Military Surface Distribution Deployment Command International Tender Update

Military Surface & Distribution Deployment Command International Tender Update John Becker and Johnson HQ SDDC 30 October 12

IT 2012 Change 4 Updates § Introduction: Added a “GBLOC Regionalization” section highlighting upcoming bases to be regionalized § The Government suspended the 70% Transit Time Rule requirement for the 2012 DPS Rate Cycle Item 216 b § Item 402 Note -The collection of unearned freight charges under this item is not applicable to shipments in which the TSP has paid Full Replacement Value (FRV) under 10 USC 2636 a on claims for loss or destruction in an amount less than or equal to the TSP maximum liability set forth by this solicitation. § Item 526 Diversion Table is currently being revised and has been temporarily removed from the Personal Property website. We recommend all parties (JPPSOs/PPSOs & TSPs) contact HQ SDDC Personal Property Operations Division via email at army. sddc. safb. ppops@mail. mil for assistance with shipments that require a diversion. § Item 700/701/702 - OTO Guideline language temporarily removed until OTO is active in DPS Delivering Trust 2

Unearned Freight § Unearned freight is the return of transportation costs for personal property items that were lost or destroyed while in the possession of the Transportation Service Provider § Recent U. S. Court of Federal Claims decision ruled that the collection of unearned freight in conjunction with Full Replacement Value for lost property is no longer allowed § Updated language in IT and 400 NG Delivering Trust 3

Fuel Rate Adjustment § 28 Feb Fuel Surcharge Strategic Comm Message § 5 Jul FRA letter outlining proposed changes § 14 Aug SDDC meeting with industry § 20 Sep SDDC CG letter to industry § 26 Sep NDTA briefing to SDDC CG § Official announcement from MG Richardson § Current Formula • Baseline: $2. 50 • Calculation: % of line haul based on EIA average (10¢ increments) Delivering Trust 4

Alaska Rate Structure § Started review of rate filing and best value scoring for Alaska 2009 § Met with industry reps from Alaska and Montana § SDDC Alaska Rate Structure Working Group Apr 11 § SDDC visit to Alaska Aug 2011 Delivering Trust 5

Alaska Rate Structure § New structure: • • Use water route for CONUS to Alaska shipments Single port in CONUS (Tacoma, WA) Reduce water haul table 17% Bunker fuel surcharge as pass through § Standardize invoice from ocean carrier for PPSO validation § Effective 2013 rate filing Delivering Trust 6

Foreign Flag Waivers § Internal review of FFW requests § Sent message on process for requesting waivers through SDDC • Ensure it’s in correct format, all data filled out, in advance § Monitoring of Foreign Flag Waivers and actual routes used Delivering Trust 7

Questions? Delivering Trust 8