![](media/image1.wmf)

**APC/LAPC**

**PURCHASE CARD PROGRAM**

![](media/image2.wmf)**GUIDE**

Originated: October 1999

Revised: September 2000

![](media/image3.png)

Prepared by:

Office of Procurement, Property, and Emergency Preparedness

Procurement Modernization Team

::: Definition-Term
***ATTENTION:***
:::

::: Definition-Term
***AGENCY PROGRAM COORDINATORS AND LOCAL AGENCY PROGRAM COORDINATORS***
:::

This *USDA APC/LAPC PCMS Guide* provides you with the information
necessary to administer the purchase card program within your agency.
Everything you need concerning the program and the system is included in
this guide (e.g., how to setup cardholders at the bank, training,
security related information, etc.).

Please use this guide as a training and reference tool in addressing the
procedures and proper management of your agency's participation in the
use of the purchase card. If you have any questions regarding this guide
or any specific questions about this program, please contact one of the
following:

+-----------------------------------+----------------------------------+
| **[Program                        | > **[Contact]{.underline}**      |
| Official]{.underline}**           |                                  |
+-----------------------------------+----------------------------------+
| Agency Program Coordinator (APC)  | > Departmental Program           |
|                                   | > Coordinator (DPC) at (202)     |
|                                   | > 690-3756                       |
+-----------------------------------+----------------------------------+
| Local Agency Program Coordinator  | > APC at your Headquarters       |
| (LAPC)                            | > Office                         |
+-----------------------------------+----------------------------------+

**TABLE OF CONTENTS**

Page

SECTION I. USDA PURCHASE CARD PROGRAM OVERVIEW
[I-1](#usda-purchase-card-program-overview)

USDA GOVERNMENT-WIDE COMMERCIAL PURCHASE CARD
[I-1](#usda-government-wide-commercial-purchase-card)

CONVENIENCE CHECKS [I-1](#convenience-checks)

PURCHASE CARD MANAGEMENT SYSTEM (PCMS)
[I-1](#purchase-card-management-system-pcms)

HOW TO USE THE PURCHASE CARD (MERCHANT)
[I-2](#how-to-use-the-purchase-card-merchant)

HOW TO USE THE PURCHASE CARD (CARDHOLDER)
[I-2](#how-to-use-the-purchase-card-cardholder)

Over-the-Counter Purchases [I-2](#over-the-counter-purchases)

Telephone Orders [I-3](#telephone-orders)

Internet Orders [I-3](#internet-orders)

Tax Exemption [I-4](#tax-exemption)

PURCHASE CARD BENEFITS [I-4](#purchase-card-benefits)

Benefits to the Cardholder [I-4](#benefits-to-the-cardholder)

Benefits to the Agency [I-4](#benefits-to-the-agency)

Rebate Benefits [I-5](#rebate-benefits)

SECTION II. USDA PURCHASE CARD TEAM [II-1](#usda-purchase-card-team)

DEPARTMENTAL PROGRAM COORDINATOR (DPC)
[II-1](#departmental-program-coordinator-dpc)

AGENCY PROGRAM COORDINATOR (APC) [II-1](#agency-program-coordinator-apc)

LOCAL AGENCY PROGRAM COORDINATOR (LAPC)
[II-2](#local-agency-program-coordinator-lapc)

BILLING OFFICE CONTACT (BOC) [II-3](#billing-office-contact-boc)

CARDHOLDERS [II-3](#cardholders)

MANAGERS [II-4](#managers)

CONTRACTING OFFICERS AND GRANTS/AGREEMENTS OFFICERS
[II-5](#contracting-officers-and-grantsagreements-officers)

FINANCIAL OFFICERS [II-5](#financial-officers)

CERTIFYING OFFICER [II-5](#certifying-officer)

COMPUTER SUPPORT/TELECOMMUNICATIONS OFFICERS
[II-5](#computer-supporttelecommunications-officers)

SECTION III. PROGRAM OPERATION [III-1](#program-operation)

SETTING UP AN AGENCY/STAFF OFFICE
[III-1](#setting-up-an-agencystaff-office)

APC Setup [III-1](#apc-setup)

LAPC Setup [III-1](#lapc-setup)

Cardholder Setup [III-1](#cardholder-setup)

DELEGATION OF AUTHORITY [III-3](#delegation-of-authority)

PURCHASE LIMITS [III-3](#purchase-limits)

Single Purchase Limit [III-3](#single-purchase-limit)

Monthly Purchase Limit [III-3](#monthly-purchase-limit)

Changes to Purchase Limits [III-3](#changes-to-purchase-limits)

ACCOUNTABLE/SENSITIVE PROPERTY [III-4](#accountablesensitive-property)

DETERMINING WHEN TO USE FORM AD-700, PROCUREMENT REQUEST
[III-4](#determining-when-to-use-form-ad-700-procurement-request)

GUIDELINES FOR USING CARDS/CHECKS
[III-4](#guidelines-for-using-cardschecks)

Conditions for Use of the Card and Convenience Checks
[III-4](#conditions-for-use-of-the-card-and-convenience-checks)

Authorized Use of the Card [III-4](#authorized-use-of-the-card)

Authorized Use of the Convenience Check
[III-5](#authorized-use-of-the-convenience-check)

Unauthorized Use of the Card and Checks
[III-6](#unauthorized-use-of-the-card-and-checks)

Documentation, Reconciliation, Payment, and Retention Procedures
[III-7](#documentation-reconciliation-payment-and-retention-procedures)

Documentation [III-7](#documentation)

Reconciliation and Payment [III-7](#reconciliation-and-payment)

Retention [III-8](#retention)

Disputes [III-8](#disputes)

Disciplinary Actions [III-9](#disciplinary-actions)

Deactivation of USDA Purchase Card Account
[III-9](#deactivation-of-usda-purchase-card-account)

Deactivation/Activation Requests
[III-10](#deactivationactivation-requests)

CARD/CHECK ISSUANCE [III-10](#cardcheck-issuance)

CARD/CHECK SECURITY [III-11](#cardcheck-security)

Monitoring Card/Check Usage [III-11](#monitoring-cardcheck-usage)

Terminations and Cancellations [III-11](#terminations-and-cancellations)

Stop Payment Requests [III-12](#stop-payment-requests)

Transfers or Relocation [III-12](#transfers-or-relocation)

Card Renewal [III-12](#card-renewal)

Check Reorders [III-12](#check-reorders)

Lost/Stolen Cards/Checks [III-12](#loststolen-cardschecks)

Card Receipt Verification/Activation
[III-13](#card-receipt-verificationactivation)

TROUBLESHOOTING [III-13](#troubleshooting)

SECTION IV. PURCHASE CARD TRAINING [IV-1](#purchase-card-training)

CARDHOLDER TRAINING [IV-1](#cardholder-training)

APC/LAPC TRAINING [IV-2](#apclapc-training)

FINANCE OFFICE TRAINING [IV-2](#finance-office-training)

ADDITIONAL TRAINING MATERIALS FOR CARDHOLDERS
[IV-2](#additional-training-materials-for-cardholders)

STORAGE AND RETRIEVAL OF TRAINING MATERIALS
[IV-3](#storage-and-retrieval-of-training-materials)

Training Database [IV-3](#training-database)

Training Guidelines [IV-3](#training-guidelines)

SECTION V. SECURITY [V-1](#security)

SECURITY ACCESS MANAGEMENT SYSTEM (SAMS)
[V-1](#__RefHeading___Toc488479958)

PASSWORDS [V-1](#passwords)

APPENDIX A: LIST OF ACRONYMS A-[1](#appendix-a-list-of-acronyms)

APPENDIX B: UNIVERSAL RESOURCE LOCATOR
B-[1](#appendix-b-universal-resource-locator)

APPENDIX C: PCMS SYSTEM REQUIREMENTS
C-[1](#appendix-c-pcms-system-requirements)

APPENDIX D: USDA PURCHASE CARD PROGRAM TRAINING
D-[1](#appendix-d-usda-purchase-card-program-training)

CLASS AGENDA D-[1](#class-agenda)

PCMS TRAINING PLAN FOR CARDHOLDERS
D-[3](#pcms-training-plan-for-cardholders)

APPENDIX E: REQUIRED SOURCES E-[1](#appendix-e-required-sources)

SUPPLIES E-[1](#supplies)

SERVICES E-[5](#services)

Recycled and Environmentally-Preferable Products and Services
E-[5](#recycled-and-environmentally-preferable-products-and-services)

Commercial Printing E-[6](#commercial-printing)

Meetings and Conferences E-[7](#meetings-and-conferences)

# USDA PURCHASE CARD PROGRAM OVERVIEW

## USDA GOVERNMENT-WIDE COMMERCIAL PURCHASE CARD {#usda-government-wide-commercial-purchase-card .unnumbered}

The commercial purchase card is a VISA credit card, similar to your own
personal credit card, which authorizes a cardholder to buy goods and
services under an established delegation of authority. The card is
specifically designed showing the United States of America seal and the
words "For Official US Government Purchases Only" imprinted on it to
avoid being mistaken for a personal credit card. The card is also
imprinted with "US Government Tax Exempt". Note that the card is still
subject to existing federal and departmental procurement regulations in
accordance with [Departmental Regulation
5013-6](http://www.usda.gov/da/procure/dr/dr5013-6.htm).

The purchase card is the primary method for making purchases of \$2,500
or less (micro-purchases). The objectives in using the purchase card are
to reduce procurement and related payment paperwork by reducing the
number and dollar amounts of imprest funds, reducing AD-838 purchase
order transactions for supplies and services valued at \$2,500 or less
(\$2,000 for construction), and reducing administrative processing costs
and lead times. Under no circumstances is the purchase card to be used
for personal purchases.

## CONVENIENCE CHECKS {#convenience-checks .unnumbered}

Convenience checks are issued to authorized cardholders. Agency
management determines to whom checks are issued. These checks are
similar in appearance to personal checks and are written against the
cardholder's account and reconciled in the Purchase Card Management
System (PCMS). The purchase card services contractor (Bank of America,
formerly NationsBank) levies a \$1.40 processing charge per check, which
is reconciled in PCMS. These checks are for official use only. They are
to be used when a vendor does not accept the purchase card, as well as
for reimbursements for local travel and expenses which were previously
reimbursed through the use of imprest funds, as well as spot awards and
emergency salary payments to employees. The total amount that may be
written cannot exceed the cardholder's single purchase limit. Keep in
mind that any checks a cardholder writes count against their monthly
limit, along with any card transactions made. Checks written for cash
will not be processed at any financial institution. Pursuant to the
[Debt Collection Improvement Act (DCIA) of
1996](http://www.fms.treas.gov/debt/dcia.html), when writing a check,
you must request the recipient's Tax Identification Number (TIN) or
Social Security Number (SSN). The same rules and regulations that govern
the purchase card are also applicable to checks. The recipient of a
convenience check can cash it at any bank.

## PURCHASE CARD MANAGEMENT SYSTEM (PCMS) {#purchase-card-management-system-pcms .unnumbered}

PCMS is a Windows-based system that uses client server and Electronic
Data Interchange (EDI) technologies. This system is used to track,
reconcile, control, and pay purchases made with the Government-wide
Commercial Purchase Card (GPC) and convenience checks, issued by an
authorized General Service Administration (GSA) contractor (Bank of
America).

Daily, the bank downloads purchase card transaction data and purchase
card master data to the National Finance Center (NFC). The NFC make
payments to the bank for purchases billed according to a scheduled
billing cycle and then, via PCMS, allows the responsible cardholder to
monitor and reconcile all transactions.

## HOW TO USE THE PURCHASE CARD (MERCHANT) {#how-to-use-the-purchase-card-merchant .unnumbered}

To accept a VISA transaction, a merchant follows these general
procedures for any type of card purchase.

1.  The cardholder presents merchandise and the purchase card to the
    supplier.

2.  After totaling the merchandise, the merchant processes the purchase
    card information to obtain authorization.

3.  The authorization request is transmitted electronically to the bank
    through the telecommunications network. The bank verifies the
    cardholder account and determines if the purchase is within spending
    control limits. In approximately 10 seconds, an approval, decline,
    or referral is transmitted back to the merchant's bank or processor
    and on to the merchant.

4.  When an approval code is received, the cardholder verifies the sales
    total and signs the sales draft. The cardholder then receives the
    merchandise, the card, and one copy of the completed sales draft.

5.  At the end of a business day, the merchant batches and sends the
    transactions to the processing bank that will issue credit for the
    purchase.

6.  The merchant's bank electronically transmits the sales draft
    information to the card issuer's bank, and then it applies the
    charges to the appropriate cardholder account.

## HOW TO USE THE PURCHASE CARD (CARDHOLDER) {#how-to-use-the-purchase-card-cardholder .unnumbered}

The same basic procedures are followed for mail, phone, and Internet
order purchases, although the supplier may request additional
information such as the cardholder's shipping address.

### Over-the-Counter Purchases {#over-the-counter-purchases .unnumbered}

Although the process may vary slightly, the following steps give a
general overview of how the purchase card works. An employee using the
purchase card should:

1.  Identify the purchase needed and determine funds availability.

2.  Determine if the purchase amount is within their pre-approved single
    purchase limit. If yes, proceed to the next step. If no, check with
    the manager for details on how to proceed.

3.  Purchase goods/services. Provide the merchant with the purchase
    card. Inform the merchant that the purchase is for "official U.S.
    Government business" and is not subject to state or local sales tax
    (see [*Tax Exemption*](#tax-exemption) below). Pay sales tax if
    merchant refuses to waive it.

4.  Retain receipt (i.e., cash register receipt, VISA charge slip).

5.  Reconcile receipts with transactions within PCMS.

### ![](media/image4.wmf)Telephone Orders  {#telephone-orders .unnumbered}

An employee using the purchase card to order by telephone should:

1.  Identify the purchase needed and determine funds availability.

2.  Determine if the purchase amount is within the pre-approved single
    purchase limit. If yes, proceed to the next step. If no, check with
    your manager for details on how to proceed.

3.  Contact the merchant and place the order.

4.  Purchase goods/services. Inform the merchant that the purchase is
    for "official U.S. Government business" and is not subject to state
    or local sales tax (see [*Tax Exemption*](#tax-exemption) below).
    Pay sales tax if merchant refuses to waive it. Provide the merchant
    with the card number and expiration date.

5.  Relay all pertinent information to supplier, e.g., your name,
    shipping address, etc.

6.  Inspect and verify order accuracy, quality, and price when
    merchandise arrives.

7.  Retain shipping documents and receipts received with the
    merchandise.

8.  Reconcile shipping receipts/documents with transactions within PCMS.

### Internet Orders {#internet-orders .unnumbered}

1.  ![](media/image5.wmf)Identify the purchase needed and determine
    funds availability.

2.  Determine if the purchase amount is within the pre-approved single
    purchase limit. If yes, proceed to the next step. If no, check with
    your manager for details on how to proceed.

3.  Locate the merchant's web site and place the order.

4.  Purchase goods/services. Enter your card number and expiration date.
    Some web sites will recognize that your purchase is tax exempt. If
    not, indicate that the purchase is tax exempt (see [*Tax
    Exemption*](#tax-exemption) below). Note that you should check to
    see if the web site you are accessing is secure before entering your
    purchase card account number. Check your Internet browser software
    and any information posted on the web site you are accessing for
    more information regarding the level of security provided.

5.  Relay all pertinent information to supplier, e.g., your name,
    shipping address, etc.

> NOTE: When downloading a purchased product from the Internet, printout
> the electronic confirmation for your files.

6.  Inspect and verify order accuracy, quality, and price when
    merchandise arrives.

7.  Retain shipping documents and receipts received with merchandise.

8.  Reconcile shipping documents or electronic confirmation printout
    with transactions within PCMS.

### Tax Exemption {#tax-exemption .unnumbered}

The Purchase Card is issued under the GSA SmartPay program with a prefix
of either 4486 or 4716. The card is imprinted with the statement, "US
Government Tax Exempt." Charges for all purchases, other than travel,
that are billed directly to the Federal Government are exempt from sales
tax. Merchants can determine whether an account number is direct billed
by identifying the sixth digit of the account number. If the sixth digit
is 0, 6, 7, 8, or 9, the cared is direct billed and the transactions are
exempt from sales tax.

NOTE: For large purchases where the merchant refuses to waive the tax,
the cardholder can present a state tax exemption letter. Cardholders can
printout state tax exemption letters from the GSA SmartPay web site at
<http://www.fss.gsa.gov/services/gsa-smartpay/taxletter/>.

## PURCHASE CARD BENEFITS {#purchase-card-benefits .unnumbered}

### Benefits to the Cardholder {#benefits-to-the-cardholder .unnumbered}

-   The card empowers the cardholder to make decisions

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-   The cardholder gets exactly what is needed when needed.

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-   The card saves time

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-   No waiting for signatures on requisitions, check requests, or
    invoices.

-   No waiting for a purchase order to be issued.

-   Orders are placed at the cardholder's convenience.

-   Orders are received faster.

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-   The card reduces paperwork

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-   No requisitions or purchase orders for card purchases.

-   No check requests or invoice approvals for card purchases.

-   No need to use the imprest reimbursement process.

-   No MISC-PAY Document transmitted to NFC for payment.

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-   The card is widely accepted

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```
-   More than 12 million merchant locations.

If a supplier doesn't accept VISA, the bank can assist them in becoming
VISA-capable by calling the Government Card Services Unit (GCSU) at
1-800-472-1424.

### Benefits to the Agency {#benefits-to-the-agency .unnumbered}

-   No reimbursement procedure to remember

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-   Unlike some methods, you do not pay a bill and wait for
    reimbursement. The government pays the bills directly as required.
    For this reason, it's very important that no personal charges be
    made with the purchase card.

```{=html}
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```
-   Saves money and increases efficiency by

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-   Reducing the number of requisitions, purchase orders, invoice checks
    requests, checks, and data entry in various offices.

-   Allowing program personnel to directly make the necessary purchases
    to carry out mission area responsibilities.

-   Cutting down on paper pushing, approving, reconciling, and paying
    for small-dollar purchases.

-   Freeing up time for purchasing professionals to focus on high-dollar
    purchases and key supplier relationships.

-   Using improved reporting to negotiate volume discounts with
    suppliers.

-   Sending small-dollar purchases to the more efficient bank system,
    which handles millions of these purchases each day.

### Rebate Benefits {#rebate-benefits .unnumbered}

USDA's task order with the Bank of America requires the bank to pay
quarterly rebates based on the purchase card charge volume. The rebates
are up to 142.4 basis points (100 basis points equals 1 percent),
depending on the speed with which USDA pays the bank's daily invoices.
Rebates effectively reduce the real cost of operating PCMS.

Rebates are due to USDA by the 10^th^ calendar day after a fiscal year
quarter. To assure that the 4^th^ quarter rebate is received in time to
spend it, the bank is required to estimate it and pay it with the third
quarter rebate. Adjustments based on actual purchase volume and speeds
of invoice payment for the fourth quarter are made with the rebate
payment for the first quarter of the next fiscal year. Upon receipt and
review of the rebate calculations, USDA posts the amount due to each
agency to the account it has designated for receipt of its rebate.

[Rebate Calculations]{.underline}

**Step 1:** Determine the net charge volume for the quarter by
subtracting the face amount of convenience checks from the total amount
of purchases.

**Step 2:** Determine the gross rebate basis points in the task order's
payment velocity schedule for the number of days the invoices are
outstanding. The payment velocity schedule is a sliding scale with a
maximum of 142.4 basis points (1.424%) for invoices paid within one day
of receipt to a minimum of 48 basis points (.48%) for payments made 60+
days after receipt of invoices.

**Step 3:** Determine the net rebate basis points by subtracting the
General Services Administration Industrial Funding Fee (IFF) of 4 basis
points and 2.7 basis points for the government-wide Joint Financial
Management Improvement Program (JFMIP).

**Step 4:** Determine the net rebate dollar amount by multiplying the
net charge volume by the net rebate basis points. Subtract the cost of
any value added services ordered.

Example of a rebate calculation:

+-------------------------------------------------------+--------------+
| > 1\. Determine Net Purchase Card Charge Volume       |              |
+-------------------------------------------------------+--------------+
| > \- Total charge volume (card, checks, and check     | \            |
| > fees)                                               | $100,000,000 |
+-------------------------------------------------------+--------------+
| > \- Less face amounts of convenience checks          | [-           |
|                                                       | 40,000,000]  |
|                                                       | {.underline} |
+-------------------------------------------------------+--------------+
| > \- Net purchase card volume                         | 60,000,000   |
+-------------------------------------------------------+--------------+
|                                                       |              |
+-------------------------------------------------------+--------------+

+-------------------------------------------------------+--------------+
| > 2\. Determine Gross Rebate Basis Points (BP)        |              |
+-------------------------------------------------------+--------------+
| > \- Gross BP for payment in 5 days (from payment     | 126 BP       |
| > velocity schedule)                                  |              |
+-------------------------------------------------------+--------------+
|                                                       |              |
+-------------------------------------------------------+--------------+
| > 3\. Determine Net Rebate Basis Points (BP)          |              |
+-------------------------------------------------------+--------------+
| > \- Gross BP for payment in 5 days                   | 126          |
+-------------------------------------------------------+--------------+
| > \- Less IFF BP                                      | \- 4         |
+-------------------------------------------------------+--------------+
| > \- Less JFMIP BP                                    | [-           |
|                                                       | 2.7]         |
|                                                       | {.underline} |
+-------------------------------------------------------+--------------+
| > \- Net BP                                           | 119.3 BP     |
|                                                       | (1.193%)     |
+-------------------------------------------------------+--------------+
|                                                       |              |
+-------------------------------------------------------+--------------+
| > 4\. Determine Net Rebate Dollar Amount              |              |
+-------------------------------------------------------+--------------+
| > \- \$60,000,000 x 119.3 BP (1.193%)                 | \$715,800    |
+-------------------------------------------------------+--------------+

# USDA PURCHASE CARD TEAM

![](media/image6.wmf)Individuals have been designated to manage the
purchase card program at different organizational levels. Their
responsibilities are determined by their roles and are listed below. In
order to manage the program effectively, APCs and LAPCs must be
classified in either the
[1105/1102](http://www.ars.usda.gov/afm/hrd/hrdhomepage/staffing_recruit/lastep/EXHBT5.HTM)
procurement series or meet the requirements of the [Contracting
Officers' Warrant System](http://www.usda.gov/da/procure/dr/dr5001.htm)
for a Level IC contracting officer.

## DEPARTMENTAL PROGRAM COORDINATOR (DPC) {#departmental-program-coordinator-dpc .unnumbered}

A program coordinator in the Procurement Policy Division, Office of
Procurement, Property, and Emergency Preparedness (OPPEP), manages the
USDA Purchase Card Program. The DPC is the Contracting Officer's
Technical Representative (COTR) for GSA's government-wide contract with
the purchase card services contractor (Bank of America).

DPC duties include, but are not limited to:

-   Establish USDA APCs with bank contractor and in PCMS;

-   Provide training and guidance to APCs;

-   Set priorities and oversee PCMS configuration management. This
    responsibility includes managing PCMS requirements, defining
    upgrades, and acting as the central point of contact for agency
    requests for system modifications. (Note: Changes to PCMS are not
    made without the explicit, written approval of the Chair, PCMS
    Change Control Board (CCB));

-   Develop and recommend USDA policy and procedures for the
    department-wide purchase card program;

-   Provide program information to participants utilizing the messages
    on PCMS bulletin board;

-   Obtain department\'s Central Account Number from Bank of America;

-   Develop purchase card program literature and materials for
    department-wide use; and

-   Drive future program applications/enhancements.

## AGENCY PROGRAM COORDINATOR (APC) {#agency-program-coordinator-apc .unnumbered}

The APC is appointed by the Agency Head of the Contracting Activity
Designee (HCAD) and is responsible for managing the purchase card
program in each agency and is the agency's contact with the DPC and bank
contractor. The APC is an employee in the 1102 contracting specialist
series that, at a minimum, satisfies the requirements for a Level IIA
Contracting Officer.

APC duties are to:

-   Establish and maintain agency-wide communication;

-   Establish agency-unique purchase card policies and procedures when
    needed;

-   Conduct agency-wide oversight of the purchase card program,
    including proper use of required sources of supplies and services;

-   Participate in meetings with the DPC to address purchase card
    programmatic issues;

-   Establish LAPCs in PCMS and in the Security Access Management System
    (SAMS);

-   Provide training and guidance to LAPCs;

-   Develop and distribute program literature and materials to LAPCs;

-   In the absence of an LAPC, cancel purchase cards immediately upon
    employee's termination;

-   Serve as the primary contact for LAPCs and as the liaison with the
    DPC and the bank;

-   Audit program compliance and file retention. Notify the LAPCs of
    non-compliance issues and assists them in enforcing non-compliance
    measures;

-   Identify future program applications/enhancements and submit to the
    DPC for final assessment and CCB consideration;

-   Determine and recommend appropriate Merchant Category
    Classification (MCC) code ranges for card use; and

-   Provide senior agency management with purchase card transaction and
    convenience check data.

## LOCAL AGENCY PROGRAM COORDINATOR (LAPC) {#local-agency-program-coordinator-lapc .unnumbered}

LAPCs are appointed locally by the Head of the Contracting Office,
subject to the concurrence of the APC. The LAPC is responsible for the
day-to-day operations of the purchase card program at each site. LAPCs
should be classified in the 1102/1105 contracting specialist/analyst or
purchasing agent series. However, LAPCs may be appointed from any series
[provided]{.underline} the employee meets the requirements of the
Contracting Officer's Warrant System for a Level IC Contracting Officer.
An LAPC works directly with the cardholder, bank contact person, APC,
and the NFC. All documentation related to the establishment of the
cardholder will be signed and processed through the LAPC to the bank.

LAPC duties are to:

-   Establish and maintain the purchase card program within his/her
    designated location, including training cardholders in the use of
    the purchase card, convenience checks, and PCMS;

-   Provide training and guidance to cardholders;

-   Monitor purchases using the PCMS alert system, provide management
    with information from PCMS utilizing data query, and conduct
    statistical sampling reviews;

-   Report fraud, waste, and abuse in accordance with agency procedures;

-   Establish and update cardholder information in PCMS and SAMS, and
    perform local PCMS management tasks;

-   Distribute program literature and materials to cardholders;

-   Reconcile:

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-   On an emergency basis, cardholder accounts in order to reconcile
    purchases that have not been timely approved by the cardholder;

-   "Trailing" transactions after a cardholder account is closed; or

-   Purchases made by personnel located at remote sites who cannot
    timely access PCMS to perform account reconciliation.

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-   Ensure proper use of required sources of supply;

-   Notify the bank of any card cancellations due to termination or
    employee transfer;

-   Instruct cardholders to immediately notify a bank customer
    representative of a lost/stolen card/check and/or any discrepancies
    or unauthorized charges within 60 days of the transaction date;

-   Coordinate maintenance changes between the cardholders and the bank;
    and

-   Obtain NFC User IDs and passwords for the cardholder and notify
    cardholder.

## BILLING OFFICE CONTACT (BOC) {#billing-office-contact-boc .unnumbered}

The NFC is the designated BOC for all PCMS users and is responsible for
payment of the single, electronic invoice.

Billing Office duties include, but are not limited to:

-   Receive purchase card master files from the bank;

-   Receive daily transactions from the bank;

-   Receive the official invoice and pay the invoice in full within the
    specified time frame;

-   Work with the bank to resolve payment issues; and

-   Transmit the dispute form to the bank after the invoice has been
    paid.

## CARDHOLDERS {#cardholders .unnumbered}

The purchase cardholder is the individual to whom a card and, if
authorized, a supply of convenience checks are issued. This individual
may purchase, within their authority, supplies and services required by
the government and process other transactions using the convenience
checks as authorized by this regulation. No other person is authorized
to use his or her card or convenience checks. Purchase cardholders are
government employees, cost reimbursable contractors, or "cooperators"
operating under grants/agreements with USDA, States, Universities, other
departments and agencies (who are authorized to use federal sources of
supply and who have knowledge of, or are trained in, simplified
acquisition procedures).

Cardholder responsibilities are to:

-   Make purchases within authorized spending limits and funds
    availability. Use a card only for purchasing items in accordance
    with agency/department policies.

-   Pay the sales tax if the merchant refuses to waive it. The
    cardholder must first inform the merchant that the purchase is for
    "Official U.S. Government" purposes and is not subject to state or
    local sales tax. The card is imprinted with the statement, "US
    Government Tax Exempt." For large purchases where the merchant
    refuses to waive the tax, the cardholder can present a state tax
    exemption letter. Cardholders can printout state tax exemption
    letters from the GSA SmartPay web site at
    <http://www.fss.gsa.gov/services/gsa-smartpay/taxletter/>.

-   Solicit prompt payment discounts from vendors prior to accepting an
    offer. Discount for prompt payment means an invoice payment
    reduction offered by the contractor if payment is made prior to the
    due date. Vendors normally receive payment from the bank within
    three days of the purchase.

-   Maintain purchase cards and convenience checks in a secure fashion
    and preventing unauthorized charges against the account.

-   Maintain adequate documentation of all purchase card and convenience
    check transactions. This responsibility includes documentation of
    funds availability, receipts, packing lists, invoices, Claims for
    Reimbursement for Actual Expenses
    ([SF-1164](http://www.ars.usda.gov/afm2/divisions/itd/ISB/Forms/new-formlst.htm)),
    spot award approvals ([AD Form
    287-2](http://www.ars.usda.gov/afm2/divisions/itd/ISB/Forms/new-formlst.htm)),
    emergency salary payment documentation ([AD Form
    343](http://www.ars.usda.gov/afm2/divisions/itd/ISB/Forms/new-formlst.htm)),
    or other appropriate or agency-required documentation/approvals.

-   Ensuring that accountable and sensitive property is entered into the
    USDA accountable property system. Also ensure that any dangerously
    radioactive and other hazardous materials acquired are disposed of
    in accordance with applicable regulations (refer to Subchapter H,
    Part 104-42 of the *Agriculture Property Management Regulations*
    entitled, *Utilization and Disposal of Hazardous Materials and
    Certain Categories of Property*. See [DR
    5013-6](http://www.usda.gov/da/procure/pcard/pcguide.htm) for
    restrictions on use of the purchase card to acquire firearms,
    ammunition, explosives, or hazardous biological and radioactive
    substances.

-   Reconcile purchase card and convenience check transactions using
    PCMS in a timely manner, ensure entry of proper accounting codes,
    budget object classification codes, and, for convenience checks,
    TINs or SSNs, as appropriate.

-   Call the bank customer service representative and the LAPC
    immediately to report lost or stolen cards/checks.

-   Notify the bank of any billing discrepancies (i.e., disputes) posted
    on the account by completing the dispute screen in PCMS.

-   Notify the LAPC of name, telephone, address, and
    division/agency/department changes.

-   Change passwords as required.

## MANAGERS {#managers .unnumbered}

Managers determine who within their organizations should receive
purchase cards and convenience checks. Managers must ensure purchase
card or convenience check authority is not conferred upon employees
whom, by virtue of their position, will give rise to a conflict of
interest without first adequately mitigating the conflict. For example,
such situations may arise when an employee serves in a budget or
financial capacity.

Manager duties include, but are not limited to:

-   Determine the necessity and purpose of each card issued;

-   Determine single and monthly-purchase limits;

-   Ensure that cards issued under their authority are properly
    authorized; and

-   Utilize reports provided from the LAPC.

## CONTRACTING OFFICERS AND GRANTS/AGREEMENTS OFFICERS {#contracting-officers-and-grantsagreements-officers .unnumbered}

Contracting Officers must determine if any of their contractors under
cost-reimbursable contracts will receive cards and ensure that
appropriate oversight is implemented over such card use so that the
government's interests are protected. Officials responsible for
grants/agreements must make card issuance decisions regarding
cooperators operating under "cost-sharing" type grants or agreements.
Again, the Grants/Agreements Officer is responsible for ensuring that
appropriate oversight is implemented to protect the government's
interests. Contractors and cooperators may not be issued purchase card
or convenience check authority in excess of \$2,500 (\$2,000 for
construction) per transaction.

## FINANCIAL OFFICERS {#financial-officers .unnumbered}

Financial personnel use the query tool software to review the accounting
information entered into the PCMS database.

## CERTIFYING OFFICER {#certifying-officer .unnumbered}

Cardholders are responsible for ensuring funds are available and that
only proper purchases and other authorized transactions are made using
the purchase card and convenience checks. As PCMS incorporates many
automated safeguards to identify misuse, NFC certifies PCMS payments
from a system-wide standpoint; individual certifying officers are
unnecessary with the reengineered PCMS process.

## COMPUTER SUPPORT/TELECOMMUNICATIONS OFFICERS {#computer-supporttelecommunications-officers .unnumbered}

These individuals assist with site surveys and ensure that the PCMS
software will operate in the existing computer environments and assist
in the installation in agency offices of updates and maintenance to the
PCMS software and related software, such as the data query software
tool.

# ![](media/image7.wmf)PROGRAM OPERATION

This section outlines the process of establishing an agency or staff
office with the bank contractor. After receipt of the departmental
account number, an agency or staff office can be established. Procedures
for setting up an agency/staff office are listed below in descending
order.

## SETTING UP AN AGENCY/STAFF OFFICE {#setting-up-an-agencystaff-office .unnumbered}

1.  The DPC is established in PCMS.

2.  The contractor bank issues a Central Account Number to the DPC and
    NFC.

3.  The Central Account Number is provided to the APC to establish
    further agency accounts with the bank contractor.

NOTE: The DPC must request SAMS access for the APC and the APC must
request SAMS access for the LAPC/Alternate after these roles have been
established in SAMS for PCMS access. These requests should include the
name of the APC/LAPC, SSN, User ID, Security Access Code (SAC)
information, and the number of IDs to be established in the pool.

### APC Setup {#apc-setup .unnumbered}

Once the agency/staff office has identified the APC, the DPC will train
and work closely with the APC in establishing the specific agency/office
with the bank contractor. The DPC sets up PCMS and SAMS access for the
APC. The APC will set up PCMS and SAMS access for each LAPC. The APC
will train each LAPC in their responsibilities. Refer to the [*APC/LAPC
PCMS User's Guide*](http://www.usda.gov/da/procure/pcard/pcguide.htm)
and *[SAMS User's Guide for the Purchase
Card](http://www.usda.gov/da/procure/pcard/pcguide.htm)* for detailed
instructions.

### LAPC Setup {#lapc-setup .unnumbered}

Each LAPC must be identified with the bank contractor in order to
participate in the commercial purchase card program (refer to the
[*APC/LAPC PCMS User's
Guide*](http://www.usda.gov/da/procure/pcard/pcguide.htm) for detailed
instructions). Once the APC has established PCMS and SAMS access for the
LAPC, the LAPC sets up PCMS access for cardholders. The LAPC is
responsible for establishing and maintaining cardholder accounts.

### Cardholder Setup {#cardholder-setup .unnumbered}

A cardholder is setup by the LAPC on PCMS. The LAPC is responsible for
adding new cardholders, performing maintenance on existing cardholders,
deleting a cardholder, and replacing existing cards. For detailed
instructions, refer to the [*APC/LAPC PCMS User's
Guide*](http://www.usda.gov/da/procure/pcard/pcguide.htm).

The diagram below depicts the process of events that follow after an
LAPC initially requests to add a cardholder in PCMS through the
Cardholder Account Maintenance Screen (CAMS).

![](media/image8.wmf)

\*The LAPC requests a batch of user IDs from NFC and selects an ID from
this list to assign to each cardholder.

\*\*The LAPC assigns a generic password, PCMS123, to each cardholder.
The cardholder will change the password later.

\*\*\*Enter an \"Action Code\" of **A** and enter the user ID, password,
and the purchase account number.

Refer to [Section V: Security](#Security)*, [APC/LAPC PCMS User's
Guide](http://www.usda.gov/da/procure/pcard/pcguide.htm)*, and [*SAMS
User's Guide for the Purchase
Card*](http://www.usda.gov/da/procure/pcard/pcguide.htm) for details.

## DELEGATION OF AUTHORITY {#delegation-of-authority .unnumbered}

Managers or supervisors may request authority for unwarranted personnel
up to and including the micro-purchase level. Issuance of the purchase
card confers the authority up to the limit specified in PCMS. A request
to provide a purchase card, with or without convenience checks, must be
directed to the LAPC for action. Note that the purchase card and
convenience checks (if authorized), may not be issued to unwarranted
series personnel prior to successful completion of all required
training.

Only warranted USDA employees may purchase above the micro-purchase
level. Warranted individuals may use the purchase card, and, if issued,
convenience checks, up to the amount of their delegated authority and
the single and monthly purchase limits established for their cards or
\$2 million, whichever is less.

## ![](media/image9.png)PURCHASE LIMITS {#purchase-limits .unnumbered}

Use of the purchase card by a cardholder is subject to a single purchase
limit and a monthly purchase limit. The purpose of each dollar limit is
as follows:

### Single Purchase Limit {#single-purchase-limit .unnumbered}

The single purchase limit is a dollar amount on the procurement
authority delegated to the cardholder. A "single purchase" is the total
of those items purchased at one time from a particular vendor location.
Multiple items may be purchased at one time using the card; however, no
single purchase may exceed the authorized single purchase limit.
[Splitting purchases merely to stay within the single purchase limit is
a violation of the law]{.underline}. An example of a split purchase is:

> *The cardholder's single purchase limit is \$2,500. The items to be
> purchased total \$3,000. The cardholder divides the purchase into
> several charges to stay within the authorized single purchase limit.*

### Monthly Purchase Limit {#monthly-purchase-limit .unnumbered}

The monthly purchase limit is the maximum total dollar amount a
cardholder is authorized to procure each month. This amount is
established in PCMS and at the card services contractor (Bank of
America) when a cardholder's account is first established. The monthly
purchase limit applies to the monthly total of all purchase card and
convenience check transactions. This amount is similar to a "credit
limit."

### Changes to Purchase Limits {#changes-to-purchase-limits .unnumbered}

Changes to a cardholder\'s single purchase limit and/or monthly spending
limit should be directed to the LAPC for action by the cardholder\'s
manager or supervisor. Changes to purchase limits for unwarranted
personnel to increase their authority above the micro-purchase level
must be requested from the Senior Procurement Executive.

## ACCOUNTABLE/SENSITIVE PROPERTY {#accountablesensitive-property .unnumbered}

Accountable property is defined as all government property with an
acquisition value of \$5,000 or more. Sensitive property is defined as
an item with an acquisition value of \$5,000 or less and is subject to
fraud, waste, and abuse; has a high level of visibility; is susceptible
to theft; and can be audited by oversight agencies, such as the General
Accounting Office, and Office of the Inspector General. Each agency
defines their own list of sensitive property and is responsible for
providing this list to the cardholders. Cardholders are to initiate
action to place accountable/sensitive property in the property system.

## DETERMINING WHEN TO USE FORM AD-700, PROCUREMENT REQUEST  {#determining-when-to-use-form-ad-700-procurement-request .unnumbered}

Use of Form AD-700, Procurement Request, is optional for purchases at or
below the micro-purchase threshold, except for hazardous items. The
acquisition of hazardous items (i.e., firearms, ammunition, explosives,
or hazardous biological and radioactive substances) by nonprocurement
personnel using the purchase card and/or convenience check is strictly
prohibited. For such items, requisitions are to be prepared and
forwarded to the servicing contracting office after obtaining agency
required approvals and licenses (if any). Should questions arise
regarding whether or not a particular purchase should be made with a
purchase card or convenience check, nonprocurement personnel must
contact their servicing contracting office or LAPC. Agencies are
authorized to establish \"Do Not Buy Lists\" which list hazardous items
that cannot be acquired by nonprocurement personnel with purchase cards
and/or convenience checks. In lieu of using AD-700, managers must
provide their cardholders with a spending allowance or budget.
Communication of purchase request information to cardholders, including
funds availability, must be made by the most efficient method (e.g.,
verbally, via e-mail). Procurement requirements for supplies or services
valued at or below the micro-purchase threshold of \$2,500 (\$2,000 and
below for construction) should be fulfilled locally by the cardholder
within the organizational unit that has the need. These items can only
be acquired by your servicing contracting office. In other cases,
requisitions should not generally be forwarded to the servicing
contracting office for processing unless the requirement is of a unique,
complex, or sensitive nature, or the vendor will not accept the purchase
card or convenience check for the order. The handling of such a
requisition will be coordinated in advance with your servicing
Contracting Office.

## GUIDELINES FOR USING CARDS/CHECKS {#guidelines-for-using-cardschecks .unnumbered}

### Conditions for Use of the Card and Convenience Checks {#conditions-for-use-of-the-card-and-convenience-checks .unnumbered}

In addition to limitations based on individual authority and the
purchase limits, there are conditions relating to the purposes for which
the card and checks may or may not be used.

#### Authorized Use of the Card {#authorized-use-of-the-card .unnumbered}

The card may be used to purchase goods and services under the
micro-purchase threshold. Commercial goods and services may be purchase
using the card if the needed goods and services are not available from
the Federal mandatory sources. Warranted contracting personnel can use
the card up to their delegated contracting authority not to exceed \$2
million. These purchases are subject to all federal, departmental and
agency acquisition regulations and procedures.

Purchase cards are also authorized for the following situations:

-   Purchase accountable/sensitive property. Cardholders must promptly
    initiate action to place these items on the property inventory in
    accordance with USDA and agency procedures.

-   Rent, on a short-term basis (up to 180 days), meeting and conference
    rooms, parking for government-owned or leased vehicles, storage, and
    other special purpose space to be used on a temporary or emergency
    basis.

-   Purchase repairs and maintenance to government-owned and leased
    vehicles in an emergency situation (e.g., when the cardholder cannot
    reasonably find a vendor for these items that will accept the fleet
    card or aviation fuel card). Cardholders must initiate the action to
    place this vehicle repairs/maintenance into the Property
    System/Equipment Management Information System (PROP/EMIS).

-   Pursuant to 31 U.S.C. 3324, payments for subscriptions may be made
    in advance or receipt of the items provided through the
    subscription.

-   Business cards. To order, refer to the Javits-Wagner-O\'Day (JWOD)
    Program in [Appendix E](#appendix-e-required-sources).

-   Warranted contracting personnel, orders within their delegated
    authority under Indefinite Delivery/Indefinite Quantity (ID/IQ)
    contracts.

#### Authorized Use of the Convenience Check {#authorized-use-of-the-convenience-check .unnumbered}

Convenience checks will be utilized for purchases only when: (1) the
vendor or merchant will not accept the purchase card, and (2) at least
one of the DCIA waivers listed below are satisfied. Convenience checks,
when appropriate, can be used by nonprocurement series personnel for
transactions at or below the micro-purchase threshold and by warranted
personnel up to and including the limit of their delegated authority.

Convenience checks are also authorized for the following situations:

-   Issue checks for spot awards. Cardholders may issue checks to
    employees for payment of spot awards not exceeding \$500. Before
    issuing checks, form **AD-287-2, Recommendation & Approval of Award
    (Att. 2-1)** must be approved by an authorized official other than
    the cardholder. Agencies must assure that all awards are entered in
    the Personnel Payroll System. The NFC will gross up the award amount
    for tax purposes. Awards must be in accordance with agency and
    department personnel regulations.

-   Reimburse employees for local travel expenses. Cardholders may issue
    checks to employees for reimbursement of local travel expenses, such
    as mileage, parking, and taxis, authorized by their agency while on
    official business. Local travel is official travel performed in the
    vicinity of the employee's official duty station. Before issuing
    checks, form **SF-1164, Claim for Reimbursement for Expenditures on
    Official Business (Att. 2-2)** must be approved by an authorized
    official other than the cardholder. Local travel reimbursements must
    be in accordance with allowable expenses in federal, department, and
    agency travel regulations.

-   Reimburse employees for miscellaneous expenditures. Cardholders may
    issue checks to employees for reimbursement of miscellaneous
    expenditures (e.g., supplies, services, registration fees, and
    telephone use for official business) that were cleared with the
    cardholder before the purchase was made. [Before issuing a check,
    form **SF-1164, Claim for Reimbursement for Expenditures on Official
    Business (Att. 2-2)** must be approved by an authorized official
    other than the cardholder]{.underline}. Reimbursements must be in
    accordance with federal, department, and agency procurement
    regulations.

-   Reimburse employees for tuition, books, and related expenses.
    Cardholders may issue checks to employees for reimbursement for
    tuition, books, and related expenses. Before issuing a check, form
    **SF-182, Request, Authorization, Agreement and Certification of
    Training (Att. 2-3**) must be approved by an authorized official
    other than the cardholder.

-   Issue emergency salary payments. Cardholders may issue checks to
    employees for emergency salary payments in hardship cases when they
    do not receive a scheduled paycheck. Before issuing a check, form
    **AD-343, Payroll Action Request (Att. 2-4)** must first be approved
    by an authorized official other than the cardholder. Agencies must
    assure that emergency salary payments are entered into the Personnel
    Payroll System and Time and Attendance System to prevent duplicate
    payments. Emergency salary payments must comply with department and
    agency personnel regulations.

DCIA requires that the government maximize electronic transactions.
Purchase card transactions are considered electronic, and are therefore
in conformance with DCIA. Convenience checks are not considered
electronic, and are not DCIA compliant unless one of the following
criteria are met:

-   An individual determines, in his/her sole discretion, that use of
    the purchase card would cause a financial hardship or impose a
    hardship due to a physical or mental disability, or a geographic,
    language, or literacy barrier. Note: Agency personnel may not
    challenge an individual's hardship determination.

-   The agency does not expect to make more than one payment to the same
    recipient within a one-year period (e.g., spot cash awards).

-   The infrastructure of a foreign country does not support electronic
    transfers.

-   The transaction is with a vendor/recipient in a declared disaster
    area.

-   A threat may be posed to national security, the life of physical
    safety of any individual may be endangered, or a law enforcement
    action may be compromised.

-   An agency's need for goods and services is of such unusual and
    compelling urgency that the government would be seriously injured
    unless the transaction is processed by other than electronic means.

-   There is only one source for the required supplies or services and
    the government would be seriously injured unless the transaction is
    processed by other than electronic means.

#### Unauthorized Use of the Card and Checks {#unauthorized-use-of-the-card-and-checks .unnumbered}

The purchase card and convenience checks cannot be used for:

-   Cash advances and/or travel advances (except emergency salary
    payments as authorized by the agency)

-   Long-term (more than 180 days) rental or lease of land or buildings
    except by warranted real property leasing or contracting officers.

-   Purchase of hazardous items such as firearms, ammunition,
    explosives, or hazardous biological and radioactive substances.

-   Purchase of airline, bus, train, or other travel-related tickets and
    purchase of meals, lodging, or subsistence costs unless authorized
    by the agency. The Government Travel Card should be used for these
    items.

-   Personal purchases or identification. Items purchased with the card
    are for official government use only. Additionally, the card must
    not be used for identification for personal purchases (e.g., while
    paying for a personal purchase by check), or security for personal
    purchases.

-   Purchase of telecommunications (telephone) services, i.e., major
    systems such as FTS2001 or DSN. However,
    telephone/telecommunications equipment may be purchased unless
    restricted by an agency.

-   Splitting requirements into several purchases merely to avoid the
    cardholder's delegated single purchase limit.

-   With the exception of fuel for aircraft, related supplies and
    services for government-owned and leased vehicles, and other
    motorized equipment.

-   Personal services unless authorized by statute. Personal services
    are those where an employer-employee relationship occurs such as
    when there is continuous supervision of the contractor's employees
    by the government.

-   Advance payment to a merchant prior to receipt of goods/services,
    unless authorized by law (i.e., subscriptions, registration fees,
    and training).

-   Writing checks to self or for cash.

-   Acquisition from commercial sources of products or services
    available from a required source in time to meet the agency need.

-   Other unauthorized purchases include, but are not limited to:

```{=html}
<!-- -->
```
-   Greeting cards

-   Memberships in an individual\'s (as opposed to an organization\'s)
    name

-   Parking tickets against a government vehicle

-   Insurance of items being shipped to or for the government (the
    Government is self-insuring)

-   Meals for federal employees at office or agency functions, unless
    authorized by law (purchasing food for government employees for a
    bona fide awards ceremony is permitted by law)

-   Shipment of household goods

### Documentation, Reconciliation, Payment, and Retention Procedures {#documentation-reconciliation-payment-and-retention-procedures .unnumbered}

#### Documentation {#documentation .unnumbered}

Any time a purchase is made over-the-counter or by telephone,
documentation must be maintained. The documents will later be used to
verify and reconcile the purchases.

-   When a purchase is made over-the-counter, the cardholder must obtain
    a customer copy of the charge slip and a copy of the register
    receipt or detailed invoice.

-   When making purchases by telephone, the cardholder must obtain the
    shipping documents and any charge slips associated with the order.

-   When downloading a purchased product from the Internet, the
    cardholder must printout the electronic confirmation associated with
    the order along with the shipping documents.

#### Reconciliation and Payment {#reconciliation-and-payment .unnumbered}

The cardholder will reconcile their transactions at least once a month
in PCMS using the documentation retained from each purchase (refer to
the [*APC/LAPC PCMS User's
Guide*](http://www.usda.gov/da/procure/pcard/pcguide.htm) for details).
Purchase transactions are posted in PCMS within 24 hours of their
occurrence. The NFC will pay the electronic invoice and schedule payment
with the U.S. Treasury.

#### Retention {#retention .unnumbered}

Documentation supporting cardholder purchases (i.e., sales receipt,
packing slip, or screen print of electronic purchase) must be retained
for three years after final payment in accordance with the FAR Part 4.
Transactions must have proof-of-purchase documentation. Disposal of
purchase card files will be in accordance with individual agency
procedures. Convenience check transactions to reimburse authorized
employee expenses, provide emergency salary payments, or confer spot
cash awards must be approved and documented in accordance with agency
procedures. If needed, the bank will provide copies of cleared
convenience checks within 14 calendar days of the agency's request at no
charge.

File retention periods for other transactions are as follows:

+----------------------------------------+-----------------------------+
| **TRANSACTION TYPE**                   | **RETENTION PERIOD**        |
+----------------------------------------+-----------------------------+
| -   Micro-purchases                    | 3 years from the date of    |
|                                        | purchase                    |
| -   Simplified Acquisitions under      |                             |
|     \$25,000                           |                             |
|                                        |                             |
| -   Construction Acquisitions under    |                             |
|     \$2,000                            |                             |
+----------------------------------------+-----------------------------+
| -   Simplified Acquisition at and      | 6 years, 3 months\*         |
|     above \$25,000                     |                             |
|                                        |                             |
| -   Contract Orders/Payments           |                             |
|                                        |                             |
| -   Official Business Reimbursements   |                             |
|     Including Local Travel             |                             |
|                                        |                             |
| -   Spot Cash Awards                   |                             |
|                                        |                             |
| -   Emergency Salary Payments          |                             |
+----------------------------------------+-----------------------------+

> \*Records may be stored at a Federal Records Center. Contact your
> agency records officer for specific guidance.

### Disputes {#disputes .unnumbered}

+-------------------+--------------------------------------------------+
| MICRO-PURCHASES   | Keep in mind that transactions are paid, then    |
|                   | disputed. The cardholder must contact the vendor |
|                   | and try to resolve any dispute before processing |
|                   | it through PCMS. If the dispute with the vendor  |
|                   | cannot be resolved, the cardholder is to contact |
|                   | the bank for assistance. The cardholder has 60   |
|                   | days to file a dispute. Refer to the [*APC/LAPC  |
|                   | PCMS User's                                      |
|                   | Guide*](h                                        |
|                   | ttp://www.usda.gov/da/procure/pcard/pcguide.htm) |
|                   | for details.                                     |
|                   |                                                  |
|                   | If the cardholder files a dispute and the bank   |
|                   | agrees with the merchant and not the cardholder, |
|                   | then the dispute will go to arbitration in       |
|                   | coordination with VISA rules and regulations.    |
|                   | The merchant must provide documentation with a   |
|                   | cardholder's signature to get the bank's         |
|                   | compliance. The first time that the merchant     |
|                   | does not agree with the bank, they are fined.    |
+-------------------+--------------------------------------------------+
| CONVENIENCE       | Convenience checks CANNOT be disputed through    |
| Checks            | PCMS. If the check was just written, the check   |
|                   | writer's LAPC must contact the bank (Bank of     |
|                   | America) at 1-800-472-1424 (domestic purchase    |
|                   | cards only; toll free) or 1-757-441-4124         |
|                   | ([international purchase cards                   |
|                   | only]{.underline}; collect call) to stop         |
|                   | payment. The bank will stop payment on the       |
|                   | convenience check within 24 hours. The check     |
|                   | writer will then work with the vendor to resolve |
|                   | the dispute. There is no cost for stopping       |
|                   | payment on a convenience check.                  |
|                   |                                                  |
|                   | If the check has appeared in PCMS to be          |
|                   | reconciled, it has already been paid. In this    |
|                   | case, a stop payment cannot be issued. At this   |
|                   | point, the check writer must work directly with  |
|                   | the card services contractor and the vendor to   |
|                   | resolve the dispute. If, after working with the  |
|                   | card services contractor and the vendor,         |
|                   | resolution of the dispute involves a refund or   |
|                   | credit to USDA, the cardholder should contact    |
|                   | their LAPC. The LAPC will contact the bank to    |
|                   | work out the proper refund process.              |
|                   |                                                  |
|                   | If a check has appeared in PCMS to be reconciled |
|                   | and the cardholder does not remember writing it, |
|                   | request a copy of the check. The fraud unit at   |
|                   | the bank will resolve stolen check issues.       |
+-------------------+--------------------------------------------------+

### Disciplinary Actions {#disciplinary-actions .unnumbered}

APCs/LAPCs need to stress the importance of the cardholder's
responsibility in using the purchase card at the very beginning of their
training. The Departmental Office of Human Resources has provided a list
of suggested penalties for specific offenses. However, individual
agencies may have their own guidelines they wish to apply for
inappropriate use of the purchase card and check. Although each case
must be evaluated on its own merit, the following table provides a
framework to assure consistent application of disciplinary penalties
throughout the department. The objective here is not to unduly concern
the individual but to ensure that they fully understand their
responsibilities and the consequences.

  -------------------------------- ----------------- ---------------------
  **TYPE OF MISCONDUCT**           **PENALTY FOR     **PENALTY FOR
                                   FIRST OFFENSE**   SUBSEQUENT OFFENSE**

  Use of (or authorizing the use   Letter of         5-day suspension to
  of) employees or government      reprimand to      removal
  owned, leased or provided        removal           
  property, facilities, services                     
  or credit cards/convenience                        
  checks, for inappropriate or                       
  non-official purposes.                             

  Writing checks when vendor       Verbal warning    
  accepts purchase card.           from LAPC         

  Failing on a consistent basis to Verbal warning    Written warning to
  reconcile transactions in PCMS.  from LAPC         loss of purchase card
  See *Deactivation of USDA                          privilege
  Purchase Card Account*.                            
  -------------------------------- ----------------- ---------------------

#### Deactivation of USDA Purchase Card Account {#deactivation-of-usda-purchase-card-account .unnumbered}

APCs/LAPCs can deactivate purchase card accounts for infractions of
department or agency regulations such as failing to reconcile
transactions in a timely fashion. Accounts can also be deactivated to
mitigate risks such as when an intermittent employee is not on active
duty and you want to assure that person's card and checks are not used.

LAPCs must provide the cardholder with advance written notice that the
account is being deactivated, the reason(s), and the date or period of
the deactivation. If the cardholder is authorized to have convenience
checks, the notice should require that the cardholder submit all unused
convenience checks, the check registers, and check carbons to the LAPC
by a set date.

Apply the following steps to avoid bounced checks when deactivating an
account:

1.  Before completely deactivating an account that has convenience
    checks, the LAPC may set the single purchase limit to \$1.00 on the
    date provided in the cardholder notification, essentially turning
    the card off. This change should be made through PCMS CAMS so the
    new limit will appear in the Cardholder Screen. In an emergency,
    make the change by calling the bank's Government Card Services Unit
    (GCSU) at 1-800-558-0548 and then promptly enter it into CAMS.
    Lowering the single purchase limit to \$1.00 will prevent anyone
    from making purchases using the card but will allow any outstanding
    checks to clear through the Bank. Lower only the single purchase
    limit because the monthly limit is needed to assure sufficient
    credit for outstanding checks to clear. Checks normally take 7-10
    days to clear after the recipient has deposited or cashed them. Keep
    in mind that some check recipients may not deposit checks
    immediately.

2.  Before deactivating the account, LAPCs must assure that the
    cardholder does not write more checks and that all checks have
    cleared. The LAPC should obtain the cardholder's remaining check
    register, and check carbons. The LAPC should ask the cardholder what
    checks are outstanding and review the check register, the check
    carbons, and cleared transactions in PCMS. Call GCSU for assistance
    in determining what checks have cleared. Once the account is
    deactivated, the bank will not issue an automatic resupply of checks
    when the trigger is reached which is the 39^th^ check.

3.  After steps one and two, submit a deactivation request to the bank.

#### Deactivation/Activation Requests {#deactivationactivation-requests .unnumbered}

APCs/LAPCs should submit requests for deactivation/activation to Bank of
America's Agency Coordinator Team at GCSU via e-mail as follows:

**To:** <GCSUAC@bankofamerica.com>

**Subject:** Account Deactivation/Activation Request

1.  Cardholder name

```{=html}
<!-- -->
```
4.  Account number

5.  Deactivation date or period (e.g., June 1 -- September 30)

6.  LAPC name

7.  LAPC hierarchy (Dept., Agency, Region)

8.  LAPC telephone number

9.  Request confirmation by e-mail

## CARD/CHECK ISSUANCE {#cardcheck-issuance .unnumbered}

[]{#Issuance .anchor}Purchase cards will be issued to warranted
procurement personnel and appropriately designated and trained
unwarranted personnel. The cardholder may also be delegated check
writing authority when it is anticipated that they will need to place
orders with vendors that do not accept the purchase card, or are
responsible for payment of items that are traditionally paid through
imprest funds. Agency management determines to whom the purchase cards
and convenience checks are issued (if any), as well as single and
monthly purchase limits consistent with this regulation.

New purchase cards will be mailed directly to the LAPC so that receipt
of the cards/checks can be coordinated with the training schedule.
Renewal or reissued purchase cards will be sent directly to the
cardholder. Currently, the cycle for new purchase cards is as follows:

  ------------- ---------------------------------------------------------
  Day 1         LAPC sets up account in PCMS

  Day 2         USDA transmits account setup file to Bank of America

  Day 3         Bank of America reformats the file and sends it to GCSU

  Day 4         GCSU creates new VISA account

  Day 5         Total Systems (TSYS) produces and mails new plastic

  Day 6-7       U.S. Postal Service delivers card
  ------------- ---------------------------------------------------------

Checks will be mailed to the cardholder within 10 business days from
receipt of new account setup in PCMS. Checks are ordered in a minimum of
50 checks per box (in books of 25 with carbons). Check number 39, and
each increment thereof, will trigger a reorder from the bank of an
additional 50 checks. The cardholder is to contact their LAPC to reorder
checks if the reorder trigger is not functioning or to order larger
quantities of checks. Cardholders are not authorized to order checks
directly from the bank. LAPCs can contact GCSU at 1-800-472-1424 to
order checks.

## CARD/CHECK SECURITY {#cardcheck-security .unnumbered}

### Monitoring Card/Check Usage {#monitoring-cardcheck-usage .unnumbered}

The DPC, APCs, LAPCs, managers with funds responsibility and
cardholders, and the Offices of Procurement and Property Management and
Inspector General will monitor purchase card transactions through PCMS'
Alert System and the Query Tool Software, Oracle Discoverer. Employees
are required to comply with any requests for information/investigations
regarding questionable purchases by the LAPC, APC, DPC, Agency
Acquisition Review Offices, OPPEP, Procurement Policy Division, agency
management officials, the Office of Inspector General, and other duly
authorized organizations/individuals.

### Terminations and Cancellations {#terminations-and-cancellations .unnumbered}

Prior to separation from their agency or assignment to another function
that does not require cardholder authority, the cardholder will
surrender the card and, if issued, unused convenience checks, to the
LAPC who will destroy them. The cardholder will review with the LAPC the
status of any unreconciled, questionable, partially approved,
unresolved, and disputed transactions, and identify any supplies and/or
services which have been ordered but not yet received, so appropriate
action can be taken to complete these activities. The LAPC will
immediately use SAMS to cancel the cardholder\'s PCMS user ID. The LAPC
will then contact NFC to obtain a temporary user ID in order to
reconcile \"trailing\" transaction for that cardholder. In reconciling
the transactions, the LAPC will put a note in the \"Comments\" field
indicating that the cardholder has retired, transferred, died, etc., and
that the LAPC is reconciling. Sometimes the LAPC cannot locate the sales
receipt or other transaction documentation. In that case, note that in
the \"Comments\" field. Once all transactions are completed, the LAPC
will delete the cardholder from PCMS.

The following procedures have been established to assist you with
terminating/canceling the purchase card:

1.  Obtain the purchase card/convenience checks from the cardholder.

2.  Destroy the purchase card/convenience checks.

3.  Delete the cardholder's PCMS user's id (refer [SAMS User's Guide for
    the Purchase
    Card](http://www.usda.gov/da/procure/pcard/pcguide.htm)).

4.  APC/LAPC contacts NFC to obtain temporary user id to reconcile
    cardholder's remaining unreconciled transactions.

5.  Delete cardholder from PCMS (refer to [*APC/LAPC PCMS User's
    Guide*](http://www.usda.gov/da/procure/pcard/pcguide.htm)).

The deleted record will remain in the system but will retain the action
code of \"D.\" When running your Oracle reports listing cardholders, you
must define a search element as \"A\" for active records in order to
prevent the deleted records from appearing in your report.

Refer to the [*APC/LAPC PCMS User's
Guide*](http://www.usda.gov/da/procure/pcard/pcguide.htm) for details.

### Stop Payment Requests {#stop-payment-requests .unnumbered}

A cardholder that needs to stop payment on a check is to contact their
LAPC and the bank immediately. Refer to [Disputes](#disputes) in this
section.

### Transfers or Relocation {#transfers-or-relocation .unnumbered}

Accounts are modified in PCMS for cardholders transferring or relocating
within the same agency in USDA.

Cardholders cannot be transferred from one agency to another within USDA
using PCMS. The cardholder\'s account must be deleted from PCMS and then
added back into the system, with a new account, by their LAPC at their
new location.

Refer to the [*APC/LAPC PCMS User's
Guide*](http://www.usda.gov/da/procure/pcard/pcguide.htm) for details.

### Card Renewal {#card-renewal .unnumbered}

Renewal cards will automatically be mailed to cardholders at the address
on file two years from the issue date, and every two years thereafter
for the term of the contract, unless otherwise requested by the
APC/LAPC.

### Check Reorders {#check-reorders .unnumbered}

Check reorders are automatic. Refer to [Card/Check Issuance](#Issuance)
in this section.

### Lost/Stolen Cards/Checks {#loststolen-cardschecks .unnumbered}

When a purchase card is lost or stolen, the cardholder should contact
Bank of America's GCSU by telephone at 1-800-472-1424 to report the
lost/stolen card. The GCSU staff is available 24 hours a day, 7 days a
week. (Note: In most cases it is preferred that the cardholder contact
GCSU first rather than the LAPC so that the highest level of detail
regarding account activity leading up to the lost/stolen date can be
provided immediately.)

Bank of America immediately places a real-time block on the activity of
the lost/stolen account, creates a new account, and issues a new
purchase card on a new account. Bank of America will generate a report
of new USDA purchase accounts resulting from lost/stolen cards and
provide this report to PCMS via electronic file for loading into the
PCMS database. This process will initially be manual but ultimately may
be incorporated in the PCMS/EAGLS interface. Trailing balances generated
prior to the date of lost/stolen notification will be transferred to a
new account number, with the exception of potentially fraudulent
transactions, which are systematically held by Bank of America for
manual review and investigation.

If the USDA cardholder still sees fraudulent transaction(s) on the new
account number in PCMS, that cardholder should dispute the transaction
using normal dispute procedures. For these disputed transactions, Bank
of America executes standard procedures for investigation and resolution
of the disputed item.

If the cardholder finds the card after having reported it lost or
stolen, it should be cut in half and given to the LAPC.

### Card Receipt Verification/Activation {#card-receipt-verificationactivation .unnumbered}

As a security measure, new cards and replacement cards for lost, stolen,
or reissued accounts are not usable until the cardholder calls Customer
Service at 1-800-472-1424 to activate their account.

Activation will be done through the Automated Response Unit by keying in
the single purchase limit and monthly purchase limit. Cardholders with
foreign addresses are to use the collect telephone number provided with
the purchase card.

## ![](media/image10.wmf)TROUBLESHOOTING {#troubleshooting .unnumbered}

LAPC\'s should check with their APCs for direction. If necessary, they
should contact the following offices:

-   For questions about security (e.g., password, user ID), contact the
    Security Office at (504) 255-5407.

-   For questions about the PCMS application, follow agency procedures
    before contacting NFC Customer Support at (504) 255-5230 or
    1-800-981-3026. Cardholders should contact their LAPC with any PCMS
    questions.

-   For non-application questions (e.g., telecommunications), call the
    Network Control Center at (504) 255-5037 after checking with your
    agency telecommunications personnel.

-   Inquiries about the USDA Purchase Card Program should be directed
    through agency channels (the cognizant LAPC and APC) to the DPC in
    the OPPEP, Procurement Policy Division, at (202) 720-7527.

-   To verify cardholder information, the APC is to contact GCSU at
    1-800-472-1424 or 1-800-558-0548, 7AM-9PM. GCSU will require that
    the APC provide to them the Central Account Number as a standard
    security check before issuing the information.

# PURCHASE CARD TRAINING

![](media/image11.wmf)In order to receive a purchase card with
micro-purchase authority, unwarranted personnel must first receive
training in micro-purchase regulations and procedures and PCMS.
Warranted personnel must be trained to use PCMS before a card may be
conferred. Individuals must certify that they have received the
training, understand the regulations and procedures, and know the
consequences of inappropriate actions. Agencies will determine the
method of certification.

Each agency is responsible for training participants in the purchase
card program in accordance with department/agency procedures. The
materials listed below are available for use in training APCs, LAPCs,
cardholders, and others involved in using or monitoring purchase card
transactions.

## CARDHOLDER TRAINING {#cardholder-training .unnumbered}

-   CD-ROM Purchase Card Management System Interactive Training Tool --
    An interactive, multimedia tutorial for the cardholder on using
    PCMS.

-   USDA Purchase Card Program Video -- A 12-minute overview of the USDA
    purchase card program.

-   Purchase Card Program Tutorial - An interactive, multimedia tutorial
    covering overall program concepts, and the Departmental Regulation
    on the use of the purchase card.

-   Purchase Card Management System (PCMS) Trifold -- A quick reference
    tool providing instructions on how to use PCMS software.

-   *PCMS/Micro-Purchase Guide* -- A comprehensive training guide on
    micro-purchasing that provides testing of potential cardholders.
    This guide is available through the USDA Procurement home page at
    <http://www.usda.gov/da/procure/pcard/pcguide.htm>.

-   *Cardholder PCMS User's Guide* -- A detailed guide to using PCMS,
    aiding the cardholder in reconciling their transactions. This guide
    is available through the USDA Procurement home page at
    <http://www.usda.gov/da/procure/pcard/pcguide.htm>.

-   *Departmental Regulation 5013-6* -- USDA Regulation that provides
    overall policy for the use of purchase cards and checks. This
    Regulation is available through the USDA Procurement home page at
    <http://www.usda.gov/da/procure/pcard/pcguide.htm>.

-   Agency specific regulations and policies on the use of the purchase
    card.

-   *Javits-Wagner-O\'Day Program Purchase Card Training Kit* -- This
    kit is available on the JWOD home page at
    <http://www.jwod.gov/Training.htm>.

## APC/LAPC TRAINING {#apclapc-training .unnumbered}

-   CD-ROM Purchase Card Management System Interactive Training Tool &
    LAPC Module -- An interactive, multimedia tutorial for the LAPC on
    using PCMS.

-   USDA Purchase Card Program Video -- A 12-minute overview of the USDA
    purchase card program.

-   Purchase Card Program Tutorial -- An interactive, multimedia
    tutorial covering overall program concepts, and the Departmental
    Regulation on the use of the purchase card.

-   Data Query Training - Oracle documentation that provides for the use
    of the report writer.

-   *APC/LAPC PCMS User's Guide* -- A detailed guide to using PCMS,
    aiding in the process of applying for new cardholder accounts,
    closing accounts, and maintaining existing accounts. This guide is
    available through the USDA Procurement home page at
    <http://www.usda.gov/da/procure/pcard/pcguide.htm>.

-   *SAMS User's Guide for the Purchase Card* -- A detailed guide to
    establishing security access for all system users (i.e., PCMS,
    Oracle Discoverer). This guide is available through the USDA
    Procurement home page at
    <http://www.usda.gov/da/procure/pcard/pcguide.htm>.

-   *Departmental Regulation 5013-6* -- USDA Regulation that provides
    overall policy for the use of purchase cards and checks. This
    Regulation is available through the USDA Procurement home page at
    <http://www.usda.gov/da/procure/pcard/pcguide.htm>.

-   *APC/LAPC Purchase Card Program Guide* -- A comprehensive guide on
    micro-purchasing and the purchase card program. This guide is
    available through the USDA Procurement home page at
    <http://www.usda.gov/da/procure/pcard/pcguide.htm>.

-   Agency specific regulations and policies on the use of the purchase
    card.

-   *Javits-Wagner-O\'Day Program Purchase Card Training Kit* -- This
    kit is available on the JWOD home page at
    <http://www.jwod.gov/Training.htm>.

## FINANCE OFFICE TRAINING {#finance-office-training .unnumbered}

-   USDA Purchase Card Program Video

-   Data Query Training

## ADDITIONAL TRAINING MATERIALS FOR CARDHOLDERS {#additional-training-materials-for-cardholders .unnumbered}

-   GSA Customer Supply Center for Specific Region (1-800-848-8928)

-   UNICOR Quick Ship Credit Card Catalog (1-800-827-3168)

-   JWOD Skilcraft Products and Services Catalog (1-800-433-2304)

-   Generic materials are available from the Office of the Federal
    Environmental Executive (202-260-1297)

-   User Aids:

Wallet Insert - mini-regulations targeted to nonprocurement personnel.

Sleeve - used to store wallet insert and purchase card.

Vinyl Register - resembles a small checkbook register and may be used to
record transactions.

## STORAGE AND RETRIEVAL OF TRAINING MATERIALS {#storage-and-retrieval-of-training-materials .unnumbered}

The training materials will be housed at the Consolidated Forms and
Publications Distribution Center (CFPDC) in Landover, Maryland. These
materials can be ordered directly from the Distribution Center using a
Form CFPDC-1 in accordance with departmental/agency procedures citing
the following form numbers (see also
<http://www.usda.gov/oo/forms.htm>).

  ------------------------------------------------------ ----------------
  **ITEM**                                               **FORM NUMBERS**

  Trifold/PCMS Workbook                                  1113

  NFC Directive                                          1114

  Sleeve                                                 1117

  Wallet Insert                                          1118

  Vinyl Register                                         1119

  USDA Purchase Card Program Video                       1120

  Purchase Card Management System (PCMS)                 1121

  Purchase Card Tutorial and Micro-Purchase Course       1141
  ------------------------------------------------------ ----------------

Note: Contact OPPEP for directions in acquiring the CD-ROM for
interactive training tools.

### Training Database {#training-database .unnumbered}

A training database is used to train APCs, LAPCs, cardholders, and other
users of the system. Training IDs and passwords for each role are
established within the database. The training database consists of card
and check transactions. Fictitious account numbers and SSNs have also
been established for training purposes. LAPCs must inform the APC of
their scheduled training dates to ensure user names and passwords are
available.

### Training Guidelines {#training-guidelines .unnumbered}

The USDA training plan has been developed to ensure consistent training
throughout the agency (refer to [Appendix D: USDA Purchase Card Program
Training](#appendix-d-usda-purchase-card-program-training)). This
training plan consists of a proposed training agenda for cardholders and
LAPCs/APCs, guidelines for using purchase cards/convenience checks, and
a training workbook with exercises for the cardholder.

# SECURITY

[]{#Security .anchor}

## ![](media/image12.wmf)SECURITY ACCESS MANAGEMENT SYSTEM (SAMS) {#security-access-management-system-sams .unnumbered}

SAMS is a Windows-based system designed to allow the DPC, APCs, and
LAPCs to request access to PCMS and the data query tool at NFC. The
access requests are immediately stored in the NFC database and are read
and processed in a batch program nightly.

The DPC must request SAMS access for the APC and the APC must request
SAMS access for the LAPC/Alternate after these roles have been
established in SAMS for PCMS access. These requests should include the
name of the APC/LAPC, User ID, Security Access Code (SAC) information,
and the number of IDs to be established in the pool. Refer to the
[*APC/LAPC PCMS User's
Guide*](http://www.usda.gov/da/procure/pcard/pcguide.htm) and [*SAMS
User's Guide for the Purchase
Card*](http://www.usda.gov/da/procure/pcard/pcguide.htm) for detailed
instructions.

NOTE: A list of user IDs will be established for each LAPC. When gaining
access for a user, verify through agency Security Personnel that the
user does not have an existing ID. If an ID does exist, use it for
access to PCMS. If an ID does not exist, select an ID from the
established user ID list.

## PASSWORDS {#passwords .unnumbered}

PCMS passwords are to be changed as prompted by the system. The system
will send a message, similar to the one below, to remind you to change
your password.

> ATTENTION: CARDHOLDERS, LAPCs, APCs
>
> This is a reminder: Please change your password. To change your
> password:

1.  Click on the SQL \<\> Secure icon.

2.  Supply your current username, password, and host ID (gammaor01)

3.  Click login and you will be allowed to propose a new password.

Call your APC if you need assistance in changing your password. Refer to
the [*APC/LAPC PCMS User's
Guide*](http://www.usda.gov/da/procure/pcard/pcguide.htm) and [*SAMS
User's Guide for the Purchase
Card*](http://www.usda.gov/da/procure/pcard/pcguide.htm) for details in
changing the password.

**APPENDICES**

# APPENDIX A: LIST OF ACRONYMS {#appendix-a-list-of-acronyms .unnumbered}

  ---------------- ------------------------------------------------------
  **APC**          Agency Program Coordinator

  **BOC**          Billing Office Contact

  **BOCC**         Budget Object Classification Codes

  **BP**           Basis Points

  **CAMS**         Cardholder Account Maintenance Screen

  **CCB**          Change Control Board

  **CSC**          Customer Supply Center

  **COTR**         Contracting Officer's Technical Representative

  **DCIA**         Debt Collection Improvement Act of 1996

  **DOD**          Department of Defense

  **DPC**          Departmental Program Coordinator

  **EDI**          Electronic Data Interchange

  **EPA**          Environmental Protection Agency

  **FPI**          Federal Prison Industries

  **FSS**          Federal Supply Schedules

  **GCSU**         Government Card Services Unit

  **GPC**          Government Purchase Card

  **GPO**          Government Printing Office

  **GSA**          General Service Administration

  **HCAD**         Head of the Contracting Activity Designee

  **IFF**          GSA Industrial Funding Fee

  **IT**           Information Technology

  **JCP**          Joint Committee on Printing

  **JFMIP**        Joint Financial Management Improvement Program

  **JWOD**         Javits-Wagner-O'Day Program

  **LAPC**         Local Agency Program Coordinator

  **MCC**          Merchant Category Classification

  **NFC**          National Finance Center

  **NIB**          National Industries for the Blind

  **OC**           Office of Communications

  **OPPEP**        Office of Procurement, Property, and Emergency
                   Preparedness

  **PCMS**         Purchase Card Management System

  **PROP/EMIS**    Property System/Equipment Management Information
                   System

  **RCRA**         Resource Conservation and Recovery Act

  **SAC**          Security Access Code

  **SAMS**         Security Access Management System

  **SSN**          Social Security Number

  **TIN**          Tax Identification Number

  **TSYS**         Total Systems

  **USDA**         United States Department of Agriculture
  ---------------- ------------------------------------------------------

# APPENDIX B: UNIVERSAL RESOURCE LOCATOR {#appendix-b-universal-resource-locator .unnumbered}

  ---------------------------- -----------------------------------------------------------------------------
  **RESOURCE**                 **WORLD WIDE WEB SITE**

  USDA Procurement Home Page   [http://www.usda.gov/da/procure.html](http://www.usda.gov/da/procure.html )

  GSA Advantage                [http://www.gsa.gov](http://www.gsa.gov/)

  JWOD                         [http://www.jwod.gov](http://www.jwod.gov/)

  NIB                          [http://www.nib.org](http://www.nib.org/)

  NISH                         [http://www.nish.org](http://www.nish.org/)

  UNICOR/FPI                   [http://www.unicor.gov](http://www.unicor.gov/)

  USDA                         [http://www.usda.gov](http://www.usda.gov/)

  SF-281 Codes                 <http://www.usda.gov/da/procure/pcard/pcguide.htm>

  VISA Merchant Category       <http://www.usda.gov/da/procure/pcard/pcguide.htm>
  Classification (MCC) Codes   

  Budget Object Classification <http://www.usda.gov/da/procure/pcard/pcguide.htm>
  Codes (BOCC)                 

  USDA Purchase/Fleet          <http://www.usda.gov/da/procure/pcard/pcguide.htm>
  Documentation (i.e., guides, 
  regulations)                 
  ---------------------------- -----------------------------------------------------------------------------

Frequently Dialed Numbers:

  ------------- -------------------------------------------------------------
  **LAPC**      

  **APC**       

  **DPC**       

  **Bank**      

  **Finance**   

  **NFC**       

  **IT**        
  ------------- -------------------------------------------------------------

# APPENDIX C: PCMS SYSTEM REQUIREMENTS {#appendix-c-pcms-system-requirements .unnumbered}

Each PCMS user must have a TCP/IP address. Agency telecommunications
personnel obtain and assign TCP/IP addresses in accordance with agency
procedures. It is against government regulations to use local Internet
providers to connect to NFC unless a waiver has been received. Agencies
must use FTS2000.

User Platform Requirements to install and operate PCMS:

Workstation:

  ---------------------- ------------------------------------------------
  CPU:                   Minimum of 486 chip with 66 MHZ clock speed

  Memory:                Minimum of 16 MB preferably 24 MB RAM

  Storage:               Minimum of 100 MB available on hard drive

  Operating System:      Windows 95, 98 and NT

  Monitor Resolution:    800 x 600

  CD ROM:                CD ROM drive desirable (not necessary to run
                         PCMS)
  ---------------------- ------------------------------------------------

Telecommunications:

  ---------------------- ------------------------------------------------
  Network Connectivity:  Ability to connect to NFC UNIX server(s) via
                         USDA TCP/IP network

  TCP/IP:                Compatibility with current version of ORACLE
                         TCP/IP and SQL\*Net Version 2.1.4

  Other:                 For computers not connected to a network with
                         telecommunications capability, a 28.8 kbps modem
                         and Internet access service provider is required
  ---------------------- ------------------------------------------------

Security/Encryption:

  ---------------------- ------------------------------------------------
  Oracle Secure Network  PCMS supported by Version 7.3
  Services (SNS):        

  ---------------------- ------------------------------------------------

PCMS Application:

> Oracle Forms/Report Writer

Data Query Application:

  ---------------------- ------------------------------------------------
  Software:              Oracle Discoverer 2000 for Windows. PCMS
                         supported by Version 3.0

  ---------------------- ------------------------------------------------

# APPENDIX D: USDA PURCHASE CARD PROGRAM TRAINING {#appendix-d-usda-purchase-card-program-training .unnumbered}

## CLASS AGENDA {#class-agenda .unnumbered}

**INTRODUCTION**

\- Welcome

\- Objectives

**OVERVIEW OF THE PURCHASE CARD PROGRAM** - Video

**DEPARTMENTAL REGULATION**

**AGENCY POLICY**

\- Use of Cards/Checks

\- Documentation for Cards/Checks

\- Retention and Disposal of Records

\- BREAK -

**MICRO-PURCHASE TRAINING**

::: Definition-Term
\- Purchase Card Program
:::

-   Authority/Responsibilities

-   Purchase Limits

-   Card Security

-   Reconciliation

\- Micro-Purchase Acquisition Procedures

-   Definition of Micro-purchases

-   Competition

-   Procedures Authorized for Nonprocurement Personnel

::: Definition-Term
\- Sources Of Supply
:::

-   Recycled/Environmentally-Preferable Products and Services

-   JWOD Purchase Card Training Kit

-   Commercial Printing

-   Meetings and Conferences

\- BREAK -

**PCMS TRAINING**

\- Training IDs and Passwords

\- PCMS Hands-on Training

\- Official NFC IDs and Passwords

\- Issuance of Purchase Cards and Checks

**QUESTIONS**

> For APCs and LAPCs include training for CAMS, SAMS, and Data Query.

##   {#section .unnumbered}

## PCMS TRAINING PLAN FOR CARDHOLDERS {#pcms-training-plan-for-cardholders .unnumbered}

ACTION: DISTRIBUTE TRIFOLD

**I COMMAND KEYS HELP SCREEN MENUS**

EXERCISE 1

Discuss the function of the command keys. Explain the purpose of the
help screen and menusmenu bar and title bar.

**Command Keys**

Used to initiate or confirm actions in PCMS that would otherwise require
you to select a menu and then execute the commands. In PCMS these
command keys are located at the top of each screen just below the men
bar.

  ------------- ---------------------------------------------------------
  **Save**      Enters into the database all changes made since the last
                \[SAVE\] or \[Clear Form/Rollback\].

  **Print**     Writes the current screen to a file and asks if you want
                to print it.

  **Clear       Clears and deletes all data in all blocks of the form and
  Form**        does a rollback.

  **Find**      Searches for a specific value or wild card.

  **Insert**    Inserts a new record after the current record.

  **Remove**    Deletes the retrieved record from the screen and from the
                database. Records are not permanently deleted until you
                save your changes to the database.

  **Clear Rec** Removes the current record from the current block,
                reversing any uncommitted changes made to that record. A
                cleared record is not deleted from the database.

  **Edit**      Displays an Editor dialog box in which the operator can
                edit a field.

  **List**      Displays a list from which the user may select valid
                entries.

  **Help**      Displays a brief message for the current field.
  ------------- ---------------------------------------------------------

**Help Screens**

When running PCMS, you can retrieve help by selecting \[Help\],
\[Keys\], or \[List\]. Some screens provide additional help at your
request. Where additional help is available, it may take the form of a
box or screen of information that you display by selecting a function,
command, or menu option.

**Menus**

Each option screen has menu names located on a menu bar (beneath the
title bar). A menu contains a list of commands (functions), which are
actions you can carry out in the application. To choose a menu name or
command, click on it once or key in the letter underscored in the menu
name.

**II LOGON/EXIT**

**Explain Three Icons in PCMS Program Group**

To start PCMS, open the PCMS program group. Select the **PCMS** icon.
Read the warning box and click **OK**. The Logon box is displayed. Use
the **\[Tab\]** key to respond to the prompts. Click **Logon** or use
the **\[Enter\]** key.

To exit the system, click on **Exit PCMS**.

EXERCISE 2

1.  User logs into system using Test Ids and passwords

2.  User exits system using **Exit PCMS** button.

3.  User logs into system and trainer begins training.

**III PCMS MAIN MENU/BULLETIN BOARD (FIGURE 1)**

EXERCISE 3

1.  Explain options on \"Menu Bar.\"

+----+---------------------+-------------------------------------------+
| ** |                     |                                           |
| Ca |                     |                                           |
| rd |                     |                                           |
| ho |                     |                                           |
| ld |                     |                                           |
| er |                     |                                           |
| p  |                     |                                           |
| ul |                     |                                           |
| l- |                     |                                           |
| do |                     |                                           |
| wn |                     |                                           |
| me |                     |                                           |
| nu |                     |                                           |
| ** |                     |                                           |
+----+---------------------+-------------------------------------------+
|    | -   User Messages   |                                           |
+----+---------------------+-------------------------------------------+
|    | -   Purchase Card   |                                           |
+----+---------------------+-------------------------------------------+
|    | -   Card            |                                           |
|    |     Transactions    |                                           |
+----+---------------------+-------------------------------------------+
|    | -   Profile         |                                           |
|    |     Accounting      |                                           |
+----+---------------------+-------------------------------------------+
| *  |                     |                                           |
| *R |                     |                                           |
| ep |                     |                                           |
| or |                     |                                           |
| ts |                     |                                           |
| ** |                     |                                           |
+----+---------------------+-------------------------------------------+
| ** |                     |                                           |
| Wi |                     |                                           |
| nd |                     |                                           |
| ow |                     |                                           |
| ** |                     |                                           |
+----+---------------------+-------------------------------------------+
| ** |                     |                                           |
| He |                     |                                           |
| lp |                     |                                           |
| ** |                     |                                           |
+----+---------------------+-------------------------------------------+
|    |                     |                                           |
+----+---------------------+-------------------------------------------+

2.  Explain purpose of Bulletin Board.

**IV USER MESSAGES (FIGURE 2)**

EXERCISE 4

1.  Mention "Menu Bar" and "Command Keys."

2.  Explain the purpose of the User Messages Screen.

-   Click **Find**. Discuss what appears, i.e., cardholder name, account
    no., location in agency, message date, message status, messages not
    read (4).

-   Read message and let cardholder enter comments and save.

-   Mention "scroll bar."

-   Action/Exit

**V PURCHASE CARD (FIGURE 3)** - View only screen

EXERCISE 5

1.  Explain the purpose of the *Purchase Card Screen*.

2.  Mention "Menu bar" and "Command keys."

**VI CARD TRANSACTIONS (FIGURE 5)** - 25 transactions (card and checks)

EXERCISE 6

Explain the purpose of the *Transactions Screen*, i.e., view
transactions, maintain transactions, and maintain disputes.

**View Transactions (Figure 4)**

EXERCISE 7

1.  Click **Find**. Discuss what appears, i.e., name, account no.,
    purchase date, transaction amount, merchant name, action code,
    "Acctg" button, merchant city, merchant state, invoice paid date.

2.  Query- Go to 2nd data block and **Clear** form. Enter the query and
    execute:

```{=html}
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```
1.  Purchase Date (00-00-0000; execute query)

```{=html}
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```
1.  Transaction amount (\_\_\_\_; execute query)

```{=html}
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```
1.  Merchant name (Name; execute query)

```{=html}
<!-- -->
```
1.  City (City name; execute query)

```{=html}
<!-- -->
```
1.  State (State abbr.; execute query)

```{=html}
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```
1.  Action (Enter code; execute query)

```{=html}
<!-- -->
```
3.  If you want to just "view" your information, click **Action/Exit**
    to leave the system, otherwise, click "Acctg" to reconcile
    transaction.

[NOTE:]{.underline}

Two ways to query:

1.  Enter query; execute query.

2.  Enter query; click Find.

Always check to see if you are in query mode.

**Maintain Transactions (Figure 6)**

EXERCISE 8

1.  Discuss what appears, i.e., first data block purchase date,
    merchant name, accounting information, modify button; second data
    blockaction, date received, [SF-281
    Code](http://www.usda.gov/da/procure/pcard/pcguide.htm), Tax ID no.,
    agency reference no., item description, comments, modify all
    accounting, comments, previous transaction, next transaction.

2.  Reconcile transaction.

-   Approve (next transaction)

-   Partial (next transaction)

-   Questionable (next transaction)

-   Approved (change accounting/next transaction)use list for
    accounting codes and object class. Also use "%" for wildcard.

-   Unapproved (change accounting/next transaction)

-   Dispute (change accounting) \[Save\]enter any data

[NOTE]{.underline}:

If a purchase card transaction, merchant name will appear. If bank
check, check number will appear in item description block as *Cash
Advance from Check ####.*

Additionally, boxes are grayed out when you do not have enter any data.

**Maintain Disputes (Figure 7)**

EXERCISE 9

1.  Go to Card *Transactions, Maintain Disputes*. Discuss what appears,
    i.e., purchase date, merchant name, reference no., previous
    transaction, next transaction.

2.  Use **List** to pull down list of dispute codes. Select a code.

3.  Discuss *Date disputed*, D*ate resolved*, *Date merchant contacted*,
    *Amount*, and *Comments*.

4.  Click **Save**.

5.  Go to P*revious transaction* or *Next transaction* or *Card
    Transaction/view transactions*.

**VII PROFILE ACCOUNTING (FIGURE 8)**

EXERCISE 10

1.  Click **Find**. Discuss what appears on the screen, i.e., name,
    agency, account no., accounting code, account description, object
    class, distribution percent, and total.

2.  Can use *Edit* box for account description and can pull up object
    class code lists.

**VII CHANGING PASSWORDS**

EXERCISE 11

Your password must be changed as prompted by the system. To change your
password:

1.  Click on the icon that says change password changer.

2.  Supply your current username, password, and host ID (e.g.,
    gammaor01).

3.  Click **Login** and you will be allowed to propose a new password.

# APPENDIX E: REQUIRED SOURCES {#appendix-e-required-sources .unnumbered}

Whenever a purchase is required, the action to be taken is to select the
proper source of supply for the services or items needed. Requirements
for supplies and services must be satisfied from or through the services
and publications listed below in descending order of priority.

## SUPPLIES {#supplies .unnumbered}

1.  **Activity Inventory (On-Hand Stock/Cupboard Stock)**

The ***First*** source is on-hand stock. Items needed may be available
from stocking facilities at areas, locations, or headquarters.

Items such as forms, posters, and other supplies in common use by the
department are specified in form AD-640, Departmental Forms Catalog.
Requests for these items are submitted to the purchasing office.

2.  **Excess Personal Property**

The ***Second*** source is excess personal property. Whenever possible,
it should be used instead of purchasing new property from other sources.
Each GSA Region publishes an Excess Personal Property Catalog, which
lists the items available with instructions for ordering. The Cardholder
must check with the appropriate property management officer before
making a purchase elsewhere.

3.  **Federal Prison Industries (FPI)**

The ***Third*** source is FPI, which is also known as UNICOR. FPI
produces commonly used items such as brooms, brushes, furniture,
clothing, textiles, and electrical equipment. FPI is also a mandatory
source unless a clearance is obtained. FPI clearances are not required
when:

a.  Public exigency requires immediate delivery or performance;

b.  Suitable used or excess supplies are available;

c.  Purchases are made from GSA of less-than-carload lots of common-use
    items stocked by GSA;

d.  The products are acquired and used outside the United States; and

e.  Orders are for listed items totaling \$25 or less, and require
    delivery within 10 days.

Your procurement office has UNICOR's full line catalog or you can go
on-line at [http://www.unicor.gov](http://www.unicor.gov/).

4.  **Procurement List of Products and Services Available Through the
    Committee for Purchase From People Who Are Blind or Severely
    Disabled**

The ***Fourth*** source for supplies are the distribution channels
authorized by the Committee for Purchase from People Who Are Blind or
Severely Disabled. Items available from this source are published in a
current status on the JWOD home page,
[http://www.jwod.gov](http://www.jwod.gov/). The *List of JWOD Supplies
and Services* is a list of supplies/services that are available from the
Committee for Purchase from People Who Are Blind or Severely Disabled.
Copies should be maintained in all procurement offices. The listing is
organized by class of supply, as in the GSA Supply Catalog. GSA is a
distributor for most of these products and accepts the purchase card.

This program creates employment and training opportunities for people
who are blind or who have other severe disabilities. Its primary means
of doing so is to require government agencies to buy selected products
and services from nonprofit agencies employing such individuals. As a
result, JWOD employees are able to lead more productive, independent
lives.

The Committee administers the JWOD Program. Two national organizations,
National Industries for the Blind (NIB) and NISH (serving people with a
range of disabilities), have been designated to provide support to
participating state and private nonprofit agencies.

Products furnished include office supplies, cleaners, and others. Many
office products carry the SKILCRAFT brand name. A wide array of JWOD
services are also performed, from administrative work, custodial
operations and grounds maintenance to order processing, switchboard
operation, and warehousing. At this time, six commercial vendors on GSA
Schedule 75 IIIA offer these products in an easy to use telephone
ordering, overnight delivery mode.

**Buy** **JWOD**; pay with your purchase card\...

You can comply with your need to use the government purchase card
whenever possible and at the same time carry out public policy by
filling your needs by buying products of services offered through the
JWOD Program. All distributors of JWOD office supplies and common-use
items accept the purchase card.

There are several ways to order, either through the commercial vendors
or through the GSA system.

[Commercial VendorsOffice Supplies]{.underline}

![](media/image13.png)Federal customers can purchase mandatory JWOD
office supplies from six international vendors with next-day, desktop
delivery. Order by telephone, fax, or EDI. Walk-in store purchases are
not included. The vendors accept purchase cards. Contract terms require
overnight delivery of product to the cardholder\'s desk.

For catalogs and more information, contact the vendors:

-   Boise Cascade Office Products (888) 505-FEDS (3337)

-   BT Office Supplies International (888) 862-8674

-   Corporate Express (800) 706-9267

-   Innovative Sales Brokers (800) 283-1903

-   Office Depot (888) 263-9586

-   Staples National Advantage (800) 538-2728

JWOD Program Information can be obtained from:

[http://www.jwod.gov](http://www.jwod.gov/)

Telephone: 877/getjwod; FAX: 877/FAXJWOD

National Industries for the Blind (NIB):

[http://www.nib.org]()

[Headquarters (703) 998-0770 or Customer Hotline (800) 433-2304]()

NISH:

[http://www.nish.org](http://www.nish.org/)

National Office (703) 560-6800

[GSA Customer Supply Centers (CSCs)]{.underline}

CSCs are GSA's retail outlets. These allow purchase card payment. Place
orders by telephone or fax, using a purchase card account number. Orders
are shipped in 24 hours and usually arrive within 2-5 days. For
assistance in establishing an account at your local CSC, call the GSA
National Help Line at (800) 488-3111 for the name of a Customer Service
Director in your state.

[New GSA Advantage!]{.underline}

GSA Advantage! On-line Shopping Service allows you to browse, search for
specific items, review prices, and place orders via the Internet. You
choose the delivery times and the payment method, including the purchase
card. GSA Advantage! is developing incrementally with Stock Program
ordering open; schedules and special order items are being phased in.
Visit GSA Advantage! at [http://www.gsa.gov]() or call (703) 305-7359
for more information.

5.  **Wholesale Supply Sources**

Wholesale supply sources are the ***Fifth*** source of supply. They are:

a.  **GSA.** The GSA Supply Catalog is published annually and updated
    quarterly. It is an illustrated book that serves as the primary
    source for identifying items and services offered from GSA supply
    sources. When an order is placed from GSA catalogs, adequate
    lead-time must be allowed for delivery. GSA requires about 30 days
    or less to deliver standard stock items within a Region. Furniture
    and other office equipment may take up to 6 months for delivery.
    Delivery for items ordered could be determined in advance by calling
    the Customer Service number listed in the GSA catalog.

> When the total value of the line item is less than \$100, procurement
> from other sources is authorized. Also, when the total value of the
> line item requirement is \$100 or more, but less than \$5,000,
> procurement from other sources is authorized provided that such action
> is documented to be in the best interest of the government in terms of
> the combination of quality, timeliness, and cost that best meets the
> requirement. Cost comparisons will include the agency administrative
> cost to affect a local purchase.
>
> GSA also offers an online shopping service called GSA Advantage. This
> service can be accessed through the "Internet" at
> [http://www.gsa.gov]() and you can use the purchase card with this
> system.

b.  **Defense Logistics Agency and Military Inventory Control Points.**
    The Department of Defense (DOD) has contracts for fuel oil and
    lubricants refined to federal specifications. Listings of these
    contracts are contained in the annual DOD Oil Contract Bulletin
    located in the purchasing office.

```{=html}
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```
6.  **Mandatory Federal Supply Schedules (FSS)**

The ***Sixth*** source of supply is mandatory FSS. Numbers ranging from
19 to 99 breaks down supply schedules into commodity/service groups. A
listing of these groups and instructions for obtaining vendor price
lists can be found in the FSS Program Guide located in the procurement
office.

All schedules contain general instructions, ordering instructions, a
list of supplies and services, a list of contractors, and an index.
Because the listing content of each schedule will vary from the others,
the content of each schedule must be carefully reviewed before ordering.
Schedules are for one year and reviewed by GSA as required. Contractor's
catalogs may, as a result, contain outdated prices. Cardholders must
make sure that the prices used in procurement actions are current.

When the Department of Agriculture is listed (under "Mandatory Users")
as a primary user of an item, Cardholders are required to use FSS for
that item. The GSA may grant waivers to mandatory users, and certain
exemptions are allowed, both of which may permit the use of "open
market" commercial sources instead of those listed in the FSS. (An
office may not be a mandatory user when the geographic coverage of the
contract does not include the area in which the office is located.)

The FSS is converting to nonmandatory sources of supply. This includes
all multiple and single award schedules, including the International
Federal Supply Schedule. The following list indicates sources that still
have questionable mandatory use:

+---------------------------+---------------+-------------------------+
| **SCHEDULE TITLE**        | **SCHEDULE    | **ANTICIPATED           |
|                           | NUMBER**      | EXPIRATION DATE OF      |
|                           |               | MANDATORY USE           |
|                           |               | CONTRACTS**             |
+===========================+===============+=========================+
| JWOD Office Supplies      | 75 III A      | Nonmandatory            |
|                           |               |                         |
|                           |               | (Mandatory status for   |
|                           |               | products and services.) |
+---------------------------+---------------+-------------------------+
| Governmentwide Employee   | 653           | Mandatory use is        |
| Relocation Service        |               | voluntary\*             |
+---------------------------+---------------+-------------------------+
| Business Information      | 732 I A       | Nonmandatory\*          |
| Services (BIS)            |               |                         |
+---------------------------+---------------+-------------------------+
| Human Resources           | 738 X         | Mandatory use is        |
| Management and EEO        |               | voluntary\*             |
| Services                  |               |                         |
+---------------------------+---------------+-------------------------+
| Film & Videotape          | 781 I & II    | Nonmandatory\*          |
| Processing                |               |                         |
+---------------------------+---------------+-------------------------+
| Lending Library Services  | 823           | Nonmandatory\*          |
+---------------------------+---------------+-------------------------+
| Prepayment Audit of       | 872           | Nonmandatory\*          |
| Government Transportation |               |                         |
| Bills                     |               |                         |
+---------------------------+---------------+-------------------------+
| TQM                       | 874           | Nonmandatory\*          |
+---------------------------+---------------+-------------------------+
| International Federal     | IFSS          | Nonmandatory\*          |
| Supply Schedule           |               |                         |
+---------------------------+---------------+-------------------------+

> \*Contact the Services Acquisition Center for more information at
> (703) 305-7261.

For a complete FSS listing, go to <http://www.fss.gsa.gov/schedules/>.
Once at this site, select *Schedules E-Library* and click on *View the
Complete Federal Supply Schedule Listing*.

It is the responsibility of the cardholder to resolve any discrepancies
in the services or supplies ordered. If a satisfactory settlement cannot
be made, the matter must be referred to the GSA Contracting Officer in
charge of that contract (listed under "GSA Assistance" in the schedule).

7.  **Optional Use FSS**

The ***Seventh*** source of supply is Optional Use FSS. If an executive
agency is not specified in the individual Schedules as a mandatory user,
then it is an optional user. If a contractor accepts an order from an
optional user under a schedule contract, all terms of the schedule
contract apply to that order.

8.  **Commercial Sources**

The ***Eighth*** source for supplies is "open-market" commercial
sources. This type of purchase is used only when the items requested are
not available from the aforementioned sources.

## SERVICES {#services .unnumbered}

1.  **Procurement List of Services Available from the Committee for
    Purchase from People Who Are Blind or Severely Disabled**

The ***First*** source for services is the Procurement Lists. (See the
definition under "Supplies.")

2.  **Mandatory FSS**

The ***Second*** source for services is mandatory FSS and Optional Use
GSA Term Contracts. A listing of both is located in the FSS Program
Guide. (See the definition under "Supplies.")

3.  **Optional Use FSS**

The ***Third*** source for services is Optional Use FSS. (See the
definition under "Supplies.")

4.  **Federal Prison Industries (FPI)**

The ***Fourth*** source for services is FPI/UNICOR. UNICOR does
[not]{.underline} have priority over commercial sources for the
procurement of services. (See the definition under "Supplies.")

5.  **Open-Market Commercial Sources**

The ***Fifth*** source for services is open-market commercial sources,
only when the service requested is not available from the aforementioned
sources. Commercial sources and FPI/UNICOR have equal priority for the
procurement of services.

Information for purchasing items from UNICOR, Committee for Purchasing
from People Who Are Blind or Severely Disabled, and mandatory or
optional use FSS is available in the procurement office.

### Recycled and Environmentally-Preferable Products and Services {#recycled-and-environmentally-preferable-products-and-services .unnumbered}

Federal government and USDA policy is to buy recycled products made from
recovered waste materials, specifically those products designed by the
Environmental Protection Agency (EPA), and to give preference to
recycled, environmentally-preferable, and energy-efficient products and
services. Information on these policies is included in:

-   Executive Order 13101, Greening the Government Through Waste
    Prevention, Recycling, and Federal Acquisition

-   Executive Order 13123, Greening the Government Through Efficient
    Energy Management

-   USDA Biobased Products List

-   Resource Conservation and Recovery Act (RCRA), Section 6002

-   EPA Comprehensive Procurement Guidelines

-   Federal Acquisition Regulation Subpart 23.4, Use of Recovered
    Materials and Agriculture Acquisition Regulation Part 423

-   Department of Energy Product Energy Efficiency Recommendations

    Why does the federal government support these types of products?

-   Promote conservation of natural resources

-   Cleaner air

-   Create business and employment opportunities

-   Conserve disposal (landfill) capacity

    Some common recycled, environmentally preferable, and
    energy-efficient products available are:

-   Paper  minimum 30% post consumer content

-   Recycled toner and inkjet cartridges

-   Energy-efficient computer monitors, printers, and fax machines

-   Non-paper office supplies (e.g., plastic covered binders and desktop
    accessories, trash cans)

-   Retread tires for federally-owned or leased vehicles

-   Carpet made from recycled polyethylene terephthalate

-   Re-refined oils, biobased oils

-   Energy-star computers

-   Construction materials, e.g., building insulation

-   Computer disks

    Recycled products must meet your performance standards and be
    competitive in price. Products, which are made from recycled
    recovered materials, will say so on the packaging.

    Information on recycling is available in the following sources or by
    calling the EPA RCRA Hotline at 1-800-424-9346:

-   EPA's Comprehensive Procurement Guidelines

```{=html}
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```
-   Greening the Government (available from Federal Environmental
    Executive by calling 202/690-1297)

### Commercial Printing {#commercial-printing .unnumbered}

All acquisition of commercial printing is governed by Public Law
102-392, Title 44 USC; the Government Printing and Binding Regulations
(published by the Joint Committee on Printing (JCP); [FAR Subpart
8.8](http://www.arnet.gov/far/); and [AGAR Subpart
408.8](http://www.usda.gov/da/procure/procreg.htm). Generally, all
government printing authorized by law is done by or through the
Government Printing Office (GPO) except in the following cases:

-   The GPO cannot provide the printing service (44 U.S.C. 504);

-   The printing is done in field plants operated by an executive agency
    (44 U.S.C. 501(2));

-   The printing is acquired by an executive agency from allotments for
    contract field printing (44 U.S.C. 501(2)); or

-   The printing is specifically authorized by statute to be done other
    than by GPO.

The JCP regulations require the head of each agency to designate a
central printing authority to serve as the liaison with the JCP and the
Public Printer on matters relating to printing. You can acquire printing
services from commercial sources under the following circumstances:

-   The GPO has been contacted and provides a waiver for each individual
    purchase;

-   Cost must not exceed \$1,000;

-   Must be a one-time procurement and nonrecurring printing or
    duplicating job; and

-   Must be for official use only and for strictly administrative or
    operational purposes.

The Office of Communication (OC) is USDA's liaison with the JCP and the
Public Printer and GPO on all matters relating to printing. Agencies
with publication programs have designated a publication liaison officer
to coordinate appropriate printing and publication matters with OC.

### Meetings and Conferences {#meetings-and-conferences .unnumbered}

The Chief Financial Officer has jurisdiction for USDA regulations
governing offsite meetings and conferences. Offsite meetings and
conferences exceeding \$25,000 should be submitted to the Deputy
Secretary with specific justification for the function, location,
expected number of USDA attendees, and an estimate of costs, including
travel and subsistence costs of USDA attendees. USDA policy on offsite
meetings, conferences, training sessions, and ceremonies are as follows:

-   All conferences, meetings, and seminars must be held at the most
    cost-effective locationconsidering such factors as meals, lodging,
    transportation, and rental of conference roomsunless programmatic
    considerations dictate otherwise.

-   Meetings or conferences where a majority of the attendees will be
    Washington, D.C.-based personnel must be held at a location within
    the Washington, D.C. metropolitan area. Only agency heads or their
    deputies may authorize an exception to this rule.

-   For USDA-sponsored meetings, conferences, seminars, and similar
    events, the following order of preference must be followed:

1.  Local USDA facilities

2.  Other local government facilities

3.  Facilities outside the employee's official duty station

-   If a meeting of seven or more employees requires the payment of
    transportation expenses, the approving official must conduct a
    cost-benefit analysis and keep it on file. At a minimum, this
    analysis must contain the name and duty location of each employee,
    the estimated total travel costs of each employee, other expected
    expenses, and a justification for choosing the meeting site over at
    least three other reasonable sites.

In considering and using sources of supply, the cardholder must keep in
mind that the need, as expressed by a request or other requirement for
services or supplies is basic to some intended task. Whatever is
supplied must serve the end use purpose.