HomeMy WebLinkAbout17. Agreement with JPMorgan Chase for Procurement Card (P-Card) Program ServicesTO: Honorable Mayor and Members of the Common Council
FROM: Mark A. Rohloff, City Manager
DATE: September 26, 2018
RE: Professional Services Agreement with JPMorgan Chase for Procurement card (P -Card)
Program Services
BACKGROUND
Since 2002 the City of Oshkosh has utilized a procurement card (P -Card) program as an additional
purchasing tool for departments to acquire good and services. In March of this year we moved the
management of the P -Card program to U.S. Bank based on the understanding from the state contract
specifications that the U.S. Bank P -Card program would meet or exceed our prior P -Card program
provider (JPMorgan Chase-JPMC) system in terms of customer service, import transaction detail and
reconciliation deadlines. The initial term of the state contract with U.S. Bank was set to expire 12/31/18
with the option for two, one-year renewals. Unfortunately, as we transitioned to the new U.S. Bank P -
Card program our staff discovered their system was not as robust or efficient as the JPMC P -Card
program. Attempts to resolve various issues with the U.S. Bank system proved unsuccessful and it was
the consensus of our Purchasing, IT and Finance project team that it was in the best interest of the City
to terminate the P -Card program agreement with U.S. Bank and re-enter an agreement with our prior
provider (JPMC) to manage this service. The City subsequently provided notice to U.S. Bank terminating
our P -Card program agreement effective October 6, 2018.
ANAI YSTS
Working with JPMorgan Chase we were able to enter into the same prior agreement terms to manage
our P -Card program services covering customer service, fraud protection, card costs and services, card
monitoring and the full confidence that their system can import and export all P -Card transaction detail
into our Tyler Munis ERP system within our scheduling requirements. The JPMC rebate for P -Card
purchases remains the same as prior (about 1.7%) generating approximately $22,000 annually for the City
based on an average charge volume of about $1.3M. The term of this contract is for an initial term of
three (3) years that became effective 9/5/18 with the option for one-year renewal terms.
FISCAL IMPACT
There is no fiscal impact of this agreement beyond the anticipated $22,000 the City will receive annually
from the JPMC P -Card program rebate.
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us
RECOMMENDATION
Section 12-16 of the Municipal Code provides that subject to the approval of the City Manager,
professional services of a specialized nature may be procured without following a competitive bidding
or quotation process. In accordance with Section 12-16 of the code, I am hereby submitting this report
regarding this services agreement.
Please contact me if you have any questions concerning this agreement.
Respectfully Submitted,
Mark A. Rohloff, City Manager