Policy Documents

• Department of Defense Government Charge Card Guidebook for Establishing and Managing Purchase, Travel, and Fuel Card Programs - Effective 1 October 2017. The purpose of this guide is to help Department of Defense (DoD) officials establish and manage charge card programs. It provides a high-level overview of the policies and processes, with a goal to streamline and consolidate processes common to the purchase, travel, and fuel card programs. On 14 November 2018, administrative updates were made to incorporate changes from OUSD(A&S) memorandum “Government-wide Commercial Purchase Card Prohibited Purchases,” dated 15 August 2018;
• This For Official Use Only memorandum (10/24/18) provides additional information on the acquisition of video surveillance cameras.
• DoD Class Deviation 2018-O0018, “Class Deviation—Micro-Purchase Threshold, Simplified Acquisition Threshold, and Special Emergency Procurement Authority,” dated 31 August 2018; and OUSD(A&S) memorandum “Government-wide Commercial Purchase Card Guidance Related to Class Deviation 2018-O0018 dated August 31, 2018,” dated 21 September 2018. On 24 January 2018, administrative updates were made to incorporate changes in Sections 2.2.3 & A.2.4, and Appendix L related to the 10/20/17 memorandum from the Deputy Director, Program Development and Implementation, “Department of Defense Office of Management and Budget Reporting.”



• Click here for the Department of Defense (DoD) Purchase Card Policy Office (PCPO) Government Purchase Card (GPC) Review Best Practice Checklist (July 2012).
• The Director of the Defense Procurement and Acquisition Policy provided the following Purchase Card Data Strategy Memo and Purchase Card Data Management Plan, detailing the functional flow of Purchase Card event life cycle from the request and issuance of the card through the use, to post-use analysis.
• Inclusion on Personnel Departure Checklists of the Requirement to Turn in Government Charge Cards (June 23, 2003) The Under Secretary of Defense (Comptroller) determined that every personnel departure checklist shall include the requirement to turn in all government charge cards.
• The Director of Defense Procurement and Acquisition Policy issues class deviations when necessary to allow organizations to deviate from the FAR and DFARS. Attachments in Word format for class deviations on this page can be found Here.
• The Policy Log Matrix lists all relevant Purchase Card Policy by year and includes a summary of each policy document for easy browsing.




Purchase Card Policy (listed by year)

• 2019
  
  

  Refund Validation under SmartPay® 3 - SP3 Transition Memo #9 Component Program Managers (CPMs) or their designees are required quarterly to validate the accuracy of refunds earned and ensure refund receipts are properly recorded.

  Closeout of Air Force/Defense Agencies SmartPay® 2 Task Order - SP3 Transition Memorandum #8 DPC/CeB is initiating the SP2 AF/DA task order closeout process. This will first require closeout of all SP2 managing and cardholder accounts, including Annual Managing Account Reviews, SP2 GPCs and convenience checks, and other SP2 closeout items. A/OPCs are required to close outstanding delinquencies, disputes, and other open transactions in a timely manner, working with the bank until all CH and MA accounts under their purview are closed.

  Purchase Card On Line System Data Mining Case Closure, Phase 2 – SP3 Transition Memorandum #7 This memo addresses the status of the required closure of Purchase Card On-Line System (PCOLS) data mining cases under SmartPay® 2. The remaining unadjudicated PCOLS cases with transactions valued at $1,000 or greater that posted after September 15, 2018, must be closed within three weeks of April 19, 2019. DPC will instruct U.S. Bank to reduce the associated SP3 Managing Accounts' transaction authority to $1 for all cases remaining open past the suspense date, if not already reduced.

  Department of Defense SmartPay® 3 Government-wide Commercial Purchase Card Policies, Procedures and Tools – SP3 Transition Memorandum #6 This memo and its attachment specify updated policies, procedures, and electronic program management and control compliance tools mandated for use by all DoD Components executing transactions under the terms of the U.S. Army, U.S. Air Force and Defense Agencies and Activities, and U.S. Navy GPC SP3 Tailored Task Orders.

  OUSD (A&S) Prohibited Purchases Memo (3/1/19) (requires a CAC to access): This For Official Use Only memorandum provides additional information on Governmentwide Commercial Purchase Card prohibitions.

  2019 General Services Administration SmartPay Training Forum (2/15/2019): All DoD GPC Program oversight personnel are encouraged to attend, subject to availability of resources, the 2019 GSA SmartPay Training Forum. The Forum is scheduled for 16-18 July 2019 in Atlanta, GA, at the Hyatt Regency Atlanta and Atlanta Marriott Marquis properties. Travel dates are 15 and 19 July. The Training Forum is not designed for Cardholders.

  DoD Government Charge Card Guidebook for Establishing and Managing Purchase, Travel, and Fuel Card Programs (1/9/2019): By FY 2020, DPC/CeB will no longer support coordination of the subject Guidebook across the Department's charge card programs. The existing Guidebook will be replaced with a GPC-unique document.

• 2018
  
  

  Purchase Card Online System Data Mining Case ClosureNon-Compliance Ramifications – SP3 Transition Memorandum #5 (12/20/2018): On October 11, 2018, OUSD(A&S) DPC/CeB mandated that allopen SmartPay (SP) 2 data mining (DM) cases valued at $1,000 or greater shallbe closed no later than December 21, 2018. Until such closure/adjudication, SP3successor accounts are to have transaction authority of $1. To ensurecompliance with this policy, on January 7, 2019, OUSD(A&S) DPC/CeB willdirect U.S. Bank to reduce the managing account (MA) transaction authority foreach SP3 successor account with open DM cases. Once the open cases have been closedat the MA level, the preexisting account thresholds will be reinstated.

  Cancellation of Governmentwide Commercial Purchase Card Defense Acquisition University Training Courses - Continuous Learning - GPC CLG 004 and CLG 005 (12/7/2018): To ensure GPC program officials receive a complete and up-to-date topical review during their refresher training, "DoD Governmentwide Commercial Purchase Card Overview" (CLG 001) is now the required course to fulfill both initial and refresher GPC training requirements. "DoD GPC Refresher Training" (CLG 004) is hereby permanently cancelled. Additionally, due to the upcoming sunset of the Purchase Card Online System, "Purchase Card Online System (PCOLS)" (CLG 005) will also be permanently cancelled effective 21 December 2018.

  Delay in Data Mining Case Adjudications within Insightson Demand – SP3 Transition Memorandum #4 (12/3/2018): Due to a hierarchy issue with Insights on Demand (IOD), U.S.Bank’s data mining solution for SmartPay® case assignments for adjudication havebeen delayed. Case assignments will begin on approximately December 19, 2018,at which point A/BOs will need to immediately begin adjudicating their cases.All efforts will be made to accelerate this date and mitigate the impact ofthis delay.

  Appointment of Government wide Commercial Purchase Card Officials - SmartPay® 3 Transition Memorandum #3 (11/16/2018): Well defined roles and responsibilities is a key internal control requirement for successful execution of the Department of Defense (DoD) Government wide Commercial Purchase Card (GPC) program. To ensure GPC officials are consistently held accountable to execute standard enterprise-wide roles and responsibilities, the Joint Appointment Module (JAM), which deployed as an application within the Procurement Integrated Enterprise Environment (PIEE) in September 2018, is now the enterprise tool for appointing and delegating authority to GPC personnel.

  Mandated Closure of Purchase Card on Line System Data Mining Open Cases - SP3 Transition Memorandum #2 (10/11/2018): Due to the high number of open cases requiring adjudication, DPC/CeB has determined that a stratified sampling review of the DM Open Case Backlog will be required. DPC/CeB plans to release two iterations of a spreadsheet listing all open DM cases, for the past 18 months, valued at $1,000.00 or greater, on approximately 15 October 2018 and 5 December 2018. These open cases must be adjudicated prior to 21 December 20 18. Program officials shall continue to disposition all current cases in a timely manner.

  Government-wide Commercial Purchase Card Guidance Related to Class Deviation 2018-O0018 dated August 31, 2018 (9/21/2018): This memorandum rescinds reference (A) and provides Government Purchase Card (GPC) implementing guidance related to the $10,000 micro-purchase threshold (MPT) authorized for use in reference (B). See memo for more details.

  Award of DoD SmartPay®3 Government Purchase Card Tailored Task Orders - SP3 Transition Memorandum #1 (8/27/2018): The Department of Defense (DoD) recently awarded two SmartPay®3 (SP®3) Tailored Task Orders (TIO) to U.S. Bank: the Department of the Army/Department of the Air Force/Defense Agencies and Activities TTO was awarded in June 2018, and the Department of the Navy TTO was awarded in July 2018. The terms of the subject TTOs and applicable GSA SP®3 Master Contract require that the transition from SP®2 to SP®3 include the closing of all SP®2 accounts, creation of new accounts, and issuance of new purchase cards to DoD.

  Government-wide Commercial Purchase Card Prohibited Purchases (8/15/2018): The Defense Federal Acquisition Regulations Supplement (DFARS) Part 213.3 provides direction for authorizing, establishing. and operating Government-wide Commercial Purchase Card (GPC) programs. and directs personnel to follow the guidance in the Department of Defense Government Charge Card Guidebook for Establishing and Managing Purchase, Travel, and Fuel Card Programs (Guidebook). Section A.l.2.4 of the Guidebook (effective 1 October 2017 and updated on 24 January 2018) establishes a list of items prohibited from purchase using the GPC. This memo adds the following items to the prohibited list: Video Surveillance Cameras AND Commercial Unmanned Aerial Systems.

  Deployment of Government Purchase Card Disciplinary Category Terms and Definitions into Data Mining Systems (8/13/2018): This memo notifies the components that Department of Defense (DoD) Government Purchase Card (GPC) data mining systems (Program Audit Tool (PAT) for the Navy; Purchase Card Online System (PCOLS) for the Army, Air Force and Defense Agencies/Activities) that support SmartPay 2 actions have been updated to reflect the disciplinary category terms and associated definitions as established in the attached memo and reflected in the DoD Government Charge Card Guidebook for Establishing and Managing Purchase, Travel, and Fuel Card Programs (DoD Guidebook).

  Class Deviation - 20180413 - Class Deviation 2018-O0013 (4/13/2018): This class deviation rescinds and supersedes Class Deviation 2017-O0007, dated September 1, 2017, and Class Deviation 2018-O0001, dated November 8, 2017. Effective immediately, for DoD acquisitions of supplies or services funded by DoD appropriations, contracting officers shall use the revised definitions and procedures associated with the micro-purchase threshold, simplified acquisition threshold, and special emergency procurement authority provided in the attachments to this class deviation. Note: Word formatted Attachments can be found on the DARs Class Deviations Page.

  2018 GSA SmartPay Training Forum (4/18/2018) - All Government Purchase Card oversight personnel are encouraged to attend the 2018 GSA SmartPay Training Forum. The Forum is scheduled for August 7-9, 2018, in New Orleans, Louisiana, at the New Orleans Ernest N. Morial Convention Center. Travel dates are 6 and 10 August 2018.

  DoD MPT Remails $5K (1/24/2018): Be advised the Department's Micro-Purchase Threshold (MPT) of $5,000 remains as stated in the DF ARS Class Deviation 2017-00007, dated September 1, 2017. While section 806 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2018, (Public Law 115-91), amended section 1902(a)(1) of title 41, United States Code, to increase the Federal MPT from $3,000 to $10,000, section 806 did not repeal section 2338 "Micro-purchase threshold" of title 10, United States Code, or section 2339 "Micro-purchase threshold for basic research programs and activities of the Department of Defense science and technology reinvention laboratories" of title 10, United States Code.

• 2017
  
  

  DoD OMB Reporting Memorandum (10/20/2017): Effective immediately, in accordance with the requirements of references (A) through (C), the DoD GPC program will maintain statistical, narrative, and violation information for Department use and management of the DoD purchase card program, but will not submit this information to OMB.

  Lodging in Kind Memorandum (10/19/2017): U.S. Army requested Defense Procurement and Acquisition Policy (DPAP) to provide clarifying guidance about Governmentwide Commercial Purchase Card (GPC) use for travel-related expenses, specifically travel-related expenses for Lodging in Kind (LIK) ( i.e., housing provided to servists on their drill weekends if they have to travel more than 50 miles from home). On 21 September 2017, DPAP reaffirmed by memorandum to the Army that the existing policy stands.

  Army GPC Travel Prohibition (09/21/2017): This memorandum reaffirms the DPAP/Program Development and Implementation position that GPC purchases for travel-related expenses are prohibited as stated in the Department of Defense Government Charge Card Guidebook for Establishing and Managing Purchase, Travel, and Fuel Card Programs, section A.2.4 Prohibited Purchases, paragraph v. This prohibition includes travel-related expenses for LIK, Subsistence in Kind (SIK), and Junior Reserve Officers' Training Corps (JROTC) and remains unchanged.

  Department of Defense Government Charge Card Guidebook for Establishing and Managing Purchase, Travel, and Fuel Card Programs Update (9/21/2017): This memorandum provides notification that an updated version of the Department of Defense Government Charge Card Guidebook for Establishing and Managing Purchase, Travel, and Fuel Card Programs is posted at http://www.acq.osd.mil/dpap/pdi/pc/policy_documents.html. The effective date of this update is 1 October 2017.

  Class Deviation - 2017-O0007, Special Emergency Procurement Authorities (9/1/2017): Effective immediately, for DoD acquisitions of supplies or services funded by DoD appropriations, contracting officers and other individuals delegated micro-purchase authority shall use the special emergency procurement authorities as set forth in the definitions and procedures provided in the attachment to this class deviation.

  Class Deviation - 2017-O0006, Increased Micro-Purchase Threshold; Related guidance USA002333-17-DPAP; and Supplementals (7/13/2017_7/21/2017): Effective immediately, for DoD acquisition of supplies or services funded by DoD appropriations, contracting officers and other individuals delegated micro-purchase authority shall use the definition of "micro-purchase threshold" within this class deviation in lieu of the definition at FAR 2.101. Additional guidance and supplementary documentation are appended to the policy document.

  Interim Guidance on Government Purchase Card Disciplinary Category Definitions used in Office of Management and Budget Violations Reporting (7/3/2017): Existing guidance on Government Purchase Card (GPC) disciplinary category definitions is not consistent across the Department of Defense (DoD). This guidance provides interim definitions, examples, and intentionality for each category, and indicates which are reportable as violations to OMB (abuse, internal fraud, misuse, and delinquency) and which are not reportable (administrative discrepancy and external fraud).

  2017 GSA SmartPay Training Forum (3/9/2017) All Government Purchase Card oversight personnel are encouraged to attend, subject to availability of resources, the 2017 General Services Administration (GSA) SmartPay Training Forum. The Forum is scheduled for August 1-3, 2017, in Phoenix, Arizona, at the Phoenix Convention Center.

  Temporary Suspension of DoD Government Purchase Card Refresher Training Module: Continuous Learning-GPC 004 (CLG 004) On April 7, 2016, Defense Acquisition University (DAU) released a major update to DoD Government wide Commercial Purchase Card Overview, CLG 001. To ensure the training program participants receive is both current and accurate, it has been determined that DoD Government Purchase Card Refresher Training, CLG 004 will be taken offline as the course undergoes necessary content update.

• 2016
  
  

  Opportunities to Leverage Buying Power with Purchase Cards (9/13/2016) The General Accounting Office (GAO) in report GAO-16-526, Government Purchase Cards: Opportunities Exist to Leverage Buying Power, identified steps to be taken to increase savings to the Department. By following Appendix B of The Office of Management and Budget's Circular A-123's definition of strategic sourcing, the Department will have these increased savings defined as "collaborative and structured process of critically analyzing an organization's spending and using this information to make business decisions about acquiring commodities and services more effectively and efficiently."

  Government-wide Purchase Card Certifying Officer Appointments (7/29/2016) Effective Immediately, Defense components using the PCOLS Certifying Officer Appointment workflow are no longer required to process, sign, store, or provide to the Defense Finance and Accounting Service "wet-signature" DD From 577s, "Appointment/Termination Record -Authorized Signature," (for accounts that are set up for electronic certification for payment). "Wet-signature" DD Form 577s are still required for accounts not set up for electronic certification.

  Update to the DAU CLG-001: Purchase Card Training course (4/7/2016) This memorandum provides notification of the update to the DAU CLG-001 training required for the initial training requirement. In addition, the memorandum strongly recommends the use of this updated course to fulfill the refresher training requirement.

• 2015
  
  

  Increase in Micro-Purchase Threshold (07/02/2015) Federal Register/Vol.80, No.127/Rules and Regulations/Page 38294. This rule amends multiple FAR parts to further implement 41 USC 1908. Section 1908 requires an adjustment every five years of statutory acquisition-related thresholds for inflation. Effective October 1, 2015 the micro-purchase base threshold of $3,000 (FAR 2.101) is increased to $3,500.

• 2014
  
  

  Improving Federal Procurement Data System Reporting (04/18/2014). This memorandum emphasizes the need for continued efforts to improve the accuracy and reliability of FPDS data. Related policy clarifications are discussed.

  Updated DoD OMB Reporting Processes Memo (02/04/2014) This memorandum announces the implementation of new DoD reporting process in support of OMB Circular No. A123 Appendix B (Improving the Management of Government Charge Card Programs) and Public Law 112-194 (Government Charge Card Abuse Prevention Act of 2012).

• 2013
  
  

  Implementation of the Government Charge Card Abuse Prevention Act of 2012 (9/6/2013): On October 5, 2012, the President signed into law the Government Charge Card Abuse Prevention Act of 2012 (Charge Card Act), Public Law 112-194, which reinforced Administration efforts to prevent waste, fraud, and abuse of Government-wide charge card programs.

• 2012
  
  

  Public Law 112-194: Government Charge Card Abuse Prevention Act of 2012 (10/05/2012) – This law establishes safeguards and internal controls to prevent the abuse of Government Charge Cards. The Office of Charge Card Management (OCCM) has developed a point by point analysis of S.300 (Crosswalk Document), which outlines each requirement of S.300 and indicates which section of OMB Circular A-123, Appendix B fulfills the requirement.

  DOD Standard Line of Accounting /Accounting Classification Memo(09/14/2012)) – Policy memo establishing a DOD Standard Line of Accounting (SLOA) and updates the Standard Financial Information Structure (SFIS).

  DoD Inspector General Memo (09/05/2012) – This memo announces the DoD IG’s plans to conduct an “Audit of the Adequacy of DoD Approving/Billing Officials’ Review of At-Risk Transactions Identified by the Purchase Card Online System” in DoD locations where PCOLS is deployed.

  System for Award Management Phase 1 Implementation (7/27/2012) - DoD preparations for implementation of SAM and transition from legacy applications.

  Purchase Card Online System Deployment Update Memo (05/14/2012) - This updated guidance requires all PCOLS deployment reporting to be posted to the DPAP website at http://www.acq.osd.mil/dpap/pdi/eb/pcols.html. Any Defense Agency not compliant with deploying PCOLS by 3rd QTR FY12 will have high risk transactions referred to the DoD Inspector General.

  14th Annual GSA SmartPay Training Conference - Recommends attendance for all A/OPCs at the 14th Annual GSA SmartPay 2 Conference scheduled for July 31 - August 2, 2012 in Nashville, TN. The conference is recommended for Approving Officials, Billing Officials, Inspector General Staff, and Financial, Resource or Budget personnel.

• 2011
  
  

  Track Four Efficiency Initiatives Decisions 3/14/2011 -A series of initiatives designed to reduce duplication, overhead, and excess, and instill a culture of savings and cost accountability across the Department of Defense

  13th Annual GSA SmartPay Training Conference-Mandatory for DoD A/OPCs (March 29, 2011) Directs mandatory attendance for all A/OPCs at the 13th Annual GSA SmartPay 2 Conference scheduled for August 16-18, 2011 in Las Vegas, NV. The conference is recommended for Approving Officials, Billing Officials, Inspector General Staff, and Financial, Resource or Budget personnel.

• 2010
  
  

  Reporting Governmentwide Purchase Card Actions to the Federal Procurement Data System (FPDS) (October 26, 2010) Indicates the reporting requirements of actions conducted with the GPC to the FPDS. The following requirements are effective immediately: 1) All contracts/orders where GPC is used solely as payment must be reported to FPDS regardless of dollar value. 2)Open-market actions paid for with the GPC shall not be reported to FPDS. 3) For actions under federally awarded contracts Components shall report all actions using the GPC to FPDS.

  Joint Basing Government Purchase Card Policy (10/12/2010) - Policy guidance regarding Government Purchase Card (GPC) program surveillance and management at joint bases.

  12th Annual GSA SmartPay Training Conference-Mandatory for DoD A/OPCs (March 17, 2010) Directs mandatory attendance for all A/OPCs at the 12th Annual GSA SmartPay 2 Conference scheduled for August 10-12, 2010 in Atlanta, GA. The conference is recommended for Approving Officials, Billing Officials, Inspector General Staff, and Financial, Resource or Budget personnel.

  DoD Purchase Card Online System Capability (March 3, 2010) Mr. Assad congratulates Air Force, Defense Logistics Agency, Defense Commissary Agency, Defense Contract Management Agency and the Washington Headquarters Service for their progress in the implementation of PCOLS as per directed on the November 19, 2009 memorandum directing full PCOLS deployment by January 1, 2010. All activities not noted above are to provide a new implementation plan for PCOLS within 30 days from the date of this memorandum.

• 2009
  
  

  DoD Purchase Card Strategy (September 3, 2009) The attached draft document describes the DoD strategy for information/data flow, transmission and storage of DoD Purchase Card data. The document also solicits input to improve its accuracy and to determine possibility of eliminating "paper documentation" in any associated Purchase Card business process.

  Use of Wide Area Workflow (WAWF) for Purchase Card Transactions (September 2, 2009) The 2009 Defense Authorization Act directed a plan to enable capture of acceptance data for items bought with a purchase card by modifying WAWF to enable receiving reports for card transactions.

  Linking Financial Data to Contract Documents (March 2009) Establishes a new paradigm and business rules to the historical practice of contract documents containing a financial line of accounting. New contract awards no longer will be reliant on carrying line of accounting data, it will carry the AAI attribute to route contract transactions to the appropriate accounting system.

  11th Annual GSA SmartPay Training Conference-Mandatory for DoD A/OPCs (2009) Directs mandatory attendance for all A/OPCs at the 13th Annual GSA SmartPay 2 Conference scheduled for July 28-30, 2009 in Phoenix, AZ. The conference is recommended for Approving Officials, Billing Officials, Inspector General Staff, and Financial, Resource or Budget personnel.

• 2008
  
  

  DoD Deployment of Purchase Card Online (PCOLS) Capability (November 19, 2008) PCOLS a web based system capability was designed to address weaknesses in the charge card program. AIM, a workflow tool that identifies questionable purchase card transactions. Data mining algorithms identify purchases that could be fraudulent. A Risk Assessment application will allow both auditors to asses the "health" of local card programs. All Component Procurement Executives are required to develop a plan to implement this capability that should be submitted by January 9, 2009.

  Government Purchase Card (GPC) Certifying Officer and Departmental Accountable Official Responsibilities (November 7, 2008) In accordance with the Certifying Officer Legislation, Section 3528 of title 31 United States Code, a certifying officer is pecuniarily liable for illegal, improper or incorrect payments resulting from improper certification.

  GSA SmartPay Conference – Mandatory for DoD AOPCs (June 10, 2008) This memorandum announces the importance of the annual training for Department of Defense Agency Program Coordinators conducted at the General Services Administration (GSA) Smart Pay Conference. This years training will be held July 22-24 2008 in Denver, Colorado.All purchase cards will be cancelled effective 30 November 2008 and reissued under the SmartPay 2 contract that starts effective 1 December 2008. This, in addition to the on-going deployment of the Purchase Card On-Line System (PCOLS), makes attendance at the event for all A/OPCs critical. Further details are provided within the memorandum.

• 2007
  
  

  Preferred Payment Method for Official Representation Funds (December 18, 2007)

  Third Party Payments 10/17/2007-This memorandum revises previous policy issued on March 7, 2005 on this subject. In that memorandum we stated that the use of a third party payment merchant was not allowed under any circumstances. Since the issuance of the subject memorandum, we have received persuasive feedback which sites numerous situations where the use of a third party payment merchant is unavoidable. Therefore, we are revising the existing policy to state that where it is identified that the purchase will be processed via a third party merchant, the cardholder should make every attempt to choose another merchant with whom to procure the goods and/or services.

  Documenting and Reporting Civilian Training Requirements (October 29, 2007) Institutes a new policy on documenting and reporting training by: 1) sunsetting the DDForm 1556, Request, Authorization, Agreement, Certification of Training and Reimbursement and replacing it with the SF 182, Authorization, Agreement, Certification of Training 2) requiring that all instances of completed civilian employee training be input to the DCPDS 3) Requiring that all LMSs be capable of reporting data elements required by OPM.

  Purchase Card Internal Controls Revision (October 17, 2007) On December 19, 2005 the Defense Procurement and Acquisition Policy (DPAP) Office and the OUSD (Comptroller) issued a joint memorandum entitled "Internal Controls for the Purchase Card Program." This posted memorandum and guidance implement a revision to the certificaiton process to comply with the requirements in the Department of Defense Financial Management Regulation Volume 5, "Disbursing Policy and Procedures".

  Miscellaneous Payment Guidebook (October 7, 2007) DPAP and the Comptroller developed the first edition of the Miscellaneous Payment Guidebook. It serves as a baseline to standardize the miscellaneous payment process and enable future automation. WAWF plans to provide a link to the miscellaneous payment categories section within the guidebook.

• 2006
  
  

  Component Efforts to Address Purchase Card Abuse (December 12, 2006) This memo requires each senior procurement executive to brief the Director, DPAP on the programs they are using to address purchase card misuse.

  Mandatory Purchase Card Refresher Training (August 22, 2006) Requires that all cardholders, approving officials, certifying officials and A/OPCs to take a refresher GPC training every two years after completing basic training. Departments may develop a course or use the DAU online course.

  FOIA Policy on Release of Credit Card Data (June 29, 2006) The guidance "Release of Purchase Card Data to the Public Domain authorized DoD Purchase Card Program Offices to only release the following specific transactional data in response to FOIA requests: merchant category code, transaction amount, merchant name, merchant, city, state, zip, phone, transaction date

  Convenience Check Screening (March 17, 2006) Enclosed listing of convenience checks that violated the $2,500 threshold written between June 2005 to November 2005. The document requests the immediate audit and cancellation of the check accounts and a report of the findings to be forwarded to the Purchase Card Program Office no later than 30 days after receipt of this memorandum.

• 2005
  
  

  Internal Controls for the Purchase Card Program (December 8, 2005) The Comptroller and the Joint Purchase Card Program Management Office have developed Internal Controls to manage risk associated with the use of the Government Purchase Card. This memo also issues guidance on nominating electronic solutions other than the use of the existing bank systems for validation of invoices. Military Departments and Defense Agencies should ensure that their purchase card guidance and instructions are consistent with these controls.

  Purchase Card Policy on Use of Convenience Checks (October 12, 2005). The purpose of this memorandum is to re-emphasize Department policy governing the use of convenience checks.

  Use of the Government Purchase Card (GPC) in Support of Hurricane Katrina Rescue and Relief Operations (September 21, 2005) The Joint Purchase Card Program Management Office has issued the following guidance on the Use of the Government Purchase Card (GPC) in Support of Hurricane Katrina Rescue and Relief Operations.

  Withholding of Information that Personally Identifies DoD Personnel (September 1, 2005) This memorandum limits the release of information on DoD personnel at the office director level or above to names, official titles, organizations, and telephone numbers.

  Release of Purchase Card Data to the Public Domain (June 15, 2005) Guidance from the Director, Defense Procurement and Acquisition Policy concerning the release of purchase card data to the public, authorizing a limited amount of purchase card transactional data at the installation, base, or activity level for non-classified accounts.

• 2004
  
  

  DoD Purchase Card Program Training Nonappropriated Fund (NAF) Participants (July 8, 2004) The GSA Purchase Card training was reviewed in response to the Navy's request to consider the GSA training as the mandatory source of training for NAF Purchase Card Program participants in lieu of the training currently mandated at DAU. It was determined that the GSA training meets all of the salient requirements for a general overview of the program. The Air Force, however, prefers to continue use of the DAU training.

  OMB Guidance to Implement Credit Worthiness Evaluation Requirement (Section 638 of the FY04 Omnibus Appropriations Act) (June 14, 2004) The FY 2003 Defense Appropriations Act required the Secretary of Defense to evaluate the creditworthiness of individuals before issuing them purchase or travel charge cards and stated that an individual may not be issued a card if found not credit worthy.

  DoD Charge Card Programs Proposed DoD Directive (June 4, 2004) The proposed directive establishes policy, assigns responsibilities and prescribes procedures for initiating and managing DoD Charge Card Programs, to include the Aviation-Into-Plane Reimbursement Card, the Fleet Card, the Purchase Card and the Travel Card.

  GAO-04-430 “Contract Management: Agencies Could Achieve Significant Savings on Purchase Card Buys,” (GAO Code 192082) (May 24, 2004) This is in response your memorandum of April 29, 2004, requesting a proposed response to GAO with regard to the subject final report. DoD's overall position on the report has not changed, and there are no additional comments to the report.

  Proposed New Form Credit Worthiness Evaluation (May 24, 2004) The Fair Credit Reporting Act requires cardholder permission before a formal credit check can be conducted. If sufficient numbers of cardholders refuse to give permission, the effectiveness of the Government Purchase Card Program in the future could be limited.

  GAO Draft Report, “Contract Management: Agencies Could Achieve Significant Savings on Purchase Card Buys,” (GAO Code 192082) (March 1, 2004) This is the Department of Defense (DoD) response to the GAO draft report, "CONTRACT MANAGEMENT: Agencies Could Achieve Significant Savings on Purchase Card Buys," dated February 9, 2003 (GAO Code 192082/GAO-04-430). Enclosed are DoD's detailed comments regarding the three recommendations on pages 25 and 26 of your draft report.

  DoD Response to GAO Report GAO-04-156, “Purchase Cards: Steps Taken to Improve DoD Program Management, but Actions Needed to Address Misuse.” (January 28, 2004) This is the Department of Defense (DoD) response to the General Accounting Office (GAO) final report, GAO-04- 156, "PURCHASE CARDS: Steps Taken to Improve DoD Program Management, but Actions Needed to Address Misuse," dated December 2,2003 (GAO Code 192090). It provides additional comments.

• 2003
  
  

  Government Charge Card Disciplinary Guide for Civilian Employees (12/29/2003) - This memorandum implements 10 U.S.C. 2784a, as amended by section 1009 of the National Defense Authorization Act (NDAA) for Fiscal Year 2004, Public Law 108-136. Additionally, it is a follow-up to memorandum dated April 21, 2003, implementing the "Government Charge Disciplinary Guide for Civilian Employees.”

  Disciplinary Guidelines for Misuse of GPC by Military Personnel-6/10/2003-Following reports of government charge card misuse within the Department, the DoD Charge Card Task Force identified personal accountability as essential to DoD's efforts to strengthen the Department's purchase and travel charge card programs. It shall be DoD policy that in each case of improper, fraudulent, abusive, or negligent use of a government purchase or travel charge card by military personnel, including any use at establishments or for purposes that are inconsistent with the official business of DoD or with applicable standards of conduct, the commander or supervisor of the responsible individual or parties will be informed in a timely manner in order that appropriate corrective or disciplinary action may be taken.

  Optimizing Component Purchase Card Purchasing Power (June 5, 2003) Management Initiative Decision (MID) 904, Recommendation PC-13 requires all Components to review FY 2002 purchase card transactions for strategic sourcing intelligence and to determine if they could optimize purchasing power through Component-wide contracts. The enclosed memorandum acknowledges and commends the Components for taking the initiative to achieve this objective.

  Disciplinary Guide for Civilians 4/21/2003- The FY03 Appropriations Act requires that procedures be established for dealing with improper, fraudulent or abusive use of government purchase cards and government travel charge cards by DoD civilian employees. The FY03 NDAA requires that DoD issue regulations providing for appropriate corrective actions for employees who are negligent or who engage in misuse, abuse, or fraud with respect to a purchase card. Existing Component disciplinary policies satisfy these new requirements; however, we developed a sample range of suggested penalties included in the report guidance attached, so that us of these policies reflect consistent application. DoD Components must take appropriate action to implement this guidance as necessary and furnish this office a report by May 15, summarizing how Component policy meets statutory requirements. This data will be used to satisfy congressional reporting requirements as outlined in Subsection 8149(d) of the FY03.

  Acquisition of Gift Certificates through Use of the DoD Purchase Card (March 21, 2003) This is in response to your memorandum of March 4, 2003, requesting waiver authority to purchase gift certificates with the DoD Purchase Card. The request for waiver is denied.

  DoD Charge Card Special Focus Group (March 4, 2003) The Department must ensure the proper stewardship of public funds and sustain the momentum initiated by the Government Charge Card Task Force. To this end, a Special Focus Group for Charge Cards is being established, under the aegis of the Acquisition Governance Board, to ensure that an appropriate balance is established between streamlining business processes and proper use of charge cards. This group will also ensure successful implementation of Management Initiative Decision 904 and establish a strategic vision for the Department's future.

• 2002
  
  

  Internal Controls for the Purchase Card Program (November 27, 2002) To provide stronger internal controls for the purchase card program all Military Departments, Defense Agencies, and DoD Field Activities must accelerate fielding of online certification and bill payment tools at ever DoD installation.

• 2001
  
  

  Blocking of Merchant Category Codes (PC PMO) (October 5, 2001) Reminder of the DoD policy of restricting purchases of items/services from merchants coded in certain categories. The memo lists merchant codes who have identified themselves within these categories.

  Operation Mongoose Fraud Detection Program (PC PMO) (October 5, 2001) Describes the purpose of Operation Mongoose and the need to expand the program to formally include purchase card transactions and associated dollars. Specifically, the data mining or data query efforts by the Air Force Audit Agency and the DoDIG should be considered for program inclusion.

  Government Purchase Card Internal Controls (Director, DP) (August 13, 2001) Highlights the need to ensure proper oversight of DoD's purchase card program at all levels, but especially at the post/camp/station level. Encourages approving officials to perform frequent spot checks of internal controls, including the using the audit activities and inspector's general assigned to the organizations.

  Purchase Card Program Electronic Data Interchange Response Cell and SOP (PC PMO) (July 13, 2001) Announces the establishment of an Electronic Data Interchange (EDI) Response Cell in support of US Bank Government Purchase Card customers and Standard Operation Procedure (SOP). Errors surrounding the digital flow of obligations and invoices generated by U.S. Bank to the DoD's financial management systems should be reported to this Response Cell. The Response Cell indentifies where in the process the digital flow was interrupted and to assign corrective action.

  Internal and Management Controls-DoD Purchase Card Program (PC PMO) (July 5, 2001) Stresses the need for a system of internal and management controls to minimize losses. Appropriate allocation of resources to allow officials to perform their dutis accurately is essential. Billing officials should have no more than 5-7 cardholders assigned to them for oversight and program coordinators must be given the resources to complete annual or semi-annual compliance review and training.

  Cash Management of Commercial Banks Program Billing (DFAS) (May 8, 2001) The commercial bank program contracts for the Purchase Card, Travel Card and PowerTrack include rebates based on early payment of the billings. Based on the attached table illustrating CVF rebate discount points, payments for the US Bank Purchase Card, Citibank Purchase Card and Bank of America Travel Card are to be paid as soon as they are ready for payment. in contrast, payments for the US Bank PowerTrack will be paid and the end of the payment cycle.

• 2000
  
  

  Appointing Certifying Officers (ASA(FM&C)) (August 31, 2000) This memorandum delegates to commanders, activity directors and other personnel the authority to appoint certifying officers. Certifying officers are accountable to ensure payments are legal, proper and correct by their certification on vouchers prior to payment. Sample for the appointment and acknowledgement of appointment of certifying officers is enclosed.

  Continuous Learning Points for GSA SmartPay Conference (PC PMO) (August 10, 2000) Workforce members who attend the GSA SmartPay conference on August 29-31, 2000, can earn Continuous Learning Points. The training is mandatory for APCs.

  Certification of Purchase Card Payment Invoices (PC PMO) (August 1, 2000) This memorandum asks for support in ensuring only properly authorized individuals certify purchase card invoices for payment. DoD is implementing a web based, electronic review, approval and certification process, the payment office will assume that electronic certification was made by authorized individuals.

  Conference Planning (OFPP) (May 15, 2000) GSA guidelines to minimize overall Government expenses associated with conferences

  Use of Charge Card Rebates to Fund Government-wide Initiatives-Revised DoD Contribution (USD(AT&L) and (USD(C)) (April 11, 2000) Identified theDoD commitment, for fiscal year 2000, to fund interagency initiatives using charge card rebates. DoD Purchase Card Program and the Travel Card PMO are directed to remit up to $3.312 million to these initiatives for fiscal year 2000.

  Use of Charge Card Rebates to Fund Government-wide Initiatives (USD(AT&L) and USD(C)) (February 22, 2000) Section 637 of the fiscal year 2000 Treasury and General Government Appropriations Act, states that the Administrator of General Services may provide up to $7 million from government wide credit card rebates to support Government-wide financial, information technology, procurement, and other management innovations.

• 1999
  
  

  Purchase Card Delinquency Policies (PC PMO) (September 17, 1999) US Bank and Citibank will suspend any billing account that goes 60 days delinquent. If any of those accounts go 180 days delinquent, the entire activity will be suspended. The banks will lift the suspension once they are paid.

  Changes to the FPDS Reporting Manual on Purchase Card Transactions (OFPP) (May 18, 1999) Agencies shall not report imprest fund transactions, SF 44 purchases, training authorizations, and micro purchases (valued at $2,500 or less) obtained through the government purchase card.

  Use of Commercial Purchase Card for Electronic Catalog (ECAT) Contracts (DSC, Philadelphia) (March 23, 1999) All ECAT contracts are pre-priced, these contracts offer multiple payment methods, which include Interfund Filling and GPC. The use of purchase cards against existing contracts generates internal savings that warrant the use of purchase cards for payment.

  Purchase Card Program – Cross Disbursements (PC PMO) (March 1, 1999) Requests assistance in ensuring purchase card billing accounts are established in such a way that cross disbursements do not occur. It is essential that billing officials forward certified invoices to his/her appropriate accounting office. When a billing office is procuring for customers that are supported by different payment offices, the billing official must establish separate accounts, thereby ensuring invoices are sent to the correct office.

  Applicability of the Javits-Wagner-O'Day Program for Micropurchases (OFPP) (February 16, 1999) The JWOD Program is a mandatory source of supply for all entities of the Federal Government, with any payment method (including purchase cards) and at any dollar value.

  Purchase Card Delinquencies (PC PMO) (February 5, 1999) DoD was delinquent by over $10 million to US Bank. Ms. Eleanor Spector, Director of Defense Procurement, directed that all accounts be paid in full no later than September 30, 1998. Charts depicting delinquencies are attached.

• 1998
  
  

  Purchase Card Reengineering Implementation Memorandum #1: Certifying Officer Guidance (USD(Comptroller))( November 20, 1998) Attached to this memorandum is a complete revision of the Purchase Card Reengineering Memorandum #1 that implements a tiered approach to payment certification in accordance with Chapter 33, "Accountable Officials and Certifying Officers," of Volume 5, "Disbursing Policy and Procedures," of the DoD FMR.

  Streamlined Payment Practices for Awards/Orders Valued at or below the Micro-Purchase Threshold (USD(A&T) (October 2, 1998) A written determination by a member of the Senior Executive Service, Flag Officer, or General Officer is required for any type of award/order valued at or below $2,000 that does not use the purchase card on a stand alone basis or as the method payment.

  Use of Government-Wide Purchase Cards (USD(P&R) (September 25, 1998) To expedite use of the government wide purchase card, purchase cards will be the method of payment for training requests (below $25,000), medical services (below $2,500), and certain purchases made with Nonappropriated Funds (below $2,500).

  Purchase Card Task Order Transition and Payment Delinquencies (Director, DPAP) (July 24, 1998) All existing task orders with US Bank for purchase card services will expire. Task orders for the Department's follow-on requirements were awarded to US Bank and Citibank for performance beginning November 30, 1998. $8,00 million delinquent payments to US Bank must be reconciled no later than April 1, 1999.

  Purchase Card Program Reengineering Implementation Memorandum #6: Streamlined Payment Practices (Deputy Secretary of Defense)( July 20, 1998) Stresses the importance of expanding usage of the purchase card to reduce the costs of financial transactions. Directs the following to broaden use of the purchase card: 1.)Use of the purchase card is required as payment method for all training requests using the DD Form 1556 valued at or below $25,000 and all medical services and Nonappropriated Fund payments valued at or below $2,500. 2.) The use of the purchase card is required to pay for goods and services purchased using standard contracting instruments, such as the Standard Form 1449 and the DD Form 1155, valued at or below $2,500. 3.) The use of the purchase card is required for all Military Interdepartmental Purchase Requests DD Form 448 valued at or below $2,500. 4.) Electronic commerce data interchange systems that result in cost effective payment process must be developed and submitted. 5.) DFAS shall provide monthly reports to PMO of the quantities and sources of commercial invoice payments at or below $2,500.

  Purchase Card Reengineering Implementation Memorandum #3: Streamlined Financial Management Procedures (USD(Comptroller))( June 30, 1998) Memorandum #3 is hereby amended, attached to this memo is a revised policy document. Changes to the issuance of March 27, 1997 are identified by a star preceding each changed paragraph or subparagraph. All other provisions of the Purchase Card Reengineering Implementation Memo #3 continue to apply.

  Department of Defense (DoD) Charge Card Management (Dep Sec Def) (March 9, 1998) The GSA awarded contracts under a master contract approach to six vendors for its charge card programs. Under this new acquisition strategy the (a)Comptroller will continue to be responsible for travel card policy (b) the Under Secretary of Defense is responsible for purchase card policy and oversight in coordination with the Comptroller (c) The Defense Energy Supply Center, is responsible for policy and program management.

• 1997
  
  

  Micro-Purchase Approval Authority (USD(Acquisition and Technology)) (September 26, 1997) Where activities do not have resident SES member, Flag Officer, or General Officer to make written determinations, the authority may be delegated to the level of the senior local commander or director.

  Reengineering Defense Transportation Documentation and Financial Processes Memo #15 (USD(Comptroller))( July 7, 1997) Defense transportation is reengineering the transportation documentation, billing, collection, and payment processes. Three major changes: 1)Fix the transportation account code process 2)Test the potential use IMPAC cards for paying airlift, sealift, domestic freight and express package bills 3)Eliminate the use of government bills of lading for domestic express carrier movements.

  Purchase Card Reengineering Implementation Memo #4 (USD(Comptroller))(May 5, 1997) DAPS has experienced delays in the past with billings and collections from customers for its printing services. In order to resolve these delays, the DAPS, in August 1996, started accepting the International Merchant Purchase Authorization Card (I.M.P.A.C.) from its DoD customers in payment for goods and services. Effective July 1, 1997, all orders for printing services placed by customers of the DAPS within the Continental United States (CONUS) and Hawaii are to be acquired using the I.M.P.A.C.

  Purchase Card Reengineering Implementation Memorandum #3: Streamlined Financial Management Procedures (USD(Comptroller))( March 27, 1997) The "Joint Report of the Purchase Card Financial Management Team and the Purchase Card Integrated Product Team to the Under Secretary of Defense (Acquisition and Technology and Comptroller)" proposed new practices for the advance reservations of funds, summary level recording of financial data, use of automated purchase card management and reconciliation systems, delayed dispute and payment certification at the approving official level. The attachment to this memorandum promulgates the policies necessary to establish these practices across the Department of Defense (DoD).

  Using the Purchase Card for Micro-Purchases (USD(A&T)) (March 20, 1997) Reminder that the Government commercial purchase card is the preferred method for micro-purchases. Contracts or purchase orders for micro-purchase of commercial items unless : 1)purchase cards are not accepted 2)the nature of the supply necessitates a contract or purchase order.

• 1996
  
  

  Purchase Card Reengineering Implementation Memorandum #2: Conversion of DoD Purchase Cards to New Contractor-Offered Platform (USD(Comptroller)) November 12, 1996) GSA is to initiate a modification of the RMBCS contract that enables the Department to migrate its card base to the CPS platform (and re-issue its 75,000 + cards) as soon as possible. We anticipate a phase implementation to the new platform--with the Department of the Army in the first wave--commencing no later than April 1, 1997,and ending in September 1997.

  Property Accountability Threshold (USD(C)) (May 28, 1996) Implementation of revised guidance that 1) raises the property accountability dollar threshold from the current level of $300 to a revised level equal to at least the dollar value of micropurchase threshold $2,500 and 2) modifies provisions of the "DoD Financial Management Regulation" related property.