Citi Captures Defense?s 1.2 Million Travel Card Program

Citibank has been selected to administer the massive U.S. Department of Defense Travel Card program. The program, the largest under the General Services Administration’s umbrella SmartPay 2 master contract, currently has 1.2 million cardholders accounting for 61 percent of government-wide travel spending in 2007.

The U.S. Department of Defense Service Commands covered under the new contract include the Army, Navy, Marine Corps, Air Force and approximately 20 other independent agencies. During fiscal year 2007, the program spent some $4.9 billion.

Citi will work with the Defense Travel Management Office (DTMO) and the DoD Service Commands to develop the travel card program. The DTMO is responsible for establishing strategic direction and managing all commercial travel programs, including the travel card program. The new official travel cards will go live on Nov. 30, 2008.

Two weeks ago, Chase won two government contracts to provide payment card services to the federal government. (“Chase Wins Card Contracts for U.S. Interior, Transportation Departments,” Feb. 7). The contract awards are part of the SmartPay 2 program.

Chase is supplying the U.S. Department of the Interior with more than 63,000 integrated cards that combine purchasing, travel and fleet functionality. Chase will also issue another 25,000 fleet-only cards. Charge volume on the entire contract is projected to exceed $660 million a year and represents the largest single integrated card program in the public or private sector, according to the financial services firm.

Chase also will supply the U.S. Department of Transportation with more than 39,000 charge cards to be used by its employees for travel purchases, under terms of the four-year contract. Transportation charged $130 million on its travel cards in 2006, according to Chase.