California Moving & Storage Association Military Panel April 13, 2012

Transcription

1 California Moving & Storage Association Military Panel April 13, 2012

2 Terry R. Head President International Association of Movers (IAM)

3 Discussion Topics Business Case Analysis (BCA) to determine the feasibility of outsourcing the DOD HHG program SDDC Program Management Review (PMR) What s Happening RIGHT NOW! Regionalization Master Plan 2011 Peak Season 2012 Peak Season Defense Personal Property Program(DP3) - Phase III Electronic Billing & Payment for NTS FRV/Unearned Freight legal case

4 OSD - Business Case Analysis Business Case Analysis (BCA) IAM staff closely monitoring possibility. Freight initiative - Defense Transportation Coordination Initiative (DTCI) Early 2011: Signals that HHGs were coming under same microscope. June 2011: Initial meeting with OSD to discuss BCA August 2011: BCA contractor named Logistics Management Institute (LMI) September 8, 2011: IAM staff initial meeting with LMI. Other meetings in September, October & November

5 OSD - Business Case Analysis LMI met with major moving Associations, SDDC, US Bank, Military Services, Individual TSPs and Agents, Relocation Companies and National Accts. December 2011: LMI moved from data gathering to data analysis March 2012: Released Draft Report Associations to met with OSD to discuss potential findings Late March 2012: Final Report/Recommendations delivered to OSD What are the possible outcomes?

6 OSD - Business Case Analysis Five Alternatives: Alternative 1 Maintain Status Quo, with DPS fully fielded and Regionalization Plan completed. Alternative 2 Contract out labor (manpower) performing customer interface functions, including counseling, responding to customer questions, QC inspections; to also include contracting out labor for booking shipments with TSPs, overseeing shipment management, processing of invoices and managing SIT program. (Alternatives 1 and 2 would require the contractor(s) use of DPS.) Alternative 3 Same as #2, plus the contractor would use its own proprietary systems to support contracted (outsourced) functions, instead of DPS. Would require use of DOD approved TSPs and DODnegotiated rates and rules for shipment awards.

7 OSD - Business Case Analysis Alternative 4 Same as #3, except contractor will utilize a DOD approved list of vendors, but the contractor would negotiate rates as well as use its own commercial practices to manage and award shipments. Alternative 5 Entails a full outsourcing (contracting) of manpower, business rules, approval of authorized vendors (TSPs), the negotiation of rates, as well as, the award of shipments. Alternative 5A Same as #5, except contractor would use DPS Counseling Module Alternative 5B Same as #5A, except DOD and the Military Services would maintain customer interface storefronts. (Interpreted as PSSOs, JPPSOs, etc., or their equivalents under 2016 Regionalization Plan)

8 SDDC Program Management Review Initially titled the Program Efficiency Review Goal: SDDC to improve & find efficiencies for DP3 Items being reviewed: Implementation of CFAC in Domestic Market Agent Declaration (LOI?), interim step in DPS - Agent I.D. Redefining TSP possibly two definitions: Domestic vs. International How to implement Open Season without further proliferation of TSPs in both the Domestic and International Markets Minimum number of CSS to be considered statistically valid

9 What s Happening RIGHT NOW! 1. Rate Filing First round was delayed Problems with Bulk Rate filing method Third round added Began awarding shipments March Minimum number of CSS requirement set at No more Code 3 in the Pacific Channels 4. Contract with SRA for sustainment and enhancement of DPS extended until Oct 1, 2013.

10 Regionalization Joint Regionalization OSD initiative to be completed by 2015/16, but on FAST TRACK! 7 CONUS JPPSOs JPPSO-COS, JPPSO-NE, JPPSO-SAT, Ft. Lewis, JPPSO-WA, Jacksonville & San Diego.May 15, Aberdeen and Ft. Detrick fall under JPPSO-WA. OCONUS Japan (Yokosuka), Korea (Yongsan), Europe (WKAS), JPPSO-HI and a few smaller, more isolated booking offices. Navy recently held informational meetings: San Diego - 3/20/12 Jacksonville, FL (Mayport) 3/26/12 Norfolk, VA 3/29/12

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12 2012 Peak Season 2012 Peak Season SDDC Peak Season Hotwash Reviews what is that??? SDDC focused on CAPACITY while industry appears to be focused on Traffic Distribution Rule Changes and New Rules implemented for 2012 Peak Season Unlimited Refusals vs. Enhanced Blackout Expanded use of Code 2 and use Portable Moving & Storage Containers (PMSC) Increased use of Origin Elimination of the 70% rule DPS stability is major issue, especially during Peak Season What does Peak Season 2012 hold???

13 DP3 - Phase III This Phase of DP3 will DIRECTLY affect local agents! Includes.NTS, DPM & Local Moves Brings Best Value in the procurement process for all of these Markets Phase III Draft Business Rules are posted on the U.S. Transportation Command website (DTR website) POSSIBLY brings a new Market into the Domestic Program Domestic Small Shipment Market (ds2). *** New concept just unveiled.dpm2. ALL under further review. Timeline estimated 3 years before implementation begins.

14 Electronic Billing & Payment for NTS DOD will implement the Third Party Payment System (TPPS) process in the NTS environment VERY soon. NTS service providers should have already been contacted by US Bank. Implementation will be conducted in phases: Rollout Schedule over the next months Phase 1: 5 April - JPPSO COS, All Coast Guard sites Phase 2: 5 May - Remaining AF Offices, Marines and few others Phase 3: 5 June - Most remaining sites All of the rest - 5 July Online training will be available soon. **Benefits: Accelerated cash flow, Electronic Billing & Payment (reduced paper), easy & rapid invoice dispute resolution, reduced time chasing receivables. ** According to U.S. Bank

15 Unearned Freight Historically TSP charged-back with Unearned Freight when failing to deliver goods at destination. Most charge-back activity suspended due to lack of capability in electronic payment system. New functionality now available to charge back TSPs through e-bills. Large warehouse fire (Dec. 2010) in Germany brought issue to forefront and exposed increased vulnerability to industry. IAM believes under Full Replacement Valuation (FRV) there should be no unearned freight liability since TSP makes customer whole. Suit Filed in Federal Court of Claims case pending.

16 For Updates or Questions: Charles Chuck White Director of Government & Military Relations Terry R. Head President International Association of Movers (IAM) Alexandria, VA