The City of Richmond is making major changes to its purchasing card (p-card) program, reducing the number of cards in circulation by more than 80% and tightening restrictions on what they can be used to buy.

Mayor Danny Avula announced the reset Monday, citing the need to overhaul the program and restore public confidence. As of May 9, the number of city-issued p-cards will be cut from 320 to about 60, and purchases will be limited to only those deemed critical to public health, safety or essential services. Cards may also be used in cases where no other payment method is available.

“P-cards are a best practice, but Richmond’s p-card program needs a reset,” Mayor Avula said in a statement. “So today, I’m turning off the vast majority of p-cards and placing new purchasing restrictions on the remaining cards. We’ll take the next few months to reassess, retool and reboot the program in an effective way that really serves Richmonders.”

The Department of Procurement Services (DPS) will lead the reset, which is expected to last 60 to 90 days. During that time, the agency will work with the Institute for Public Procurement (NIGP), a national organization specializing in procurement best practices, to assess the city’s program and recommend improvements.

In the interim, travel-related purchases will not be permitted using p-cards, and city employees will be required to follow existing travel advance and reimbursement policies. Amazon purchases will no longer be allowed, and food purchases are prohibited except when supporting mission-critical programs such as summer food programs and after-school meal services.

Department directors will no longer be issued cards, a move officials say will allow them to focus more on purchase approvals rather than direct spending.

The city contracted NIGP to conduct an independent review of the p-card program on April 22. The group is expected to provide a full set of recommendations for improving the city’s procurement practices following its assessment.

“My team and I are absolutely committed to creating the most efficient procurement p-card program as possible — for the City of Richmond, the people we do business with and the residents we serve,” said Rene Almaraz, director of the Department of Procurement Services.

In preparation for the program’s relaunch, DPS will revise policies and procedures based on the recommendations from NIGP, provide training for staff, and implement an AI-supported third-party auditing tool. The department also plans to investigate new revenue opportunities through the rebate structure, evaluate other p-card providers, and update city policies related to travel and discretionary spending.

The reset period will end only after all updated policies have been implemented, staff training is complete, and a decision has been made regarding the card provider. City officials say the new p-card policies will be made public once finalized.