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Dcpl09r001 Contractprov Purchase Travel Card

Dcpl09r001 Contractprov Purchase Travel Card

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Published by laurabrown63
The District of Columbia Public Library (DCPL) is establishing a purchase/travel card program beginning in fiscal year 2009. The program seeks to realize convenience and savings from program use over traditional procurement methods primarily for its micro-purchases.
The District of Columbia Public Library (DCPL) is establishing a purchase/travel card program beginning in fiscal year 2009. The program seeks to realize convenience and savings from program use over traditional procurement methods primarily for its micro-purchases.

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Published by: laurabrown63 on Aug 12, 2009
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08/11/2009

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DCPL-09-R-0017 District of Columbia Public Library Purchase/Travel Card Solicitation
2
SECTION B – PRICING AND SCHEDULE
B.1 BACKGROUND INFORMATION
1
 
The District of Columbia Public Library (DCPL) is an independent agency of the District of Columbia Government with itsown independent procurement authority. As an independent agency, the DCPL is establishing a purchase/travel card program beginning in fiscal year 2009. The program seeks to realize convenience and savings from program use over traditional procurement methods primarily for its micro-purchases. As a new program there are no historical trends for spend,transactions or number of cardholders. As a result, the period of performance shall be for a base year and one option year.
B.2
 
DEFINITIONS
 
DCPL Gross Refund:
The calculated amount of the DCPL refund (Sales, Productivity, and additional refunds as discussed inB.4 Refunds).
DCPL:
The calculated amount of the DCPL Gross Refund in dollars and other applicable adjustments.
DCPL Net Refund after Positive/Negative Incentives:
The calculated amount of DCPL net refund adjusted for performance based positive/negative incentives.
Basis Point (bp):
One hundredth of one percent.
Corrective Refund:
Payments from the charge card Contractor to the DCPL to correct improper or erroneous payments, or aninvoice adjustment.
Credit:
Any transaction that lowers the DCPL’s amount due.
 Credit Loss Rate:
Fee offset against DCPL individually billed refunds when net credit losses on individually billed travelaccounts during the reporting period are greater than or equal to 30 basis points of Net Charge Volume for individually billedtravel accounts. The rate shall be calculated by dividing the net charge volume (for individually billed accounts) into the dollar amount of the 1) Net Credit Losses greater than or equal to 30 basis points in the current reporting period and 2) Net CreditLosses carried over from previous reporting period, if applicable.
Dollar Basis to Determine Sales Refund:
Net Charge Volume less Gross Credit Losses.
File Turn:
Sum of Daily Balances divided by Sum of Daily Sales.
Gross Basis Points:
The number of Contractor-offered basis points.
Gross Credit Loss:
Balances that reach 180 calendar days past the closing date on the statement of account in which thecharges appeared for the reporting period.
Net Charge Volume:
The sum of all purchases, including Travelers Checks, ATM, and other fee-generating products/servicesless merchant credits.
Net Credit Losses:
Balances in individually billed accounts that reach 180 calendar days past the closing date on thestatement of account in which the charges appeared for the reporting period less recovered amounts. Recovered amounts arenet of recovery fees paid to third parties.
Productivity Refund
2
:
Payments from the charge card Contractor to the DCPL based on the timeliness and/or frequency of  payments to the Contractor.
 
Sales Refund
3
:
Payments from the charge card Contractor to the DCPL based on the dollar or “spend” volume during aspecified time period.
1
This background information is for illustrative purposes only. The DCPL makes no guarantee of specific transaction levels under thisProgram.
2
A “rebate” is synonymous with a “refund.”
3
Both sales and productivity refunds are calculated by basis points.
 
DCPL-09-R-0017 District of Columbia Public Library Purchase/Travel Card Solicitation
3 
Sum of the Daily Balances:
(Outstanding balance carried over from the previous quarter) + (Sum of each daily outstanding balance over the reporting quarter).
Sum of Daily Sales:
Sum of the Net Charge Volume for each day of the quarter.
Tier 1:
Core government-wide requirements.
Tier 2:
Value-added products and services.
B.3 PRICING REQUIREMENTS
 Pricing is broken out into three categories as follows:
B.3.1 Sales Refund
 The Contractor shall offer a minimum sales refund of 
8 
 basis points, as stated in B.4.1 Sales Refund, for each business line onall charge card, debit card, and pre-paid card transactions. The sales refund shall be accrued daily, and remitted quarterly.
B.3.2 Productivity Refund
 The Contractor shall offer one or more productivity refunds measured in basis points on all charge card and debit cardtransactions to the DCPL based on net charge volume.4These refunds can be earned based on the DCPL’s payment performance or streamlining initiatives (e.g., electronic payment). These refunds are in addition to the sales refund. For example, if the Contractor offers 60 basis points for the sales refund and is offering an additional 50 basis points if the DCPL pays within 30 days of receipt of the invoice and accepts electronic reports, the DCPL would receive a total of 110 basis points.The productivity refund shall be accrued daily, and credited quarterly.
B.3.3 Fee-Based Items
 The Contractor shall offer fee-based items including, but not limited to, ATM access, travelers checks and customized services.These are expressed as a percentage, number of basis points, fixed fee, or an hourly rate. For example, if the DCPL purchases$100 in travelers checks and the fee is 250 basis points, the DCPL will be charged $2.50 for that $100 travelers check ($100 x.0250 = $2.50). If the DCPL requires customized services (e.g., they want a training video or other customized service(s)), theDCPL may be charged a fee for that service based on an hourly rate. For example, if the DCPL wants to develop a customizedtraining CD ROM and it takes the Contractor 10 hours to accomplish this development at an hourly rate of $100, the DCPLwill be charged $1000 for that service (10 x $100 = 1000). In some cases (such as ATM access) these fees may be a fixed-fee(e.g., $1.50/ transaction), a percentage fee (e.g., 200 basis points) or a combination of the two. If a fee is charged for ATMwithdrawal, the contractor shall charge its standard commercial fee for charge card, debit card, and pre-paid card withdrawals,respectively. The Contractor shall offer additional products and services. Some of these additional product and service offerings are provided at no cost, while others are provided for a fee. Depending on the product/service ordered, the DCPL will be assessedthe appropriate fee, if any and as requested by the DCPL this fee may be deducted from the quarterly refund payment. For example, if the DCPL orders 100 card sleeves and the cost is $.25 per card sleeve, the DCPL could deduct $25 from their refund (100 x $.25 = $25).
4
 
This refund payment requirement excludes refund payments for convenience checks. Refunds on convenience checks may be negotiated atthe task order level but are not required by the master contract. The Contractor shall reflect this exclusion in the pricing section.
 
DCPL-09-R-0017 District of Columbia Public Library Purchase/Travel Card Solicitation
4 
B.4 REFUNDS
The Contractor shall provide a minimum sales refund of 
8
basis points of Net Charge Volume for each business line (purchasecard/travel card). The Contractor shall remit 4 basis points of the sales refund to the DCPL. The sales refund shall becalculated based on Net Charge Volume. The Contractor shall propose separate minimum sales refunds for each business line based on 30 day and 45 day billing cycles. The sales refund shall be accrued daily, and remitted quarterly.
Calculation of Sales Refund:
For the purposes of sales refunds, refunds shall be calculated as follows:Identify the Net Charge Volume for each day; andDetermine the Gross Credit Losses for each day;Subtract Daily Gross Credit Losses from Daily Net Charge Volume to begin refund computations;Thus, the calculations shall follow this series of formula:C (Daily Dollar Basis to Determine Sales Refund) x X (Gross Basis Points) = W (Daily DCPL Gross Sales Refund)
For example
: DCPL has $1,000 in Daily Net Charge Volume (A), and $10 in Daily Gross Credit Losses (B). Gross basis points offered in this example is 60 basis points. The daily sales refund would be calculated as follows:A ($1,000–Daily Net Charge Volume) – B ($10—Daily Gross Credit Loss) = C ($890—Daily Dollar Basis to Determine SalesRefund)C ($890—Daily Dollar Basis to Determine Sales Refund) x X (60 basis points–Gross Basis Points) = W ($5.34—DCPL GrossSales Refund)W (Daily Agency/Organization Gross Sales Refund ),Q (Daily Dollars to DCPL), and Z (Daily Agency/Organization Net SalesRefund) shall each be totaled for the reporting period to get Quarterly Agency/Organization Gross Sales Refund, QuarterlyDollars to DCPL, and Quarterly Agency/Organization Net Sales Refund, respectively.
B.4.2 Productivity Refund
In addition to the sales refund described in B.4.1 Sales Refund, the Contractor shall offer a separate refund schedule which willafford an opportunity for the DCPL to receive a productivity refund based on the DCPL’s improved payment performance (i.e.,improving speed of payment). The productivity refund should encourage and motivate the DCPL to improve and streamlineoperations and payments.Productivity refunds provided by the Contractor shall be based on file turn. The productivity refund process reduces the coststo the Contractor of maintaining the account, thereby allowing a portion of that savings to be returned to the account in theform of the productivity refund. The productivity refunds are influenced by both the distribution of charges throughout thequarter and the time to pay each invoice. Any productivity refund offered must take this requirement into account and mustdemonstrate how it is beneficial to the DCPL. The Contractor shall remit any productivity refund directly to the DCPL.The Contractor shall propose a productivity refund based on file turn. File turn is correlated with both timeliness of paymentand the delinquency rate. For example, if the DCPL pays bi-weekly that will have a smaller file turn than if the DCPL paysmonthly, holding all else constant. Similarly, lower delinquency rates will be reflected in a lower file turn holding all elseconstant. Additionally, the file turn is negatively correlated with basis points (i.e., a lower file turn shall be associated with ahigher number of basis points). The goal of the file turn/refund schedule is to incentivize the DCPL to decrease their file turnvia decreased delinquencies and payment times. In calculating file turn, the Contractor shall use standard rounding practices
5
.In addition, calculation and rounding of file turn shall occur at the highest level of hierarchy.The Contractor shall consider a file turn formula invalid if there is an outstanding balance carried over from the previousquarter, but there are no sales in the current quarter. The Contractor shall show a refund of zero (0) basis points and the balance will carry forward to the next cycle. For example, the formula would become undefined if there was a sum of daily balances carried over from a previous quarter, with no sales in the current quarter. In such a case, the balance will carry over until a positive daily balance is achieved.

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