Defense Transportation Journal

The Official Publication of the National Defense Transportation Association

December 2014

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December 2014

FEATURES December 2014 • Vol 70, No. 6

Publisher

RADM Mark H. Buzby, USN (Ret.)

NDTA-USTRANSCOM 8 Fall Meeting October 28-30, 2014 St. Louis, Missouri

Managing Editor

Sharon Lo | sharon@ndtahq.com Circulation Manager

Leah Ashe | leah@ndtahq.com Publishing Office

NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761

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departments Defense Transportation Journal (ISSN 0011-7625) is published bimonthly by the National Defense Transportation Association (NDTA), a non-profit research and educational organization; 50 South Pickett Street, Suite 220, Alexandria, VA 22304-7296, 703-751-5011. Copyright by NDTA. Periodicals postage paid at Alexandria, Virginia, and at additional mailing offices.

Subscription Rates: One year (six issues) $35. Two years, $55. Three years, $70. To foreign post offices, $45.

Single copies, $6 plus postage. The DTJ is free to members. For details on membership, visit www.ndtahq.com.

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President’s Corner | RADM Mark H. Buzby, USN (Ret.) . . . . . . . . . . . . . . . . . . . . . . 5 NDTA HEADQUARTERS | Sharon Lo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 in MEMORIaM | COL Joseph A. Torsani, Jr., USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . 22 chapter spotlight | The Okinawa Chapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 chairman’s circle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 honor roll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 BOOKSHELF IDEAS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 index of advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

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PRESIDENT’S CORNER Adjusting Course and Speed RADM Mark H. Buzby, USN (Ret.) NDTA President

H

ow do you follow someone like LTG Kenneth Wykle, USA (Ret.) who has led NDTA so capably for the past 12 years?

That’s what I’ve been asking myself since taking over from Ken on 1 November. Much like Ken’s beginning at the 2002 Greensboro Forum, I found myself in NDTA’s leadership role at this year’s NDTA-USTRANSCOM Fall Meeting in St Louis—literally! Due to a medical issue in Ken’s family, he was required to remain in Washington, so the moderator duties fell to me. Welcome aboard!

Let me just say at the outset how honored I am to have been asked to lead this storied organization. As a senior government liaison on the NDTA Board of Directors since 2009 (while Commanding Military Sealift Command), I was able to see firsthand the great value in the Association, and its efforts to promote and facilitate effective communications between DOD and the logistics/transportation industry. It is absolutely critical for this dialog and trust-building to go forward because it directly impacts the Warfighter, and I am excited to be in a position where I can make a positive impact to ensure this continues into the future.

One of the best pieces of advice Ken gave me during our turnover was, “take a fresh look—things are changing.”

I have been doing just that. And he’s right—some of the formulas that have served NDTA well in the past are not as effective now: membership is flat or declining, there are budgetary and legal challenges that make it more difficult for DOD personnel to participate in our meetings and gatherings, and the costs of staging our large annual meetings continues to rise. To use a nautical analogy—we must adjust course and speed.

And we will.

Working closely with our new Chairman Bill Flynn, Vice Chairman Bill Kenwell, and the rest of the Board of Directors, my guiding principal as we go forward will be to ensure that NDTA remains relevant and a real “value added” to all partners in defense transportation and logistics. It is up to this Association to listen carefully to what all of our constituents need, determine what requirements are not being met, and figure out a way to deliver them within the new realities we must operate under. This has already begun.

As I write this, we are well into the planning for next NDTA-USTRANSCOM Fall Meeting here in Washington DC 28-30 September. Recently elected Vice President of Education Gina Hubbs and the 2015 Fall Meeting Planning Committee have some great new ideas, including the first day being devoted to an “NDTA University” of actual classes provided in an “industry track” and a “government track” of topics sought by each constituency. This responds to a plea by many of our members to fill the void left by the demise of the very popular SDDC Training Symposium and the valuable training opportunities it provided. I see the “NDTA University” as part of a larger effort to provide recurring education and training opportunities across a range of topics to our membership and future members. I am very excited about the prospects.

Several members have voiced to me the need for a new functional committee to join the Air, Surface, Sealift, Distribution, and Passenger Travel committees—a Cyber committee—to address policy and issues in the vital and increasingly vulnerable medium which enables our global logistics system to function. We must get involved here and cannot ignore focus on this key facet of our operations. I see this

as a great opportunity to get our Young Leaders, who thrive in the cyber environment, involved.

There are many other areas to address and in the coming months I’ll be doing my best to listen to what you have to say and act to keep our Association strong and relevant. Stay tuned!

I close sadly, remembering one of our most stalwart supporters and members—COL Joe Torsani, USA (Ret.)— who passed away on 21 November from pancreatic cancer. Joe was one of those guys who would light up a room when he walked in and when you met him he was your friend for life. He was a lifelong transporter, understood the nuts and bolts of logistics, and was totally unselfish in furthering our organization. He was the spirit of NDTA. He will be sorely missed, but fondly remembered.

Until next time—yours aye, Buz

W EL C

ME

NEW corporate

members as of December 1, 2014

Chairman’s Circle Plus • AIT Worldwide Logistics, Inc. Sustaining • ARTEMIS Global Logistics & Solutions • SkyLink Air & Logistic Support (USA) II, Inc. • Titan Services Regional Patrons • Hospitality Logistics International • John D. Odegard School of Aerospace Sciences

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NDTA Headquarters Staff RADM Mark Buzby, USN (Ret.) President

NDTA HEADQUARTERS

Lots of Reasons to Say THANK YOU

COL Jim Veditz, USA (Ret.) Senior Vice President, Operations Patty Casidy VP Finance Lee Matthews VP Marketing and Corporate Development Leah Ashe Manager, Database

By Sharon Lo Director of Public Relations

W

Sharon Lo Director of Public Relations Rebecca Jones Executive Assistant to the President Carl Wlotzko Coordinator, Banquet & Special Events For a listing of current Committee Chair-persons, Government Liaisons, and Chapter & Regional Presidents, please visit the Association website at www.ndtahq.com.

Editorial Objectives The editorial objectives of the Defense Transportation Journal are to advance knowledge and science in defense logistics and transportation and the partnership between the commercial transportation industry and the government transporter. DTJ stimulates thought and effort in the areas of defense transportation, logistics, and distribution by providing readers with: • News and information about defense logistics and transportation issues • New theories or techniques • Information on research programs • Creative views and syntheses of new concepts • Articles in subject areas that have significant current impact on thought and practice in defense logistics and transportation • Reports on NDTA Chapters

e keep hearing that times are tough and budgets across the board are tightening—which is why the staff at NDTA Headquarters is especially thankful for the continued generosity of our members!

At the end of October, Kirstin Knott of FedEx stopped by to present a donation to the NDTA Foundation. As you may recall reading in the DTJ over the past year, donations to the Foundation support the NDTA Scholarship Fund so I am happy to report that one hundred percent of FedEx’s donation will go directly to scholarships for deserving college students! FedEx has been a proud supporter of the NDTA Foundation for years and we cannot thank them enough for their continued philanthropy.

If you missed the articles on the Foundation, want to know how you can donate, or for students who want to learn about scholarship opportunities visit NDTA’s website www.ndtahq.com for more information.

As if its Foundation donation wasn’t enough, FedEx along with many others also turned out to support NDTA Headquarters’ Toys for Tots Event on December 3. An initiative started by Vice President of Finance

Editorial Policy The Defense Transportation Journal is designed as a forum for current research, opinion, and identification of trends in defense transportation and logistics. The opinions expressed are those of the authors and not necessarily of the Editors, the Editorial Review Board, or NDTA. Editorial Content For a Media Kit and Archives, visit www.ndtahq.com/education_dtj.htm Sharon Lo, Managing Editor, DTJ NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 sharon@ndtahq.com

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Patty Casidy in 2010, this annual event has grown each year. NDTA, its corporate and individual members, friends, office neighbors, and staff all contributed to donations of both toys and cash to the Washington, DC area Toys for Tots program which seeks to bring a message of hope to less fortunate youngsters during the holiday season that will assist them in becoming responsible, productive, patriotic citizens.

Thanks to everyone who helped make NDTA’s fifth year supporting Toys for Tots such a success: Agility, Alaska Marine Lines, American Shipping and Logistics Group, Avis, Choice Hotels, FedEx, National Air Cargo, The Pasha Group, the Washington DC Chapter, Susan Andress, Dave DeBoer, Kirstin Knott, Lori Leffler, Dr. Anne McDonald and staff, the Discenza and Woods Families, and the NDTA staff. DTJ

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The NDTA-USTRANSCOM Fall Meeting October 28-30, 2014 | St. Louis, Missouri The purpose of this meeting is to stimulate wider interest and inquiry into technical and professional issues involving Department of Defense (DOD) transportation requirements. The meeting will provide information, training, and strategic overview for personnel of the DOD, and will also assist industry in anticipating and meeting future DOD needs. The theme of the meeting—Changes & Solutions—is descriptive of the current environment and continual process upon which we must proactively anticipate, assess, plan, set course, adjust, and reflect upon changes in order to bring about winning solutions.

INTRODUCTION

RADM Mark Buzby, USN (Ret.) President, NDTA RADM Buzby opened the 2014 NDTAUSTRANSCOM Fall Meeting, saying that the meeting had grown from necessity of NDTA committees to work policy issues with the United States Transportation Command (USTRANSCOM), its component commands, and the Defense Logistics Agency (DLA). Budgetary challenges faced by the military, government, and industry did not obviate the need for committees to work the issues confronting them. Rather, these challenges increased the need for the military, government, and industry partnership to function smoothly which is a key mission of NDTA. From the 2013 Meeting, 14 action items were identified and worked

throughout the year in both the committees and Executive Working Groups (EWGs).

Of those action items, 12 had been completed and two were still being worked. Additional information regarding these action items can be found in the October issue of the Defense Transportation Journal (DTJ).

Speaker

Gen Paul J. Selva, USAF Commander, USTRANSCOM Gen Selva explained that being Commander of USTRANSCOM is not about being in charge of a single unit, but of overseeing an enterprise that, through its component commands, brings the weight of our military and commercial capacity to the defense of the nation. Aristotle said

that friendship is essentially a partnership.

Gen Selva felt that this saying described not only NDTA, but the relationship that must exist between the military, government, and industry to accomplish the mission of national defense. It’s a relationship based on trust, respect, and the expertise of those involved to meet a daunting challenge—having the capacity to deploy, sustain, and redeploy our forces which entails attending to the readiness of the entire enterprise. The relationship is a very unique partnership that has not only been nurtured, but tested by time as exemplified by the deployment, redeployment, and sustainment of troops in and out of Iraq.

A mission supported by NDTA’s values.

The responsibility of those involved isn’t to their own individual entities, but to the collective security of the US which is why NDTA exists and why the partnership works. The Department of Defense (DOD) can no longer organically accomplish its mission and it is unlikely that will ever change. The strength of the nation, and the ability to provide for national defense, lives in the relationship between military, government, commercial entities, and the labor pools that support them. Our obligation as NDTA is to deliver on that promise. Eighty percent of the overland transportation in the US, fifty percent of airlift capacity, and over sixty percent of over-ocean transportation is provided by commercial industry. One hundred percent of all inland transporta-

NDTA-USTRANSCOM Fall Meeting summary material is intended to provide an overview of presentations and should by no means be considered verbatim. This information does not necessarily represent the official position of the US government or any of its entities, NDTA or any of its corporate members. We regret any errors or omissions. For more information regarding the meeting please visit NDTA’s website at www.ndtahq.com.

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tion that is being done today in support of US military forces abroad is being done through the logistics networks that have evolved and grown around the capacity of the transportation enterprise. The relationship between the military, government, and industry is incredibly important. One example of the partnership’s ability to find solutions occurred when the Ground Lines of Communication (GLOC) through Pakistan were severed.

Through much hard work the partnership managed to develop five new routes into Afghanistan and increase inventory on the ground, meaning that deployed troops never had a need that was not met. Today we are 63 days away from establishing our new footprint in Afghanistan, called the Resolute Support Mission, comprised of 9,800 US soldiers, sailors, airmen and marines. We will have to adapt our network and adjust to the new demand signal that comes from this smaller force.

It would have been impossible to imagined six months ago that the US would be reinforcing Europe against Russian adventurism in the Ukraine, fighting resurging violence in Iraq and Syria, and assisting African nations combat Ebola, all while continuing retrograde operations in Afghanistan. No one can predict the future with that amount of clarity so we depend on our ability to access every bit of the transportation and distribution enterprise to make US forces successful wherever they are needed. This requires us to maintain a strong, resilient, and responsive US flag capability to move them. There are challenges ahead and the future is both uncertain and unpredictable. However, whatever the crisis, predicted or not, Gen Selva felt that the partnership would find solutions together. While the mission will evolve, the basics will always be the same.

Gen Selva will always have an obligation to support, without question, the deployment and employment of US power abroad to be able to deploy, sustain, and

bring home whatever force the President decides we will bring to bear in our national interest. Without the partnership’s worldwide mission capacity, transportation capability, and logistics enterprises this would not be possible. Gen Selva continued that he had obligations to maintain the health of the civilian air and sealift fleets. The Civil Reserve Air Fleet (CRAF) Agreement and the Voluntary Intermodal Sealift Agreement (VISA) are tools at our disposal to manage readiness and access to those fleets. Both of these have the word agreement built in because they are about finding solutions that will allow us to get the job done. While we will not agree on everything, one fundamental that all are in agreement on is never putting the life of a soldier, sailor, airman, or marine at risk for lack of the ability to transport them to the fight, sustain them in the fight, or to bring them home from the fight. Gen Selva closed by thanking the audience for their work and their enduring commitment to the mission, adding that despite the challenges ahead the partnership could find solutions to meet the nation’s demands by putting their minds together.

Speaker

The Honorable Alan Estevez Principal Deputy Under Secretary of Defense for Acquisition, Technology and Logistics Mr. Estevez began by stating that times were tough, but that our logistics system was doing well and was working efficiently.

However, he established that things could always be improved because there is more to be done to shape our capabilities. The current DOD budget is tough. There is a need to save every dollar in order to turn those dollars back into combat power to protect the US. The US is still operating in Afghanistan. While not perfect, overall this mission is going well and things are being moved out as needed. Regarding

the Ebola epidemic, Mr. Estevez said that the mission being undertaken is a logistics mission with a healthcare piece, not a healthcare mission. This entails putting facilities on site in affected countries, putting the people in those sites that can do the work, and sustaining those people.

The great capabilities of the DOD combined with the interagency process will do what it takes to accomplish this mission.

In the Ukraine, we are reestablishing our fortitude in Europe. Finally, the US is dealing with the campaign against ISIL. While it would be nice for things to calm down, that is simply not happening and does not appear likely to happen anytime soon.

The budget is at the forefront of what is being worked on in the Pentagon. DOD is going to submit a budget that is above the sequestration level of budget because it believes that is what is needed to secure the nation. DOD put in $52 billion of issue papers above the President’s budget that are now being negotiated. A year ago the government shut down, which is no way to run a nation. If DOD is forced to adhere to sequestration budget levels, we will be at risk. While somehow the US will cope, this is no way to manage our future.

There are several considerations being addressed by the $52 billion of issue papers submitted by DOD. One is the capacity of the force (how much force structure is needed). The force is being engaged every day so this is not a good area to take risks—the force structure is necessary, but you can have force structure without readiness which to some degree is where we currently stand. However, you do not want to have a hollow force. Another consideration is looking at the future and assessing what potential adversaries are doing. These potential adversaries are modernizing enormously which means that the US is losing its technological advantage. If you look at space, which was formerly an uncontested realm, it is now contested. One need only to consider the ramifications of having the

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US satellites (that guide our weapons and provide our “eyes in the sky”) taken out during a conflict to see how critical this is.

In addition, the US must consider protecting the critical nuclear and electronic warfare arenas. All of these areas require major spending. DOD is trying to get all of this accomplished at the President’s budget level, as life at a sequestration level budget would mean no modern force. Mr. Estevez predicted that if DOD were forced to operate at sequestration budget levels the US would have some major regrets about in ten to fifteen years.

The DOD must change the way it does business to better protect the nation and save money in order to meet its challenges.

Utilizing its flagship program, Better Buying Power (BBP), is one way it intends to do that. Facets of BBP include affordability caps, meaning it will put a cap on what it is willing to spend on something; considering what the cost of something should be so that DOD does not pay more simply because the budget would allow it; and looking at program costs. The draft version of BBP 3.0 has just been rolled out, and emphasizes technology and innovation. When DOD looks at how we buy things contract type matters. Program managers need to think through what they are purchasing to determine the best type of contract for that purchase and work with the person making the request to ensure they get what is need. Mr. Estevez expressed concerns over what happens to the transportation industrial base as we draw down—especially in airlift and sealift. This is something that he felt needed to be addressed. He concluded that we need to look at industry’s business model and adjust what needs to be done to defend the nation. The way forward is for people to think about how they are doing their business. There are things that can be done internally to save assets and put combat power back into the force—and this is doable even with the budget restraints.

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Operational Update Roundtable

Moderator: Maj Gen Wayne Schatz, USAF, Director of Operations & Plans, J3, USTRANSCOM, with panelists: • LtGen Robert R. Ruark, USMC, Director of Logistics, J4, The Joint Staff • Paul Brown, Deputy Director for Logistics, J4, USAFRICOM • RDML Ron J. MacLaren, USN, Director, Joint Contingency Acquisition Support Office, DLA • MG Edward F. Dorman, III, USA, Commanding General, 8th Theater Sustainment Command Maj Gen Schatz stated that the strategic landscape is changing and the capability that USTRANSCOM and its commercial providers bring to the table is critical. He continued by highlighting USTRANSCOM’s work over the past year beginning with the notable mission performed by Military Sealift Command (MSC) Vessel Cape Ray to neutralize chemical weapons from Syria. USTRANSCOM remains engaged in Afghanistan, working hard on the transition from upwards of 36,000 US soldiers, sailors, airmen, and marines on the ground to the 9,800 set in the Resolution Support Mission. September had been the largest month on record for moving material (over 27,000 short tons of cargo) out of Afghanistan, but that record was broken in early October. Bastion and Camp Leatherneck were recently closed as the Marines retrograded out of Afghanistan which took an amazing joint effort. All of this was taking place at the same time that USTRANCOM was energizing its enterprise to open air and sea ports in West Africa, responding to increased operations in Iraq and Syria, and responding to other crisis around the world. Recently, and closer to home, USTRANSCOM responded to a call for assistance evacuating Americans from Cabo San Lucas following Hurricane Odile. Of this mission, Maj Gen Schatz said it was

DECEMBER 2014

amazing to watch the ability of our enterprise to respond quickly to protect American citizens.

Referencing Gen Selva’s remarks, LtGen Ruark explained that part of the reason for success when the Pakistani GLOC was cut off was that due to excellent communications with its contractors the military had seen the cut off coming, allowing time to coordinate and shift bookings to the Northern Distribution Network (NDN). The drawdown in Afghanistan has been another remarkable endeavor driven by good planning and coordination. There is a lot of access, something that is critical and impressive when dealing with a landlocked country. Regarding support to West Africa, what DOD brings to the table is unique logistics capabilities with health services support being a part of that. A network is forming in Africa, though slowly and with challenges as to how it can best be leveraged. However, the Global Campaign Plan for Distribution is coming into play at the right time. In the future, we must synchronize the global strategic distribution network with the regional. The North Atlantic Treaty Organization (NATO) is creating a high readiness joint task force. Planning is in underway and potential options are a brigade size force, consisting of land, maritime, and aviation assets, as well as special operations forces and possibly cyber capabilities. This force would be ready on quick notice and much quicker than NATO response forces today. There is a lot of concern over where this force should be located. LtGen Ruarke expected investment in this force to come from NATO’s security investment program concept. A lot of work is still being done in the Pacific with the US Pacific Command (PACOM) trying to set up infrastructure.

Challenges in the area include tensions in the South China Sea, the rise of nationalism, and rise of defense budgets of some potential adversaries. PACOM is waiting

for rebalance, NATO has West Africa to worry about, and SOUTHCOM is faced with networks transporting drugs and bringing thousands of children (and the potential for other things) into the US. Every combatant commander has a case for resources. The only way we are going to be able to address all of this is through this asymmetrical capability called logistics with USTRANSCOM in the lead.

Speaking on the Pacific rebalance, MG Dorman said that the Army is the same as the other services—facing declining budgets which require significant force structure cuts, while still trying to meet a broad range of missions including deterring aggression, fighting major conventional conflicts, engaging with allies and partners, and building trust. Work that has been done in the Pacific is why there has been a fairly stable Indo-Asia-Pacific region since WWII, though nationalism, modernization, and territorial disputes have led to some friction. The Army must maintain its ability to respond to humanitarian assistance, disaster relief, and defense of civil authorities in its territories as it resets the force from an Army at war to an Army in preparation. It must do this while trying to avoid becoming hollow, investing in its future, and maintaining an operational edge. Demand signals in the Pacific are changing. Since the rebalance, we have made the US Army Pacific (USARPAC) a four star command and have increased its assigned forces.

Budget constraints make it difficult to meet the increased demands and readiness posture needed. The predominately Northeast Asia focus is changing to include North Asia, engaging in India and Bangladesh, as well as Southeast Asia.

There are great opportunities for USTRANSCOM and industry to support the Army as it continues to set the theater in the Pacific, develops innovative ways to engage in the region, and increases the collective readiness. MG Dorman contin-

ued that the Army is experiencing more expeditionary operation while becoming an expeditionary force. It has to project its way operating in a particular area that might not have a robust infrastructure— there is a different mindset for going to and sustaining such locations. The Army is trying to leverage best practices from industry from a technology and communication perspective, as well as networks to help get it where it needs to be. It’s a time a change and opportunity, the business rules and policies that have made sense historically should be respected, but the US also need to have a dynamic balanced approach that allows those involved to come together and exercise their readiness.

RDML MacLaren stated that we are definitely in a time where we all have to work together. DLA has been answering the call in West Africa, Afghanistan, and several other areas—and has been doing so in a fast, agile, and fiscally responsible manner. DLA has been workThe predominately Northeast Asia focus is changing to include North Asia, engaging in India and Bangladesh, as well as Southeast Asia. There are great opportunities for USTRANSCOM and industry to support the Army as it continues to set the theater in the Pacific, develops innovative ways to engage in the region, and increases the collective readiness. ing on the joint effort to coordinate and shape the logistics framework in Liberia and Senegal in support of the President’s directive on military support on building Ebola Treatment Units (ETUs) in Liberia. It has worked very closely with USTRANSCOM on the best way to utilize and move resources. Because this

mission deals with an infectious disease time sensitivity was of the most urgent consideration. DLA, together with its partners, has had to consider how to do things in a part of the world where it would not normally have a presence. It has also to account for special circumstances and requirements the area brings such as the need for those working there to be on a Malaria regiment and that GPS mapping in the area was not necessarily accurate so actual maps were needed. DLA troop support has done a great job in locally procuring all the class IV material for building the ETUs to avoid shipping costs, freeing up airlift assets for shipping things that could not be gotten locally. Having boots on the ground in these high risk areas is absolutely imperative. The in theater contingency contracting officer was instrumental in leveraging DLA financial power in the contracting realm to get early site preparation for the ETUs. She also held a local business development forum with 300 vendors to build current and future capacity. Contractors were another resource to learn how to really do business in some of these areas and served as a force multiplier. All of this work will help build strategic relationships for AFRICOM. In Afghanistan, closing bases requires a huge coordination. DLA still has 200 workers on the ground, in addition to hundreds of contractors supporting the execution of contracts. After we get down to the 9,800 person level there is still a mission requirement and the State Department has already asked DLA to support its needs for fuel, disposition, and food. There is a huge discussion regarding retrograde on what needs to be shipped out, sold or given to the Afghans, go to foreign military sales, and/or destroyed, and the financial considerations of these options. In addition, DLA must continue to sustain the troops that remain in country.

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Mr. Brown stated that Ebola is a global crisis. Infections are progressing at a nonlinear rate with approximately 10,000 reported cases and 4,000 people dead. The projection of where Ebola could go if it were to continue unabated is astonishing. AFRICOM had to look at the best way forward to rapidly get capability in to stem this horrible tide. This mission is unlike anything it, the DOD, and the many other agencies and organizations working on it have ever faced before. The mission is complicated by access problems, distribution problems, limited port capabilities, and poor infrastructure. There is quite a bit of discussion on redeployment screening for US troops, whether it is the 21 days quarantine here or there, and the disparity with what our contractors, nongovernmental organizations, and civilians do. We have been there for two months and have just received clarity on what personal protective equipment will be used for our forces. DOD is the supporting organization, with the US Agency for International Development (USAID) being the supported organization. USAID gives DOD a request to execute and provides supplies support to the facility that opens up a host of other questions.

DOD brings unmatched capability to this new battlefield because it can bring more things there faster than anyone else.

However, the capability is not unlimited—we are coming out of Afghanistan, dealing with ISIS, the Ukraine, and 18 other named operations in Africa which is why establishing cooperative support locations in Africa is so important. It’s a busy continent and in the middle of that we have Ebola. The focus is on three lines of effort: logistics, engineering support, and contracting support because those set the stage to execute the medical support to the nation. Within those lines of effort are three key aspects: building capacity, logistics automation tools, and partnerships necessary for successful mission.

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DOD Leveraging Commercial Networks Roundtable

Moderator: VADM Mark Harnitchek, USN, Director, Defense Logistics Agency, with panelists: • Paul Brown, Deputy Director for Logistics, J4, AFRICOM • Col Mark R. Hollahan, USMC, Director of Logistics Directorate, J4, SOUTHCOM • Torben Svenningsen, Senior Director, Business Development, Maersk Lines Limited • John W. Dietrich, Executive VP and COO, Atlas Air Worldwide Holdings • Eric Topp, VP Global Accounts, Bollore Africa Logistics • Eddie Claridy, VP, Coyote Logistics VADM Harnitchek opened the roundtable by saying that the commercial networks are more than just something that is nice to have they are an integral part of DOD’s business. In fact, in many places DOD operates the supply chains are exclusively commercial.

COL Hollahan explained that SOUTHCOM is a challenging theater, ripe for DOD’s leveraging of commercial networks. During the disaster in Haiti, if it weren’t for commercial partners we would not have been as successful in proving aid to the Haitian people. SOUTHCOM is an economy force operation that does not have the forces and sources that many other commands have. It is challenged by frequency of deliveries of requirements, volume, and distance. The small amount of frequency means the command does not go to the places it goes very often and when it goes it is often not with a lot of stuff, but that stuff must still to get there when needed. To accomplish this, SOUTHCOM has in place a Surface Distribution Network to leverage commercial resources. Through Rock Island Army Contracting this is a basic authorization of regional contracts throughout

DECEMBER 2014

the AOR set up to handle surface distribution from pier to point, through boarders and customs, utilizing various modes of transportation. Some challenges with this network is that it is only surface and does not account for any airlift, and SOUTHCOM is constrained with a limited number of certified carriers that operate in the area because carriers don’t often go all the places the command needs. Interested commercial carriers can get involved in this contract by registering their ability to tackle a statement of work with the Army Contracting Command at Rock Island.

Mr. Brown explained that AFRICOM was using a concept published in the 2010 Joint Concept for Logistics, called an adaptive logistics network, an enterprise approach to facilitating existing logistic capability in Africa. To use this in a practically from concept to execution, the command is working its way forward with its joint, interagency, intergovernmental, multinational, and commercial partners through the AFRICOM Logistics Council, AFRICOM Logistics Work Group, and AFRICOM Logistics Forum. There concept has three focus areas: Multinational Airlift Consortium (MAC) which concerned with reduced-cost, multinational distribution capability that synchronizes and optimizes logistic movement requirements across AFRICOM; Local Procurement Initiative (LPI), led by DLA, which is used to reduce costs and delivery times by buying locally; and the Continental Logistics Base (CLB) which is in the conceptual stage, but includes putting together startup material in support of and building self-sustainment packages as a bridge for African Union missions.

From the industry panelists, Mr. Claridy described Coyote Logistics as a 3PL service provider for the continental US with a large, diversified footprint. Utilizing all modes of transportation, it moves approximately 6,000-6,500 loads a day using a proprietary network system that

it monitors daily and by the minute. The company’s goal is to be able to track and trace everything at any time. Mr. Claridy felt clarity was needed on how commercial industry could better service the government, as well as how to get rates where they need to be in order to get loads moved when needed. Mr. Topp’s company, Bollore Africa Logistics, has a presence in 55 countries around the globe, including 45 countries in Africa and has been in most of those countries for over 50 years. It runs 30 port concessions in Africa, and moves approximately five million containers and six million tons of cargo a year in and around the continent. The company has set up Air Lines of Communication (ALOCs) and GLOCs all around Africa to support its customers. The company’s work is driven by the commercial sector. Mr. Topp felt that discussion was needed on how to align commercial networks with the military’s needs because what commercial customers want and what the military wants are often two very different things.

He also felt that there needed to be better management of expectations between the DOD and the commercial sector, as misaligned expectations were often due to a simple lack of communication. He continued that in the last several years DOD and industry’s expectations appeared to have become further apart. On a strategic level the two groups are close, but are miles apart on a tactical and operational level. Regarding working in Africa, Mr. Topp felt education was key including educating industry on how to do business with the government and educating the government on how Africa works.

Atlas Air’s customers, consisting of the world’s leading global airlines, integrators, and freight forwarders in 400 destinations in approximately 110 countries, each have their own networks. Mr. Dietrich explained that this meant there are subnet works within Atlas’ total network and

operation spanning the globe. A majority of these are growing in emerging markets so Atlas has been able to expand in those markets by working with customers to see where the demand is, and making networks and routes work either exclusively for that customer or by joining forces with other customers. The airline industry needs ground support, but is relatively adaptive and capable of setting up networks. Mr. Topp thought DOD could best leverage commercial networks by continuing to promote strategic discussions. Working together and having candid discussions may trigger other thought on how to potentially link other customers in order to get full utilization out of current assets. Visibility into the forecast is another area that will help DOD and industry work together, and to the extent that there is opportunity for industry to get involved up front as requirements are being developed value can be added.

In Mr. Svenningsen’s opinion the complexity of the mission has grown over the last ten years, but this has allowed positioning for the future. There is a need for industry to push the boundaries of innovation and boundaries within the global transportation arena. In order to meet greater complexity, industry has made important investments in vessels, containers, and terminals. In the last 15 years container vessels have grown, requiring enhanced infrastructure such as larger cranes, expanded roads to handle growing traffic, and larger container fleets. Moving cargo through new networks and new partnerships, as well as adding technology such as GPS tracking have all evolved as innovations in the industry over the last ten years. The biggest challenge with this has been contracting and compliance because the capability often evolves more quickly than the contracting. There are many areas where commercial networks are already being utilized, but there is more that can be done. To level the gap

between industry and government, industry panelists suggested a more simplified contracting process. The multimodal contract has been very successful, however there has been some tension as the way the contract was written is different than how it is being executed. VADM Harnitchek proposed that the contracting relationship needs to take place at multiple levels—strategic, contractual, and tactical/execution—in order to work best.

Commercial Best Practices & Efficiencies in Government Roundtable

Moderator: MG Susan Davidson, USA, Commanding General, SDDC, with panelists: • John Collins, EVP, Landstar Transportation Logistics • Denis Smith, VP, Industrial Products, BNSF • Lars Magnusson, Senior Director Military Market, APL Limited • Tony Rigazzi, VP Defense Products Group, Tapestry Solutions Inc. • John W. Dietrich, Executive VP and COO, Atlas Air Worldwide Holdings Mr. Collins recommended DOD simplify its loads and normalized its business practices. He also suggested creating a core carrier program which is something that most large, diverse, decentralized shippers have.

These carriers buy into the strategic plan of that organization. There is give and take in this relationship with intense collaboration and discussion almost daily, and while there are always problems they tend to get resolved quickly. SDDC has the framework for a corporate core carrier program, but there needs to be a dialog on how it would work. Regarding contracting, Mr. Collins said that compliance is complicated and that cost can be difficult to bear—especially for a small company. Change is happening and though it is being kept up with, there is still much to do. Mr. Collins believed effort

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is needed to pick up the pace of improving efficiencies of DOD. The NDTA Surface Committee is making strides by working in increments with SDDC. However, improvements will require buy in from the Transportation Officer (TO) level up and the senior leadership level down in order to increase efficiency and make DOD easier to do business with. Continuing the discussion, Mr. Smith said the railroads are very busy due to record volumes of grain shipments, as well as shipments of coal and crude oil. Due to increased demands, the railroads are spending record amounts of capital on improvements and are in the process of hiring thousands, especially former military members. Mr. Smith felt that communicating one’s plan and being accurate with that plan is key to efficiency.

Mr. Magnusson explained that USTRANSCOM and SDDC benefit from commercial best practices simply through the movement of their sustainment and unit equipment under the Universal Services Contract (USC) which provides the government firm fixed pricing, refreshed annually, for DOD shipments throughout the world. By contracting with as many as 22 carriers under the USC, USTRANSCOM directly benefits from the buying power and cost saving initiatives of each carrier.

Financial distress faced by the industry over the last decade has resulted in dramatic cost cutting efforts and is driving changes in the industry that will have long-term implications. USTRANSCOM has benefitted from this cost cutting, but is now having to deal with the service changes that the cuts are causing. One change in the industry is the addition of mega vessels. By replacing existing capacity with these larger, more fuel efficient vessels carriers are attempting to drive down slot costs which indirectly benefits USTRANSCOM through longterm rate stability. However, the benefits of lower slot cost are only realized if the vessel is fully utilized and many carriers don’t have the market share where the vessels are

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deployed to do this. As a result, many alliances have been formed which also benefits DOD by giving it access to nearly every market in the world through the VISA carriers and their continuously evolving alliance partners. The cost cutting efforts driven by DOD and commercial customers’ demand for lower freight rates are having—and will continue to have—an impact on the service level DOD has become accustomed to. Fast transit times are giving way to slow steaming, there is greater port congestion, and increased volume of containers being discharged from larger vessels are putting carriers behind on their schedules and placing unprecedented demands on terminal operations. As cost minimizing efforts by the carriers continue and service becomes more commoditized, value added services will be harder to provide to customers that request them. However, as carriers reduce costs and services, USTRANSCOM continues to demand more of them. Most of the USC carriers now have special organizations formed exclusively to service DOD, and handle the unique booking and reporting requirements under the USC. The cost of these organizations will ultimately be reflected in the rates of the government so if the government wants more competitive rates it needs to strive to have a contract that utilizes commercial terms and conditions especially as we transition into a peacetime environment. Mr. Magnusson felt government and industry needed to work together to reduce and simplify the contract, reporting requirements, and terms of payment.

Regarding Mr. Magnusson’s comments, Mr. Dietrich agreed that government contracts can be cumbersome due in part to regulations and in part to other aspects that with some work could be streamlined. Mr. Dietrich said he remains mindful when asked about best practices that industry does not necessarily do things better, they do things differently because they are in a different operating and commercial environment

DECEMBER 2014

with more flexibly, and less constituencies to answer to. However, he did feel that engagement in advance with customers on what the ultimate requirement and contract could look like, and the value proposition is key.

Value added services are something Atlas promotes because while it can’t always offer the lowest rate it can often provide greater value. There is a need to focus on forecasting, adjusting assets for capacity, IT integration, and matching the right asset(s) to the mission. Gen Davidson confirmed the need to work together, while finding a way to identify best practices and understand what each other needs to find success.

Speaker

The Honorable Anthony Foxx, Secretary, Department of Transportation (DOT) Secretary Foxx stated that over one quarter of DOT’s employees are veterans and he looks for that number to grow both in DOT and the industry at large. All modes are actively recruiting veterans and credentialing is being improved so they can go more easily from military to mariner or from soldier to trucker. These former military members bring with them a commitment to excellence, solid work ethic, and the kind of grit and determination needed to build our country’s 21st century strength. The relationship between military and the transportation industries is a twoway street with each supporting the other in some way. The US’ transportation system was designed to support our military.

The idea for the interstate highway system came from President Dwight Eisenhower who as a young Lieutenant rode in the first military convoy to cross the nation.

President Eisenhower felt a modern efficient highway system was essential to meet the needs of the US’ growing population, expanding economy, and national security—a sentiment that remains true today.

When our transportation is stronger so is

our military, which is why we should all be concerned because our transportation infrastructure is in crisis condition. By 2050 the US will be home to 100 million more people and we will have to move nearly twice as much freight around the country as we do now, much of it military freight.

We do not have the resources to do this and at current spending levels we are massively underinvesting. While we look at this as an economic problem and sometimes as a civilian safety issue, it must be made clear that this is a threat to national security.

When transportation is inefficient, unpredictable, and unreliable shipping costs go up, as do the cost of goods, so a crumbling infrastructure could cost the military more to operate. At a time when new threats rise overnight and conflicts span from the North Sea to the Middle East we need to project our force globally and rapidly with no question as to whether or not we can do it. We cannot fail to invest at home and expect to be successful abroad. This is why DOT has put together the first 21st century transportation bill Grow America which would begin to fix many of the problems mentioned. It would provide stable and predictable spending for four years to not just rebuild the transportation network, but expand it for greater population and freight needs. The bill contains smart policies like a $10 billion freight program so we can build our freight network end-to-end, as well as policies that will expand the ability of projects to move more quickly. It will do a lot to reduce the cost of moving goods to our armed services, allowing them to better carry out their missions at home and abroad. However, as good as Grow America is on paper it needs to be enacted and is not seeing the critical support it needs to be passed by Congress. For many generations our infrastructure has quietly, effectively served this country well, but we are at a point where that infrastructure is silently telling us that it can’t do what we need it to do in the future. We need more people

to speak collectively and demand change.

Investing in transportation is more than just shortening someone’s commute—it is about what happens if goods marked US military are delayed because we didn’t expand a port, it is about national preparedness, being able to respond to threats in real time, and not just freedom of the open road, but freedom.

Speaker

William J. Flynn, President & CEO, Atlas Air Worldwide, and Chairman, NDTA Since its start 70 years ago, NDTA has emerged as a leading association of government, military, and industry professionals. It is a unique organization, dedicated to fostering a strong and efficient global logistics and transportation system in support of our economy and national defense.

Working through NDTA provides each of us and our companies a great opportunity to contribute to that effort. Together we can advance the knowledge and science of logistics and transportation, facilitate the sharing of knowledge regarding logistics and transportation, as well as educate our members and ourselves about important issues affecting global logistics and transportation. Mr. Flynn said that going forward he would work closely with the NDTA Board of Directors, staff, committees, and chapters to deliver on NDTA’s goals. These goals are to foster safety, improvement, and change in transportation, distribution, logistics, and security systems; to create and foster strategic communication among military, government, corporate, and other members particularly as it may enhance the primary missions of the Departments of Defense, Transportation, and Homeland Security; and as we go through this period of change, continue to create value for NDTA’s members. To borrow from USTRANSCOM’s motto “Together We Deliver.” As USTRANSCOM describes

it, its partnership with industry leverages a global enterprise of logistics expertise and commercial partners who contribute over three quarters of the continental US land transport, as well as a significant portion of global air movement and global sealift. From any perspective our industry is a primary driver of the worldwide economy that demands efficient, time definite movement of people and products. The resilience of our US economy depends on the multimodal transportation system that effectively links businesses in and out of the US with consumers, suppliers, and markets here and abroad. To accomplish this we must continually reposition our transportation system for the future. It’s critical to work together to ensure that our freight transportation system remains an efficient intermodal network that adds value to each mode while capturing available efficiencies for our nation and the economy. Our efforts must also include a common commitment to meeting the highest standards of safety and security while protecting and preserving our environment.

Historically the federal government has played a strong role in transportation and we continue to need that leadership today. Last year, the House Committee on Transportation and Infrastructure created the Panel on 21st Century Freight Transportation. It directed the panel to examine the current state of freight transportation in the US industry, to identify the role that freight transportation plays in the economy, as well as ways to increase efficiency, safety, and overall condition and performance of the nation’s freight networks. In addition, the panel was to examine how technology assists in the movement of freight and financing options for transportation projects that improve freight mobility. The panel confirmed the vital role that the nation’s freight transportation network plays in the functioning of the US economy. It also concluded that improvements must be made to meet the

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growing needs of the economy, create jobs, and improve quality of life in America. We at NDTA can see a direct line of sights between these observations and our ability to support the defense transportation requirements of the nation. The panel also identified a number of impediments to the efficient and safe movement of goods in to, out of and through the United States. To improve and enhance freight transportation efficiency the panel issued several key recommendations. Among these were a call to establish a comprehensive national freight transportation policy and a declaration that Congress should ensure robust public investment in all modes of transportation, as well as incentivize additional private investment. Establishing transportation as a national priority and securing the support of both public and private sector stakeholders is an imperative. A comprehensive policy that addresses all modes of transportation and related infrastructure would promote and expedite the development and delivery of projects and activities that improve and facilitate the efficient movement of goods. Although we cannot create a new freight transportation system from scratch as many emerging nations are doing, we do have the leadership and intellect to reform our existing system and infrastructure. Doing so will require continued committed leadership, national will, strategic planning, wise investment, and teamwork from both government and industry. Mr. Flynn firmly believes that this issue should rank as one of America’s vital national interests. It is in that spirit that the NDTA-USTRANSCOM Fall Meeting is taking place. One way to strengthen the partnership is to stimulate broader discussion and deeper inquiry into professional and technical issues involving DOD and its transportation requirements. Sequestration, shrinking budgets, and force level adjustments all present new challenges. To foster a strong and efficient global transportation system that supports

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our economy and national security in this environment we must continue to enhance the quality and continuity of dialogue between USTRANSCOM and industry. A closer, more continuous discussion about USTRANSCOM’s requirement strategies and goals will better enable industry partners to service needs, allocate available resources and services in the short-term, and plan for resources and services longterm. To succeed we will need continued committed leadership and teamwork by all partners. Mr. Flynn concluded that he felt we are well prepared for this effort.

Better Buying Power (BBP) Roundtable

Moderator: Gail Jorgenson, USTRANSCOM Acquisition Director, USTRANSCOM, with panelists: • Richard T. Ginman, Director Defense Procurement & Acquisition Policy, OSD • LTG Robert T. Dail, USA (Ret.) • Mike Hopkins, Senior VP and General Counsel, Maersk Line, Limited Ms. Jorgenson reported that due to DOD’s growing spend on services Congress and the department have taken a special interest in the acquisition of services over the last several years. The BBP initiatives have stemmed from this increased interest. The preponderance of the USTRANSCOM spend (about ninety-two percent) is in transportation services, with the rest on IT and professional services. While this is a significant amount of money for USTRANSCOM, it only represents around three percent of the total DOD spend on services. However, this does not diminish its importance because every penny saved in the expenditure of logistics infrastructure and enterprise can put towards modernization of the DOD and at this time that is critical.

Mr. Ginman recounted the history of the BBP initiative, saying that when it first came out it was a focus on best practices.

As BBP gave way to BBP 2.0 the focus

DECEMBER 2014

shifted to critical thinking and judgment.

The intent with this shift was to get the acquisition workforce to really understand the deal they were making, what was wanted, and how to go about making it happen, rather than just putting together a contract as it had been done in the past.

BBP 3.0 is currently out for public comment and Mr. Ginman encouraged the audience to provide feedback on it. The intent is to issue BBP 3.0 in its final format in the January or February timeframe.

Under Secretary of Defense Frank Kendall has had six priorities related to BBP, with only one—support the warfighter—being prioritized. The other five priorities include affordability, efficiency, strengthen the industrial base, strengthen the acquisition workforce, and protect the future. As you look at BBP, BBP 2.0, and now BBP 3.0 there is a move back to dominance and technical excellence. Of the six priorities, protecting the future was the only one that was not really addressed in BBP or BBP 2.0. The questions this priority brings up are what are we doing now that is going to give us the ability to fight a war 20 years from now and what technologies will we need? There were seven broad areas covered by BBP and BBP 2.0: affordable programs, controlling cost, incentivizing productivity and innovation, promote effective competition, improve the professionalism of the acquisition workforce, eliminate unproductive processes and bureaucracy, and improve tradecraft in services. These areas remain a part of BBP 3.0. At the end of the day, BBP is not about reforming something it is about making incremental improvement in how we do our business, and it’s a move towards data and data driven decisions. Regarding lowest price, technically acceptable contracts Mr. Ginman expressed the need to emphasize the “technically acceptable” aspect and really determine what that means.

LTG Dail felt that over the last ten years we have been in a period of tremendous

evolutionary change in how we are executing and delivering enterprise level capabilities. Enterprises are being extended around the globe and are now linking up with command authorities in theaters of operation. He continued that if there was an area where we should focus first it is on the collaborative effort that must occur between the government, operators, industry, and contracting officials. We need to do a better job of defining requirements, taking into consideration leap ahead innovative solutions, and the best contract approach.

Collaboration is no longer all taking place in one location and it is important to get the best team in place because we are working in such a fast-paced, interconnected global environment. Collaboration must continue beyond the contracting process. Improvements need to be made in collaborating and executing where the infrastructure and processes in the systems of the network enterprise meet the requirement to produce and execute in faraway locations or around our country. We also need to utilize every appropriate contracting tool available. The objective should be

to be better, move forward, and get a better outcome for the client. None of this can be accomplished without better education of those involved. One should not be satisfied with re-competing yesterday’s solutions to try to address tomorrow’s problems.

Mr. Hopkins pointed out the integral role the defense transportation industry and its technical excellence has played in the US’ ability to project power around the globe in some of the most challenging environments. This technical excellence has emanated from the industrial base and its ability to integrate into the larger global network. Government volumes are down and segments of the industry are stressed so the emphasis in BBP 3.0 on trying to maintain the US’ dominant capabilities is timely. We need to make sure to maintain our technical excellence and the way to do that is to focus on our core competencies which is based on having a strong transportation industrial base. History has shown that innovation will be a natural byproduct of technical excellence intersecting with necessity. The transportation industry with a strong industrial base has the capability

to adapt to any emerging threats. Technical excellence is something that we should not take for granted. Every action should be measured against it as a primary goal.

Transportation Analytics & Predictive Analysis Roundtable

Moderator: Bruce Busler, Director, Joint Distribution Process Analysis Center, USTRANSCOM, with panelists: • Frank Stein, Director of Analytics Solution Center, IBM • Chris Holliday, Manager, Analytics and Forecasting, FedEx Express • Peeter Kivestu, Senior Logistics Consultant Transportation and Logistics, Teradata Corporation • Scott D. Jossey, Business Intelligence Information Technology, Delta Air Lines, Inc. • Marc Boyle, President and CEO, Boyle Transportation, Inc. Mr. Busler commented that the theme of the Fall Meeting, Changes & Solutions, emphasizes how important it is to deal

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with change and find better solutions— and analysis and analytics are an essential aspect of that. Analysis and analytics allow us to make better fact-based, datadriven outcomes occur and are becoming more prevalent in our business activities.

You can gather information, but unless you can make it relevant in the business process it doesn’t have a lot of value. Data analysis answers the question of what happened, with the predictive part addressing why it happened and what is next.

Mr. Holliday continued that faster, cheaper hardware is allowing the storage of massive amounts of data which provides opportunity to model and improve operations. The three things FedEx looks at inData is focused on operational objectives and many organizations are now finding that they can get a return on their investment within one year. Organizations are starting to augment their internal data with external data. While combining these sets of data can provide additional correlations, building such a model takes more interconnections which can prove difficult. ternally to be successful in its operations research is customer cooperation to ensure solutions that work, cost savings, and continuous improvement. He also explained that forecasting is an important first step in nearly every stage of the planning process.

For FedEx, forecasting involves both long lead planning which can be difficult to predict and short-term lead planning which requires the utmost accuracy, since it deals with real people and assets on the ground.

Mr. Stein added that while government has a lot of data, it can be difficult to gain insights from that data. The biggest impediments to this are based on leadership and culture rather than technology.

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Mr. Stein said companies are starting to differentiate themselves based upon the use of data and data analytics, and are attributing accomplishments to speed driven analysis. The need to move quickly is driving towards the pervasive use of analytics, and building systems for agility and flexibility. Data is focused on operational objectives and many organizations are now finding that they can get a return on their investment within one year. Organizations are starting to augment their internal data with external data. While combining these sets of data can provide additional correlations, building such a model takes more interconnections which can prove difficult. Organizations are also starting to use more sophisticated approaches to things such as anomaly detection, predictive modeling, optimization, etc. In addition, they are starting to integrate analytics into the fabric of their execution processes. One ongoing issue is a skills gap, as there are not enough skilled practitioners available in this area.

The trucking industry has progressed past optimization models for truckload assignment and network modeling and is utilizing analytics in three critical areas: driver retention, safety, and maintenance.

Regarding retention, Mr. Boyle said that the greatest problem facing the trucking industry is the driver shortage. There is opportunity to increase retention and reduce recruiting costs by utilizing insights from data gained through instruments such as surveys and exit interviews. Mr. Boyle felt that one must start with a sense of where the value of data will be derived whether that is in reducing operating costs, increasing revenue, or some other measurement.

He also stated that the best models incorporate insights from users. It is important to remember that any change will require change management. In addition, it is important to make sure you get the investment out of this process that you put into it and that you get some sort of continu-

DECEMBER 2014

ous improvement from your models.

Mr. Jossey said that there is focus at Delta is to find all of its data and bring it into one location so users don’t have to hunt for it. In his estimation the most important aspect of using metrics to support performance is not losing sight of the bigger lifecycle of the analytics process. The first part of the analytics lifecycle is to find data about a specific process or event.

From that data, Key Performance Indicators (KPIs) are developed. The KPIs are gathered as a scorecard and then compiled in to a performance management system, driving leaders to take this data into greater consideration. While this reporting and data analysis is just the first part of the analytics lifecycle, it is where many business units tend to stop. The next step is taking the data to drive improvements in the KPIs, this is an area where higherlevel skills are needed. Using statistics and predictive analytics can help correct and prevent problems. A key factor in making all this work in the end is having predictive analysis that is accurate and trusted.

According to Mr. Kivestu, Teradata considers analytics a journey as it is an evolving capability building towards a deeper understanding of what provides value to the end user. Data warehousing analytics allows one to respond to questions and the unknown. Most of the time data is used with an applications mentality, meaning one thinks simply of what the question is and then what the answer is.

However, Mr. Kivestu suggests using data with an analytics mentality which considers the question then considers subsequent questions. Today, data is at a point where it can provide answers to questions before they are even asked. In many cases analytics addresses a business pain point and often the solution is as simple as utilizing underutilized assets. Most significantly analytics is able to provide the possibility of end-to-end and enterprise performance visibility. DTJ

NDTA-USTRANSCOM 2014 Fall Meeting Survey RESULTS

1. What were your primary reasons for attending the meeting? Select up to two answers.

Committee Meetings 34.3% Speakers 42.6% Roundtable Topics 37.0% Expo Hall 13.0% Networking 50.0% Location / Venue 2.8% Other 3.7%

2. The meeting’s format consisted of a mix of speakers and roundtable discussions.

Which meeting format do you prefer?

Primarily Roundtables 14.8% Primarily Speakers 5.6% A Mix of Both 75.0% Other 4.6%

3. On a scale of one to five (with five being very well and one being not at all) please rate how well the meeting format and room set-up enabled adequate audience engagement and opportunities to ask questions.

5 32.9% 4 39.2% 3 21.5% 2 6.3% 1 0%

4. On a scale of one to five (with five being extremely and one being not at all) how valuable was each roundtable to you?

5

4

3

2

1

No Opinion/ Did Not Attend

Operational Update

34.3%

38.9%

13.9%

4.6%

0.9%

7.4%

DOD Leveraging Commercial Networks

25.9%

42.6%

18.5%

2.8%

2.8%

7.4%

Commercial Best Practices & Efficiencies in Government

20.4%

37.0%

23.2%

8.3%

1.9%

9.3%

Better Buying Power

15.7%

22.2%

28.7%

9.3%

3.7%

20.4%

Transportation Analytics & Predictive Analysis

22.2%

27.8%

15.7%

9.3%

6.5%

18.5%

5. On a scale of one to five (with five being excellent and one being poor) how would you rate the venue/location?

5 47.2% 4 38.0% 3 12.0% 2 1.9% 1 0.9%

6. Did the social opportunities (breaks, lunch, expo, and receptions) provide adequate time to network among your industry and DOD colleagues?

Yes, it was the perfect amount of networking time 75.0% No, I would have liked more time to network

21.3%

No, I would have preferred less networking time

3.7%

7. On a scale of one to five (with five being excellent and one being poor) how would you rate the Fall Meeting overall?

5 38.9% 4 45.1% 3 13.9% 2 0.9% 1 0.9%

8. Should NDTA and USTRANSCOM schedule and organize a similar meeting next year?

Yes 94.4% No 5.6%

To view responses to additional open-ended survey questions please visit www.ndtahq.com.

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Gold sponsors

Silver sponsors

AAT Carriers, Inc. • American Roll-On Roll-Off Carrier • BNSF Railway FedEx Government Services • Hapag-Lloyd USA, LLC The Pasha Group • Southwest Airlines Co. • Teradata Universal Truckload Services, Inc. • U.S. Bank Bronze sponsors

Avis Budget Group • Baggett Transportation Company • Chalich Trucking, Inc. DHL Express US • Echo Global Logistics • Intermarine, LLC • One Network Enterprises Panther Premium Logistics • Port of Port Arthur Proceeds from the NDTA Sponsorship Program support the NDTA general operating fund. Participation in the NDTA Sponsorship Program does not imply support or endorsement by USTRANSCOM, its component commands, or any other US government entity.

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Cut at line & mail or fax to: National Defense Transportation Association | 50 S. Pickett St., Suite 220, Alexandria, VA 22304-7296 | (FAX) 703-823-8761

Costs are minimal, but the rewards are great! >> Contact NDTA for more information at 703-751-5011 or visit www.ndtahq.com << NDTA Membership

Maybe you know someone who would like to join. The

National Defense Transportation Association (NDTA) is a nonpolitical and non-profit educational Association composed of government, military, and industry professionals dedicated to fostering a strong and efficient global transportation and logistics system in support of national security. Membership in NDTA affords opportunities to serve and educate the community in your area of expertise as well as other special benefits.

Corporate Membership

Corporate membership in NDTA provides increased exposure and networking opportunities for those companies wanting to do business with the US government or military. Membership should be a key part of any business plan where the defense and government transportation, travel, and logistics system is the target market.

Position/Title

When you join NDTA as a corporate member, your company’s executives will have the opportunity to share ideas with top military, government, and industry officials at NDTA events.

These events are conducted and attended by high-level military decision-makers, defense and other government officials, and industry leaders—the individuals who are setting and influencing the transportation, travel, and logistics agenda for the future.

Organization

Application for Membership

Mailing Address

Name

Application for Membership Name

City

State Zip

Position/Title

Work Phone Email

Organization

Birth Date

Mailing Address

Chapter Affiliation

Sponsor

City

Membership Type

Work Phone Email

State Zip

$400.00 – LIFE $110.00 – Regular (3 Years)

Fax

$40.00 – Regular (1 Year) $30.00 – SPECIAL RATE Young Leaders (35 years or younger) Gov (GS 10 & below)/ Military (Pay grade 03 & below + enlisted grades) Retired (Not employed)

Membership Type $9,500.00 – Chairman’s Circle Plus (Global or national company with multiple operating entities) $6,200.00 – Chairman’s Circle (Global or national operating company) $1,200.00 – Sustaining Member (National or Regional operating company)

$15.00 – Students

$550.00 – Regional Patron (Small Business or local operating company)

Amount Remitted $_____________________

Amount Remitted $_____________________

Donation to the Foundation $_____________________

Donation to the Foundation $_____________________

Check #_________

Discover

Visa

MasterCard

American Express

Card No.

Check #_________

Discover

Visa

MasterCard

American Express

Card No. Expiration Date

Expiration Date

Cardholder’s Name

Cardholder’s Name

Signature

Signature

www.ndtahq.com | 21

In Memory of

COL Joseph A. Torsani, Jr., USA (Ret.)

On November 21, 2014 NDTA lost a great friend.

J

oe Torsani attended his first NDTA Board of Directors meeting as Chairman of the Council of Regional Presidents (CORP) on 19 May 1990, but this was not his first office in the NDTA. He had served at all levels of leadership from chapter to regional and national level. At that meeting, Joe said he saw his role in his new office as being the direct link between the individual members of the Association and the Board of Directors. Those words guided his actions as Chairman, CORP for over nineteen years. Working with his fellow regional presidents he remained in constant contact with the membership to ensure NDTA leadership was kept current on the health of the chapters and the views of the individual members.

He was a key player with General Edward Honor in revitalizing the Association to meet the challenges of a world transitioning from Cold War to globalization.

Years later he performed a similar function by establishing task forces to study the new demands on the chapters and the membership in a world of constant deployments and base restructuring, and to explore the possibilities of the new forms of communication becoming available.

A tireless advocate for the Young Leaders program, Joe served on local chapter boards wherever he was in

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the world and on a variety of national-level NDTA committees. He served as Vice President of Ocean Shipping, as Vice President of the NDTA Foundation, and as Maryland State Vice President. He has been honored with the NDTAâ&#x20AC;&#x2122;s Distinguished Service Award, Presidential Special Achievement Award, and NDTA Presidentâ&#x20AC;&#x2122;s Award.

He brought to all his efforts the benefit of over forty years of experience in logistics management in the military and commercial fields, and he always shared the the fruit of that experience with others as a mentor to young people, CEOs, and General Officers. Over the years he expended a great deal of his own time, energy, and resources traveling the country representing NDTA. For many people, Joe was the face of NDTA, and that face always had a smile on it.

In his most important role Joe served as loving husband of 60 years to his wife Faith, and together they had five children, eleven grandchildren, and two great grandchildren.

Joe Torsani was a true friend to this Association, an outstanding soldier, devoted member of the transportation and logistics community, loving husband and father, and he will be dearly missed. DTJ

Behind your operation, is our operation.

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Our long-standing relationship with the military has proven that APL has what it takes to deliver essential supplies to our troops, on time and on target. And we’ve been proud to offer our unsurpassed service to the U.S. Government for more than 160 years.

With multiple weekly U.S. Flag services linking North America to Asia and Europe plus feeder routes within the Middle East, we make sure mission critical equipment reaches those who need it, so they can complete their Moving Business mission with confidence.

Forward To learn more about how we support those who serve, visit www.apl.com

apl.com www.ndtahq.com | 23

Chapter Spotlight The Okinawa Chapter

By Bob Sherrill, Okinawa Chapter President

N

DTA’s Okinawa Chapter is charging forward with new programs, professional education and knowledge sharing, with community involvement, mentoring and scholarship as our cornerstones. In just one year, we restarted a floundering chapter with no meetings or bank account, taking it from ground zero to one of the more active NDTA chapters.

Under the leadership of President Bob Sherrill and his cohort in crime 1st Vice President James Leavitt, the revitalized and reinvigorated chapter has turned into a viable and enriching professional organization on Okinawa. We have a board of directors of 15 that includes a mix of military, DOD civilian, and commercial partners. The Chapter’s key partners include: DB Schenker; DHL; Booz Allen Hamilton; GSA; UPS; FedEx; DLA; and Delta Airlines, as well as the Marine Corps Installations Pacific, III Marine Expeditionary Force, 3rd Marine Logistics Group, 1st Marine Air Wing, 18th Wing (Air Force), 10th Regional Support Group (Army) and Commander, Fleet Activities Okinawa.

While membership is growing slowly, it’s growing. As we offer monthly professional programs our name gets out. We’ve been able to combine with the local Air Force Logistics Officer Association (LOA) and the Japan Chapter of the Society of American Military Engineers (SAME) for joint meetings and cross pollination between each other’s programs.

Chapter “Big Dog” speakers this past year were: MajGen Pete Talleri, Marine Corps Installations Pacific (MCIPAC); LTG Ken Wykle, NDTA President; and Brig Gen Mark Johnson, Defense Logistics Agency Aviation Commander. We also took some significant tours of the 33rd Rescue Squadron, DLA Energy, 835th Transportation (Okinawa Water Port), an American President Lines (APL) ship, 733rd Air Mobility Squadron Freight Operations, and 18th Logistics Readiness Squadron. Our community programs included work with the Special Olympics, Veterans Ceremonies, Nation24 |

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al Transportation Week poster contest (resulting in the first time overseas winners), POW/MIA Recognition Day ceremony, and speaking to local elementary schools about the significance to transportation and logistics. Our Young Leaders programs also went well with a mentoring program that for some is still on going and a scholarship bowling tournament where we raised $410.

With our first full year under our belt, we earned the prestigious International Chapter of the Year Award and the Young Leaders International Chapter of the Year Award for category I through consistent monthly programs and great volunteers.

We also had our first ever scholarship golf tournament raising over $2,850. We were

DECEMBER 2014

continued on page 28

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www.ndtahq.com | 25

AAR CORP. + PLUS Agility Defense & Government Services + PLUS AIT Worldwide Logistics, Inc. American Shipping & Logistics Group APL Limited Atlas Air Worldwide Holdings Bennett Motor Express, LLC Boyle Transportation, Inc. CEVA Logistics Choice Hotels International FedEx Final Mile Logistics Hapag-Lloyd USA, LLC Innovative Logistics, LLC Interstate Moving | Relocation | Logistics Landstar System, Inc. Leidos Liberty Global Logistics-Liberty Maritime Maersk Line, Limited National Air Cargo Omni Air International Panther Expedited Services, Inc. Supreme Group USA, LLC TOTE, Inc. Universal Truckload Services, Inc.

Nâ&#x20AC;&#x2122;S CIR RMA CL AI E H C

Aeroscraft American Roll-On Roll-Off Carrier BNSF Railway Bristol Associates Crowley Maritime Corp.

CSX Transportation DHL Global Forwarding

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Fikes Truck Line International Shipholding Corporation Lockheed Martin Matson Navigation Company Inc. National Air Carrier Association Norfolk Southern Corporation The Pasha Group

Ports America R & R Trucking Raith-CTS Logistics SAIC U.S. Bank Union Pacific Railroad UPS

These corporations are a distinctive group of NDTA Members who, through their generous support of the Association, have dedicated themselves to supporting an expansion of NDTA programs to benefit our members and defense transportation preparedness.

Defense Transportation Journal

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DECEMBER 2014

HONOR ROLL

OF

SUSTAINING MEMBERS AND REGIONAL PATRONS

ALL OF THESE FIRMS SUPPORT THE PURPOSES AND OBJECTIVES OF NDTA

SUSTAINING MEMBERS 1-800-PACK-RAT A Team Logistics LLC AAT Carriers ABF Freight System, Inc. Accenture Federal Services Advantage Rent A Car Air Transport International, Inc. Airlines for America Albert Moving Al-Hamd International Container Terminal American Maritime Officers Army & Air Force Exchange Service ARTEMIS Global Logistics & Solutions Arven Services, LLC Associated Global Systems Atlas International Avis Budget Group aVolt Incorporated Baggett Transportation Company Barling Bay, LLC Best Western International Bollore Africa Logistics C.L. Services, Inc. C2 Freight Resources, Inc. Carlson Rezidor Hotel Group CGI Chalich Trucking, Inc. Chamber of Shipping of America Coyne Airways Coyote Logistics, LLC Crane Worldwide Logistics, LLC CRST Logistics, Inc. Cubic Global Tracking Solutions, Inc.

REGIONAL PATRONS Acme Truck Line, Inc. AFBEN, Inc. Agile Defense, Inc. Airbus Group, Inc. Alaska Marine Lines Alaska West Express American Moving & Storage Association American Trucking Associations Amyx Association of American Railroads ATS Specialized, Inc. Boeing Company C5T Corporation CakeBoxx Technologies Cargo Experts Corp.

Cavalier Logistics Ceres Terminals Incorporated

CWT SatoTravel DAMCO Delta Air Lines DHL Express Echo Global Logistics, Inc. Engility Corporation Enterprise Database Corporation Estes Forwarding Worldwide, LLC Executive Moving Systems, Inc. Express-1, Inc. FlightSafety International Fluor FMN International, Inc. GE Aviation General Dynamics/American Overseas Marine GeoDecisions Greatwide Truckload Management Green Valley Transportation Corp.

Hertz Corporation Hilton Worldwide Horizon Lines, LLC Hub Group, Inc. IBM Institute of Hazardous Materials Management Intercomp Company Intermarine, LLC Intermodal Association of North America (IANA) International Auto Logistics International Longshoremen’s Association (ILA), AFL-CIO International Organization of Masters, Mates & Pilots J. B. Hunt Transport, Inc.

Kansas City Southern Keystone Shipping Co. KGL Holding Knight Transportation Kuehne + Nagel, Inc. Labelmaster LMI Lockheed Martin Aeronautics Logistic Dynamics, Inc. M2 Transport Marine Engineers’ Beneficial Association Martin Logistics Incorporated Mayflower Transit McCollister’s Transportation Systems, Inc. McLane Advanced Technologies Menlo Worldwide Logistics Mercer Transportation Company National Van Lines, Inc. Network FOB, Inc. Northern Air Cargo Inc. Ocean Shipholdings, Inc. Omega World Travel Omnitracs, LLC One Network Enterprises, Inc. ORBCOMM Panalpina Pilot Freight Services PODS Port of Beaumont Port of San Diego Posidon Pratt & Whitney Preferred Systems Solutions, Inc. Prestera Trucking, Inc. Priority Solutions International Priority Worldwide Services

Ramar Transportation, Inc. Roadrunner Transportation Systems Sammons Trucking Savi SBA Global Logistic Services Seafarers International Union of N.A. AGLIWD (SIU NA) Sealed Air Corporation Sealift, Inc. Secured Land Transport SEKO Logistics SkyLink Air & Logistic Support (USA) II, Inc. Southern Air Southwest Airlines Co. SRA International, Inc. Teradata Corporation Textainer Equipment Management (U.S.) Limited Titan Services TQL Transportation Institute Transportation Intermediaries Assn. (TIA) Transportation Management Services Tri-State Motor Transit Co. (TSMT) TTX Company Tucker Company Worldwide, Inc. United Airlines United Van Lines, Inc. UniTrans International, Inc. USA Jet Airlines UTi Aerospace and Defense Group Volga Dnepr Airlines Winston & Strawn LLP Women In Trucking Association, Inc.

CGM-NV a NovaVision Company Chapman Freeborn Airchartering Chassis King, Inc. Crystal Forwarding Dalko Resources, Inc. DPRA, Inc. Enterprise Holdings Enterprise Management Systems Europcar Car & Truck Rental FlightWorks Fox Rent A Car Hanjin Intermodal America, Inc. Hospitality Logistics International JAS Forwarding John D. Odegard School of Aerospace Sciences Kalitta Charters, LLC LMJ International Logistics, LLC M/S Securlog (Private) Limited, Pakistan

MacGregor USA, Inc. Marriott International MCR Federal, LLC Mi-Jack Products Military Sealift Command (MSC) Miramar Transportation Naniq Global Logistics LLC National Motor Freight Traffic Association, Inc. NCI Information Systems, Inc. NFI North Carolina State Ports Authority Oakwood Worldwide Overdrive Logistics, Inc. Overwatch, Inc. (a division of Avalon Risk Management) Owner-Operator Independent Drivers Association Pak Shaheen Freighters (Pvt) Ltd.

Patriot Contract Services, LLC Philadelphia Regional Port Authority PITT OHIO Port of Port Arthur Portus Reckart Logistics, Inc. REUSA-WRAPS Reusable Logistics Solutions, LLC Seabridge, Inc. Seatac Marine Services Southeast Vocational Alliance TechGuard Security Tennessee Steel Haulers The Cartwright Companies Trailer Transit, Inc Trans Global Logistics Europe GmbH TRI-STATE Expedited Service, Inc. Utley, Inc. YRC Freight www.ndtahq.com | 27

Defense Transportation Journal

41: A Portrait of My Father by George W. Bush 41: A Portrait of My Father by George W. Bush (Crown Publishing Group, 2014), ISBN-13: 9780553447781, 304 pages, in hardcover ($17.95) and Nook book ($12.99).

F

orty-three men have served as President of the United States. Countless books have been written about them. But never before has a President told the story of his father, another President, through his own eyes and in his own words. A unique and intimate biography, the book covers the entire scope of the elder President Bush’s life and career, including his service in the

continued from page 24

able to present to the local high schools two $1,000 checks towards college expenses, as well as NDTA memberships to the top five students.

Why has this chapter done well? It takes leadership and commitment by those leaders. Having a working board that supports the programs is very important. As is getting with key organization leaders and explaining the benefits of NDTA, in addition to being open to other similar organizations where we can combine or piggyback off of their programs. Membership is always a challenge, but asking your members to bring more folks to various interesting programs fosters the potential for new members.

The Okinawa chapter of the NDTA looks for ways to include our members and potential members in everything we do and offers anyone the opportunity to enjoy our programs. Even with a changing of the guard this month as the current President rotates back to Alaska, the chapter will be in good hands. New board members have stepped up from both the military and industry civilians. Having two major military branches on the island (Marine Corps and Air Force) combined with our continue dedication to increase the professional education of our soldiers, sailors, airmen and marines enables the possibilities for even greater success.

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Pacific during World War II, his pioneering work in the Texas oil business, and his political rise as a Congressman, US Representative to China and the United Nations, CIA Director, Vice President, and President. The book shines new light on both the accomplished statesman and the warm, decent man known best by his family. In addition, George W. Bush discusses his father’s influence on him throughout his own life, from his childhood in West Texas to his early campaign trips with his father, and from his decision to go into politics to his own two-term Presidency. (From the Publisher.) DTJ In this global competitive environment, it is important both as individuals and as an organization that we constantly seek ways to set new goals and objectives in order to improve ourselves and our organization. One way to maintain and enhance our skills and knowledge is to take advantage of the numerous professional development opportunities available—including those provided by organizations like NDTA. Knowledge and competence in business are vital to success and in developing these skills you will find people who can help you along the way to learn, develop relationships, and build on your successes. Engage yourself—this engagement will help you meet people, make friends, find mentors, and facilitate future possibilities. Participation in NDTA provides an excellent opportunity to meet those with similar interests, exchange ideas, and expand your horizons. Too often we get caught up in day-to-day aspects of our jobs and forget that increasing our knowledge, and developing leadership and management skills takes time and effort. Professional development is something we owe ourselves, our peers, and subordinates, and helping others is often a byproduct of these efforts. NDTA can challenge you to make a difference, but you have to take the first step. Join us as we reinvigorate the Okinawa Chapter of the NDTA! DTJ

DECEMBER 2014

Statement of Ownership, Management, and Circulation as required by the Act of August 12, 1970; Section 3685, United States Code, for Defense Transportation Journal, published bi-monthly at Alexandria, Virginia, for September 2014.

1. Location of known office of publication: 50 South Pickett St., Suite 220, Alexandria, VA 22304.

2. Location of the headquarters of general business office of the publisher: 50 South Pickett St., Suite 220, Alexandria, VA 22304.

3. Publisher: National Defense Transportation Association, 50 S. Pickett St., Suite 220, Alexandria, VA 22304; Publisher, LTG Ken Wykle, USA (Ret.); Editor, Dr. Kent Gourdin, College of Charleston, Charleston, SC; Managing Editor, Sharon Lo. 4. Owner: National Defense Transportation Association, 50 South Pickett St., Suite 220, Alexandria, VA 22304-7296 (an incorporated association).

5. Known bondholders, mortgages, and other security holders owning or holding 1 percent of more of total amount of bonds, mortgages or other securities: There are none.

6. Average number of copies each issue during the preceding 12 months: Total 7,925; paid circulation by mail, 7,686; sales through dealers, carrier or other means, 314; free distribution by mail or other means, 0; total distribution 7,925; copies not distributed, 50. Percent paid and/or requested circulation: 98%.

Sharon Lo, Managing Editor.

DTJ Index of Advertisers APL.......................................................... 23 ARC............................................................ 7 Bennett..................................................... 2 Boyle Transportation.............................. 4 Budget.................................................... 17 FedEx.......................................................C4 Landstar..................................................C3 Maersk Line, Limited.............................. 1 Southwest..............................................C2 Universal................................................ 25

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