Use of the Fleet Charge Card and Alternative Payment Methods

departmental regulation		Number: 5400-006
SUBJECT: Use of the Fleet Charge Card and Alternative Payment Methods	DATE: March 6, 2009
	OPI: Office of Procurement and Property Management

1. PURPOSE

This regulation prescribes U.S. Department of Agriculture (USDA) policies, procedures, and responsibilities for use of the USDA fleet charge cards and alternative payment methods used to fuel and maintain USDA fleet vehicles (e.g., sedans, station wagons, and trucks), non-fleet vehicles (e.g., aircraft, motorcycles and boats), and non-fleet equipment (e.g., mowers, tractors, all-terrain vehicles, snow mobiles, chain saws, generators). Other fleet issues, such as use of alternative fuels, recycled products, safety, equipment, authorized vehicle uses, and delegation of authorities, are addressed in the Agriculture Property Management Regulations (AGPMR)– Aircraft Management 110-33 (available online at www.usda.gov/da/property/part10233.pdf ) and the AGPMR – Motor Vehicle Management 110-34 (available online at www.usda.gov/da/pmd/AGPMR.pdf).

2. CANCELLATIONS/REVISIONS

Department Regulation (DR) 5400-006 reflects issuance of the new USDA fleet charge cards resulting from the USDA Charge Card Service Center (CCSC) transition to the vendor’s Electronic Access System (EAS).

a. Cancellations.

(1) This regulation cancels the previous DR 5400-006 dated August 25, 2006.

(2) USDA no longer uses the Voyager fleet card and the Purchase Card Management System (PCMS).

b. Revisions. The new fleet charge cards are active for all USDA vehicles, aircraft, boats, and motorized equipment to purchase fuel and maintenance on November 30, 2008 at 12:00 a.m. EST.

3. ACRONYMS

Acronym	Definition
AFV	Alternative Fuel Vehicle
AFPC	Agency Fleet Program Coordinator
AGAR	Agriculture Acquisition Regulations
AGPMR	Agriculture Property Management Regulations
AIR	Aviation Into-plane Reimbursement
CCSC	Charge Card Service Center
CFMSCCB	Corporate Financial Management Systems Configuration Control Board
CPAIS	Corporate Property Automated Information System
DESC	Defense Energy Support Center
DLA	Defense Logistics Agency
DPM	Departmental Program Manager
DR	Departmental Regulation
EAS	Electronic Access System
EMIS	Equipment Management Information System
EO	Executive Order
FAR	Federal Acquisition Regulations
FAST	Federal Automotive Statistical Tool
FMR	Federal Management Regulations
FPMR	Federal Property Management Regulations
GFC	Government Fuel Card
GSA	General Services Administration
LFPC	Local Fleet Program Coordinator
OIG	Office of Inspector General
OMB	Office of Management and Budget
OPPM	Office of Procurement and Property Management

Acronym	Definition
PCMS	Purchase Card Management System
PIN	Personal Identification Number
PMD	Property Management Division
PMIS	Property Management Information System
PMO	Program Management Office
PROP	Personal Property System
R/AFPC	Regional/Area Fleet Program Coordinator
U.S.	United States
USDA	United States Department of Agriculture

4. DEFINITIONS

a. Abuse. Abuse is the unauthorized use of a fleet charge card for the purchase of any item other than fuel and maintenance services necessary to operate and maintain USDA vehicles, aircraft, boats, and motorized equipment. Abuse also includes the use of the fleet charge card to buy fuel and maintenance services, but at terms (e.g., price, quantity) that are excessive and/or for a questionable Government need. Examples include knowingly purchasing premium fuel rather than regular fuel for vehicles that do not require premium fuel; and using full-service pumps when fueling a vehicle rather than using a readily available self-service pump.

b. Agriculture Acquisition Regulations (AGAR). The AGAR prescribes policies and procedures that implement and supplement the Federal Acquisition Regulation (FAR), which is the primary regulation for use by all Federal agencies in the acquisition of supplies and services with appropriated funds.

c. Agency Fleet Program Coordinator (AFPC). The AFPC is responsible for the overall Fleet Charge Card Program in each agency and is the agency’s contact liaison to the Departmental Program Manager (DPM). AFPCs may appoint assistants, deputies, or Regional/Area Fleet Program Coordinators (R/AFPC) to assist with program management. AFPCs or their deputies are responsible for appointing Local Fleet Program Coordinators (LFPCs) to manage the day-to-day operations of their agencies’ Fleet Charge Card Program.

d. Agriculture Property Management Regulations (AGPMR) - Management of Government Aircraft 110-33. This document is a supplement to the Federal Management Regulation (FMR) 102-33 that includes USDA-specific policies and procedures for the management of aircraft.

e. Agriculture Property Management Regulation (AGPMR) - Management of Government Motor Vehicles 110-34. This document is a supplement to the FMR 102-34 that includes USDA-specific policies and procedures for the management of motor vehicles.

f. Alerts. Alerts are messages sent to the DPM and agency coordinators regarding questionable transactions and other events as defined by the DPM and agencies. Alerts are part of the USDA Fleet Charge Card Program’s oversight procedures.

g. Alternative Payment Methods. These are payment methods available for use when the merchant does not accept the fleet charge card. These methods include pre-paid cards and declining balance cards. (Pre-paid and declining balance cards are also known as debit cards.) These alternative payment methods should only be used in emergency situations.

h. Aviation Into-Plane Reimbursement (AIR) Card. This is the charge card that should be used to procure aviation fuel and related ground services. The Defense Logistics Agency (DLA)/ Defense Energy Support Center (DESC)/ Government Fuel Card Program Management Office (GFC PMO) is designated as the Program Management Office for the AIR card.

i. Corporate Property Automated Information System (CPAIS). CPAIS is the web-based property management system which will replace the Property Management Information System (PMIS) Personal Property System (PROP) and the Forest Service’s Equipment Management Information System (EMIS). CPAIS will be used to administer, control and report motor vehicle inventory records.

j. Daily Transactions Limit. The Daily Transactions Limit is the total number of times a fleet charge card can be used in one day to purchase fuel or maintenance.

k. Departmental Program Manager (DPM). The DPM is responsible for overall management of the Fleet Charge Card Program at the Departmental level. This individual is the Chief of the Office of Procurement and Property Management (OPPM) Property Management Division (PMD).

l. Defense Logistics Agency (DLA)/ Defense Energy Support Center (DESC)/ Government Fuel Card (GFC) Program Management Office (PMO). This is the PMO responsible for the AIR card.

m. Electronic Access System (EAS). The EAS is the bank-owned and operated online electronic system used to manage the USDA fleet charge cards, the features of which includes but is not limited to ordering cards, disputing card transactions, reporting, closing accounts, and much more. This system replaces PCMS.

n. Federal Acquisition Regulations (FAR). The FAR establishes uniform policies and procedures for acquisition by all executive agencies (FAR 1.101). The FAR is located in Title 48, Chapter 1 of the Code of Federal Regulations.

o. Fleet Vehicle. A fleet vehicle refers to automobiles that utilize fuel such as sedans, station wagons, and trucks. Regulations require agencies to submit annual reports listing the vehicle type and location, the cost/amount of fuel consumed, and cost of maintenance/repairs via the Federal Automotive Statistical Tool (FAST).

p. Fleet Charge Card User. This is the person who uses the fleet charge card, AIR card, or the Multi Service charge card to fuel or maintain any USDA vehicle, aircraft, boat, and motorized equipment.

q. Federal Management Regulation (FMR). The FMR is the successor regulation to the Federal Property Management Regulation (FPMR). It contains updated regulatory policies originally found in the FPMR.

r. Fraud. Fraud and fraudulent transactions are any acts of corruption or attempt to cheat the Government or corrupt the Government’s agents, including but not limited to, the use of Government charge cards to transact business that is not sanctioned, not authorized, not in one’s official Government capacity, not for the purpose for which the card was issued, or not as part of official Government business.

s. Local Fleet Program Coordinator (LFPC). The LFPCs are appointed locally by the AFPCs or R/AFPCs. The LFPC is responsible for the day-to-day operations of the Fleet Charge Card Program at each site. This includes fleet charge card user training (e.g., AGPMR, policy and procedures), oversight of fleet charge card transactions, review of card limits, activation/deactivation of fleet charge card accounts, and maintenance of log books.

t. Micro-Purchase. Purchases at or below the micro-purchase threshold as defined in the FAR (FAR 2.101), or as otherwise provided by law.

u. Misuse. Use of a fleet charge card for other than the official government purpose(s) for which it is intended.

v. Monthly Purchase Limit. The maximum total dollar amount that can be charged on a fleet charge card within the 30-day billing cycle is the Monthly Purchase Limit. This limit is card-specific and is based on the card’s Single Purchase Limit times the Daily Transactions Limit times 30 (days in the billing cycle) [(Single Purchase Limit x Daily Transactions Limit) x 30-Day Billing Cycle]. For example, ($100 x 3) x 30 = $9,000.

w. Non-Fleet Vehicles or Motorized Equipment. Non-fleet vehicles refer to aircraft, boats, motorcycles and all-terrain vehicles that utilize fuel. Non-fleet equipment refers to motorized equipment that uses fuel and includes equipment like mowers, tractors, snow mobiles, chain saws, and generators. Agencies must report fuel consumption (cost and type) for non-fleet vehicles and motorized equipment via the Agency’s Annual Energy Report.

x. Personal Identification Numbers (PINs). A PIN is a six-digit number assigned to a specific fleet charge card user or driver in order to link card transactions to card users.

y. Regional/Area Fleet Program Coordinator (R/AFPC). The R/AFPC is assigned by an AFPC to manage the Fleet Charge Card Program in his/her area. This person reports to the AFPC on fleet charge card issues and oversees the LFPCs in his/her area.

z. Single Purchase Limit. A Single Purchase Limit is the maximum dollar amount that can be charged on the fleet charge card for each transaction. It is card-specific and established at the agency-level.

aa. Statistical Sampling. Statistical sampling is a process where fleet charge card transactions are randomly selected for verification of legitimacy. This process is instrumental to the oversight of the USDA Fleet Charge Card Program.

bb. Waste. Any activity taken with respect to the fleet charge card that fosters, or results in, unnecessary costs or other program inefficiencies.

5. POLICY

This DR establishes USDA policy and instructions for use of the USDA fleet charge card, as well as the AIR Card and the Multi Service charge card. These cards are to be used to procure fuel and maintenance services necessary to operate and maintain USDA fleet and non-fleet vehicles and motorized equipment. Fleet charge card users must obtain approval from their LFPC, R/AFPC, or AFPC as appropriate for maintenance/repair purchases over $3000. Additionally, these purchases must be approved by a warranted Contracting Officer following standard procurement rules and regulations.

Fleet policies and procedures described in the AGPMR 110-33, AGPMR 110-34, Executive Order (EO) 13423 – Strengthening Federal Environmental, Energy, and Transportation Management must also be followed.

6. PROGRAM OBJECTIVE

The USDA Fleet Charge Card Program allows agencies to reduce administrative costs and taxes through the use of fleet charge cards and alternative payment methods. In addition to reducing costs, the fleet charge card enables the collection of detailed fleet management information pertaining to fuel, maintenance and service.

7. AUTHORIZED USE OF FLEET CHARGE CARDS AND RELATED ALTERNATIVE PAYMENT METHODS

a. Authorized Use. The fleet charge card and related alternative payment methods are authorized for use to procure fuel and services necessary to operate and maintain fleet and non-fleet vehicles and motorized equipment. The following are examples of authorized purchases:

(1) Fuel (all types)

(2) Transmission Fluids

(3) Oil/Oil Changes

(4) Windshield Wiper Blades

(5) Windshield Washer Fluid

(6) Anti-Freeze

(7) Car Washes

(8) Maintenance

(9) Tires/Tire Repair

(10) Tie-Down Fees

(11) Landing Fees

(12) De-Icing Services

(13) Docking Fees

(14) Auto Body Work

(15) Roadside assistance (e.g., towing, lockout service, battery charging, tire changing, winching, fuel delivery,)

b. Unauthorized Use. Use of the fleet charge card or alternative payment method is strictly prohibited for the following:

(1) To purchase food, beverages, or other miscellaneous personal items.

(2) To pay any State or local traffic or parking violations that are obtained while driving a motor vehicle owned or leased by the Government.

Use of the cards for those types of purchases could result in disciplinary action.

c. Use of a purchase card instead of an authorized fleet charge card to buy fuel or maintenance services for USDA fleet vehicles, non-fleet vehicles, and non-fleet equipment is prohibited, unless authorized by the Charge Card Program Office or Fleet Departmental Program Manager.

8. AGENCY INTERNAL CONTROL REQUIREMENTS

In order to protect USDA’s interest, it is extremely important that agencies establish adequate internal controls to help ensure effective vehicle management and reduce waste, fraud, and abuse. This includes, but is not limited to:

a. Ensuring only authorized employees use the fleet charge cards or alternative payment methods.

b. Ensuring that employees are adequately trained in fleet charge card policies and procedures.

c. Considering and imposing appropriate administrative and/or disciplinary actions for cases of fraud and other blatant abuses of the fleet charge card and/or related alternative payment methods.

d. Implementing guidelines for sensitive and pilferable property items that are stored for future use (e.g., tires, windshield wipers, batteries,) that can be easily converted to personal use.

e. Ensuring agency officials maintain Use Logs to capture fleet (e.g., vehicles, aircraft, boats, and motorized equipment) usage information. (See Section 10i. Use Log for detailed requirements.)

9. SPECIAL INSTRUCTIONS

a. Fleet Charge Card for Official Use Only. The fleet charge card is for official Government business only. Under no circumstances is the card to be used for personal purchases or as identification for personal purchases.

b. Transactions Greater Than $3000. Transactions for maintenance or repairs greater than $3000 must be approved by the agency’s LFPC, R/AFPC, or AFPC following agency specific policies and procedures and by a warranted Contracting Officer following the agency’s standard procurement rules and regulations. The fleet charge card should be used as the primary payment method to ensure proper tracking of the maintenance or repair of a USDA fleet or non-fleet vehicle and/or piece of motorized equipment through the bank’s EAS.

c. Ethics Requirements. Office of Government Ethics Standards of Conduct for Executive Branch employees applies to fleet charge card use. All transactions must be for official Government business only. Fleet charge card users with questions regarding the propriety of a particular transaction should consult their LFPC or agency ethics officer for guidance and assistance prior to making the purchase