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Department of Defense Purchase Card Program . Implementation of Transaction Management and Electronic Data Interchange. By FY ‘00, 90 percent of good and services less than $2,500 will be bought using the purchase card.

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department of defense purchase card program

Department of Defense Purchase Card Program

Implementation of Transaction Management

and Electronic Data Interchange

DoD Joint Program Management Office

slide2

By FY ‘00, 90 percent of good and services

less than $2,500 will be bought using the purchase card.

Percentage of Total Micro-purchases Made Using the Purchase Card

90% GOAL

90% purchase card

utilization goal achieved by FY 99.

DoD Joint Program Management Office

DRO 2000 CD:Chapter 1.04

Source: Purchase Card PMO

slide3

Continued reductions in the total number of transactions

of less than $2,500 being processed via ‘traditional’ means.

Total Number of Micro-purchase Transactions by Process Type

90% reduction in the number of purchase

orders and BPA calls (micro-purchases)

processed via traditional means over 7 years.

BPA calls & POs

Purchase Card

Number of Transactions Processed x1,000

DoD Joint Program Management Office

DRO 2000 CD:Chapter 1.04

Source: Purchase Card PMO

slide4

Decrease administrative burden associated with processing micro-purchase transactions through increased purchase card transactions.

Annual Savings Associated with Purchase Card Transactions

Over $742M* in savings over

7 years on approximately

38 million transactions.

Total Annual Savings in $Millions

DoD Joint Program Management Office

Notes:

1) Purchase Card administrative savings based upon lowest published estimate of $20 saved per transaction over traditional processing means.

fy2000 card purchases
FY2000 Card Purchases

DoD Joint Program Management Office

fy2000 card sales
FY2000 Card Sales

DoD Joint Program Management Office

slide7

Why Change Anything?

  • Increased Rebates
  • Increased Internal Savings
  • Decreased Payment Costs
  • Enhanced Capabilities

DoD Joint Program Management Office

slide8

DOD Purchase Card Program Bank Refunds

USA = $2 billion in ‘00 sales

45 35.90

44 37.40

43 38.90

42 40.40

41 41.90

40 43.40

39 44.90

38 46.40

37 47.90

36 49.40

35 50.95

34 52.45

33 54.00

32 55.55

31 57.10

30 58.64

29 60.15

28 61. 41

27 63.25

26 66.35

25 67.95

24* 69.55

22 71.10

21 72.70

20 74.25

19 75.85

18 77.45

17 79.00

16 80.60

15 82.20

14 83.85

13 85.45

12 87.05

11 88.70

10 90.30

9 91.95

8 93.55

Basis Points (.00%)

Days after cycle

$10.8 - $18.8

Million

USA = 31 days/USAF* = 24 days

DoD Joint Program Management Office

slide9

Increased Savings with Web-Based Applications

  • Reduced Administrative Efforts for APC in Cardholder/Approving Official setup and maintenance
  • Reduced Administrative Efforts for Resource Managers in allocation/re-allocation of accounting data
  • Reduced Prompt Payment Interest Penalties
  • Reduced DFAS costs (64% reduction in LOA cost)
  • Increased Rebates

DoD Joint Program Management Office

slide10

Increased Capabilities with Web-Based Applications

  • Real Time review capability for card transactions by APC, AO, CH, RM/FSO
  • Real Time input capability for account data by APC, RM/FSO
  • Real Time oversight of cardholder purchases
  • Automated report/query capabilities
  • Accurate/Timely financial reporting
  • Positive funds control

DoD Joint Program Management Office

slide11

Post Obligation

ANSI X12.821

Process Invoice

ANSI X12.810

Bank

web-based

data file

Agency Program

Coordinator

CH

Cardholders

Billing

Official

Resource

Manager

slide12

FA2 -

Electronic Data Interchange “Key”

DoD Joint Program Management Office

department of defense purchase card program13
Department of Defense Purchase Card Program

In Summery

  • paperless web-based account setup and maintenance
  • paperless web-based account statements
  • paperless approval/certification
  • electronic download to accounting and finance systems

DoD Joint Program Management Office