1. Presented to: PDI - Eglin AFB, FL March 18, 2005 By: Brenda Locke, Director of Contract Pay Operations Commercial Pay Business Line How to Reduce Your Bill

2. 3/18/05 Integrity - Service - Innovation 2 of 14 Not Just a DFAS Initiative...

3. 3/18/05 Integrity - Service - Innovation 3 of 14 Vendor Interaction With EC Tools 1 Vendor registers in CCR supplying remittance info and eBusiness POC 2 Vendor views contractual data and vouchers on EDA/NAFI 3 Vendor enters invoice and shipment data into WAWF, or transmits invoices via WINS or EDI 4 Vendor monitors invoice status and views AOP in VPIS Vendor receives payment via electronic funds transfer (EFT) 5

4. 3/18/05 Integrity - Service - Innovation 4 of 14 EC Tools for Payment Electronic Funds Transfer (EFT) Electronic payment method mandated by Public Law Funds are routed electronically to vendor’s bank E-Commerce success story!!!

5. 3/18/05 Integrity - Service - Innovation 5 of 14 Initial State of VP EFT (6/04)

6. 3/18/05 Integrity - Service - Innovation 6 of 14 Progress - EFT Today Number of checks reduced - 13,131 per month Savings Recognized - $46,352 per month EFT Percentage IAPS, CAPS & One Pay May - 83.47% December - 88.15% EFT Percentage CPBL May - 91.60% December - 94.30% FY05 Goal - 96% Outlook for exceeding goal very positive.

7. 3/18/05 Integrity - Service - Innovation 7 of 14 Electronic Invoicing Mandate Contractors must submit invoices electronically Mandated by Public Law: Section 1008 of National Defense Authorization Act of FY 2001. DFARS has been updated to include a requirement for electronic invoicing, effective for contracts issued on or after 01 March 2003 DFARS Clause 252.232-7003 (232.7004): Requires electronic invoicing Requires electronic supporting documentation Identifies three acceptable electronic forms for transmission of invoices (WInS, WAWF, and EDI); and Identifies six specific situations where using electronic methods is not required.

8. 3/18/05 Integrity - Service - Innovation 8 of 14 Where are we now? Source by Quarter - FY04 Source by Service - 4th Qtr FY04 Source by System - 4th Qtr FY04

9. 3/18/05 Integrity - Service - Innovation 9 of 14 Cost Benefits of Electronic Commerce Billing Rates per Transaction: Contract Pay Vendor Pay-USAF Manual $ 32.90 $ 21.48 EC 16.00 3.95 Savings $ 16.90 $ 17.53

10. 3/18/05 Integrity - Service - Innovation 10 of 14 Cost Benefits of Electronic Commerce, Continued Example: 25,000 Total Transactions 15,000 - 10,000 - Total Cost:Vendor Pay Contract Pay Cost 100% Manual$322,200.00 + $329,000.00= $651,200.00 50% / 50%$190,725.00 + $244,500.00= $435,225.00 100% EC$ 59,250.00 + $160,000.00 = $219,250.00 Potential Savings for 100% EC: $431,950.00

11. 3/18/05 Integrity - Service - Innovation 11 of 14 Upcoming Events DFAS Purchases Training Kansas City - April, 2005 Arlington - April, 2005 Cleveland - April, 2005 San Antonio/Columbus - monthly vendor training Agency/Service Implementation Support WAWF Training, Dept of Army, June 2005 - June 2006 Customer Outreach DFAS Road Show, Kirtland AFB, NM, March 23, 2005 DFAS Open House, Columbus, OH, April 13-14, 2005 National Association of Credit Managers (NACM), Las Vegas, NV, April 20-22, 2005 DFAS Road Show, Brooks AFB, TX, May 4, 2005 DFAS Road Show, Petersen AFB, CO, May 18, 2005 NACM, New Orleans, LA, June 13-15, 2005 WAWF Training! 21

12. 3/18/05 Integrity - Service - Innovation 12 of 14 For More Information... WAWF vendor training on-line registration form http://www.dfas.mil/commpay/vptraining.htm WAWF training web-site http://www.wawftraining.com WAWF production web-site https://wawf.eb.mil EDA web-site http://eda.ogden.disa.mil/ DFAS e-Commerce web page http://www.dfas.mil/ecedi/ WInS web-site https://ecweb.dfas.mil Vendor Pay Inquiry System http://www.dfas.mil/money/vendor

13. 3/18/05 Integrity - Service - Innovation 13 of 14 Additional Outreach Sessions Federal Government Receivables & Research Bureau (FGRRB) Tinker AFB, OK, March 23-24, 2005 Washington, DC, April 13-15, 2005 Ft Bragg, NC, April 21-22, 2005 Austin, TX, May 5-6, 2005 Colorado Springs, CO, May 25-26, 2005 Las Vegas, NV, June 8-10, 2005 Huntsville, AL, June 22-23, 2005 Anchorage, AK, July 14-15, 2005 * St. Louis, MO, July 20-21, 2005 New York/New England, August 10-12, 2005 Norfolk, VA, August 24-25, 2005 Columbus, OH, September 7-9, 2005 Los Angeles, CA, September 14-16, 2005

14. DFAS Your Financial Partner @ Work