Within my office we offer and manage many different credit card programs for the many customers whom we provide travel services for.  Lately we have been heavily involved with preparing for our internal transition to the new contract/vendor.  With current master contracts expiring on November 29, 2008, organizations are never permitted to extend their task orders beyond the current expiration date.  Furthermore, agencies cannot begin processing transactions under the new program until November 30, 2008.

My office services a very diverse customer base, and with that each customer’s needs are very different.  With the award of a new Master Contract, agencies must make a final determination of the task order type that best suits their needs.  Currently there are four types of task orders offered.  There is the ‘Standard’ which contains the same requirements as the Master Contract; the ‘Tailored’ which includes agency specific requirements; the ‘Tag-along’, which “piggybacks” or uses another agency’s task order; or the ‘Pooling’ arrangement where two or more agencies collaborate to develop and issue one task order which will meet the pooled agencies’ needs.

Dedicated staff within our office has been working closely with our customer agencies to ensure and facilitate a smooth transaction to the new SmartPay 2 system.

by Brian Shears

The Federal Travel Regulations (FTR) requires mandatory use of the government travel charge card by government travelers.  However,  each agency policy can mandate when an IBT should be obtained depending on what each agency considers a “frequent” or “infrequent” traveler.

If a traveler is issued an IBT government charge card, the card may only be used for official government travel expenses such as lodging, transportation expenses, and meals while on official travel.  Travelers should also be using the card’s Automated Teller Machine (ATM) capability to obtain cash advances if necessary.

Both the agency and the traveler benefit when the travel charge card is used.  Travelers no longer need to carry large sums of cash by using their government travel charge card.  As a convenience for the traveler, there are many ATM’s across the country that will accept the travel card when a cash advance is needed.  Some hotels and rental car agencies waive Federal taxes when travelers use their government travel charge card.

The government agency also benefits by receiving a rebate on purchases charged directly to the travel charge card.

By: Robyn Rice

“The contents of this message are mine personally and do not reflect any position of the Government or my agency.”

During the transition, GSA was very visible.  The Office of Charge Card Management provided support to Agency/Organization Program Coordinators (AOPC).  They provided a copy of the new Master Contract timely enough to allow AOPCs to review the information.  They also provided tools to help with agencies’ selection process and transition.  A timeline detailed recommended activities to ensure agency transitions were completed.  Conference calls were routine as agencies discussed their progress (or lack thereof) and shared their experiences and resolutions.

Treasury established a team of individuals from the various bureaus to:  determine task order requirements; do the bank evaluations and vendor selection; and develop a transition approach.  Citibank was selected as the vendor for the new contract period.  Bureaus had to consider the impact of the transition on the electronic travel system and the accounting systems.

The Bureau of the Public Debt’s (BPD) Administrative Resource Center (ARC) utilized its Program Management Office to establish a team to ensure a seamless transition for ARC and its customers.  A project manager was absolutely necessary to plan, coordinate, effect,  and document a project of this size.  The project team (core team) consisted of subject matter experts from Procurement, Accounting Services, Business Technology, and Travel.   Also partnering with us were project teams from Citibank, Northrop Grumman (the GovTrip e-Travel system provider), and our Travel Management Centers (TMC).

Throughout the life cycle of a project, there are lessons learned and opportunities for improvement are discovered.  It is in ARC’s best interest that these be documented for future projects.

KEY WINS:

Communication:  This came in the form of status reports to team members and customer contacts, weekly meetings with the core team and internal teams, timely email communications to cardholders and non-cardholders, and conference calls with specific teams or individuals.  Impromptu meetings were held when needed.

Pilot:   One of our customers agreed to transition in July 2008.  Having the opportunity to run through a simulated transition was helpful in determining key areas that needed additional attention.  It helped all the ARC internal teams, Citibank, Northrop Grumman, and the TMCs to identify the project activities and the processes that would be necessary for the final transition in November 2008 for all of the remaining customers.

ARC’s Internal Teams:  The collaboration between the different areas was outstanding.  All areas were accounted for when decisions were made.  Team members remained positive even during times of stress.  One team member decided to have her baby in September, just prior to the final stages of the transition!

Travel’s Internal Team:  The support from the Travel staff during this holiday week was great.   Guidance was developed to help staff with their group’s area of responsibility.  Customer Service took care of the TMC issues.  SAS took care of the split payment issues.  Both groups updated GovTrip documents.

GovTrip:  Taking the system offline during the transition allowed for a much faster and seamless travel transition.  Thanksgiving weekend proved to be a bonus for the transition as well.  The travel team was able to work on Wednesday before the holiday and Friday after the holiday and did not have to work the weekend.  Travel staff was able to update 1400+ travel documents with new card numbers in a timely fashion.

Single Sign-on:  This concept to CitiDirect was a true benefit coming from multiple login ids and passwords from  SP 1.

OPPORTUNITIES FOR IMPROVEMENT:

Development of Project Schedule:  The bank played a very large role in the transition.  Getting the bank’s involvement and buy-in of tasks and deliverables earlier in the development of the schedule for ARC would be ideal.  The nature of our business required a very detailed plan.

Continuing Transactions:  As it turned out, we stayed with the incumbent bank.  The SP 2 contract stated that there was to be a complete break from SP 1.  All new cards had to be issued and they were active on November 29, 2008.  Some cardholders were able to use their SP 1 cards after the cutover.  The bank dropped the travel corporate account number down to $1.00 to stop this type of activity.

Electronic Access to Bank’s Systems:  Access for program managers prior to go-live would allow for a review of the data.  Accounting String Codes (ASCs), program entitlements, and profiles could be verified.

Helpdesks:  It is vital that all helpdesks, whether internal or external, are provided with the appropriate guidance to help program managers and cardholders post-transition.

Communication to the Cardholder community:  Regardless of the amount of information sharing that goes into a project, some people don’t get the message.  Our helpdesks had calls two weeks prior to the transition with people stating they had no idea what SP 2 was.  They didn’t understand why they received new cards.  Be very specific with key contacts that they must share information globally within their organizations.  Ask the bank to put a message on paper statements for the last three cycle periods prior to transition or on the electronic message boards.  We had an SP 2 alert posted to the GovTrip message board, on our voice message for the travel helpdesk phone line, and on all correspondence going out of the Travel email box.

Automatic Payments from Personal Accounts:  Individual cardholders who have their personal banks make payments to the charge card vendor for any remaining balance after split disbursement will need to notify their bank of the new charge card number or payments will go to the old account.  This will need to be included in the cardholder guidance for the next transition.

Our SmartPay 2 Project Team officially dissolved on March 13, 2009.  The transition from start to finish took over a year.  It was quite a challenge and an opportunity for personal growth.  It made team members see the big picture and how much of an impact each area has on another.   It is now business as usual and SmartPay 3 is a few years away!

By Pam Enlow

“The views expressed are those of the author and do not necessarily reflect the position of the Bureau of the Public Debt, or the U.S. Department of the Treasury.”

SmartPay program cards can be issued to either individuals or agencies.  Individual Billed Accounts or IBA’s are issued to individuals for use during official travel.  These credit cards are issued in the travelers name with the traveler having full responsibility for payment and reconciliation.  A Centrally Billed Account (CBA) is issued to organizations and is generally used when a traveler does not have an IBA.  The account is usually only an account number and not an actual card.  The responsibility for reconciliation lies with the agency, with payments paid directly from the Government to the bank.    Most agencies require prior approval for use of the CBA.

The GSA SmartPay 2 program offers many benefits and expanded services to the Government.  Among the services offered are: built-in credit evaluations and enhanced security options.  The cards are numbered for vendor recognition and look different with new anti-misuse features.  The cards are accepted worldwide and have improved tracking capabilities.  Another advantage of the SmartPay program is the reporting capabilities.  The improved reporting capabilities assist agencies with budget planning, projected travel activity, and better control over misuse of the card.

By:  Chanda Garrett

The contents of this message are mine personally and do not reflect any position of the Government or my agency.

The new SmartPay 2 contract was effective November 30, 2008.  Our agency was very much involved in the travel credit card transition.  All card holders were issued new cards under a SmartPay Master Contract administered by the General Services Administration.

As a Government travel card holder, I was kept informed of the changes as they occurred in this transition.  Our agency services many other government entities.  Therefore, it was our responsibility to keep them informed of the changes as well.  Guidance was sent to them outlining the changes along with the following step-by-step instructions:

• The current SP 1 contract expires at 11:59 p.m. on November 29, 2008, at which time the current travel charge card will expire regardless of the expiration date on the card.
  • Do not destroy this card until November 30, 2008.
  • Cardholders who have not received their new SP 2 card by the end of October should contact their agency Travel Charge Card Program Coordinator.
  • Upon receipt of the card, contact the designated bank at the number provided on the sticker that is on the face of the card. This will verify receipt of the card. It will officially be activated and useable on November 30, 2008. If cardholders do not contact the bank, the card will not be active or useable on November 30, 2008.

• Verbiage that will appear on the sticker:
  • THIS CARD CANNOT BE USED
  • Until The Effective Date Provided At The End Of The Call.
  • To Activate In The U.S., please call toll-free: 1-XXX-XXX-XXXX

• Telephone script that the cardholder will hear during the activation process:

• “Please enter the last 4 digits of your social security number followed by the # sign.”
• “Thank you for activating your card.” (If the activation is not successful, the call will be directed to a customer service representative. If directed to a customer service representative, have the new card number available. Be prepared to give verification information, e.g. mother’s maiden name, date of hire, cat’s name, last four of SSN, etc.)
• “Please remove the sticker from the front of your card and sign the back.”
• “Your card will become effective and ready for use on November 30.”

• Cardholders who might be on extended travel during the latter part of November and the first part of December will need to carry both cards with them. Use the appropriate card at the time expenses are incurred.

• A new PIN number for the SP 2 travel charge card will be mailed to cardholders at the address on record at the bank. The PIN number will be mailed separately from the travel charge card. It is possible that cardholders will receive the PIN number before the new card arrives. This is not “junk mail”. The envelope for the PIN is perforated and when opened includes printed materials on the inside. The PIN mailer has the return address of Sioux Falls, SD printed on the upper left hand corner. The PIN information applies only to those agencies that allow for cash advances.

• The cash advance (ATM) transaction fee will increase from 1.25% to 2%.

• The statement billing cycle close date for SP 2 will be changed to the 3rd of the month. During the transition from the current SP 1 program to SP 2, cardholders could receive more than one bank statement in December. It is highly recommended and beneficial for the cardholder to keep the SP 1 account reconciled. Account balances from the SP 1 card will not be transferred to the SP 2 account. Cardholders will be responsible for both statements.
• Cardholders who access their SP 1 statements online will need to remember their login ID and password until all activity is completed. The SP 1 statements will be available for 180 days.

• Cardholders will need to register again to access their SP 2 account information when it is available.

By Cindy Moore

Disclaimer: The contents of this message are mine personally and do not reflect any position of the Government or my agency.  Use of this equipment is consistent with the agency’s policy governing limited personal use.

We have already selected a provider for purchase, fleet, and travel charge card services for the next Master Contract starting November 30, 2008. The next Master Contact is called SmartPay 2. Agency representatives took part in an evaluation panel and conducted a thorough evaluation of the participating banks’ card program services as part of the GSA SmartPay 2 Contract.

We have developed a Transition Team, in which I am a member of for travel, to ensure a seamless transition to the new SmartPay 2 program. We have developed a Status Report and Frequently Asked Questions (FAQs) regarding the SmartPay 2 transition. Both documents are viewed by the Transition Team as communication tools and will be maintained throughout the Transition Phase of this project on several of our customer access pages.

The Status Report will contain such items as:

• Transition Team Current Activities: This block will contain the planned activities the Transition Team will be involved in during the status reporting period.
• Next Steps: This block will contain key project activities that will take place during the project, but beyond the next reporting period.
• Customer Actions: For this phase of the project, we wanted to ensure that our customers were aware of any activities that would be expected from them.
• Challenges: This block will contain any key challenges/risks of the Transition Phase.
• FAQ to remember: This block will contain a key FAQ as a teaser. Our hope is the FAQ selected will prompt our customers to visit the FAQs that will be posted on their customer access page.
• Key Accomplishments: This block will document any key activities/milestones that the Transition Team completes during the previous reporting periods.

A final step that the Transition Team will perform is a small SmartPay 2 pilot (approximately 200 accounts). By performing this pilot, we will be able to see what the challenges will be, if any manual intervention will be necessary, and to work out all the ‘bugs’ prior to the much larger transition in November (approximately 13,800 accounts).

by Susan Garrett

The contents of this message are mine personally and do not reflect any position of the Government or my agency.

Most agencies have spent the past year preparing for the transformation process. Agencies have had to work with the new Smartpay 2 banks and their E-Gov Travel vendor to ensure all the new charge cards will be tested and loaded by the
November 29, 2008 cutover date. One chief concern is how agencies will handle reservations booked online in the current E-Gov systems with the old Smartpay card for travel that occurs after November 29th. Agencies will have to decide if they will have all booked reservations actually ticketed by the cutover date or have them canceled and rebooked. Communication will be crucial, so travelers can understand the implications and avoid possible confusion. This should be an exciting change in the next generation of charge card payment tools.

by Jaqueline Lynch

The contents of this message are mine personally and do not reflect any position of the Government or my agency.

Several agencies are issuing a separate plastic for purchase card transactions and travel card transactions; even when they use the same vendor for both types of transactions. This means an employee with both purchase authority and travel authority has to carry at least two cards, reconcile two types of statements, and maybe even use two electronic access systems; if their agency uses two different vendors. The Integrated card allows one plastic Government charge card to be issued; which can carry one, two, or all business lines on the same card. An agency will have to spend time up front to make sure the authorization control sets are appropriate and the correct merchant category codes are activated for each line; but this type of work is required on separate cards as well. It’s also good for all the business lines to work together managing one program, because it allows travel, purchase, and fleet to take advantage of best practices in policies, reporting, and managing a charge card program. It brings together travel and procurement in a way that the whole agency can benefit. The advantage to the end user is clear as well, one card to carry, one statement to reconcile, and one electronic access system to learn.

Whether or not an agency chooses to implement an integrated card, one feature that evolved from our integrated card was the splendid idea to centrally bill travel transactions. Some agencies do have something called a centrally billed account, maybe they have one card number, or ten, or a hundred for the agency set up as the default. They will use this account to possibly charge airfare expenses to and then they have to do additional work when reallocating the charges to the real field level account. The reallocation seems burdensome to many agencies so it’s not always an appealing process. The Department of Interior treats it differently, more like a diversion account. They set up master accounting codes and the individually issued Government cards each have a default account number so even when the airfare expense hits the individually issued card, it shows up as centrally billed to the traveler and the Government pays the charge the day it comes in. This is how the purchase card works in several agencies, the purchases are centrally billed and just show as memo items on the cardholder statement, meaning the Government directly pays the charge. However, agencies haven’t decided to take advantage of this billing functionality on the travel card.

The improvements that centrally billing charge card transactions have provided are numerous. We not only centrally bill airline charges; but rental cars, taxis, parking, even lodging. By centrally billing lodging and other transactions, DOI is truly tax exempt since the Government is directly paying the charge. Since the rest of the Government does not follow this practice, we are always questioned and challenged on tax exemption. If we could get buy in from other agencies, it would provide more support with the lodging and rental car establishments. One concern with centrally billing transactions is the increased monitoring required because of the risk that a traveler may place a personal charge on the card. In our experience, the percentage of travelers who do not follow the appropriate policy is very small. They enjoy the flexibility of not owing hundreds of dollars on a charge card statement or being out of pocket for travel charges too much to jeopardize the program.

By taking this diversion approach, we are essentially performing the split pay best practice recommended by A-123 but even better. Instead of waiting until the voucher is filed by the traveler and diverting a certain calculated payment to the bank, the Government pays the bank charges the next day. It’s apparent how supplying those timely payments would maximize any agency’s rebate. It also lowers your risk and population available for delinquencies, since the only transactions that could even cause a delinquency is an ATM transaction or a food purchase. Our delinquency percentage has been below 2% consistently since we implemented these practices.

An Integrated charge card program and centrally billed travel transactions take work to set up correctly in the beginning of the process, and any card program requires diligent examinations. The return on investment is well worth the effort in both cases. GSA should encourage agencies to participate in Smartpay 2 user group meetings to discuss best practices, so all can take advantage of what has been successful in various Government Card programs.

by Jacqueline Lynch

The contents of this message are mine personally and do not reflect any position of the Government or my agency.

Internally, our credit card team conducted weekly meetings with the individuals from each section who were assigned to the project so that the conversion would be completed accurately and timely.  In addition to working with the credit card vendor on a constant basis, we also worked with the E-Gov vendor and the travel management center (TMC) team to iron out the necessary steps so that the conversion was as seamless as possible for our travelers.

We created guidance and sent it to our travelers prior to the transition.  Our agency contacts were kept informed of all updates and changes along the way.  This was crucial for a successful transition.  The guidance spelled out exactly what the travelers needed to do and contained other vital information such as when their new cards would be arriving and how to handle their travel during the conversion.

It was determined that our ETS would not be available for about three business days and also during the weekend of November 29 so that the ETS vendor could load the new credit card information.  Once this was completed, various individuals within my agency were busy updating the travelers’ documents with the new account information.

The conversion was completed earlier than expected and was considered a success.

by Pam Morton

The contents of this message are mine personally and do not reflect any position of the Government or my agency.