eGov/Mil Newsletter: February 12, 2016
In this Issue:
- Issues Continue to Plague the 2016 DP3 Rate Filing
- Channeling Concept Pilot Update
- Navy Issues Dates for their “Household Goods Industry Days”
- IG finds vast improper payments in DoD contract to move military members’ cars
- Army strength cut by nearly 5,000 in December
- Thousands of Navy jobs to be cut in fiscal 2017, sources say
- DOD & Government Personal Property News & Notes
- U.S. Trucking - 6 Regulations to Watch in 2016
- DOD requesting 3,000-5,000 more troops for Europe in FY17 budget
Issues continue to plague the 2016 Defense Personal Property Program (DP3) rate filing. Though the issues seem to have been relatively small, problems have popped up in every single step of the process.
- Round 1 started on time but was extended due access issues to the Defense Personal Property System (DPS) for several of the rate filing companies that service the industry. The Surface Deployment and Distribution Command (SDDC) also found a few data errors had occurred in DPS during Round 1.
- Those issues were resolved but when the rate rejections following Round 1 were released several companies that were either in non-use or had fallen below the Minimum Performance Score (MPS) received inappropriate rate rejection codes. This error had to be fixed by SDDC as well as an irregularity that caused over 40 TSPs to incorrectly receive rejection notices for ROUND 2. Obviously these were in error as Round 2 had not yet even started.
- Those issues were eventually resolved and Round 2 opened on Feb. 3. After less than a day into Round 2 the plug was pulled. Another issue was identified that caused SDDC to halt the round and indicate they needed to start the process over again.
- Round 2 resumed on Feb. 9 and was scheduled to close on February 15 at 6:00 p.m. CST but a message issued midday on Feb. 11 indicated that SDDC was “temporarily closing RD2 due to a DPS technical issue.”
Before this latest disruption SDDC had been optimistic that Round 2 would close without any further problems and that the final rate rejections, as well as, the establishment of the new Traffic Distribution Lists (TDL) would also be seamless. At this point there is no way to know how long this last interruption to the rate filing will continue.
SDDC had indicated that following the Round 2 rate rejections their current plan was to work on building the May 15 Performance Period TDLs, which they hoped to have ready the evening of Feb. 25. They would then allow one business day (Feb. 26) and the weekend of Feb. 27 and 28 for TSPs to review the TDLs before opening the window for awarding Peak Season shipments on that new TDL sometime on Feb. 29. This plan has now been called into question.
SDDC believes that the awarding of Peak Season shipments (May 15 and beyond) much earlier than has ever previously been done will significantly reduce the number of shipments on hold waiting to be booked with the release of the new TDLs. They hope this will make for a more orderly period following the release of the new TDLs.
This entire schedule is tentative and could be altered if any new issues with rate filing surface. Look for official messages from SDDC regarding this schedule in the very near future.
Source: IAM & SDDC
IAM continues to dialog with SDDC on the currently delayed Household Good Channeling Concept Pilot initiative which was initially announced in early September 2015. IAM staff and leadership have scheduled a meeting with SDDC staff on Feb. 18 and this initiative is one of the key discussion items on the agenda.
IAM is becoming more and more confident that the Pilot will eventually be completely terminated. Indications are that the focus at both SDDC and U.S. Transportation Command (USTC) will be on pushing DP3 toward Full Operational Capability (FOC) rather than splintering the program or moving in different directions.
IAM believes through its efforts this will be a big win for the Association membership and the industry as a whole.
The Naval Supply System Command’s (NAVSUP) Global Logistics Support (GLS) Household Goods Office has announced the schedule for their 2016 “Navy Household Goods Industry Days”.
Navy has now received final approval for only the Mar. 1 meeting in Norfolk but believes that final approval for the other two meeting is not far behind. Mark these dates on your calendar and send in your registration forms!
Tuesday, March 1, 2016
0800 – 1600
Doubletree by Hilton Norfolk Airport
1500 North Military Highway
Norfolk, VA 23502
San Diego, CA
Tuesday, March 15, 2016
0800 – 1600
Anchors Catering & Conference Ctr
2375 Recreation Way/Yama St
San Diego, CA 92136
Tuesday, March 29, 2016
0800 – 1600
Holiday Inn Hotel & Suites
620 Wells Rd
Orange Park, FL 32073
A registration form for the meetings with further details and an agenda is available on the IAM website.
Source: IAM &Navy GLS
IG finds vast improper payments in DoD contract to move military members’ cars
When U.S. Transportation Command transitioned a nearly $1 billion contract to move service members’ vehicles around the world to a new company a year and a half ago, seemingly everything that could have gone wrong actually went wrong. Hundreds of personally owned vehicles were temporarily lost, others were damaged, destroyed or improperly stored. Now it appears TRANSCOM also made up to $162 million in improper payments to its new vendor.
Army strength cut by nearly 5,000 in December
The ravenous drawdown took a major chunk out of the size of the Army in December, with endstrength dropping by nearly 5,000 active component soldiers.
The Army entered 2016 on Jan. 1 with 482,264 soldiers on active duty, which moves the force to within 7,264 soldiers of the endstrength goal of 475,000 troopers for the fiscal year that ends Sept. 30.
Thousands of Navy jobs to be cut in fiscal 2017, sources say
Thousands of active-duty sailors' jobs are set to be downsized in fiscal year 2017 via sailor's normal separations and retirements, dimming what had been a rosy personnel outlook.
The unexpectedly steep cuts will reduce 5,300 billets from current levels by October 2017, according to defense officials familiar with the Navy's proposal, who said the end strength drop runs in tandem with some proposed force reductions to be unveiled with the full budget proposal on Tuesday.
Fuel Surcharge for Period 2/15/16 to 3/14/16
The price of fuel was $2.03 per gallon as reported on Monday, February 2, 2016 making the upcoming FSC rates for the period 2/15/16 through 3/14/16 as follows:
GBL Domestic HHG / International HHG – 0%
GSA Domestic HHG – $0.00
GSA International HHG and BAG – $0.00
NOTE – There is no fuel surcharge applicable for the specified period.
GSA Supplemental Filing Window for the 2015 - 2016 CHAMP RFO to Open
As a reminder, the Supplemental Filing Window of the 2015 - 2016 CHAMP RFO will open on Monday, February 1, 2016. All rate offers submitted in response to the Supplemental Filing Window are due by 10:00 PM Central Standard Time on Monday, March 14, 2016.
Additionally Amendment 3 to the 2015 - 2016 CHAMP RFO dated August 26, 2015 has been posted. Amendment 3 identifies changes to the US Postal Service's non-alternating, Agency Specific Code USPDC.
Sources: IAM, Daycos, Navy & SDDC
U.S. Trucking - 6 Regulations to Watch in 2016
Trucking is undoubtedly one of the most heavily regulated industries in the United States. The past few years have been especially turbulent with the adoption of the 2012 highway bill, the cost increase of freight broker bonds and the controversial hours of service rule, among others.
This year is going to be no exception. Several important laws and regulations have been announced and are awaiting their implementation, affecting motor carriers and freight brokers alike. Let’s look at them in more detail to see what shape trucking industry trends will take in 2016.
DOD requesting 3,000-5,000 more troops for Europe in FY17 budget
The Pentagon plans to sharply increase the number of troops, tanks and artillery positioned in Europe under a budget proposal that calls for a $2.6 billion spending increase aimed at strengthening the military’s posture across eastern Europe.