Domestic Transportation Programs · Program Overview • Request should include as much data as possible on shipment (e.g., CBL #, ATR offer #, shipment ID #, spot-bid ID #, requested

Domestic Transportation Programs

Mr. Charles Morgan10 October 2017

Disclaimer

Transportation University encourages a free flow of ideas. In the spirit of this academic setting, the views of the instructors and participants are assumed to be their own and not those of NDTA, USTRANSCOM,

or anybody's parent organization/company.

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Objectives

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This session will provide an overview of SDDC domestic transportation capabilities across the Department of Defense

Transportation Community with a discussion on the Transportation solutions and capabilities needed to meet customer requirements for

quality, speed and best value.

Agenda

•Military Freight Traffic Unified Rules Publication (MFTURP)•GFM•Shipment Planning•Cost Questions/Disputes•Carrier Performance •SDDC Contact Information•Questions

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Military Freight Traffic Unified Rules Publication (MFTURP)

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Purpose

Establishes policy, and describes responsibilities for motor, rail, water, pipeline, air and tank-truck Transportation Service Providers (TSP). These rules will assist TSPs in providing safe, reliable, and “Best

Value” service to Department of Defense shippers.

Essentially the “tender rules”

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MFTURP-1 Use• Defines DOD policy on movement of freight • Requirements for all carriers (experience, performance bonds,

insurance, safety)• Additional requirements for brokers, freight forwarders, logistics

companies• Lists accessorial services available and level of service• Provides details on tender submission• Dispute resolution

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MFTURP-1 Highlights

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• Tender rates/charges (regardless of rate qualifier) that applybetween same points of origin and destination

• Failure to review the TFG for installation policies for pickup anddelivery requirement

• Detention, demurrage or storage charges• Pickup and delivery appointments• Disputes between the TSP's and shipper's records

Update & Review Process• Received final review from Services and DOD agencies• Carrier review• SDDC legal review• Federal register notice• Once federal register notice is released, updated MFTURP will be

uploaded to SDDC Website• Customer Advisory issued to inform of the update

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GFM

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GFM

• Clicking on SDDC Web site will take you to the public web site

• When contacting the GFM Help Desk, state the issue and ifpossible, provide a screen shot with your GFM user ID

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GFM

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The applications block will indicate the applications the user

has access to. This will vary between TO and TSP

Online user manuals are available for all GFM applications; mouse

over the ‘Online Use Manuals/Help Files’ link

GFM

• The GFM Message of the Day will highlight upcoming system changes, updates, or outages

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Shipment Planning

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TO Shipment Planning• Review shipping documents• Determine DOD requirements/accessorial services• DOD standard transit times• Review TFG for both shipper and consignee• Match shipment data with routing (e.g., SPLCs, route, equip)• Use correct commodity codes• Provide all special documents/instructions needed• Use of alternate equipment or mode• Delays at consignee• Procedures during GFM/CMOS/DSS outages

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Carrier Shipment Planning• Review shipping instructions/requirements/documents• Review TFG for both shipper and consignee

– If required, secure delivery appointment in CAS• Meet DOD standard transit time• Match shipment data with routing• If needed, TO can complete CBL correction notice• TO should provide all special instructions/documents needed• Use of alternate equipment or mode• Procedures during GFM/CMOS/DSS outages

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Other Notes• Spot-bids/SDDC negotiations are all inclusive (all costs, e.g.,

permits, escorts included in carrier’s bid)• For OD/OW shipments, carrier must present origin state permit prior

to departure• Carrier must retain valid receipts to support OD/OW charges• TO may request copies of permits for their record if needed• All accessorial services requested must be listed on CBL• Tender rates/charges that apply between same origin/destination

will alternate to produce the lowest charge to DOD• When carrier provides alternate equipment, DOD will pay for the

lower cost of the two17

Domestic Ground Options

• ATR– Uses voluntary tenders, provide TO with low cost carrier who

accepted– Accessorials increase cost – Open min 15 minutes, max 24 hours– Carrier can accept, deny, or not reply– Cannot be used for OD/OW freight

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Domestic Ground Options• Spot-bids

– All inclusive (carrier must include additional cost, e.g., permits, escorts)

– Open min 4 hours, max 72 hours– Carrier can submit bids– Cannot be used for CAT I or II AA&E shipment

• SDDC Negotiations– All inclusive (carrier must include additional cost, e.g., permits,

escorts)– Carrier can submit bids

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Cost Questions/Disputes

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Program Overview

• Provides solutions to freight costing/dispute questions IAW DTR/Chap 212 and MFTURP-1

• Performs investigations/pre-audits to assist in cost dispute resolutions

• Shipper or TSP can submit a cost question• Funds may be returned to DOD/additional funds provided to TSP• Any cost dispute between shipper and TSP can be forwarded to

SDDC for resolution, regardless of mode (except air)

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Program Overview

• Request should include as much data as possible on shipment (e.g., CBL #, ATR offer #, shipment ID #, spot-bid ID #, requested charges, synopsis of situation)

• SDDC will notify both shipping TO and TSP of decision• TSP may appeal SDDC decision to GSA• Submit dispute to: [email protected]• Once GSA begins audit of TSP, excess funds are not returned to DOD

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Historical Data (FY 17, Oct-Jun)

• Average 51 cost disputes/questions received monthly by SDDC• All Services/Agencies submitted• Average additional funds requested = $8,208.90• Average SDDC approval = $2,884.98• Received from TOs 41.9%, TSPs 53.8%, Others 4.3%• Issues include re-cost, additional accessorial services, shipment

cancelations, diversions, and OW/OD permits• GSA Notice of Overcharges (NOCs) for SDDC to review/research

increased23

Key Issues/Concerns

•Commercial Bill of Lading (CBL) discrepancies– Use of the correct SPLCs– Additional/decreased pieces and/or weight– Issuing CBL Correction notices

•Assessorial services (e.g., EXP, PTS, SOC)•Transportation Facilities Guide (TFG)

– Updates; base entry requirements

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Key Issues/Concerns

• Proper Planning (i.e., required delivery dates, MHE)• DOD Standard Transit Times• Shipment cancelation (after truck dispatch)• Documentation (lack of)• Correct commodity codes

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Examples•Carrier X submits request for delivery appointment to a DLA Depot for Tuesday; Depot confirms appointment for Thursday. Carrier seeks two days storage (SRG); request is denied.

•TO A issues two CBLs to carrier Y (each in amount of $800). Freight was picked up on the same day, by the same carrier, going to the same destination. Shipper A is instructed to canx one CBL, pay carrier for one CBL ($800). SDDC can re-rate if needed.

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Examples

•TO B awards freight to carrier Z for a LTL load; vendor contacted carrier and instructed carrier that shipment was full capacity. Originally rated as LTL ($1,712.60), carrier now due TL w/full capacity rate ($3,828.36).

•TO C coordinated a truck for movement; shipper agreed to an earlier pickup date. Carrier arrived but shipper was unable to load truck due to lack of MHE. Carrier due VFN ($750).

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Cost Question Takeaways• Continue to route freight IAW DTR, Part II• Ensure all requested accessorial/protective services are listed

in the ‘Marks & Annotations’ block of CBL• Use correct commodity codes for freight to be shipped• DOD standard transit times apply; if freight is required

sooner request EXP• Include operating days/hours, entry requirements, MHE

capacity, and any other important info in the TFG for your activity

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Cost Question Takeaways Document driver in/out times Ensure TFG for your activity is reviewed/updated as

required Review TFG for consignee as part of your shipment

planning Contact SDDC if there is a dispute/issue before payment

approval Carrier can appeal SDDC’s decision to GSA for final

ruling29

Carrier Performance

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Carrier Performance Policy DoD 4500.9-R, Defense Transportation Regulation (DTR)

• Part II, Cargo Movement, Chapter 207ˉ Available at https://www.ustranscom.mil/dtr/dtrp2.cfmˉ Defines Shipping & Receiving activity/SDDC responsibilities

• Service elements and standards• Carrier performance process• Carrier Performance Matrix (for action)• Specific instructionsˉ CPM User Manual/Publicity Notice currently lists

instructions31

SDDC Responsibilities

•Manage and oversee program effectiveness•Review TSP performance and their ability to provide service to the DOD

•Monitor regulatory compliance with SDDC MFTURP-1

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SDDC Responsibilities•Determine when a pattern of non-use actions and/or service failures warrant further quality assurance measures, i.e., TSP Review Board (TRB)

– Nationwide non-use• 30-90 days with 90-day probationary period

– Disqualification• Will not exceed a period of 24-months• TSP disqualified for 6-months or more are required to re-

qualify with current FCRP guidelines

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Shipper/Receiver Responsibilities

Shipping Activity:• Monitor TSP performance and ability to provide service to the DOD• Carrier performance program implementation

– Issue LOWs– Place TSPs in local non-use– Report issues to [email protected]

Receiving Activity:• Monitor performance of TSPs delivering to your activity• Document and report service failures to origin• Prepare Transportation Discrepancy Report (DD 361)• Recommend TSP performance action

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Key Performance Issues•Abusive behavior•Shipment refusal/no-show (voluntary tenders, Spot-Bids/Negotiated Shipments)

•Double Brokering•Trans-loading•Falsifying payment in Syncada•Posting loads on Broker Boards (w/price)

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Key Performance Issues•Missed RDDs•Non-payment of subs•Not providing assessorial services•Damaged freight•Leased equipment/675 service

– Copy of lease agreement w/truck– No taped-on signs– No VFN for rejected equipment (CPM action completed)

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Shipment Refusals• F1 – Shipment Refusal: Used for tendered non-ATR shipments when a TSP fails to accept

or decline a shipment within 1 hour of offer. Shipments must be offered at least 24 hours in advance or 48 hours in advance when TPS is required. A Transportation Officer (TO) can specify a shorter response time for high- priority shipments, but cannot charge a TSP with a refusal if the TSP declines the shipment. Tier 3.

• FK – Commitment Withdrawal: When a TSP responds to an ATR offer as able to accept the load, and then declines at time of award or prior to pickup; or if the selected TSP is unreachable after a reasonable amount of attempts by the shipper. Shippers cannot charge a TSP with Commitment Withdrawal if they fail to contact/award the TSP within 1 hour of ATR offer closing, or if systems using the auto-award process fail to show the offer status as “Awarded” in ATR. Tier 1.

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Shipment Refusals• FM – Shipment Refusal-Spot Bid: When a TSP bids on a shipment via SpotBid on the Web,

then declines the shipment when the shipper calls to award the load. A TSP that submits

a bid is assumed to be ready, willing, and able to perform the transportation as stated in

the bid. Shippers cannot charge a TSP with Shipment Refusal – Spot Bid if they fail to

contact the TSP within 4 hours of the bid closing. Tier 1.

• FN – Shipment Refusal – Negotiation: When a TSP bids on a SDDC-negotiated shipment,

and then declines the shipment when the shipper calls to award the load. A TSP that

submits a negotiation is assumed to be ready, willing, and able to perform the

transportation as stated in the negotiation. Shippers cannot charge a TSP with Shipment

Refusal – Negotiation if they fail to contact the TSP within 24 hours after receiving rates

from the SDDC Negotiations team. Tier 1. 38

Carrier Performance Module (CPM)

CPM Capabilities: • Automate the carrier performance process• Increase oversight of all TSP performance actions• Enable TOs to electronically generate correspondence• Centrally track the number and type of performance

actions• Flag tenders of TSPs placed in local nonuse

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CPM Entry

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Non-Use Action• TO completes non-use action in CPM• TO may place carrier in 180-days non-use if TO has

placed carrier in non-use twice within a 12 month period• Carrier may appeal non-use action (within 15 calendar

days)• TO must respond to any appeal within 7 business days• If denied, carrier may appeal non-use action to SDDC• After re-instatement, TO may use correct non-selection

code to bypass carrier

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SDDC Domestic Emails

For carrier performance issues:[email protected]

For cost disputes/questions:[email protected]

For DD 1085s/Large Volume Movements:[email protected]

For Freight Carrier [email protected]

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SDDC Domestic Emails

For TDR issues:[email protected]

For GOCARE issues:[email protected]

Domestic Freight Services Branch:usarmy.scott.sddc.mbx.g3-domestic-freight-services-branch@mail.mil

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Questions?

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