# Presentation: 526323

## Master Contract Overview

**Dana Blank**
**Amha Tekalign**
**GSA SmartPay****® Program Office**

**Notes:**
Good afternoon/morning,
Again I want to welcome you to the 8th annual gsa smartpay conference.
I am Dana Blank and also speaking today is Amha Tekalign.  We are both contract specialists for the GSA smartpay program.

## What We’ll Cover Today

- Master Contract features
- Liability
- Roles & responsibilities
- Contract prohibitions
- Preventing misuse and fraud
- Benefits
- Contacting GSA

**Notes:**
[talk about the slide]
How many of you have been involved in this program less than a year?

How about 2 years...... It seems we have some experienced people.

This should hopefully be a refresher for you.

As we go through these topics, feel free to ask questions.

I’m sure many of you are anticipating and preparing for the new contract that will be awarded next year, but how many of you know what year this contract was awarded?

## Contract Basics

- In 1998, GSA contracted with five banks to provide purchase, travel, and fleet card services:
- Bank of America    – Mellon Bank (Purchase only)
- JP Morgan Chase  – U.S. Bank
- Citibank
- Contracts collectively known as the GSA SmartPay® “Master Contract”
- Banks also provide: convenience and traveler’s checks; debit cards; and other value-added products/services

**Notes:**
Now, to give you a brief background of the program:
The GSA SmartPay® Contract is a Multiple Award Contract that was awarded based on a competitive procurement.  Previously, the Government purchase card contract called IMPAC from US Bank was a single award.  American Express had the travel card and Wright Express had the fleet card.
In 1998, GSA contracted with  5 banks..........now of these banks, I need to note that Nations Bank was awarded and later became Bank of America.  The same is true that First Chicago was the awarded and became Bank One and most recently has become JPMorganChase.
The contracts collectively are known as the GSA Master contract.
A copy of the “Master Contract” can be found at www.gsa.gov/gsasmartpay.   This web site contains quite a bit of info and I will be referring to it quite often.
Banks also provide convenience and traveler’s checks, debit cards, and other value-added products/services. 
A listing of each bank’s value-added products/services can also be found within the “Master Contract”  on our web site

## Contract Basics

- Fixed price, ID/IQ type contract
- Five year base period (11/98 – 11/03)
- Five one-year options available (11/03 - 11/08)
- Agencies/Organizations could:
- Place task order(s) with selected bank(s) based on identified needs and best value
- Pool with other agencies/organizations, or
- Tag-along with other agencies/organizations

**Notes:**
As you can see, this is an IDIQ contract.  IDIQ stands for Indefinite Delivery/Indefinite Quantity.  This type of contract allows agencies to place task orders against the Master Contract that meet their specific needs.
The master contract is a 5 yr base period with 5 one-yr options.  Currently we are in the third option period of the contract.
Agencies/organizations had the option of either placing their own task order, pool with other agencies to place a task order or tag-along with another agency’s task order.  The pool consists of several agencies coming together to develop their requirements and placing one task order for the POOL.  The tag is one agency develops the requirement and other agencies TAG along.

## Understanding Liability

- Under the Master Contract, there are two types of accounts:  Centrally Billed Accounts (CBA) and Individually Billed Accounts (IBA)
- CBAs are accounts established for the agency’s/ organization’s use
- Agency/organization is liable for all activity by the authorized user

**Notes:**
Under the Master Contract, there are two types of accounts:  Centrally Billed Accounts (CBA) and Individually Billed Accounts (IBA)
CBAs are accounts established for the agency’s/ organization’s use.  
Therefore the Agency/organization is liable for all activity by the authorized user 
Centrally Billed Accounts may be card/cardless accounts.  Payments are made directly to the Bank by the agency/organization.  All fleet and purchase cards are centrally billed cards/accounts.  Agencies specify which travel cards and integrated solutions cards should be centrally billed based upon their needs at the task order level.

Lastly, the travel card is the only card to have individually billed accounts?

## Understanding Liability

- IBAs are accounts established for individual travelers and used to pay for travel and travel-related expenses
- Cardholder is liable for the card
- In case of misuse or fraud by an unauthorized user, cardholder liability is limited to $50
- Applies equally to CBAs and IBAs

**Notes:**
Individually Billed Account cards are utilized for official travel only.  Official travel is travel performed at the direction of a Federal agency under an official travel authorization.  The cardholder is liable for the card payment even if the agency does reimburse the cardholder in a timely manner.
Travel cards are governed by the Federal Travel Regulations for civilian employees and the Joint Federal Travel Regulations for members of Uniformed Services.
In the case of misuse or fraud by an unauthorized user, cardholder liability is limited to $50...this applies equally to CBAs and IBAs
In case you have not had an opportunity to scan the conference program, there are sessions that go more in depth on fraud and abuse.  You may want to attend one of these sessions.  

## Major Program Participants

- Three major players in the GSA SmartPay® program:
- The five contractor banks
- User agencies/organizations
- GSA

**Notes:**
Three major players in the GSA SmartPay® program:
The five contractor banks
User agencies/organizations
GSA
I am going to talk about the roles of the players in the program but I want to give you some terminology.  There are mandatory and non-mandatory users.  Mandatory users are those agencies/organizations that have agreed to be a mandatory user of one or more of the core business line(s) under the GSA contract.  The mandatory users were established when the requirements were being developed during 1997.  Non-mandatory users are those that have not agreed to do so.  These agencies/organizations are not under any obligation to use the GSA contract for their core fleet, travel, and/or purchase card products and services.

## The Banks

- The banks provide purchase, travel, and/or fleet cards to their client agencies/ organizations.
- The banks cannot refuse to issue cards, unless the cardholder’s GSA SmartPay® account had previously been canceled due to non-payment
- Each agency/organization sets the spend limits for each account, but the bank can furnish information to assist in setting  reasonable spend limits (e.g., historical spend records or credit checks)
- When cards expire, the banks provide replacement cards (unless the agency requests no replacement be provided)

**Notes:**
The banks cannot refuse to issue cards (under a mandatory agency’s task order), unless the cardholder’s GSA SmartPay® account had previously been canceled due to non-payment. 
GSA SmartPay® cards will either be a Visa or a Mastercard.  These  cards will begin with four digits unique to this program.  Visa cards begin with a 4 and Mastercard begins with a 5.  Our web site has a larger listing of the numbers along with the core business line they represent.  There can also be covert numbers that do not identify the card as being a government charge card.
Each agency/organization sets the spend limits for each account, but the bank can furnish information to assist in setting  reasonable spend limits (e.g., historical spend records or credit checks)  
When cards expire, the banks provide replacement cards (unless the agency requests no replacement be provided)
For suspension and cancellation specifics, refer to C.36 and C.37 in the Master Contract.  We need to apply the entirety of a clause.  An example of when this did not occur is when one of the banks cancelled a card that had been suspended twice in the previous 12 months, per the master contract.  However, the cardholder paid the account within the 120 days and should not have been cancelled.  Basically, the clause gives precise guidance but in this situation only portions of the clause were followed.  AOPC’s can cancel a card but the banks have strict guidance as to when they can cancel.
According to C.35.3 in the Master Contract, banks must submit a report to the A.OPC listing each expiring account or card at least 90 calendar days prior to the expiration of each account or card

## The Banks

- Provide training to A/OPCs through:
- Annual GSA SmartPay® Conference
- Internet (Electronic Access System)
- On-site training to groups of 25 or more program personnel (e.g., A/OPC, DBO, TDO) at agency/organization’s request
- Provide assistance with audits and investigations
- Banks are NOT permitted to release account information for any purpose outside of the contract (e.g. for marketing other products)

**Notes:**
Provide training to A/OPCs through:
Annual GSA SmartPay® Conference
Internet (Electronic Access System)
On-site training to groups of 25 or more program personnel (e.g., A/OPC, DBO, TDO) at agency/organization’s request
Training requirements can be found in C.25 of the Master Contract.
Banks are also to provide assistance with audits and investigations
Banks are NOT permitted to release account information for any purpose outside of the contract (e.g. for marketing other products)
This can be found in C.22 RELEASE OF PROGRAM INFORMATION in the Master Contract which states that “Contractor shall not release, sell, or make available any such information to any third party except as otherwise specifically provided in the contract.

## The Banks

- Provide A/OPC Guide that includes:
- Account set-up and maintenance procedures
- Transaction dispute procedures
- Reconciliation procedures
- Account suspension and cancellation procedures
- Payment requirements
- Authorized uses
- Toll-free/collect, task order manager telephone number
- The guide will be made available within 10 days of request by the agency/organization

**Notes:**
Provide A/OPC Guide that includes:
Account set-up and maintenance procedures
Transaction dispute procedures
Reconciliation procedures
Account suspension and cancellation procedures
Payment requirements
Authorized uses
Toll-free/collect, task order manager telephone number
The guide will be made available within 10 days of request by the agency/organization 
In addition to the Agency/Organization Program Coordinator Guide, banks also provide items such as a Cardholder Guide, a Designated Billing Office Guide, and a Transaction Dispute Office Guide.  

## The Banks

- Provide electronic reporting tools
- Invoices & invoice status reports
- Transaction dispute report
- Delinquency report
- Pre-suspension/pre-cancellation report
- Suspension/cancellation report
- Renewal report (cards due to expire)
- Detailed electronic transaction file (each cardholder’s detailed transactions for each cycle)
- Other reports as required by the agency/organization and commercially available

**Notes:**
[talk about above first]
These reports are referred to as Essential Reports, meaning that if the agency/organization requires them, the Contractor shall provide them.  
These reports may or may not be commercially standard reports.  If the banks have a commercial report that will meet the stated specific need in the listed reports, then they may propose to provide that report in lieu of the stated reports if approved.
Some “Other Agency Reports” include an Account Activity Report, Current Accounts Report, 1099 Report, and Write-Off Report, among others.
Examples of reports are located in section C.39 GSA CONTRACTING OFFICE REPORTS in the Master Contract

## The A/OPCs

- _Your Agency/Organization needs to:_
- Identify/assign appropriate personnel to manage the card program(s)
- Develop, issue & implement agency policies regarding the mgmt of the card program(s)
- Pay all CBAs on a timely basis
- Administer the task order

**Notes:**
Your Agency/Organization needs to:
Identify/assign appropriate personnel to manage the card program(s) These individuals are called Agency/Organization Program Coordinators.  A/OPC’s responsibilities are addressed in the Addendum to Clause 52.212-4, paragraph 32.  There will most likely be multiple levels of program coordinators within the program for each agency/organization.
Develop, issue & implement agency policies regarding the mgmt of the card program(s) 
Pay all CBAs on a timely basis.  This is very important...it may affect the amount of the rebates your agency receives. 
Administer the task order

## The A/OPCs

- _Your Agency/Organization needs to:_
- Follow established procedures for disputing transactions, suspending, canceling, or deactivating accounts, etc.
- Conduct periodic reviews of the card program(s) and implement recommendations to improve performance
- Promote ethical & responsible use of the card(s)

**Notes:**
Your Agency/Organization needs to:
Follow established procedures for disputing transactions, suspending, canceling, or deactivating accounts, etc. These procedures can be found in C.36 and C.37 of the Master Contract.  The A/OPC reserves the right to cancel an individually billed account or centrally billed account under his/her purview and document the reasons for cancellation at any time.
I would like to note here that once a card has been cancelled for nonpayment, the bank is not required to reinstate the account.  You can refer to CB.18.2 in the master contract 
Conduct periodic reviews of the card program(s) and implement recommendations to improve performance.  Recommendations and performance improvements can be shared with other agencies as best practices to be implemented into other agencies’ programs.  GSA puts out Purchase Card and Travel Card best practices.  These can be located in the Publications/Presentations section of  www.gsa.gov/gsasmartpay
Promote ethical & responsible use of the card(s)

## A/OPC Responsibilities

_**YOU**_ manage the card program:
- Set up and maintain accounts and set authorization controls for each account (e.g., spend limits, transaction limits, MCC blocks)
- Monitor cardholder activity (through electronic reports)
- Report suspicious or questionable transactions to proper authorities
- Answer cardholder questions & provide assistance
- Deactivate, suspend, or cancel cards as necessary
- Stay up-to-date on the GSA SmartPay® program

**Notes:**
The A/OPC serves as the focal point for answering questions, contract administration, coordination of the applications, issuance and destruction of cards, establishment and review of reports, administrative training, and is the overall point of contact.  In addition, the A.OPC may be the ordering Contracting Officer in some agencies.
YOU, THE AOPC manage the card program: 
Set up and maintain accounts and set authorization controls for each account (e.g., spend limits, transaction limits, MCC blocks) 
Monitor cardholder activity (through electronic reports) 
Report suspicious or questionable transactions to proper authorities 
Answer cardholder questions & provide assistance
Deactivate, suspend, or cancel cards as necessary
Stay up-to-date on the GSA SmartPay® program
As a best practice, an AOPC’s span of control should be 5 – 10 cardholders.

## A/OPC Responsibilities

- Travel Card A/OPCs will also:
- Monitor account delinquency (particularly travel A/OPCs) and work with cardholders and banks to resolve delinquency issues as soon as possible
- Purchase Card A/OPCs will also:
- Work with Approving Official (AO) to verify account reconciliation(s) (or, in some cases, act as the AO) and monitor account activity for questionable or suspicious activity

**Notes:**
Travel Card A/OPCs will also:	
Monitor account delinquency and work with cardholders and banks to resolve delinquency issues as soon as possible. Many program managers in the agencies have established policies regarding program management and cardholder usage; conducted cardholder training on standards of conduct/ethics, travel policy and consequences of misuse; reduced credit limits; maximized the use of the banks’ pre-suspension reports; deactivated travel cards not in use by frequent travelers; and blocked certain merchant category codes (meaning that the card could not be used at locations with certain codes). Of course there is the example of a business of questionable reputation that had a MCC of a restaurant and therefore went through on the charge transaction.  When agencies followed these measures, they experienced a significant decrease in their IBA delinquencies. The effort of agencies to decrease delinquencies has produced a continuing overall decline in delinquency rates. A/OPCs can establish audit/review periods for cardholders and enforce documentation requirements for account reconciliation(s). 
Purchase Card A/OPCs will also:
Work with Approving Official (AO) to verify account reconciliation(s) (or, in some cases, act as the AO) and monitor account activity for questionable or suspicious activity. OMB recommends that A/OPCs conduct annual reviews of cardholder accounts and transactions, at a minimum.  A/OPCs should conduct reviews as needed.

## GSA SmartPay® Program Office

- What does GSA do for you?
- Administer the Master Contract
- Develop and release  program guides and training for A/OPCs and cardholders, such as:
- Online purchase and travel card training for cardholders
- A/OPC Survival Guide (for travel card A/OPCs)
- Blueprint for Success:  Purchase Card Oversight (for purchase card A/OPCs)
- “But I Didn’t Know...” brochure on do’s and don’ts for travel cardholders
- Online purchase and travel card program training for A/OPCs

**Notes:**
What does GSA do for you?
Administer the Master Contract.  The GSA Contracting Officer is the only person authorized to make any changes in any of the requirements of the master contract.  GSA provides POC’s responsible for each agency/organization to answer any questions that agency/organizations may have regarding the Master Contract.  GSA also extends the option periods for the Master Contract, approves modifications, and receives various reports from the banks.
GSA provides contract interpretation and clarification.  We meet with agencies to discuss program issues when asked.
Develop and release  program guides and training for A/OPCs and cardholders, such as:
Online purchase and travel card training for cardholders
A/OPC Survival Guide (for travel card A/OPCs) [HOLD UP COPIES]
Blueprint for Success:  Purchase Card Oversight (for purchase card A/OPCs)
“But I Didn’t Know...” brochure on do’s and don’ts for travel cardholders 
Online purchase and travel card program training for A/OPCs
These guides can be located under the Publications/Presentations section of our web site

## GSA SmartPay® Program Office 

- What else does GSA do for you?
- Issue and distribute contract and program information through the GSA SmartPay® website
- Master Contract
- Agency task orders
- Performance reports
- Online training and downloadable publications
- Issue a monthly CFO report which tracks agency delinquency rates
- Sponsor Annual GSA SmartPay® Conference
- Sponsor interagency work groups and roundtables

**Notes:**
What else does GSA do for you?
Issue and distribute contract and program information through the GSA SmartPay® website
Master Contract
Agency task orders
Performance reports 
Online training and downloadable publications
Issue a monthly CFO report which tracks agency delinquency rates
Sponsor Annual GSA SmartPay® Conference
Sponsor interagency work groups and roundtables 
All of these items are in place in order to obtain feedback from our customer agency/organizations.  It is important that customers provide suggestions and feedback so that we can continue to update and improve the Government charge card program.

## Contractual Prohibitions

- _Purchase card prohibitions:_
- Long term lease or rental of land or buildings
- Travel or travel-related expenses (excluding conference rooms, meeting spaces, and local transportation services (e.g., subway tokens)
- Cash advances

**Notes:**
Purchase card prohibitions:
Long term lease or rental of land or buildings
Travel or travel-related expenses (excluding conference rooms, meeting spaces, and local transportation services (e.g., subway tokens)
Cash advances – unless permitted by agency at task order level
Travel and travel-related expenses are only charged to individually or centrally billed travel cards.
There may be agency specific restrictions...as always, you need to check your agency policy.

## Preventing Waste, Fraud and Abuse

- Protect your card program from waste, fraud,
- and abuse by:
- Establishing reasonable authorization controls for each cardholder (e.g., spend limits, transaction limits)
- Setting Merchant Category Code (MCC) blocks for categories unrelated to mission
- Deactivating or canceling accounts
- Using the bank’s reporting tools to manage delinquency, detect questionable transactions and monitor activity

**Notes:**
Protect your card program from waste, fraud, 
and abuse by:  
Establishing reasonable authorization controls for each cardholder (e.g., spend limits, transaction limits)
Setting Merchant Category Code (MCC) blocks for categories unrelated to mission.  Merchant Category Codes may be blocked through the banks’ electronic access systems.
Deactivating or canceling accounts.  Deactivating accounts can also lead to lower overall agency delinquency rates.
Using the bank’s reporting tools to manage delinquency, detect questionable transactions and monitor activity.  Reports that are useful for oversight of the prevention of waste, fraud, and abuse include declined transactions, unusual spending activity, and disputes.
Under no circumstances should any cardholder allow someone else use their card!!!!!

## Benefits of GSA SmartPay®

- Administrative savings and efficiency
- Rebates based on dollar volume and payment performance
- Worldwide acceptance
- Merchants’ preference
- Travel card accesses City Pairs Program – discounted fares on airlines, bus, train, etc.
- Data availability

**Notes:**
Administrative savings and efficiency.  A 1994 study by the Purchase Card Council, which concluded that $53.77 savings is achieved each time a purchase card is used instead of a written purchase order. In FY05, agencies/organizations achieved over 1.3 billion in administrative savings.  
Agency rebates in 2005 totaled over $118 million
Worldwide acceptance 
Merchants’ preference
Travel card accesses City Pairs Program – discounted fares on airlines, bus, train, etc.  To learn more about the City Pairs Program and the travel attend one of our training sessions at the conference.
Data availability.  Banks provided required reports to requesting agency/organizations and also tailor reports to each agency’s specific needs.

## Questions?

_**www.gsa.gov/gsasmartpay**_

**Notes:**
And just in case you did not remember our web site, here it is.
Questions?????? 
Thank you and enjoy the conference