Federal Manager's Daily Report

Senate Governmental Affairs Committee chair Senator Susan

Collins, R-Maine, and Senator Russ Feingold, D-Wis., have


introduced the Purchase Card Waste Elimination Act of 2004,

a bill to crack down on inefficient and wasteful spending

in the federal purchase card program, a committee statement


“We must assure taxpayers that the federal government, which

shops with taxpayer dollars, is doing the same thing working

families do — paying attention to prices,” said Senator

Collins. “Our legislation requires the Office of Management

and Budget to direct agencies to better train cardholders

and to more effectively scrutinize their purchases. It also

instructs the federal government to increase its efforts to

secure discounts from vendors and to provide agencies with

the tools needed to control wasteful spending.”

The bill coincides with a General Accounting Office report

citing potential annual savings of up to $300 million

through better management of the purchase card program,

and stating that cardholders often lack the information and

training needed to obtain the discounted prices negotiated

by the federal government. Card purchases exceed $16 billion

per year, the report said.

The statement said that by analyzing purchase card data

some agencies have been able to identify fraud, as was the

case with the Department of Defense when it found that a

Navy cardholder used a government purchase card to pick up

two cars, “surgical enhancements,” and a motorcycle.