Background:
The City’s current contract with U.S. Bank National Association for procurement card services program (p-card) began in 2015. The objectives of the P-card program are to streamline purchases for the City, reduce the cost of doing business, and increase usage to generate a substantial rebate for the City.
The Procurement Division issued a Request for Proposal (RFP) #22110 on November 29, 2022, for a Procurement Card. The RFP was published through the Public Purchase e-procurement website, which notified (258) potential bidders; (46) accessed the RFP. Five (5) completed proposals were received: Central Bank, Commerce Bank, JP Morgan, United Missouri Bank (UMB), and U.S. Bank National Association.
The proposals were evaluated by a committee comprised of staff from the Finance Department and Power and Light Department. The evaluation criteria included 1) greatest financial to the City, 2) services provided by the proposer, 3) expertise and experience of proposer in providing P-Card Program Services; the proposal is completed and includes responses to all questions and information requests, 4) the proposal follows the format of the City’s RFP.
Each of the five respondents provided understanding and demonstrated experience and ability to provide the services requested by the City. Of the five, U.S. Bank provided the best value, particularly with regard to the rebate.
Previous procurement card benchmark survey study revealed the national average cost to produce a traditional purchase order (sourcing, purchasing, and payment activities) is about $91, while the cost to procure and pay with a P-card is approximately $17, netting an average cost avoidance of $74 per transaction. Increasing the use of P-cards and spend volume through this new contract will generate net results of fewer purchase orders, fewer paper checks written to pay vendors, as well as a substantially larger P-card program rebate.
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