eGov/Mil Newsletter: September 25, 2015
In this Issue:
- PPF Summary
- Unified Carrier Registration (UCR) requirement
- McCain Sets His Sights on Cutting PCS Costs
- Official: Privately owned vehicle contract 'performing very well'
- SDDC Announces Potential Tariff Changes
- DOD & Government Personal Property News & Notes
- DoD Prepares for Possible Shutdown as Congress Wrestles with Budget
- Will FMCSA push to reimplement 2013 restart rules soon? Congress allows it after Sept. 30
The Surface Deployment and Distribution Command (SDDC) held the 2015 Personal Property Forum (PPF) on Sept. 14 at the Sheraton Pentagon City Hotel in Arlington, Va. The meeting, which is normally held in Scott AFB, Ill. area, was moved to allow for greater participation by the Military Services and other key government agencies.
The Agenda/Slides for the PPF can be found on the IAM website.
The following is a list of the major discussion points at the meeting and a summary of the discussion on each topic:
1) Channeling Concept:
The U.S. Transportation Command (USTC) issued a Federal Register Notice (FRN) on Sept. 8 which is soliciting 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 of 2016 and continue for six months through the end of August, 2016.
The basic tenets of the pilot would be as follows:
- Transportation Service Providers (TSP) would bid on four volume moves. The designated channels are to be Washington DC to/from San Antonio, TX and Norfolk, VA to/from San Diego, CA. There will be one award winner for each to/from channel and two backups will also be designated in each to/from channel.
All Domestic traffic within 75 miles of the designated cities would be included in the pilot.
- Approved TSPs are able to 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. It appears that, if the current timeline holds, TSPs will be required to submit bids that are lower than their non-peak season rates and those rates will be effective throughout the entire Volume Move cycle (March – August).
- The award winner will not be affected by any changes in Performance Scores during the duration of the pilot. So, the original award winner will not change during the entire six-month duration.
- No Blackouts or Shipment Refusals will be allowed.
- In order 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 plan describing what assets will be available to support the pilot
- Description of the facilities which 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. IAM encourages its members to issue comments on this proposed pilot program.
What is unclear is how the Short Fuse shipments figure into the requirements.
All TSPs should read the CONOPS for the pilot carefully and consider all of the ramifications of the proposed initiative.
2) Rate Filing Timeline for 2016
The following is the proposed timeline for rate filing in 2016:
- Rd 1 Open – Jan. 11
- Rd 1 Close – Jan. 16
- Rd 2 Open – Feb. 2
- Rd 2 Close - Feb. 10
Make TDLs available no later than Feb. 23, 2016
This appears to be the direction that SDDC is heading. The hope is to make the TDLs available earlier so that earlier booking of Peak Season shipments can occur.
The key is putting the full timeline in place to make all of the necessary “tools” available to the industry in order for them to have all of the information they need to formulate rates, e.g. historical shipment data, International Tender, 400NG Tariff, etc. Those details have not yet been made available.
3) Proposed Performance Period Change
SDDC requested feedback from industry regarding a proposal they put together which would alter the Performance Periods. The proposed change was to change the dates as follows:
Possible Performance Periods
- Jan. 1 - Mar. 31
- Apr. 1 - Jun. 30
- Jul. 1 - Sep 30
- Oct 1 - Dec 31
Industry comments seem to indicate they were not in favor of the proposal. This proposal would force a “split” set of TDLs during the Apr. 1 – Jun. 30 period which crossed over the change in Annual Cycle. In effect it would have added a fifth performance period: May 15 – Jun. 30. This would make for two very short distribution periods which would allow very little penetration of shipment awards outside of the first quality band.
SDDC seemed to understand the industry concerns and it appears that there is little chance that this proposal will gain any traction.
4) Proposed changes to the Qualifications Document (PAM 55-4)
SDDC proposed a number of changes to the Qualifications Document. Some concerns were raised that the actual language for the changes, in some cases, were not reflected in the slides provided for the meeting. A request was made to supply industry with a draft copy of the new 55-4 and the ability for industry to comment on the specific wording. TSPs should review all of the proposed changes.
5) Increased use of Code 2
DOD increased the use of Code 2 by 400 percent (up to almost 8 percent of the total Domestic Market awards) during the 2015 Peak Season. SDDC and the military services saw the greater use of Code 2 as successful and TSPs should expect this trend to continue. SDDC provided some data on the usage of Code 2 by GBLOCs and Channels and hoped to do further data analysis which might help them become more focused in the future regarding the best possible use of Code 2.
Some concerns were raised regarding the recent change in classification of crated HHG by the National Motor Freight Transportation Association’s (NMFTA) Commodity Classification Standards Board (CCSB). Crated HHG have historically received a Class 100 designation. As of September 22, 2015 they will now have a Class 150 designation. How this will affect the cost to move crated HHG via LTL carriers is a question. It is believed that it will cause rates to increase and this would obviously affect Code 2 pricing. How this might affect DOD’s mindset regarding the volume of Code 2 awards is also an unknown at this point.
6) Missed RDDs
SDDC raised concerns regarding what they see as an increase in missed RDDs during the 2015 Peak Season. Their data shows some significant increases in missed RDDs in both the Domestic and International Markets. On the domestic side the industry tied the increases to a number of issues. The change is the refusal policy being one critical factor, as well as, the driver shortage, the new Hours of Service rules, increase in the use of alternative transportation, increased use of electronic onboard recorders (electronic logging devices) and other avenues of increased government oversight of the trucking industry. In the international market, the increases were attributed to the reduction in U.S. flag shipping availability, port congestion at many U.S. ports, increased customs inspections and the lack of foreign flag waiver approvals.
Industry once again asked SDDC to review their baseline transit times in both markets. The current realities do not match the current transit times which in many cases were formulated decades ago under completely different environments.
7) Intrastate Requalification
This appears to be a dead issue. SDDC reviewed all of the documentation provided by industry but in the end felt that removing approvals based on the lack of a physical presence in a state was a bridge too far. It will be interesting to see what if any effect this will have on the possibility of a future requalification in the interstate or international markets.
This issue is also very closely tied to the issue of a future Open Season. It appears that at this point SDDC has no real impetus to hold an Open Season on any level. They indicated they needed to do further research to determine exactly where and if they had capacity needs and until that determination was made no Open Season of any kind is in the offing.
8) Shipment Refusals
This is another issue that appears will remain status quo. Though some discussion took place regarding the possibility of reinitiating shipment refusal in 2016, it really did not seem to resonate with SDDC. They see the removal of shipment refusals as a success in 2015. It reduced the PPSO workload and TSPs seemed to successfully adjust to the increased use of Blackouts to control the flow of shipment volume without huge reductions to the capacity available to DOD.
The fact that Software Change Request (SCR) 6975 – the ability to automatically move refused shipments to the next TSP in line – was instituted in DPS in late July did not seem to persuade SDDC in any way to truly open dialog on reinitiating shipment refusals next summer. They did leave the door open just a crack during the discussion but it seemed clear that shipment refusals are a thing of the past for DP3.
Another issue included in the shipment refusal discussion was the possibility of further enhancing the Blackout capability available in DPS. Destination Blackout capability and enhanced OCONUS Blackout capability were the focus of that discussion. It appears any further Blackout enhancements are not currently on SDDC’s radar.
9) Other Topics
- Pending changes to the International Tender & 400NG – a number of changes are envisioned for 2016. The industry asked for advance copies to review before any changes were made official
- Claims Score – SDDC is pushing for a reintroduction of a Claims Scores (CS) into the Best Value Score calculation. They have given the industry a “blank slate” and asked that industry provide alternatives. SDDC seems bound and determined to bring the CS back!
- Base Access – The Office of the Secretary of Defense (OSD) has had a group working on standardization of base access policies. The focus of that group has been acceptance of the Transportation Worker Identification Credential (TWIC) as an acceptable credential across all of the military services and their installations without any further vetting at the gate. This has been an uphill climb and while the group is still working toward that goal, the chance of universal acceptance seems fairly low at this point.
- Regionalization/PPSO consolidation – This has been an ongoing process for a number of years. The one new thing that we saw coming out of this briefing was that there will now be 10 JPPSO/CPPSO being maintained in CONUS when the end state is reached. Fort Hood, Norfolk and Alaska will remain as CPPSOs. They were initially envisioned to be subsumed by other JPPSOs under the original plan. The process is 81 percent complete and final completion will be accomplished by fourth quarter FY2018.
- The DPS development schedule remains somewhat in flux and a number of new updates to DPS are “pushed to the right.” The development of a “Two-way interface” remains one of industry’s most significant development requests and from the discussion at the PPF that still remains at least three or more years away from becoming a reality.
- Each of the Military Services discussed their individual initiatives and items of concern. Standardization strategies and initiatives were also introduced through a group called the Joint Operations Board (JOB). The JOB will be made up of all of the Services and SDDC. The focus of this group will be to work as “the Joint Personal Property/Household Goods operational/execution working group committed to working together across Government activities and stakeholders in gaining efficiencies and standardization across all program elements of the Department of Defense (DoD) Personal Property Enterprise.”
IAM highly encourages the membership that was unable to attend the PPF to review the Agenda/Slides carefully.
Source: IAM & SDDC
On Sept. 22, the Surface Deployment and Distribution Command (SDDC) issued a message to the industry indicating that they must complete the Federal Motor Carrier Safety Administration (FMCSA) Unified Carrier Registration (UCR) requirement no later than October 7, 2015 or face non-use action.
This is not a new requirement but it is one that seems to have been misunderstood and/or swept under the rug by many stakeholders. Many believe this requirement would only apply to TSPs that owned trucks. That is not the case.
This requirement does not apply to intrastate-only TSPs.
IAM received following additional information from SDDC staff:
“There are many (hundreds) of TSPs who were found to not be in compliance and who should have been. Rather than employ mass non-use, we decided to allow some time for those TSPs who are not in compliance to come into compliance. The message does not apply to those TSPs who are currently in compliance and register on an annual basis.”
All TSPs, other than intrastate-only, must comply, including motor carriers (MC#) and freight forwarders (FF#).
See the SDDC message below for the appropriate link to the Unified Carrier Registration web portal.
SDDC-PP Advisory 15-0134
Date: 22 September 2015
From: AMSSD-PP Scott AFB, IL 62225
To: DoD Approved Transportation Service Providers (TSPs)
Subject: Notification of SDDC Unified Carrier Registration (UCR) review
1. The Surface Deployment and Distribution Command's (SDDC) Personal Property Directorate conducted a UCR review of all TSP's within the program and found several TSP's who were not in compliance with the Federal requirement to register. Please review the UCR's rules and requirements at https://www.ucr.in.gov to ensure you're registered as required.
2. TSP's who meet UCR's requirements must complete registration no later than October 7, 2015 to avoid non-use.
3. Email functional questions and concerns regarding this advisory to firstname.lastname@example.org or contact 618-220-5775 or 220-6789.
4. This message was approved for release by Mr. Daniel Martinez, Chief, Business Processes Division, HQ SDDC
Source: IAM & SDDC
McCain Sets His Sights on Cutting PCS Costs
Sen. John McCain believes it is time for Congress to cut back the costs of moving troops to new duty stations, and he has some ideas of how to do it. Here's a hint: It could mean troops stay put longer and take less when they do move.
Official: Privately owned vehicle contract 'performing very well'
After last year’s moving season was plagued by problems in shipping troops' privately owned vehicles to and from overseas assignments, this year’s season went relatively smoothly, according to officials in charge of the program.
“The contract is performing very well this year,” said Air Force Col. Michael Erhardt, director of the personal property program for the Surface Deployment and Distribution Command.
SDDC Announces Potential Tariff Changes
On Monday, September 14, 2015 the SDDC hosted the 2015 fall Personal Property Forum (PPF). During the meeting, the SDDC introduced the new Rates Team lead, Rosia Lindsey. Ms. Lindsey briefed those in attendance of potential tariff changes they are looking to make to the DP3 tariffs, the 400NG and the International tender. While there were a number of potential changes mentioned, there were some changes that garnered more attention from those in attendance than others.
SDDC MV Courage Update – 9-18-15
SDDC Advisory 15‐0133
Date: 18 September 2015
Subject: Update #5 MV Courage Vessel Incident Affecting Household Goods (HHGs)
To: Destination PPSOs, TSPs, Service HQs, and MCOs
1. Reference previous MV Courage related advisories 15‐0101, 15‐0106, 15‐0109, and 15‐0127.
2. Destination PPSOs and TSPs should ensure widest dissemination of this advisory to impacted DoD Service Members and Civilians.
3. Update on delays to MV Courage personal property shipments. Shipments in the Port of Baltimore and Port of Southampton, United Kingdom will undergo joint inspection between responsible TSPs and their subcontractors Pasha and American Roll‐On Roll‐Off Carrier (ARC) beginning Tuesday, 22 September, 2015.
4. These inspections will include the opening of each box by a surveyor who has been nominated by ARC, as well as an environmental assessment per agreement between ARC and the German Bremen Environmental Authority (BEA).
a. The Joint Personal Property Shipping Office‐Mid Atlantic and SDDC will have representatives overseeing the inspection to ensure items are resealed and property is protected at all times.
b. The purpose of the joint survey is for the TSP and ARC nominated surveyor to establish the condition of the contents of each box within four specific categories:
i. Sound Cargo
ii. Cargo damage not caused by fire (handling, stowage and transportation issues only)
iii. Cargo damage / contamination by the fire that can be repaired, cleaned or decontaminated
iv. Cargo damage / contamination by the fire that cannot be repaired, cleaned or decontaminated, causing health hazards or cargo that could not, even if decontaminated or otherwise remediated, be used for it purpose
c. The surveyor will complete a form confirming that determination which they will provide to the TSPs port agent Pasha. Pasha, as the shipper, is required to provide these forms to the BEA. No cargo will be deposed of without prior agreement from the DoD Service member and TSP, who must be given an opportunity to assess their shipment as required by the Defense Transportation Regulations (DTR) at destination. As required by their agreement with the BEA, subcontractor ARC has enlisted with private environmental companies in both Baltimore and Southampton to ensure that the health and safety of all parties and TSPs will have documentation supporting the events above.
5. Based on the above information, after the inspection TSPs will be required to continue onward movement of the containers to final destination and are required to ensure that property is transported safely and securely as stated in the DTR, Part IV and Claims and Liability Business rules.
6. TSPs should coordinate the inspection with the destination PPSO/QC/Customer when the property arrives and is ready for inspection, preferably at the destination warehouse. PPSOs should make every effort to be available for inspection at either the warehouse or customer residence as appropriate.
7. Paragraph 1.4 of the Defense Personal Property Program Claims and Liability Business rules authorizes PPSOs to direct that TSPs undertake specific mitigation work, or authorize payment for mitigation work, subject to later determination by the MCO of whether the government or the TSP will be liable for the cost. The cost of any such mitigation efforts not paid for by the government will be deducted from the TSP’s maximum liability.
8. As always, DoD Customers with delivered shipments have 75 days from delivery to identify any loss/damage to their shipment. TSPs, PPSOs and MCOs are available to answer any personal property questions as required.
9. PPSOs should ensure that TSPs continue to provide customer updates and support the inconvenience claim process between the member and TSP as needed. PPSOs should also remind customers of the critical role of the Customer Satisfaction Survey opportunity that follows delivery of the shipment.
This advisory is approved for release by Lt Col Todd M Jensen, Director, Personal Property, HQ SDDC
SDDC-PP Advisory #15-0135
Date: 23 September 2015
From: SDDC-PP Scott AFB, IL
To: Military Service Headquarters Representatives, Worldwide Personal Property
Shipping Offices (PPSO) and Transportation Service Providers (TSP)
Subject: Defense Personal Property System (DPS) Scheduled/Extended Outages
Ref: SDDC PP Advisory #15-0132
1. Reminder: Defense Information Systems Agency (DISA), in coordination with the USTRANSCOM Program Executive Office (PEO-T), is conducting monthly maintenance for DPS on 25 September 2015. The system will be unavailable between 9:00 PM Central Daylight Time (CDT) and 1:00 AM CDT, 26 September 2015.
2. Additionally, a Windows Server commercial-off-the-shelf (COTS) upgrade will be deployed on 2 October 2015. DPS will be unavailable for a 12-hour period beginning at 6:00 PM CDT through 6:00 AM CDT, 3 October 2015. Please ensure widest dissemination to all stakeholders.
3. For questions regarding this message, please send an email to: email@example.com.
4. Please report technical issues to the SDDC Systems Response Center (SRC):
b. Telephone: toll free (800) 462-2176 or commercial (618) 589-9445, Option 5
c. Internet: https://www.sddc-srchelpme.com
5. This message was approved for release by Ms. Jill Smith, Chief, Personal Property Systems Integration Division, HQ SDDC.
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 Sept. 7, 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.
DoD Prepares for Possible Shutdown as Congress Wrestles with Budget
The Defense Department was preparing this week for a possible shutdown with just days left for Congress to solve an entrenched federal budget impasse.
Pentagon spokesman Peter Cook said Tuesday that hope remains that lawmakers will strike a deal to fund the government when the fiscal year ends Sept. 30 and insisted the situation was not yet dire enough to warn defense employees of the potential fallout.
Will FMCSA push to reimplement 2013 restart rules soon? Congress allows it after Sept. 30
The current stay of enforcement of the 2013-implemented rules governing truckers’ use of a 34-hour hours-of-service restart could be removed as soon as Sept. 30, 2015, according to the text of the law that temporarily suspended the rules. If the stay is removed, truck operators would again have to include two 1 a.m. to 5 a.m. periods in any use of a 34-hour restart and be limited to using the restart just once a week — regulations suspended last December by Congress.
But before the rules can go back into effect, the Federal Motor Carrier Safety Administration must submit to Congress a report based on a five-month field study on the rules. FMCSA spokesperson Duane DeBruyne says FMCSA is still in the data collection phase of the study and has not yet started to analyze the data. He did not say how long analyzing the data and producing a report on the study would take, but he said the agency hopes to “provide an update on the study schedule soon.”