eGov/Mil Newsletter: October 20, 2016
In this Issue:
- U.S. Bank Fee Increase Update #3
- Historical Shipment Data Posted
- Defense Department increases scrutiny of contractors’ supply chain
- DOD & Government Personal Property News & Notes
- IAM Military News and Resources Page
- Johnson Pushes for Cyber Protection Agency
- USTRANSCOM Releases its Strategy for Future Success
The following Surface Deployment and Distribution Command (SDDC) advisory made it official. SDDC has denied IAM’s request for a pass-through charge associated with the recent U.S. Bank transaction fee increase.
Suffice to say IAM believes this to be an unjust decision and is reviewing all of its options. This will be a major discussion item during the 2016 IAM Annual Meeting and attendees will have the opportunity to put their questions in front of the signature to the message, LT Col Todd Jensen, SDDC Director of Personal Property, during Sunday’s (October 23) Military & Government Affairs Panel.
SDDC-PP Advisory 17-0004
Date: 13 October 2016
From: AMSSD-PP, Scott AFB, IL 62225
To: Military Service Headquarters Representatives, Worldwide Personal Property Shipping Offices (PPSOs), and DoD-approved Personal Property Transportation Service Providers (TSPs)
Subject: U.S. Bank Fee Change to the Third Party Payment System (TPPS)
1. This advisory is to inform TSPs of the fee change to the TPPS.
2. U.S. Bank provides TPPS services through a contractual arrangement with USTRANSCOM. The TPPS contract states U.S. Bank may charge TSPs a fee for providing these services, not to exceed 2% of the total invoice amount. The 1.33% transaction fee implemented by U.S. Bank on 1 October 2016 is not in violation of the terms of the contract. U.S. Bank declined USTRANSCOM’s request to delay the adjustment of the fee to coincide with the annual household goods rate filing schedule.
3. Each individual TSP negotiates their fees and terms with U.S. Bank in an agreement, which is separate from the TPPS contract. USTRANSCOM is not part of those negotiations and does not have access to those proprietary agreements. However, USTRANSCOM understands that prior to the fee adjustment, some TSPs paid more than a 1.33% fee, while other TSPs paid less. As a result, some TSPs may be adversely affected by the fee change while other TSPs may realize a cost savings.
4. SDDC and USTRANSCOM considered options presented by TSPs to address the fee change, including a “pass through” and an out-of-cycle household goods rate filing. There is no legal justification for a "pass through" reimbursement, as the TSPs were on notice of the potential fee increase up to a maximum of 2% pursuant to their independent agreements with U.S. Bank. We also determined that an out-of-cycle rate filing event would be impractical as the preparations for the May 2017 rate filing cycle are already in-progress.
5. After carefully examining the concerns raised by TSPs, we have determined this issue is best resolved between U.S. Bank and any impacted TSPs.
6. Please email any questions/concerns to firstname.lastname@example.org.
7. This message is approved for release by the Personal Property Director, HQ SDDC.
Source: SDDC & IAM
The Surface Deployment and Distribution Command (SDDC) has recently posted the historical shipment data for all markets for the 4th Performance Period of 2015 through the 3rd Performance Period of 2016. This is the key data set of shipments that have moved in the Defense Personal Property Program (DP3) in the previous 12 months. Most TSPs use this date to assist them in their rate determination process.
The Historical Shipment Data can currently be found on the SDDC website in the “What’s New” section on the Personal Property homepage.
Source: IAM & SDDC
Defense Department increases scrutiny of contractors’ supply chain
The DOD issued a final rule amending the Defense Federal Acquisition Regulation Supplement and clarifying the scope of the government’s ability to evaluate and exclude contractors that represent “supply chain risks” in solicitations and contracts — specifically those that involve the development or delivery of information technology products and services in national security systems.
Fuel Surcharge for Period 10/15/16 to 11/14/16
The price of fuel was $2.39 per gallon as reported on Monday, October 3, 2016 making the upcoming FSC rates for the period 10/15/16 through 11/14/16 as follows:
GBL Domestic HHG / International HHG – 0%
GSA Domestic HHG – $0.00
GSA International HHG and BAG – $0.00
There is no fuel surcharge applicable for the specified period
There have been some issues with the proper way to send billing documents to the Navy JPPSOs. The following information was sent 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% 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.
GSA Extends 2015 -2016 Rates
The Government Services Administration (GSA) Employee Relocation Resource Center sent the following announcement on September 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 also have an effective date of December 16, 2016.
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.
Johnson Pushes for Cyber Protection Agency
Homeland Security Secretary Jeh Johnson on Wednesday said he is still after congressional approval for a national cybersecurity agency and broader reorganization of his department.
USTRANSCOM Releases its Strategy for Future Success
“In the coming years, we should expect conflicts to cross regional boundaries and potential adversaries to field numerically superior forces with near technological parity.” Gen. Darren W. McDew, commander, USTRANSCOM, said in the strategy. “I am focused on evolving the command in a way that ensures we are able to answer the nation’s call today while simultaneously preparing for the future.”