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August 2009 
Due to concerns raised by a number of members about problems with the military's Defense Personal Property Program (DP3) program and its Defense Personal Property System (DPS), AMSA President & CEO Linda Bauer Darr wrote to Surface Deployment and Distribution Command (SDDC)'s Commander James Hodge in June. She credited Lt. Col. Bradley and his team for working hard to find solutions to many of these problems, but their diligent efforts have not kept pace with the problems that are occurring. She urged SDDC to significantly reduce the volume of shipments moving through DPS during the rest of the summer peak moving season in order to prevent more severe problems. This would also give the Department of Defense (DOD) time to fix the numerous problems that have been identified with the DPS system without the pressure of dealing with an overwhelming number of live shipments affecting service members and their families. Gen. Hodge met with Linda Bauer Darr July 1 at Scott AFB to discuss these problems. AMSA requested an immediate significant reduction in the number of shipments being put into DPS to give DOD time to fix the numerous problems with DPS and the DP3 program. She also asked SDDC to work with industry as they develop fixes for the problems, rather than working in isolation. To facilitate our discussion, the members of the Government Traffic Committee sent in a list of the problems associated with DPS and DP3 that are creating the most severe, urgent problems for PPSOs, TSPs, van operators, customers, etc., along with an understanding of why those specific problems are so critical that SDDC needs to take immediate action to address them. This was an excellent meeting, as Gen. Hodge was very receptive to the industry's message. He indicated he has been hearing similar concerns from the military services, and he appreciated the opportunity to meet with us in person to discuss these issues. General Hodge responded to the lists of issues and the general concern about DP3 volume on July 24. He indicated that "overall it appears we've seen DPS volume stabilize, and even decrease from June through July. Additionally, we do not envision additional capabilities such as short fuse shipments or personally procured moves to be added to DPS in August. This essentially gets us through the heaviest part of peak season before any further attempts are made to add more functionality which could significantly increase the percent of shipments moving in DPS." SDDC's initial responses to the top issues are summarized below: DPS Performance/Reliability: We believe some of the issues you've highlighted in this area have been worked and improved. Additionally, SDDC is preparing guidance to PPSOs to speak to actions PPSOs should take to continue to work shipments even if they lose access to DPS. Customer Satisfaction Survey (CSS): The DPS CSS response rate concerns us, but it has risen slightly in recent weeks. SDDC and JPMO are currently trying to create one unified location for CSS to simplify and standardize the process for members. Interface: We understand industry's desire for a two-way interface. Funding will continue to be a major issue associated with this system change request. Help Desk: Starting in June, SDDC and USTRANSOM added government representatives to the Help Desk in order to assist with the volume of calls. Help Desk hours have been extended and a new website was implemented that allows customers to create and track Help Desk Tickets. JPMO and SDDC are going through an extensive review of Help Desk Tickets in order to reduce the backlog. Claims: While claims is listed as a top issue, more claims need to be filed in order to get a better sense of issues associated with the claims module. While access issues were problematic at the beginning of the summer, we do not continue to hear that complaint to the same extent. Of the shipments delivered in DPS, approximately 10% of those already have claims filed in DPS. PPSO With Different Rules/Training: Daily, the PPSOs and JPPSOs are becoming more proficient with DPS. As the DPS shipment volume increases, this proficiency will increase. If TSPs are having particular issues with a select PPSO, they should inform the service HQ responsible for that PPSO. We will continue to explore ways to provide training to the industry that is valuable and cost effective. Communication: Formal communication was re-established between Industry and the Government with the Personal Property Forum held at the April ’09 SDDC Symposium. A second PPF is being scheduled for Nov ’09. Weekly Invoice Calls have been initiated with Transportation Service Providers and are ongoing. SIT/Spread Dates: Spread Dates are clearly defined in the business rules and come primarily into play when establishing the pickup date. The destination SIT authorization process is clear as of the recent business rule change (7 July 09). At time of counseling the member "may" identify a spread of dates or a specific date to be picked up. Once the TSP accepts the shipment the TSP is authorized to adjust dates with customer approval to accommodate direct load and/or direct delivery so it's totally up to the TSP to "sell the alternate date" to the member. The Military Services are adamant that the current business rules on the use of spread dates is what they want. Service members schedules are more inflexible than civilian customers but the Services agree to publicize the benefits of flexible pickup/delivery dates to ensure a successful move. Invoice: Improvements to Invoicing have been made throughout the summer. SDDC set up weekly invoice calls to interested TSPs in order to identify and work through issues associated with invoicing in DPS. The answer to each issue (except for the Interface) is essentially that "things are getting better." While we hope that is AMSA members' experience as well, there are plenty of issues that remain and that need to be worked to reach an acceptable solution. For example, the spread dates response indicates that SDDC still does not understand how spread dates work in the commercial world. DOD believes that commercial customers have more flexibility than military customers even though 70% of military shipments go into storage because the military customer is on leave and doesn't need their shipment. SDDC also continues to view spread dates as a pickup issue and not as a delivery tool.
DOD's www.move.mil website includes useful information about the implementation of the DP3 program. As of July 9, there were 113 GBLOCs participating in DP3 shipments (a list of 111 participating bases is on the website). DOD has counseled 52,504 members in DPS and awarded 43,373 shipments (42% Domestic, 34% International, and 24% Unaccompanied Baggage). 12,080 shipments have been delivered, and over 12,300 invoices paid (many shipments have multiple invoices). On the website, DOD admits that many of their customers have experienced slow system performance and numerous unexpected session closeouts. Eight shipment types continue to counsel and ship via TOPS, as work in these areas continues in DPS. Those shipment types are:
SDDC also advised AMSA in June that they are considering changes to the rules for pre-move surveys in the DP3 program. AMSA filed extensive comments on the proposal June 22, agreeing with some of the changes and raising concerns about the wording or intent of other parts of the changes. It is unclear what the timetable is for the release of the new rules. SDDC has posted a new version of the 400-NG rules on its Web site. The software with the rates has not changed since the rates were adjusted effective January 1, 2009 (version 1.2). If you need to order a copy of the 400-NG, please contact Carol Laird at (703) 706-4971 or claird@moving.org. The new 400-NG rules initially included changes to Item 16 (fuel surcharge) that would have required carriers to ensure they were paying the fuel surcharge to the party that is actually purchasing the fuel. After AMSA objected to this change, SDDC agreed to remove this language for this cycle but they will most likely be incorporated in the next TOPS and DPS rate filing opportunities. This is the result of a law passed by Congress last fall requiring all government contracts to be modified to include a 100% fuel surcharge pass-through. We understand there is going to be a Federal Register notice soon with implementation details, and AMSA plans to file comments indicating the need to clarify whether solicitations qualify as contracts, and also how surcharge revenue could be divided between linehaul drivers and other users of fuel, such as pack crews and estimators. This requirement will be very difficult to enforce, so we will attempt to convince DOD to exclude household goods shipments. The rules for the current program and most of the rules for DP3 can be found on the Defense Transportation Regulations (DTR) website. A recent addition to the DTR site is a new Tender of Service for the current TOPS-based program (click on Appendix B).
LTC William F. Carberry, the Joint Program Manager for the Joint Program Management Office, Household Goods Systems (JPMO), is retiring from the military. USTRANSCOM has named Colonel Mike Miller, USAF, as the next program manager. The JPMO is the office responsible for the DPS computer system that is used for the DP3 program.
For the first time in 2009, the national average for diesel fuel on July 6th exceeded $2.50, coming in at $2.594 and triggering a fuel surcharge on DOD and GSA shipments picked up between 7/15/09 and 8/14/09. The DOD surcharge is 1%, while GSA uses a formula based on the difference in fuel price and including miles traveled.
Many of you already use AMSA for military and GSA rate filings. If you aren;t a current customer, we encourage you to learn more about this service. Our expert rate filers are counted on to stay abreast of the complex filing process, which is very popular service with AMSA members. Contact Dawn Kennedy at dkennedy@moving.org, (703) 706-4972 or (843) 903-5070 to learn more. Upcoming rate filings include: *The DW09 LOI reports were posted July 29th. If you have any LOI issues in those reports, you need to have the base correct them no later then August 11th. *DEADLINE for M/T-A: to AMSA by September 8, 2009 for filing with SDDC by September 14, 2009. *2nd Qtr. 2009 GSA Claim & Shipment reports due to AMSA August 14th *GSA's annual rate filing will probably occur August 24 - October 8, but dates have not been finalized yet.
Scott Michael attended a hearing at the IRS headquarters April 16 on the draft IRS proposed regulation to implement the upcoming requirement that all Government agencies withhold 3% of the contract value of their government contracts. The IRS has proposed to exclude payments under $10,000 from the withholding requirement, and AMSA strongly supports that concept as it would significantly reduce the negative impact of this onerous regulation on movers. We are also seeking to have the limit apply per invoice rather than per payment, especially in cases where the Government is bundling multiple invoices into a single payment, such as with PowerTrack payments. This issue was highlighted by the witness for the Government Withholding Relief Coalition (GWRC), as the GWRC testimony led with our key issue (in addition to outright repeal of the 3% withholding). AMSA is part of this coalition, and we brought this issue to the coalition's attention and furnished them with language for their comments. We also submitted written comments to the Federal Register notice on this proposal, and will continue to seek full repeal of the requirement.
SDDC held their annual Symposium earlier this month in Atlanta, GA. A Personal Property Forum (PPF) was added on to the Symposium this year for the first time, and SDDC indicated they hope to schedule a PPF approximately twice per year, once at the Symposium and in the fall near Scott AFB. The PPF provided attendees an excellent opportunity to mingle informally with key decision makers in the military in addition to the formal agenda, which is posted to the SDDC website. At the Symposium, it was reported that a problem had been discovered with the traffic distribution calculations for the DP3 program, and nearly 300 shipments were being pulled back from the carriers they had been awarded to, and re-booked with new carriers. This major disruption has created great concern within the industry about how the process works. AMSA is asking SDDC to give the industry visibility into the traffic distribution, or alternately to provide an independent third party review of how the system works, as many carriers do not believe the distribution is working as it was promised.
GSA held a meeting with current and prospective Move Managers April 14 at their Arlington, VA offices. GSA's Office of Governmentwide Policy (OGP) discussed pending changes to the Federal Travel Regulations governing entitlements for relocating civilian Federal employees, and possible legislative changes being considered as well. GSA's Audits Division reminded the Move Management providers of the need to carefully check all documentation as part of their pre-payment audit of invoices, and assured them that the post-payment auditors would be checking to make sure they were doing a thorough job. GSA also reported that its new Move Manager contract was awarded to Graebel Move Management. This drew some heated discussion about how GSA will promote this company and all other Move Managers in the CHAMP program. In news of interest to all GSA carriers, GSA also indicated they are considering several changes to the GSA-01 tariff that replaced AMSA's 415 tariff, including a charge for use of a flat TV box in lieu of crating. AMSA no longer officially publishes the GSA tariff, or has any control over its content, but we are able to provide technical advice to GSA, and we sell reprints of the GSA-01 tariff. A pre-solicitation conference will be held August 6 to provide details of all of the changes to participating carriers. The Conference will provide an in-depth review of the Request for Offers, which will include any changes to the Household Goods Tender of Service and fuel sucharge policies. GSA will also be identifying any changes/clarifications to the GSA01 Tariff, which goes into effect November 1, 2009. In addition, representatives from the State Department will be on hand to go over their domestic and international non-alternating SROs and to identify any changes for the next filing cycle. The agenda for the meeting lists the following topics as presumed changes:
If you plan to attend the August 6 meeting, please e-mail brian.kellhofer@gsa.gov and identify how many people from your firm will be attending. If you have any questions, please contact Brian at (816) 823-3646.
If your company has ever moved a spacecraft or had any related dealing with NASA, we want to hear from you! We’re currently working on an article for Direction about how our industry supports NASA (for example, transporting many of the interplanetary probes now in space). We’d like to hear about your memories and experiences going back to the 1960s. Please contact Public Relations Director John Bisney.
The Spring Issue of Industry Trends is now available and features an in-depth look at the Sun Belt states of Arizona, Florida and Nevada. Learn how these states are faring in today’s economy and look at the key employment, wage and income numbers for these areas of the country. AMSA has taken this valuable information from a variety of resources and consolidated it into one concise, informative document. This issue also contains information on the top population growth markets from 2000-2008, a comparison of traffic segments over the past three years, the top in and outbound states, and much more. Industry Trends should be a key business planning tool for your business and leadership team. If you aren’t a current subscriber and want to gain more insights about current trends and business activity within the sector, call AMSA’s Membership Department to subscribe. The quarterly publication is available for $275 for AMSA members. Click here for more details, or call Carol Laird at (703) 706-4971 to place your order.
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