eGov/Mil Newsletter: March 10, 2017

March 10, 2017

In this Issue:

  • SDDC Provides Updates at AMSA Conference
  • Issues with the UCR
  • Hundreds of Troop-Owned Vehicles Possibly Damaged in Cargo Ship Fire
  • 2017 DP3 Rate Filing Closes
  • Experts say Trump's military budget can't pay for buildup he wants
  • DOD & Government Personal Property News & Notes
  • IAM Military News and Resources Page
  • Chao says U.S. drivers may face more tolls to raise infrastructure funds
  • Shelved 34-hour restart provision does not provide a net safety benefit, says report
  • Interstate Acquires American Red Ball World Wide Movers

SDDC Provides Updates at AMSA Conference

A number of U.S. Department of Defense (DOD) organizations provided updates on DOD’s moving program at the American Moving & Storage Association’s (AMSA) Education Conference & Expo. Representatives from the Surface Deployment and Distribution Command (SDDC), the Defense Personal Property System Program Management Office (DPS PMO) and several the U.S. Military Services provided updates on their areas of interest.

SDDC’s Director of Personal Property, Lt. Col. Todd Jensen and his Deputy, Daniel Martinez provided an update that covered a wide variety of subjects. They updated a large group of industry attendees on the proposed 2017 Open Season, the Defense Personal Property Program (DP3) “Deep Dive”, Base Access issues, Customer Satisfaction Survey (CSS) trends, DOD concerns regarding industry capacity, the Novation (buying & selling of approved DOD Transportation Service Providers) process and a review of the 2017 rate filing process. Review the slide deck.

Mr. Robert Hauert, a representative from SDDC’s Storage Management Office (SMO) provided an update on the move of the DOD Non-Temporary Storage (NTS) program to DPS. This will be considered Phase III of DP3. Mr. Hauert reviewed the current notional timeline for the move of NTS into DPS. The timeline for this move has been delayed many times but the most current notional timeline shows that NTS capabilities will move into DPS sometime in early 2018. That only means that NTS shipments will be capable of moving in DPS at that time. Before NTS will be able to operate in DPS the process of merging qualification data, a requalification of the current NTS service providers, training on DPS for NTS providers and a rate filing must be accomplished. It is not yet clear when NTS will go live in DPS but NTS service providers must begin educating themselves on the changes this move will bring to their program. Review the slide deck.  

The DPS Program Manager, Lt. Col. Nadine Landrum, briefed the group on the current state of DPS and the development timeline. Lt. Col. Landrum focused on some of the recent performance issues with both DPS and the Electronic Transportation Acquisition portal. Also covered in her briefing was the soon to be released redesign of the DPS Claims Module and an update on Foreign Nationals access to DPS after the current exception expires on 27 Sep 2017. Review the slide deck.

Sources: SDDC, AMSA & IAM

Issues with the UCR

Late last week approximately 60 Transportation Service Providers received notifications that they had received a 30-day suspension from the Defense Personal Property Program for failure to complete their annual renewal of the Federal Motor Carrier Safety Administration’s (FMCSA) Unified Carrier Registration (UCR). This is a requirement for all Motor Carriers and Freight Forwarders to maintain their licensure with FMCSA.

It is an SDDC requirement to maintain proper licensing through the FMCSA so a lapse in a company’s UCR is a violation of the SDDC Regulation 55-4.

For most companies this omission was a simple oversight. IAM reached out to multiple levels within the SDDC hierarchy to encourage the Command to immediately remove the suspensions once the UCR was completed. However, SDDC seems to be holding fast to the idea that “simple failure to complete program requirements within the given deadline is not grounds for a successful appeal.” If that is the case SDDC plans to let the suspension run for the full 30 days.

SDDC also did communicate that of the 60 TSPs that received a suspension for the lack of timely completion of the UCR:

  • 10 provided no follow up response
  • 8 contacted SDDC, but submitted no appeal
  • 20 had non-use removed entirely (majority based on non-current data inputted into DPS)
  • 5 had non-use reduced to 15 days based on extenuating circumstances
  • 2 have appeals awaiting additional information from the TSP
  • 15 appeals were denied

Sources: SDDC & IAM

Hundreds of Troop-Owned Vehicles Possibly Damaged in Cargo Ship Fire

More than 350 troop- and family owned vehicles may have been damaged in a cargo ship fire last month, Defense Department officials said Tuesday. The M/V Honor, operated by American Roll-On Roll-Off Carrier, caught fire late Feb. 23 as it left Southampton, United Kingdom, on its way to the U.S.

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2017 DP3 Rate Filing Closes

The U.S. Department of Defense (DOD) recently completed their 2017 rate filing for the Defense Personal Property Program (DP3) and most of the takeaways from that process were quite positive. In the past, the annual process has been rife with problems with most of those issues associated with the system used to file the rates – the Defense Personal Property System (DPS). This year was much different. Only a few minor issues surfaced and other than having to add a single day to the second round of the process, the initial schedule went off as planned. A rarity in past years.

With the process starting earlier than ever and being completed on time, booking for the 2017 Peak Season started on March 6. This early start greatly reduced the backlog of shipments normally waiting to be awarded and allows Transportation Service Providers (TSP) to get these shipments on their books with more lead time than ever before. It also allows for better planning and provides the ability for TSPs to maximize their capacity for the Peak Season. TSPs were also provided three days to review the Peak Season Traffic Distribution Lists (TDL) for three full days before they went live and the booking of shipments commenced. This is a relatively new feature for DP3 and most of the feedback from the industry was positive. Those three days allowed TSPs to determine their positioning on the TDL and anticipate how much traffic they would garner early in the shipment award process. It also allowed them to put “Blackouts” in place where they deemed necessary to help control the flow of shipment awards.

The 2017 rate filing was the most seamless since the advent of DP3 and the hope is that this is a harbinger of what future rate filings will look like.

Sources: SDDC & IAM

Experts say Trump's military budget can't pay for buildup he wants

President Trump's $603 billion budget proposal for defense won't be enough to pay for the massive buildup in military might that he envisions, experts say. But there’s also debate about whether the larger $640 billion proposed by defense hawks in Congress is necessary, with some experts saying the "readiness crisis" that number is meant to address may be exaggerated.

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DOD & Government Personal Property News & Notes

SDDC Provides Change of Ownership Worksheet

SDDC recently provided IAM a copy of the Change of Ownership Worksheet that they provide to prospective buyers and sellers of DOD approved Transportation Service Providers which are going through the Novation process.

Any parties interested in either buying or selling a DOD TSP should carefully review the worksheet as it provides a checklist for all of the paperwork that may be requested by SDDC during the Novation process.

Sources:  IAM, & SDDC

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.

Chao says U.S. drivers may face more tolls to raise infrastructure funds

Transportation Secretary Elaine Chao this past week raised the prospect that needed infrastructure improvements may be funded to some extent by imposing tolls on more of the nation’s roads and bridges. It was unclear whether she intends to expand tolling on the U.S. interstate system.

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Shelved 34-hour restart provision does not provide a net safety benefit, says report

The main takeaway of the OIG’s findings was that “the study did not explicitly state a net benefit from the use of the two suspended provisions of the restart rule on driver operations, safety, fatigue, and health.”

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Interstate Acquires American Red Ball World Wide Movers

InterstateGroup Holdings, Inc., parent company of Interstate Van Lines, Inc., one of the country’s largest independent moving companies, is pleased to announce the acquisition of American Red Ball World Wide Movers, one of the oldest household goods carriers in the United States.

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