DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY
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1 DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY FUEL CARD PROGRAMS Robert Warnick April 12, 2017
2 Warfighter Benefits AIR Card - Supports DLA Energy into-plane contract refueling at 450 locations - Accepted at 3,000 non-contract locations worldwide SEA Card - Online order management system supporting ships bunker refueling - Electronically connects DLA Energy bunker merchants to vessel ordering officers Fleet Card - Supports retail refueling - Supports fuel and minor vehicle parts and services - Accepted at over 200,000 commercial locations - Citi Fleet MasterCard for international coverage Swipe SEA Card - More than 200 DoD small vessels registered - Card accepted at locations worldwide for fuel only - Used at marinas for gas-and-go type situations
3 AIR Card FY16 Overview AIR Card Fiscal Year 2016 Domestic Sales 123M Gallons Contract Fuel 17M Gallons Non-Contract Fuel $4.5M Ancillary Services International Sales 78M Gallons Contract Fuel 30.3M Gallons Non-Contract Fuel $35M Ancillary Services Non-Contract Fuel Rebate $184,370 3
4 AIR Card Customer Payment Process EBS-Enterprise Business Systems 4
5 Where to Fuel? Order of Precedence Fuel Source Payment Mechanism Cost 1st DoD Installations AIR Card Identaplate DoD Sale Standard Price 2nd Into-Plane Contract Location AIR Card Into-plane Contract Standard Price Last Non-Contract Location AIR Card Local Purchase Standard Price * Highest risk and cost to customer
6 AIR Card Authorized Purchases Aviation fuel and fuel additives Authorized ground services If an unauthorized product or service is requested, the AIR Card MAY NOT be used to pay for these charges. For example, a U.S. Government travel card should be used for hotel arrangements and car rentals Using the AIR Card for other than authorized charges may result in disciplinary or legal action Use of the AIR Card constitutes a Government Order for Supplies or Service in accordance with the Federal Acquisition Regulation (FAR)
7 SEA Card FY16 Overview SEA Card Fiscal Year 2016 Domestic Sales 32M Gallons Contract Fuel 3.2M Gallons Non-Contract Fuel $265,000 Ancillary Services International Sales 1.8M Gallons Contract Fuel 760,000 Gallons Non-Contract Fuel $540,000 Ancillary Services Non-Contract Fuel Rebate $12,100 7
8 SEA Card Customer Payment Process 8
9 Fleet Card Overview Fleet Fiscal Year ,000 transactions $39 million sales (processed at the standard price) 17 million gallons $86,834 rebates 9
10 Fleet Card Transaction Process DoD Fleet Card Customer Card swipe to record fuel transaction Point of Sale (POS) Transaction Data: card number, date, product, quantity, price, supplier Transactions rolled up by DODAAC/Sub Account; Document Number Assigned; Standard Price Applied Billed data to DFAS-Columbus (DFAS-CO) DFAS-CO Interfund bill Validate charges Fuel Non-Fuel - Oil - Tires - Service EBS To customer Resource Manager Service Obligations Business as usual Obligations Operating Location (OPLOC) matches bills to obligations and disburses Commercial Invoice- memo entry on fuel billed to DLA Energy
11 Swipe SEA Card Overview Swipe Fiscal Year ,319 transactions $3.5 million sales (processed at the standard price) 1.5 million gallons $32,612 rebates
12 Swipe Transaction Process Swipe SEA Card Customer Card swipe to record fuel transaction POS Transaction Data: card number, date, product, quantity, price, supplier Transactions rolled up by DODAAC/Sub Account; Document Number Assigned; Standard Price Applied Billed data to DFAS-CO DFAS-CO Interfund bill Validate charges Fuel EBS Service Obligations Obligations OPLOC matches bills to obligations and disburses Commercial Invoice- memo entry on fuel billed to DLA Energy
13 Transaction Processing Fuel Transactions Fuel paid by DLA Energy and customer billed through Defense Finance and Accounting Service (DFAS) Standard price (military) or cost-plus (Fed and DoD agencies) Non-Fuel Transactions Invoiced directly to unit and payable upon receipt Unit responsible for certifying non-fuel purchases
14 Audit Readiness and Risk Management Personnel Management Ensure personnel assigned to correct roles during initial account set-up Monitor accounts for personnel changes Quarterly reports rejects 14
15 Audit Readiness and Risk Management Training Ensure initial training is conducted during account set-up Ensure refresher training is completed every three years 15
16 Audit Readiness and Risk Management Oversight and Monitoring Sampling Accountable Official (AO) reviews/validation Delinquencies 16
17 Audit Readiness and Risk Management Authorization Control Limits Price Tolerance Fuel Capacity Driver ID Profiles (dollar limits) Strategic Sourcing 17
18 Sampling Example T r a n s a c t i o n s 3000 Items for Further Review Sample Size Total Trans DECEMBER General Merchandise Grocery - 9
19 Delinquency Sample Delinquency Amount $1,700,000 $1,550,000 $1,400,000 $1,250,000 $1,100,000 $950,000 $800,000 $650,000 $500,000 $350,000 $200,000 $50,000 -$100,000 Air Force Army Navy Coast Guard Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Air Force 878,262 1,367,1 1,685,8 Army 275,108145,747199,427 Navy 160,449218,112132,111 Coast Guard ,672
20 Delinquency Sample Delinquency Amount $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 30 days 60 days 90 days 120 days 120+ days
21 GSA SmartPay 3 Update FAQs have been posted to the SmartPay website and distributed to customer agencies Kick Off Conference will be held in Summer 2017 Task order competition cannot occur until after Kick Off Conference is held More details will follow as they become available
22 Other Topics Possible minimum quantity change for into-plane contracts to 100k Discussion items from audience
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Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 2,038 2,922 4,089 4,349 6,256 7,124 8,885 8,885 8,885 8,885 8,885 8,885 9,107
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