GSA SmartPay Program Update

1. GSA SmartPay Program Update David J. Shea, CPCM, PMP Program Director, Office of Charge Card ManagementGeneral Services Administration May 15, 2012 to May 17, 2012

2. Value to the Customer • Value: Provide an overview of the GSA SmartPay Program and priority customer-focused initiatives • Value: Provide information about opportunities to leverage GSA SmartPay solutions, which may increase efficiencies, enhance oversight capabilities, and increase refund opportunities • Example: Grants payment initiative may streamline your agency’s grants operations, enhance grants spending transparency, and provide opportunities for potential refunds

3. Polling the Audience Please raise your hands if you are: • An A/OPC • A cardholder • A vendor or merchant • Purchase • Travel • Fleet • Integrated • Unsure

4. FY 2011 GSA SmartPay Statistics FY 2010 FY 2009 FY 2011 FY 2010 FY 2009 FY 2011 FY 2009 FY 2010 FY 2011 FY 2011 Total Program Spend: $30.8 Billion FY 2011 Total Transactions: 100.4 Million FY 2011 Total Cards Issued: 3.6 Million FY 2011 Net Agency Refunds: $297.9 Million Spend (Billions) Transactions (Millions) Cards (Millions)

5. Making the GSA SmartPay Program Work For You

6. Hallmarks of an Innovative Charge Card Program Have you analyzed your business processes? GSA SmartPay products and services can be utilized to provide more streamline, efficient, and transparent solutions for your agency/organization and help address business or mission-critical challenges Are you utilizing all the services available to you? Reach out to your Level 1 A/OPC to discuss business challenges, potential solutions, and areas to organically expand your card program to leverage efficiencies, increase refunds, and implement stronger internal control

7. Government Efficiency Policies Executive Order (EO) 13589 “Promoting Efficient Spending” was issued November 9, 2011 to reduce government spending by 20 percent, which is equivalent to $4 billion each year. The EO directs agencies to: Promote policies that cuts costs and reduces spending Make plans to reduce costs by 20% from FY 2010 levels Encourage local and technology alternatives to reduce travel costs Assess and adjust technology usage to prevent underutilization Reduce printing and encourage use of electronic documentation Improve agency fleet performance Limit the purchase of promotional items (e.g., plaques and clothing)

8. Aligning SmartPay Services to EO 13589

9. Aligning SmartPay Services to EO 13589

10. Enhancing Payment Program Value GSA SmartPay Purchase Card Review A/P file to expand GSA SmartPay Purchase Card use for micro-purchases and larger purchases Explore greater use of card/cardless payment systems for contract payments, including card/cardless as payment option in contract terms and conditions Maximize use of Federal Strategic Sourcing Initiative BPAs (e.g., office supplies, print management, ground delivery, transportation) Consider use of payment cards, single use accounts, transit subsidy cards, and other innovative payment tools Further utilize card/cardless payment data as a component of your agency’s strategy to reduce erroneous payments

11. Enhancing Payment Program Value GSA SmartPay Travel Card Emphasize that use of the GSA SmartPay Travel Card for all expenses on official Federal government travel is required by the Federal Travel Regulations and that it benefits ICE from a refund perspective Leverage GSA SmartPay contract bank processes to reduce improperly assessed State taxes on IBA Travel Cards (currently 11 States do not tax these cards) GSA SmartPay Fleet Card Continuously refine GSA SmartPay Fleet Card tax recovery process to ensure maximum benefit

12. Innovative and Cardless Programs GSA SmartPay contract banks offer Tier II programs to improve vendor cash flow, increase merchant acceptance, and increase the range of payments eligible to earn refunds: Declining Balance: CBA card that provides a set limit that can be set to refresh at the agency’s discretion, which offers greater spend control Stored Value Card: Prepaid card that has a specific dollar value that can be loaded on a single or repeat basis Transit Subsidy: Dedicated charge card for reimbursement of transit costs, which eliminates manual processes (HHS has realized 15% cost savings) Ghost Cards: CBA card designated specifically for a frequently used vendor, allowing multiple users to purchase from that vendor while reducing the number of open accounts and risk of lost or stolen cards Single Use Accounts: Provides agencies/organizations the function and refund ability of a purchase card, while enabling features such as transaction-specific authorization controls and reports on “expected usage”

13. Innovative Solutions to Address Agency Business Needs

14. Federal Strategic Sourcing GSA SmartPay Purchase cards play a pivotal role in the Federal Strategic Sourcing Initiative (FSSI): 2nd Generation Office Supplies (OS2) • Through September 2011, agencies have spent nearly $216 million (approximately 73% of spend has been with small business) and total savings have reached $16 million • All OS2 vendors (with the exception of the Office Depot commercial website) have fully implemented point-of-sale (POS) recognition Print Management • GSA awarded Blanket Purchase Agreements (BPA) to vendors for two types of print management activities, which include: • Fleet Assessment • Device Plus & Customizable Options • Agencies can opt to pay with the Purchase Card regardless of transaction amount (under $10 million subject to delegation of authority)

15. FedRooms® FedRooms is the official government-wide, government sponsored lodging program for all Federal government and military employees; available at https://www.fedrooms.com: Rooms booked through FedRooms will always be at or below per diem – typically 15 percent less than retail value The government rate is NOT per diem More than 11,000 hotels participate in the FedRooms program Increased traveler awareness for “green” hotels FedRooms is accessible through the Defense Travel System, E2 Solutions, FedTraveler.com, GovTrip, and FedRooms.com

16. GSA City Pair Program The GSA City Pair Program provides discounted air transportation services for Federal government travelers: There are 13 contract carriers More than 5,700 domestic and international city pairs Non-stop service 95 percent of the time Airfares average 68 percent below the lowest unrestricted commercial rates In FY 2011, more than $6.3 billion in potential annual savings for the Federal government Available at: http://apps.fas.gsa.gov/citypairs/search/

17. Tax Education Communication Campaign OCCM is developing an integrated communications campaign that will provide messaging and additional clarification to stakeholders regarding the application of state taxes to IBA travel cards: Identified 11 States that exempt taxes for transactions made by Federal travelers using IBA travel cards Targeted message development for key stakeholders at the point of sale (i.e., traveler and vendor clerk) about State exemption requirements, best practices, and lessons learned for Federal travelers, vendors, and State tax offices Established plans to enhance the current GSA SmartPay website tax pages, prepare printed matter for travelers and vendors, meet with vendor and State representatives, and create training materials

18. Grants Payment Initiative Want to know more? • Please contact Ms. Erin VanDagna for more information at erin.vandagna@gsa.gov! OCCM is seeking agencies interested in developing and pilot testing a grants funding solution. A card or cardless grants solution may help agencies address key grantor and grantee challenges. Potential benefits may include:

19. Innovative Solutions Several agencies are moving to implement innovative carded and cardless solutions that address key payment issues and promote further process efficiencies and administrative cost avoidance: Department of State Payment Cards Department of Health and Human Services Distribution Program GO!card Department of Veterans Affairs Prime Vendor Program

20. Department of State Payment Cards Recipient of the 2011 SmartPay 2 Innovation Award, this specialized card is for high volume, high dollar services with identified domestic and international vendors. The card blocks all other Merchant Category Codes: • Usage examples: • Courier Services • Domestic and International Utilities • Telecommunications • Benefits to Payment Cards • Significant reduction of invoice payments • Reduction of interest penalties • Consolidation of individual charges • Improved oversight through online vendor review tools • Vendors are paid in 48 hours

21. Health and Human Services GO!card Recipient of the 2010 SmartPay 2 Innovation Award, the Department of Health and Human Services administers the GO!card Program, which distributes a charge card with a monthly limit equal to the monthly benefit: Card use limited by merchant category code for transit providers only Use or lose monthly benefit Automated distribution and receipt of benefits Participants never stand in line again Provides increased internal controls and accountability Avoids costs as participants only spend what they need each month

22. Questions

23. Thank you for your time and attention! Contact Information • David J. Shea, CPCM, PMP • david.shea@gsa.gov • (703) 605-2867 • Please provide your feedback and thoughts on our website, available at http://smartpay.gsa.gov/feedback. Don’t forget to visit the GSA SmartBlog at: https://smartpay.gsa.gov/blogs.