Section I: Purchase Charge Card Program Overview

4. Why do I need to understand the terms and conditions of the GSA SmartPay® 2 Master Contract?

Understanding the terms and conditions of the GSA SmartPay® 2 Master Contract is important to performing your role as an A/OPC. The terms and conditions of the Master Contract identify specific contractual requirements GSA SmartPay® 2 has with the contracting banks.

The GSA SmartPay® 2 Master Contract can be viewed at http://www.gsa.gov/gsa/cm_attachments/GSA_DOCUMENT/RFPwAmendmentsFINAL_R2-uF4-y_0Z5RDZ-i34K-pR.doc. To Download a copy and review relevant clauses and sections that pertain specifically to Purchase Charge Cards click here: http://www.gsa.gov/gsa/cm_attachments/GSA_DOCUMENT/RFPwAmendmentsPurchase_R2-uF4-y_0Z5RDZ-i34K-pR.doc.

A Purchase Charge Card is a Centrally Billed Account (CBA). A CBA is a charge card/account established by the Contractor at the request of the A/OPC wherein the Government is liable for the payment of the charges made under the account by an authorized user. Under a CBA, the agency/organization pays the Contractor directly for all non-disputed transactions. All Purchase Charge Cards are CBA-type accounts.

The GSA SmartPay® 2 Master Contract clearly defines liability for Purchase Charge Card transactions. Liability for transactions made by authorized cardholders rests with the Government. If an authorized cardholder uses the charge card to make an unauthorized purchase, the centrally billed account participant is liable for the charge. Use of the charge card by a person other than the cardholder, who does not have actual, implied, or apparent authority for such use and for which the cardholder receives no benefit, is not the liability of the Government. You should instruct your cardholders to immediately report to you and the bank any instances when the charge card was used without their knowledge or consent, or when the charge card is lost or stolen.

A very important responsibility that you have as an A/OPC is making sure that the cardholders understand that they must use the Purchase Charge Card for official Government use only and not for personal use. Your role and responsibilities will be discussed in greater detail in Section III of this training module.