Par.

1. Purpose
2. Scope
3. Cancellation
4. References
5. Definitions
6. Policy
7. Application Certification
8. GCCCS Application and Account Set-up Procedures
9. Use of the Credit Card
10. Lost or Stolen Cards
11. Cancellation of Credit Cards
12. Validation of Purchases
13. Cost of the Program
14. Restrictions on the Use of the Credit Card
15. Training
16. Liabilities
17. Audit and Review of Credit Card Transactions
18. Waivers

1. PURPOSE. To prescribe the policy, responsibilities, and procedures for the implementation of the GCCCS Program within the Federal Highway Administration (FHWA).

2. SCOPE. The provisions of this Order are applicable to all GCCCS users.

3. CANCELLATION. FHWA Order 2770.3, "Use of Credit Cards for Small Purchases," dated October 4, 1991, is canceled.

4. REFERENCES

   1. The Federal Acquisition Regulation (FAR).

   2. General Services Administration (GSA), Federal Supply Service, Contract Guide GS-23F-94031, April 1994.

   3. Treasury Financial Manual (TFM), Volume I, Part 4, Chapter 4500, Governmentwide Credit Cards.

   4. Transportation Acquisition Manual (TAM), Chapter 13, Appendix B, "DOT Procedures Pertaining to the Governmentwide Commercial Credit Card Service (GCCCS) Program."

5. DEFINITIONS. The following definitions supplement those set forth in the GSA GCCCS Program contract and the Transportation Acquisition Manual (TAM).

   1. Agency Program Coordinator (APC) - the employee designated to coordinate the GCCCS program for the entire FHWA. This employee is located in the Finance Division, HFS-20.

   2. Approving Official - the employee within the field or staff office that has cardholder(s) under his/her purview. In FHWA, Approving Official(s) are designated by the responsible Associate Administrator, Staff Office Director, Regional Administrator, Federal Lands Highway Program Administrator, or Federal Lands Highway Division Engineer.

   3. Chief of the Contracting Office (COCO) - the person responsible for overall management of a contracting office. In FHWA the COCOs are: the Associate Administrator for Administration, the Federal Land Highway Program Administrator, and Regional Administrators, when acting within the authority delegated to the Head of Contracting Activity (reference memorandum dated November 1, 1993).

   4. Delegation of Procurement Authority (DPA) - the document issued by the COCO, or designee, granting specific procurement limits to the individual employee who is to be issued a GCCCS credit card. This DPA does not substitute as a warrant issued under FAR Part 1.6 (see paragraph 5k).

   5. GCCCS Program - the program established by GSA to streamline the procurement and payment process by reducing the paperwork involved with the issuance of the SF-44, Purchase Order. The initial credit card, International Merchant Purchase Authorization Card (IMPAC), was issued by the Rocky Mountain Bankcard System; therefore, the terms GCCCS, Rocky Mountain credit card and IMPAC may be used interchangeably.

   6. Head of the Contracting Activity (HCA) - the person responsible for the overall management of the Washington Headquarters and regional acquisition programs. In FHWA, the HCA is the Executive Director.

   7. Monthly Spending Limit - maximum dollar amount a cardholder may expend over a 30-day period. In FHWA, this amount is determined by the COCO, or designee, and is stated in the cardholder's DPA.

   8. Single Purchase Limit - the spending limit imposed on a cardholder for an individual credit card transaction. Within FHWA these limits are: (1) $2,500 - maximum limit for non-warranted personnel, unless specifically authorized by the HCA; and, (2) $25,000 - maximum limit for warranted personnel. The COCO or designee may establish a single purchase limit less than or equal to the maximum limits. The amount established is stated in the individual cardholder's DPA.

   9. TAM - the DOT document containing the DOT policies and procedures relating to procurement and the GCCCS program.

   10. Warranted Personnel - FHWA employees who have been issued formal appointment of contracting authority in accordance with FAR Part 1.6. A DPA issued under this Order does not substitute as a warrant.

6. POLICY. It is the policy of the FHWA to comply with all related directives and regulations in administering all requirements regarding the GCCCS Program. The DOT policies and procedures relating to the GCCCS Program are contained in the TAM, Chapter 13, Appendix B.

7. APPLICATION CERTIFICATION. Approving officials shall review each application and certify to the APC that the prospective cardholder demonstrates fiscal responsibility. Any serious delinquency on the part of cardholder for outstanding travel advances, or Travel Charge Card Program balances within FHWA, i.e., debt balances outstanding more than 60-120 calendar days, would be sufficient to disqualify such applicant.

8. GCCCS APPLICATION AND ACCOUNT SET-UP PROCEDURES

   1. Account Set-up forms (copies attached) for approving officials and cardholders shall be completed, signed, and submitted to the APC. Account set-up forms from division offices shall be forwarded to the APC through the regional office. Applications from Federal Lands Highway Divisions shall be forwarded to the APC through the Federal Lands Highway Program Administrator's office. The attached copies may be photocopied for this purpose.

   2. All account set-up forms for cardholders and approving officials must be accompanied by:

      (1) a certification by the approving official that the prospective cardholder demonstrates fiscal responsibility;

      (2) a certification that the training requirements of paragraph 15, of this Order, have been satisfied; and

      (3) a copy of the DPA issued to the card applicant.

   3. Warranted personnel may submit a copy of their warrant, in lieu of items 8b(1), (2), and (3), of this Order.

   4. Upon completion of the review by the APC, the account set-up forms will be forwarded to the card issuing bank for processing and issuance of a credit card to the cardholder. This process takes approximately 10 days.

   5. Upon receipt of the credit card, the cardholder must promptly return the receipt of acknowledgment form to the issuing bank.

9. USE OF THE CREDIT CARD

   1. The individual whose name appears on the credit card is the only person authorized to use the credit card. The credit card may be used for small purchases as defined in FAR Part 13. With the exception of items listed in paragraph 14 of this Order, the credit card may be used for over-the-counter or telephone purchases from participating vendors.

   2. The use of an individual Procurement Request (PR) for each credit card transaction is optional. However, all purchase transactions made by a cardholder shall be supported by a PR or other document certifying to funds availability. Availability of funds determination shall be made prior to any purchase. All purchases by credit card shall be supported by an accountable document (i.e. a credit card receipt or a telephone log entry by date of purchase, name of authorizing official, vendor name, item description, amount of purchase, etc.)

   3. Purchases by the Federal Government are exempt from sales tax (the credit card also bears this notation). A toll free number is included on the back of the card for the merchant to call if they have any questions regarding sales tax. The cardholder may also request the APC to provide them with a copy of his/her State sales tax agreement letter. Charges processed with sales tax must be resolved between the cardholder and the merchant.

   4. Cardholders shall inform the vendor not to charge the credit card for the purchase until shipment is made.

   5. Purchases requiring prior administrative approval may not be made before obtaining the required approval. (Note: consult internal/FHWA office operating procedures)

10. LOST OR STOLEN CARDS. Since the use of the GCCCS will obligate the Federal Government, care should be taken to secure the card in accordance with the safeguarding requirements established for imprest funds. In the event a credit card is lost or stolen, the cardholder's approving official and the issuing bank shall be immediately notified of the cardholder's complete name, card number, last authorized purchase, and in the case of theft, the date reported to the police. Within five working days of discovery, the approving official shall forward written confirmation of the above information to the issuing bank and the APC.

11. CANCELLATION OF CREDIT CARDS. With the exception of lost or stolen cards, the APC shall be responsible for canceling any credit cards. Approving officials shall promptly complete and forward a Cardholder Account Maintenance form to the APC for any cardholder who retires, resigns, dies, or is reassigned to another position, terminated, or no longer qualified as a cardholder.

12. VALIDATION OF PURCHASES

    1. Cardholder

       (1) It is the cardholder's responsibility to verify all credit card purchases and credit transactions, i.e., the cardholder's copy of the sales receipt, credit slip, and telephone/purchase log, against the transactions on the monthly bank statement.

       (2) The cardholder shall resolve discrepancies on the monthly statement, including charges for items returned to vendors, charges by merchants made before the date of shipment, and credit vouchers not appearing on the statement.

       (3) Cardholders will send the issuing bank a completed "Cardholder Statement of Questioned Item Form" (copy attached) for any disputed item within 7 calendar days after receipt of the monthly statement. The cardholder shall also forward a copy of this form with the statement and supporting documentation to the approving official for review.

       (4) Cardholders shall assure that the correct accounting classification is assigned to each item appearing on the statement.

       (5) The cardholder should forward the cardholder's statement to their approving official for signature. The approving official will forward the signed statements to the Coast Guard Finance Center for processing.

    2. Approving Official. It is the approving official's responsibility to ensure that the cardholder's validated purchases and credits are authorized purchases and bear the proper accounting classifications, and that purchases and credits are supported by sales slips, credit slips, or telephone log entries. Within 14 days after the date on the approving official's statement, the approving official shall forward the cardholder's statement and the approving official's statement to the U.S. Coast Guard Finance Center. Overnight delivery should be used to ensure compliance with this time period.

13. COST OF THE PROGRAM. Interest shall be paid to the issuing bank for the number of days late, computed at the Renegotiation Board Interest Rate, if a payment is made late. These charges will be charged to the major object code cited in the accounting string of the purchase(s) using sub-object code 99 (See DAFIS object code listing).

14. RESTRICTIONS ON THE USE OF THE CREDIT CARD

    1. The GCCCS credit card cannot be used for:

       (1) personal purchases.

       (2) cash advances.

       (3) airline, bus, boat, and/or train tickets.

       (4) rental and/or lease of motor vehicles.

       (5) meals, beverages, and/or lodging.

       (6) repairs, gasoline, and/or oil for GSA motor vehicles or other commercially leased vehicles.

       Restrictions for Headquarter's offices only, except for those offices or locations with special exemptions:

       (7) non-expendable property, including telecommunications, furniture and other accountable/sensitive equipment.

       (8) ADP hardware, software, and maintenance.

       (9) data communication lines, hardware, software, and/or services.

    2. The cardholders who have warranted contracting authority or who are directly supervised by a warranted contract officer are exempt from items (4),(8), and (9) above.

15. TRAINING

    1. The Administrative Office (HFS-20), in conjunction with the Office of Acquisition Management, will ensure that approving officials and cardholder applicants receive the required training prior to the issuance of credit cards. The training will include instruction in their individual responsibilities in adhering to procurement regulations and financial management requirements.

    2. Training in procurement regulations will include understanding the requirements as set forth in the FAR and TAM, covering at a minimum, the following:

       (1) Part 3, "Improper Business Practices and Personal Conflict of Interest;"

       (2) Part 8, "Required Sources of Supplies and Services;"

       (3) Part 13, "Small Purchases and Other Simplified Purchase Procedures;"

       (4) Part 22, "Application of Labor Laws to Government Acquisitions;"

       (5) Part 25, "Foreign Acquisitions;" and

       (6) Part 39, "Acquisition of Information Resources."

    3. Training in financial requirements pertain to:

       (1) safekeeping of credit cards and card numbers;

       (2) retention of receipts for charges and credits for purchases, returns, and disputed items;

       (3) record keeping for telephone purchases;

       (4) timely validation of charges and credits on monthly statements;

       (5) summarization of accounting data for charges and credits on monthly statements; and

       (6) procedures to follow if a card is lost or stolen.

16. LIABILITIES

    1. The FHWA will not be liable for unauthorized purchases made by an unauthorized user provided that reasonable efforts were made to promptly notify the card issuing bank when the credit card was lost or stolen.

    2. The FHWA will be liable for unauthorized purchases by the authorized cardholder when the purchase was made through an approved merchant and the amount of the purchase did not exceed the cardholder's single purchase or monthly spending limit.

17. AUDIT AND REVIEW OF CREDIT CARD TRANSACTIONS. The DOT, under the Departmental Accounting and Financial Information System (DAFIS), will implement an automated module to randomly select credit card transactions for audit.

    WAIVERS. The COCOs desiring waivers from any requirement of this Order shall submit to the APC a written request justifying the need for the exemption. The APC will review the documentation and develop the necessary recommendation to the HCA, through the Associate Administrator for Administration.

/s/ Original signed by:
George S. Moore, Jr.
Associate Administrator
for Administration