eGov/Mil Newsletter: September 22, 2016
In this Issue:
- U.S. Bank Fee Increase Update
- Personal Property Forum Summary
- DPS Release 3.4.0
- GSA Extends 2015 -2016 Rates
- Negotiators near deal on defense bill
- Navy Paperwork
- DOD & Government Personal Property News & Notes
- IAM Military News and Resources Page
- Survey Finds Wide Variance in ELD Compliance
The U.S. Bank’s Freight Payment System/Syncada, which is used for processing most U.S. Department of Defense (DOD) transportation invoices, is set to have their transaction fee increase from the current 1.0 percent level to 1.33 percent beginning Oct. 1. U.S. Bank announced the 33 percent fee increase in July well after Transportation Service Providers (TSP) in the DOD household goods arena had filed their rates for the 2016-2017 Annual Cycle.
TSPs will have no way to incorporate this increase in their rates for 7 ½ months. Due to that fact, IAM immediately requested that the Surface Deployment and Distribution Command (SDDC) approve a pass-through charge to account for the 33 percent fee increase until such time that TSPs can account for the increase in their rates.
SDDC is the DOD agency that manages the military’s household goods moving program but the DOD agency that administers the government contract with U.S. Bank and is the true decision maker on the approval of a pass-through is US Transportation Command (USTC). IAM has turned its focus to USTC regarding the approval of a pass-through charge.
As of Sept. 22, although there have been unofficial conversations with SDDC personnel, USTC has remained silent regarding their stance on the possibility of allowing the pass-through. However, IAM has not remained silent.
IAM is using a multi-pronged approached in our attempts to move USTC towards approval. We have engaged through direct communication with all of the decision makers, we have garnered support at the congressional level and we have entered into discussions with our legal representatives to determine what options and tack we will pursue if approval of a pass-through charge is not granted.
We calculate this increase may mean as much as $4,500,000 in additional fees to the HHG industry before these excess cost can be incorporated into our rates. IAM believes it is unconscionable that DOD would expect the industry to absorb this very significant fee increase and will do everything in our power to ensure DOD comes to agree with our position.
The Surface Deployment and Distribution Command (SDDC) held its annual Personal Property Forum on September 13 at the Sheraton Pentagon City Hotel in Arlington, VA.
Approximately 200+ industry attendees, along with key personnel from the SDDC Personal Property Directorate, all of the Military Service Headquarters, the Military Claims Offices, GSA Audits, most of the large Joint Personal Property Shipping Offices (JPPSO), and a few other government agencies attended.
An exhaustive agenda, which included over 130 slides, was place in front of the attendees. However, SDDC kept up a solid pace for the meeting and was able to cover all of the planned topics.
Lt. Col. Todd Jensen, SDDC Director Personal Property, moderated the meeting and opened the discussion with a review of 2016 Peak Season. He used a succession of critical metrics to analyze the positive and negative takeaways from 2016 but characterized 2016 as a “successful Peak Season”.
One of the key points was the 2016 Peak Season shipment volumes. Early Peak Season forecasts indicated there might be a significant reduction in shipment volumes, the Peak Season actually only realized a 1.53 percent drop in shipments. Mid-summer it looked as if the drop may be as much as 5.0 percent or more.
Other Peak Season issues touched on were the industry capacity constraints, the success of releasing the Peak Season Traffic Distribution List a month earlier than in previous years, an increase in punitive actions taken by some JPPSOs, a drop in Code 2 utilization and the drop in the percentage of short fuse shipments.
One of the most contentious issues discussed was SDDC data related to missed Required Delivery Dates (RDD) on direct delivery shipments. The data indicates that missed RDDs reached a high of just over 50 percent during the busiest points in the Peak Season. Industry argued that the data didn’t account for the inability of the industry to back-date delivery dates in DPS and that the data was not in concert with the data provided on the Customer Service Survey (CSS), which indicates that over 92 percent of the CSS respondents indicate they are “Satisfied” or better with the “Timeliness” of their delivery. This is one of the data set that needs more analysis.
SDDC discussed the current Transit Time guides and indicated they are currently under review. Some channels have already undergone a review and have already been increased or have pending changes. Both IAM and the American Moving & Storage Association (AMSA) have formed their own industry groups tasked with analyzing the current transit times guides and asked to work with SDDC in helping to move the review forward.
A lively discussion occurred during the briefing presented by JPPSO-South Central. The JPPSO-SC Deputy to the Commander provided some detailed information focused on the punitive actions taken by the JPPSO in 2015 and 2016. A number of industry attendees pushed back on actions being taken by the JPPSO and questioned whether their methods were effective in truly bringing about a better move experience for the military members moved by their JPPSO.
Base Access continues to be a huge issue and Col. Todd Burnley briefed the group on the current perspective of the Office of the Secretary of Defense (OSD) – Transportation Policy. Col. Burnley has only been in his position for a month but outlined the way ahead for making the Transportation Worker Identification Credential (TWIC) the universally approved identification for all DOD installations. This is still an uphill process and universal acceptance of the TWIC without any further vetting by DOD installations may still be some time in the making.
Ms. Roni McDaniel provided the DPS Deputy Program Manager an update on the Defense Personal Property System (DPS). A discussion of the causes for the recent DPS outages and some possible changes to ensure that a repeat does not occur was the first discussion topic. The current DPS Release schedule for FY16 and 17 was provided as well as a notional FY18 schedule.
Some of the highlights from the schedules were:
- Short Fuse Click Count Fix/Short Fuse shipments not unlocking after 5 min – Dec 2016
- Claims Module Technical Redesign – May 2017
- NTS move into DPS – Late 2017, but will not be put in use at that time.
One key bit of information shared in the DPS briefing is that “Foreign National Access” to DPS will end for some foreign nationals at the end of September 2017. SDDC and the DPS PMO have promised to provide information that is more detailed and the names of specific countries and individuals that will have their access to DPS cutoff.
SDDC is getting into a proactive mode and has issued a “Battle Rhythm” (schedule) for the Annual Rate Filing process. It is a tentative schedule but they hope it will be a template that can be used annually so that the industry understands well in advance when to anticipate each of the critical milestones in the rate filing process. Look at page 88 of the PPF slides to see the tentative schedule.
Some excellent dialog took place at this year PPF but it is hard to point to any concrete DP3 progress that will be a direct result of the meeting.
Source: IAM & SDDC
SDDC-PP Advisory #16-0135
Date: 16 September 2016
From: HQ Scott AFB, IL
To: Military Service Headquarters Representatives, Worldwide Personal Property
Shipping Offices (PPSO), and Personal Property Transportation Service
Subject: Scheduled Outage for Defense Personal Property System (DPS)
1. DPS will be unavailable due to monthly system maintenance on Friday, 30September 2016 from 9:00 PM Central Daylight Time (CDT) to 5:00 AM CDT Saturday, 1 October 2016. The system will be unavailable to all user groups during this time.
2. For questions regarding this message, please email email@example.com.
3. Please report technical issues to the SDDC Systems Response Center (SRC):
a. Email: firstname.lastname@example.org
b. Telephone: Toll free (800) 462-2176; Commercial (618) 589-9445, Option 5
c. Internet : https://src.service-now.com/src
4. This message was approved for release by Chief, Personal Property Systems Integration Division, HQ SDDC.
Editor’s Note: The Government Services Employee Relocation Resource Center sent the following announcement on Sept. 7 to all CHAMP providers indicating that they planned to extend the current 2015 – 2016 rates for 45 days.
As provided for under Section 2-11, Extension of Offer by the Government, of the General Services Administration’s (GSA’s) Centralized Household Goods Traffic Management Program’s (CHAMP’s) 2015–2016 Request for Offers (RFO) dated August 26, 2015, the Employee Relocation Resource Center (ERRC) is extending the expiration date of all rate offers currently in effect under the 2015–2016 RFO by 45 days. As a result, rate offers that were due to expire on October 31, 2016 will now be extended through December 15, 2016.
The 2016–2017 RFO and GSA’s Domestic 500A (GSA500A) Tariff will be distributed during the week of September 12, 2016. Rate offers accepted under that RFO will become effective December 16, 2016 and the GSA500A will have an effective date of December 16, 2016.
In addition, on September 1 GSA issued the second draft of the new domestic tariff. See message below:
On June 15, 2016, the Employee Relocation Resource Center (ERRC) distributed a Draft of the General Services Administration's (GSA's) Domestic 500A (GSA500A) Tariff and requested comments. We have reconciled the comments we received and here is the link to the 2nd Draft of the GSA500A.
The issuance of the Final GSA500A will coincide with the issuance of the 2016-2017 Centralized Household Goods Traffic Management Program's (CHAMP's) Request for Offers (RFO). The GSA500A will become effective when rate offers submitted under that RFO become effective.
If you have any questions, please contact Robyn Bennett at email@example.com or 816-823-3644.
Negotiators near deal on defense bill
Negotiators are closing in on a final defense policy bill, following progress on a key sticking point to merging the House and Senate versions together.
A key difference was that the House bill would authorize shifting $18 billion from the Pentagon's war fund into its base budget. That maneuver would help circumvent budget caps on the Pentagon's budget and raise defense spending.
There have been some issues with the proper way to send billing documents to the Navy JPPSOs. The following information was provided to IAM from MLNQ (JPPSO-HI) regarding billing paperwork:
Supporting documents for the shipments servicing the MLNQ area inbound and outbound, should be sent to the Navy_HHG_Doc@navy.mil e-mail account, please ensure that each e-mail ONLY contains the supporting documents for one shipment, subject line should include the GBL Number and member's name.
If we dispute an item, then the instructions are on the dispute note that states to send it to: JPPSO_PH_VENDOR@navy.mil directly.
It was also noted regarding billing for Bunker Fuel Surcharge:
We also perform 100 percent checks on all Bunker Surcharges and request Ocean Bill of Ladings for all BSC. It would help if all TSPs forward the Ocean Bill of Ladings for our outbound shipments prior to billing the BSC.
Proper Customs Forms for Inbound Motorcycles in DOD Shipments
It has come to IAMs attention that there has been an increase in the number of “custom holds” placed on DOD shipments containing motorcycles due to submission of out-of-date forms.
The current forms (revised in 2014) vary little from the older versions, but US Customs is demanding that the most current forms be used. The fear is that these old forms are being provided to Service Members from “old stock.”
Please be sure you are using the most current forms and destroy all of the older forms in your stock.
- United States Environmental Protection Agency Declaration Form
- Declaration of Importation of Motor Vehicles and Motor Vehicle Equipment Subject to Federal Motor Vehicle Safety, Bumper and Theft Prevention Standards
Fuel Surcharge for Period 9/15/16 to 10/14/16
The price of fuel was $2.41 per gallon as reported on Monday, September 5, 2016 making the upcoming FSC rates for the period 9/15/16 through 10/14/16 as follows:
GBL Domestic HHG / International HHG – 0 percent
GSA Domestic HHG – $0.00
GSA International HHG and BAG – $0.00
There is no fuel surcharge applicable for the specified period.
IAM Military News and Resources Page
The IAM Military News and Resources page provides 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, & SDDC
Survey Finds Wide Variance in ELD Compliance
Logistics provider TransPlace’s carrier survey of preparedness for the 2017 electronic logging device mandate has found a sharp divide between larger and smaller fleets, with 38% of smaller fleets having no immediate plans to install ELDs in their vehicles.