United States General Accounting Office Report to Congressional Committees. Acquisition Reform Purchase Card Use Cuts Procurement Costs, Improves Efficiency.
GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL A FFAIRS DIV
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In 1993, the Vice-Presidents National Performance Review NPR recommended that agencies increase their use of government commercial credit cards, called purchase cards, for small purchases to cut the red tape normally associated with the federal procurement process. In 1994, card use was further facilitated by the Federal Acquisition Streamlining Act of 1994 FASA and Executive Order 12931. FASA eliminated some requirements for purchases of 2,500 or less, called micropurchases. The executive order encouraged agencies to use that micropurchase authority to allow staff in program offices to use the card. As of fiscal year 1995, cards were used at most federal agencies for over 4 million purchases worth more than 1.6 billion. As part of our legislatively mandated review of FASA implementation, we reviewed the nature and extent of progress in using the purchase card. Specifically, we examined the extent to which card use has led to administrative savings or other benefits, the potential for growth in card use, and the management controls over the program at the agency level. We also looked for opportunities for government-wide changes that would help agencies improve their purchase card programs. Our review included 12 civilian and military agencies, including the agencies with the 9 largest purchase card programs see app. 1. Combined, these 12 programs account for more than 87 percent of the funds spent with the card.
- Administration and Management
- Logistics, Military Facilities and Supplies