How to Reduce Your Bill Presented to PDI

How to Reduce Your Bill Presented to: PDI - Eglin AFB, FL March 18, 2005 By: Brenda Locke, Director of Contract Pay Operations Commercial Pay Business Line Integrity - Service - Innovation

Not Just a DFAS Initiative. . . 3/18/05 Integrity - Service - Innovation 2

Vendor Interaction With EC Tools 1 Vendor registers in CCR supplying remittance info and e. Business POC 2 Vendor views contractual data and vouchers on EDA/NAFI 3 Vendor enters invoice and shipment data into WAWF, or transmits invoices via WINS or EDI 5 Vendor receives payment via electronic funds transfer (EFT) 4 Vendor monitors invoice status and views AOP in VPIS 3/18/05 Integrity - Service - Innovation 3

EC Tools for Payment • Electronic Funds Transfer (EFT) ü Electronic payment method mandated by Public Law ü Funds are routed electronically to vendor’s bank ü E-Commerce success story!!! 3/18/05 Integrity - Service - Innovation 4

Initial State of VP EFT (6/04) 3/18/05 Integrity - Service - Innovation 5

Progress - EFT Today • Number of checks reduced - 13, 131 per month • Savings Recognized - $46, 352 per month • EFT Percentage IAPS, CAPS & One Pay ü May - 83. 47% ü December - 88. 15% • EFT Percentage CPBL ü May - 91. 60% ü December - 94. 30% • FY 05 Goal - 96% ü Outlook for exceeding goal very positive. 3/18/05 Integrity - Service - Innovation 6

Electronic Invoicing Mandate • Contractors must submit invoices electronically • Mandated by Public Law: Section 1008 of National Defense Authorization Act of FY 2001. • DFARS has been updated to include a requirement for electronic invoicing, effective for contracts issued on or after 01 March 2003 • DFARS Clause 252. 232 -7003 (232. 7004): ü Requires electronic invoicing ü Requires electronic supporting documentation ü Identifies three acceptable electronic forms for transmission of invoices (WIn. S, WAWF, and EDI); and ü Identifies six specific situations where using electronic methods is not required. 3/18/05 Integrity - Service - Innovation 7

Where are we now? Source by Quarter - FY 04 Source by System - 4 th Qtr FY 04 Source by Service - 4 th Qtr FY 04 3/18/05 Integrity - Service - Innovation 8

Cost Benefits of Electronic Commerce Billing Rates per Transaction: Contract Pay Vendor Pay-USAF Manual EC $ 32. 90 16. 00 $ 21. 48 3. 95 Savings $ 16. 90 $ 17. 53 3/18/05 Integrity - Service - Innovation 9

Cost Benefits of Electronic Commerce, Continued Example: 25, 000 Total Transactions Cost: 15, 000 Vendor Pay 10, 000 Contract Pay Total Cost 100% Manual 50% / 50% 100% EC $322, 200. 00 + $190, 725. 00 + $ 59, 250. 00 + $329, 000. 00 = $651, 200. 00 $244, 500. 00 = $435, 225. 00 $160, 000. 00 = $219, 250. 00 Potential Savings for 100% EC: $431, 950. 00 3/18/05 Integrity - Service - Innovation 10

Upcoming Events • DFAS Purchases Training ü ü Kansas City - April, 2005 Arlington - April, 2005 Cleveland - April, 2005 San Antonio/Columbus - monthly vendor training 21 WAWF ! g Trainin • Agency/Service Implementation Support WAWF Training, Dept of Army, June 2005 - June 2006 • Customer Outreach ü DFAS Road Show, Kirtland AFB, NM, March 23, 2005 ü DFAS Open House, Columbus, OH, April 13 -14, 2005 ü National Association of Credit Managers (NACM), Las Vegas, NV, April 20 -22, 2005 ü DFAS Road Show, Brooks AFB, TX, May 4, 2005 ü DFAS Road Show, Petersen AFB, CO, May 18, 2005 ü NACM, New Orleans, LA, June 13 -15, 2005 3/18/05 Integrity - Service - Innovation 11

For More Information. . . • WAWF vendor training on-line registration form http: //www. dfas. mil/commpay/vptraining. htm • WAWF training web-site http: //www. wawftraining. com • WAWF production web-site https: //wawf. eb. mil • EDA web-site http: //eda. ogden. disa. mil/ • DFAS e-Commerce web page http: //www. dfas. mil/ecedi/ • WIn. S web-site https: //ecweb. dfas. mil • Vendor Pay Inquiry System http: //www. dfas. mil/money/vendor 3/18/05 Integrity - Service - Innovation 12

Additional Outreach Sessions Federal Government Receivables & Research Bureau (FGRRB) • • • • Tinker AFB, OK, March 23 -24, 2005 Washington, DC, April 13 -15, 2005 Ft Bragg, NC, April 21 -22, 2005 Austin, TX, May 5 -6, 2005 Colorado Springs, CO, May 25 -26, 2005 Las Vegas, NV, June 8 -10, 2005 Huntsville, AL, June 22 -23, 2005 Anchorage, AK, July 14 -15, 2005 * St. Louis, MO, July 20 -21, 2005 New York/New England, August 10 -12, 2005 Norfolk, VA, August 24 -25, 2005 Columbus, OH, September 7 -9, 2005 Los Angeles, CA, September 14 -16, 2005 3/18/05 Integrity - Service - Innovation 13

DFAS Your Financial Partner @ Work 3/18/05 Integrity - Service - Innovation 14