USTC J9 Conditions Based Movement Call (13 Oct)

October 14, 2020

First…we are a week away from IAM’s Annual Meeting.  Hope to see you on line.  We have an impressive government line up with our Military and Government Affairs Panel; our Inside Look at DP3 Panel; our GHC Look Into the Crystal Ball session; our FMCSA Enforcement Update; Everything You Wanted to Know about GSA CHAMP but were Afraid to Ask; and of course huge content…more than ever…on the non-government side…to include meetings about our Domestic Asset Based Mover initiative.

 

For yesterday’s J9 call, the read-ahead slides were covered quite quickly.  Not much different in the slide content in terms of new news; however some significant inputs came during the open discussion portion of the meeting.  The only real noteworthy portion of the slides is that J9 stated what they are seeing in execution and in workload projections, it looks like volume is returning to the norm; as opposed to seeing significant increases to the fall/winter volume.

 

  • The J9 SMO briefed that in terms of Hurricane Delta impact, they’d contacted all warehouses in the area, and there is no reports of damage to facilities or HHG.
  • The SMO also stated that for the NTS Retrograde contracts, they are going out with a Request for Information to Industry on what capabilities are available for facilities that maintain temperature and humidity ranges.  This is something DoD is getting more interested in.  The SMO stated they eliminated the 50 mile proximity range for the NTS Retrograde contract, opening up to facilities anywhere in CONUS, instead of close to the East and West coast ports as they have it now.  They are also interested in a remote sensor capability where the J9 staff could monitor climate control in the NTS Retrograde facilities from Scott AFB. When asked if they would consider more than one facility per coast, the SMO stated they would; but less is better in their minds…but not stipulating how many warehouses; just the need to handle 30 million lbs of baggage and HHG.
  • When asked if this initiative was anyway connected to the overall concept we’ve heard about NTS going to a containerization model; SMO stated it’s generally separate; but that overall, DoD is looking to move to containerization for NTS in the future.  SMO stated down the road, as J9 looks at a potential NTS contract, maybe the NTS retrograde contract and the current NTS tender are programs that could be combined into one program somewhere in the future.
  • J9 talked a little about 2021 business rules. They stated the DoD and J9 haven’t reached consensus on all business rule issues; but have had good dialogue and expect their talks will be finished by the end of next week.  And that industry should see DoD inputs to our comments on business rules by early November.  J9 thanked IAM for putting together some working groups to provide some additional proposals to a few draft business rules (COS 4 SS; and inconvenience out of SIT).  In terms of the COS 4 SS, J9 didn’t provide specific insight, but stated based on industry comments, they  might look in other directions for where the COS 4 SS might be more appropriate.
  • IAM asked about where J9 was in terms of maintaining transit times as they currently are under COVID.  J9 acknowledge IAMs inputs on the need to maintain the current TT; but J9 stated they expect to go back to the previous TT in the next month or two; but they are monitoring impacts.