GSA To Break Up Card Award?

<H1> GSA To Break Up Card Award?</H1>By Barbara Cook

Washington, D.C. - American Express could lose its position as the sole charge card company for the federal government under a new procurement strategy to shift the government to multiple vendors.

Donna Bennett, the General Service Administration's deputy commissioner of federal supply service, said GSA is not unhappy with American Express, which has held the contract since 1993. The decision to consider going to multiple vendors, she said, "reflects that we have a diverse customer base in different stages of evolving in their own programs, and it is hard to fit all of those needs into one contractor's services."

The terms of the Amex contract, which will expire Nov. 30, 1998, call for the company to make an $18 million payment to the government up front and to pay a rebate totaling .65 percent of non-cash sales. So far, that rebate has amounted to $40.7 million in addition to the $18 million Amex paid up front, Bennett said.

A new contract calling for multiple charge card vendors would be structured to allow several contractors to win, Bennett said. "We would establish core requirements and then allow the vendors to provide additional services that wouldn't necessarily be the same," she said. The contracts would provide for added services based upon decisions made by the individual bidders. At that point, government agencies would select one contractor from among the winners to serve their travelers. Although the individual agencies would be required to commit to one vendor for a number of years, there would be a provision for them to switch vendors during the life of the contract.

An industry briefing on the proposal will be held here on July 10. GSA also is accepting written comments within 30 days after the briefing.

Bennett said her agency will spend the summer convening focus groups and by fall will be ready to draft a preliminary statement on its intentions.