1. Federal Acquisition Service U.S. General Services Administration MasterCard Worldwide Global Public Sector Forum David J. Shea, CPCM, PMP Director, Office of Charge Card Management March 25, 2008 GSA SmartPay® 2 – Driving a Successful Transition

2. Federal Acquisition Service 1 Agenda Recap from Last Years Forum Program Overview GSA SmartPay® 2 – New Products and Services Transition to GSA SmartPay® 2 GSA Customer Service and Support Q & A

3. Federal Acquisition Service 2 Recap from Last Years Forum What would happen if the government had to find a new way to handle 98 million transactions…with the current shortage of contracting and other specialists? What would happen if $26 billion in government purchases, travel transactions, and fuel/maintenance disappeared? What would happen if banks lost 5 - 10% of their total annual card spend overnight?

4. Federal Acquisition Service 3 Program Overview GSA SmartPay®, established in 1998, is the federal government charge card program that serves over 350 federal agencies, organizations, and Native American tribal governments One GSA SmartPay® Master Contract with five banks (using 2 associations – MasterCard and Visa) currently provides card products and services to all 350 agencies, organizations and tribes; banks under the current program include: Bank of America Citibank JPMorgan Chase Mellon Bank US Bank

5. Federal Acquisition Service 4 Program Overview GSA SmartPay® is the largest government charge card program in the world. In FY07 alone: Total FY07 program spend was over $27 billion, a 4.8% increase over FY06 Over 91.5 million transactions were processed through approximately 3 million cards Over $174 million in refunds were earned by customer agencies/organizations

6. Federal Acquisition Service 5 New or Improved Products: Contactless cards – facilitate faster point-of-sale transactions Debit cards – help to control the amount of outstanding credit with cardholders Pre-paid (stored value) cards – can be issued with required value on short notice Cardless accounts – provide established vendor-specific charge accounts without physical cards Travelers and convenience checks – improved ability to issue and reconcile checks online such as: Electronic transaction records that must include merchant name Online imaging of cleared checks GSA SmartPay® 2 – New Products and Services

7. Federal Acquisition Service 6 Increased security requirements – increased emphasis on security of both personally identifiable information (PII) and procurement data to minimize risk to individual cardholders and to agencies Detailed minimum security standards including FISMA and Payment Card Industry (PCI) security standards GSA has conducted bank security system reviews and determined that bank Electronic Access Systems (EAS) are Certified and Accredited (C&A), and are Section 508 compliant Increased data requirements – more focus on Level 3 data, which provides better insight into the program for agencies/organizations and GSA SmartPay® GSA SmartPay® 2 – New Products and Services

8. Federal Acquisition Service 7 Improved Program Technology Increased capability of bank EAS systems to provide flexibility in reporting and account management, including the ability to: –Generate ad hoc reports –Change category block templates (e.g., MCC blocking) –Dispute transactions electronically –Enable A/OPCs to turn cards on and off Data mining tools provided by associations – such as MasterCards Expert Monitoring System (EMS) – offer additional insight into card program data and trends Transaction monitoring to detect misuse, fraud, waste, and abuse (e.g., email alert service) GSA SmartPay® 2 – New Products and Services

9. Federal Acquisition Service 8 GSA SmartPay® 2 – Card Design Mock-ups PurchaseTravel FleetIntegrated

10. Federal Acquisition Service 9 Transition to GSA SmartPay® 2 The current GSA SmartPay® contract expires on November 29, 2008; all charge cards must be cancelled and replaced with new cards no later than this date No later than November 30, 2008, agencies/organizations must transition to one of the GSA SmartPay® 2 banks: Citibank JPMorgan Chase US Bank Agencies/organizations rely on charge card services to support their missions and operations – ensuring a successful transition, without gaps in service, is of utmost importance

11. Federal Acquisition Service 10 Transition Challenges Transition activities require significant efforts, and involve many different stakeholders: Cardholders Agency executives Agency IT personnel and Contracting Officers Agency finance and accounting personnel Approving officials Current GSA SmartPay® and GSA SmartPay® 2 banks Merchants Associations Fortunately, 10 agencies represent approximately 90% of total program spend; unfortunately, these agencies are huge, complex organizations Bank of America and Mellon Bank are not participants in the GSA SmartPay® 2 program; all Bank of America and Mellon Bank customer agencies/organizations must transition to a new bank under GSA SmartPay® 2

12. Federal Acquisition Service 11 Transition to GSA SmartPay® 2 - Notional Relationship Diagram Senior Leadership Finance Procurement IT Human Resources Agency A/OPC Purchase Travel Fleet Agency A/OPC Purchase Travel Fleet Approving Officials Cardholders GSAs Office of Charge Card Management GSAs Office of Charge Card Management Congress/ Legislation SP1 Bank SP2 Bank OMB/GAO Compliance Card Processors Contracting Officers Associations Fleet Mgmt Legal IG

13. Federal Acquisition Service 12 Transition Timeline At this point in time, agencies should be finalizing task order award activities Now

14. Federal Acquisition Service 13 Agency Transition Status Report The Agency Transition Status Report (ATSR) tracks the transition progress of 32 designated agencies and provides: Agencies with a milestone tracking tool to support transition efforts GSA SmartPay® program and the Office of Management and Budget (OMB) with insight into the government-wide transition status To date, approximately 38% of these designated agencies have awarded task orders, representing approximately 32% of total FY07 program spend

15. Federal Acquisition Service 14 Key Transition Activities Now Pre-Award Tasks (should be completed) Post-Award Tasks Develop communications plan Define needs/requirements Determine task order type Develop/issue task order request Evaluate and award task order Obtain data from current bank Cleanse, verify and send data to GSA SmartPay® 2 bank Develop activation and distribution plan Bank EAS, interfaces, and other systems tested and ready to activate New cards deployed; users trained Develop contingency plan Card closeout procedures

16. Federal Acquisition Service 15 Post-Award Tasks The post-award transition phase requires significant efforts to coordinate activities with the current bank, the new bank, and internal agency stakeholders GSA SmartPay® bank Identify critical data to be obtained from current bank (master file/cardholder data) Establish card closeout procedures GSA SmartPay® 2 bank Establish communication and coordination procedures with bank Confirm task order variances and deliverables Plan logistics for card distribution and activation, including inserts and activation stickers Complete IT-related tasks Plan/coordinate training Intra-Agency Validate master file data Develop effective cardholder communications Develop/implement plans to reduce and deal with trailing transactions (subscriptions, travel vendor accounts) Update card policies and internal training on new card policies Develop contingency plans

17. Federal Acquisition Service 16 Post-Award Tasks – Considerations Have you thought about… Which agency policies/procedures should be refreshed? Will there be any restrictions on card use leading up to transition? What are the old card destruction procedures? What record retention policies for closing out the current contract need to be followed? How will trailing transactions from subscriptions and vendor accounts be dealt with? How will new account numbers be communicated to travel vendors? How will fleet cards be distributed to their assigned vehicles? What will be communicated to agency cardholders so that they know when to activate/use GSA SmartPay® 2 cards?

18. Federal Acquisition Service 17 Post-Award Tasks – Tips Work closely with the current GSA SmartPay® bank to: Obtain master file/cardholder data and hierarchy data Obtain historical data and/or other data as required by agency Develop plans to manage trailing transactions Establish card closeout procedures Develop plans soon after task order award with the GSA SmartPay® 2 bank to address: General expectations and communication processes with GSA SmartPay® 2 bank Card distribution and activation procedures Testing/deploying EAS and other systems Bank training Contingency plans

19. Federal Acquisition Service 18 Contingency Planning Work with the appropriate bank and agency personnel to develop contingency plans around: Cardholders that have not received GSA SmartPay® 2 cards by the cut-over date (especially those on TDY status) Cardholders that use their old GSA SmartPay® card after the cut- over date Recurring charges (subscriptions, vendor accounts) EAS or other systems that are not ready by cut-over date, or any system malfunctions (e.g., data breaches) that occur around the cut- over date

20. Federal Acquisition Service 19 GSA Customer Service and Support GSAs Office of Charge Card Management (OCCM) is dedicated to supporting agencies in their transition activities through: ATSR Tracking Transition tools posted on the GSA SmartPay® website GetSmart newsletter and GSA SmartPay® Smart Bulletins GSA SmartPay® 2 outreach campaign Monthly A/OPC meetings Discussions with Dave One-on-one meetings GSA SmartPay® Points of Contact

21. Federal Acquisition Service 20 David J. Shea david.shea@gsa.gov (703) 605-2867 Q & A www.gsa.gov/gsasmartpay