Defense Transportation Journal

The Official Publication of the National Defense Transportation Association

December 2013

www.ndtahq.com

Meetings in Brief Defense Travel & Government Transportation Meeting NDTA-USTRANSCOM Fall Meeting

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December 2013

FEATURES December 2013 • Vol 69, No. 6

Publisher

LTG Ken Wykle, USA (Ret.)

NDTA Defense Travel & Government Transportation Meeting

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September 19, 2013 Alexandria, Virginia

Editor

Dr. Kent N. Gourdin Managing Editor

Sharon Lo | sharon@ndtahq.com Circulation Manager

Leah Ashe | leah@ndtahq.com

NDTA-USTRANSCOM Fall Meeting

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October 15-17, 2013 St. Louis, Missouri

Publishing Office

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

Debbie Bretches

Advertising Account Manager

Jim Lindsey

Advertising & Production Carden Jennings Publishing Co., Ltd. Custom Publishing Division 375 Greenbrier Drive, Suite 100 Charlottesville, VA 22901 434-817-2000, x261 • F 434-817-2020

departments A-35 | Lori Leffler. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 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.

Postmaster: Send address changes to: Defense Transportation Journal 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296

Editorial | Dr. Kent N. Gourdin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 President’s Corner | LTG Ken Wykle, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Chapter spotlight | Reginald C. Ali. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 professional development | Irvin Varkonyi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 chairman’s circle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 honor roll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Bookshelf Ideas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 index of advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

A-35

NDTA Headquarters Staff LTG Kenneth Wykle, USA (Ret.) President

The A-35 Committee: Always Moving Forward

COL Mark Victorson, USA (Ret.) VP Membership Patty Casidy VP Finance

Lori Leffler, CTC, A-35 Chair

Lee Matthews VP Marketing and Corporate Development Leah Ashe Manager, Database 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 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.

Global Government Strategic Manager, The Hertz Corporation

A

ccording to studies, an association’s ability to provide members activities that will help them succeed in their careers is a decision maker on whether to join and how actively they participate. Studies also show that two of the most important functions that an association can provide are professional development and mentoring. The good news for NDTA is that we are ahead of the curve with our established Action-35 “A-35” Program, even with our changing environment!

As we close 2013 and look toward next year, it is important to reflect on the past year. 2013 brought many changes to the government and NDTA, including the A-35 Program. With the reduction in meetings and conferences, our ability for A-35ers to meet and network became more challenging. Our annual national meetings always brought our A-35 leaders together and energized our program.

However, our program is as resilient as our members. A-35 leadership at the chapter level kept programs alive through local events and activities, including professional development, mentoring programs, networking events, and service events—all of which support our members and programs, including our scholarship programs. Thanks to our committed

Editorial Content

We’re making a change!

For a Media Kit and Archives, visit www.ndtahq.com/education_dtj.htm

Beginning January 1st, the NDTA’s Action-35 (A-35) Committee will be changing its name to the Young Leaders Committee. The mission of the committee will remain the same—to provide professional, academic, and personal opportunities to young professionals, students, and military, through educational, networking, and social events that enhance their careers and prepare them for leadership roles. We hope the new name will better reflect this mission and the committee membership.

Dr. Kent N. Gourdin, Editor, DTJ Director of the Global Logistics & Transportation Program, College of Charleston, Charleston, SC 843-953-5327 • F 843-953-5697 gourdink@cofc.edu 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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Defense Transportation Journal

leadership and members, the A-35s still had a successful year!

We plan to continue that success moving forward. As we do, A-35ers will be using technology to enhance our current program. NDTA headquarters and chapters already utilize social media, including Facebook and Twitter, to reach members and promote activities. If you haven’t already, friend us on Facebook or follow us on Twitter.

What about webinars? We are implementing them for both networking and professional development! Webinars allow members to participate long-distance, so A-35ers around the country and across the globe will be able to interact more often and without traveling. Our first planned webinar will provide training on how best to implement, grow, or revitalize chapter A-35 programs.

A-35ers, do you have a special interest or talent with technology that would benefit us? If you do, please let us know, as we are looking to incorporate the most effective ways to interact.

As our environment continues to evolve, the A-35 program will gain even more relevance with our senior and young members of NDTA. We will continue to bridge the gap and develop tomorrow’s leaders today. DTJ

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December 2013

Developing the Future Workforce Dr. Kent N. Gourdin, Editor, DTJ Director, Global Logistics and Transportation Program College of Charleston

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ith the cancellation of this year’s Forum, I decided to attend the Council of Supply Chain Management Professionals’ (CSCMP) annual conference in Denver. I am writing this editorial from there, having just returned from an extremely interesting educational session. Two researchers presented a paper describing an outreach program designed to increase awareness of supply chain management as a field of study to elementary and middle school students. Specifically, the project examined opportunities for utilizing the developed outreach materials in an effort to advance supply chain management talent development efforts.

Most of you are aware of the critical shortage of qualified people available to fill jobs in logistics and transportation.

While the truck driver shortage has arguably gotten the most press, the deficit affects functions throughout the entire supply chain, and only stands to grow as the demand for workers increases due to the expected growth in global trade.

I think there are two reasons why these jobs go begging. First, the work is often not very sexy; second, young people simply do not understand the plethora of opportunities available for students from all educational and economic backgrounds. The presenters asked members of the audience (consisting primarily of academics and professionals intimately familiar with the area), to raise their hands to indicate when they first heard about logistics; by far, the majority did not raise their hands until the timeframe mentioned was college or even beyond. In fact, I would argue that most of the adult population doesn’t understand logistics or how it impacts their daily lives, despite UPS’ best efforts to spread the gospel.

The Propeller Club Port of Charleston has wrestled with the same issue.

We made an effort several years ago to reach out to some of the local high schools with presentations intended to educate students about job opportunities available on the waterfront, but the interest was minimal. Perhaps you have heard the crickets chirping wherever you are. At any rate, the researchers introduced earlier decided to raise the awareness of even younger children.

They went into an elementary school and used a lemonade stand to illustrate the concept of a supply chain. Specifically, the kids had to source lemons, sugar, water, and cups to make the lemonade, which they were allowed to sell at school. Obviously, if something was missing, they couldn’t make and sell the drink. The middle school (6th, 7th, and 8th grade) students were charged with designing a Lego car from pieces (raw material), which they had to order and assemble. Simple enough, except that inbound supply chain disruptions were introduced to keep things interesting. In addition, kids being kids, some of the designs were pretty wild which made for finished products that were not very stable. Thus, the car might be assem-

EDITORIAL bled per the “plan,” but didn’t hold up to actual use. These students were old enough to understand the consequences of a stock-out or a poor product design, and their comments reflected the frustration they felt when the supply chain failed to work.

Perhaps therein lies the key: helping students to understand the big picture early-on, so they can find a place for themselves working in some small piece of the supply chain arena, be it transportation, warehousing, systems analysis, cargo handling, or whatever. For students joining the workforce directly out of high school, an entry level job could very well spur their interest in returning to school for a college degree in logistics or some related field. But, the reality is that not everyone can or should go to college. There are plenty of jobs that offer great career opportunities in logistics for people without a degree.

Those of us working in the logistics industries have to do a better job of helping people understand what we do. Clearly, there are creative ways to convey our understanding of these concepts to people of all ages that do not (yet) get it: the Beer Game for adults, designing a model car or running a lemonade stand for a younger audience. I think most would agree that knowledgeable and enthusiastic young people entering the workforce will be our salvation. We just need to fire them up while we still can. DTJ

Defense Transportation Journal 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 2013.

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 8,725; paid circulation by mail, 8,407; sales through dealers, carrier or other means, 349; free distribution by mail or other means, 228; total distribution 8,725; copies not distributed, 90. Percent paid and/or requested circulation: 96%. Sharon Lo, Managing Editor.

www.ndtahq.com | 5

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December 2013

PRESIDENT’S CORNER Implementing Change LTG Ken Wykle, USA (Ret.) NDTA President

G

reetings! My last two columns have focused on change, within government and NDTA. We started to implement change this fall by organizing two smaller meetings. In September, we held the NDTA Defense Travel and Government Transportation (DTGT) meeting in Alexandria, VA, followed in October by the NDTA-USTRANSCOM Fall Meeting in St. Louis, MO. The intent was to reduce/eliminate travel costs for government attendees and to structure the meetings to meet the needs of the attendees. For the DTGT meeting, NDTA coordinated with the Society of Government Travel Professionals (SGTP) to schedule the meeting immediately after its event and in the same facility. Before the Fall Meeting, NDTA and USTRANSCOM developed a co-sponsorship agreement that outlined the framework for the meeting. Together we developed the format, agenda, and identified program participants. Three In-Progress Reviews (IPRs) were held with the USTRANSCOM Commander and his staff.

Those attending the two meetings observed significant change in the format and content of the programs. The DTGT meeting consisted of a speaker and roundtables in the morning, and three focused breakout sessions in the afternoon. Mr. Don Stanton, Deputy Assistant Secretary of Defense for Transportation Policy, provided an overview of his organization’s policies and actions. The two roundtables focused on transportation requirements in support of natural disasters and inter-agency requirements. The afternoon breakout sessions included Defense Travel Management Office (DTMO) initiatives, Household Goods (HHG) Regionalization Program and timeline, and Department of Defense (DOD) programs for small businesses. For the Fall Meeting,

there were two speakers and multiple roundtables. The roundtables were allotted more time, consisted of more participants, and involved extensive dialogue between panel members and the audience.

Audio and video were used for those senior government officials who could not travel. The feedback on these changes was overwhelmingly positive.

Gen William Fraser, Commander of USTRANSCOM, opened the meeting.

He commented on the government shutdown and its impact on the command.

He indicated the DOD is providing more support to other nations, and the countries he visits are seeking cooperation and support from the US. Readiness of the organic and commercial fleets is a concern.

USTRANSCOM is working to bring more “business” into the Defense Transportation System (DTS). The Maritime Security Program (MSP) is essential for sealift readiness and to ensure the US has the capability to respond in a crisis. The command has established the Enterprise Readiness Center (ERC) to strengthen the government industry partnership, and focus on the capability and readiness of the fleets. Additionally, the Surface Executive Working Group (EWG) has been established and the first meeting held on 25 July 2013. An industry representative has been assigned to the ERC and will be rotated about every 120 days. This individual will provide the industry perspective on actions being worked within the command. The command is working to align resources and processes, and investing in human capital.

Following Gen Fraser’s remarks, NDTA’s Chairman, Ray Ebeling, took the stage. Mr. Ebeling discussed the sheer magnitude of challenge and change facing industry, and the uncertainty caused by the Continuing Resolution, sequestra-

tion, and the inability of our politicians to agree on a way forward. He encouraged us to place a renewed focus on our core principles of trust, collaboration, and teamwork. He emphasized the need to ensure the readiness of existing capability, the importance of the industrial base, and continuing to strengthen the partnership.

You may read his remarks on page 22 of this DTJ. Highlights from the roundtables

Reset & Rebalance discussed the collaboration necessary between government and industry in planning and executing the Afghanistan drawdown, the need for synchronization and balance. It included a discussion of the expected movement requirements, the lines of communication to be used during and after the Afghanistan drawdown, freedom of movement along the lines of communication, and security of retrograde cargo and unit moves.

The size of any force left in Afghanistan after 2014 is dependent on an agreement between the US and Afghanistan.

Sealift/Intermodal Issues and Solutions included a short discussion of the Maritime Strategy being developed by the Maritime Administration, and a midNovember 2013 meeting being hosted by the Department of Transportation (DOT) seeking comments and input from DOD and Industry. There was a discussion and continued on page 36

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The NDTA Defense Travel & Government Transportation Meeting September 19, 2013 | Alexandria, Virginia

The purpose of the Defense Travel and Government Transportation (DTGT) Meeting was to discuss current issues surrounding government programs that impact important commercial sectors. The agenda included discussions related to Passenger Travel, Household Goods, Small Businesses, as well as topics that affect all sectors. More information regarding the meeting, including presentation slides, can be found on ndtahq.com.

Office of the Secretary of Defense (OSD) Overview

Speaker: Don Stanton, Deputy Assistant Secretary of Defense (DASD) for Transportation Policy, with Special Guest: Paul Peters, Principal Deputy Assistant Secretary of Defense for Logistics and Materiel Readiness (L&MR) Mr. Stanton explained that several personnel changes were occuring in OSD. Alan Estevez, Assistant Secretary for Logistics and Materiel Readiness, was awaiting confirmation to become Principal Deputy Under Secretary for Acquisition, Technology and Logistics. This meant Mr. Estevez’s portfolio increased to include weapons systems, engineering and many other areas in addition to logistics.

Paul Peters had recently stepped up as the Principal DASD for Logistics and Materiel Readiness. Mr. Stanton invited Mr. Peters to say a few words.

Mr. Peters described some of the challenges being faced by OSD—lack of funding, uncertainty of future funding, inability to hire replacement personnel, and a looming government shutdown. He expounded that industry was being forced

to react to all of these issues and OSD deeply appreciated the service industry provides. The force structure used to be the military and civilians, it expanded to include the Reserves, and now contractors and industry have become the fourth pillar. There is nothing that this Nation does that does not involve industry working side-by-side with the Department of Defense (DOD).

From a logistics perspective, retrograde is the number one priority for OSD— bringing soldiers, sailors, airmen, and marines home, in addition to equipment needed for future military requirements.

In the end, the US will leave a lot of equipment behind, much of which will be given as support to coalition partners.

The US will also maintain support of the campaign in Afghanistan by continuing to shore up its government with equipment and sustainment packages. Despite these efforts to give materiel away, a good deal will remain which will require disposal, so only items with future military value must be shipped home.

Mr. Peters reported that his office was within budget and on schedule to meet the December 2014 deadline for the end

DTGT Meeting summary material is intended to provide an overview of the 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.

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Defense Transportation Journal

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December 2013

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of the war mandated by the President. As the war ends, focus will turn from the theater back to the business side of logistics.

When this shift occurred in the 1990s there was a tremendous impact on the military, with some calling it a “hollowed out force.” Mr. Peters attributed this to DOD failing to make the budget cuts it should have, which has become a lesson learned. DOD’s current proactive approach meant that, with intelligence and information, it was making cuts where it could afford to, rather than making cuts in reaction to budget cuts.

With regards to repositioning the military’s assets, Mr. Peters said that 98% of inventory would be in three locations in the US, with the other two percent being allocated across customer concentration areas. DOD must also balance this with the forward positioning shift to the Pacific.

These are significant changes made possible by transportation, which he cited as being one of the DOD’s most reliable assets.

Mr. Peters continued that under Better Buying Power (BBP) the department would continue to push performance-based agreements. Performance-Based Logistics agreements (PBLs) are about defining an outcome; having a few metrics to measure how well the outcome is being achieved; and then giving the vendor, supplier, or industry enough latitude to be innovative and efficient to meet the outcome, without the government telling them how to do it.

This is a real shift for many in the contracting world and guidance documents would be released later in the year to help the government contractors know when and how to use this type of arrangement.

Regarding the budget, Mr. Peters encouraged everyone to vote for leaders who would put together a workable budget, since any budget is ultimately better than no budget. He also mentioned a proposal that was being discussed in Congress that addressed the fact that DOD was the only agency in the federal government that does

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not have a clean financial statement. This makes the goal of achieving audit readiness by 2017 even more important, and especially within transportation. Mr. Peters closed by saying he looked forward to building a good relationship with everyone.

Mr. Stanton agreed with Mr. Peters that much uncertainty existed. He stated that Secretary of Defense Chuck Hagel had requested a Strategic Choices Management Review (SCMR), involving all Services, combatant commands, and agencies. The resulting report helped the Services make informed fiscal decisions as they worked on their budgets, it anchored the Quadrennial Defense Review (QDR) due to Congress in February 2014, and it allowed the department to think about its decisions and options moving forward with a continuing resolution and probable sequestration.

Secretary Hagel also wanted to see staff cuts of 20% in government civilians, contractors, and military. This included cutting the Secretary’s direct reports by consolidating and eliminating some jobs.

In addition, the Secretary signed a major review of the Pentagon’s organizational structure, aimed at cutting headquarters by almost $40 billion over the next ten years. General officers and flag officers are also continuing to be cut.

Mr. Stanton continued that DOD is committed to becoming corporate audit ready by fiscal year 2015. In order to help all stakeholders, a general officers steering committee and integrated process team on financial transportation auditability was created. Working on this project with the Comptroller and Defense Finance and Accounting Services (DFAS), OSD is looking at systems, putting together a plan of action, milestones, and metrics.

Personal property regionalization is another initiative OSD is working on. There are 167 personal property shipping offices worldwide and, over time, OSD is trying to get this down to 12. This will mean less military personnel will be working in per-

December 2013

sonal property. The consolidation of improved processes and standardizing levels of customer service across the defense enterprise are also part of the efforts. Some cost savings will be gained by the Services moving people less often.

Something that surface partners emphasize every time they meet with OSD is base access, which Mr. Stanton said was more difficult than it appeared. OSD had been working closely with the Transportation Security Administration (TSA) and its industrial partners to get accessible forms of identification, with the Transportation Worker Identification Card (TWIC). Mr. Stanton reported that OSD was still in the process of getting that going. However, it is not just those in transportation involved, a big player in the process is the Under Secretary for Intelligence because he controls DOD installation access.

Referencing DOD’s Strategic Guidance, Mr. Stanton said that strengthening national capacity entailed a whole of government approach. OSD was continuing to work on retrograde and reset. The State Department (DOS) and DOD are negotiating a bilateral security agreement, which is very important in determining final manning levels. As the Joint Staff moves forward in supporting DOD and national readiness, all the requirements, decisions, and mobility capabilities are being reviewed as we pivot to the Pacific. Rebalancing and the new 2012 Defense Strategic Guidance emphasize alliances, partnerships, capacity to mobilize and deploy. Mr. Stanton cited examples where members of the military and government were already working with partners throughout the Pacific region building relationships to ensure a multinational approach.

Natural Disaster Roundtable

Moderator: LTG Kenneth R. Wykle, USA (Ret.), President, NDTA, with panelists: • COL Jerry Thomas, USA (Ret.), Chief, Transportation Management,

• •

• •

Distribution Management Division, Logistics Management Directorate, Federal Emergency Management Agency (FEMA) Keith Robertory, Manager, Disaster Technology Support, American Red Cross John Abood, Team Leader/Contracting Officer, Transportation Division, Office of Acquisition and Assistance, US Agency for International Development (USAID) David Kless, National Account Manager for International and Federal Agencies, Defense Logistics Agency (DLA) LTC Bleu Hilburn, USA (Ret.) Director, Logistics and Government Services, Crowley Maritime

COL Thomas began that almost every disaster is handled at a local level, until FEMA is called. Workers in each of FEMA’s 10 regions monitor potential response areas, and send out pre-positioning materials to be ready and waiting in the event a state requests help. Closely monitoring potential events is one key to FEMA’s readiness. A second key component is communication. During the monitoring phase, FEMA is already in touch with carriers, as once a call comes in FEMA must be ready to act. Upon receiving a call, FEMA sends out spot bid requests to major carriers and requests bids back in very short timeframes. In order for a carrier to be contacted, they must use the General Services Administration (GSA) Tenders System and be familiar with FEMA’s new automated system. COL Thomas commented that it is impressive how fast commercial industry can react and that without this responsiveness, FEMA would not be able to do what they do. FEMA’s own workforce runs more like a reserve force, that is trained, but may only receive training periodically. FEMA has approximately 233 trailers; once it runs out of its supply of trailers and other commodities it must turn to commercial industry for help. If it

runs out of supplies, FEMA must turn to its strategic partners such as DLA or volunteer organizations like the Red Cross.

Mr. Kless continued that DLA has a very strong partnership with FEMA. Hurricane Katrina identified many gaps in coordination and responders learned that having materials pre-staged was necessary. FEMA is set up to support disaster relief in the first 48 to 72 hours. FEMA provides the initial response and DLA is the sustainment—its partnership with FEMA includes providing food and fuel, among other necessities. As disaster approaches, DLA gets daily reports from FEMA. DLA officially gets involved when FEMA is called upon by states.

However, by that time DLA has already contacted vendors that it has existing contracts with of the possible need, and much is already in place. DLA receives requirements from FEMA. DLA’s objective (per its contract with FEMA) is to have supplies moving within 48 hours and hopefully on the ground within 72 hours.

LTC Hilburn commented that a commonality between the Haiti Earthquake and Hurricane Sandy disasters was that his company (Crowley Maritime) had ongoing commercial business in those areas.

Haiti is a major port of call for Crowley and two of its largest customers are there.

As soon as news broke that the earthquake had hit, Crowley’s local agent contacted them to say the port was inoperable, which immediately set in motion business continuity crisis management planning actions. Crowley first looked from the standpoint of its own business how to recover the port so it could continue to operate. However, very quickly altruism stepped in as the level of the disaster and humanitarian crisis became evident. Its commercial plans changed and grew into a larger, more national scale.

About 12 hours into the process, USTRANSCOM called upon commercial industry to see what was already in place to provide immediate response to the di-

saster. Crowley had a plan in place that included several commercial solutions, based on years of experience moving into austere environments. In addition, it had an existing contract in place with USTRANSCOM. Crowley tried to fit as much as it could into its existing contract, however this was not possible for all services. To account for the additional services, USTRANSCOM Acquisition came out with a letter contract that provided specific items to work on with not-toexceeds. Since that time, several agencies like DLA and FEMA have moved closer to having contracts in place that would provide more of the needed services. LTC Hilburn emphasized that having some skeletal contract was very important, as it is much easier to build upon an existing contract and relationship. Once that is in place, the other key element is having an acquisition team that is focused on the mission and requirements. In normal sustainment operations, the contracting process can be cumbersome, with lots of checks, balances, and requirements to make sure that US laws and regulations are followed. In a disaster, it is equally as important to follow those laws, but the red tape must also be controlled to ensure a timely response. This will allow commercial industry to put its capabilities and flexibility to use as quickly as possible.

Mr. Robertory explained that the Red Cross is not a government agency, though it is congressionally chartered to carry out disaster relief. It relies on donations, which makes it important for the Red Cross to have visibility. Its non-profit status also means that there is very low tolerance for failure. In addition to donations, the Red Cross relies on the hard work and dedication of its volunteers. Its coverage area includes the entire United States (all 50 states, US territories, and Washington, DC). The population density of this area and a majority of the Red Cross’ responses are within the continental US. The Amer-

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Defense Transportation Journal

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December 2013

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ican Red Cross responds to 70,000 disasters annually, the majority of which are single family house fires. While some may say these are not major disasters, to those who have lost their homes it absolutely is.

The Red Cross strives to respond to every disaster the same way, and with the same care and compassion for whoever is involved, whether it’s one or 1,000 people.

The Red Cross makes people think of blankets and blood, but very few people think of all the logistics that make that possible. The Red Cross moves large amounts of goods and people. Getting equipment to a disaster is actually not that difficult, it is getting equipment from the edge of the disaster into the disaster and distributed that is the larger logistical challenge. Damage in a disaster occurs in concentric rings. In the very center ring, which is most heavily impacted by disaster, you usually just want to evacuate people out because there is not enough infrastructure to sustain anything—no power, water, food or transportation. The area where most of the staging is set up is in the concentric ring with power and support facilities, and that is close enough for victims to go and responders to get into disaster areas more easily. Many companies reach out to the Red Cross during a disaster to provide help. However, during a disaster it is often risky to accept help and change relief efforts that are already in progress. The best time for companies to engage with the Red Cross is during non-disaster times. The Red Cross has a unit called the Supply Chain Real Estate Management Unit, whose sole job is to manage its needs. Like the other panelists mentioned, it is important for the Red Cross to have contracts in place because when it needs transportation or supplies, the need is immediate.

Mr. Abood explained that USAID takes the lead on international disasters for the US government. It is a sort of counterpart to FEMA, responsible for responding to

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a particular country when the US government is asked for assistance. The US ambassador will let a foreign government know what relief the US can provide.

Once the foreign government lets the US know what it needs, the relief supplies and services are sent out immediately. USAID must be ready to respond to earthquakes, hurricanes, refugees, civil strife, internal strife, etc. around the world. To accomplish this, USAID has an Internal Office of Foreign Disaster Assistance, which has representatives in the various DOD commands, and the commands have representatives at USAID. USAID’s connections with its DOD colleagues provide useful assets and capabilities. Within the US government, USAID shares a lot of experience with its FEMA colleagues and utilizes overseas embassies extensively during disaster relief. It also works closely with private, voluntary organizations and commercial partners to move commodities and people around the world.

Contractors must be capable and ready to move quickly. Mr. Abood emphasized this point—companies must be ready before a disaster, and must be capable of performing under circumstances and in locations that are difficult on a good day. If a company does not know definitively that they can perform the job, they should not be doing it. In addition to its extensive partnerships, USAID’s mission is accomplished using warehouses set up worldwide to store nonfood items such as tents, blankets, water jugs, hygiene kits, etc. It also has worldwide food stockpiles, ready to move rapidly.

Interagency Roundtable

Moderator: Don Stanton, Deputy Assistant Secretary of Defense for Transportation Policy, with panelists: • Charles Olden, Branch Chief, Transportation Management, Department of State (DOS)

December 2013

• Anthony Fisher, Transportation Division, Office of Acquisition and Assistance, US Agency for International Development (USAID) • Kidd J. Manville, Deputy for Policy, Strategy Directorate, Defense Security Cooperation Agency (DSCA) • Scott Kidd, Chief of Freight Management Branch, General Services Administration (GSA) • Rick Boyle, Vice President, US Flag Transportation Services, Maersk Line Limited Mr. Boyle stated that sequestration is impacting the US flag industry and will continue to do so. He explained that the Maritime Security Program (MSP) allows companies to operate in a commercial environment, where they can combine commercial and US flag cargo. There are three basic things that make international companies want to participate as US flag carriers. First, the maritime security offset provides a subsidy that allows companies to offset some of the higher costs of hiring US merchant mariners. There are 60 ships in the current program. However, due to sequestration there is a risk that some of these ships will drop out of the program in FY2014. The second item that encourages companies to be US flag carriers is cargo preference, but the drawdown of troops in Iraq and pending troop withdrawal in Afghanistan are leading to less cargo available for the same amount of carriers. This has created and will continue to create challenges ahead. Vessels that are not receiving an MSP payment are leaving the industry—a trend Mr. Boyle felt was likely to continue. The third item that encourages US flag participation is commercial viability. When a company takes into consideration that the MSP payment may be withdrawn or there may be fewer vessels participating, it must also consider that with less cargo available, the only other alternative is filling that US flag vessel with

other international cargo. In some cases you may be able to make up some of this cargo, but often not at a one-to-one ratio. Smaller carriers that rely heavily on US government business are most likely to be impacted. In order for the US flag industry to support the needs of the government moving forward, a comprehensive national maritime strategy that includes development of the international base and consideration of the readiness of the country is needed.

Regarding the commercial international shipping industry, Mr. Boyle said that over the last 20 years there has been a heavy reliance on moving manufacturing to lower-cost countries. China has been the main beneficiary of this, with consumers in the US and Europe being the main beneficiaries of these low-cost goods. The problem with this is that as the global economy wound down in 2008, GDP growth in both the US and Europe became stagnant. There is still quite a bit of cargo moving in these trades, but there is pressure on rates—as pricing comes down, there will be a lot of companies losing money over the next year or two. The difference between profit and loss is how companies manage costs.

The majority of carriers have not invested a lot of money in newer ships or newer tonnage. However, Mr. Boyle’s company, Maersk Line, has invested in new ships, creating a huge advantage by lowering slot costs, which can ultimately be factored into its pricing. Another benefit of this investment has been a tremendous savings on fuel, which encompasses 35-50% of total operating costs. A related industry trend is “slow steam.” Most of the international shipping companies are slowing their ships down to save fuel. While this may require putting another ship on that trade, the cost is still less than if ships had been burning fuel at higher rates. All of these trends have created some new dynamics in the industry that are expected to be prevalent for many years to come.

Mr. Olden stated that DOS supports 278 embassies and consulates worldwide.

Its headquarters are located in Washington, DC and Rosslyn, VA. It has a facility that handles secured cargo in Springfield, VA and dispatch agencies throughout the US at several border ports. Its European Logistics Support Office (ELSO) in Antwerp, Belgium supports missions in Europe, Africa, and the Middle East. These locations have consolidated receiving points to allow DOS to leverage volume, consolidate and deconsolidate its shipments to save the government money. The ELSO also has a storage contract, where DOS stores roughly 4.5 million pounds and 164 vehicles. In the US, DOS has a government storage facility in Hagerstown, MD. The Hagerstown location stores approximately 10 million pounds and 550 official vehicles. When DOS has members relocating in the DC area it will put their storage in an industry facility. Currently, DOS has roughly 22 million pounds being stored in the DC area with its industry partners.

DOS works with GSA on its international shipping, where primarily door-to-door shipping is used. GSA will vet and determine rates of the companies, and then pass along the rates to DOS for carrier selection. In addition to the GSA program, DOS has several different contracts and tenders that it handles in house, such as packing, truck, and air tenders. DOS and other civilian agencies have limited volume compared to DOD, so pooling resources and consolidating shipments is one way these agencies save money. Recently, DOS has been working on a pilot program to move DOD shipments to and from 25 US embassies and consulates. The partnership has proved successful, and as of October 1 is expected to expand.

Mr. Fisher explained that the USAID Transportation Division focuses on disaster relief and food aid cargoes. In this work, interagency coordination is absolutely essential. The Transportation Divi-

sion oversees six international warehouses, handles all policy and regulatory work for USAID’s transportation programs, and ships roughly 1.5-2 million tons of cargo each year. The Division’s six-person team accomplishes this all by working with their interagency partners and staying close with industry. The team is in constant communication with industry, relying on industry to act as their eyes and ears. The TransporThe problem with this is that as the global economy wound down in 2008, GDP growth in both the US and Europe became stagnant. There is still quite a bit of cargo moving in these trades, but there is pressure on rates—as pricing comes down, there will be a lot of companies losing money over the next year or two. The difference between profit and loss is how companies manage costs. The majority of carriers have not invested a lot of money in newer ships or newer tonnage. tation Division services 30-40 countries a year in the developing world—so it needs to utilize industry’s resources to remain informed. USAID also works closely with the Department of Agriculture (USDA).

USAID will work with USDA to coordinate the commodity and the freight procurement to provide the government the lowest cost logistical solution. To do this, USAID purchases commodities out of places that are convenient to vessel owners in order to get lower freight and commodity prices. The two organizations also work to couple shipments together in order to maximize the use of vessels. From a policy standpoint, USAID works closely with OSD, the Maritime Administration (MARAD), and the Office of Management and Budget (OMB) to ensure it is appropriately promulgating the law and fur-

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thering administration priorities. USAID works closely with OMB, the US Government Accountability Office (GAO), and its own Inspector General’s Office to increase program accountability, effectiveness, and efficiencies. USAID also relies heavily on a group of private voluntary organizations (humanitarian organizations) that manage the distribution of food aid and commodities. The United Nations (UN) has a large organization that will also deliver a significant percentage of USAID’s commodities.

Under most USAID shipments, contracting for ocean transportation is conducted by the private voluntary organization or the UN program, with USAID acting in an oversight and coordination role. This set-up allows delivery to locations where US government workers may be unsafe or unwelcome. Moving forward, USAID is taking into account current legislation and proposed legislative changes by working more closely with DOD and MARAD to ensure any such changes to the maritime strategy represents the equities of all agencies involved.

Mr. Manville explained that Foreign Military Sales (FMS) is a component of our national security strategy that affects both the national strategy and defense strategy. The US’ security cooperation programs have four goals: to contribute to partner nation and regional stability; to enhance militaryto-military cooperation; to enhance naval interoperability; and to develop lasting relationships between the US military or government and its partner countries. US government leaders began to emphasize the growing importance of FMS around 2007, as a critical enabler of new security cooperation authorities that were being stood up.

During this push, speed and capability became important to US and partner leaders, and FMS needed to be able to support the speed of the war-fight—with some changes, this was made possible. Over the past five years, the US has executed more than $31 billion per year in FMS sales, compared

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with just $10.5 billion in sales in 2005.

Currently, the US has almost 13,000 FMS cases with 161 countries around the world, at a total value of $393 billion, almost half of which is yet to be delivered. From 20052011, the FMS program delivered more than $117 billion in defense articles and services to US partners in those countries, averaging nearly 60,000 shipment transactions per year.

In coordination with USTRANSCOM and the military Services, DSCA is working to improve the transportation process.

Since USTRANSCOM stood up its Enterprise Readiness Center (ERC), DSCA has worked with them to develop FMS transportation strategies and resolve current operations. This close coordination has allowed the ERC to understand security cooperation requirements and challenges.

While those in the ERC have come a long way in a short period of time, they are continuously seeking to identify, develop, and implement creative solutions for door-todoor transportation services for FMS customers. With 161 countries in often very austere locations, door-to-door delivery is no easy task. By working with USTRANSCOM and leveraging the experience and expertise of the ERC, DSCA hopes to provide FMS customers with three key benefits. First, enhance the FMS distribution process by establishing integrated FMS transportation planning. Second, establish a single point of contact for FMS transportation. Third, leverage USTRANSCOM in the community to maintain readiness and provide opportunities for commercial partners. DSCA is challenged with ensuring that all FMS customers and freight forwarders comply with the US Cargo Preference Act. In addition, as it expands its global presence and establishes new relationships, transport of defense articles and services to these locations is often complicated and costly. Improvements in forecasting and freight visibility are needed to ensure the best possible outcomes.

December 2013

Mr. Kidd stated that GSA was well versed in interagency coordination, as it worked on a daily basis with other government agencies. The primary mission of the program Mr. Kidd manages is to provide procurement agencies will use, as well as to be a consultant on products and services. Currently, there are over 2,000 vendors in this particular program, which can become a bit overwhelming. In response, the program team is working with their DOD partners on how to scale back to a more manageable amount of vendors. On the procurement side, GSA rates are 59% cheaper than what actual comparable commercial customers get and 20% cheaper than what government customers get directly. This means that GSA is able to provide savings, which is essentially its mission. Mr. Kidd’s program in particular consults with agencies and helps them become more efficient in transportation. As far as coordination, it is very similar to commercial industry. Some agencies want to discuss and learn how to become more efficient and save money, while other agencies simply do not. In some cases, agencies are already doing a great job, with their own efficiency experts and great rates. In cases where an agency is performing at a level equivalent or better than it, GSA reaches out to learn from that agency.

Household Goods (HHG) Track HHG Regionalization Program & Timeline

Speaker: Lisa Roberts, Deputy, Deputy Assistant Secretary of Defense for Transportation Policy HHG Roundtable

Moderator: Tim Helenthal, President & COO, National Van Lines, Inc., with panelists: • COL Dale Wronko, USA, Commander, Joint Personal Property Shipping Office (JPPSO), Mid-Atlantic • Gene Thomas, Headquarters, Department of the Army

• John D. Morrissette, President, Interstate Van Lines • Bob McCabe, Vice President, UniGroup, Inc. • Rob Black, Transportation Policy, Office of the Secretary of Defense (OSD) Efficiencies & Industry Best Practices

Moderator: Lt Col Keith Tounget, USAF (Ret.), Director, Government Solutions, The Pasha Group, with panelists: • Sherman Sherin, Chief, Vouchers Branch, Joint Personal Property Shipping Office (JPPSO), Mid-Atlantic • Captain Dara Hopps, USAF, Operations Officer, Joint Personal Property Shipping Office (JPPSO), MidAtlantic • Kevin Myers, Director, Military Services, Wheaton Worldwide Moving • Peggy Wilken, Vice President, Government Traffic & Claims, Stevens Worldwide Van Lines DOD’s initiative to consolidate and regionalize personal property shipping offices began as a Secretary of Defense efficiency in 2011. The initiative entails

combining the back office personal property shipping office functions—booking shipments with the transportation service providers (TSPs), quality control, inspector functions, excess cost adjudication, waive entitlement, and other functions that are not associated with the front (personal property processing or counseling) office. Standardization remains a major focus throughout the consolidation process. There is some level of standardization today with the use of the Defense Transportation Regulation (DTR), but the initiative is taking this to more in-depth levels for both counseling and shipping offices. These offices support over 600,000 inbound and outbound personal property moves every year. The personal property shipping offices can be managed by and can support customers in any of the Services. There has been a lot of progress by each Service to consolidate its own offices, particularly within the Air Force. However, this has led to the perception that certain military departments provide better service than others. The consolidation initiative seeks to eliminate this concept by providing

consistent levels of customer service and streamlined processes. Fewer personal property offices will mean reduced infrastructure and overhead costs. Consolidation also means that it will be easier for industry to do business with DOD, because there will be fewer points of contact to work with, and more standardized operating procedures for things like document processing and quality control.

Regionalization involves consolidation among the Services in order to achieve truly joint structure and processes. In 2011, OSD stood up a joint service team with USTRANSCOM and the Services to manage consolidations. Since then, 41 offices have been consolidated. Budget restraints and sequestration have slowed the consolidation down. In response to these obstacles, the consolidation team reevaluated its plans. Currently, consolidation efforts continue, but the timeline on regionalization has been relaxed in order to account for environment changes.

Moving forward, an economic analysis is being produced that will validate current operations, as well as provide recommendations, a plan of action, milestones,

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timelines, and estimated costs and savings. Each Service will continue to consolidate its own sites, work through the various levels of agreements which address the involved people, systems, and processes. OSD is working on a funding issue paper that will help enable the Services with the coordination between these three areas.

Budget reductions, sequestration, and downsizing of the Services will decrease HHG business long-term. However, in the short-term, the realignment of forces, shift to the Pacific, and drawdowns will actually translate to more moves.

Though the future of the industry is uncertain, forecasting is helpful in determining future business planning. As they forecast, the government offices must also include furloughs in their planning.

Furloughs and consolidations (gaining more operational responsibility), make it essential for JPPSO employees to take advantage of technology and automation in order to meet these challenges.

The more efficient systems are, the more efficient the operations will be to overcome shortages. The Defense Personal Property Program (DP3), with the goals of reducing costs and improving quality, has been a huge success for the military.

One potential area of improvement is finding a way to better manage paperwork. Doing so would better ensure the accuracy of data, ultimately providing greater security for DOD shipments and increasing auditability. Under DP3, the Defense Personal Property System (DPS) will be undergoing two upgrades: there will now be the opportunity to file two separate rates (peak and non-peak), and a correction will be made to eliminate rate errors when a weight is not entered by having a default minimum rate.

Some TSPs have concerns about these changes being tested before implementation and the difficulty of submitting two rates as far as 18 months in advance.

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Filing rates so early makes it difficult to ensure rates are appropriate and competitive. Eliminating some of the preapproval requirements would also help TSPs increase efficiency.

The summer is always the peak moving season, when most members move and when providers find themselves stretched thin. Customer service scores are often lower during the height of the peak in June. Stretching moves out more over the year would help to make the overall experience better for customers and would help make capacity management easier on TSPs. Better communication between stakeholders would also help improve the overall system. TSPs continually try new methods, systems, technology, etc. The government could benefit from hearing the feedback and ideas this experience gives TSPs. Members from the NDTA HHG Subcommittee put together a slide presentation on how TSPs do business.

This was presented to customers in key locations, which helped increase dialogue and communication. In addition, communication with customers (managing expectations) is an important component of improving customer satisfaction.

Passenger Travel Track DTMO Initiatives

Speaker: LTC Harvey Johnson, USA (Ret.), Acting Director, Defense Travel Management Office (DTMO) DTMO Travel Programs Roundtable

Moderator: Thom Puccio, Director, Global Segment Sales, Choice Hotels, with panelists: • Tracey Ramsey, Travel Tranformation Integrator, DTMO • Andrea Carlock, Chief, Commercial Travel Division, DTMO • Judy Silcox, CTC, CCTE, Key Account Director – Government, IHG • Mike Washkevich, Director, Government Sales, Avis Budget Group

December 2013

• Jerry Bristow, Director, GSA • Joan Meagher, VP, Acct. Mgmt, Omega World Travel DTMO considers this period of sequestration and budget cuts an opportunity to reform travel. It has made consolidation and centralization of travel management its mission. This mission was reinforced when DTMO was directed by OMB to make 30% cuts in travel costs. Despite these steep cuts, government employees should not think reducing travel is the only option. Rather, everyone should seek more efficient ways to travel, as travel is an important aspect of government business. DTMO is using a team approach to saving money, seeking to partner with agencies such as GSA. DTMO also seeks collaboration with its vendors, but this is challenging due to its size and the size of the government travel base. DTMO stood up its compliance program in December 2012, with the goal to reduce “bad” (abusive) travelers.

This is an example of a “smart” way to reduce travel costs. Another “smart” way to reduce travel costs is that DTMO is encouraging more use of government travel charge cards. This will increase rebates provided directly to the government. For example, on a travel spend of $50 billion, if the government receives a 5% rebate this would generate $2.5 billion. Enhanced use of technology, such as smart phones, used to connect with travel vendors is an example of evidence based initiatives which lead to smarter travel.

DTMO expects savings from this to grow to $500 million annually. Smart travel can also mean safe travel and DTMO can demonstrate with metrics how it has improved safety of bus travel with zero accidents for government personnel.

DTMO will seek to take better advantage of managed programs by proactively using more favorable restricted fares with which travelers have not been

sufficiently trained or aware of. DTMO operates knowledge management training online for some 83,000 government travelers. In addition, DTMO is working on the consolidation of many separate travel policies, which will be completed by spring 2014. This will be a significant improvement over the 2,000 pages of rules used currently that often make travel unnecessarily complex. The 2012 National Authorization Act helped simplify rules based on Title 37, Chapter 8, with broader, more flexible authority to avoid having only legislative options to change rules. This section of the Act also provided authorization for a DTMO initiative to incorporate best practices under the Managed Commercial Lodging Strategy Program. The initiative will incorporate a strategic sourcing approach.

A modified DTS version will include online booking. A few more ambitious tasks imposed by Congress remain for DTMO to complete, such as 100% electronic vouchering by 2016. Issues also remain with overpayment of taxes to states.

The lodging industry has been doing fairly well with commercial clients, creating greater competition with DOD travelers for room availability. This indicates a need for a review of government rates, but industry has concerns about GSA’s methodology of mixing higher- and lower-end hotels. There is also more pressure to reduce commissions offered to travel agents, which will pressure GSA to make greater use of transaction-based tools. Breaking down cost components for hotels using GSA per diem rates can leave very little profit for the hotels. GSA finds it challenging to accommodate budget cuts, while satisfying its vendors. Its Federalist Program has obtained improved rates below predetermined per diem costs, but these rates are not being properly applied and thus far, cost savings have been minimal. There will be new per diem rates in FY2014. GSA is also challenged by much

greater tracking of travel spend now being required—total conference travel spending as low as $20,000 now requires senior approval. On the air side, there has been good progress in improving the city pairs program. Like hotels, car rental companies are seeing an increase in corporate spending, while government rentals are down. Government rates are generally much lower (30% less) than corporate rates, but a new pricing evaluation is being driven by GSA. The value of what customers have been used to is changing, as discount car rental firms are becoming a greater market presence. Travel agents are being required to offer more services, including tracking corporate personnel with enhanced technology. This need is due to greater risk of travel and more liability for organizations when their personnel are traveling. There is increased use of live travelers’ blogs, as companies use technology to communicate in real time with their personnel. Additionally, social media is driving more compliance with policies and generating cost savings.

Small Business Track A Small Business Roadmap for Business Development in the Federal Government

Speaker: MG Fred Elam, USA (Ret.), Business Mentor, SCORE DOD Programs for Small Businesses, How to Get on the GSA Schedule, & DLA Small Business Opportunities

Moderator: LTG Kenneth R. Wykle, USA (Ret.), President, NDTA, with panelists: • Scott Kidd, Chief of Freight Mgmt.

Branch, GSA • Linda Oliver, Deputy Director, Policy & Procurement, Office of Small Business Programs, DOD • Amy Sajda, Director of Small Business Programs, DLA • Jerry Thomas, Independent Consultant

Small Business Roundtable

Moderator: LTG Kenneth R. Wykle, USA (Ret.), President, NDTA, with panelists: • Tom Lindenmeyer, VP & Market Director, SAIC/Leidos • COL Gene Losa, USA (Ret.) • Dr. Robert Hooper, Jr., VP, Atlantic Logistics, Inc. • BG Barbara Doornink, USA (Ret.), Senior VP, Operations Manager, SAIC/Leidos • Ruth Christopherson, President, StratLynx, Inc. Business development in the federal sector is best done in a phased approach.

This begins by a firm launching itself in the private sector, which includes establishing a track record in industry that can be used as a performance history for government contracts. The company should hire a talented, competent staff. Building a solid foundation is critical for sustainable growth. A firm should then register itself for federal government contracting—Federal Employer Identification Number (EIN), Data Universal Numbering System (DUNS), GSA Schedule, North American Industry Classification Codes (NAICS), and System for Award Management (SAM). Businesses should be compliant and familiar with federal government regulations and audit standards. Next, a firm should understand its market by fully researching and understanding the customer prior to making briefings. Many agencies will not have one-on-one meetings with companies, but will set aside days for multiple vendors to make presentations. Most commands will have a small business professional—and businesses should work with this person. Briefings should not be generic, but should be designed to address the specific needs of the potential client. Understand that proposals are evaluated in the three main areas of management, technical, and cost.

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A firm should communicate regularly with potential clients, know its niche, and be able to articulate what it can do.

Creating a business plan is the next step.

Keep in mind the company’s objectives, mission, and capabilities. Focus on core competencies and do not exaggerate the company’s capabilities. To execute this plan, a firm should determine agencies that use their services or goods and look for contract opportunity announceUnderstand that proposals are evaluated in the three main areas of management, technical, and cost. A firm should communicate regularly with potential clients, know its niche, and be able to articulate what it can do. Creating a business plan is the next step. Keep in mind the company’s objectives, mission, and capabilities. Focus on core competencies and do not exaggerate the company’s capabilities.

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interested in working with GSA should contact its Office of Small Business Utilization, which offers on-site and webbased courses to help small businesses succeed with government sales.

Some larger companies also have Mentor/Protegé programs that may provide opportunity to small businesses. In actuality, this relationship is that of a prime contractor and the sub-prime. While this sort of relationship can be long and challenging for both parties, small businesses can benefit from the training, as well as access to systems, expertise, guidance, technical recruiting, and mentoring in finance and human resource compliance that a larger company can provide. The prime contractor is obligated by law to seek and obtain opportunities for the subcontractor within four years. DTJ

NDTA Defense Travel and Government Transportation Meeting Survey Results

ments. Pursue any advantages the company may have, such as being woman owned. Throughout the process, company leadership should be involved in all meetings and presentations, so they can fully understand the requirements and unique environment for doing business.

This includes the post-award debriefing—where the contracting officer can explain why a contract was or was not awarded.

Many resources exist to support small businesses interested in working with the government. Small businesses should attend small business forums and learn from other successful small businesses.

In addition, the Small Business Office plays a critical role in supporting the small business community. Several online resources, such as FedBizOpps.gov, can provide a critical link to information and opportunities. Another online avenue to explore is the Procurement Technical Assistance Program (PTAP).

Congress allocates money to this program to set up centers to assist small businesses secure contracts. Agencies, such as DLA, use these websites to post opportunities. DLA’s Internet Bid Board 20 |

System (DIBBS) provides more information. Within the transportation and logistics arena, DLA provides a wealth of contract opportunities due to the sheer volume of products and services it requires. DLA supports 26 defense depots worldwide, manages five million line items through nine different supply chains, and houses 63 individual small business specialists. DLA considers the small business component of its business critical. It aggressively supports set-aside business and exceeds its percentage of commitment to small businesses. GSA is another agency that can serve as a resource for both information and opportunities. The GSA establishes long-term government-wide contracts with its vendors, with 36% of its business represented by small business. Small businesses

1. What was your primary reason for attending the meeting?

Speakers 21.6% Professional Sessions 39.2% Networking 35.3% Location/Venue 3.9% 2. Overall, how would you rate the meeting?

Excellent 47.1% Very good 39.2% Fairly good 13.7% Mildly good 0.0% Not good at all 0.0% 3. Do you prefer speakers or roundtables?

Speakers 2.0% Roundtables 19.6% A Mix of Both 78.4% 4. Which TWO roundtables did you find most valuable?

Natural Disaster 43.1% Interagency Requirements 29.4% Government-Industry Partnership (HHGs) 39.2% DTMO Travel Programs 35.3% DOD Programs for Small Businesses 15.7% Efficiencies & Industry Best Practices (HHGs) 21.6% Small Business-Issues & Solutions 15.7% 5. Should NDTA schedule and organize a similar meeting next year?

Yes 100.0% No 0.0% To view all answers, including those to the open-ended questions visit the meeting website at http://www.ndtahq.com/DTGTMeeting.htm.

December 2013

NDTA-USTRANSCOM Fall Meeting October 15-17, 2013 | St. Louis, Missouri The purpose of the Fall Meeting was to stimulate wider interest and inquiry into technical and professional issues involving Department of Defense (DOD) transportation requirements. The meeting provided information, training, and strategic overview for personnel of the DOD, and also provided information to industry useful for anticipating and meeting future DOD needs. More information regarding the meeting, including slides and videos, can be found on ndtahq.com.

Military Comments

Gen William Fraser, III, USAF, Commander, USTRANSCOM Gen Fraser began by saying that the military could not get their jobs done without the support of industry, and most people are unaware of this relationship.

The support provided, is ultimately support of the Nation and what gives the US its impressive capabilities. Times are tough—the government and military are under pressure to not hold meetings, conferences, or get together. However, getting together, having dialogue, and being engaged are critical. Gen Fraser continued that the Fall Meeting would serve an important role in enabling dialog and as an arena for putting common issues on the table, with the right levels of leadership involved, for discussion and resolution. The necessity of the meeting to USTRANSCOM’s work is what kept it on the calendar, despite the government shutdown.

Unfortunately, other government officials were unable to travel for the Fall Meeting.

However, they felt it so important to contribute that they planned to participate via video or telephone. Gen Fraser had been talking a lot about USTRANSCOM, its

partners, and what they do for these officials and others, such as the Combatant Commands (COCOMs). In the past, these COCOMs would not have seen the value in working with USTRANSCOM. However, the COCOMs have grown to understand what USTRANSCOM brings to the fight, which has led to collaboration between the commands. This is a key part of the engagement strategy that the geographic COCOMs now have. In a similar manner, USTRANSCOM has successfully reached out to the State Department, as well as to ambassadors and leaders in other countries. These connections are

building relationships, helping to share information and best practices. Building relationships also serves the purpose of building USTRANSCOM’s ability to respond to future calls that may occur anywhere around the world. Finally, these efforts have resulted in USTRANSCOM being included in base realignment planning in Europe.

This engagement provides USTRANSCOM an avenue for other opportunities.

Taking advantage of new opportunities is especially important as business declines.

Over one year earlier at the NDTA Forum in Alaska, USTRANSCOM had revealed

NDTA-USTRANSCOM Fall Meeting summary material is intended to provide an overview of the 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.

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that it was almost ready to implement a new strategy. Readiness capability was one major focus of the strategy. Moving toward the future, USTRANSCOM must be ready to respond to any unknowns that may arise. USTRANSCOM’s readiness and ability to do its job as efficiently and effectively as it had been is directly tied to access, as well as organic and commercial capabilities. Much work remains in this area. As business declines, and other changes occur to policy and circumstances, USTRANSCOM and its partners must adapt and maintain readiness. Gen Fraser felt getting more business into the DTS was key to doing this. Some business has been driven into the DTS from the Defense Logistics Agency (DLA) and from more Foreign Military Sales (FMS).

Since the Alaska Forum, USTRANSCOM had also stood up its Enterprise Readiness Center (ERC), which is focused on maintaining readiness in the future and reaching out to bring more opportunities into the DTS. This entails building relationships by reaching out to those that USTRANSCOM has not engaged before, explaining what capabilities are available, and then being flexible and agile enough in processes, procedures, and acquisition, to be able to provide support. USTRANSCOM considers programs such as the Voluntary Intermodal Sealift Agreement (VISA), Maritime Security Program (MSP), and Civil Reserve Air Fleet (CRAF) critical.

Getting more business into the DTS can help exercise these programs and utilize the US flag carriers. Moving forward, it will be a fight to keep these programs due to mounting pressure—an issue that would be discussed in further detail during the Fall Meeting. Gen Fraser encouraged everyone to continue seeking best practices and to reach out to the ERC with any suggestions or opportunities. One suggestion that was taken from a past NDTA meeting was the establishment of a Surface Executive Working Group (EWG). The group has had one meeting so far and the meeting was very productive. What is gained from this group will also enhance readiness capabilities.

One recommendation that has been implemented was to bring an industry person on as a part of the ERC staff. This position will be rotated every 120 days.

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command spends a lot of money on IT. Gen Fraser challenged his staff to find $100 million in savings. USTRANSCOM relies on IT to stay connected and do its job.

Events or attacks on the USTRANSCOM network have increased fourfold since Gen Fraser took command, making achieving IT excellence a necessity. In addition, the command is seeking to strengthen its footprint. The staff of USTRANSCOM met Gen Fraser’s savings challenge by collapsing the number of systems, consolidating, and bringing in some best business practices in the way USTRANSCOM works. While much has been achieved, the command will continue to work on taking this further. As a part of this effort, USTRANSCOM contracts now require companies to describe their information assurance plans. USTRANSCOM is also focused on aligning resources and processes by bringing some decisions into a board and counsel process in order to focus resources. The command is exercising a critical eye to ensure resources are used wisely. The command is also investing in human capital—ensuring it has the right people, with the right skills.

Building trust and breaking down barriers within the organization to increase collaboration and harness innovation have been a part of this effort. The realignment of resources has meant that some people have moved positions, and these changes have also caused a need for additional training. Through all of these initiatives, USTRANSCOM is transforming itself inside and out. The command has grown for 26 years and is now on the downslope. Making the changes described by Gen Fraser are all posturing the command for the future.

While necessary, this is by no means easy.

However, by continuing to work together in order to find the right balance in preparation for the future, these challenges can be met.

Industry Comments

Raymond Ebeling, Chairman, American Shipping & Logistics Group, and Chairman, NDTA Mr. Ebeling commented that America’s political leadership appears to have lost its way. Continuing resolutions (CR) have replaced budgets and sequestration is determining direction, instead of long-term strategy or policy. The toxic combination

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of CRs and sequestration reflects the fact that the US’ political leadership has not had the political wisdom or courage to develop and manage a balanced budget.

They cannot agree on what costs could be strategically reduced, so they reduce what they can, which turns out to be primarily the Defense budget. The sheer magnitude of challenge and change facing the defense transportation and logistics community are striking. This is uncharted territory and the scope of change unprecedented. It requires a renewed focus on the community’s core principles of trust, collaboration, and teamwork. These are the principles that everyone must embrace in order to work together productively, constructively, and successfully. Readiness is the most fundamental objective, and it has been clear at previous NDTA meetings that to achieve readiness USTRANSCOM and others must have access to healthy commercial fleets—air, land, and sea. The best examples of this are Operation Iraqi Freedom (OIF) and Operation Enduring Freedom (OEF), in which US flag commercial carriers have carried over 90% of all cargo in and out. The heavy lifting has essentially all been done by commercial industry, despite the instability and lack of security of the Pakistan Ground Line of Communication (PAK GLOC) and other transportation and logistics networks.

Having said that, Mr. Ebeling continued that the critical question is what the future of the transportation and logistics companies that have done this heavy lifting, and constitute such a big part of readiness, will be. Military volumes moved internationally today are half what they were three or four years ago—and three or four years from now, they may only be half of that half. When volume craters like that, rates crash with it, so what little volume there is to carry is carried at ever lower rates. In such a market environment one must consider how US flag carriers can remain viable and consider the importance of their viability. Could the US rely on foreign carriers and crews to do what the US carriers have done in OIF and OEF? The US must consider if it can rely on the organic and reserve fleets, and if this is cost effective. In addition, it will have to decide whether or not this is even possible, given the requirement for global and intermodal networks fundamental to this service. All studies have consistently shown the organic ap-

proach to be ten times more costly than the current system, reliant on commercial industry investment and industry’s global intermodal service networks.

The long term risk is that over time, there will be insufficient investment in the assets, services, and global networks required for readiness, because there is little market opportunity and questionable support for stabilizing programs like MSP and CRAF. Mr. Ebeling urged attendees to discuss and expand on the challenge of maintaining an adequate transportation and logistics industry base during the Fall Meeting, as a means of helping to avoid a major decline in capability and readiness. He continued that while partnership is often discussed and touted as a fundamental principle of the government-industry bond, there is reason to question the stability of this relationship. Industry often measures success in terms of profit and government often measures it in terms of obtaining lower rates—opposite positions in a transaction. All involved must explore what the government’s willingness to support the industrial base is, while also considering at what point the government business will not be worthwhile for industry to support. The two groups must determine if a full, enduring partnership is possible and, if so, how to make it win-win. A balance between preserving and developing a strategic industrial base, and the emphasis on short term budget considerations must be reached. The challenges are greater than ever, but focus on continuing to think and act strategically and for the long term cannot be lost. Hope is found in government and industry’s fundamental, common objective of providing the best possible service to the warfighters—this objective can provide the common purpose that drives everyone to find joint solutions and deliver together.

Reset and Rebalance Roundtable

Moderator: LTG Kathleen Gainey, USA, Deputy Commander, USTRANSCOM, with panelists: • LtGen Robert Ruark, USMC, Director of Logistics, J4, The Joint Staff (video remarks) • VADM Joseph Rixey, USN, Director, Defense Security Cooperation Agency (DSCA)

• RADM William Brown, USN, Director of Strategy, Policy, and Logistics, USTRANSCOM • Maj Gen Samuel Cox, USAF, Director, Operations and Plans, USTRANSCOM • RADM David Baucom, USN, Incoming Director of Strategy, Policy, and Logistics, USTRANSCOM • Glen Joerger, President, National Airlines • Eric Mensing, Senior Vice President, Government Trade/Affairs, APL and President/CEO, APL Maritime The current Afghanistan retrograde issues being faced are extremely complex.

Retrograded vehicles from Iraq were simply driven across the border into Kuwait to be processed and prepared for delivery home. On the other hand, vehicles from Afghanistan had to be routed through Pakistan, routed north to reach rail facilities in central Asia, airlifted to several multimodal sites, or airlifted directly back to the US. In addition, challenges exist with ongoing operations, the geopolitical environment, limited internal transportation infrastructure, available lines of communications, and limited capacity out of Afghanistan and its surrounding region.

Gaining and maintaining access will remain critical elements for future operations. Moving forward, concerns also exist about the military’s ability to maintain capacity due to simple supply and demand economics. In response to this, it will be important to leverage the best solutions, while preserving the relationships and distribution networks that have been forged over the last 12 years. Volumes have not been as large as expected for a variety of reasons. Industry remains ready, but to ensure capacity is sufficient, new business opportunities within the DTS must be sought. As the US retrogrades, it is resetting the force after over a decade of war.

Reset entails rebuilding or repairing worn but serviceable equipment, often through depot maintenance, in order for it to be ready for peacetime or contingency use.

The Budget Control Act is compounding issues with reset, such as backlogs caused by unfunded or deferred maintenance.

In order to continue supporting retrograde and the reset of equipment from Afghanistan despite current challenges, organic and commercial options must be

maintained, and the critical governmentindustry partnership must be maintained through communication.

The DOD planning guidance for 20142018 requires that the US Armed Forces be capable of conducting a broad range of operations in multiple theaters simultaneously. As the US looks to building a joint force in 2020 and beyond, the focus will be on joint task forces that can respond quickly and with sufficient capability.

The capstone concept for joint operations requires the future 2020 force to rapidly aggregate, disaggregate, and reform in different arrangements as necessary. Currently, the US’ means cannot support its ends and resources must be realigned to support these requirements. Clear logistic challenges remain ahead, including the challenge of protecting US interests, facilities, and personnel abroad. A part of this is figuring out the best way to get retrograde home, even as attacks on those transporting it continue. In addition, the US will be challenged as focus shifts from the Middle East to Africa and the Pacific.

The size of Africa, and its immature infrastructure with large landlocked areas that are often difficult to access, mean that cargo hubs will need to be built in order to support the forces spanning the area. The difficulty of rebalancing to the Pacific because of its distance from the US is compounded by challenges of gaining country permissions, as well as anti-access and area-denial technologies. Ultimately, the US will need to build its key relation-

ships, access, reach, pre-positioned stocks, and equipment to quickly transport combat forces over strategic distances.

Creating and maintaining an effective global logistics network that provides agile and timely response with reduced funding will be critical. This will include having a www.ndtahq.com | 23

network with effective supply chain management and secure information technology. Identifying requirements, developing a strategic direction, applying appropriate resources, aligning capabilities, assessing readiness, and advocating for progress to close gaps in the joint logistics enterprise are imperative. USTRANSCOM has been tasked by the Secretary of Defense to develop a global distribution plan. This plan will also include many aspects of logistics, and will help to synchronize the requirements and efforts of stakeholders such as COCOMs, the Services, other government agencies, and industry. This plan will also provide for analysis each year of gaps that may exist in the DTS. Such a task requires the cooperation and teamwork of all stakeholders.

Sealift/Intermodal Roundtable

Moderator: William Kenwell, Senior Vice President & Chief Commercial Officer, Maersk Line, Limited, with panelists: • Paul N. Jaenichen, Sr, Acting Maritime Administrator (MARAD) (via telephone) • RADM William Brown, USN, Director of Strategy, Policy, and Logistics, USTRANSCOM • Gail Jorgenson, Director, Acquisition, USTRANSCOM • Maj Gen Samuel Cox, USAF, Director, Operations and Plans, USTRANSCOM • Eric Ebeling, President and COO, American Roll-on Roll-off Carrier • Augustin Tellez, Executive Vice President, Seafarers International Union of North America • John Tirpak, President, Foss International, Inc. MARAD is currently working with members of Congress to extend the MSP. There are 60 ships in MSP and MARAD is seeking funding for all 60. However, if the government continues to operate on CRs, there is a strong risk that some of these ships will be lost from the program. Another important element related to the MSP is cargo preference. Cargo preference is a statute that supports the overall privately owned US flag fleet and mariners as the key incentive cargo for US flag operators to remain under US registry. Cargo preference requires 100% 24 |

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of all DOD cargoes move on US ships. It provides a vital base to offset cost advantages of foreign flag operators and helps to secure the supply-chain. Over the past several years approximately 95% of what DOD moves has gone by commercial vessel. These cargo movements used to be mainly a port-to-port endeavor, however there is more emphasis now on the importance of the multimodal network. Plugging into this network is key for carriers.

MARAD is also focused on strategic goals, including cargo, readiness, and infrastructure, though its most important long term goal is ensuring a solid national defense system. This is accomplished by making certain the US has a strong US flag fleet and mariners who operate it, when and where needed. MARAD maintains strong partnerships with the military, USTRANSCOM, Military Sealift Command (MSC), and the Office of the Secretary of Defense Office of Transportation Policy (OSD TP) to improve capacity and readiness of sealift resources, while helping to advance the maritime industry.

A part of MARAD’s plans is implementation of a comprehensive maritime strategy that will ensure the US has the ships, industrial base, and mariners necessary to meet national security and economic needs. One working target goal is to make sure US flag vessels are carrying 10% of US overseas exports by 2030 (this is currently at 2%). To achieve this goal, there must be concentration on policies and incentives that create a business environment that encourages the best in the US flag and international trade. This includes things such as tax incentives, investment incentives, and legislative and regulatory changes. Future uncertainties will require more cargo to be brought into the DTS and enforcement of cargo preference laws

December 2013

to preserve the industrial base. The Jones Act provides another part of the maritime strategy and infrastructure.

By and large there is almost nowhere in the world that the sealift carriers do not operate or that they do not have operations adjacent to, which stands to provide significant access and infrastructure capabilities to the DOD for future contingencies.

The sealift community—including programs like VISA, MSP, and the ready reserve force—has been greatly impacted by the reduction in workload. All programs are under stress due to budget restrictions and the government shutdown. Seeking a win-win business scenario moving forward is challenging due to the multitude of services offered by industry, the differences among industry that make a situation a win, and the difference in customer needs. Despite the challenges, achieving a win-win is not impossible if everyone works together as a team to find solutions.

The sealift community is unusual in that its partnership includes labor. Research has shown that the total number of mariners available is 11,315, which leaves a shortage in the number of seafarers needed to fill the commercial and government program requirements. This issue is only expected to compound in the future.

Airlift Roundtable

Moderator: Randy Martinez, President & CEO, AAR Airlift Group, with panelists: • Gen Paul Selva, USAF, Commander, Air Mobility Command • Gail Jorgenson, Director, Acquisition, USTRANSCOM • RADM William Brown, USN, Director of Strategy, Policy, and Logistics, USTRANSCOM

• Jeff Crippen, President and CEO, Omni Air International • John Dietrich, Executive Vice President and Chief Operating Officer, Atlas Air Worldwide Holdings, Inc. Since the 1960s, the NDTA Military Aviation Advisory Committee (MAAC), made up of CRAF and other carriers, has advised the Air Mobility Command (AMC) and its predecessors on aviationrelated issues. This relationship ensures the US’ ability to help meet mobility requirements via airlift in peace time and war.

Over the years, this group has seen many changes including changes to aircraft types, capabilities, emphasis on fuel efficiency, and requirements. The commercial sector has also been through challenges such as deregulation, bankruptcies, pricing instability, and other issues that have made it difficult to maintain a consistent flow of profitable operations. Yet through all of this, the relationship between the government and air carriers has been one of partnership, and with the common goal of supporting US requirements.

Recent changes due to the drawdown, restricted budgets, sequestration, and other current issues have driven AMC to initiate a CRAF study to ensure readiness requirements can be met in the future with the appropriate CRAF structure.

Upon embarking on this study, AMC found that the economics of the air industry were changing more quickly than the CRAF program was able to keep up with—a signal that the carriers’ requirements were changing. Balancing responses from industry with its understanding of emerging requirements, AMC began to focus on readiness and national security. Readiness in this case means balancing the demand for lift with the necessity to have an organic fleet that is capable of flying into combat and crisis, and a commercial fleet that is capable of surging to meet logistics requirements of whatever that crisis may be. The idea behind this is balancing readiness with surge capability, while being able to address this in a way that deals with the legal and regulatory constraints, and provides opportunities for new entrants into the marketplace.

The study will guide the way forward with the CRAF program. Maintaining a viable CRAF program is a shared responsibility

between government and industry. The government wants to get as much business as it can through the DTS. Industry has a responsibility to adapt and not be overly dependent on military business.

However, it was also suggested that moving forward there must be some incentive for carriers to continue being a part of the CRAF program, when other, more stable business opportunities arise.

AMC has its own large organic fleet.

The tanker fleet consists of 479 airplanes with two model design series—the KC10 and KC-135. Within that fleet, there is sufficient capacity to deal with the air refueling needs of the nation. In addition, there is also significant cargo capacity. The KC-135s were made in the 1960s. If everything goes as planned, these airplanes will be replaced by the KC-46 by the time they reach 87 years of age. With the declining budget, provisions are needed to provide for investment in the recapitalization of the fleet. Recommendations have been made that AMC should divest of the entire KC-10 fleet, which would provide investment capital and would remove

opportunity to upgrade co-pilots to aircraft commanders. This ultimately means getting the right mix of flying hours is necessary to ensure readiness. Also, work will begin to modernize these aircrafts.

These changes, among others, have been incorporated into the upcoming budget in an effort to modulate within a strategic decision to retain capability, while making modest changes to capacity within the fleet to keep it affordable and manageable within the enterprise.

Every year carriers offer their aircraft to the CRAF program. AMC looks at the capabilities of these airplanes and accepts a certain number of aircraft to become part of the CRAF fleet. The number of aircraft accepted is based on requirements set forth in the Mobility Capability Requirements Study 2016. The study, done in 2010, outlines requirements for two major theater wars. The CRAF is set up in three stages—support of a small contingency, large contingency, and global war. From a USTRANSCOM requirements standpoint, the current industry commitment levels are good. However, DOD’s priorities

Balancing responses from industry with its understanding of emerging requirements, AMC began to focus on readiness and national security. Readiness in this case means balancing the demand for lift with the necessity to have an organic fleet that is capable of flying into combat and crisis, and a commercial fleet that is capable of surging to meet logistics requirements of whatever that crisis may be. The idea behind this is balancing readiness with surge capability, while being able to address this in a way that deals with the legal and regulatory constraints, and provides opportunities for new entrants into the marketplace. some competition from the market for training requirements. This decision is on the table for 2015. It would mean a reduction in capacity, without a reduction in capabilities over the long term. On the airlift fleet side, the last C-17 has been delivered and 222 are currently in inventory. This is a major increase in the capacity to move cargo into a cargo zone. Ensuring so many crews are trained and ready to fly these aircraft is another major change. To help manage this capacity, some planes have been moved into unit equipped Guard and Reserve units, and 16 of the planes have been moved into backup inventory.

Crew ratios for these aircrafts will begin to be reduced in order to lessen the training requirements. AMC’s reduced budget means less flying hours, and ultimately less

may change as a result of the Quadrennial Defense Review (QDR), which may subsequently change USTRANSCOM’s requirements. Currently, there are 550 commercial aircraft in the CRAF fleet.

These aircraft are judged against a standard known as a wide-bodied equivalent, which means that the CRAF fleet brings to the table the equivalent of 400 wide-bodied aircraft. The Form 312 is a capabilities summary of the CRAF, outlining by carrier, aircraft height and assigned stage.

Industry has made capital investments to bring forth aircraft that provides efficiencies not previously available. In making these investments, industry looks at an aircraft’s ability to be used for both government and commercial purposes. Industry is concerned with how budget cuts and www.ndtahq.com | 25

nation’s readiness. Secretary Foxx and Gen Fraser agree that even a relatively small reduction in funding to this program will have a big impact on the nation’s ability to deploy, support, and sustain military Services and forces overseas. Safety and security go hand-in-hand. This is in line with DOT’s top focus—safety—because a safe transportation system also protects the nation. As a part of DOT’s strategic goals, it continues to imagine what the transportation system can be, while fulfilling the department’s longstanding missions, including preparedness and defense readiness. sequestration will affect its business. Another major concern facing industry is an impending pilot shortage. New rules and requirements for training and things like crew duty rest will create an even greater demand for pilots that will affect industry.

Moving forward, collaboration on these and other common issues through the MAAC and Air Executive Working Group (EWG) will be essential for all parties.

Department of Transportation Comments via Video

The Honorable Anthony Foxx, Secretary of Transportation Good transportation is essential to our national defense. The work NDTA does promoting certainty and preparedness in the transportation system to deliver security and economic needs serves as a critical link between government and industry to improve our transportation system. This system is used every day by USTRANSCOM and DLA to move military equipment, vehicles, and supplies from forts to ports and air bases. In fact, the DOD spent over $23 billion on commercial transportation in 2011 alone. Since the Secretary took office, he has met with Gen Fraser to discuss the readiness of our transportation capabilities to serve the economy and the nation’s security. President Obama has made transportation infrastructure and improv26 |

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ing logistics a key part of his platform, because ultimately it will drive job creation and promote greater security for all Americans. Whether by air, sea, or surface the US is investing in critical projects that move goods reliably across a vast system.

That is good news for businesses trying to move their goods more efficiently, as well as for US national security. By 2050 America will be home to more than 100 million additional people and its network will need to haul four billion more tons of freight per year than it currently does.

That means the US’ freight system, which is already the strongest in the world, will need to become stronger.

Looking toward the future, a freight policy council has been established to help oversee implementation of Moving Ahead for Progress in the 21st Century Act (MAP-21). This transportation bill provides freight provisions that include the development of the national freight strategic plan. Given the impact of this plan and the impact it will have on DOD, the Secretary asked stakeholders from DOD to meet with him in November as DOT began development of this strategic plan. Because of shared interests, like freight, the Secretary remains committed to maintaining a strong relationship between DOT and USTRANSCOM. The Secretary and Gen Fraser are actively engaged with Congress regarding how the current economic environment will impact MSP and our

December 2013

Surface Transportation Roundtable

Moderator: John Collins, Executive Vice President, Landstar Transportation Logistics, with panelists: • MG Thomas Richardson, USA, Commander, Military Surface Deployment & Distribution Command (SDDC) • Gail Jorgenson, Director, Acquisition, USTRANSCOM • RADM William Brown, USN, Director of Strategy, Policy, and Logistics, USTRANSCOM • Marc Boyle, President and CEO, Boyle Transportation • Rob Robinson, AVP Short Line Marketing & Commercial Development, Norfolk Southern Corporation The NDTA Surface Committee consists of a broad membership base, which includes less than truckload (LTL), truckload, expedited, household goods (HHG), transportation protective service (TPS), and heavy haul carriers, as well as railroads, transportation intermediaries, third-party logistics providers (3PL), vendors, and suppliers. SDDC is organized into three major business areas: operations, international and domestic transportation operations, international and domestic transportation. International shipping only encompasses one-fifth of SDDC’s business, though people would often think it is much greater. While this international business is declining, domestic business is increasing, which is good news for surface carriers. In addition to domestic business increasing as a result of retrograde, SDDC has been working with DLA to find more busi-

ness opportunities that can be put into the DTS. This move will benefit industry and should bring down rates for the government. Business will also increase due to redistribution of assets following the Army’s decision to bring down some of its brigades. In tandem with working to reduce its rates, SDDC is looking at how to reorganize and integrate its three business sectors. Such a change would help meet the command’s cost savings requirements by reducing staff and would also help focus SDDC’s efforts on its core competencies. Similarly, industry is making cuts to reduce and manage its costs.

The NDTA Surface Committee, the new Surface EWG, and other similar events help promote partnership and communication between the two groups. A meeting is currently in the works to bring SDDC together with members of the rail industry to help manage the process and model the number, mix, and distribution of rail cars needed to support the government. Other opportunities for government-industry collaboration include industry working to hire more veterans, taking a total cost of ownership perspective, and working to provide options when responding to contingencies. DOD shipments are a much more expensive proposition for industry because of the erratic nature of the business. SDDC is working to create more predictability in its business and define its requirements better to also garner better rates. From the industry perspective this will help make dealing with DOD easier.

Ensuring good base access—drivers being able to get on and off base easily—will also make working with DOD easier. If a customer is easy to work with, industry will provide better rates. Progress is being made in each of these areas.

Communication is also needed regarding Federal Acquisition Regulation (FAR) based contracts. Carriers need to let USTRANSCOM know what issues and potential monetary implications are of concern in switching to FAR-based contracts, even though these items are often difficult to predict. USTRANSCOM needs to have information that can help identify cost factors, so that it may share in the risk. Only by sharing risk between the government and industry will these contracts be successful. Regarding pricing strategies, USTRANSCOM is working with an industrial specialist to determine how to best work

with industry, realizing that a one-size-fitsall solution is not possible and some decisions will need to be made on a case-by-case basis. Multimodal contracts are examples of bringing modes together under one contract, but work still remains for integrating truck and rail in domestic shipping. The best way to achieve integration is to tie the pieces together financially. As FAR-based contracts are constructed, value propositions from the tenders have been used.

These contracts are intended to be a vehicle that will provide agility to all parties. It is

The NDTA Distribution Committee is comprised of 3PLs, logistics providers, systems integrators, and support providers.

These members have a vested interest in the health of the DOD transportation network, they are active participants in the logistics business, and they engage in discussions with DOD business partners to seek efficiencies. The mix of companies on the committee look at the end-to-end supply chain distribution worldwide. While the committee had dwindled for a few years, it was recently revitalized and has gained

unknown how driver shortages will impact rates. However, it is important to communicate implications of these changes to the market. Finally, as the Service Contract Act is implemented by the Department of Labor, carriers need help in clarifying some terminology and requirements.

some momentum. One of the committee’s first tasks was to help DLA determine how to save $10 million over five years. This question was posed and DLA provided committee members with its past 10 years’ worth of data. The committee took time to analyze the data and then met with DLA to present its findings. Five companies presented independent analysis of the data and remarkably the recommendation from each was the same—DLA needed to reduce its inventory and reduce the number of locations for inventory storage. As DLA began to explore these findings and determine how to best execute implementation plans, it was determined that the savings produced were significantly higher than DLA’s original goal.

To save money, DLA is also adjusting its packaging options to be more like commercial packaging and ultimately more efficient. It is also utilizing reverse auctions, and exploring other best practices and opportunities to help meet its goals. One additional goal of the DOD is to consolidate the systems it uses, including the systems of its contractors. Better systems provide opportunities to reduce inventory. Efficiencies gained through consolidations of

Logistics/Distribution Roundtable

Moderator: Mary Ann Wagner, Vice President, Operations, Tapestry Solutions, with panelists: • RADM David Baucom, USN, Incoming Director of Strategy, Policy, and Logistics, USTRANSCOM • William Budden, Deputy to the Commander, Military Surface Deployment & Distribution Command (SDDC) • Kenneth Watson, Deputy Director, Strategy, Policy, and Logistics • Joan Cornuet, Senior Manager, F/A18 Supply Chain Management, The Boeing Company • Tim Duffie, Director, UPS • Andy Dyer, Vice President, Government Services, Menlo Worldwide

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systems and within the area of inventory storage will provide savings to DOD, including savings on warehouses and inventory. Some aspects of consolidating and improving systems is related to fact-based decision making. In fact-based decision making, big data is taken and boiled down to provide useful information. Having the right systems will allow millions of records to be quickly accessed in order to find data that is significant in addressing a specific issue, to identify areas of improvement, and to anticipate future challenges. In order to gather this data, an organization must decide what data it wants to have acWith globalization, companies are entering emerging markets, however as they enter these markets they are outsourcing their relationships prior to taking the leap of investing in infrastructure within the new market. Outsourcing of logistics functions has changed over time to include outsourcing not simply to gain capacity, but to also gain capabilities.

Outsourcing is a good solution when it is efficient, effective, and does not duplicate an organic capability. cess to, at what velocity and levels it needs that information, and then determine what the end-use of the data will be.

Industry trends in today’s market environment are creating efficiencies in the distribution process. A few key variables in this are: the time available and required to respond to customer demands, customer response to inefficiencies in the supply chain, and globalization. With globalization, companies are entering emerging markets, however, as they enter these markets, they are outsourcing their relationships prior to taking the leap of investing in infrastructure within the new market. Outsourcing of logistics functions has changed over time to include outsourcing not simply to gain capacity, but to also gain capabilities. Outsourcing is a good solution when it is efficient, effective, and does not duplicate an organic capability. More 3PLs are being seen in the marketplace. DLA must exercise more care to remain auditable when contracting with a 3PL. DTJ 28 |

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NDTA-USTRANSCOM 2013 Fall Meeting Survey 1. What were your primary reasons for attending the meeting? Select up to two answers.

Committee Meetings 34.0% Speakers 23.3% Roundtable Topics 53.4% Networking 65.0% Location / Venue 4.9% Other 1.9% 2. The meeting’s format consisted primarily of roundtable discussions, which meeting format do you prefer?

Primarily Roundtables 32.0% Primarily Speakers 2.9% A Mix of Both 63.1% Other 1.9% 3. Which roundtable did you find most valuable?

Reset & Rebalance 17.5% Sealift / Intermodal 19.4% Airlift 17.5% Surface 25.2% Logistics / Distribution 20.4% 4. On a scale of one to five (with five being excellent), how would you rate the meeting?

5 (Excellent) 34.0% 4 48.5% 3 (Average) 13.6% 2 2.9% 1 (Poor) 1.0% 5. On a scale of one to five (with five being extremely useful), how useful was the information presented during the meeting?

5 (Extremely Useful) 37.9% 4 34.0% 3 (Somewhat Useful) 23.3% 2 4.9% 1 (Not Useful at All) 0.0% 6. On a scale of one to five (with five being excellent), how would you rate the venue/location?

5 (Excellent) 34.4% 4 34.0% 3 (Average) 11.7% 2 0.0% 1 (Poor) 0.0% 7. Should NDTA and USTRANSCOM schedule and organize a similar meeting next year?

Yes 97.1% No 2.9% 8. If a similar event were planned, should it include an expo?

Yes 47.6% No 52.4% To view all answers, including those to the open-ended questions, please visit the meeting website at http://www.ndtah.com/FallMeeting.htm.

December 2013

Thank You NDTA Sponsors Platinum sponsors

Gold sponsors

Silver sponsors

American Auto Logistics • Avis Budget Group Central Gulf Lines • DHL Express • Farrell Lines FedEx Government Services • Fluor Liberty Global Logistics • The Pasha Group Port of Port Arthur • Southwest Airlines Universal Truckload Services, Inc.

Bronze sponsors

Chalich Trucking, Inc. • Crowley Maritime Corporation CSX Transportation, Inc. • Echo Global Logistics • J.B. Hunt Transport, Inc.

Proceeds from the 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.

www.ndtahq.com | 29

Chapter Spotlight San Francisco Bay Area Chapter Races and Raises Scholarships Reginald C. Ali 2nd Chapter Vice President, San Francisco Bay Area Chapter

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he NDTA San Francisco Bay Area Chapter hosted it annual “Day at the Races” fundraising event on October 26th. The Chapter has been hosting this event for over 25 years, and it has become a tradition that everyone looks forward to.

Members often bring their children and grandchildren to the event. Proceeds benefit the chapter scholarship fund.

The Chapter provides scholarships each year to deserving students. While all students are welcome to apply, preference is given to those studying transportation and related fields such as business, engineering, marketing, distribution, and logistics.

The chapter hosted its Day at the Races at Golden Gate Fields Race Track, which is known for its great food, good service, and warm and friendly atmosphere. This location always ensures the chapter’s members and their guests all have a pleasant afternoon. The race track also caters to both seniors and children, which enables the entire family to enjoy the outing.

There were no big winners or losers either, just a fun afternoon spent enjoying friends and business associates. The chapter puts on several fundraising events each year to help support the scholarship fund.

These events also help strengthen the

partnership between members of industry and the military, increasing our country’s ability to respond effectively to military logistical needs.

Each year the chapter holds several events to raise scholarship funds including the Day at the Races, a crab feed, emergency preparedness luncheon, and golf outing. Scholarships are awarded

NDTA members and supporters Charlie and Sharon Madison with their grandchildren; Ranisha Scott, and Anika Dunn pose with the winning jockey.

The San Francisco Bay Area Chapter enjoys a Day at the Races.

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during the Chapter’s Annual Installation of Officers Dinner in June. Several of these events are already being planned for 2014. Check the chapter’s website, www. ndta-sf.com, for more details!

Thanks to everyone who came out to support this worthwhile event and thanks to all of you for helping to keep our country strong! DTJ

December 2013

Steaming jungles, blazing deserts, frozen mountaintops. No matter where the dinner order comes from, we’re the reason MREs are never MIA. For more than 160 years, APL has been working to ensure our service men and women always have what they need to get the job done. Our unparalleled experience in ocean transportation and in-country logistics sets us apart from the competition. APL’s successful, long-standing relationship with the military proves that we have the resources and know-how to deliver when it counts. We won’t let you down, and more importantly, we won’t let down the troops who rely on the supply chain. We pride ourselves on being the mission critical link to success for our military yesterday and today, and we’ll be there for our troops tomorrow.

To learn more about how we serve those who serve, visit www.apl.com/usflag.

U.S. Flag Services

www.ndtahq.com | 31

StrengthsFinder

Making the Most of Your Strengths Irvin Varkonyi, President, Supply Chain Operations Preparedness Education (SCOPE) ivarkonyi@scopedu.com

T

he 2007 bestseller, StrengthsFinder 2.0 by Tom Rath, continues the evolution of the original StrengthsFinder, published in 2001, that shows us how to make the most of our strengths, rather than focusing on getting rid of our negative characteristics. The author is a frequent speaker in front of a variety of audiences, most recently at the annual APICS conference in Orlando last September. How you focus on your strengths impacts how you learn and transfer knowledge to your work and life.

Rath calls the traditional way of learning the “Path of Most Resistance.” He explains1, “At its fundamentally flawed core, the aim of almost any learning program is to help us become who we are not. If you don’t have natural talent with numbers, you’re still forced to spend time in that area to attain a degree. If you’re not very empathetic, you get sent to a course designed to infuse empathy in your personality.”

We often hear the expression—you can be anything you want to be, if you just try hard enough—even if you don’t have the talent to be something you are not suited for. Parents often focus most attention on their child’s lowest grade and spend less time in those areas where the child scored higher, leaving that talent to fend for itself.

The research for this and the earlier book came from the Gallup Polling organization, which developed the 34 assessment tools. One conclusion from Gallup is that “. . . each person has greater potential for success in specific areas . . . the key to human development is building on who you already are.” Or as Rath rephrased the earlier adage, “You cannot be anything you want to be—but you can be a lot more of who you already are.”

Rath calls the central theme of the book “the strengths zone.” When you are not operating in your strengths zone at the workplace, Gallup’s research showed that you are six times less likely to be en32 |

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gaged in your job. You will hate going to work, have more negative than positive interactions with colleagues, treat customers poorly, achieve less on a daily basis, and more.

The assessment test offered by Gallup will help find an individual’s strengths that will lead to assessment in 34 areas.

We can list a few: Achiever – must achieve something tangible each day; select jobs that allow you to have the leeway to work as hard as you want and in which you are encouraged to measure your productivity.

Competition – needs to compare, compete, and win; try to turn ordinary tasks into competitive games; design some mental strategies that can help you deal with a loss.

Ideation – fascinated by new ideas; avoid losing the interest of others by making your ideas more concrete through drawing pictures, using analogies, or simply explaining your concepts step-by-step.

Positivity – is generous with praise, quick to smile, and always on the lookout for the positive side of a situation; don’t pretend that difficulties don’t concern you; demonstrate that you are not naïve, but focused on the positive.

Most reviews are positive about the Gallup findings and the book, in addition to the millions of positive reviews by readers. At www.cleanapple.com, they suggested “This book is a good choice for a professional learning committee or a small professional group to use as a discussion starter . . . this type of sharing of results is essential and appreciated. It makes the experience of the book more complete and the majority of the book seems useful this way. If the group of us are supportive of each other’s strengths— while keeping in mind that we aren’t defining ourselves as only proficient in five areas—it could lead to a better workplace environment, more motivation, and more happiness.”2

December 2013

Personality psychologists offered some criticism of the Gallup research and the Rath book: • Strengths-only is not viable: They cite research that few have more than five strengths (defined as competencies where one is stronger than other managers) and that those five typically aren’t in areas that are aligned with business needs. Just because one has strengths, they argue, doesn’t mean that those strengths will allow someone to be effective.

• Strengths can become weaknesses: Research from groups like the Center for Creative Leadership and numerous personality psychologists shows that leadership derailers—behaviors that negatively impact a leader’s potential success—can be defined as overdone strengths. For example, attention to detail can become micro-management; ability to influence can become highly political behavior. Continuing to focus on your strengths, they argue, at a certain point will create negative consequences.

• Weaknesses matter: We typically fail because of our weaknesses, not because we have not focused enough on our strengths, they argue. By ignoring our “dark side” of personality and focusing only on our strengths we are guaranteeing our failure.

• Focus on your strengths but check your weaknesses: As discussed by a leading critic named Nelson G. Evangelista, you need to focus on your strengths, but also check your weaknesses in order that it does not interfere with your strengths.3 What are your strengths? Does your professional development focus on your strengths? Enjoy. DTJ 1 Tom Rath, Strengthfinders 2.0, Gallup Press, 2007, 33rd printing 2 Tom Rath, Strengthfinders 2.0, Gallup Press, 2007, 33rd printing 3 Wikipedia, 2013

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www.ndtahq.com | 33

N’S CIR RMA CL AI E H C

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

A Team Logistics LLC Aeroscraft American Roll-On Roll-Off Carrier Best Western International BNSF Railway Bristol Associates DHL Global Forwarding

34 |

Evergreen International Airlines, Inc. Global Aviation Holdings Inc. Hertz Corporation Horizon Lines, LLC International Shipholding Corporation KGL Holding Lockheed Martin

Matson Navigation Company Inc. National Air Carrier Association Norfolk Southern Corporation R & R Trucking Raith-CTS Logistics The Pasha Group Union Pacific Railroad

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.

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December 2013

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 AAT Carriers ABF Freight System, Inc. Accenture ACTCO-Afghanistan Logistics Advantage Rent A Car Air Transport International, LLC Airlines for America AIT Worldwide Logistics, Inc. Alaska Airlines/Alaska Air Cargo Al-Hamd International Container Terminal American Maritime Officers Apex Logistics Group Arven Services, LLC Associated Global Systems Atlas International Baggett Transportation Company Booz Allen Hamilton Engineering Services, LLC C.L. Services, Inc. C2 Freight Resources, Inc. Carlson Rezidor Hotel Group CGI Chalich Trucking, Inc. Chamber of Shipping of America Citigroup Coyne Airways Coyote Logistics, LLC Crowley Maritime Corp.

CRST Logistics, Inc. CSC CSX Transportation

REGIONAL PATRONS Acme Truck Line, Inc. AFC Worldwide Express dba R+L Global Logistics Agile Defense, Inc. Alaska Marine Lines Alaska West Express All-Lift Systems, Inc. Allswell Supply Company American Moving & Storage Association American Trucking Associations Amyx Association of American Railroads ATS Specialized, Inc. Benchmarking Partners, Inc. Blkbird, Inc. Boeing Company C5T Corporation CakeBoxx Technologies Cargo Experts Corp.

Cargotec USA, Inc. Cavalier Logistics

Cubic Global Tracking Solutions, Inc. CWT SatoTravel DAMCO DB Schenker Delta Air Lines DHL Express Dollar Thrifty Automotive Group Dynamics Research Corporation Embry Riddle Aeronautical University Enterprise Database Corporation Estes Forwarding Worldwide, LLC Executive Moving Systems, Inc. Express-1, Inc. Fikes Truck Line FlightSafety International Fluor GE Aviation General Dynamics/American Overseas Marine GeoDecisions Greatwide Truckload Management Green Valley Transportation Corp.

Hilton Worldwide Hub Group, Inc. IBM Intermarine, LLC Intermodal Association of North America (IANA) International Longshoremen’s Association (ILA), AFL-CIO International Organization of Masters, Mates & Pilots Interstate International J. B. Hunt Transport, Inc. Kansas City Southern

Keystone Shipping Co. Knight Transportation Krown1 Fzc KU Transportation Research Institute Kuehne + Nagel, Inc. Labelmaster LMI Lockheed Martin Aeronautics M2 Transport Marine Engineers’ Beneficial Association Martin Logistics Incorporated Mayflower Transit McCollister’s Transportation Systems, Inc. Medallion Transport & Logistics, LLC Menlo Worldwide Logistics Mercer Transportation Company National Van Lines, Inc. North Carolina State Ports Authority Northern Air Cargo Inc. Ocean Shipholdings, Inc. Omega World Travel Omnitracs, Inc., a Qualcomm company One Network Enterprises, Inc. ORBIS Corporation Overdrive Logistics, Inc. 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 Radiant Logistics Partners LLC Ramar Transportation, Inc. Roadrunner Transportation Systems Rockey’s Moving & Storage, LLC Sammons Trucking SBA Global Logistics Services Seafarers International Union of N.A. AGLIWD (SIU NA) Sealed Air Corporation Sealift, Inc. Secured Land Transport SEKO Logistics Southern Air Southwest Airlines Co. SRA International, Inc. Teradata Corporation Textainer Equipment Management (U.S.) Limited The Exchange The Parking Spot 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. UTi Aerospace and Defense Group Winston & Strawn LLP Women In Trucking Association, Inc.

Center for the Commercial Deployment of Transportation Technologies (CCDoTT) Ceres Terminals Incorporated CGM-NV a NovaVision Company Chapman Freeborn Airchartering Chassis King, Inc. CR Transport & Logistics Dalko Resources, Inc. EADS North America Enterprise Holdings Enterprise Management Systems Erudite Company Europcar Car & Truck Rental FlightWorks FMN International, Inc. Fox Rent A Car Hanjin Intermodal America, Inc. JAS Forwarding K & S Trucking, LLC Kalitta Charters, LLC LMJ International Logistics, LLC Load Delivered Logistics, LLC Marriott International

McLane Advanced Technologies MCR Federal, LLC Mi-Jack Products Military Sealift Command (MSC) Miramar Transportation Morten Beyer & Agnew MOTIONOLOGY, INC. M-Pak Incorporated Naniq Global Logistics LLC National Motor Freight Traffic Association, Inc. NCI Information Systems, Inc. NFI Oakwood Worldwide Overwatch, Inc. (a division of Avalon Risk Management) Owner-Operator Independent Drivers Association Pak Shaheen Freighters (Pvt) Ltd. Patriot Contract Services, LLC Payless Car Rental System, Inc. Philadelphia Regional Port Authority PITT OHIO Port of Port Arthur

Portus Reckart Logistics, Inc. Royal Trucking Company Ryan’s Express Transportation Sea Box, Inc. Seabridge, Inc. Seatac Marine Services Semper Veritas Maritime Security Solutions Sicuro Group LLC SkyLink Air and Logistics Support (USA), Inc. Southeast Vocational Alliance Stratos Jet Charters, Inc. TechGuard Security Tennessee Steel Haulers The Cartwright Companies Trailer Transit, Inc. Trans Global Logistics Europe GmbH TRI-STATE Expedited Service, Inc. U.S. Bank Utley, Inc. Virginian Suites Arlington YRC Freight www.ndtahq.com | 35

Kent Gourdin

The GAO Edition

T

ime once again to scour the most recent reports from the US Government Accountability Office (GAO) for items of interest. Citations below are followed by links to each report:

August 2013 Intermodal Transportation: A Variety of Factors Influence Airport-Intercity Passenger Rail Connectivity, GAO-13-691, August 2, http://www.gao.gov/products/GAO-13-691 Intermodal Transportation: Results of GAO’s Survey on Air-Rail Connectivity, GAO-13-692SP, August 2013, an E-supplement to GAO-13-691, GAO-13-692SP, August 2, http://www.gao.gov/products/GAO-13-692SP June 2013 Military Airlift: DOD Needs to Take Steps to Manage Workload Distributed to the Civil Reserve Air Fleet, GAO-13-564, June 20, http://www.gao.gov/products/GAO-13-564 Airline Mergers: Issues Raised by the Proposed Merger of American Airlines and US Airways, GAO-13-403T, June 19, http://www.gao.gov/products/GAO-13-403T Transportation Infrastructure: Limited Improvement in Bridge Conditions over the Past Decade, but Financial Challenges Remain, GAO-13-713T, June 13 http://www.gao.gov/products/GAO-13-713T March 2013 Puerto Rico: Characteristics of the Island’s Maritime Trade and Potential Effects of Modifying the Jones Act, GAO-13-260, March 14, http://www.gao.gov/products/GAO-13-260 California High-Speed Passenger Rail: Project Estimates Could Be Improved to Better Inform Future Decisions, GAO-13-304, March 28, http://www.gao.gov/products/GAO-13-304 Department of Transportation: Key Issues and Management Challenges, 2013, GAO-13-402T, March 14, http://www.gao.gov/products/GAO-13-402T DTJ

continued from page 7

depiction of worldwide commercial networks and capability. The US commercial carriers and Third-party Logistics (3PLs) providers have extensive networks that reach into virtually every country in the world. DOD should be aware of these networks and leverage them as necessary. This was followed by dialogue on the viability of the commercial fleet, cargo preference, and the emergency preparedness programs (VISA and MSP). The session concluded with a discussion of multi-modal operations, early requirements identification, and flexibility in Required Deliver Dates (RDD) for efficient operations.

Airlift Issues and Solutions focused on organic and commercial fleet readiness, and future requirements. To ensure the readiness of the Civil Reserve Air Fleet (CRAF) there must be adequate business opportunities for the carriers to remain in 36 |

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the DOD market. There was discussion about DOD cargo moving outside the CRAF program and the need to bring that cargo into the DTS. This was followed by a discussion of commercial best practices applicable to government operations—increased use of simulators for training and improvements in ground operations for quicker aircraft turnaround.

Surface Issues & Solutions began with a discussion of organizational changes within the Military Surface Deployment and Distribution Command (SDDC), and the potential implications for industry. SDDC has identified three lines of business: domestic, international, and

operations. The staff is being reorganized to better support these areas. This was followed by a discussion of opportunities for government and industry collaboration.

There was an excellent dialogue on contracting, the implications of the Service Contract Act (SCA) and other regulatory requirements on operations and costs, and the need to harmonize the definition of “on duty time” between DOD, DOT, and the Department of Labor (DOL). A discussion of industry best practices included use of rail when appropriate, changing process to enable the delivering carrier to backhaul freight on dedicated lanes, and reducing the number of expedited shipments to reduce costs to the government.

Logistics/Distribution Issues and Solutions included a lively discussion on fact-based decision making—making sound decisions based on factual information, how best to use “big data,” the importance of analysis of the data for the decision making process, and the use of data in reducing costs. It is important to involve your strategic partners in developing an effective and cost-efficient end state. There was considerable discussion on ways to collect and use data from multiple systems.

At the conclusion of the roundtables, the attendees had the opportunity to identify topics requiring additional actions/follow up. The initial list includes about 16 potential actions. The meeting concluded with the CEOs, Presidents, and COOs meeting, by mode, with the Commander USTRANSCOM to raise additional issues or discuss specific topics.

A BIG Thank You to our co-sponsor— USTRANSCOM—without your support and participation the Fall Meeting would not have occurred. For those who attended the DTGT Meeting and the Fall Meeting, thank you! Please provide your feedback on the meetings and the changes we are making. Our thanks to each member for your commitment to NDTA, for your confidence in the Association, and for the contributions each of you make in support of our Nation’s economy and National security. DTJ

DTJ Index of Advertisers APL.............................................. 31 ARC................................................ 9 Bennett.......................................C3 Boyle Transportation.................. 6

December 2013

Budget........................................ 17 FedEx...........................................C4 Innovative Logistics.................. 33 Landstar........................................ 2

Maersk Line, Limited.................. 1 SAIC............................................C2 Southwest.............................12-13

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