eGov/Mil Newsletter: November 6, 2015
In this Issue:
- Comment Deadline Nears for the Household Goods “Channeling” Concept Pilot
- Annual Requirement to Update CIP & COR Announced by SDDC
- SDDC Posts Changes to the 2015 400NG
- New Foreign Flag Waiver Request Form & POC
- E-log update: FMCSA again misses projected e-log mandate timeline, rule still in queue
- Congress Reaches Deal to Cut $5 Billion From Defense Budget
- DOD & Government Personal Property News & Notes
- Army Cutting Civilian Workforce in Line with Active-Duty Drawdown
- House Passes Highway Bill, Sets Up Conference With Senate
- Air Force Shifting Search-and-Rescue Ops From England to Italy
The U.S. Transportation Command (USTC) issued a Federal Register Notice (FRN) on Sept. 8, soliciting comments on a proposed pilot program, “The Household Goods Channeling Concept Pilot Program”, which will dramatically expand upon the current Defense Personal Property Program (DP3) Volume Move principles. This would be a significant diversion from the current DP3 model.
IAM is strongly encouraging members to provide feedback/comments to the FRN.
USTRANSCOM needs to hear from the industry. This concept was developed without industry involvement and they must understand the impact this initiative will have on the industry and the Defense Personal Property Program (DP3).
The TSP requirements are detailed in the pilot’s Concept of Operations (CONOPS). There is a very specific process for providing comments and that process can also be found on the same web page.
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. Then file your comments. Post your comments here.
Below are a number of significant talking points for you to consider when forming your comments to the Federal Register Notice. It is not an exhaustive list but identifies some of the major issues we see with the concept.
- Small Business implications – will small businesses be able to participate considering the very high daily minimums?
- Pulling channels and tonnage from the regular DP3 program – What second and third-order effects will this have not only on the areas directly affected by the pilot program but the program in its entirety?
- What effect will the pilot have on the origin and destination agents in those areas directly affected by the pilot? Will they need to hold trucks, men and warehouse space available for the pilot and reduce capacity available for shipping to other locations?
- The issue of only accepting rates lower than the current rate on file. Those rates, under the current timeline, would be non-peak rates and would be required to be used during the bulk of the peak season.
- Pilot success criteria – not well defined, is price is the only determiner of success cost savings in the channels involved in the Pilot? Will the pilot’s affect on other areas of DP3 be considered?
- Serious capacity issues for the pilot and thus exacerbating capacity issues for the rest of the program
- Very high and poorly defined tonnage minimums. What does a 135,000 lb daily minimum really entail? Is it packing, loading, is storage intake included? Will DPS determine when a minimum has been met?
- Winner-take-all concept puts tremendous pressure on the Pilot award winner and possibly even more on the second and third-level winners. They may be called on to step in for the initial award winner after they had already exhausted their capacity.
- How do short fuse shipments play into the pilot? Is the award winner required to take all traffic, even short fuse shipments? Will short fuse shipments be available to all TSPs or only those involved in the Pilot? The whole issue of short fuse shipments in the pilot remains an unknown.
- Punitive actions and CSS. It seems that both areas will have effects on not only the shipments involved in the pilot but also in all other aspects of DP3.
- Industry was never consulted in any way in the formation of the CONOPS guiding the pilot.
Again, this is not an exhaustive list. There are many variables that need to be pointed out to USTRANSCOM. It is important that your comments reflect your organization’s particular concerns or issues with the pilot.
We don’t want to answer the questions for the government but we do want to raise as many questions and as many issues as possible. They need to fully understand what the impacts will be on all strata of the industry.
Editor’s Note: Each year, Department of Defense (DOD) approved Transportation Service Providers (TSP) must update their Certificate of Independent Pricing (CIP) and Certificate of Responsibility (COR). On Nov. 4, the Surface Deployment and Distribution Command (SDDC) announced the dates for the period during which the annual updates must be completed.
The CIP and COR must be update between Nov. 5 and Dec. 21.
It is critical that each TSP complete the update in a timely fashion. Failure to do so may result in a TSP not being able to file rates for the 2016 Annual Cycle.
Do not wait. Complete these updates today.
SDDC-PP ADVISORY 16-0013
DATE: 4 NOVEMBER 2015
FROM: SDDC-PP SCOTT AFB, IL
TO: DOD-APPROVED PERSONAL PROPERTY TRANSPORTATION SERVICE PROVIDERS (TSP)
SUBJ: ANNUAL QUALIFICATIONS CERTIFICATE OF INDEPENDENT PRICING AND CERTIFICATE OF RESPONSIBILITY REVIEW
1. It is mandatory that all Transportation Service Providers (TSPs) update their Certificate of Responsibility (COR) and Certificate of Independent Pricing (CIP) in the Defense Personal Property System (DPS) before the 2016 rate cycle. Updates can be made starting Nov 5, 2015 and MUST be completed by Dec 21, 2015.
2. Request all TSPs go into DPS to review, update and submit CIP/COR documents for approval. Once completed, you must ensure the documents are in "UNDER REVIEW" status and not in "IN PROGRESS" or "SUBMITTED" status. ONLY the President or CEO can certify and submit the CIP/COR documents.
3. Failure to update your qualification documents will preclude you from filing rates. Questions may be sent to firstname.lastname@example.org.
4. Reminder, please note SDDC will no longer be providing telephonic reminders for the CIP/COR and other qualification documents.
5. This message is approved for release by David Jones, Lead, PP Operational Support and Quality Team, HQ SDDC.
Source: IAM & SDDC
SDDC Posts Changes to the 2015 400NG
SDDC recently posted Change 1 to the 2015 400NG on their website. While there are just a few changes affecting billable items, the majority of the changes are clarification of language within the item codes.
Updates were included in the change for item 35, regarding the application of crating on flatscreen TV’s. The guidance previously left it unclear if a TSP would be able to bill for crating of an actual 60″ flatscreen TV. The change indicated and now consistently reflects in the tariff that flatscreen TVs must be over 60” in order for the TSP to be compensated for crating.
Editor’s Note: The following communication was sent to TSPs on Nov. 3 by the new point of contact at SDDC for Foreign Flag Waiver request. Note the new POC contact information and the new Excel format for submission of a FF waiver request.
I would like to introduce myself as the new POC for HHG FFWs. My name is Todd Goetz, and I work at HQ SDDC in the G33-IS Directorate. I will be the primary POC with Jerome Colton and Cheryl Williams backing me up in processing your requests. Please see a few notes below on our way ahead to streamline the process and effectively get waivers reviewed and responded to more timely. As we are dividing the workload coming in for these requests, I request the subject line be defined to allow us to clearly know what type of request is coming into our organizational email box. All requests should go to the following email address only.
1. Please add the acronym "HHG" Household Goods in the subject line to ALL future requests, effective immediately. As we are transitioning this process to several personal, this will allow for transparency of what type of waiver is being requested and save time.
Example of subject line---
HHG Foreign Flag Approval Request-(followed by any other information you wish to populate in the subject line)
2. Please begin utilizing the attached form to be completed and sent with all requests in addition to the documents you are already providing.
Thank you in advance for your assistance.
Please give me a call if you have any questions or concerns.
Movement Support Center (G33-IS)
1 Soldier Way, 3rd Floor
Scott AFB, IL 62225
Source: IAM & SDDC
E-log update: FMCSA again misses projected e-log mandate timeline, rule still in queue
After pushing Sept. 30 most of the year as the publication date for a Final Rule to mandate the installation and use of electronic logging devices by trucking fleets and drivers, the Federal Motor Carrier Safety Administration’s latest projected date for the rule — Oct. 30 — has also come and gone, and no rule has yet been produced.
The rule is still hung up at the White House’s Office of Management and Budget. It was projected by the DOT in an October-issued report to clear there last Monday, Oct. 26.
Congress Reaches Deal to Cut $5 Billion From Defense Budget
The House and Senate on Tuesday finalized a plan to squeeze $5 billion from defense spending as part of a broader budget deal that heads off possible pay freezes and furloughs.
The savings comes from lower-than-expected military fuel costs, starting the Pentagon's new long-range strategic bomber contract later, cuts in staff and contractors, and smaller increases to Army and Air National Guard operations and maintenance spending.
SDDC What’s New
- 400NG Change 1 – Posted November 2
- PPSO Regionalization Sites for January 1, 2016 – Posted October 29
Fuel Surcharge for Period 11/15/15 to 12/14/15
The price of fuel was $2.49 per gallon as reported on Monday, November 2, 2015 making the upcoming FSC rates for the period 11/15/15 through 12/14/15 as follows:
DOD GBL Domestic HHG / International HHG – 0%
GSA Domestic HHG – $0.00
GSA International HHG and BAG – $0.00
NOTE – You are reading correct above, 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.
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.
Sources: IAM, Daycos & SDDC
Army Cutting Civilian Workforce in Line with Active-Duty Drawdown
The U.S. Army began preliminary talks with Congress on cutting the size of its civilian workforce in tandem with the continuing downsizing of the active duty ranks.
Army officials were meeting with staffers on Capitol Hill on Tuesday to discuss the process and methodology for the civilian cuts suggested by the military.
House Passes Highway Bill, Sets Up Conference With Senate
Legislation that would reform a safety performance scoring program for motor carriers and set in motion efforts to expand the role young truckers may have in interstate commerce passed the U.S. House of Representatives on Nov. 5. The bill passed the House, as amended, by a vote of 363-64. That vote set up a request for a meeting with the Senate so transportation leaders from both chambers may meet to produce a compromised highway bill. The House-passed $325 billion legislation authorizes transportation programs for six years.
Air Force Shifting Search-and-Rescue Ops From England to Italy
The Air Force is moving its search-and-rescue air operations from England to Italy, positioning them closer to potential trouble spots in eastern Europe and Africa.
The 56th and 57th Rescue Squadrons will start to relocate from RAF Lakenheath to Aviano in fiscal 2017. It is part of a series of moves outlined in the European Infrastructure Consolidation review.