Cass Information Systems Receives GSA Multiple Award Schedule Contract for Freight Audit and Payment

Rhea-AI Summary

Cass Information Systems, Inc. (Nasdaq: CASS) has been awarded a Multiple Award Schedule contract by the General Services Administration (GSA). This pre-approval allows U.S. government and federal agencies to easily contract Cass for freight audit and payment services across all transportation modes.

As a leading global payment solutions provider, Cass processed $90 billion in payables in 2023, including $38 billion in transportation payables. Mark Campbell, president of Cass Government Payables, highlighted the benefits for agencies adopting this solution, including enhanced financial control, complete spend visibility, and an optimized, automated process from invoice receipt to payment and reporting.

The contract also offers improved cash flow for both agencies and their transportation service providers. For more information, interested parties can visit the Cass Government Payables website.

Positive

• Awarded GSA Multiple Award Schedule contract for freight audit and payment services
• Processed $90 billion in payables in 2023, including $38 billion in transportation payables
• Potential for increased business from government and federal agencies
• Offers enhanced financial control and spend visibility for agencies

Negative

• None.

Insights

Government Contracts Specialist

This GSA Multiple Award Schedule contract is a significant development for Cass Information Systems. It opens up a vast new market in the government sector, potentially leading to substantial revenue growth. The U.S. government is one of the world's largest spenders on transportation, making this an immense opportunity.

The contract's pre-approved nature streamlines the procurement process, giving Cass a competitive edge in securing government contracts. This could translate to a steady stream of long-term, high-value contracts. Given Cass's impressive $90 billion in processed payables in 2023, they have demonstrated the capacity to handle large-scale operations, which should instill confidence in government agencies.

However, investors should note that government contracts often come with stringent compliance requirements and potentially lower margins compared to commercial contracts. The impact on Cass's bottom line will depend on their ability to efficiently scale their operations to meet government demands while maintaining profitability.

Financial Analyst

Cass Information Systems' new GSA contract is a positive catalyst for potential revenue growth. In 2023, the company processed $38 billion in transportation payables, showcasing their expertise in this domain. The government sector represents a significant expansion opportunity, potentially leading to a substantial increase in transaction volume and revenue.

Investors should consider the following financial implications:

• Potential for increased recurring revenue from long-term government contracts
• Possible margin pressure due to competitive government pricing
• Increased operational costs to meet government compliance standards
• Potential for improved economies of scale as volume increases

While the immediate impact on financials may be , the long-term prospects are promising. This contract could serve as a foundation for sustained growth in the government sector, diversifying Cass's revenue streams and potentially enhancing shareholder value over time.

The world’s leading commercial solution is now approved for use by U.S. Government agencies

ST. LOUIS--(BUSINESS WIRE)-- Cass Information Systems, Inc. (Nasdaq: CASS) (Cass), a leading provider of global payment solutions, has received a Multiple Award Schedule contract with the General Services Administration (GSA).

This pre-approved contract enables government and federal agencies to efficiently award business to Cass for freight audit and payment services for all transportation modes. Cass, a provider of payment solutions for diverse spend categories, processed $90B in payables in 2023, including $38B in transportation payables.

Mark Campbell, president of the Cass Government Payables group, noted, “Agencies who adopt this solution gain incredible benefits, including layers of financial control, complete spend visibility, and an optimized, highly automated process that spans from invoice receipt to payment and reporting. Additionally, they and their transportation service providers gain the benefit of optimized cash flow.”

To learn more, visit https://www.cassinfo.com/government-payables.

About Cass Information Systems

Cass Information Systems, Inc. is a leading provider of integrated information and payment management solutions. Cass enables enterprises to achieve visibility, control and efficiency in their supply chains, communications networks, facilities, and other operations. Disbursing over $90 billion annually on behalf of clients, and with total assets of $2.3 billion, Cass is uniquely supported by Cass Commercial Bank. Founded in 1906 and a wholly owned subsidiary, Cass Commercial Bank provides sophisticated financial exchange services to the parent organization and its clients. Cass is part of the Russell 2000®. More information is available at www.cassinfo.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241002210567/en/

Tim Dolan

314.304.8859

tdolan@cassinfo.com

Source: Cass Information Systems, Inc.

FAQ

What is the significance of Cass Information Systems (CASS) receiving a GSA Multiple Award Schedule contract?

The GSA contract allows U.S. government and federal agencies to easily award business to Cass (CASS) for freight audit and payment services across all transportation modes, potentially increasing the company's government sector business.

How much in payables did Cass Information Systems (CASS) process in 2023?

Cass Information Systems (CASS) processed $90 billion in payables in 2023, including $38 billion specifically in transportation payables.

What benefits does Cass Information Systems (CASS) offer to agencies through its freight audit and payment services?

Cass (CASS) offers agencies enhanced financial control, complete spend visibility, and an optimized, automated process from invoice receipt to payment and reporting. It also provides improved cash flow for both agencies and their transportation service providers.