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e-Business: 

Contents | Foreword | Introduction | The Law | Document Management | PKI & ES | DECS
e-Purchasing | Collaborative Working | e-Tendering | Reverse Auction
Government Procurement Card | The e-Business Revolution | Conditions & Guidance
Contact Details | Glossary of Terms | Acknowledgements

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What is this Chapter about?

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This chapter provides detail about the Government Procurement Card (GPC) and describes the benefits in using GPC.

Key Points

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The GPC:-

• Elimination of the “paper chase” – no need for individual requisition forms, financial approvals, written purchase orders etc.;

• Environmentally friendly – less paperwork means fewer trees cut down to make the paper;

• Order “on demand” – goods and services can be ordered when required. The need to hold onto stores is greatly reduced;

• Accuracy of order – The purchaser is now in direct contact with the Industrial supplier and can make instant decisions on what to buy;

• Choice – There are over 600,000 outlets in the UK that will accept the GPC and 10,000 are Visa VAT accredited;

• One payment – There is only one consolidated payment to the bank at the end of each month instead of making multiple payments to many Industrial partners. This removes thousands of bills going through to the Miscellaneous Bills section at the Defence Bills Agency (DBA) every month;

• Prompt payment to Industry – Industrial partners are normally paid within 4 days. This can allow the negotiation of better prices with Industry and has the added benefit of contributing to Government’s prompt payment target;

• Management information – The banks provide comprehensive management information in an electronic format.

Terms of Trading when using the GPC

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Transactions under the GPC will be subject to the Sale of Goods Act and the Supply of Goods and Services Act, as appropriate, unless other terms are expressly agreed and made part of the transaction with the supplier.

What are the Safeguards?

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Each cardholder is given a delegation letter that will set out the parameters for card use. The Cardholder is required to keep a transaction log of all purchases made. He will receive a statement from Company Barclaycard detailing all transactions made against his card during that month. He must reconcile his transaction log against the statement. He must then send the reconciled paperwork to his finance branch for retrospective requirement scrutiny and verification. Any discrepancies are either taken up with the Industrial supplier or Company Barclaycard as appropriate. All transactions are visible not just on the statement but also in the Management Information which is provided to TLB/HLBs. As well as paying the one GPC bill DBA also attributes all transactions to cost centres allowing finance branches to “match” commitments against payments.

Additionally specific controls are built into individual cards that cardholders are unable to change. All Cards have an individual (single) transaction limit and a monthly credit limit. If required certain types of supplier can be blocked using the VISA Merchant Category Code facility that allows cards to be tailored to the needs of an individual purchaser.

Cardholders are not liable for expenditure on their cards. MOD is indemnified by Company Barclaycard’s corporate liability insurance for Employee and Third Party (Supplier) fraud. Company Barclaycard will also provide reports on instances of attempted fraud. This is particularly relevant when using GPC over the Internet which is an increasing use of GPC, especially booking flights with the low cost airlines.

Summary

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GPC is providing real benefits to users in terms of processing efficiencies, faster deliveries and in some cases lower prices. It is also an important signal of MOD’s willingness to change the way it does its business. GPC is MOD’s first choice method for conducting Low Value Procurement.

Who should I contact to find out more?

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For more details of GPC including, for MOD staff, how to obtain a card, contact the GPC Management Team. Contact details for the Helpdesk are:

Tel: 01264 383610
Fax: 01264 383617

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