DEPARTMENT OF THE NAVY GOVERNMENT-WIDE COMMERCIAL PURCHASE CARD PROGRAM POLICY; CHAPTER 1

What is the Purchase Card Program - a. The Purchase Card Program is intended to streamline small purchase methods; minimize paperwork; eliminate Imprest Fund (petty cash); streamline payment processes; and simplify the administrative effort associated with traditional and emergent purchase of supplies and services. b. The purchase card is used to purchase supplies and services for official government business valued at or below the micro-purchase threshold of $2,500. c. The purchase card may be used as a method of payment in conjunction with other contracting methods above the micro-purchase threshold up to $9,999,900 depending on the type of contracting vehicle utilized with the appropriate delegation of authority from the Head of the Contracting Activity (HCA). What are the Benefits? - a. Reduces administrative paperwork through streamlining of the procurement process. b. Streamlines the certification and payment process. c. Enables Defense Finance and Accounting Service (DFAS) vendor payment by Electronic Funds Transfer (EFT) through a commercial bank. d. Eliminates or minimizes prompt payment interest through the use of the online certification and payment system. e. Provides rebates to the DON based on the dollar volume of use and timeliness of payment. Background. - The need for the Purchase Card Program began with Executive Order 12352, "Procurement Reform", issued in 1982. After several interim programs, the DON issued a tailored Task Order, DON-9700-003, to Citibank on July 6, 1998, to provide worldwide purchase card services for the DON. The Purchase Card Program was developed to provide a fast and convenient method to procure and/or pay for all requirements under the micro-purchase threshold ($2,500 for supplies and services, $2,000 for construction and $25,000 for CHs Outside of the United States (OCONUS) under the appropriate conditions). (1) Procurement method is defined as a CH performs the task of ordering, obtaining and paying for supplies/services.