December 4, 1998




MEMORANDUM FOR: SEE DISTRIBUTION
SUBJECT: Use of Government-Wide Purchase Cards to Pay for Training Valued at or Below $25,000 -- Interim Guidance

As of October 1, 1998, the government purchase card is the authorized method of payment for all commercial training requests using the DD Form 1556 (Request, Authorization, Agreement, Certification of Training and Reimbursement) valued at or below $25,000. The Deputy Secretary of Defense directed this change as part of a reengineering initiative to streamline operations and reduce costs within DoD. On September 25, 1998, the Under Secretary of Defense for Personnel and Readiness (USD/P&R), signed a memorandum directing implementation of this policy no later than October 1, 1998 (see enclosure).

Commanders should take appropriate measures to ensure that all persons authorized to obligate and expend funds by means of the DD Form 1556 have the ability to pay for training using the government purchase card. Document purchase card account information in Block #27 (Accounting Classification) of the DD Form 1556 as follows:

Purchase card image

During the first few months of implementation, as commanders acquire and distribute sufficient quantities of purchase cards, and provide user training, unforeseen situations may justify a minimal number of exceptions to this policy. Consistent with acquisition policy, we recommend that approving officials document the reasons why they cannot pay for the training with a purchase card. They should retain the documentation at the organizational level for potential post audit. The Office, USD/P&R will closely monitor the number of DD Forms 1556 submitted to the Defense Finance and Accounting Service for payment.

Training that costs over $25,000 is subject to the Defense Financial Management Regulation (DFMR) (http://www.dtic.mil/comptroller/fmr/10/), the Federal Acquisition Regulation (FAR), and formal acquisition and contracting procedures. Pending further guidance, the payment method for government training remains inter-agency and governmental fund transfers.

This guidance is subject to revision when DoD issues further implementation procedures. Please advise us of any significant problems you encounter implementing this policy. The points of contact in my office are Stephanie Williams, DSN 221/ COMM (703) 325-1343; Email williams@(email address expired) and John Heath, DSN 221/COMM (703) 325-1342; Email heathj@(email address expired).



//Original signed //
Elizabeth B. Throckmorton
Chief, Policy & Program
Development Division


DISTRIBUTION:
OFFICE, SECRETARY OF THE ARMY (JDPES-W)

COMMANDER
US ARMY, EUROPE AND SEVENTH ARMY
EIGHTH US ARMY
FORCES COMMAND
US ARMY MATERIEL COMMAND
US ARMY TRAINING AND DOCTRINE COMMAND
US ARMY CORPS OF ENGINEERS
US ARMY PACIFIC
MILITARY TRAFFIC MANAGEMENT COMMAND
US ARMY CRIMINAL INVESTIGATION COMMAND
US ARMY MEDICAL COMMAND
US ARMY INTELLIGENCE AND SECURITY COMMAND
US ARMY MILITARY DISTRICT OF WASHINGTON
US ARMY SOUTH
US ARMY SPECIAL OPERATIONS COMMAND
US ARMY RECRUITING COMMAND
US ARMY RESERVE PERSONNEL COMMAND
US MILITARY ENTRANCE PROCESSING COMMAND
SPACE AND MISSILE DEFENSE COMMAND
SUPERINTENDENT, US MILITARY ACADEMY
OFFICE OF THE DEPUTY CHIEF OF STAFF FOR INTELLIGENCE
CIVILIAN PERSONNEL OPERATIONS CENTER MANAGEMENT
AGENCY
CIVILIAN PERSONNEL EVALUATION AGENCY