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Defense Transportation Coordination Initiative (DTCI)

Overview Briefing

LTC Leslie SullivanDec 06

U.S. Transportation Command

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Mission

Partner with a world-class transportation services provider (3PL) to manage CONUS distribution of

material for selected Service and Defense Logistics Agency (DLA) shipping locations. Leverage the

winning coordinator’s existing commercial business with his “best commercial practices” and our large volume of DOD freight to achieve efficiencies in

distribution and associated cost savings.

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Why are we doing this?

Over 600 CONUS shipping locations More receiving locations No enterprise-wide vision, collaboration or direction

3PLs are particularly effective in the commercial world So why not DoD? Our SE region “pilot program” gave OSD confidence to press ahead We can garner efficiencies as well as cost savings….

Improve operational effectiveness Support strong small business participation Improve customer confidence Reduce cycle times (defined as time from request for movement to delivery) Increase efficiencies Develop a partnership to integrate commercial best practices Enable process improvements Achieve cost savings Integrate seamlessly with the DoD Strategic Distribution System Protect operational capability like a DoD critical infrastructure asset

DTCIGoals

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Guidance and Oversight

Office of the Secretary of Defense (OSD) Transportation Policy is strong lead Acquisition, General Counsel, Comptroller, others provide support

Distribution “governance” Steering Group Senior Task Force Executive Board Combatant Commander’s Council Other groups as required

USTRANSCOM DTCI Project Manager reports directly to Commander Acquisition provides acquisition policy and contracting support

Services, Defense Logistics Agency, and Supporting Agencies

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Industry Players

Dozens of participants in pre-proposal discussions

Trade Associations American Trucking Association (ATA) National Defense Transportation Association (NDTA) Transportation Intermediaries Association (TIA) Several others….

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DTCI Site ActivationPhase I

Phase II

Phase III

Joint/DLA

Air Force

Marine

USPFOArmy

Navy

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Functional Concept (PWS requirements)

DTCI coordinator will: Arrange, coordinate, monitor, and control freight shipments from

notification to delivery

Manage and optimize enterprise operations while providing exception reporting

Process timely payments to subcontractors and carriers for services provided

Accept, process and facilitate claims resulting from loss or damage

Manage carrier quality and performance Assist in the ID and delivery of astray freight Provide In-Transit Visibility (ITV) to government systems and real-time

access to shipment info Perform shipment optimization, consolidation and routing services Provide management info and accounting reports Collaboratively develop, recommend and implement process

improvements

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Exclusions

• OCONUS freight movements (Theater controlled)• Vendor shipments• OCONUS unit moves• Universal service ocean carrier contracts• Household goods to include DPM moves• DOD organic equipment moves• On-site local drayage contracts• Bulk and Missile fuels• Small package contracts• Privately owned vehicles• Sensitive and/or classified shipments• Arms, ammunition and explosives• Cash/Collect on delivery shipments

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Performance Thresholds

On-time pickup – 98%

On-time delivery – 98%

Loss and damage-free shipments – 98%

Process loss and damage claims in a timely manner – 99%

within 120 days

IT systems available for use – 99%

Small business subcontracting – 20% first year

Market Research and Industry discussions indicate thresholds are achievable

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How will we measure performance?

• Quality Assurance Surveillance Plan (QASP)– Performance Objectives and Thresholds– Surveillance responsibilities of the government– Procedures for evaluating performance and resolving issues

• Program Management Review (PMR)

• Comparison of contractors monthly report against Transportation Officer (TO) shipper system/hard copy data

– QA Representative on site forwards to DTCI PMO quarterly– If sub-standard performance, a % of management services will be reduced

• Random Inspections

• Web-based Process Change Request System / Customer Feedback