1. General Services Administration GSA SmartPay® 2 Background & Recompetition Overview David J. Shea Director, GSA SmartPay® SGTP 2006 Education Conference September 8, 2006

2. 2 Current Program Highlights GSA SmartPay ® 2 – Selected Changes from the Current Program Program Benefits Recap Transition Timeline Questions Agenda

3. 3 Original GSA SmartPay® contract awarded in 1998 Enables agencies to obtain Travel, Purchase, Fleet, and Integrated Charge Cards, through a 10 year Master Contract (5 year base, 5 one-year options) with five banks –US Bank, Citibank, Bank of America, JP Morgan Chase, Mellon Bank (purchase only) Largest program of its kind in the world. Provides program service to over 350 federal agencies, organizations, and Native American tribal governments Current Program Highlights

4. 4 Current Program Highlights (Cont’d) Use of travel charge card is mandatory for all government employees except infrequent travelers Over 92 million purchase, travel, and fleet transactions processed in FY 05 through 2.6 million cards –Travel card alone accounted for nearly 43 million transactions through over 1.9 million cards in FY 05 –Provides agencies with access to GSA City Pair Program (CPP) air fares, projected to yield $2.8 billion in FY 06 savings to government agencies

5. 5 Current Program Highlights (Cont’d) Total program spend of nearly $25 billion in FY 05 –Travel card alone accounted for over $6.5 billion of spend in FY 05 –Travel card spending through July 2006 totals: $6.9 billion, up 30% from one year ago July (primarily due to DoD phase-out of Patriot Express charter program, the war, and BRAC-related actions)

6. 6 Current Program Highlights(cont’d) Current contracts end November 2008 Recompetition effort underway (“GSA SmartPay® 2”) –Draft RFP released May 25, 2006; Comment period closed June 23 –Very pleased with level of customer involvement: GSA Program Office received over 1,000 comments from government and industry –Currently analyzing these comments and adjusting solicitation accordingly –Comments and response to them will be posted on the GSA SmartPay® website (www.gsa.gov/smartpay) later in September 2006www.gsa.gov/smartpay

7. 7 GSA SmartPay ® 2 – Selected Changes from the Current Program Creditworthiness evaluations for IBA travel charge cards built-in Better management data availability and presentation – in coordination with other GSA programs, such as: CPP, e-Travel and Fedrooms Electronic Access Systems – GSA-led testing required, expanded capabilities/data mining capabilities Enhanced security requirements (FISMA and Purchase Card Industry Standards, among others)

8. 8 GSA SmartPay ® 2 – Selected Changes from the Current Program Easier capability to turn cards on and off as needed New cards will look very different and have new anti-misuse / abuse features Annual bank customer service survey with results reported at annual GSA SmartPay® Conference Automatic e-mails to supervisor when card used

9. 9 Solicitation release 3 rd CY quarter 2006 Proposals due 4 th CY quarter 2006 GSA SmartPay® 2 contract awards scheduled for second quarter CY 2007 (timing depends on number of proposals received and associated time to evaluate) Agency transition to occur through November 2008 Agencies should plan for additional budget and other resources that will be needed to support an agency’s transition to the new contract. –For example, resources will likely be needed for: coordination of new charge card issuance within an agency, new EAS testing support of agency specific interfaces with bank systems and training, agency-specific efforts involved in administering two contracts concurrently, etc. Timeline/Transition Issues

10. 10 Transition Issues (Cont’d) The GSA SmartPay® Program Office will: –Work with agencies and banks to facilitate a seamless transition –Develop and provide transition planning and support tools for agency use (checklists, briefing/communication materials, task order development assistance, contract implementation support, etc.) Will include guidance on ensuring appropriate account number use for CPP. –Stand with agencies to ensure all transition activities are successfully completed prior to making the changeover to the new contracts

11. 11 Program Benefits Recap GSA holding the line on Industrial Funding Fee charged to manage overall program – same as initial GSA SmartPay® contract Continued billions of dollars in air fare savings through linkage to CPP Continued card use rebates to agencies Improved card transaction data availability and controls

12. 12 Questions? David Shea Director, GSA SmartPay ® david.shea@gsa.gov (703) 605-2867