Puchasing Card Award Recommendation

Contract AwardRecommendation

Prepared by Frank CorrisChief Procurement OfficerOhio University

19 Schools have existing PCard Programs Total Volume

$1.25 Billion over a 5 year contract period or $250 M/year

Over 8,700 existing card holders $2.8 M/year in Collective rebate

6 different providers serve existing programs

JP Morgan Chase is the dominant provider

RFP Overview Sent to 27 providers Pre-bid had 9 providers represented 7 Proposals were received + (5 No Bid) Top 2 providers JP Morgan Chase and PNC

were asked to make oral presentations The recommendation by the committee is

unanimous

Award to JP Morgan Chase There is a rebate increase of over $1.3 M per year or $6.5 M during the

initial contract period, compared to the current basis point rebate. Additional income of $125,000 per year rebate or $625,000 during the

initial contract period to IUC-PG to fund other program advancements. Eight (8) schools are currently with JPMC - no implementation or

technology change is necessary. This allows for a more rapid deployment and immediate member savings. Approximately 2,600 card holders are not affected by the

recommendation - JP Morgan Chase is already the issuing bank. Over $111.4 M in annual spend is immediately and positively affected

by the recommendation. The additional rebate increase calculated at $466,000 per year.

Large ticket item threshold is $7,500 (compared to PNC - $4,500).

Award to JP Morgan Chase

Ten (10) schools are currently under contract with other providers and will require some level of change to realize increased savings.Approximately 6,100 card holders will be affected by the

recommendationApproximately $138.6 M in annual spend must be migrated to

obtain savings of approximately $909,000 Implementation team for new schools roll out is prepared JPMC offered $600,000 more than the 2nd place proposal from

PNC

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Volume in Billions ($US)

Purchasing Card Volume - Top 10 Issuers

JPMorgan is the #1 largest Purchasing Card provider

Source: Nilson 6/08 Rankings

JPMorgan Chase vs. the Competition All Categories (1 = Poor, 5 = Excellent)

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DataIntegration

Reporting SoftwareEase of Use

HierarchyMgt.

Account Mgt. Controls CustomerSupport

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Works

Citi

AMEX

US Bank

GE

JPMC

TSI – Treasury Strategies Incorporated – Online Survey of 135 Organizations

Establishment of IUC-PG PCard User group Regional mentoring program to match small

startup programs to larger, more mature programs

Small platform rapid startup program

JP Morgan Chase

Migration Scenario