What is a GSA SmartPay Fleet Account?
A fleet account is a type of payment solution, issued by a GSA SmartPay contractor bank, and used to pay for the purchase of fuel, maintenance and repair of government owned/operated motor equipment, aviation (including airports, airbuses, and associated services), small marine vessels and large marine vessels (including ocean going ships, barges, tugs, dredges, and other marine conveyances that are not required to utilize DLA Energy as the required integrated material manager for bunker fuel and associated services).
Program coordinators/ fleet managers assign fleet accounts to vehicles, which may be used by the Federal Government or other authorized employees to make authorized purchases as determined by the agency/ organization.
Examples of authorized purchases include:
- Regular unleaded self service fuel
- Immediately consumable items for vehicles (quart of oil, washer fluid, etc.)
- Required preventative maintenance
- Car washes (not to exceed $25 per month or as determined by your agency)
- Mechanical repairs
Examples of unauthorized purchases include:
- Premium or full service fueling
- Maps, air fresheners, food, etc.
- Buying services in excess of required repairs
- Excessive car washes or details
- Upgrading tires or accessories (may vary depending on specific agency policy)
What is a Centrally Billed Account vs an Individually Billed Account? Why is it important to know the difference?
Because the agency is invoiced for purchases and payments are made directly to the contractor banks by the Federal Government, all fleet accounts are considered Centrally Billed Accounts (CBAs). In contrast, travel cards/accounts and integrated cards/accounts can be either CBAs or IBAs as determined by the agency/organization. Individually Billed Accounts (IBAs) are invoiced directly to the account holder and payment is the responsibility of the account holder, who is then reimbursed by the agency/ organization.
The distinction between CBA and IBA is important when determining state tax exemption. All GSA SmartPay CBAs should be exempt from state taxes. In addition, with a CBA, the Federal Government accepts liability for charges made by an authorized account holder, but is not liable for any unauthorized use. Unauthorized use means the use of an account by a person, other than the account holder, who does not have actual, implied or apparent authority for such use and from which the account holder receives no benefit. When the CBA has been used by an authorized account holder to make an unauthorized purchase, the Government is liable for the charge and the agency is responsible for taking appropriate action against the account holder.