eGov/Mil Newsletter: April 25, 2014

April 25, 2014

In this Issue:

  • SDDC Issues Clarification on International Management Roles
  • Problems Submitting Financial Reports
  • Shuttle Update
  • Dozens Denied Navy Base Access Due to Past Crimes
  • News from the Daycos Weblog
  • DOD & Government Personal Property News & Notes
  • New Company to Handle Shipping Private Vehicles

SDDC Issues Clarification on International Management Roles

For almost two years IAM has been trying to convince the Surface Deployment and Distribution Command (SDDC) of the need to issue a clarification regarding the practice of "management" of International Transportation Service Providers (TSP) in the Defense Personal Property Program (DP3).

Over the last few years a trend has developed where some TSPs approved in either the international household goods (iHHG) market and/or the international unaccompanied baggage (UAB) have outsourced most or all of their shipment management functions to another entity.

This trend is very similar to the one that is entrenched in the DP3 Domestic Market but with one distinct difference. The international markets operate under the rules covered by the Common Financial and Administrative Control (CFAC) doctrine. This doctrine has been in effect in the Department of Defense's (DOD) International HHG Markets for decades and its rules seemingly would prohibit the outsourcing of shipment management functions.

A number of IAM members reached out to the Association seeking clarification. Some believed the practice to be a CFAC violation while others believed that there was no prohibition in place. That was why IAM went to SDDC seeking clarification on the issue. Until all TSPs fully understood the rules under which they were operating, an unlevel playing field existed. Some TSPs were gaining a competitive advantage over others depending on the model they were operating under.

On April 16 SDDC finally issued that clarification. IAM believes that the follow SDDC message clearly indicates that the practice of TSP management in the international markets, as most within industry understand it, is prohibited.

SDDC-PP Advisory 14-0052
DATE:  16 April 2014
TO: Transportation Service Providers (TSP)
SUBJ: Management Roles/Outsourcing International TSP Responsibilities

1.  It has been requested for SDDC to provide clarification, as to what responsibilities an International TSP can outsource.  DOD approved TSPs are solely responsible for any shipment awarded to them regardless of what shipment function they outsource. TSPs must file their own rates and Certificate of Independent Pricing (CIP) and Certificate of Responsibility (COR) certifications, of which are never outsourced.

2. The following services must be performed at the offices of the carrier independent of any other person, firm, or corporation: shipment  management; coordinating operational functions; selecting and executing necessary agreements with origin and destination agents, port agents and general agents overseas; and paying origin/destination agents, underlying carriers, port agents, and general agents overseas for services rendered.

3.  Examples of current acceptable outsourcing practices are for claims processing, billing and invoicing, and customer service. Outsourcing of all TSP functions (e.g. brokering) is not allowed in the DP3.

4.  Please send questions or concerns relating to this advisory to or call (618) 220-6789.  

5.  This message was approved for release by CAPT Aaron Stanley, Director, Personal Property HQ SDDC.

Source: IAM & SDDC

Problems Submitting Financial Reports

SDDC requires that all Transportation Service Providers (TSP) submit their annual financial reports via the Defense Personal Property System (DPS) no later than 150 days following the close of the TSP's fiscal year. Since most TSPs follow the calendar year as their fiscal year, this year most reports are due no later than May 30, 2014.

Currently a known problem exists regarding the submission of the financial information. TSP financial representatives are not able to save the information that they are trying to submit in DPS. At the recent Personal Property Forum (PPF) the DPS Program Manager, Lt. Col. Gina Prevett, indicated that that a solution for this problem would be installed with the DPS Release 1.6.9, which was supposed to go into the system the night of April 18. That did not happen. The release was delayed, so the problems associated with the submission of financial data continue.

IAM learned on April 21 that DPS Release 1.6.9 will be combined with the 1.6.10 release and both releases are currently scheduled to move into the system the evening of May 2. If these fixes to the system are successful then the first business day that a TSP's financial representative will be able to successfully submit data will be May 5.

The concern now is that, if the fix is successful, all TSPs will have only 25 days to complete the submission of their financial data without facing stiff penalties, to include disqualification from the Defense Personal Property Program (DP3), if they do complete their submission within the 150-day window.

IAM has already been in communication with SDDC and the DPS Program Office and voiced concern regarding this situation. We will continue to monitor the progression of a successful fix and will endeavor to ensure that all TSPs have sufficient time for submission of the required financial documentation.

Editor's Note: This item was posted in the IAM Social Café Tuesday April 22. Be sure to check the Social Café every day for the latest DOD/Government news.

Source: IAM, DPS Program Office & SDDC

Shuttle Update

For over a year the subject of Notices of Overcharge (NOC) being issued by the General Services Administration's (GSA) Audit Division for shuttle services has been one of the most contentious topics confronting the DOD HHG industry.

The industry believed that if a shuttle authorization was obtained by the governing transportation office then there should be no question that they would be paid for the service.

In the past year GSA has taken a much closer look at shuttle services and in conjunction with SDDC helped develop a set of specific criteria that must be followed in order for shuttle services to pass through the GSA post-audit review without being considered for a NOC for not being a valid service. The criteria are:
  • A pre-approval must be requested in advance of the service, with a detailed explanation in DPS regarding why the service is required.
  • A Transportation Office (T.O.) approval of request via DPS
  • Member's signature on DD 619/619-1 indicating the service was in fact performed or onsite inspection by T.O. personnel.
  • Truck-to-truck transfer must occur.
Documents that can be used as supporting evidence that a shuttle did occur:
  • Dispatch logs indicating the driver and equipment that was used to perform the truck to truck transfer, with dates.
  • Weight tickets from a larger vehicle, not the smaller vehicle.
  • Re-weigh tickets is one was requested.
  • Equipment rental receipts, if utilized.
The scenarios under the greatest scrutiny are shuttles used for shipments coming out of storage in transit (SIT). A truck-to-truck transfer still must occur. Multiple trips from a warehouse to a delivery point do not constitute a shuttle. It is critical that all shuttles on deliveries from SIT must be fully documented with the critical element being a truck-to-truck transfer.

Source: IAM, GSA& SDDC

Dozens Denied Navy Base Access Due to Past Crimes

Apr 21, 2014

NORFOLK, Va. -- Dozens of transportation workers have been denied access to Navy bases on the East Coast because of their criminal histories since more stringent rules were put in place following a fatal shooting aboard a destroyer in Virginia, according to figures provided by the Navy.

A civilian truck driver with a criminal record shot and killed Petty Officer 2nd Class Mark Mayo aboard the USS Mahan in March after driving onto Naval Station Norfolk, walking onto a pier and onto the ship's quarterdeck. The Navy said Jeffrey Tyrone Savage disarmed a sailor guarding the ship and used her weapon to fire the fatal shots at Mayo, who jumped between the disarmed sailor and Savage. Savage was later shot and killed by Navy personnel in a shootout aboard the ship.

The Navy said Savage possessed a valid Transportation Worker Identification Credential that could have gotten him access to the base, although he lacked proper paperwork indicating he had a legitimate reason to be there. The civilian gate guard who allowed Savage to drive onto base has been placed on administrative leave.

The credential Savage had the night of the shooting is issued by the Transportation Security Administration to people such as truck drivers who need unescorted access to ports and military installations.

Those who commit certain crimes are prohibited from having a TWIC card, but the crimes Savage committed didn't fall under any of them.

Savage's criminal record included pleading guilty to voluntary manslaughter in Charlotte, N.C., in 2008 for shooting a friend in a car and leaving his body on the side of an interstate. Prosecutors originally charged Savage with murder and intended to seek the death penalty if he didn't plead guilty to the lesser charge. Savage's criminal history also includes possession with intent to distribute crack cocaine.

After the shooting aboard the Mahan, the commander in charge of Navy installations for most of the East Coast issued new rules prohibiting anyone with a felony in the past 10 years from using a TWIC card to get onto base. Under the new rules, Savage would not have been allowed onto Naval Station Norfolk.

Figures provided to The Associated Press show that in the first three weeks the new rules were in place, 48 people were denied access to Navy installations in Virginia, New Jersey, Connecticut and Rhode Island. During the same time period, 1,018 people used a TWIC card to try to gain access to the 12 installations in those states that the Navy is tracking statistics on TWIC card entry denials.

Joint Expeditionary Base Little Creek-Fort Story in Virginia Beach had the most denials, with 21 out of 198 TWIC card uses. Among other things, the base is home to amphibious ships that transport Marines and Navy SEAL teams.

Under the new policy, the National Crime Information Center database is now checked for any criminal history or outstanding warrants that are grounds for denial. In addition to the ban on felonies in the past 10 years, no access for TWIC card holders is allowed for anyone who has a misdemeanor conviction within the last five years for crimes of violence; larceny; drugs; habitual offenders; and conviction for sex offenses.

Beth Baker, a spokeswoman for Navy Region Mid-Atlantic, said the background checks can add anywhere from five minutes to two hours to wait times for those using TWIC cards to gain entry.

The other installations that had TWIC card denials are: Naval Air Station Oceana 2; Naval Station Norfolk 11; Naval Station Newport 1; Naval Shipyard Norfolk 6; Naval Weapons Station Earle 1; Naval Submarine Base New London 2; Naval Weapons Station Yorktown 4.


News from the Daycos Weblog

New Tariffs Take Effect in May
As a reminder to our customers, the updated 400NG and IT-14 tariffs both take effect on May 15, as well as the new GSA RFO tariff on May 1.  While the updates to the new tariffs were pretty minimal, here is a quick rundown of a few changes that TSPs should be aware of.

  • Crates for bulky articles cannot be invoiced to the government.  New wording states 'the crating of bulky articles on Code D shipments is at the discretion of the TSP and no additional cost can be billed to the shipper / government.  
  • Additional guidance on shuttle service was carried into the new tariff, now noting that TSPs should include detailed notes in the preapproval request, covering the circumstances leading to the need for the shuttle, as well as obtaining shipper signatures, validating the completion of the service.  
  • The baseline rates spreadsheet includes a 1.57% rate increase from the previous year.  Also, the peak rate tables for linehaul, Alaska-intra and Alaska waterhaul were removed from the spreadsheet since TSPs will have the ability to file rate discounts for both peak and non-peak timeframes starting in the 2014 rate cycle.
  • A rate increase of 1.57% was listed for services that occur in CONUS locations, along with Hawaii, Alaska, Puerto Rico, and Guam.
  • Verbiage was added to the diversion section, noting that port handling and storage charges may apply to some shipments, but those charges need to be billed for the actual costs incurred, and not based on tariff rates.  The charges must be supported by a copy of the original invoice from the port agent.  
GSA / RFO Tariff Not many billing related updates were included in the new RFO GSA tariff.  However, TSPs do need to keep in mind that the new rates that they have filed will go into effect on May 1.

Sources: Daycos News

DOD & Government Personal Property News & Notes

May 21-22 - Defense Travel and Government Transportation Meeting
NDTA is bringing together members of the military, government, and industry at the Hilton Alexandria Mark Center in Alexandria, Virginia on May 21-22. The meeting will include discussions of issues related to:  
  • DOD Acquisition Policy
  • Interagency Requirements
  • Innovations in Transportation
  • Cyber Security
  • Passenger Travel
  • Household Goods
  • Humanitarian Aid / Disaster Relief
  • Best Practices for Doing Business with the Government
 This is a must attend event for companies and Individuals currently doing business with the US government, or who want to increase their knowledge of potential business opportunities. Please register now at NDTA Defense Travel and Transportation Meeting.

Military Carriers Requested to Confirm Contact Info
As a reminder to military carriers, the industry has created a single website with points of contact to make it easier for military officials and customers to reach you. This effort was coordinated by Enterprise Data Corporation at. With the approaching summer peak season, this would be a good time to check your information to ensure it is still current., which is a free service, lets you add domestic and international points of contact for customer service, SIT, QA, claims and billing inquiries for all the SCACs that you service. If you have not already updated your SCAC profile, your SCAC will display generic contact information obtained from the SDDC database of approved TSPs. Updating your profile is a simple, straightforward process. You only need one login to add/update the contact information for all the SCACs that you service.

If you have questions, need assistance, or wish to request your user name and temporary password, please send an email to

GSA CHAMP Pre-Bid Meeting
Please mark your calendars and plan on joining us for our annual CHAMP RFO Pre-Bid meeting:

When:   August 6, 2014 at 1:00 PM EST
Where:  GSA Headquarters, 1800 F Street NW, Washington, DC
Who:    All approved CHAMP TSPs or those TSPs interested in CHAMP.

We will provide additional information and an agenda prior to the meeting, but wanted to get the date and time to you so that you could make plans to attend.
As we are still working on the agenda and the possible presenters, please contact Robyn Bennett at 816-823-3644 or if there is something specific you would like added to the agenda.

Thank you and hope to see you on August 6th.

DTR Updated
U.S. Transportation Command (USTC) recently updated Chapter 410 of the Defense Transportation Regulations (DTR) to include language related to guidelines for PPSOs and TSPs for when mold or mildew is found in a DOD personal property shipment.

See the updated Chapter 410 language.

Changes to DTR Chapters 401 and 403 as well as the Tender of Service (Appendix B) and Appendix K are anticipated to be released next week - April 29 or 30.

DPS Scheduled Downtimes
From ETA:
  • DPS Users, please be advised that DPS will have a scheduled downtime from 9:00PM CDT on Friday, 25 Apr 2014 until 1:00AM on Saturday, 26 Apr 2014. We appreciate your patience as we continue to work to improve the DPS system and its capabilities to better serve you.
  • DPS Users, please be advised that DPS will have a scheduled downtime from 9:00PM CDT on Friday, 2 May 2014 until 1:00AM on Saturday, 3 May 2014. We appreciate your patience as we continue to work to improve the DPS system and its capabilities to better serve you.
IAM News Feed now available
IAM members can now receive daily industry news stories via an RSS reader with IAM's news feed; in your browser choose "Live Bookmarks," and select where you want the RSS bookmark to live (on the bookmark toolbar on in the bookmark menus).

You can also subscribe by email and receive a daily digest.

If you have questions or need assistance, contact Carl Weaver.


New Company to Handle Shipping Private Vehicles

Apr. 17, 2014

Some troops will have to drive farther to drop off and pick up their vehicles under the Defense Department's privately owned vehicle shipping program, with the closure of seven vehicle processing centers May 1.

The closures are part of DoD's changes to the program that has been awarded to a new contractor, International Auto Logistics of Brunswick, Ga., which officially takes over May 1. The previous contractor, American Auto Logistics, has handled the moving and storage of POVs for service members since 1998. Before that, the government ran the program.

With these closures, 35 vehicle processing centers remain. Four of the 13 vehicle processing centers in the continental U.S. will close: Edison, N.J.; Orlando, Fla.; Richmond, Calif. (near Oakland); and New Orleans. Four are closing or have closed in Europe: Mannheim, Germany; RAF Croughton and RAF Menwith Hill, England; and Seville, Spain.

The VPC in Mannheim was closed earlier because of military reorganization. But the other seven are closing as the result of an analysis of the volume of use, and discussions with service officials about troop levels in those areas.

"The sites that remain are ideal sites for families to catch an international flight" after dropping off their vehicles for shipment, said Navy Capt. Aaron Stanley, director of the Personal Property directorate for the Surface Deployment and Distribution Command, which manages service members' household goods. Two other centers were originally scheduled for closure - Livorno, Italy, and Schweinfurt, Germany - he said, but those decisions have been reversed for now.

The eight VPCs being closed won't accept new vehicles for processing after April 30, but the employees of the previous contractor, American Auto Logistics, will be available at those locations until Aug. 1 to service already processed vehicles until each VPC becomes empty, according to SDDC officials.

In addition, American Auto Logistics' website,, will remain active until all of the vehicles have been delivered. The website for the new contractor, which, like the previous contractor, allows service members to request and track the shipments of their POVs, is

Another 18 VPCs have been established in the same cities where VPCs are currently operating, but at different locations - nine overseas and all of the remaining nine in the continental U.S. Others overseas will continue to operate at the same locations, but under new management with the new contractor.

The 17 VPC locations that are in the same buildings will be vacated by the previous contractor April 30, then closed for all but emergency drop-offs on May 1 and May 2. They will reopen May 5 for all vehicles.

But officials urge military personnel to try to work around that window of time, if at all possible, to provide the additional time needed for the contractors to make the transition. If possible, they ask troops to wait until May 5 or after to drop off their vehicles.

The new contract, awarded Oct. 24, is for $305 million, through Sept. 30, 2015.

"Our focus is for a seamless transition," Stanley said. SDDC officials are meeting daily with International Auto Logistics to ensure as smooth a transition as possible. He said SDDC doesn't see the need for any major changes in the process used to ship and store privately owned vehicles.

International Auto Logistics was formed last year to bid on the contract, said its president and CEO Doug Tipton. However, it's a wholly owned subsidiary of International Auto Processing, which has been in business since 1986, handling the processing of cars for auto manufacturers importing into or exporting out of the U.S. That includes preparation for shipment and storage, and other services such as an accessory component.

"Anything they need to have done before shipping to the dealer, we can do it," Tipton said.

He said IAP handles about 400,000 cars a year through its Brunswick facility, and about another 200,000 for Mercedes through the Mercedes plant in Alabama.

He said the company has set up the new vehicle processing centers.

"We are very happy to be able to serve our service members. We want this to be a smooth, seamless transition for them," Tipton said. "We have a very high emphasis on hiring veterans, so in many cases, it will be veterans serving [service members]."

Tipton said the company has an experienced team of people who have worked in the field before, including some employees of the previous contractor, AAL, and employees from AAL's service provider in Europe.

Also, the company is obligated to offer jobs to the hourly employees who worked on the previous contract, Tipton said. "But we are having trouble contacting them because the incumbent has not made their information available."

Source: Army Times