Presented to:

PDI - Eglin AFB, FLMarch 18, 2005

By: Brenda Locke, Director of Contract Pay Operations

Commercial Pay Business Line

How to Reduce Your Bill

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Not Just a DFAS Initiative...

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Vendor Interaction With EC Tools

1Vendor registers in CCR supplying remittance info and eBusiness POC

2Vendor views contractual dataand vouchers on EDA/NAFI

3Vendor enters invoice andshipment data into WAWF, or transmitsinvoices via WINS or EDI

4Vendor monitors invoice statusand views AOP in VPIS

Vendor receives payment viaelectronic funds transfer (EFT)

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EC Tools for Payment

• Electronic Funds Transfer (EFT) Electronic payment method

mandated by Public Law Funds are routed electronically to

vendor’s bank E-Commerce success story!!!

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Initial State of VP EFT (6/04)

Cost Check

Cost EFT

Average Checks/Month

Total Cost/Month

CHECK

Total Cost/Month

EFT

Cleveland $5.78 $0.0031 21,027 $121,536.06 $65.18Columbus $0.58 $0.1000 1,431 $829.98 $143.10Denver $0.67 $0.0200 7,963 $5,335.21 $159.26Indy $1.19 $0.0600 8,028 $9,553.32 $481.68Kansas City $2.47 $0.0600 1,300 $3,211.00 $78.00

Weighted Average Cost Per Check $3.53

Total Cost Per Year Check $1,685,586.84Total Cost Per Year EFT $11,126.68ANNUAL SAVINGS USING EFT $1,674,460.16

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Progress - EFT Today

• Number of checks reduced - 13,131 per month

• Savings Recognized - $46,352 per month

• EFT Percentage IAPS, CAPS & One Pay May - 83.47% December - 88.15%

• EFT Percentage CPBL May - 91.60% December - 94.30%

• FY05 Goal - 96% Outlook for exceeding goal very positive.

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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): Requires electronic invoicing Requires electronic supporting documentation Identifies three acceptable electronic forms for transmission of

invoices (WInS, WAWF, and EDI); and Identifies six specific situations where using electronic methods is

not required.

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Where are we now?

Source by Quarter - FY04

Source by Service - 4th Qtr FY04

Source by System - 4th Qtr FY04Source 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total

WAWF 25,600 31,655 42,812 59,599 159,666WINS/ECS 84,773 81,700 83,938 80,309 330,720EDI 71,612 62,645 61,795 59,556 255,608GOVCC 23,820 37,083 34,615 34,819 130,337UDF 135,054 110,774 124,126 136,433 506,387FOREIGN $ 4,871 4,557 3,902 4,715 18,045MAN'L/WAWF 2,297 3,450 6,416 8,887 21,050MANUAL 558,067 622,331 655,720 654,812 2,490,930Total 906,094 954,195 1,013,324 1,039,130 3,912,743Manual 565,235 630,338 666,038 668,414 2,530,025Total EC 340,859 323,857 347,286 370,716 1,382,718% EC 38% 34% 34% 36% 35%

Source CAPS IAPS MOCAS One Pay TotalWAWF 5,760 0 45,312 8,527 59,599WINS/ECS 575 0 75,935 3,799 80,309EDI 3,044 0 49,920 6,592 59,556GOVCC 24,089 0 0 10,730 34,819UDF 7 0 0 136,426 136,433FOREIGN $ 0 0 0 4,715 4,715MAN'L/WAWF 1,446 7,208 218 15 8,887MANUAL 220,879 208,746 88,570 136,617 654,812Total 255,800 215,954 259,955 307,421 1,039,130Manual 222,325 215,954 88,788 141,347 668,414Total EC 33,475 0 171,167 166,074 370,716% EC 13.1% 0.0% 65.8% 54.0% 35.7%

Source AF ARMY NAVY USMC DLA ODA TotalWAWF 12,867 15,855 21,134 1,836 6,723 1,184 59,599WINS/ECS 18,044 16,391 38,947 529 4,929 1,469 80,309EDI 16,018 11,290 28,762 110 2,727 649 59,556GOVCC 0 24,089 10,376 0 0 354 34,819UDF 578 21 135,295 2 153 384 136,433FOREIGN $ 468 75 3,566 530 76 0 4,715MAN'L/WAWF 7,105 603 150 774 105 150 8,887MANUAL 222,058 221,912 161,752 11,816 12,684 24,590 654,812Total 277,138 290,236 399,982 15,597 27,397 28,780 1,039,130Manual 229,631 222,590 165,468 13,120 12,865 24,740 668,414Total EC 47,507 67,646 234,514 2,477 14,532 4,040 370,716% EC 17.1% 23.3% 58.6% 15.9% 53.0% 14.0% 35.7%

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Cost Benefits of Electronic Commerce

Billing Rates per Transaction:

Contract Pay Vendor Pay-USAF

Manual $ 32.90 $ 21.48

EC 16.00 3.95

Savings $ 16.90 $ 17.53

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Cost Benefits of Electronic Commerce, Continued

Example: 25,000 Total Transactions

15,000 - 10,000 - Total

Cost: Vendor Pay Contract Pay Cost

100% Manual $322,200.00 + $329,000.00 = $651,200.00

50% / 50% $190,725.00 + $244,500.00 = $435,225.00

100% EC $ 59,250.00 + $160,000.00 = $219,250.00

Potential Savings for 100% EC: $431,950.00

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Upcoming Events

• DFAS Purchases Training Kansas City - April, 2005 Arlington - April, 2005 Cleveland - April, 2005 San Antonio/Columbus - monthly vendor training

• Agency/Service Implementation Support

WAWF Training, Dept of Army, June 2005 - June 2006• Customer Outreach

DFAS Road Show, Kirtland AFB, NM, March 23, 2005 DFAS Open House, Columbus, OH, April 13-14, 2005 National Association of Credit Managers (NACM), Las Vegas, NV,

April 20-22, 2005 DFAS Road Show, Brooks AFB, TX, May 4, 2005 DFAS Road Show, Petersen AFB, CO, May 18, 2005 NACM, New Orleans, LA, June 13-15, 2005

WAWF

Training

!

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For More Information...

• WAWF vendor training on-line registration formhttp://www.dfas.mil/commpay/vptraining.htm

• WAWF training web-sitehttp://www.wawftraining.com

• WAWF production web-sitehttps://wawf.eb.mil

• EDA web-sitehttp://eda.ogden.disa.mil/

• DFAS e-Commerce web pagehttp://www.dfas.mil/ecedi/

• WInS web-sitehttps://ecweb.dfas.mil

• Vendor Pay Inquiry Systemhttp://www.dfas.mil/money/vendor

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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

DFASYour Financial Partner @ Work