 13514) • Are you utilizing all the services available to you? • Reach out to your GSA SmartPay point of contact and/or your contractor bank to discuss business challenges and potential solutions 9

10. Vision for the Future – Products & Services

11. Contact & Contactless Chip Cards 11 Note: The GSA SmartPay2 Master Contract offers the use of chip technology for customer agencies/organizations

12. DID YOU KNOW… If 10% of Federal discretionary grant spending transacted with a GSA SmartPay solution, the Federal government could realize ~$260 million in annual refunds* *Applied an average 40 refund basis points to eligible population Grants Funding Pilot • Grant-making agencies face challenges of efficiency, cost-effectiveness, and transparency* • There is an increased need for improved internal controls, oversight, and evaluation** • OCCM has been engaged in discussions with Grants Subject Matter Experts and has identified discretionary grants as the target population for the grants funding pilot • The GSA SmartPay grants funding initiative aligns with the Administration’s Priorities: • Procurement savings of $40 billion annually (M-09-25) • Transparency and Open Government Directive (M-10-06) • Innovation, Operational Excellence, Customer Intimacy, and Responsible government (GSA Administrator’s Priorities) *Source: GAO-06-566 Grant Management: Grantees’ Concerns with Efforts to streamline and Simplify Process **Source: GAO-06-1046 Grants Management: Enhancing Performance Accountability Provisions Could Lead to Better Results 12

13. Grants Funding Pilot (cont’d) There are numerous benefits to extending the GSA SmartPay program to Federal discretionary grants programs

14. Point of Sale Discount Recognition • Pursuing a point of sale discount initiative to establish discounts for GSA SmartPay cardholders from merchants doing business with the Federal Government • Ensuring that GSA SmartPay purchase cards are recognized at the point of sale and that GSA Schedule prices are automatically applied, as well as any other applicable merchant discounts • Leverage the Federal Government’s purchasing scale • Increased cardholder buying power and refund potential • Requirement for the new Federal Strategic Sourcing Initiative (FSSI) Blanket Purchase Agreements (BPAs) for office supplies 14

15. Green Purchase Reporting • Federal agencies are required to use sustainable practices when purchasing goods and services, as specified in a series of Executive Orders* and in the Federal Acquisition Regulation (FAR) • The Federal green purchasing program requires cardholders to purchase recycled content products, energy efficient products and environmentally preferable products • Using the GSA SmartPay purchase charge card to buy "green" products helps agencies/organizations promote environmental stewardship and meet mission goals in a cost-effective manner, enhancing energy security, creating markets and increasing worker safety • The Office of Management and Budget (OMB) and the Office of the Federal Environment Executive (OFEE) is seeking improvements in the reporting of green purchases • With over 3.1 million cardholders there is an opportunity to improve green reporting information provided by the GSA SmartPay purchase card • GSA SmartPay program is exploring opportunities with industry to create a green purchasing indicator 15 *Executive Order 13514 – Federal Leadership in Environmental, Energy and Economic Performance Executive Order 13423 – Strengthening Federal Environmental, Energy, and Transportation Management

16. GSA SmartPay: More Than One Flavor

17. Innovative Products & Services in Action • PANELISTS: • Payment Card – Department of State • Controlled Spend Account – US Air Force • Prepaid Card – Department of Commerce

18. Payment Card – Department of State Presented by: Margaret Colaianni

19. Department of State Payment Card Background: • Initiated a program in 2008 that allows for certain individuals at Department of State to apply for a Payment Card for recurring service • Intended for cardholders who anticipate an annual amount of recurring service with the same vendor exceeding $2,500 per year for domestic cardholders and $3,000 per year for cardholders overseas • Ideally suited for high volume charges such as courier services Features • Card-less account number issued on “white plastic” • Account used for specific purposes and blocked for all Merchant Category Codes (MCC) or charges except identified vendor (i.e. FedEx) • Ability to pay recurring services with bank-issued “account number” 19

20. Department of State Payment Card Examples of Current Usages: • Courier Services • Domestic Paper Requirements • Domestic Utilities • Overseas Utilities (under pilot) • Jet Fuel • Telecommunications 20

21. Department of State Payment Card Benefits: • Significant reduction in number of Invoice Payments by Finance • Reduction in interest penalties • Consolidation of individual charges • Improved oversight through online vendor review tools • Card-less accounts minimize risk • Maximizes usage of vendor online tools • Enhanced data helps spot anomalies • Vendors are paid in 48 hours Questions • Contact Margaret Colaianni for more info, ColaiannMA@state.gov or (703)516-1688 21

22. Controlled Spend Account – US Air Force Presented by: Mike Bilbrey

23. Air Force Controlled Spend Account Pilot Background: • Piloted use of the Controlled Spend Account (CSA) in June 2010 across five Air Force locations for 3,000 cardholders • All travelers are eligible and have a Controlled Spend Account (CSA) since no credit check is necessary • Mission-driven with spending limits based on approved travel authorizations and amount is just enough to perform the mission • CSA is used for all temporary duty (TDY) and permanent change of station (PCS) expenses; any amount owed to traveler at settlement will remain on the card for their personal use • Cardholders are able to contact the contractor bank (Citibank) directly to request temporary spending limit increases versus relying on the A/OPC 23

24. Air Force Controlled Spend Account Pilot Benefits: • Eliminates risk of Delinquency and Misuse • CSA only has value if traveler has approved travel orders • Removes Delinquency related Disciplinary Action duties from First Sergeants and Commanders • Substantially Reduces Workload of A/OPCs • Group, Squadron, & Flight Level A/OPCs duties eliminated • Reduce number of Finance and Transportation Tasks • Lowers processing cost by reducing the need to use Centrally Billed Accounts (CBAs) • Travel Advances, EFT Rejects, & CBA Reconciliation • Ensures more efficient use of funds and resources 24

25. Air Force Controlled Spend Account Pilot Travel Card Comparison 25

26. Air Force Controlled Spend Account Pilot Pilot: • Concept and System Development: • TDY Interface - Multiple Order Writing and Travel Payment Systems • PCS Interface Development - System Integration (Personnel, Finance, & Citi) • Lessons Learned: • Systemic PII Accreditation • Communication is Key – Education and Execution of Concept • Cutover – Timing is Everything • Looking forward • Roll-out use of the CSA program-wide in fall 2010 if pilot is successful Questions • Contact Mike Bilbrey for more info, mike.bilbrey@pentagon.af.mil 26

27. Prepaid Card – Department of Commerce Presented by: David Carter

28. Department of Commerce Prepaid card Background • The President’s Memorandum on Government Contracting, issued on March 4, 2009: • Requires agencies to review existing contracts and acquisition practices and develop a savings plan • Requires 7 percent savings by the end of FY 2011 • The Department has potential to realize cost savings, increase refunds, reduce administrative cost and improve accounts payable processes through strengthening the Purchase Card Program.

29. Department of Commerce Prepaid card Optimizing the Purchase Card Program • Use as a Payment Tool • Virtual Payment Cards • Single Use Accounts • Declining Balance Cards • Prepaid Cards • Maximizing use of additional Tools and Services • Electronic Invoicing • Accounts Payable Analysis • Increase Supplier Purchase Card Acceptance • Interagency Agency Agreements • Same Day Pay • Standardize and Consolidate Administrative Functions • Perform reconciliation and account reclassification in servicing bank’s electronic access system

30. Department of Commerce Prepaid card Potential Cost Savings using Available Tools • Questions, contact David Carter at dcarter@doc.gov or (202) 482-1966

31. Resources

32. General Resources • GSA SmartPay Website: www.gsa.gov/gsasmartpay • Bank Contact Info • Citibank: http://www.cards.citidirect.com/welcome.asp 1-800-790-7206 (customer service) • JP Morgan Chase: https://www.paymentnet.com/Login.asp 1-888-297-0781 (customer service) • U.S. Bank: https://access.usbank.com/cpsApp1/index.jsp 1-888-994-6722 (customer service)

33. Other GSA SmartPay Courses being offered • GSA SmartPay2 Purchase Card Basics • GSA SmartPay2 Fleet Card Basics • GSA SmartPay2 Travel Card Basics • GSA SmartPay2 Master Contract Basics • GSA SmartPay Program Update • Effective Oversight of Your GSA SmartPay Program • Basic Charge Card Payment Reconciliation • Navigating the GSA SmartPay Website

34. Questions? Contact Us Erin VanDagna, erin.vandagna@gsa.gov, (703) 605-5589 Camesha Everett, camesha.everett@gsa.gov, (703) 605-1834 GSA SmartPay Program Support Phone: (703) 605-2808 E-mail: gsa_smartpay@gsa.gov www.gsasmartpay.gov 34