eGov/Mil Newsletter: December 2, 2016

December 02, 2016

In this Issue:

  • SDDC Release the 2017 Rate Filing Message
  • DOD Customs Clearance Issue
  • 2017 National Defense Authorization Act Includes TWIC Language
  • Trump Taps Former Labor Secretary Elaine Chao to Lead DOT
  • In Compromise, NDAA to Create DoD New Chief Innovator Job, Keep AT&L
  • Change 3 released to the IT-16 and 400NG Tariffs
  • DOD & Government Personal Property News & Notes
  • IAM Military News and Resources Page
  • Judge Blocks Obama Rule Extending Overtime Pay to 4.2 Million US Workers
  • Trump's military will have more troops and more firepower — if he can find more money

SDDC Release the 2017 Rate Filing Message

The Surface Deployment and Distribution Command (SDDC) has released its 2017 Rate Filing Message, which includes a number of key elements of critical importance to industry.

The first of those critical elements is the actual rate filing schedule for 2017:

Rate Filing Dates/Times:

Round 1: 12 Jan 17 (6:00 PM CST) – 20 Jan 17 (6:00 PM CST)

Round 2: 9 Feb 17 (6:00 PM CST) – 16 Feb 17 (6:00 PM CST)

Please remember that Transportation Service Providers must complete their Certificate of Independent Pricing (CIP) and Certificate of Responsibility (COR) in the Defense Personal Property System (DPS) by December 28, 2016 to be eligible to file rates for 2017.

A second critical element contained in the message are the Minimum Performance Scores set by SDDC for 2017. These scores become effective at the start of the 2017 Annual Cycle (May 15, 2017).

Minimum Performance Score (MPS):

The Minimum Performance Score (MPS) for the 2017 Rate Cycle is set at 53.17 for Domestic Household Goods, 54.77 for International Household Goods and 57.76 for International Unaccompanied Baggage Markets.

TSPs need to know that the 2017 MPS have increased from the 2016 levels in two of the three Markets. The most significant increase is a 2.9% increase in the Domestic Market. The correlation of the MPS to the Customer Satisfaction Survey (CSS) scores is:

53.17 for Domestic Household Goods = 75.957 CSS

54.77 for International Household Goods = 78.242 CSS

57.76 for International Unaccompanied Baggage = 82.514 CSS

This means that in all Markets, all questions answered in CSS responses need to average being at the “Good” level or above in order to maintain scores above the MPS. TSPs must be very diligent in monitoring their CSS scores!

A third key element for review in the International Market is the addition of a number of new channels in both the Special Solicitation and Standard International program. Be sure to consult the new Channel Control Listing, which will be posted soon on the SDDC website.

Source: SDDC & IAM

DOD Customs Clearance Issue

Recently an issue was raised regarding whether or not a licensed customs broker was required for the customs clearance of Department of Defense (DOD) and other government employees coming back into the U.S.

A Baltimore Customs & Border Protection (CBP) official had raised the issue and the question made its way up the chain to both the DOD’s U.S. Transportation Command (USTC) and CBP headquarters.

Initially it seemed a determination had been made that a licensed customs broker was required to clear DOD/government employee shipments.

IAM has been working with both USTC and CBP officials for the past two months and just last week the tide was turned. CBP communicated to IAM that there had been some miscommunication and they reversed their original position.

CBP has now communicated that an informal customs clearance process for DOD or government employees, using paper forms 3299 or DD1252 only, do not need a licensed customs broker to be involved.

If any other forms such as a form 7501 are used in the clearance process, then a licensed customs broker is required.

This is big win for industry and takes us back to status quo regarding customs clearance at all U.S. ports.

Source: IAM & SDDC

2017 National Defense Authorization Act Includes TWIC Language

On Nov. 30, the U.S. Congress finalized the language in the National Defense Authorization Act (NDAA) of 2017, which allows the U.S. Department of Defense (DoD) to continue operations. Included in the Committee Report language associated with the NDAA was wording that takes a step toward making access to military installations through the use of the Transportation Worker Identification Credential (TWIC) a bit easier.This report is expected to pass easily with support from both parties and then be quickly sent to the president’s desk for his signature.

IAM has been involved in a coalition of organizations working to help push for inclusion of this language in this year's NDAA.

The NDAA Committee Report language includes a provision that instructs the Secretary of Defense to ensure, to the maximum extent possible, that the TWIC be accepted as a valid credential for unescorted access to DoD installations by transportation workers.

This is a significant step forward in our efforts to ease base access for household goods workers but the industry should not expect immediate change. This will have to be digested by the Office of the Secretary of Defense and then guidance will filter down to the Service HQs and then eventually down to the installations. DOD base commanders will still be allowed to exercise discretion on the rules used to access their installations.

Here is the IAM government relations team’s comment regarding the new language:

To be clear, "maximum extent possible" is definite progress that should reduce wait times, but by no means guarantees unescorted base access for transportation workers with TWICs. 

Following is some of the specific Committee Report language:

Use of transportation worker identification credential to gain access at Department of Defense installations (sec. 1050)

The House amendment contained a provision (sec. 1098) that would require the Secretary of Defense, to the maximum extent practicable, to ensure that the Transportation Worker Identification Credential (TWIC) be accepted as a valid credential for unescorted access to Department of Defense installations by transportation workers.  The provision would also exempt TWIC-carrying transportation workers with a current secret clearance issued by the Department of Defense from further vetting when seeking unescorted access to Department of Defense facilities provided that installation access personnel shall verify the person's security clearance in a timely manner.

The provision would also require the Secretary of Defense to document and report each instance when a TWIC-carrying transportation worker is denied access to a military installation in designated locations, together with a reason for such denial, and the amount of time the TWIC-carrying person was required to wait for access.  The report would be required not later than 90 days after enactment of this Act and annually until the Department completes fielding of Identity Management Enterprise Services Architecture and electronic access control systems are fielded.

Source: IAM

Trump Taps Former Labor Secretary Elaine Chao to Lead DOT

Former Secretary of Labor Elaine Chao has been chosen by President-elect Donald Trump to run the Department of Transportation under his watch.

Read More

In Compromise, NDAA to Create DoD New Chief Innovator Job, Keep AT&L

Instead of blowing up the Pentagon chief weapons buyer’s office, lawmakers will consider renaming it and creating a new chief technology officer charged with advancing technology and innovation.

Read More

Change 3 released to the IT-16 and 400NG Tariffs

The SDDC has released a Change 3 to the IT-16 tariff effective November 22, 2016 and 2016 400NG tariff effective November 15, 2016. Most of the changes were billing related updates, two of which addressed changes that have previously surfaced that had not been addressed in the tariffs.

Read More

DOD & Government Personal Property News & Notes

SDDC Advisories

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.

Judge Blocks Obama Rule Extending Overtime Pay to 4.2 Million US Workers

A federal judge on Nov. 22 blocked an Obama administration rule to extend mandatory overtime pay to more than 4 million workers from taking effect, imperiling one of the outgoing president's signature achievements for boosting wages.

Read More

Trump's military will have more troops and more firepower — if he can find more money

President-elect Donald Trump wants a much bigger military. All he needs to do is find the money and political support to make it happen.

Read More