GPC | The Contracting Education Academy

February 1, 2018 By AMK

Urban Myths: Are GSA’s prices fair and reasonable?

Over the years, some have questioned whether GSA Schedule prices are fair and reasonable, and such concerns have led to the General Services Administration launching efforts, such as Transactional Data Reporting and horizontal pricing analysis, to demonstrate that it is dedicated to offering its customers “competitive” (however defined) prices.

Now comes an MBA Professional Report published by the Naval Postgraduate School, which provides a business case analysis comparing GSA Advantage to Amazon Business from the standpoint of prices and processes. The study was completed in response to a request from the Air Force, which is considering entering into a pilot with Amazon Business in order to strategically source micro-purchases using an online platform.

The results of the study may be surprising in light of the recent legislative activity and discussions surrounding online acquisition options for government. They also might inform those who cast a skeptical eye toward the value and vitality of the GSA Schedules Program. The authors gathered data on the top 60 commercially available items purchased by the Air Force using government purchase cards (GPCs) and compared the acquisition outcomes on GSA Advantage and Amazon Business.

Keep reading this article at: https://federalnewsradio.com/commentary/2018/01/urban-myths-are-gsas-prices-fair-and-reasonable/

September 12, 2017 By AMK

GSA awards contract for $700 billion federal charge card program

The General Services Administration (GSA) last Tuesday (Sept. 5, 2017) announced that it has awarded two American banks with major contracts to manage the government’s next-generation charge card system.

GSA said that Citibank, N.A., and U.S. Bank would handle the implementation of SmartPay 3, the newest iteration of the federal charge card program. The contracts will facilitate a potential $700 billion in charge card expenditures and related payment transactions if the government exercises all of its extension options.

The GSA’s SmartPay program provides federal employees with chip-enabled charge cards, online accounts and other services that allow them to expense purchases, travel and fleet costs to their agencies. SmartPay 3 will replace the GSA’s current charge card program, SmartPay 2, when it expires on Nov. 29, 2018. The new contract runs through November 2021 with the option to extend for an additional 10 years. Agencies can now begin issuing task orders to contractors under SmartPay 3.

Keep reading this article at: http://www.govexec.com/technology/2017/09/gsa-awards-700b-contract-federal-charge-card-program/140750

July 27, 2017 By AMK

DoD raises micro-purchase threshold to $5,000

The Department of Defense (DoD) has issued a class deviation that raises the micro-purchase threshold from $3,500 to $5,000.

Class Deviation 2017-O0006, issued July 13, 2017 and effective immediately, allows authorized DoD buyers to make purchases of supplies and services up to $5,000 using streamlined procedures. Micro-purchases are primarily made through the use of Governmentwide purchase cards (GPC).

According to FAR 13,203, micro-purchases may be awarded without soliciting competitive quotations if the contracting officer or other authorized official considers the price to be reasonable.

The class deviation also raised the micro-purchase threshold to $10,000 for DoD’s basic research programs and for activities of DoD’s science and technology reinvention laboratories.

It is expected that these new purchasing thresholds will be incorporated into the Defense Federal Acquisition Regulation (DFARS) in the near future.

February 9, 2017 By AMK

GSA seeks proposals for huge governmentwide charge card contract

The General Services Administration (GSA) is seeking proposals for a massive new contract it will award this summer for its governmentwide charge card payment program.

The agency issued a request for proposals on Wednesday for GSA SmartPay 3, the next iteration of a nearly 20-year-old program that provides the government with purchase, travel, fleet, and integrated payment solutions. The contract runs through Nov. 28, 2021, with a potential extension to 2031.The current contract for GSA SmartPay 2 expires on Nov. 29, 2018.

The estimate total value for the SP3 contract is $700 billion, according to the RFP.

Keep reading this article at: http://www.govexec.com/management/2017/02/gsa-seeks-proposals-huge-governmentwide-charge-card-contract/135141/

October 10, 2016 By AMK

GSA’s IG says Pcard program is vulnerable to illegal, improper, or erroneous purchases

GSA may not identify illegal, improper, or erroneous purchases because the controls over the resolution of questionable purchase card transactions are not operating effectively.

pcard That’s one of the findings of the Office of Inspector General (OIG) of the General Services Administration in a report issued September 30, 2016. The OIG found that purchase card (Pcard) transactions are not properly and fully supported, reported, and approved to ensure the goods and services are business-related. The audit report also finds that GSA lacks controls to routinely monitor purchase card transactions to identify split transactions, which increases the risk that GSA cardholder violations of federal acquisition regulations concerning micro-purchase authority will go undetected.

The finding align with the purpose of the audit. The objectives of the OIG’s audit were to determine whether: 1) GSA’s purchase card program has controls in place to ensure purchase cardholders are in compliance with GSA’s purchase card policies, 2) GSA purchase card transactions are properly and fully supported, reported, and approved, and 3) GSA purchase card use above the single transaction limit of $3,000 complies with acquisition laws.

Based on the audit, the OIG recommended that:

GSA management enforce existing GSA operating policy (specifically, GSA Order OAS 4200.1A on the subject of Management and Use of the GSA SmartPay Purchase Card;
Ensure questionable charges are identified, reviewed, and resolved; and
Ensure that the Charge Card Management Division fully develops and implements its existing Pcard monitoring system, and performs routine tests of split transactions.

GSA management concurred with the audit report findings and recommendations.

The General Services Administration (GSA) last Tuesday (Sept. 5, 2017) announced that it has awarded two American banks with major contracts to manage the government’s next-generation charge card system.

The Department of Defense (DoD) has issued a class deviation that raises the micro-purchase threshold from $3,500 to $5,000.

GSA may not identify illegal, improper, or erroneous purchases because the controls over the resolution of questionable purchase card transactions are not operating effectively.

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