eGov/Mil Newsletter: September 10, 2015

September 10, 2015

In this Issue:

  • Transcom Introduces New Pilot Program
  • New Motor Freight Classification for Crated HHG
  • SDDC – Intrastate Requalification Update Message
  • SDDC Advisory - Interim Customer Satisfaction Survey Access
  • Personal Property Forum Details Finalized
  • DOD & Government Personal Property News & Notes
  • GAO report says PCS costs rising even as number of moves drops
  • Air Force Stops Family Moves to Incirlik Air Base
  • Pentagon Offers Evacuation to 900 US Military Dependents in Turkey
  • Congress returns this week: Highway bill, CSA, hours-of-service suspension among potential trucking rules on the docket
  • Secretary Foxx: Congress ‘Can Achieve a Bipartisan Bill’

Transcom Introduces New Pilot Program

The U.S. Transportation Command (USTC) issued a Federal Register Notice (FRN) on Oct. 8 to solicit comments on a proposed pilot program, “The Household Goods Channeling Concept Pilot Program”, which would dramatically expand on the current Defense Personal Property Program (DP3) “Volume Move” principles. This would be a significant variance from the current DP3 model.

This is a USTC pilot and not one initiated by the DP3 Program Manager, the Surface Deployment and Distribution Command (SDDC). But SDDC is a component command of USTC and will be charged with administering the pilot.

It appears the goal of the pilot is to try and leverage the traffic that DP3 moves in its highest volume traffic channels during the Peak Season in order to procure lower rates and thus cost savings to the government.

The FRN indicates that the pilot would begin in March 2016 and continue through the end of August 2016.

The basic tenets of the pilot would be as follows:

  • Transportation Service Providers (TSP) would bid on two channels in both directions. The designated channels would be Washington DC to/from San Antonio, TX and Norfolk, VA to/from San Diego, CA. All domestic traffic within 75 miles of the designated cities would be included in pilot.
  • Approved TSPs will bid on the traffic by submitting rates into the current Defense Personal Property System (DPS) Volume Move module. Under a winner-take-all concept. The company with the highest Best Value Score (BVS) would be considered the award winner and would be required to handle at least the minimum daily tonnage requirement of 135,000 pounds. TSPs must also submit an estimated maximum daily tonnage capability they agree to service but it can be no lower than the 135,000 minimum. Two other alternate TSPs will be chosen as backups for the winner.
  • To participate in the pilot, TSPs must submit a discount “lower” (sic) than their current discount on file for the same Channel-Code of Service combination.
  • No Blackouts or Shipment Refusals will be allowed.
  • To participate in the pilot a TSP must, in advance of the rate filing for the pilot, submit a plan outlining their ability to manage and support the pilot. This plan must include, among other things:
    • A description of what assets will be available to support the pilot
    • Description of the facilities that will be available to support the pilot
    • An explanation of the agency agreements in place to support the pilot

Many other TSP requirements are detailed in the pilot’s Concept of Operations (CONOPS).

USTC is requesting comments be submitted no later than Nov. 9.

All TSPs should read the CONOPS for the pilot carefully and consider all of the ramifications of the proposed initiative. IAM encourages the membership to submit comments to the FRN in order to make your position on the concept well understood.

Source: IAM & SDDC

New Motor Freight Classification for Crated HHG

The Commodity Classification Standards Board (CCSB) is an arm of the National Motor Freight Transportation Association (NMFTA) that maintains and publishes the National Motor Freight Classification® (NMFC®), a standard that provides a comparison of commodities moving in the Less Than Truck Load (LTL) domestic freight trucking arena.

Commodities are grouped into one of 18 classes—from a low of class 50 to a high of class 500—based on an evaluation of four transportation characteristics: density, handling, stowability and liability. Together, these characteristics establish a commodity’s “transportability.”

A recent analysis of crated household goods (HHG) by the CCSB indicated that the average crated HHG shipment held a density of approximately 6.0 lbs/cu ft. The CCSB has indicated that this density falls in line with density of other commodities at the Class 150 level. For decades crated HHG fell into Class 100.

For that reason the CCSB recommend a class increase for crated HHG to Class 150. After months of appeals from the HHG industry requesting the proposed class change be repealed, arbitration on the matter was held. In a decision dated and served on Aug. 27, the arbitrator affirmed the CCSB’s action. The change in class from Class 100 to Class 150 will officially be effective on Sept. 22.

The huge unresolved question is what effect this change will eventually have on the rates offered by LTL carriers to HHG forwarders moving crated HHG. Only time will tell, but historically changes of this nature have resulted in at least some increases in the baseline tariff rates for LTL carriers.

The larger problem for Department of Defense (DOD) Transportation Service Providers (TSP) in the Defense Personal Property Program (DP3) is that their current rates are locked in until May 14, 2016. If LTL rates are significantly affected by the class change, TSPs have no way to include those increases in their rates.

IAM has been in contact with SDDC regarding the classification change and has entered into discussions regarding possible mechanisms that might be considered if significant cost increases do come to fruition.

Source: NMFTA, IAM & SDDC

SDDC – Intrastate Requalification Update Message

Editor’s Note: SDDC issued the message below on Sept. 10 regarding the Intrastate Requalification process they initiated on May 15. The key items in the message are:

  • After receiving and assessing packages and comments from Intrastate approved TSPs, SDDC has decided to suspend the use of new criteria to requalify currently approved intrastate TSPs

AND

  • SDDC will not remove any responding TSP's intrastate approval based on lack of a "warehouse" or "vehicles" in a particular state.  

IAM appreciates the fact that SDDC listened to the industry feedback on this issue and made the right decision regarding the use of the data they collected during the Requalification process.

Subject: Intrastate Requalification Submission Update

  1. Update to Surface Deployment and Distribution Command's (SDDC) Personal Property Directorate Advisories 15-0093, 15-0103, and 15- 0115.
  2. After receiving and assessing packages and comments from Intrastate approved TSPs, SDDC has decided to suspend the use of new criteria to requalify currently approved intrastate TSPs.
  3. SDDC will not remove any responding TSP's intrastate approval based on lack of a "warehouse" or "vehicles" in a particular state.
  4. TSPs who met the new requirements and applied for approval for the additional states of Iowa, Rhode Island, Vermont, Kansas, and West Virginia were assessed and allowed entry into those states.
  5. In accordance with the Defense Personal Property Program (DP3) Domestic 400NG Tariff, Item 8, paragraph 1, SDDC is removing intrastate approvals for TSPs who did not file rates for two consecutive rate cycles in those states. TSPs who filed rates but were rejected due to the competitive range are exempt from removal.
  6. The data call and information will allow SDDC to continue to better understand industry relationships and we look forward to continuing proactive dialogue in advance of final decisions.
  7. Email functional questions and concerns regarding this advisory to army.sddc.safb.ppqual@mail.mil or contact 618-220-5775 or 220-6789.
  8. This message was approved for release by Mr. Daniel Martinez, Chief, Business Processes Division, HQ SDDC Personal Property.

Source: IAM & SDDC

SDDC Advisory - Interim Customer Satisfaction Survey Access

Editor’s Note: The following message was issued by SDDC on Sept. 4. TSPs have experienced a number of problems viewing their Customer Satisfaction Scores (CSS) via the Interim Customer Satisfaction Survey (iCSS) web application. Please note the “workaround” that has been identified to be able to access your CSS information via the iCSS application.

Subject: Interim Customer Satisfaction Survey Access

1. Due to problems associated with the Interim Customer Satisfaction Survey (iCSS) web application, below are workaround steps that allow TSPs to view their TSP CSS Scores utilizing ICSS, including data for 2016.

2. Once logged in to iCSS, select the report from the drop down “TSP CSS Score”

3. After TSP CSS SCORE is selected, click on “Run Report”. This will load the bottom portion of the screen.

4. Once Performance periods load, select the Performance Period you want to view. Then manually input the “From” and “To” dates that belong to that Performance period, ensuring you follow the correct date formats shown on the screen. “From” and “To” Dates for each Performance Period are below. Selection of an incorrect date range will result in incorrect data.

Data Pull Range Performance Period

1 November – 31 October 1 January – 14 May

1 Jan – 31 December 15 May – 31 July

1 Jun – 31 May 1 August – 30 September

1 Aug – 31 July 1 October – 31 December

5. After you have loaded the correct dates, select “Run Report”. Data should load.

6. If you have questions email usarmy.scott.sddc.mbx.icss@mail.mil

7. This message is approved for release by Mr. Danny Martinez, Chief, Business Process Division, HQ SDDC

Source: IAM & SDDC

Personal Property Forum Details Finalized

The Surface Deployment and Distribution Command (SDDC) have finalized the plans for the 2015 fall Personal Property Forum (PPF).

The PPF will be held on Sept. 14 at the Sheraton Pentagon City Hotel, 900 South Orme Street, Arlington, Virginia 22204.

The PPF venue is a major change from years past. Previously the Forums have been held in close proximity to Scott Air Force Base which is where the SDDC headquarters are located. In recent years, due to budget cuts, many of the other organizations involved in the Defense Personal Property Program (DP3) have been unable to attend.

Moving the meeting to the Washington, DC area is an attempt to allow for greater participation in the meeting by the military service headquarters, military claims offices (MCO) and other organizations that are stakeholders in DP3.

SDDC Official PPF Message

The hotel has set up a link for hotel registration.

IAM and AMSA are also hosting an industry-only “Post-PPF” the following morning (Sept. 15) from 9:00 – 12:00 noon at the same hotel. Attendees will have an opportunity to review what was discussed the previous day and offer up any additional perspectives that were not shared during the PPF.

Source: IAM & SDDC

DOD & Government Personal Property News & Notes

IAM announces Military News and Resources Page

IAM is proud to announce its new Military News and Resources page, which lists military-based information in an easy-to-navigate tabbed format. In addition, IAM is linking to SDDC Personal Property updates and categorizing them by topic. Currently, on the SDDC website, these updates are hard to find and are organized chronologically – not a very user-friendly way to display information. This new system on the IAM site should make it easy for IAM members to easily find the important information they need. Contact Carl Weaver with questions.

Fuel Surcharge for Period 9/15/15 to 10/14/15

The price of fuel was $2.53 per gallon as reported on Monday, September 7, 2015 making the upcoming FSC rates for the period 9/15/15 through 10/14/15 as follows:

DOD GBL Domestic HHG / International HHG – 1%

GSA Domestic HHG – $0.00

GSA International HHG and BAG – $0.00

NOTE – There is no fuel surcharge applicable for the specified period. The baseline rate that is used to calculate the fuel surcharge adjustment is $2.999. With the reported cost of fuel now below that baseline amount, a fuel adjustment does not apply.

GAO report says PCS costs rising even as number of moves drops

The average cost of moving a servicemember to a new duty station ballooned by 14 percent over the past 14 years, according to a report released Wednesday by the Government Accountability Office.

Even as the number of permanent-change-of-station, or PCS, moves dropped by 12 percent from 2001 to 2014, the costs rose from $3.8 billion to $4.3 billion.

Read the Full Story

Air Force Stops Family Moves to Incirlik Air Base

The Air Force has suspended the move of U.S. service members’ families to Incirlik Air Base in Turkey in light of increased worries of violence in the region.
 
The announcement, via a news bulletin issued Friday afternoon, comes a day after the Defense and State departments decided to offer dependents at Incirlik and nearby Adana the option to fly back to the States.

Read the Full Story

Pentagon Offers Evacuation to 900 US Military Dependents in Turkey

The Defense Department announced Thursday that up to 900 mostly Air Force dependents were being offered voluntary evacuations from the Incirlik airbase in Turkey, which the U.S. began using last month to conduct airstrikes against Islamic State militants in Syria.

Pentagon Press Secretary Peter Cook did not point to any specific threats made against the huge Incirlik base, where about 5,000 U.S. personnel are stationed, but said the action was being taken "out of an abundance of caution" as unrest spreads in the region.

Read the Full Story

Congress returns this week: Highway bill, CSA, hours-of-service suspension among potential trucking rules on the docket

Both chambers of Congress resume work this week coming off of lawmakers’ annual August recess, and both have several major trucking regulatory reforms included in legislation that likely will see action before year’s end.

Read the Full Story

Secretary Foxx: Congress ‘Can Achieve a Bipartisan Bill’

With about a week to go before a House transportation panel takes up a multiyear highway bill, the country’s top transportation officer said the timing is right for both chambers of Congress to finally approve such legislation. “I firmly believe that on a bipartisan basis we are in a moment where Congress can achieve a bipartisan bill that helps us carry the work forward,” Transportation Secretary Anthony Foxx said Sept. 9 at the National Press Club.

Read the Full Story