eGov/Mil Newsletter: June 30, 2017
In this Issue:
- SDDC Extends Deadline for Submission of Financial Information
- Prime Rate Increase Triggers US Bank Transaction Fee Increase
- Open Season in 2018 a Possibility
- SDDC Explores the Possibility of Holding PPF in the Scott AFB Area
- US House panel sends $658.1B DoD spending bill to floor
- This week in Congress: NDAA, defense appropriations take center stage
- DOD & Government Personal Property News & Notes
- Put Your Story in The Portal
- Emails to IAM are bouncing back? We have a solution!
- Textron CEO Ellen Lord Nominated for Pentagon Acquisition Chief; Boeing Exec Shanahan Nomination for DEPSECDEF Clears SASC
- Adm. Mark Buzby Nominated as Next Maritime Administrator
- Labor Department Moves to Revise Overtime Rule
- Senate unveils $700B defense authorization plan
The Surface Deployment and Distribution Command released a new Regulation 55-4 – Transportation Service Provider (TSP) Qualifications Document, in May of 2016. A number of new requirements related to the annual submission of financial documents were included in this new release.
The new 55-4 was released close to the submission deadline for most TSPs in 2016 so the new requirements were not to be enforced until 2017 (2016 fiscal year).
SDDC issued Advisory 17-0117 dated June 23 indicating that many TSPs did not include the newly required documents with their annual financial document submissions. The newly required documents are a copy of the balance sheet and statement of cash flows.
The advisory states:
“SDDC Regulation 55-4, dated 18 May 2016, states TSP’s must provide a copy of the balance sheet and statement of cash flows from the most recent fiscal year-end reviewed or audited financial statements to the qualifications organizational box at firstname.lastname@example.org within 150 days of fiscal year-end.
TSP’s that currently have a fiscal year-end date of December 31 and have submitted their financials in DPS by 31 May 17, but have not provided their balance sheet and statement of cash flows document, are being given an extension until 14 Jul 17 to submit these or risk being placed in a non-use status.”
TSPs that have fiscal years that end on December 31 and have submitted their financial reports without a copy of the balance sheet and statement of cash flows must submit those documents on or before July 14 or possibly face severe punitive action, including the possibility of being placed in non-use, by SDDC.
Sources: SDDC & IAM
Recently (mid-June) the Federal Reserve raised their Prime Interest Rate from 4% to 4.25%. This quarter point increase will trigger the U.S. Bank TSP transaction fee for U.S. Department of Defense household goods shipments billed through the U.S. Bank Freight Payment System to increase from the current 1.38% to 1.405% (25 basis-points) on July 3 due to this Prime Rate increase.
It is IAM’s understanding that the calculation for the transaction fee will be made based on 1.405% of the total invoice, however it may show on the TSPs statement as 1.41%.
TSPs should carefully check their statements for any shipments that are billed on July 3 or later to ensure the transaction fees have been calculated correctly.
Sources: IAM & US Bank
Each week during the Peak Season SDDC holds a teleconference with all the key stakeholders involved in the movement of DOD personal property, including the industry associations.
On a call held Thursday June 29 the 2017 “expedited” Open Season outcomes were discussed. Initially 35 out of 71 applicants were given tentative approval. Of those 35, only 21 could finish all of the required documentation and were eligible to file rates during a June rate filing. Eventually only 17 of the new TSPs successfully completed the rate filing process and are now able to move DOD shipments.
SDDC has begun to review the process used in 2017 and indicated on the telecon that they are exploring the possibility of holding a similar process in advance of the 2018 Peak Season. They believe that the 2017 has provided a “proof of concept” and has added some capacity to the DOD program in a number of areas of critical need.
Some of the areas being examined for possible expansion of capacity are Washington state, Northern and Southern California, Northern and Southern Texas and possibly a few other areas.
Interested parties should pay close attention in the coming months for announcement regarding the possibility of an Open Season in 2018.
The SDDC has set a tentative date for the Fall Personal Property Forum. This year's meeting will be held on Sept. 19. However, SDDC has not yet announced a location for this year's meeting. Initially the meeting was scheduled to be held in the Washington DC area but SDDC is reconsidering due to the high cost of hotel and meeting space in DC.
SDDC is now considering options around Scott Air Force Base. SDDC has received some pushback from the military services regarding this option as they see this as a shift in costs from SDDC to the Services. It will be difficult for all the Services to send representatives out to the Scott area due to the current constraints in their travel budgets.
No final decision has been made yet. IAM will update the location details as soon as they are made available.
Sources: IAM & SDDC
US House panel sends $658.1B DoD spending bill to floor
The House Defense Appropriations Subcommittee approved $658.1 billion in 2018 defense spending on Thursday. The measure, headed to the House floor, includes $584.2 billion in base funding and $73.9 billion in budget cap-exempt wartime funding. The committee’s overall funding level, as proposed, would be $68.1 billion above the current fiscal year.
This week in Congress: NDAA, defense appropriations take center stage
Lawmakers are cramming weeks worth of defense budget work into a few days before the July 4th recess, setting up several long days for military watchers on Capitol Hill. On Monday night, in a closed session, the House Appropriations Committee’s defense panel will mark up its first draft of the annual military appropriations bill. On Wednesday, the Senate Armed Services committee will do the same with the annual authorization bill, while the House will hold a marathon all-day, all-night session for their open draft of the authorization act.
Army Introduces New Document Upload System
After some miscommunication between Fort Hood, Texas, the US Army and some within Industry it appears that a new document imaging system is now available for us by the industry. It is a voluntary system called “DACS”.
The web portal can be used to electronically submit documents that are required for billing purposes to the Army Personal Property Shipping Offices. At this point TSPs are not required to utilize the system, but it is available should they elect to use it.
For more information on the system, TSPs should contact an Army JPPSO.
Expansion of the Short-Fuse Window Closes June 30
SDDC expanded the short fuse criteria from five to 10 days on June 16. The window continued through shipments picking up June 30.
Effective June 26, SDDC started reducing the number of short-fuse days from 10 government business days (GBDs) back to the normal five GBDs, one day at a time, so that on June 30, the normal five GBDs short-fuse window will be in effect.
The full “Expansion of the Short-Fuse Window for the 2017 Peak Season” was issued June 15.
Sources: IAM & SDDC
Receive SDDC Personal Property Updates by email
IAM has offered industry news updates by email for about three years. Now you can receive personal property updates from the U.S. Army's Surface Deployment and Distribution Command in your email. Sign up at IAM's website now. Alternately, if you just want the regular RSS feed, you can have that as well. Contact Carl Weaver.
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.
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, US Army & SDDC
Put Your Story in The Portal
In the September/October issue of The Portal, in addition to an overview of the upcoming Annual Meeting, we are taking an updated look at the industry’s environmental costs and contributions to the planet. Are you recycling moving pads or using recycled materials to manufacture them? Are plastic containers gaining currency over wooden ones, and why? What do you do with cartons/crates at the end of their useful life? What is being done to minimize waste? Are customer inquiries prompting you to go green (e.g., use recycled materials, alternative fuels)? Read more on our Coming Up in The Portal page. The deadline for the September/October issue of The Portal is August 15. Send your submissions to email@example.com AND firstname.lastname@example.org.
Emails to IAM are bouncing back? We have a solution!
From time to time we hear from members that our email server bounces messages back to them. We assure you that it is never personal, and is an automated process. All the same, it can be frustrating, especially if you are not in the USA and have to call internationally to get something resolved. We have another solution. If your emails bounce, let us know at email@example.com so we can fix the problem and restore normal communications. Contact Carl Weaver.
Adm. Mark Buzby Nominated as Next Maritime Administrator
President Donald Trump recently nominated Rear Adm. Mark H. "Buz" Buzby to be the next head of the Department of Transportation's Maritime Administration (MARAD). The agency’s executive director, Joel Szabat, has been serving in lieu of the administrator since January, when outgoing MARAD leader Paul Jaenichen stepped down to join HMS Global Maritime.
Textron CEO Ellen Lord Nominated for Pentagon Acquisition Chief; Boeing Exec Shanahan Nomination for DEPSECDEF Clears SASC
Two prominent defense business executives have taken steps to move from their industry roles to vacant senior Pentagon positions. The White House announced on Tuesday it would nominate Ellen Lord, the current CEO of Textron Systems, to serve as the next Department of Defense undersecretary for acquisition, technology and logistics (AT&L). If confirmed by the Senate, Lord would fill the position that has been vacant since the inauguration in January.
Labor Department Moves to Revise Overtime Rule
The Labor Department signaled this week that it may move to scale back the Obama-era rule expanding overtime eligibility that has been on hold for months. The department on Tuesday sent a formal Request for Information on the rule to the Office of Management and Budget (OMB). Once OMB reviews the request and it’s published, the public will have a chance to submit comments on the rule, which would more than double the salary at which employees must be paid overtime, from $23,660 to about $47,500.
Senate unveils $700B defense authorization plan
Senate lawmakers introduced a $700 billion defense authorization bill on Wednesday that sets the stage for another financial showdown with House budget planners and White House officials over the right target for national defense planning. The Senate draft calls for more base defense spending than either of the other plans, fewer troops and a smaller military pay raise than the House proposal, but 54 more aircraft and five more naval ships than the president had planned.