navsup instruction 4200.94 - NAVAIR - U.S. Navy

NAVSUPINST 4200.9429 June 1999important factors in safeguarding cardholder information.Cardholders should consider using a browser with automaticencryption capability (e.g., MS IE 4.X or NETSCAPE 4.X). Theuser should comply with the authentication and identificationrequirements (passwords, identification, PIN #, etc.) requiredby the commercial vendor from whom the cardholder is acquiringthe supplies.(3) Whether the purchase is made over-the-counter, overthe-phoneor via the internet, the following applies:(a) Regardless of the method in which the cardholderuses their purchase card, the cardholder is responsible forsafeguarding the security of his/her purchase card and accountinformation. The card bears the cardholder’s name and may onlybe used by him/her to purchase authorized supplies or servicesin accordance with this instruction, the GSA SMARTPAY Contract,the activity’s internal operating procedures and thecardholder’s delegation of contracting authority.(b) In order to protect the integrity of theprocess, a minimum two way separation of functions is requiredwhen using the purchase card (i.e. one person making thepurchase and one person accepting and receiving the supplies orservices). If the cardholder is picking up the material at thecontractor’s location, the end user or designated receivingpersonnel should sign for final receipt. In the event thecardholder is the end user, another designated individual mustsign the receipt.If a second individual will not be available, the activityshould have some process to ensure the integrity of the process(i.e. obtaining the AO’s approval in advance, etc.).(c) Merchants should be instructed not to chargesales tax, unless the location of the merchant’s business is ina state that does not afford the federal government a tax-exemptstatus under its state and local laws (e.g. Arizona, Hawaii).(d) The cardholder shall ensure that any fee paid bythe merchant is not added to the price of the items (except inoverseas locations).(e) The cardholder should remind the vendor thathis/her purchase card account may not be billed until after thematerial has been shipped or service provided.(f) Back ordering or delivering partial quantitiesshould be avoided. If an item must be back ordered or a partialquantity accepted the merchant must agree to only bill for theactual quantity shipped.1-10