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1. Whenever the APC or designee changes an employee's card status, Management will notify the employee in writing (e: mail) of the changed card status (within 5 calendar days of the change) specifying any weekly, monthly, and/or trip dollar limitations.

2. To the maximum extent possible, Management will not require employees to use personal funds for government travel.

3. The revisions to the Government Travel Card Program prompted by the April 11, 2001 Task Order Modification by the Department of Defense and the Bank of America will be negotiated immediately starting on June 12, 2001 and continuing through 4:00 PM June 14, 2001. The parties agree that one hour will be added to parties negotiated 10 session limit on the parties' ground rules agreement for each hour of negotiation on the Travel Card issue. If agreement is not reached by COB Thursday June 14, 2001, the arbitration scheduled for June 21, 2001 will proceed uninterrupted.

4. Contingent on agreement as defined in 3. above, the Union Institutional Grievance filed on May 22, 2000 concerning the Government Travel Card Program is settled and the parties will equally share any cancellation fee obligated to the arbitrator.

5. The Task Order Modification and DCAA Kathy Windsor memo, dated May 24, 2001 is attached and made a part of this agreement.

6. Once the DoD implementing guidance on deactivation and cancellation of infrequent traveler's card is issued, the Union President (or his designee) and the APC will come to an agreement on the procedures to be followed.

7. Since the Task Order Mod provision #3 describes lower credit limits, if travelers need increased limits for their travel situation, they must call the APC to request an increased limit for that situation. The current APC is Ed Nebrensky at (972) 753-2527.

8. As annotated on Task Order Mod provision #6, the additional charge for expeditious delivery of cards is reimbursable on travel vouchers.

9. Task Order Mod provision #7 describes a new procedure for Split Disbursement for travel payments. If the traveler does not select a method of payment, the "default" method of payment is the Split Disbursement. The traveler will continue to be able to select the option "Pay the entire reimbursement directly to me" under the split disbursement box on the travel voucher or subvoucher DD Form 1351-2.

10. As annotated on Task Order Mod provision #9 the additional charge for ATM Cash Advance Fees is reimbursable on travel vouchers.

11. When the DoD policy memorandum is issued by the Office of the Under Secretary of Defense (Comptroller), the parties will bargain over any other changes to the Travel Card Program, in accordance with Article 8 of the CBA.

12. Except for the changes, noted herein, the provisions of the previous Travel card agreements dated 10/30/98, 9/30/99, and 2/3/00 remain in effect.

The parties enter into this agreement on this day June 13, 2001.

For the Union:
Raymond E. Downey

For Management:
Ed Nelson

FORT BELVOIR, VA 22060-6219


June 26, 2001



SUBJECT: Implementation of Changes to the Department of Defense (DoD) Travel Card

Policies to Reduce Delinquency Rates

Under Secretary of Defense memorandum dated June 14, 2001, subject: same as above, containing the DoD travel charge card policy implementation changes in order to reduce delinquency rates is provided at Attachment 1 for your information and implementation. These policies were agreed to in the April 11, 2001 DoD task order modification and are effective upon the dates specified in Attachment 1 and summarized below. Any labor relations obligation under Title 5, United States Code, Chapter 71, shall be fulfilled prior to implementation of these polices with respect to employees represented by unions.

The following are included in the policy changes:

1. Reducing the number of active cards issued to infrequent travelers, those who travel two or fewer times per year. This review should be completed no later than December 31, 2001.

2. Implementing default split disbursement. This implementation should be completed no later than July 10, 2001.

3. Establishing procedures for implementing salary offset for delinquent amounts due to the travel charge card contractor. The Travel Transportation and Reform Act of 1998 (refer to MRDs 00-CM-018(R); 00-CM-012(R); and 00-CM-008(R)), allows the salary offset of delinquent amounts due to the travel card contractor. These procedures should be established no later than October 9, 2001.

4. Reducing both cash and credit limits on the travel charge card.

5. Increasing the ATM transaction fee.

6. Assessing a $20 fee for expedited delivery of travel charge cards.

7. Increasing the monthly late fee charged to the cardholder from $20 to $29.

8. Assessing a $29 return check fee to the cardholder.
SUBJECT: Implementation of Changes to the Department of Defense (DoD) Travel Card

Policies to Reduce Delinquency Rates

9. Addressing travel charge card issues during in-processing and out-processing of personnel.

10. Notifying cardholders whenever supervisors/upper management are notified of delinquencies.

11. Negotiating the use of debit cards.

12. Assessing a pay-by-phone charge.

13. Modifying the card application and cardholder agreement and distributing the new agreements to all cardholders.

Modified cardholder agreements will be distributed by the Travel Charge Card vendor, Bank of America, before the following changes go into effect: reduction to the cash and credit limits, the increased fee for cash advances at ATMs, the fee for expeditious delivery of cards, the increase in the monthly late fee, and the return check fee.

Cardholders with questions on these policy changes should contact their Agency Program Coordinator listed at Attachment 2.

/s/ Gary Simpson for
Jody A. Trenary

Assistant Director, Resources

Attachments: 2



The following is a consolidation and update on the Bank of America contract mod implementation for your information. When more specific details and firm dates are available, an MRD will be prepared and issued for all personnel.

On April 11, 2001, a Task Order Modification was signed by the Department of Defense and the Bank of America that will materially affect specific areas of the Travel Charge Card Program.
The DoD task order with Bank of America has been extended through November 29, 2001.
The modification: allows the bank to charge a $29.00 late fee for accounts not paid within 75 days from the billing date;
$29.00 for each incident of a returned check;
$20.00 for expedited card delivery (excluding delivery for lost or stolen cards during travel);
establishes a requirement for a salary off-set program for delinquent accounts;
establishes split disbursement as the default method for payment of accounts;
raises the fee for ATM cash usage to $2.00 or 3% whichever is greater;
reduces credit limits to $2500 with $250 available cash for standard cards reduces credit limits to $1000 and $125 available cash for restricted cards.
The modification provides for APCs, with supervisor approval, to raise credit limits to meet mission requirements when supported by competent orders.
Fees incurred through no fault of the traveler may be reimbursed.
These changes will not be put into effect until Bank of America and DoD administrative requirements are met.
Current policy and procedures remain in effect until that time.
Department of Defense personnel will be notified of effective dates prior to implementation.
BOA, DFAS, and GSA are working on the new cardholder agreement. Until the agreement is finalized and sent to travelers, most of the agreed to changes cannot take place.

Union Issues:
Paul Wolstenholme, HQ, CPP, has provided Draft Labor Relations Guidance to the unionized regions regarding the new travel card requirements. This guidance will not become finalized until the DoD policy memorandum is issued by the Office of the Under Secretary of Defense (Comptroller) the end of May or early June. These policy changes will be incorporated into the Financial Management Regulation.

Deactivating/Canceling Infrequent Travelers' Cards:
At the present time, we can look at the process for deactivating/canceling infrequent travelers' cards. Please do not start deactivating/canceling infrequent travelers' cards until the unions have had a chance to bargain on this issue and implementing guidance is provided.
We have been informed that the Bank will consider helping the APC identify infrequent travelers.

Cardholder Agreement:
The cardholder agreement has gone through several iterations within DoD to incorporate the provisions of the recent task order modification. It is my understanding that the agreement is currently at the Bank of America and then will be sent to GSA. As noted in earlier e-mails and Monday interest items, the contract modifications will not become effective until cardholders have been issued new cardholder agreements that incorporate the modifications.

Cardholder Credit Levels:
I have commented to the DFAS PMO and requested that all travelers with increased limits (i.e. for overseas travel) remain at the increased limits to avoid APCs having to re-establish these limits. This issue has not been resolved to date.

Fee Structure:
It is our understanding that we will be given ample notice before the new fee structure is implemented.
The Per Diem Committee has issued an editorial change to the JTR CAP Item 23-01(E) which allows employees to be reimbursed a fee for expedited delivery of their Government Travel Charge Card if it is approved/authorized by the authorizing/order-issuing official. Remember that the expedited delivery fee is part of the contract mod which has not been implemented yet.
Cardholders will not be charged these fees until a new cardholder agreement has been issued to each cardholder.

Training and Further Information:
Tricia Canard and I will be attending a Card Program Manager meeting on June 14, 2001. The following are included in the agenda: the task order modification, communicating changes, and initial discussions on the implementation plan.
I will be attending the GSA Third Annual SmartPay Conference in August.
It is anticipated that the April 11 modification will dominate the DoD Day discussions. Topics include: card limits, fees, default split disbursement, salary offset, infrequent traveler, mission critical, and DoD policy updates to the JTR and Financial Management Regulations.

Please remember that the pay-by-phone service is strictly voluntary and is not part of this contract modification. The use of the pay-by-phone service is for employees' convenience and is not mandatory. Previously, the Bank has provided the service without a fee, however, as with many commercial banks, Bank of America is now assessing a fee ($10) for the service. Callers will be informed of the cost when/if they call in. This fee is effective immediately and will not be reimbursable on a travel voucher.