The Government saves on processing costs and generates revenue through volume refunds. The amount of refund your agency receives is calculated during task order negotiation.
Types of refunds include:
- Productivity refunds: based on the timeliness and/or frequency of payments to the bank (faster payments = higher refunds)
- Sales refunds: based on the dollar or spend volume during a specified time period
- Corrective refunds: payments made to the agency/organization to correct improper or erroneous payments on an invoice
Agencies must verify their own refunds. You can do this by comparing the base points in the task order with the quarterly refund report received from your bank. If you need a copy of the quarterly report, contact your point of contact at the bank. With GSA SmartPay2, split disbursement will allow agencies to receive productivity and sales refunds for IBA accounts in addition to CBA accounts.