Department of Energy is First in Gsa Smartpay2 Program to Use J.P. Morgan’s Single-Use Accounts to Streamline Payments and Increase Rebates

Major DOE Contractor, CH2M-WG Idaho, LLC, Leveraging Single-Use Accounts to Pay Vendors More Quickly, Increase Security and Improve Accounts Payable Processes

NEW YORK, July 26, 2011 — J.P. Morgan’s Commercial Card Solutions unit today announced that its client, the Department of Energy, has expanded its GSA SmartPay2 charge card program by enabling one of its major contractors, CH2M-WG Idaho, LLC (CWI), to use J.P. Morgan’s Single-Use Accounts solution to make electronic card payments to its vendors. As a result, CWI pays vendors more quickly, continues to reduce its paper-based payment processes, further increases payment security, and reaps the benefit of collecting financial rebates. CWI expects to have more than 100 of its largest vendors accepting Single-Use Account payments by year-end.

The Department of Energy, through CWI, is the first agency within the GSA SmartPay2 program to leverage J.P. Morgan’s Single-Use Accounts (SUA) to increase financial rebates and further streamline procure-to-pay processes. SUA helps expand CWI’s SmartPay2 program participation by including large-dollar payments. In addition, CWI has found SUA to be an easy-to-adopt alternative to check, ACH and wire payments.

J.P. Morgan’s SUA is an electronic payables tool that provides customers with the flexibility, float and rebate of a purchasing card while delivering powerful security, antifraud and reconciliation features. SUA can be used to streamline the accounts payable process by providing an electronic replacement for paper check payments. In addition, SUA can be used to execute payments for core business processes such as eProcurement, B2B travel payments, warranty or insurance claims or other critical business activities. With SUA, instead of having a general virtual account number for all of an organization’s charges, the payee receives a unique 16-digit account number for each single payment with purchasing controls embedded in the system. This account number is active for only a defined amount and time frame and is electronically matched to pre-purchase information.

“By using SUA, our purchasing agents and payment managers do not have to worry about unapproved spending or overcharges,” said Glenda Arave, Purchasing Card Organizational Program Coordinator (OPC), CWI. “Reconciling each SUA payment to the original purchase request is automatically performed through J.P. Morgan’s PaymentNet account management system and CWI’s internal accounting system. SUA also streamlines our accounting processes as it helps eliminates checks, postage and manual payment reconciliation.”

“SUA brings great benefit to government agencies as you can take payments that were historically made by paper check or ACH and move the spend to the GSA SmartPay2 program. It is a simple way to dramatically increase program spend volumes,” said Molly Walsh, managing director, GSA Program, J.P. Morgan. “J.P. Morgan also brings an added benefit by working with agencies to analyze accounts payable processes, identify vendors willing to move to electronic card payment, and thus earn higher rebates.”

While CWI has not made SUA mandatory for its vendors, it has become the preferred method to pay vendors in its accounting system, and the company is encouraging new vendors to accept SUA as their payment method.

The GSA SmartPay^® program, implemented in 1998, is used by federal agencies and organizations to obtain purchase, travel, fleet and integrated charge card services. J.P. Morgan has been a GSA SmartPay^® card provider since the original master contract. The Bank currently serves 34 federal agencies and organizations that participate in the GSA SmartPay program, representing more than 650,000 cardholders.

To find out more about Single-Use Accounts, visit www.jpmorgan.com/visit/singleuseaccounts or for information on other J.P. Morgan Commercial Card Solutions, visit www.jpmorgan.com/commercialcard

About J.P. Morgan Commercial Card Solutions
J.P. Morgan has offered commercial card solutions for more than 25 years. The Bank currently serves more than five thousand public and private sector clients and more than six million cardholders. The firm offers programs in nearly 100 countries and 31 currencies and continues to expand. According to The Nilson Report, J.P. Morgan is the leading issuer of Visa/MasterCard commercial and purchasing cards in terms of dollar volume. J.P. Morgan offers the world’s most widely accepted card with coverage at more than 31 million outlets worldwide.

About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.2 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about the firm is available at www.jpmorganchase.com.

About CH2M-WG Idaho, LLC (CWI)
CH2M-WG Idaho, LLC combines the capabilities of CH2M HILL and the Washington Division of URS Corporation (formerly Washington Group International), leaders in risk reduction and accelerated cleanup of large, complex nuclear facilities. In March 2005, the U.S. Department of Energy selected CH2M-WG Idaho, LLC to lead the safe, environmental cleanup of its Idaho National Laboratory site, located approximately 40 miles west of Idaho Falls. The site's 50-year role in energy and defense missions left behind contaminated sites and radioactive wastes posing risks to workers, the public, and the environment. To mitigate these risks, CWI is decommissioning and dismantling more than 200 excess structures including three reactors; stabilizing and providing interim storage of spent nuclear fuel; removing high-level waste from underground tanks, treating the waste, and dispositioning the tanks; and removing targeted buried waste.