U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

" ! SENATE 115TH CONGRESS

1st Session 

REPORT

2017

115–129 

Calendar No. 169 

SAVING FEDERAL DOLLARS THROUGH 

BETTER USE OF GOVERNMENT PURCHASE 

AND TRAVEL CARDS ACT OF 2017 

R E P O R T 

OF THE

COMMITTEE ON HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

TO ACCOMPANY

S. 1099 

TO PROVIDE FOR THE IDENTIFICATION AND PREVENTION OF 

IMPROPER PAYMENTS AND THE IDENTIFICATION OF STRATEGIC 

SOURCING OPPORTUNITIES BY REVIEWING AND ANALYZING THE 

USE OF FEDERAL AGENCY CHARGE CARDS 

JULY 11, 2017.—Ordered to be printed 


congress.#13
(II) 

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

RON JOHNSON, Wisconsin, Chairman 

JOHN MCCAIN, Arizona 

ROB PORTMAN, Ohio 

RAND PAUL, Kentucky 

JAMES LANKFORD, Oklahoma 

MICHAEL B. ENZI, Wyoming 

JOHN HOEVEN, North Dakota 

STEVE DAINES, Montana 

CLAIRE MCCASKILL, Missouri 

THOMAS R. CARPER, Delaware 

JON TESTER, Montana 

HEIDI HEITKAMP, North Dakota 

GARY C. PETERS, Michigan 

MAGGIE HASSAN, New Hampshire 

KAMALA D. HARRIS, California 

CHRISTOPHER R. HIXON, Staff Director 

GABRIELLE D’ADAMO SINGER, Chief Counsel 

DANIEL J. SPINO, Research Assistant 

MARGARET E. DAUM, Minority Staff Director 

STACIA M. CARDILLE, Minority Chief Counsel 

CHARLES A. MOSKOWITZ, Minority Senior Legislative Counsel 

KATHERINE C. SYBENGA, Minority Counsel 

LAURA W. KILBRIDE, Chief Clerk 

69–010 

Calendar No. 169 

115TH CONGRESS SENATE REPORT " ! 1st Session 115–129 

SAVING FEDERAL DOLLARS THROUGH BETTER USE OF 

GOVERNMENT PURCHASE AND TRAVEL CARDS ACT OF 

2017 

JULY 11, 2017.—Ordered to be printed 

Mr. JOHNSON, from the Committee on Homeland Security and 

Governmental Affairs, submitted the following 

R E P O R T 

[To accompany S. 1099] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Homeland Security and Governmental Affairs, 

to which was referred the bill (S. 1099) to provide for the identification and prevention of improper payments and the identification of 

strategic sourcing opportunities by reviewing and analyzing the use 

of Federal agency charge cards, having considered the same, reports favorably thereon without amendment and recommends that 

the bill do pass. 

CONTENTS 

Page 

I. Purpose and Summary .................................................................................. 1 

II. Background and the Need for Legislation ................................................... 2 

III. Legislative History ......................................................................................... 4 

IV. Section-by-Section Analysis .......................................................................... 4 

V. Evaluation of Regulatory Impact .................................................................. 5 

VI. Congressional Budget Office Cost Estimate ................................................ 5 

VII. Changes in Existing Law Made by the Bill, as Reported ........................... 6 

I. PURPOSE AND SUMMARY

S. 1099 authorizes the existing Office of Charge Card Management within the General Services Administration (GSA) review and 

analyze the use of charge cards by employees of the Federal government to identify trends of abuses of charge and travel cards as 

well as opportunities for strategic sourcing. The legislation also requires the Office of Management and Budget (OMB) to issue new 

2 

1On June 24, 2015, the Committee approved S. 1616, Saving Federal Dollars Through Better 

Use of Government Purchase and Travel Cards Act of 2015. That bill is substantially similar 

in purpose to S. 1099. Accordingly, this committee report is in large part a reproduction of 

Chairman Johnson’s committee report for S. 1616, S. Rep. No. 114–174. 2Department of Defense Office of Inspector General, DOD Cardholders Used Their Government Travel Cards for Personal Use at Casinos and Adult Entertainment Establishments 

(2015), available at http://www.dodig.mil/pubs/documents/DODIG-2015-125.pdf. 3DHS Purchase Cards: Credit without Accountability: Hearing Before the Comm. on Homeland 

Sec. & Governmental Affairs, 109th Cong. (2006), available at http://www.hsgac.senate.gov/hearings/dhs-purchase-cards-credit-without-accountability. 4Gym Memberships, Gift Cards and Hair Salons: Examining the Misuse of Government-Supplied Credit Cards: Hearing Before the H. Subcomm. on Government Operations, 113th Cong. 

(2014), available at https://oversight.house.gov/hearing/gym-memberships-gift-cards-hair-salons-examining-misuse-government-supplied-credit-cards/. 5Lisa Rein, The mysterious case of $54 million VA spent on prosthetics in $24,999 payments, The Washington Post (June 16, 2015), available at http://www.washingtonpost.com/blogs/federaleye/wp/2015/06/16/the-mysterious-case-of–54-million-va-spent-on-prosthetics-in-24999-payments/; 

Waste, Fraud, and Abuse in the VA Purchase Card Program: Hearing Before the H. Comm. on 

Veterans Affairs, 114th Cong. (2015), available at https://veterans.house.gov/hearing/wastefraud-and-abuse-in-va-s-purchase-card-program. 6See, e.g., Gov’t Accountability Office, GAO–08–333, Governmentwide Purchase Cards: Actions Needed to Strengthen Internal Controls to Reduce Fraudulent, Improper, and Abusive 

Purchases (2008), available at http://www.gao.gov/new.items/d08333.pdf. 

guidance to agencies for the oversight and administration of Federal charge cards. In addition, S. 1099 establishes an interagency 

task force to develop and share best practices, requires the development of an interagency library of analytics tools and data sets for 

use in managing charge card transactions, and sets requirements 

for GSA and other agencies to report to Congress on implementation of the bill.1

II. BACKGROUND AND THE NEED FOR LEGISLATION

The use of Federal agency purchase cards and travel cards poses 

ongoing challenges and opportunities for Federal agencies. Improved oversight, controls and analysis of Federal charge card use 

could result in reduced improper payments and misuse. The Federal Government could also analyze charge card use for potential 

savings through strategic sourcing opportunities. 

Federal charge cards have been the subject of congressional hearings and Office of Inspector General (OIG) reviews highlighting 

their misuse. For example, the misuse of government travel cards 

by the Department of Defense (DOD) employees at casinos and 

adult entertainment establishments was the subject of a DOD OIG 

report in 2015.2 That OIG report detailed specific steps needed for 

improved oversight by the DOD, many of which could also be 

adopted by other agencies. Similar problems at the DOD spurred 

a 2006 Committee hearing,3 and a subcommittee of the House 

Oversight and Government Reform Committee also held a hearing 

on the misuse of Federal charge cards for high-end gym memberships, gift cards, and hair salons.4 The misuse of Federal purchase 

cards within the Department of Veterans Affairs, where cardholders at the agency appeared to have avoided using competitive 

bidding by breaking up large purchases into many smaller ones, 

was also the topic of news articles and a congressional hearing.5

The Government Accountability Office has also issued reports recommending action to curb abuse and improper payments.6

The oversight of Federal purchase cards also has been a focus of 

previous Committee legislation. In 2012, the Committee favorably 

reported the Government Charge Card Abuse Prevention Act, sponsored by Senator Charles Grassley, which was signed into law later 

3 

7Pub. L. No. 112–194 (112th Cong.). 

8 Exec. Order No. 13681, available at https://obamawhitehouse.archives.gov/the-press-office/ 

2014/10/17/executive-order-improving-security-consumer-financial-transactions. 9OMB Circular A–123, App. B, available at https://www.whitehouse.gov/sites/whitehouse.gov/ 

files/omb/circulars/A123/a123_appendix_b.pdf. 10Department of Defense Office of Inspector General, DOD Cardholders Used Their Government Travel Cards for Personal Use at Casinos and Adult Entertainment Establishments 

(2015), available at http://www.dodig.mil/pubs/documents/DODIG-2015-125.pdf. 

that year.7 The law requires agencies to establish safeguards and 

internal controls for charge cards, including use of systems and 

technologies to identify illegal, improper, or erroneous purchases. 

The law also requires annual reporting by Federal agencies and 

OMB, as well as periodic risk assessments by Inspectors General 

of agency purchase card programs. 

The Obama administration also took action to strengthen Federal charge card oversight during the past several years. In 2014, 

President Obama signed Executive Order 13681, Improving the Security of Consumer Financial Transactions, which included the promotion of more secure charge card operations for Federal agencies.8

Also, the OMB Circular A–123 Appendix B, Improving the Management of Government Charge Card Programs, detailed improved 

policies and procedures for federal charge card programs.9

However, there is still a clear need for strengthening and improving Federal oversight and administration by Federal agencies 

of charge card programs. While agencies are required to individually develop new oversight techniques to discuss misuse, there is 

no consistent method for Federal agencies to quickly share the 

identified fraud schemes or oversight techniques, such as those 

identified by the DOD OIG.10 In addition, not all government agencies have established robust data mining, or anti-waste and fraud 

analytics, for their charge card programs. The Federal Government 

could also do a better job surveying agency-wide purchase card 

data to identify ways to improve efficiency, as well as taking aggressive efforts to recover inappropriately spent dollars. 

Of the two types of charge cards, travel cards and purchase 

cards, purchase cards present the greater risk to taxpayers. In 

most cases, individual employees are only reimbursed for authorized charges on travel cards and must pay for any unauthorized 

charges using their own personal funds. On the other hand, in 

most cases, agencies pay the entire monthly bill for purchase cards 

and can only identify unauthorized charges after they have already 

been paid. 

Still, travel cards data presents insight into the travel patterns 

of agencies and can help GSA identify things like excess conference 

spending, first-class travel, and travel charges incurred near the 

employee’s home. Many of these charges may not be fraudulent, 

and likely were approved by supervisors. 

Similarly, purchase cards—due to the structured, electronic nature of the transactions—provide government-wide insight into 

small-dollar spending patterns that is not available elsewhere, such 

as USAspending.gov. GSA analytics can use this information to 

find ways to save money. 

The Saving Federal Dollars Through Better Use of Government 

Purchase and Travel Cards Act of 2017 would improve anti-waste 

and fraud analysis and facilitate the sharing of information about 

charge card abuse and best practices among Federal agencies. The 

4 

11Pub. L. No. 112–194 (112th Cong.). 12Gov’t Accountability Office, GAO–13–417, Strategic Sourcing: Leading Commercial Practices 

Can Help Federal Agencies Increase Savings When Acquiring Services (2013), available at 

http://www.gao.gov/products/GAO-13-417. 

legislation would also establish procedures to identify strategic 

sourcing opportunities through analysis of Federal charge card 

transactions. 

The bill instructs the GSA to develop a strategy to review charge 

card purchases to better identify patterns of questionable transactions and recover improper payments. GSA already collects 

charge card transaction data in its administrative role of overseeing Federal agency charge card programs. S. 1099 is intended 

to require GSA to assist agencies in their ongoing oversight responsibilities through the analysis of the transaction data. 

S. 1099 builds on the 2012 Government Charge Card Abuse Prevention Act, which required agencies to establish certain types of 

control and oversight over the agency’s charge card usage.11 Under 

S. 1099, GSA would assist agencies by conducting sophisticated, 

government-wide analysis for potential waste and fraud schemes, 

high-risk sellers and other risks of charge card misuse, and share 

best practices across the Federal Government. 

Finally, the legislation would facilitate analysis of governmentwide purchase card data spending patterns to better leverage Federal Government purchasing power when buying in bulk. This is 

often called ‘‘strategic sourcing,’’ and has become a proven way to 

save taxpayer funds.12

III. LEGISLATIVE HISTORY

Senator Tom Carper, Ranking Member Claire McCaskill, and 

Senator Charles Grassley introduced S. 1099, the Saving Federal 

Dollars through Better Use of Government Purchase and Travel 

Cards Act of 2017, on May 11, 2017. The bill was referred to the 

Homeland Security and Governmental Affairs Committee. 

The Committee considered S. 1099 at a business meeting on May 

17th, 2017. The bill was ordered reported favorably en bloc by voice 

vote. Members present for the vote on the bill were Senators Johnson, McCain, Portman, Paul, Lankford, Enzi, Hoeven, Daines, 

McCaskill, Tester, Heitkamp, Peters, Hassan, and Harris. 

IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title 

This section presents the bill’s title as ‘‘Saving Federal Dollars 

Through Better Use of Government Purchase and Travel Cards Act 

of 2017.’’ 

Sec. 2. Definitions 

This section provides definitions for ‘‘Improper Payment,’’ ‘‘Questionable Transaction,’’ and ‘‘Strategic Sourcing.’’ 

Sec. 3. Expanded use of data analytics 

This section instructs OMB and GSA to develop a strategy to better use data analytics in overseeing travel and purchase cards. It 

states that GSA’s existing capabilities should suffice. The purpose 

of the analytics expanded use is to (1) identify patterns or trends 

5 

of questionable transactions, (2) find potential areas for agencies to 

further use streamlining processes and cost reduction practices, (3) 

develop metrics for high-risk activities, and (4) devise a plan to create a library of analytic tools for agencies. 

Sec. 4. Guidance on improving information sharing to curb improper payments 

This section states that no later than 180 days after this bill is 

enacted, the director of OMB, the Administrator of GSA and the 

interagency charge card data management group established in 

section 5 shall issue guidance to improve information sharing by (1) 

requiring Federal agencies to identify high-risk activities and communicate that information, (2) requiring Federal agencies to review 

reports by charge card-issuing banks on possible fraud or improper 

transactions, (3) share information that may be related to potential 

questionable transactions, (4) consider recommendations made by 

Inspectors General, and (5) include other requirements determined 

by the Director to carry out the bill. 

Section 5. Interagency Charge Card Data Management Group 

This section creates the Interagency Charge Card Data Management Group to develop and share best practices. In addition to creating the group it lays out rules, oversight, and membership of the 

management group. 

Section 6. Reporting requirements 

No later than one year after the enactment of the bill, GSA shall 

submit a report to Congress on its implementation. In addition to 

the report to Congress, the head of each Federal agency described 

in the Government Charge Card Abuse Prevention Act of 2012 

shall submit a report to OMB. OMB shall also submit a report to 

Congress about the implementation of the bill. GSA shall submit 

a report to Congress identifying further potential saving opportunities for government agencies under the Federal charge program. 

V. EVALUATION OF REGULATORY IMPACT

Pursuant to the requirements of paragraph 11(b) of rule XXVI of 

the Standing Rules of the Senate, the Committee has considered 

the regulatory impact of this bill and determined that the bill will 

have no regulatory impact within the meaning of the rules. The 

Committee agrees with the Congressional Budget Office’s statement that the bill contains no intergovernmental or private-sector 

mandates as defined in the Unfunded Mandates Reform Act 

(UMRA) and would impose no costs on state, local, or tribal governments. 

VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

JULY 5, 2017. 

Hon. RON JOHNSON, 

Chairman, Committee on Homeland Security and Governmental Affairs, U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 1099, the Saving Federal 

6 

Dollars Through Better Use of Government Purchase and Travel 

Cards Act of 2017. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

KEITH HALL. 

Enclosure. 

S. 1099—Saving Federal Dollars Through Better Use of Government Purchase and Travel Cards Act of 2017 

S. 1099 would increase oversight of federal agencies’ use of purchase and travel charge cards. The legislation would require the 

Office of Management and Budget and the General Services Administration (GSA) to develop a strategy to enhance the analysis 

of data to detect improper use of such cards. The bill also would 

establish an interagency task force to facilitate the sharing of information about the use of federal charge cards and to promote best 

practices to reduce fraud and improper payments. Finally, S. 1099 

would require agencies to report to the Congress on the use of such 

cards. 

Information from the GSA suggests that most provisions of the 

bill would codify current policy and practice. Under current law 

and policy, agencies have many tools to combat fraud and misuse 

related to charge cards. Agencies have coordinators to oversee the 

use of charge cards; they also use tools such as credit limits, blocks 

on merchants based on the type of business, activity reports, and 

employee guides that explain best practices for using federal charge 

cards. In addition, the 73 Inspector Generals (IG) and their 13,000 

employees spend about $2.7 billion a year to detect and deter 

fraud, waste, and mismanagement of government funds. Because of 

those ongoing activities, CBO estimates that implementing the bill 

would not significantly increase costs. 

The bill could affect direct spending by agencies not funded 

through annual appropriations; therefore, pay-as-you-go procedures 

apply. CBO estimates, however, that any net increase in spending 

by those agencies would not be significant. Enacting S. 1099 would 

not affect revenues. 

CBO estimates that enacting S. 1099 would not increase net direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2028. 

S. 1099 contains no intergovernmental or private-sector mandates as defined in Unfunded Mandates Reform Act and would not 

affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Matthew Pickford. 

This estimate was approved by Theresa Gullo, Assistant Director 

for Budget Analysis. 

VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

Because this legislation would not repeal or amend any provision 

of current law, it would not make changes in existing law within 

the meaning of clauses (a) and (b) of paragraph 12 of rule XXVI 

of the Standing Rules of the Senate. 

Æ