David J. Shea, CPCM, PMP Program Director, Office of Charge Card Management (OCCM) Federal Acquisition Service GSA Tra

1. GSA SmartPay® Program Update David J. Shea, CPCM, PMP Program Director, Office of Charge Card Management (OCCM) Federal Acquisition ServiceGSA Training Conference & EXPOMay 4-6, 2010

2. Value to the Customer • Gain a general understanding of the GSA SmartPay® Program and its current initiatives: • Innovative products and services • Relevant legislation updates • The new era of transparency and accountability

3. Agenda • Welcome • What’s next for GSA SmartPay® 2 • GSA SmartPay® 2: More than One Flavor • State/Local Tax Exemption • The Leading Edge Charge Card Program • Relevant Legislation • The new Era of Transparency & Accountability • Questions

4. Welcome • What are your objectives for this session? • What issues would you like to discuss? • What questions would you like to have answered as a result of this session?

5. What’s Next for GSA SmartPay® 2?

6. GSA SmartPay® Program Overview DID YOU KNOW… $943 was spent on the charge cards every second in FY09 • The GSA SmartPay® program, established in 1998, enables over 350 Federal agencies/ organizations to obtain charge card products and services through master contracts thatGSA established with three banks: Citibank, JP Morgan Chase, and U.S. Bank • Agencies/organizations issued task orders against these master contracts to obtain charge card products and services • Agencies/organizations pay no direct fees to use the program • Period of performance for existing contracts is through 2018

7. How We are Encouraging Innovation • Comprehensive and flexible master contract • Strong customer orientation and frequent customer contact/support • Test and share best practices • Ongoing market research and regular meetings with industry • “Beyond Plastics” strategy and conferences • Balanced customer advocacy and program leadership • Training workshops, guides and annual conference

8. GSA SmartPay®: More Than One Flavor

9. Innovative Products & Services in Action • The GSA Office of Charge Card Management (OCCM) continues to focus on encouraging smarter use of cards and card-related services to meet the evolving needs of agencies/ organizations • Products & Services that are being implemented to meet evolving needs of agencies/organizations

10. Innovative Products & Services in Action (cont’d) • DID YOU KNOW… • If 10% of Federal discretionary grant spending transacted with a GSA SmartPay® solution, the Federal government could realize ~$260 million in annual refunds* • *Applied an average 40 refund basis points to eligible population Grants Funding Initiative: • GSA OCCM is collaborating with agencies/ organizations to explore the use of a grants funding card or cardless payment system Point of Sale Discount Initiative: • Ensuring that GSA SmartPay® purchase cards are recognized at the point of sale and that GSA Schedule prices are automatically applied, as well as any other applicable merchant discounts • Leverage the Federal Government’s purchasing scale • Increased cardholder buying power and refund potential • Requirement for the new Federal Strategic Sourcing Initiative (FSSI) Blanket Purchase Agreements (BPAs) for office supplies

11. Challenges to Innovation/Expansion • Need to help customers better comprehend range of products/services available • Personal card use knowledge can be inhibiting – focus customer on fully identifying business issue • Develop better tools to address significant educational/outreach challenge • Limited customer time and attention to issue • Card management largely a collateral duty in Federal Government • Significant Legislative/Regulatory challenges • Implementing Tax Increase Prevention and Reconciliation Act (TIPRA) Section 511 withholding requirements – opportunity or doom?

12. State/Local Tax Exemption • OCCM is developing a tax education/reclamation strategy, which begins by evaluating states by program spend to develop a customized approach for prioritizing jurisdictions; next steps include: • Assess potential value proposition of tax strategy by each jurisdiction • Establish timeline for negotiations and implementation • Section C.2.2.5 of the GSA SmartPay®2 Master Contract addresses tax reclamation as it pertains to contractor banks and requires banks to assist the government to reclaim taxes by: • Providing a detailed plan to the Government to maximize recovery of taxes paid on charge cards • Passing all detailed transaction data, as specified in C.3.2 Program and Transaction Data, to include tax information • Developing Electronic Access System (EAS) functions that allow for increased reporting of tax information (e.g., ability to flag transactions that have paid tax, and generate reports by agency/organization and state) • Preparing tax reclamation documentation on behalf of the agency/organization for submission to states and merchants

13. Use of the GSA SmartPay® Card for Local Travel • Changes to the Federal Travel Regulation (FTR) are in the process of being made, which will enable OCCM to permit use of the GSA SmartPay® Travel Card for local travel expenses • This change has been approved by the GSA Administrator and is awaiting Federal Register publication of the Direct Final Rule • OCCM is developing implementation guidance, revised travel card training, and a slightly modified card design to be introduced as travel cards are re-issued in the normal course of business • This new optional use of the card for local travel will be for civilian agencies, at their discretion (note: DoD JTR currently allows this use for local travel) • Agencies/organizations will need to request authority from OCCM before implementation

14. The Leading Edge Charge Card Program

15. Hallmarks of an Effective Charge Card Program • Have you analyzed your business processes? • Are there areas where GSA SmartPay® 2 products and services can be utilized to provide more streamline, efficient, and transparent solutions for your agency/organization? • Are you taking action to reduce the total dollar amount and total number of convenience checks at your agency/organization? • Have you considered the information management implications? • Open government initiative (M-10-06) • Do you maximize your refund potential? • Are you utilizing all the services available to you? • Reach out to your GSA SmartPay® point of contact and/or your contractor bank to discuss business challenges and potential solutions

16. Relevant Legislation, Guidance

17. Relevant Legislation/Guidance • Memorandum for the Heads of Departments and Agencies, Improving Government Acquisition (M-09-25) • How does this guidance affect GSA SmartPay® 2?

18. Relevant Legislation/Guidance (Cont’d) • Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) • How does this legislation affect GSA SmartPay® 2?

19. Relevant Legislation/Guidance (Cont’d) • Housing Assistance Tax Act (HATA) of 2008, Section 6050W • How does this legislation affect GSA SmartPay® 2?

20. The New Era of Transparency & Accountability

21. Open Government Directive • The Office of Charge Card Management (OCCM) is focused on principles or an open government: transparency, participation, and collaboration • Open Government Directive (M-10-06) released on December 8th, 2009 requires agencies to: • Publish government information online • Improve the quality of government information • Create and institutionalize a culture of open government • Create an enabling policy framework for open government

22. USAspending.gov Initiative • In September 2009 OMB requested that OCCM provide more detailed charge card transaction data to USAspending.gov • OCCM formed a USAspending.gov Working Group with customer agencies/organizations to respond to these requirements and developed a phased approach and timeline • OCCM is leading this initiative as a value-added service for customer agencies/organizations • OCCM continues to represent agencies/ organizations to OMB on this initiative • OCCM has prepared more detailed data aggregated by 30 Merchant Category Code (MCC) Clusters as Phase 1, ready to be delivered to OMB DID YOU KNOW… USAspending.gov was launched in December 2007 as a result of the Federal Funding Accountability and Transparency Act of 2006, which requires the full disclosure of all organizations receiving Federal funds

23. What are the next steps? • Release of version 2.0 and 2.1 of USAspending.gov including Phase 1 data reported at the MCC cluster level has been delayed – release timeframe is TBD • Currently OMB posts annual spend data on USAspending.gov • OCCM is waiting to hear back about a specific release time frame, therefore the timeline for reporting more detailed data is subject to change • For the subsequent phases, OCCM will work with agencies/organizations and OMB to: • Determine what additional data is not appropriate for display on USAspending.gov and provide justification (as required by OMB) • Assist in providing context information regarding unusual purchases, for potential posting on USAspending.gov • Remain engaged and involved with the USAspending.gov initiative

24. Questions

25. Thanks for your time and attention! David J. Shea, CPCM, PMP david.shea@gsa.gov (703) 605-2867 Please provide your feedback and thoughts about the current and future program at: www.gsa.gov/gsasmartpay under “GSA SmartPay® Program Feedback Form” Please note this updated version of the presentation will be available in June, 2010 on the GSA SmartPay website (www.gsasmartpay.gov) www.gsasmartpay.gov