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:
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).