1. CPMs, OA/OPCs, A/OPCs, FMs/RMs SP3
Understanding Army / Air Force / Defense Agency Refunds under SmartPay® 3 (This One-Pager does not apply to Navy)
CPMs, OA/OPCs, A/OPCs, FMs/RMs
SP3
To simplify SmartPay® 3 (SP3) refund management and verification, GSA eliminated the previous, complex refund calculation method. Under DoD’s SP3 Task Orders (TO), refunds are based on dollar spend and days to pay the invoice within specific pay bands.
Refund Reports
Quarterly Refund Summary – provided to Level 2s.
Quarterly Refund Detail – provided to Level 2s/3s for dissemination.
How will refunds be calculated under SP3?
Refunds will be calculated and aggregated for quarterly remittance in accordance with paragraph B.3.3, Calculation of Refunds, in the SP3 Master Contract (provides example calculation).
Convenience Check Spend is not included in Refund-Eligible Net Charge Volume.
Per the A/AF/DA TO, refunds must be calculated and distributed at the Managing Account (MA) level and paid as electronic credit back to the MA, unless the distribution or method of distribution is otherwise indicated by the Component.
(Refund Calculation Continued )
What do I need to know?
The DoD SP3 Master Contract ( requires quarterly refund remittance by the 15th calendar day of each FY quarter (1/15, 4/15, 7/15, 10/15). If the date falls on a weekend or federal holiday, the corresponding payment is to be remitted by the next business day.
The GSA Contract Access Fee (CAF) shall be a set number of basis points (BPs) applied against the Net Charge Volume to be deducted from Gross Refunds (1 BP = .0001; 100 BP = 1%). GSA has authority to change the CAF every year, but it may not exceed 6.5 BP.
Regardless of Component refunds during a given period, the bank is required to remit the CAF to GSA for the period in question.
5 March 2019
Page 1 of 2
3OP:013
PIEE
DAU
DPC/Purchase Card
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2. CPMs, OA/OPCs, A/OPCs, FMs/RMs SP3
Understanding Army / Air Force / Defense Agency Refunds under SmartPay® 3 (This One-Pager does not apply to Navy)
CPMs, OA/OPCs, A/OPCs, FMs/RMs
SP3
How will refunds be calculated under SP3? (continued)
Days to pay are accounted for by refund BP “day-banding” for Standard and Large-Ticket Transaction contract line item numbers (CLINs). To maximize refunds, optimize day-bands for Standard and Large-Ticket Transaction CLINs:*
A/AF/DA TO:
0 – 8 Calendar Days**
9 – 19 Calendar Days
20 – 30 Calendar Days
31+ Calendar Days
CPMs are responsible for validating quarterly refunds at the level being credited.
*Separate BPs for each Standard versus Large-Ticket day band. Lower refunds paid for Large-Ticket items. Dollar threshold for Large-Ticket items determined by Mastercard. Currently, Large-Ticket transactions must be authorized, clear within 2 days from authorization, provide Level 3 data, and be over $10,000 for domestic U.S. transactions. Separate terms for international transactions.
**Calendar days from statement date, with clock starting with accessibility of invoice in Electronic Access System (EAS)/delivery of the file to Enterprise Resource Planning (ERP).
5 March 2019
Page 2 of 2
3OP:013
PIEE
DAU
DPC/Purchase Card
(Can be clicked in Slide Show mode)