Feature/145 bulletins 29 to 38

[john-labbate]

#449

[JennaySDavis]

Purchase, Travel, Fleet, and Integrated

[JennaySDavis]

Use of GSA SmartPay® Charge Cards to Pay for Electric Vehicle Charging Pursuant to the “Charging Helps Agencies Realize General Efficiencies Act” or “CHARGE Act”).

[JennaySDavis]

February 13, 2024

[JennaySDavis]

February 13, 2024

[JennaySDavis]

This Smart Bulletin provides operational guidance regarding Public Law 116-160, the “Charging Helps Agencies Realize General Efficiencies Act “ or “CHARGE Act.” This statute requires the U.S. General Services Administration (GSA) to issue guidance on the use of charge cards to pay for charging federally owned or managed Electric motor Vehicles (EVs) used for official Government business at commercial charging stations. Additionally, this bulletin provides guidance on the use of GSA SmartPay payment solutions for payment of rental car EV charging related to travel on official business. Note that unless otherwise indicated, the mention of specific commercial charging network names in this bulletin is for information purposes only, is not intended as an endorsement of any kind, and does not indicate a contractual relationship with GSA.

[JennaySDavis]

Participating agencies/organizations use GSA SmartPay charge cards to obtain approximately $30 billion in products and services annually in support of their missions through approximately 100 million purchase, travel, and fleet transactions. The CHARGE Act emphasizes the existing ability for agencies/organizations to use GSA SmartPay charge cards to pay for charging services for EVs at commercial charging facilities. At the time of this guidance being issued, GSA SmartPay contractor bank charge cards, including WEX and Voyager fleet cards, can be used to pay for charging services at ChargePoint, Inc. commercial charging stations. Other charging station networks currently only accept Visa & MasterCard branded cards through their respective payment apps and terminals. Certain EVgo chargers do include card readers for walk-up payments, but not all. As the electric vehicle charging industry continues to expand, the Center for Charge Card Management (CCCM) and our GSA SmartPay contractor banks will pursue additional relationships with charging station providers to increase access and acceptance at additional charging networks for federal agencies. Use of GSA SmartPay charge cards for both per transaction and charging subscriptions is permissible and consistent with agency policy, applicable charge card spending limit(s), the Federal Acquisition Regulation, and other applicable rules/regulations.

[JennaySDavis]

Each Federal agency may, for Government-owned or managed EVs used in accordance with 31 U.S.C 1344, “Passenger Carrier Use,” (1) allow for the vehicles to be charged at a commercial EV charging station and (2) pay for that charging with a GSA SmartPay charge card. The type of GSA SmartPay charge card to be used (purchase, travel, integrated, and/or fleet) to complete the charging transaction must comply with agency policy. GSA SmartPay charge cards may also be used to pay for commercial rental car EV charging when an employee is in official travel status. Additional operational considerations for use of charge cards pursuant to the CHARGE Act are provided below:

[JennaySDavis]

To enable the WEX fleet card for use at ChargePoint stations, the following options are available:
For agencies with at least one owned ChargePoint station, WEX accounts can be linked to ChargePoint RFIDs in the data portal or through the ChargePoint website. This action must be taken by the agency Fleet Manager(s).
For agencies/drivers that want to charge at public ChargePoint stations, contact GSA Fleet’s Alternative Fuel Vehicle Team at [email protected] and provide EV tag number(s) and delivery location(s). GSA Fleet will provide the driver with ChargePoint Radio Frequency IDentification (RFID) card(s) for the vehicle(s) linked to the vehicle’s associated GSA SmartPay fleet charge card. GSA Fleet EV commercial charging information resources includes charging station purchasing options and charging procedures at gsa.gov/evse.
If an agency desires to use additional commercial charging station vendors beyond ChargePoint for GSA Fleet leased EVs, it must first contact the GSA Fleet Alternative Fuel Vehicle Team at [email protected].

[JennaySDavis]

Agencies are not limited to the use of ChargePoint charging stations for EV commercial charging of agency-owned assets. However, as stated above, Currently, ChargePoint is one of the few commercial charging vendors at the time of the publication of this bulletin accepting WEX and Voyager. For agencies with at least one owned ChargePoint station, a Fleet account may be set up with ChargePoint through their app or website. Further information on account setup for Fleet Card Managers can be found here.
Voyager-specific account setup information can be found on the ChargePoint site under the Voyager Fleet Card Integration FAQs.
Note that most commercial charging stations do not have credit card terminals to swipe or “dip” cards, but some EVgo charges do offer charge card terminals/readers. An account will first need to be established with the commercial charging network, typically through an app or website. The GSA SmartPay card account number and related information would be needed to establish the account. Most commercial charging networks offer payments on an individual and subscription basis. Often, an RFID token (“fob”) or card is required for use at the charging station to enable the transaction.
RFID cards/keyfobs for use at commercial EV charging stations are available on GSA Advantage or the open market where not available through GSA.
Agencies/organizations should be sure to confirm RFID/key fob acceptance with the desired networks before purchasing.

[JennaySDavis]

If consistent with agency policy, GSA SmartPay travel charge cards may be used to pay for charging EVs rented while an employee is on TDY.
Note that, as mentioned above, the employee may need to establish an account with the charging station vendor well in advance of their trip in order to receive the RFID card/fob.
Also, rental car agreements should be consulted to determine if the rental car company requires the use of certain commercial charging networks.

[JennaySDavis]

This Smart Bulletin is effective upon issuance and provides operational guidance primarily focused on micro-purchasing in relation to the requirements of Public Law 117-328 Division R, the “No TikTok on Government Devices Act” of the Consolidated Appropriations Act of 2023, OMB Memo M-23-13[PDF, 4 pages], “No TikTok on Government Devices Implementation Guidance,” and Federal Acquisition Circular (FAC) 2023-04, Federal Acquisition Regulation (FAR) Case 2023-010, subject: “Prohibition on a ByteDance Covered Application.”
Public Law 117-328 at Division R (“the Act”) requires the Director of the Office of Management and Budget in consultation with the Administrator of General Services, the Director of the Cybersecurity and Infrastructure Security Agency, the Director of National Intelligence, and the Secretary of Defense to develop standards and guidelines for agencies which require the removal of TikTok software installed on Federal Information Technology (IT). TikTok is owned and operated by ByteDance Limited, a Chinese company.
OMB Memo M-23-13 mainly addresses requirements for agencies to identify the use of TikTok, remove any instances of its use either within an agency or by agency contractors, ensure contracts requiring the use of IT do not involve the use of this prohibited technology, and provide a timeline for these actions to be completed, assuming no exception for authorized use is applicable.
FAR case 2023-010 is an interim final rule that became effective upon the June 2, 2023, date of publication. In summary, it addresses contract clause requirements to implement the TikTok ban on formal contracts. It also states that the prohibition is applicable to actions within the simplified acquisition threshold, including micro-purchases.

[JennaySDavis]

Every year, organizations participating in the GSA SmartPay program use purchase cards to obtain approximately $23 billion in products and services in support of their missions through approximately 19 million purchase transactions.
The Act addresses TikTok and any successor application or service that is developed or provided by ByteDance Limited and prohibits their use by “executive agencies” as defined in 41 U.S.C § 133.2 and in all IT as defined in 40 U.S.C. § 11101(6). Exceptions to this prohibition are addressed in OMB memo M-23-13.
Purchases made at or below the micro-purchase threshold are subject to the Act unless an exception is granted in accordance with the OMB memo (i.e., for national security, law enforcement, or security research activities).
This prohibition is narrow (e.g., affecting social media or advertising services; purchases of services that require the use of IT on which TikTok may be present), and it is not anticipated to affect many purchase cardholder micro-purchase transactions.
It is important to note that the definition of IT used for this ban encompasses not only IT owned or operated by agencies but also “used by a contractor under a contract with the executive agency that requires the use” of that IT, whether expressly or “to a significant extent in the performance of a service or the furnishing of a product” (M-23-13 at 1-2). That definition does not, however, “include any equipment acquired by a federal contractor incidental to a federal contract.”

[JennaySDavis]

GSA SmartPay purchase cards shall not be used for purchases that require the use of TikTok or require vendor use of IT that contains TikTok unless an exception is granted in accordance with Office of Management and Budget Memorandum M-23-13. Based on a Center for Charge Card Management review, agency purchase cardholders rarely acquire media services or make purchases through TikTok. As a result, very few purchase card transactions (primarily social media advertising and advertising services) are expected to be impacted by this prohibition.
However, agencies which routinely purchase social media and advertising services within the micro-purchase threshold using a purchase card may want to consider issuing a policy placing limits on buying these services on the open market to help manage this risk. As a best practice, agencies may also consider issuing policy emphasizing the security benefits of using existing government online shopping sites as the first source of supply for high-risk products and services, such as GSA Advantage!, Fed Mall, GSA Global Supply, category-managed solutions, agency-specific vehicles, etc. The expectation is that the cognizant contracting office will ensure the required TikTok prohibition is incorporated into the contracts underlying these offerings.
Note that this ban is different from the Section 889 ”covered technology” prohibition, as follows:
No contractor representations are required;
The prohibition is narrowly focused on the use of a single “app” (TikTok) in the performance of government work and
The prohibition applies to devices used in the performance of government work,
regardless of ownership. But it does not apply to personally-owned cell phones not used in the performance of a government contract or work or to technology incidental to the performance of such work.
Note that the statutory basis for this ban is separate and distinct from the Section 889 covered technology prohibition. Searching for a TikTok representation in the System for Award Management (SAM) or related SAM search tools is not relevant. Similarly, neither TikTok nor ByteDance Limited currently appears on the Excluded Parties list in SAM.

[JennaySDavis]

The purpose of this Smart Bulletin is to provide clarity for customer agencies with task orders awarded under the SP3 master contracts. If any government-authorized end user clicks on an “I agree” click box or other comparable mechanisms within the servicing bank system(s), this action may not automatically bind the government to the agreement. This includes any “I agree” or similar text that might be found in card management systems, including, but not limited to, the Electronic Access Systems of the banks (US Bank and Citibank) and other systems such as MasterCard’s Insights on Demand (IOD) system and Visa’s Intellilink system.

[JennaySDavis]

The Department of Defense (DoD), General Service Administration (GSA), and the National Aeronautics and Space Administration (NASA) published an interim rule in the Federal Register at78 FR 37686 on June 21, 2013, to implement the Department of Justice (DOJ) Office of Legal Counsel (OLC) opinion, entitled “Memorandum for Barbara S. Fredericks, Assistant General Counsel for Administration, United States Department of Commerce,” which opined that the Anti-Deficiency Act (ADA) (31 U.S.C. 1341) is violated when a Government contracting officer or other employee with authority to bind the Government (emphasis added) agrees, without statutory authorization or other exception, to an open-ended, unrestricted indemnification clause.
On April 4, 2013, the Office of Management and Budget (OMB) issued guidance outlining a series of management actions to ensure agencies act in compliance with the ADA and in accordance with OLC’s opinion. This guidance clarifies that the inclusion of an open-ended indemnification clause in an End User License Agreement (EULA), online Terms of Service (TOS), or other agreement is not binding on the Government unless expressly authorized by statute and specifically authorized under applicable agency regulations and procedures, and shall be deemed to be stricken from the EULA, TOS, or similar legal instrument or agreement.
The GSA SmartPay 3 Master Contract includes Federal Acquisition Regulation (FAR) Clause 52.212-4, entitled “Contract Terms and Conditions - Commercial Items.” In addition, GSA SmartPay Master Contract Modification number 19 added GSA Acquisition Manual (GSAM) clause 552.232-39, entitled “Unenforceability of Unauthorized Obligations (FEB 2018) (DEVIATION FAR 52.232-39)” and GSAM Clause 552.232-78, “Commercial Supplier Agreements–Unenforceable.”
These GSA SmartPay 3 Master Contract clauses address situations when there is an unrestricted, open-ended indemnification provision in EULA, TOS, or similar legal instruments or agreements. The clauses clarify that if an EULA, TOS, or similar legal instrument or agreement includes a requirement for the Government to indemnify the contractor or any person or entity for damages, costs, fees, or any other loss or liability that would create an Anti-Deficiency Act violation, such requirements are unenforceable against the Government, and are deemed to be stricken from the agreement to prevent violations of the Anti-Deficiency Act.
It is important to note that the GSA SmartPay 3 Master Contract clauses referenced above are not intended to restrict the contractor bank from requiring government end users to sign account holder applications and agree to the submission of applications and/or account holder agreements. Government end users are still required to agree to the terms of these documents so long as they comply with the GSA SmartPay 3 master contracts and do not create Anti-Deficiency violations.
The following links provide additional information on applicable clauses and guidance pertaining to the Unenforceability of Unauthorized Obligations:
GSAM Clause 552.232-39, “Unenforceability of Unauthorized Obligations”:https://www.acquisition.gov/gsam/552.232-39
GSAM Clause 552.232-78, “Commercial Supplier Agreements–Unenforceable”:https://www.acquisition.gov/gsam/552.232-78

[JennaySDavis]

This Smart Buletin is provided to AOPCs in responding to questions from cardholders regarding the applicability of contractor bank commercial EULAs, TOS, and other “click to agree ” agreements to Federal government accounts and cardholders.
It is important for agencies to review their current card policies and guidance to ensure that they are updated to reflect the information contained in this Smart Bulletin.

[JennaySDavis]

The purpose of this GSA SmartPay Smart Bulletin is to provide agencies/organizations that use the GSA SmartPay purchase business line for transit benefit accounts with implementing guidance on submitting statistical and narrative reports as required in Chapter 5.3 of Office of Management and Budget (OMB) Circular A-123, Appendix B, entitled “A Risk Framework for Government Charge Card Programs,” dated August 27, 2019. This Smart Bulletin includes: (1) reporting templates for agency submission of chapter 5.3 reports (2) reporting expectations for FY2020 and beyond.

[JennaySDavis]

OMB memorandum M-17-26, dated June 25, 2017, discontinued agency/organization purchase and travel charge card statistical reporting to OMB. However, OMB in that memorandum also required agencies to maintain that statistical reporting information for their own use in the management of their charge card programs. It further designated GSA’s Center for Charge Card Management (CCCM) as the central repository for the agency charge card statistical data, which was previously required to be submitted to OMB. CCCM will post this statistical and narrative data on GSA Interact for agencies/organizations subject to the Chief Financial Officers’ (CFO) Act. CCCM may also post information pertaining to other GSA SmartPay participating agencies/organizations as well. CCCM will work with the GSA SmartPay contractor banks to obtain agency/organization statistical reporting data in an electronic, automated manner to the extent possible. The balance of the statistical data CCCM is unable to directly obtain from contractor banks will need to be provided by the CFO Act agencies/organizations (and other entities as required) to CCCM. CCCM will use GSA Interact, or a successor system, as the central repository for these reports. The Circular also states that CCCM “may issue further guidance on both narrative and statistical reporting through the GSA Smart Bulletin process.” This bulletin constitutes that further guidance

[JennaySDavis]

The requested information in the template attached below shall be submitted, at a minimum, on an annual fiscal year basis. Agency-provided information shall be furnished to CCCM no later than 90 calendar days after the end of the Fiscal Year (FY). The due date for agency/organization submission of FY2020 agency statistical reporting to CCCM is January 31, 2021.
The Statistical Reporting requirement applies to all business lines under the GSA SmartPay program; however, the following guidance is for transit benefit issuing programs only. All other agencies should see Smart Bulletin No.030 for reporting guidance. Transit benefit programs must report the following items for each business line:
Count of accounts, as defined by GSA;
Total number of accounts across the charge card program as compared to the prior reporting period;
Total charge card dollars spent; and
Total refunds earned.
Specific requirements for the purchase cards business line are as follows:
Purchase cards used for transit benefits
Number of transit benefit accounts with limits over the statutory limit;
Ratio of the number of confirmed violations reported pursuant to P.L. 112-194 as compared to the number of valid transactions within the reporting period (GSA’s Center for Charge Card Management will obtain confirmed violation information from OMB/OFFM).

[JennaySDavis]

For agencies/organizations subject to the CFO Act, the following information should be updated annually on a fiscal year basis and provided to CCCM no later than 90 calendar days after the end of each fiscal year:
The date(s) of the most recent and next scheduled independent review(s) (e.g., OIG audits and risk assessments) for all agency charge card programs;
A description of the current process for monitoring transit benefit use, including what reports the agency reviews and what actions are taken when a problem is discovered;
A description of any best practices the agency employs in transit card management and
Any additional information regarding agency management and use of the purchase card for transit benefit programs, including innovative applications to streamline business processes, increased revenue generation from expanded use for payments, and creative internal controls which maintain program integrity, flexibility, and ease of use.
For FY2020 reports and beyond, agency narrative reports are due to CCCM NLT 90 calendar days after the end of the fiscal year requirement as specified in the current version of OMB Circular A-123, Appendix B (January 31).

[JennaySDavis]

Transit benefit programs shall utilize the reporting templates attached below to submit the required agency/organization statistical and narrative reporting data. Program reports should be e-mailed to [email protected] using the following file naming convention: AgencyName_OMB_A123_FiscalYear (e.g., GeneralServicesAdministration_OMB_A123_2019). Further instructions for report submission are provided in the templates. In the event any sensitive data is to be provided in these reports, agencies/organizations are reminded to encrypt the files and take any other security precautions as required by agency/organization policy.

[JennaySDavis]

The purpose of this Smart Bulletin is to detail the process which agencies serviced by JPM under SP2 should follow when requesting historical JPM SP2 data from the GSA Center for Charge Card Management (CCCM). This Smart Bulletin includes information on how to request JPM SP2 data from CCCM, the duration that data will be available, and the expected turnaround time for data requests.

[JennaySDavis]

PM was one of the three contractor banks supporting the SP2 program. The JPM SP2 contract was originally scheduled to end on November 30, 2018, but was extended twice. The last contract extension expired in May 2019. Section C.3.4, “Record Retention and Retrieval” of the GSA SP2 master contract, requires JPM to comply with the following record retention and retrieval requirements:
In addition to the record retention requirements of FAR 4.703, the Contractor shall be the Government’s agent for document repository as it relates to all transactions under the card program(s). The Contractor shall maintain electronic records of all transactions that exceed $25,000 for a period of 6 years and 3 months after final payment and for all transactions of less than $25,000 for a period of 3 years after final payment. Final payment is defined as the final payment for the particular charge under each agency’s/organization’s task order. The Contractor shall segregate this transaction information (i.e., transactions exceeding $25,000 and less than $25,000). Upon written request of the GSA Contracting Officer, the ordering Contracting Officer, the A/OPC, or the Internal Revenue Service with A/OPC knowledge and approval, the Contractor shall provide the requested information in an electronic format within 30 calendar days, unless otherwise specified, at no additional cost to the Government. In addition, Contractors shall provide online access to data for a minimum of 18 months after the transaction occurs.
Since JPM SP2 contract performance period ended and there is no longer a valid Authorization to Operate (ATO) in place, JPM was required to take their SP2 Electronic Access System (EAS), also known as “PaymentNet,” offline, resulting in JPM customer agencies under SP2 no longer being able to access PaymentNet data after July 2019. In addition, the Federal Information Security Management Act (FISMA) and GSA’s information technology security requirements impose further restrictions which do not allow the SP2 data to reside in JPM’s system without a valid ATO. As a result, GSA and JPM subsequently agreed that JPM would provide CCCM with relevant GSA SP2 data. Following the transmission of an SP2 data extract to GSA, JPM will move all SP2 data into long-term storage, which can only be accessed pursuant to legal and regulatory requirements. On May 6, 2026, JPM will purge all SP2 data from their systems.
Starting July 29, 2020, all requests for JPM SP2 data will be handled by CCCM. When requesting data from CCCM, agencies shall specify the following:
Purpose of the data request
Reporting period (e.g., fiscal year(s), quarter(s), month(s), etc.)
Desired data elements
Preferred file type for delivery (options include: .xlsx/.xls, .csv, or .txt)
When agencies submit proper data requests, CCCM will provide the requested information within 30 calendar days. Agencies can expect the data to be delivered in an email attachment (if the file size is 25MB or less) via the [email protected] email address. If the file size is larger than 25MB, CCCM will discuss with the requesting agency on alternate delivery method that would be acceptable to both parties. Please note that the data will be encrypted should it contain sensitive information.

[JennaySDavis]

Agencies requiring JPM SP2 data should submit requests to CCCM through the following email: [email protected].
Agencies should review their current card policies and guidance and update based on additional purchase card utilization opportunities available under the GSA MAS program.

[JennaySDavis]

Purchase, Travel, Fleet, and Integrated

[JennaySDavis]

Purchase, Travel, Fleet, and Integrated

[JennaySDavis]

This Smart Bulletin, which augments Smart Bulletin 029 effective August 13, 2019, provides guidance to agencies implementing section 889(a)(1)(B) (“Part B”) of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019 (Pub. L. 115-232), which prohibits Federal agencies from purchasing products or services from entities that use covered equipment or services as a substantial or essential component of any system, or as critical technology as part of any system, regardless of whether that usage is in performance of work under Federal contract. This prohibition became effective on August 13, 2020. This prohibition applies to all contracts, regardless of dollar amount, including micro-purchases on charge cards as well as formal contracting actions. (The full text of the related Federal Acquisition Regulation (FAR) interim rule on section 889 can be viewed at: https://www.regulations.gov/document?D=FAR-2019-0009-0003.)
The “Part A” prohibition (Sec 889(a)(1)(A)), prohibiting the purchase of equipment/services containing covered technology, went into effect on August 13, 2019, and is discussed in Smart Bulletin 029. As of the date of this Smart Bulletin, “covered equipment/services” include those provided or produced by the following entities and their subsidiaries and affiliates:
Huawei Technologies Company
ZTE Corporation
Hytera Communications Corp
Hangzhou Digital Hikvision Technology Company
Dahua Technology Company
Agencies are required to develop policies regarding their use of charge cards in the context of both Section 889 prohibitions (Parts A and B). This Smart Bulletin provides operational guidance and information on issues agencies participating in the GSA SmartPay program may desire to consider as they develop those policies, including section 889 implications for all business lines (purchase, travel, and fleet cards).
This Smart Bulletin uses summary language to address complex issues that may develop under certain purchasing circumstances. When such circumstances exist or are anticipated to arise related to a planned purchase, cardholders and card managers are encouraged to consult with agency acquisition, information technology, and/or supply chain risk management policy officials in accordance with agency policy.
This Smart Bulletin does not address section 889-related requirements related to formal contracting procedures. Instead, it focuses on section 889 implications with regard to purchase card micro-purchases, travel, and fleet card transactions. Because integrated cards combine these account types, they are not separately addressed.

[JennaySDavis]

GSA SmartPay charge cards are used to obtain over $30 billion in products and services in support of agency missions through approximately 100 million purchase, travel, and fleet transactions each fiscal year. Approximately 86% of these transactions are conducted online. Most of these transitions are conducted by non-procurement personnel. In FY19, purchase card transactions alone totaled $22 billion, addressing a wide range of products and services. In that same year, approximately $1.2 billion of these purchases (5.7%) occurred in electronics-related Merchant Category Codes (MCCs). This information is meant to provide insight into the relative level of risk and does not capture the full scope of electronic purchases, nor does it capture purchases from merchants whose systems may use equipment/services that are now covered equipment/services. Furthermore, a review of charge card purchase data does not indicate any direct purchases from the five specific sources listed above. FY19 travel card spend totaled approximately $9 billion through 44 million transactions with a limited number of airlines and rental car agencies. Hotel spend is much more widespread. There are more than 3 million travel accounts. Fleet card FY19 spend was approximately $2 billion through almost 31 million transactions, most of which are for fuel for government vehicles. These fueling transactions take place through a large number of independent or franchised service stations.

[JennaySDavis]

The Office of Management and Budget (OMB) Office of Federal Procurement Policy (OFPP) requires agencies to develop their own policies addressing charge card compliance with section 889 (Parts A and B). Attachment 1 to this Smart Bulletin provides information, by card type, that agencies may want to consider as they develop their card use policies in relation to section 889. Agency cardholder or card manager questions regarding the application of section 889 to a particular purchase should be directed to appropriate agency acquisition, information technology, and/or supply chain risk management staff. Other questions or comments regarding this Smart Bulletin should be directed by agency headquarters A/OPCs to CCCM via email to: [email protected].

[JennaySDavis]

In a charge card, consumer, or commercial transaction, the merchant’s bank pays the interchange fee to the issuing bank. The merchant’s bank passes along the cost of the interchange fee to the merchant, and the merchant may factor in the cost of the association’s interchange fee in pricing for goods and services provided.
The interchange fee varies and is influenced by factors, which may include but are not limited to the type of merchant, region of the world, type of transaction, payment solution used, and amount transacted.
The increase in the interchange fee may be nominal and will not impact services currently provided or negotiated refund rates currently in effect for the GSA SmartPay 3 Program.

[JennaySDavis]

The purpose of this GSA SmartPay Smart Bulletin is to provide implementation guidance, updates and clarifications relating to portions of OMB Circular A-123, Appendix B, ‘A Risk Framework for Charge Card Programs (“the Circular”). These revisions were coordinated with the Office of Management and Budget Office of Federal Financial Management.

[JennaySDavis]

This Smart Bulletin addresses issues regarding creditworthiness, sustainability, environmental sustainability, the definition of terms, and other matters.

[JennaySDavis]

Section 6.4 implementing guidance is updated as follows:
If it is not possible to obtain a card applicant’s credit score, the agency may issue a “restricted” charge card (as defined in section 6.3.2.,” First time travel charge card applicants with a credit score of less than 660”) to a first time applicant, but the agency must ensure it first conducts an alternative creditworthiness assessment to determine whether the individual possesses a satisfactory credit history. Specifically, the agency must review the applicant’s most recent Standard Form (SF) 85P, Questionnaire for Public Trust Positions, Section 22, or SF 86, Section 26, or use a similar vehicle containing the same type of questions as in the forms and sections noted and use the information provided to assess creditworthiness. In either case, the vehicle used must not be older than one year.
Note: Neither the SF 86 nor SF 26 is to be shared with your servicing contractor bank.
Section 6.11 is clarified as follows:
The reference to the “OPM Center for Federal Investigative Services (FIS)” is hereby deleted and replaced with “Defense Counterintelligence and Security Agency (DCSA).”
Section 6.12 is clarified as follows:
The reference to GSA’s Financial and Business Solutions (FABS) Schedule contractors and its associated footnote is hereby deleted and replaced with “PS-MAS.” More information on PS-MAS (Professional Services – Multiple Award Schedule) in this context can be found at: gsa.gov/psschedules, under “professional services/identity protection services.”

[JennaySDavis]

Due to the issuance of Executive Order (EO) 13834, “Efficient Federal Operations,” dated May 17, 2018, and the revocation of EO 13693, “Planning for Federal Sustainability in the Next Decade,” dated March 19, 2015, Section 10.2 is deleted in its entirety are replaced with the following:
EO 13834 affirms that it is the policy of the United States that agencies meet energy and environmental performance statutory requirements in a manner that increases efficiency, optimizes performance, eliminates unnecessary use of resources, and protects the environment. In implementing this policy, agencies are tasked to prioritize actions that reduce waste, cut costs, enhance the resilience of Federal infrastructure and operations, and enable more effective accomplishment of its mission. EO 13834 may be viewed at: https://www.fedcenter.gov/programs/eo13834.
To assist agencies in meeting statutory and optional sustainable purchasing requirements, GSA offers an online Green Procurement Compilation. The Green Procurement Compilation is a comprehensive green purchasing resource designed for federal contracting personnel and program managers. It consolidates and organizes information from federal environmental programs in one place, saving you from visiting multiple websites.
The Green Procurement Compilation allows users to:
Quickly identify federal green purchasing requirements for the products and services;
Search by keyword or browse by category to find products and services;
Determine procurement options available to federal buyers, including applicable GSA Multiple Award Schedules (MAS), Federal Strategic Sourcing Initiative (FSSI) solutions, and GSA Global Supply;
Learn more about federal environmental programs, such as WaterSense and Bio-Preferred, and
Discover optional environmental programs and additional procurement guidance that will help meet sustainability goals.
The green products portal identifies all product types covered by mandatory and non-mandatory federal environmental programs, including:
Bio-Preferred;
Comprehensive Procurement Guidelines;
Safer Choice;
Energy Star;
EPEAT;
Federal Energy Management Program (FEMP);
Significant New Alternatives Policy (SNAP); and
WaterSense.
In order to determine which requirements apply to the products planned for purchase, the portal allows users to search or browse for the product.
The services portal contains green purchasing guidance for services, including:
Cafeteria & Food Services;
Electronic Leasing;
Fleet Maintenance;
Janitorial Services;
Landscaping Services;
Laundry Services;
Meeting & Conference Services;
Pest Management; and
Transportation Services.

[JennaySDavis]

For consistency, the following existing definitions contained in both of these attachments are deleted and replaced with the following:
A.1 External Fraud - Any felonious act of corruption or attempt to cheat the Government or corrupt the Government’s agents by someone other than Government officials. Otherwise known as third-party fraud.
A.1 Misuse - Unintentional use of the purchase, travel, fleet, and/or integrated charge card in violation of the FAR, DFARs, FTR, Agency Supplements, or Agency Policy/Procedures. These actions are the result of ignorance and/or carelessness, lacking intent, to include honest mistakes..

[JennaySDavis]

The Department of Defense, General Services Administration, and the National Aeronautics and Space Administration issued an interim rule amending the FAR to implement section 889(a)(1)(A) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232).
Effective August 13, 2019, the interim rule revises the FAR and prohibits agencies from procuring, obtaining, extending, or renewing a contract (including micro-purchases) for equipment, systems, or services that use covered telecommunications and/or video surveillance equipment or services. This includes items that are substantial or essential to systems or are critical to any system.

[JennaySDavis]

The interim FAR rule adopts the definition of critical technologies included in the Foreign Investment Risk Review Modernization Act of 2018 and amends sections of the FAR designed to ensure the United States is protected from certain risks regarding foreign actors.
The Federal Government is prohibited from acquiring any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system or as critical technology as part of any system. This prohibition on acquiring covered telecommunications applies to acquisitions at all dollar levels, including micro-purchases, unless a waiver is granted or an exception applies.

[JennaySDavis]

Agency headquarters A/OPCs shall ensure all personnel involved in purchase card use and management are aware of this new statutory prohibition on acquiring covered telecommunications. The attached Frequently Asked Questions (FAQs) developed by the Center for Charge Card Management (CCCM) are provided to assist in this effort. As noted in the FAQs:
To assist cardholders and card managers, a list of the sources (“vendors”) of the covered telecommunications equipment and/or services is posted on the GSA SmartPay® website at https://smartpay.gsa.gov/content/prohibited-vendor-list.
GSA CCCM online purchase cardholder and A/OPC training was updated to reflect the prohibition on acquiring covered telecommunications.
Agency cardholder or card manager questions regarding the propriety of a particular telecommunications purchase should be directed to the appropriate agency acquisition policy staff. Other questions or comments regarding this Smart Bulletin should be directed to CCCM through email at: [email protected].

[JennaySDavis]

August 26, 2019
Background: Federal Acquisition Regulation (FAR) case 2018-017 is an interim rule implementing Section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (NDAA), which became effective on August 13, 2019. It prohibits the Federal Government from procuring or obtaining “any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology of any system.”1 “Covered telecommunications or services” means:
Telecommunications equipment produced by Huawei Technologies Company, ZTE Corporation, or any of their subsidiaries or affiliates;
For the purpose of public safety, security of Government facilities, physical security surveillance of critical infrastructure, and other national security procedures, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company, or any subsidiary or affiliate of such entities;
Telecommunications or video surveillance services provided by such entities or using such equipment;
Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country, which is defined as the People’s Republic of China.
In addition to the purchase prohibition, the FAR case requires contractors to provide a representation addressing whether or not they are providing covered telecommunications under contracts and orders with the Federal government and to report if they identify covered telecommunications equipment or services during contract performance.
FAQ 1: Are cardholders able to use micro-purchase authority to acquire covered telecommunications equipment or services?
Answer 1: No, FAR 13.201 now prohibits cardholders from procuring or obtaining any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system or as critical technology as part of any system unless an exception applies or a waiver is granted (see the exception and waiver FAQs, below). Additionally, cardholders must adhere to the policy issued by their agency regarding prohibited purchases.
FAQ 2: The provision at FAR 52.204-24 requires contractors to provide a representation stating whether or not they are providing covered telecommunications to the Federal government. Are purchase cardholders required to obtain a representation when making a micro-purchase?
Answer 2: No, micro-purchases generally do not require provisions or clauses, and therefore, cardholders are not required to obtain the representation provision at FAR 52.204-24. However, independent of whether or not a representation is required (see FAQ 5 below), cardholders are prohibited from procuring or obtaining any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. Cardholders shall exercise caution to ensure such purchases are not made. (See also the exception and waiver FAQs below.)
FAQ 3: When making purchases through Federal Government buying sites such as GSA Advantage! or through Government-wide contracts or GSA/VA schedules within the micro-purchase threshold, are cardholders required to obtain the contractor representation described above in FAQ #3?
Answer 3: No, as stated in the answer to FAQ #3, because micro-purchases generally do not require provisions or clauses, cardholders are not required to obtain the representation provision at FAR 52.204-24. (But as noted in the response to FAQ 5, an agency could opt to require such representations). GSA’s Government-wide contracts, such as GSA schedules, are required to obtain representation at the contract level, which provides some level of assurance that covered telecommunications equipment and services will not be sold on that contract vehicle. Regardless of whether or not a representation is obtained, cardholders are prohibited from procuring or obtaining equipment that uses covered telecommunications equipment or services as a substantial or essential component of any system or as critical technology as part of any system and shall exercise caution to ensure that such purchases are not made.
FAQ 4: What steps should agencies take to assist cardholders in complying with this prohibition?
Answer 4: Agencies should first ensure cardholders, approving officials, and Agency/Organization Program Coordinators (A/OPCs) are aware of this prohibition, as well as any agency-specific policy pertaining to it. As noted below, the GSA SmartPay online purchase card A/OPC and cardholder training is updated to reflect the prohibition, and a list of the covered telecommunications equipment and services is posted on the GSA SmartPay website for cardholder and card manager reference. Agencies may wish to consider imposing additional precautions to ensure that purchase card transactions do not violate the prohibition. As example, agencies may require the vendor representation on any purchase that potentially includes information or communication technology or may consider imposing a temporary ban on using the GSA SmartPay purchase card to acquire telecommunications equipment or services until such time more specific information on covered items and services becomes available (specific make/model, service providers, subsidiaries, etc). Such precautions are within the agencies’ discretion.2
FAQ 5: What action(s) should be taken if a vendor representation is obtained from a vendor indicating that they intend to provide a product incorporating covered telecommunications?
Answer 5: The cardholder should take action in accordance with agency policy.3
FAQ 6: Do agencies that manage their own task orders under the GSA SmartPay 3 master contracts need to modify them?
Answer 6: Yes, the revisions to the FAR require existing task orders to include the reporting clause at FAR 52.204-25, “Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment,” when they are modified to extend their periods of performance, including the exercise of options. To sufficiently mitigate the risk associated with possibly procuring or obtaining covered telecommunications equipment or services, however, agencies may want to modify existing task orders as soon as practicable rather than waiting for the exercise of options.
FAQ 7: Will the GSA SmartPay online purchase cardholder and Agency/Organization Program Coordinator (A/OPC) training on the GSA SmartPay website be revised to address the prohibition?
Answer 7: Yes, the training was updated the week of August 12, 2019
FAQ 8: Is there a waiver process for acquiring covered telecommunications?
Answer 8: Yes, prohibition waiver processes are addressed in the new FAR 4.2104. Waivers may only be granted by the head (or designee) of an executive agency and only on a one-time basis, not to exceed two years. The waiver is issued for the Federal Government entity level (e.g., requirements office, contracting office) that requests it. Note that waivers must also be reported to Congress. Consult FAR 4.2104 for further information.
FAQ 9: Are there any exceptions to the prohibition?
Answer 9: Yes. The ban applies only to any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system or as critical technology as part of any system. Further, the statute and FAR rule specifically state that agencies are not prohibited from procuring a service that connects to the facilities of a third party, such as backhaul, roaming, or interconnection arrangements. Agencies are also not prohibited from procuring telecommunications equipment that cannot route or redirect user data traffic or permit visibility into any user data or packets that such equipment transmits or otherwise handles. Please note that additional FAQ language clarifying these exceptions is under review and is expected to be added later.
FAQ 10: What if cardholders or A/OPCs have questions about whether a purchase card purchase of telecommunications equipment or services is appropriate?
Answer 10: Address such questions to appropriate agency acquisition policy officials for further guidance prior to making any purchase of concern.

1 The language provided above is summarized. The verbatim statutory procurement prohibition language is as follows: (a) Prohibition on Use or Procurement -- (1) The head of an executive agency may not — (A) procure or obtain or extend or renew a contract to procure or obtain any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system; or (B) enter into a contract (or extend or renew a contract) with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. (2) Nothing in paragraph (1) shall be construed to — (A) prohibit the head of an executive agency from procuring with an entity to provide a service that connects to the facilities of a third party, such as backhaul, roaming, or interconnection arrangements; or (B) cover telecommunications equipment that cannot route or redirect user data traffic or permit visibility into any user data or packets that such equipment transmits or otherwise handles.
2 Note that shifting transactions from the purchase card to other acquisition methods will have workload and other implications.
3 As an example, GSA internal policy for Contracting Officers is as follows from the GSA Acquisition Manual (GSAM) 504.7005: Post-award procedures. (a) Supply Chain Event Report. (1) If a prohibited article is discovered within the supply chain of a procurement, the contracting officer shall immediately submit a supply chain event report using the online form on the GSA Acquisition Portal (http://insite.gsa.gov/ scrm) to ensure appropriate service and staff offices within GSA are notified. (2) The supply chain event report must include the following information: (i) Contract information, including contract number and contractor name; (ii) GSA contracting office; (iii) Prohibited article name; and (iv) Reason why prohibited article is banned on contract. (3) The contracting officer shall provide as much information as is available at the time of report submission. (4) GSA’s representative to the Federal Acquisition Security Council or designee will notify the contracting officer to confirm receipt of the report.

[JennaySDavis]

Purchase, Travel, Fleet, and Integrated

[JennaySDavis]

Purchase, Travel, Fleet, and Integrated

[JennaySDavis]

The purpose of this GSA SmartPay Smart Bulletin is to provide agencies/organizations with implementing guidance on submitting statistical and narrative reports as required in Chapter 5.3 of Office of Management and Budget (OMB) Circular A-123, Appendix B, entitled “A Risk Framework for Government Charge Card Programs,” dated August 27, 2019. This Smart Bulletin includes (1) reporting templates for agency submission of chapter 5.3 reports,(2) information on a due date extension solely for FY2019 reporting, and (3) reporting expectations for FY2020 and beyond.

[JennaySDavis]

OMB memorandum M-17-26, dated June 25, 2017, discontinued agency/organization purchase and travel charge card statistical reporting to OMB. However, OMB in that memorandum also required agencies to maintain that statistical reporting information for their own use in the management of their charge card programs. It further designated GSA’s Center for Charge Card Management (CCCM) as the central repository for the agency charge card statistical data, which was previously required to be submitted to OMB. CCCM will post this statistical and narrative data on GSA Interact for agencies/organizations subject to the Chief Financial Officers’ (CFO) Act. CCCM may also post information pertaining to other GSA SmartPay participating agencies/organizations as well. CCCM will work with the GSA SmartPay contractor banks to obtain agency/organization statistical reporting data in an electronic, automated manner to the extent possible. The balance of the statistical data CCCM is unable to directly obtain from contractor banks will need to be provided by the CFO Act agencies/organizations (and other entities as required) to CCCM. CCCM will use a central repository for these reports. The Circular also states that CCCM “may issue further guidance on both narrative and statistical reporting through the GSA Smart Bulletin process.” This bulletin constitutes further guidance.

[JennaySDavis]

The requested information in the template attached below shall be submitted, at a minimum, on an annual fiscal year basis. Agency-provided information shall be furnished to CCCM no later than 90 calendar days after the end of the Fiscal Year (FY). The due date for agency/organization submission of FY2019 agency statistical reporting to CCCM is hereby extended to No Later Than (NLT) February 28, 2020. This extension applies only to the FY 19 reports.
The Statistical Reporting requirement applies to all business lines under the GSA SmartPay program. Agencies must report the following items for each business line:
Count of accounts, as defined by GSA;
Total number of accounts across the charge card program as compared to the prior reporting period;
Total charge card dollars spent; and
Total refunds earned.
Specific requirements for each business line are as follows:
Purchase cards only (to be provided to CCCM by CFO Act Agencies)
Ratio of A/Os to purchase cardholders (span of control);
Number of purchase cards with transaction limits over the micro-purchase threshold
Ratio of the number of confirmed violations reported pursuant to P.L. 112-194 as compared to the number of valid transactions within the reporting period (GSA’s Center for Charge Card Management will obtain confirmed violation information from OMB/OFFM).
Convenience checks only:
Total number of convenience checks written;
Number of checks written over micro-purchase threshold;
Number of checks written under micro-purchase threshold; and
Total dollar amount of checks written.
Fleet cards only (to be provided to CCCM by CFO Act Agencies):
Ratio of reviewing officials to fleet cards (span of control); and
Number of fleet cards with transaction limits over micro-purchase threshold. Integrated cards only (to be provided to CCCM by CFO Act Agencies):
Ratio of A/Os to integrated cardholders (purchase business line - span of control);
Ratio of reviewing officials to integrated cards (fleet business line - span of control);
Number of integrated cards with transaction limits over the micro-purchase threshold and
Ratio of the number of confirmed violations reported pursuant to P.L. 112-194 as compared to the number of valid transactions within the reporting period (GSA’s Center for Charge Card Management will obtain confirmed violation information from OMB/OFFM).

[JennaySDavis]

For agencies/organizations subject to the CFO Act, the following information should be updated annually on a fiscal year basis and provided to CCCM no later than 90 calendar days after the end of each fiscal year:
The date(s) of most recent and next scheduled independent review(s) (e.g., OIG audits and risk assessments) for all agency charge card programs;
A description of the current process for monitoring delinquency, including what reports the agency reviews and what actions are taken when a problem is discovered;
A description of any best practices the agency employs in charge card management;
Progress reports on agency integration of GSA SmartPay e-payable payment process into their accounts payable processes and
Any additional information regarding agency management and use of charge card programs, including innovative applications to streamline business processes, increased revenue generation from expanded use for payments, and creative internal controls that maintain program integrity, flexibility, and ease of use.
The due date for submission of the FY2019 agency narrative reporting to CCCM is similarly extended to NLT on February 28, 2020. This extension applies only to FY 19 reports. For FY2020 reports and beyond, agency narrative reports are due to CCCM NLT 90 calendar days after the end of the fiscal year requirement as specified in the current version of OMB Circular A-123, Appendix B.

[JennaySDavis]

Agencies shall utilize the reporting templates attached below to submit the required agency/organization statistical and narrative reporting data. Agency reports should be emailed to [email protected] using the following file naming convention: AgencyName_OMB_A123_FiscalYear (e.g., GeneralServicesAdministration_OMB_A123_2019). Further instructions for report submission are provided in the templates. In the event any sensitive data is to be provided in these reports, agencies/organizations are reminded to encrypt the files and take any other security precautions as required by agency/organization policy.