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					            How to Use this Document
Overview                                                  •   For specific questions or assistance developing
•   The GSA SmartPay® Program Office                          estimates or recommendations in this document,
    recognizes that A/OPCs need the support of                please contact your GSA SmartPay® Point of
    their agency/organization Executives to get the           Contact or the Program Office at
    resources they need to carry out the transition to        gsa.smartpay@gsa.gov.
    SmartPay® 2 (SP2).                                    •   Bolded, bright blue, underlined text as shown
•   This presentation is meant to be used as a                above is hyper-linked. To access the linked
    guiding document for a discussion between an              pages, right click on the text and choose “Open
    agency’s/organization’s Lead A/OPC(s) and                 Hyperlink” from the list provided.
    Agency Executives.
•   Prior to the meeting, the A/OPC should                Page-by-Page Instructions
    complete the “fill ins” (denoted by [red,             •   Slide 3 (Title Slide): Fill in “Agency Name” (top
    underlined, bracketed text]) that appear                  right) and “Meeting Date” (bottom right).
    throughout this presentation template with
    agency/ organization-specific information.            •   Slide 5: Fill in “Agency Name” where requested
                                                              in bullets 1 and 2.
•   For example, on the title page (currently, slide 3)
    you should replace [Agency Name], which               •   Slide 7: Fill in the name of the “Contractor”
    appears in the top right corner with your                 currently serving your agency/organization for
    agency’s/ organization’s name.                            each business line. If your agency does not use
                                                              one of the business lines, or has awarded its
•   Slide-by-slide instructions are included, starting        task order for multiple business lines, modify the
    in the next column.                                       slide as needed.
•   A/OPCs should also feel free to add, delete or
    modify the slides as needed to meet their
    specific needs. This document is only intended
    to serve as a guide.

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           How to Use this Document
Page-by-Page Instructions (cont’d)               •   Slide 11: Insert your agency’s/
•  Slide 8: Insert your                              organization’s name as requested. Insert
   agency’s/organization’s name, as                  the figure for the total refunds your
   requested. Fill in the figures requested in       agency/organization received from the
   the table for FY 06 (or change the text on        program in FY 06. Insert the figure for
   the slide to denote the correct FY) for all       administrative cost savings, which can be
   applicable business lines. Some of this           calculated by multiplying $67.38 by the
   data may be available through the GSA             total number (not dollar value) of
   SmartPay® website.                                purchase card transactions your
                                                     agency/organization completed in FY 05.
   Delete columns for business lines that            (NOTE: In its 2005 purchase card study,
   your agency/organization does not use.            RPMG Research estimates $67.38 as the
   (NOTE: “Spend volume” refers to the total         per transaction savings in administrative
   dollar amount of transactions that were           cost for using the purchase card versus
   processed on the cards for the indicated          traditional procurement methods.)
   business line(s).)
                                                 •   Slide 14: Insert your agency’s/
•  Slide 9: If the Executive(s) you’re               organization’s name as requested.
   presenting to already has a good
   understanding of what the GSA                 •   Slide 15: Insert your agency’s/
   SmartPay® Program is, you may either              organization’s name as requested in the
   move slide 9 to the back of the package           slide title.
   to use as a reference, or delete the slide.
   If the Executive(s) does not have a good
   understanding of the Program, leave the
   slide as is.




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            How to Use this Document
Page-by-Page Instructions (cont’d)
•   Slide 16: Insert your agency’s/ organization’s      •   Once you have completed making your agency-
    name as requested. Insert the dates you are             specific changes, you should delete these
    recommending that your agency/organization              instructions pages, and be sure that the red,
    award its task order and begin transaction              underlined text from the “fill ins” is formatted to
    processing. REMEMBER: You cannot award                  match the surrounding text (i.e., no longer red
    your task order(s) until after the new Master           and underlined).
    Contracts are awarded (first half of calendar       •   If you have additional questions about how to
    year 2007), and your new Contractor must begin          customize or deliver this presentation for your
    processing transactions no later than                   agency’s/organization’s Executives, please
    November 30, 2008.                                      contact your GSA SmartPay® Point of Contact
•   Slide 19: Fill in your estimate of the additional       or the Program Office at
    FTEs or estimated costs you will require to             gsa.smartpay@gsa.gov.
    support your agency’s/organization’s transition.
    The “Estimated Cost” column should only
    include additional costs that your organization
    will bear due to the transition, but should not
    include figures for funds that have already been
    allocated (e.g., wages for an employee detailed
    from an office within your organization).
•   Slide 22: Insert your agency’s/organization’s
    name as indicated. This slide is meant to be
    used to start a discussion with your Executive
    about the decisions that he/she will need to
    make.
•   Slide 23: Insert your contact information on this
    slide.
                                                                                                           2
[Agency Name]
and the General Services Administration



                 Government Charge Cards:

                           [Agency Name]’s
                               Transition to
                          GSA SmartPay® 2
                               Executive Briefing
                                          [Meeting Date]
            Discussion Topics
• Objectives of the Meeting
• Overview and Benefits of the GSA SmartPay®
  Program
• Transition to GSA SmartPay® 2
• What We Need to do to Prepare for the Transition
• How the GSA SmartPay® Program Office Will Help
• Why We Need Your Input




                                                     4
        Objectives of the Meeting
• To update you on the GSA SmartPay® charge card program, the
  transition to GSA SmartPay® 2, and how the transition will impact
  [Agency Name]
• To obtain your support for [Agency Name] transitioning to GSA
  SmartPay® 2




                                                                 5
GSA SmartPay® Program Overview
• Established in 1998, the GSA SmartPay® program provides
  government agencies with commercial charge card-based
  procurement and payment solutions through “Master Contracts”
• The period of performance for the current Master Contracts is
  10 years (five year base plus five one-year options); the Contracts
  expire November 29, 2008
• The program offers four business lines: purchase, travel, fleet, and
  integrated




                                                                   6
  [Agency Name]’s Card Program
• Under the GSA SmartPay® Master Contracts, our agency awarded:
   – Purchase card business line to [Contractor name]
   – Travel card business line to [Contractor name]
   – Fleet card business line to [Contractor name]
   – Integrated card business line to [Contractor name]




                                                           7
         [Agency Name]’s Card Program
   In FY 06, [Agency Name]’s spend volume, number of transactions
   and number of cardholders for each business line were as follows:

                Purchase        Travel        Fleet         Integrated       Total
Spend
                    $[insert]     $[insert]    $[insert]        $[insert]    $ [insert ]
Volume
Number of
                   [insert #]    [insert #]    [insert #]       [insert #]   [insert #]
Transactions
Number of
                   [insert #]    [insert #]    [insert #]       [insert #]   [insert #]
Cardholders




                                                                               8
GSA SmartPay® Program Benefits
• This is the largest program of its kind in the world
    – The program provides service to over 350 federal agencies,
      organizations, and Native American tribal governments
    – Program-wide, in FY 06, over 98 million purchase, travel and fleet
      transactions were processed through 3 million cards
    – Total program spend in FY 06 was nearly $26.5 billion
• As a result of its size, the GSA SmartPay® program has leverage to
  drive innovation and achieve economies of scale
    – The program compelled the current contractors to develop electronic access
      systems (EAS) that allow cardholders and A/OPCs to access card data online;
      this technology has since been widely adopted in the industry




                                                                             9
GSA SmartPay® Program Benefits
• In FY 06 the government-wide GSA SmartPay® program provided
  the framework for the following agency benefits:
   – $156 million in refunds to the agencies based on sales volume and
     payment performance
   – $1.7 billion in estimated annual administrative processing cost
     avoidance for purchase cards alone
• Other government-wide program benefits include:
   – Acceptance of the cards worldwide
   – Point-of-Sale discounts offered by participating merchants, including
     Staples, Home Depot, Office Depot, etc.
   – Travel card access to the City Pair Program, which provides an average
     of 72% off commercial, unrestricted economy airfares
   – Access to timely electronic transaction data, enabling better reporting


                                                                      10
    [Agency Name]-Specific Benefits
•   In FY 06, [Agency Name] received a total refund of $[Insert]
•   Refunds are calculated based on “sales” and “productivity”
     –    Sales refunds are calculated by multiplying the spend volume by a fixed percentage that was
          negotiated with the Contractor bank prior to task order award
     –    Productivity refunds are calculated by multiplying the spend volume by a variable percentage
          rate, also negotiated prior to task order award. The percentage varies based on the speed of
          payment, billing cycle length, etc.
     –    Total refunds are the sum of the sales and productivity refunds
•   [Agency Name] also saved a total of $[Insert = 67.38 x # of purchase card
    transactions] in administrative processing for purchase card transactions
•   Administrative cost savings are calculated by multiplying $67.38 by the total number
    of purchase card transactions; in its 2005 purchase card study, RPMG Research
    estimated $67.38* as the per transaction savings in administrative cost for using the
    purchase card versus traditional procurement methods.

*   Palmer, R. & Gupta, M. (2005). 2005 Purchasing Card Benchmark Survey Report. RPMG Research Corporation.




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    Transition to GSA SmartPay® 2
•   The existing Master Contracts end November 29, 2008
•   New Master Contracts for “GSA SmartPay® 2” (“SP2”) will
     – Be awarded by summer 2007, allowing agencies up to 18 months to transition
       to SP2
     – Include a four-year base period, one four-year option period, and one three-year
       option period
•   Agency option periods need not be tied to the options exercised at the Master
    Contract-level, however, agency option periods cannot exceed the limits of the
    Master Contracts
•   Transactions under the new contract cannot begin before
    November 30, 2007, but must begin no later than November 30, 2008
•   Once all new system interfaces have been developed and tested (if any), cards
    issued and users trained on any new processes, transactions can begin under
    the new contract


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GSA SmartPay® Transition Timeline
   FY06                           FY07                                 FY08                      FY09


                 Final RFP               New Master   Transaction                       Existing Master
                 released                 Contracts processing may                      Contracts end
                                          awarded   begin (11/30/07)                      (11/29/08)

                    Transition                                   Transition
                     Planning                                   Management
       Identify / define needs                              Transitional Period
       Secure resources
                                                   Attend Kick-off conference
                                                   Award task order(s)
                                                   Coordinate transition activities
                                                                       Transactional Period

                                                                Contractors begin processing
                                                                   transactions




                                                                                                          13
How Transition Affects [Agency Name]
 • All agencies will need to award new task orders under the new
   Master Contracts, even if the incumbent Contractor(s) is/are
   selected again
 • Transition activities will include:
     – Defining [Agency Name]’s charge card program needs
     – Determining the appropriate task order type(s) based on our needs
         • Standard (same as Master Contract)
         • Tailored (including agency-specific requirements)
         • Tag-along, using another agency’s task order
         • Join a “pool”, to develop a task order to meet multiple agencies’ needs
     – Preparing and awarding [Agency Name]’s task order(s)



                                                                                 14
How Transition Affects [Agency Name]
   Transition Activities (cont’d):
   – Working with the incoming and outgoing Contractor(s) to prepare to
     begin processing charge card transactions
       • Issuing new charge cards to cardholders
       • Cleansing and migrating data from the current contractor to the new
         contractor
       • Establishing and testing system interfaces
   – Communicating changes to stakeholders (e.g., cardholders, billing
     personnel) and conducting training




                                                                               15
 Suggested Transition Milestones
• [Agency Name]’s new task order(s) must be in place, and the
  Contractor(s) ready to process transactions no later than
  November 30, 2008
• To ensure ample time to transition from the current Contractor to
  the new Contractor:
   – We recommend that we target [Date] for task order award, and that
   – Transactions begin under the new contract on [Date]




                                                                    16
    Transition Management Team
• GSA recommends that agencies designate their own transition
  management team (TMT) to support the move to the new task
  order(s)
• The TMT would be responsible for:
   – Developing a project plan and milestones
   – Analyzing options and making recommendations (e.g., task order
     type)
   – Coordinating the definition of agency needs and development,
     negotiation, and award of the new task order(s)
   – Managing logistics, including issuance of new charge cards,
     coordinating the integration of contractor systems with existing
     agency infrastructure, providing training to cardholders, etc.
   – Identifying and securing your support for necessary resources in a
     timely manner


                                                                      17
            Additional Resources
• In addition to the dedicated TMT resources, additional budget
  and/or resources may be needed to support:
   – Systems migration and testing (particularly if switching contractors)
   – User Training (e.g., on new or modified EAS)
   – Administering two task orders concurrently
• The chart on the following page shows an estimate of the budget
  and FTE resources required to support the transition
• FTEs shown are expected to be detailed from other units; if
  needed, we may obtain Contractor support using a GSA-
  established Blanket Purchase Agreement (BPA) for transition
  support Contractors



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         Additional Resources (cont’d)
Budget Estimate for Additional Resources

                        Resource                                              FTEs                       Estimated Cost*
 Definition of Agency Needs                                                  [insert #]                                     $[insert]

 Task Order Development                                                      [insert #]                                     $[insert]

 Task Order Award                                                            [insert #]                                     $[insert]

 System Testing / Other IT Support                                           [insert #]                                     $[insert]

 User Training                                                               [insert #]                                     $[insert]

 Transition Management Team (TMT)                                            [insert #]                                     $[insert]

 Transition Support Contractors (under BPA)                                     N/A                                         $[insert]

 Total Additional Resources Required                                        [insert #]                                     $[insert]

* The “Estimated Cost” does not include figures for funds that have already been allocated (e.g., wages for detailed employees).



                                                                                                                                   19
               How GSA Will Help
• The GSA SmartPay® Program Office will:
   – Work closely with agencies and contractors to facilitate a seamless
     transition
   – Develop transition planning tools for agency use:
       • Agency pre- and post-award checklists
       • Frequently Asked Questions
       • Agency program self assessment tool
       • Statement of work template
   – Establish BPAs for transition support contractors to help agencies
     transition to the new program




                                                                          20
   How GSA Will Help (cont’d)
– Provide guidance on developing Statements of Work
– Provide assistance with developing task orders, conducting
  negotiations
– Coordinate “pool” arrangements
– Post “highlights” of the Master Contracts on the website
– Post awarded task orders to the GSA SmartPay® website
– Facilitate user group meetings for A/OPCs to discuss their current
  Contractors
– Provide transition sessions at the GSA SmartPay® Conferences
– Operate a transition help line




                                                                       21
         Why We Need Your Input
• There are several areas where agency Executives need to make
  decisions or provide support to facilitate the transition:
   – Would [Agency Name] be willing/able to transition as an “Early
     Adopter”?
   – Will [Agency Name] provide support/resources required for a
     Transition Management Team (TMT)?
   – Are the resources needed to support the transition available?
   – What task order type will [Agency Name] use? (i.e., standard,
     tailored, join a “pool” or “tag along” with another agency)




                                                                      22
      Contact Information
If you have any additional questions, please contact:




                     [Name]
                        [Title]
                Tel. (XXX) XXX-XXXX
                     Email: [Insert]




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