Over the next several years, the government should be able to purchase and pay for most of its goods and services electronically. The September 1993 National Performance Review report specifically identified achievable savings from the systematic reform of the federal government's business processes. Electronic commerce facilitates that reform, generating benefits to business, government, and taxpayers. Electronic commerce allows the government to make more informed procurement decisions quicker and cheaper. Business benefits through better information about government requirements, more opportunities to sell to the government, and a more accurate and efficient electronic payment process.
Taxpayers benefit from lower government operating costs.
In 1993, the Office of Management and Budget created the federal Electronic Benefits Transfer Task Force to transform the paper-based benefit delivery system to an electronic benefit delivery system. In 1994, the task force began a federal-state partnership to create a smart card that would deliver a wide range of benefits. In 1994, Congress passed the Federal Acquisition Streamlining Act. In 1995, Congress passed the Federal Acquisition Reform Act. In 1996, Congress passed the Debt Collection Improvement Act, which requires the delivery of all federal payments and benefits using electronic funds transfer by January 1, 1999.