USTC J9 Conditions-Based Movement Call (27 Oct)

October 28, 2020

Please see slides for the Tuesday, 27 Oct J9 call with industry and DoD.  Nothing major discussed in terms of data depicted on the slides. The only note out of the ordinary was that data depicted on slide #3 (Past projected but did not move) might actually represent some double counted shipments…shipments that may, at a later time, actually move even though they are currently shown with shipments previously projected to move, but did not move. 


The major discussion item of this call was J9 sharing that a few TSPs had identified that they believed, despite J9’s earlier advisory on the topic, that the TDL being used during this current performance period was actually using peak rates to establish the TDL, instead of non-peak rates.  J9 confirmed their research shows that peak rates are being used to establish the BVS, and thus impacted the TDL.  What was supposed to happen was the TDL would be based on BVS comprised of a TSPs CSS and non-peak rates; but the shipments would be paid based on peak rates.  Instead, the peak rates were used to establish the BVS and thus the TDL is different than it would’ve been.


J9 asked for TSP inputs on the call on how best to handle the situation going forward until they revert to non-peak rates starting 15 November. There were varying views presented on the call. 


J9 presented potential Courses of Action (COAs) as follows:


COA 1: Allow DPS to continue booking uninterrupted


Pros: Minimizes additional system changes; Provides promised peak rate to TSPs moving shipments; Rankings/Awards in line with business rules


Cons: Not in line with advisory; TDL duration is short (1Oct-14Nov) so some TSPs on some channels may receive more/less shipments than anticipated


COA 2: Immediately end the extended peak season TDL running from 1 Oct- 14 Nov


Pros: Aligns more closely with advisory/plan


Cons: Requires manual billing to provide peak season rate; requires additional system changes; provides at most 5 business days of bookings (non short fuse) through 14 Nov.


J9 gave TSPs on the call until noon 28 Oct to provide feedback. 


Other Notes:


J9 stated they are still seeing suspensions for not wearing face coverings and not following health protection protocols (10 out of 50 suspensions).  The other suspensions are for reweigh failures, failure to pay missed reweigh funds, and missed pickups to name a few.


COL Gipson reiterated that with the increase in COVID cases worldwide, health protection protocols are still very much a focus area for DoD. 


The SMO briefed again that they have an RFI out seeking information on the Non-Temp Storage Retrograde contract and industry’s ability to provide climate controlled warehouses.  Per the SMO, to date they had received no comments on the RFI from industry.


VADM Mewbourne (TRANSCOM Deputy Commander) stated that at senior DoD levels right now, there is no talk of another round of Stop Movement.  He also added that he has talked with each of the top leaders in each Service and they’ve expressed their gratitude for a successful peak season; much better than they expected in these tough times.  He wanted to thank industry for keeping families safe during the move, complying with additional safety requirements, and still providing a quality move. 


IAM asked TRANSCOM for their thoughts on the GAO protest decision.  VADM Mewbourne and the Acquisition Director, Kenneth Brennan both replied.  They wanted to be clear that the GAO decision on the protest shouldn’t be misconstrued as not supporting the GHC concept.  VADM Mewbourne said the GHC construct is sound and will result in a tremendous improvement to customers.  He said it’s the right thing to do, and they are fully committed to it.  He said the positive part of the protest is that it identified technical aspects of the bid award process, but was not critical of the foundation of the GHC.  He said the strategies and desired outcomes of the GHC were sound; GAO just had technical issues with the award process.