**[Summary Information]{.underline}**

The Department of Defense (DoD) awarded a task order for stand-alone
travel card services.

The task order was awarded to NationsBank for 2 years with three 1-year
options. Additional 1-year options may be exercised in accordance with
master contract renewal.

Summary of DoD's terms and conditions and awarded prices are as follows:

-   Decentralized billing

-   Multiple accounting systems

-   Customized training requirements (e.g., videos, conferences, etc.)

-   Electronic and paper

-   Inclusion of risk mitigation measures (e.g., credit checks,
    pre-funded cards, split disbursements, etc.)

-   Travel management software

-   Travel refund: Up to 110 basis points; ATM access is 190 basis
    points; travelers checks are 150 basis points.

    The following is attached:

    **[Travel Task Order]{.underline}**

    **[DoD TAILORED TASK REQUEST/ORDER (TRAVEL)]{.underline}**

    **DEPARTMENT OF DEFENSE (DoD) TAILORED TASK ORDER**

    **TRAVEL CARD PROGRAM**

    **ISSUED AGAINST THE GSA MASTER CONTRACT GS-23F-98004**

    [D0D-9700-0001]{.underline}

    [NationsBank of Delaware, N.A.]{.underline}

    [Introduction]{.underline}:

    The Department of Defense (DoD) issues this Tailored Task Order
    under the General Services Administration (GSA) Master Contract
    Award for the Travel Card Program.

    1\. The Department of Defense (DoD) is committed to assuring that to
    the maximum extent possible the government sponsored,
    contractor-issued travel card shall be the payment vehicle used by
    DoD personnel to pay for all costs incidental to official travel,
    including travel advances, permanent change of station (PCS) moves,
    lodging, transportation, rental cars, meals, and other incidental
    expenses, unless otherwise specified. Alternative travel card
    applications, including unit cards and central billing cards will be
    the exception and shall be designed to serve specific DoD Component
    needs.

    2\. The Travel Card Program is managed for DoD by the Defense
    Finance and Accounting Service, Headquarters, Travel and Services
    Directorate, (DFAS-HQ/FMT) located in Crystal Mall Number 3, Room
    401, 1931 Jefferson Davis Highway, Arlington, VA, 22240-5291. The
    {acting} Program Manager is Ms. De Perrin. She may be reached via
    telephone: (703) 607-5043 or through e-mail at:
    dperrin@cleveland.dfas.mil.

    3\. The DoD Tailored Task Order for travel is contractually managed
    and administered on behalf of the DoD by the Acquisition Support
    Organization (DFAS-HQ/ASO), Defense Finance and Accounting Service,
    Headquarters, located in Crystal Plaza Number 6, Room 500, c/o DFAS
    1931 Clark Street, Arlington, VA, 22240-5280. The DFAS contracting
    Officer is Mr. Gary Maxam. He may be reached via telephone: (703)
    607-5709 or through e-mail at: gmaxam@cleveland.dfas.mil.

    4\. Base contract supply and/or services required are specified in
    the General Services Administration's (GSA) Master Contract. The GSA
    Contracting Officer is Ms. Rebecca Koses. She may be reached via
    telephone: (703) 305-6681 or through e-mail at:
    rebecca.koses@gsa.gov.

    5\. DoD Component Program Managers (CPM), that are authorized users
    of this Tailored Task Order, their contact information, and the
    approximate amount of individually billed accounts (IBA) and
    centrally billed accounts (CBA) currently managed, are found under
    attachment 1, which is hereby fully incorporated into the Tailored
    Task Order by reference with the same force and effect as if
    provided in full text. None of the identified users may change the
    terms and conditions of the Tailored Task Order (or the GSA Master
    Contract). Only the DFAS Contracting Officer may issue modifications
    against the DoD Tailored Task Order. An implementation schedule will
    be provided to the contractor at least 60 days before the Tailored
    Task Order start date.

    6\. The DoD Tailored Task Order effective date is November 30, 1998.
    However, the contractor and DFAS-HQ/FMT are authorized to commence
    transition and program management implementation upon receipt of
    DoD's Tailored Task Order award. Implementation dates are defined in
    the GSA Master Contract.

    7\. The GSA Travel Contract Number is: GS-23F-98004 with NationsBank
    of Delaware,

    N.A..

    8\. The DoD Tailored Task Order Number is: DoD-9700-0001, with
    NationsBank of

    Delaware, N.A..

    9\. The period of performance for subject Tailored Task Order shall
    be November 30, 1998 through November 29, 2000 (two years), with
    three, one year options. Further, Five additional one year options
    may be established in accordance with the GSA Master Contract
    renewal provisions.

    10\. Place of delivery or performance shall be specified by each CPM
    in writing or electronically. In general terms, DoD personnel
    performs global travel to remote locations where card acceptability
    is considered mission essential.

    11\. Accounting and appropriation data shall be specified by each
    CPM.

    12\. The purchasing history is shown in the GSA Master Contract,
    Exhibit 3, which is hereby incorporated into subject Tailored Task
    Order by reference with the same force and effect as if provided in
    full text. The DoD updated purchasing history is found at attachment
    2, which is hereby incorporated into subject Tailored Task Order by
    reference with the same force and effect as if provided in full
    text.

    13\. Organizational Structure:

    a\. The hierarchy for the individual-billed accounts shall be
    provided by the appropriate CPMs. The Component's headquarters
    usually has oversight responsibility for the regional, field, and/or
    Service major claimant, and major command offices. The number of
    active regional and/or major command offices may vary by DoD
    Component. Regional/major command offices may have oversight of the
    field/base office within their command and/or geographic area. Card
    ordering and inventory control usually occurs at unit level.
    Issuance of traveler's checks and/or convenience checks is delegated
    to the unit and/or field offices.

    b\. The DoD hierarchy for centrally billed accounts (CBA) is
    provided with

    attachment 1, which is hereby incorporated into subject Tailored
    Task Order by reference with the same force and effect as if
    provided in full text. The contractor must be able to work in
    conjunction with the existing and future contractors who provide
    travel and travel-related services to DoD. The DoD's travel
    management offices process and reconcile all travel for the agency
    and requires a copy of each invoice in accordance with the GSA
    Master Contract requirements. Points of contact will be provided
    with the Department's implementation plan.

    14\. Contract Line Item Numbers (CLINS) Ordered and Price:

    a\. The contractor shall provide the DoD with the CORE requirements
    \[as specified in the GSA Master Contract\] under this Tailored Task
    Order, as technically described in the NationsBank's oral
    presentation package dated March 18, 1998, and **[as offered under
    NationsBank pricing schedule dated March 30, 1998]{.underline}**
    which is hereby incorporated into subject Tailored Task Order with
    the same force and effect as if provided in full text.

    **Note**: For all Internet and Agency Internet Mediums below the
    quantity shall be one (1), posted under the WEB:

    1\. Master Contract Newsletter Medium (C.18)

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-   X Internet

-   X Agency Intranet

-   X Paper Quantity: 50

    2\. Card Design and Embossing (C.23)

    \* The minimum amount of **[individual]{.underline}** travel cards
    to be ordered in DoD is 900,000 within the two (2) year initial Task
    Requirement period.

    Each CPM will provide the amount and type of cards with the release
    of the DoD implementation plan.

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-   Quasi-Generic cards Quantity: \_\_\*\_\_\_

-   Generic cards Quantity: \_\_\*\_\_\_

    3\. Training Material Medium for A/OPC (C.25)

-   X Internet

-   X Agency Intranet

-   X Paper copies Quantity: 7,000 minimum

    4\. Training Material Medium for Designated Billing Office (C.25)

-   X Internet

-   X Agency Intranet

-   X Paper copies Quantity: 3,000 minimum

    5\. Training Material Medium for Transactions Disputes Office (C.25)

-   X Internet

-   X Agency Intranet

-   X Paper copies Quantity: 2,500 minimum

    6\. Training Material Medium for Cardholders (C.25)

-   X Internet

-   X Agency Intranet

-   X Paper copies Quantity: 10,000 minimum

> 7\. Guide for A/OPC (C.25.1)

-   X Internet

-   X Agency Intranet

-   X Paper copies Quantity: 7,000 minimum

    8\. Guide for Designated Billing Office (C.25.1)

-   X Internet

-   X Agency Intranet

-   X Paper copies Quantity: 2,500 minimum

    9\. Guide for Transactions Disputes Office (C.25.1)

-   X Internet

-   X Agency Intranet

-   X Paper copies Quantity: 2, 500 minimum

    10\. Guide for Cardholders (C.25.1)

-   X Internet

-   X Agency Intranet

-   X Paper copies Quantity: 900,000 minimum (one per each cardholder)

    11\. Designated Billing Office (C.35.7) for Centrally Billed
    Accounts

-   Centralized billing (one invoice)

-   X Decentralized billing (multiple invoices)

    12\. Authorization controls (CB.9)

-   X Daily ATM limit

-   X Weekly ATM limit

-   X Billing cycle ATM limit

    13\. Additional Master File Elements (CB.10 and CB.14)

-   X ATM Data

-   X Travelers Check Data

-   X City pair program Identifier

-   X Other Agency specific identifiers (Reference Paragraph 15(e))

    14\. Invoices for Centrally Billed Accounts (CB.11.3)

-   X Copy of Invoice and transaction data to TMC/CTO

    b\. The contractor shall provide the DoD \[when required, and as
    required by the DoD\] the below listed "Current and Future"
    Value-Added Products and Services (C.47) in accordance with the
    CLINs, as technically described in NationsBank's oral presentation
    package dated March 18, 1998, and in accordance with the
    PRICE/REFUND **[as offered under NationsBank pricing schedule dated
    March 30, 1998]{.underline}**, which are hereby incorporated into
    subject Tailored Task Order with the same force and effect as if
    provided in full text:

    Legend: PC = Per Card, PU = Per User, CV = Charge Volume

+---------------------------+------+----------+--------+------+-------+
| **Value-Added             | **CL | **       | **Unit | *    | **F   |
| Products/Services**       | IN** | Required | of     | *Pri | uture |
|                           |      | 11       | I      | ce** | Requ  |
|                           |      | /30/98** | ssue** |      | ire-m |
|                           |      |          |        |      | ent** |
+---------------------------+------+----------+--------+------+-------+
| Add Authorization         | \*   | X        | PC     | \*   |       |
| Controls                  |      |          |        |      |       |
+---------------------------+------+----------+--------+------+-------+
| Software                  | \*   | X        | PU     | \*   |       |
+---------------------------+------+----------+--------+------+-------+
| Stored Value Card         | \*   | X        | PC     | \*   |       |
+---------------------------+------+----------+--------+------+-------+
| Debit Card                | \*   |          | PC     | \*   | X     |
+---------------------------+------+----------+--------+------+-------+
| Convenience Check         | \*   |          | CV     | \*   | X     |
+---------------------------+------+----------+--------+------+-------+
| Inter/Intra-Agency        | \*   | X        |        | \*   |       |
| Service                   |      |          |        |      |       |
+---------------------------+------+----------+--------+------+-------+
| Electronic Bill Payment   | \*   | X        | CV     | \*   |       |
+---------------------------+------+----------+--------+------+-------+
| **Value-Added             | **CL | **       | **Unit | *    | **F   |
| Products/Services**       | IN** | Required | of     | *Pri | uture |
|                           |      | 11       | I      | ce** | Requ  |
|                           |      | /30/98** | ssue** |      | ire-m |
|                           |      |          |        |      | ent** |
+---------------------------+------+----------+--------+------+-------+
| Hybrid card               | \*   |          | PC     | \*   | X     |
+---------------------------+------+----------+--------+------+-------+
| Electronic Purchasing     | \*   |          | CV     | \*   | X     |
+---------------------------+------+----------+--------+------+-------+
| Photo ID                  | \*   |          | PC     | \*   | X     |
+---------------------------+------+----------+--------+------+-------+
| Card Sleeves              | \*   | X        | PC     | \*   |       |
+---------------------------+------+----------+--------+------+-------+
| Activation/Deactivation   | \*   | X        | PC     | \*   |       |
| on Demand                 |      |          |        |      |       |
+---------------------------+------+----------+--------+------+-------+
| Telephone Card Access     | \*   |          | PC     | \*   | X     |
+---------------------------+------+----------+--------+------+-------+
| Net Billing               | \*   |          | CV     | \*   | X     |
+---------------------------+------+----------+--------+------+-------+
| Commercially Offered      | \*   | X        | PC     | \*   |       |
| Convenience               |      |          | /PU/CV |      |       |
|                           |      |          |        |      |       |
| Services                  |      |          |        |      |       |
+---------------------------+------+----------+--------+------+-------+
| Emerging Technology       | \*   |          | PC     | \*   | X     |
|                           |      |          | /PU/CV |      |       |
+---------------------------+------+----------+--------+------+-------+

15\. In addition to the requirements listed above, the DoD additionally
requires

\[**[as offered under NationsBank pricing schedule dated March 30,
1998]{.underline}** and as technically described in NationsBank's Oral
Presentation package dated March 18, 1998, which are both hereby
incorporated into subject task order with the same force and effect as
if provided in full text\] the following:

a\. DoD requires a traveler check program that allows individual
cardholders to be assigned traveler checks for the term of this Tailored
Task Order. These checks should be billed to the cardholder only upon
usage (i.e. at "activation" in lieu of

"issuance". However, the DoD as a minimum shall accept NationsBank's
commercial practices for the issuance and billing of "traveler checks").
The contractor shall be required to create and maintain a "holding
inventory" and logistical support for the travel check program. The DoD
shall not maintain an inventory or provide logistical support to
transfer the travel check program inventory to its customer base.

b\. DoD requires the CBA software provided by the contractor, to
reconcile centrally billed airline tickets (i.e. "government travel
accounts (GTAs).")

c\. DoD requires that IBAs be transferable within the Department without
new card issuance regardless of billing cycle to which the account is
assigned.

d\. Additional Master File Elements.

Two additional miscellaneous alpha/numeric fields, not to exceed twelve
characters each, will be made available on the individual application
for the electronic collection of Service rank, civilian grade, and
military status designators. (Reserve, Guard, Active)

e\. DoD requires the Program Management office to be provided with
electronic copies of all training material immediately upon its
finalization. Updated material will be forwarded to the Program
Management Office immediately upon release of training material updates.

f\. System Interface

The contractor at time of DoD Tailored Task Order implementation shall:

-   Accept payments;

-   Provide database information; and,

-   Be fully capable of establishing and providing connectivity to\--

> The Defense Travel System (DTS), Defense Management Data Center (DMDC)
> and the Integrated Automated Travel System (IATS) as requested.
> Interface information will usually be provided via name and SSN.
>
> g\. Billing
>
> The contractor shall provide single billing dates for each DoD
> Component. Example: Air Force, first day of each month, Army, second
> day, Navy, third day, etc.
>
> h\. Training Video (TV)
>
> The contractor shall develop and distribute DoD specific TVs for
> individual cardholders, centrally billed account cardholders, and
> program managers. The product must be professionally produced. The
> initial quantity for production will be provided at least 60 days
> before implementation \[for informational and planning purposes only,
> the DoD estimates the initial quantity to be within 5000 to 7000
> Training Videos\]. The product will include segments on disputes,
> account set-up, card issuance, lost/stolen cards, cardholder
> statements, agency policy, and program management. The product will
> include a self testing segment at its conclusion.
>
> i\. Training Conference (Reference CB.21, of Master Contract)
>
> The contractor shall be required to participate in training
> conferences, at least six (6) times/two year period, but no more than
> twelve (12) times/two year period. These sessions shall be held in
> various domestic and international locations of the world. The Program
> Manager shall provide the contractor with the designated locations at
> least two (2) weeks prior to each session. Contractor shall be
> required to present program information in various sessions usually
> during a three, no more than 5 day period. All travel expenses
> associated with participation in the training and/or conference
> sessions are at the expense of the contractor.
>
> j\. Professional Conventions/Conferences
>
> The Contractor shall be required to participate as an exhibitor at DoD
> sponsored professional conventions/conferences, at least three (3)
> times/two year period, but no more than twelve (12) times/two year
> period. These sessions shall be held in various domestic and
> international locations of the world. The Program Manager shall
> provide the contractor with the designated locations at least two (2)
> weeks prior to each session. All travel expenses associated with
> participation in the training and/or conference sessions are at the
> expense of the contractor.
>
> k\. Security Requirements.
>
> The contractor shall provide background and security clearance level
> investigation in addition to the GSA Master Contract requirements for
> those contract personnel who have access to DoD sensitive systems.
>
> l\. Card Design
>
> The contractor shall design the front side of the card to have the
> same background design as the standard card but may require revisions
> to the format for inclusion of a chip at a later date. All chip
> functions will be defined and installed as a future modification to
> this Tailored Task Order. The back side of the card shall be designed
> to include the following: Authorized users Component name and/or logo,
> employee name, and "DoD Official Government Travel Card."
>
> m\. Merchant Acceptance
>
> In accordance with the GSA's Master RFP, and in addition to the
> requirements under exhibit 14 of the GSA Master Contract, the
> contractor must recruit and upgrade Merchant's as identified by the
> DoD within thirty (30) days of identification by the Program Manager.
>
> n\. Convenience Services
>
> The DoD requires the contractor to provide lost luggage and travel
> insurance to the individual card holder, on a "door-to-door" basis.

16\. Risk Mitigation

1.  The contractor shall perform credit check screening of applicants
    throughout the period of performance of this Tailored Task Order,
    only when and as requested by and prior authorization is received
    from the respective DoD CPM. Applicants are defined as DoD employees
    applying for the travel card. The results of the screening shall be
    provided solely to the requesting A/OPC within ten calendar days of
    submittal of the employee name and social security number. The
    Component cardholder's agreement will include a line for an employee
    approval to conduct the credit check. The cardholder agreement will
    delineate the terms and conditions related to the credit check. Upon
    review of the screening results, the agency may authorize the
    issuance of a pre-funded card as an alternative payment mechanism to
    the employee or may direct the contractor to issue a card to the
    employee.

> 2\. The contractor shall provide "pre-funded" cards on an exception
> only basis throughout the period of performance of this Tailored Task
> Order, at the prices specified under NationsBank's pricing schedule
> dated March 30, 1998 and in accordance with NationsBank's technical
> solution under their oral presentation package dated March 18, 1998,
> both of which are hereby incorporated into subject Tailored Task Order
> with the same force and effect as if provided in full text.
>
> 3\. The contractor shall provide, as requested by either the Program
> Manager or DFAS Contracting Officer, a report which shall contain the
> following information/data elements:
>
> Number of Credit Checks by Component, by rank, (military), grade
> (civilian) and status (Active Duty, Full-time employed, Guard/Reserve)
>
> Number of Success/Failures in same categories.
>
> The report shall also include any other associated costs to these
> information/data elements.
>
> The DoD Program Manager or DFAS Contracting Officer reserve the right
> to either "delete from" or "add to" the above information/data
> elements to this report under subject Tailored Task Order.
>
> 17\. Quality Assurance.
>
> The Quality Assurance for this Tailored Task Order shall be in
> accordance with the GSA Master Contract Clause CB.10 "Quality
> Assurance". Further, the DoD expects any products/services which are
> provided under this Tailored Task Order to be 98% accurate, complete
> and timely.

18\. Refunds

> DoD reserves the right to direct distribution of the IBA refunds to
> its Components.

19\. For the period of performance of the DoD's Tailored Task Order, the
value added products and services that are marked "[future]{.underline}"
requirements "may" or "may not" be [exercised]{.underline} at the option
of the DFAS Contracting Officer on behalf of the DoD.

20\. The DoD's Tailored Task Order is issued in accordance with the
terms and conditions of the GSA Master Contract, the Federal Acquisition
Regulations (FAR) and, the Defense Federal Acquisition Regulation
Supplement (DFAR). The DFAS Contracting Officer shall appoint a
Contracting Officer's Representative (COR) under separate appointment
letter for this Tailored Task Order.

\-[Nothing Follows]{.underline}-