Attachment I_dtr_part_iv_404_and appendices.pdf

Defense Transportation Regulation – Part IV 2 August 2023 Personal Property

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CHAPTER 404

DIRECT PROCUREMENT METHOD (DPM)

A. PURPOSE AND SCOPE

This chapter provides guidance for the preparation and shipment by the DPM method and provides instructions for the preparation and marking of DPM shipments and procurement of DPM services.

This chapter applies to all DPM household goods (HHGs) and unaccompanied baggage (UB) shipments when transportation services are acquired on the bill of lading (BL) or other shipping document.

B. DPM SERVICES

When the DPM is used, the line-haul transportation service is provided by approved freight Transportation Service Providers (TSPs) participating in the Military Surface Deployment and Distribution Command’s (SDDC) Freight Carrier Registration Program in accordance with the SDDC Military Freight Traffic Rules Unified Publication-1 (MFTURP-1) at https://www.sddc.army.mil/pubs/Shared%20Documents/Military%20Freight%20Traffic%20United% 20Rules%20Publication.pdf. Required materials and services for the preparation, storage, and movement of DPM shipments are acquired by Federal Acquisition Regulations (FAR) base/installation level contracts. See Paragraph G for contracting procedures.

C. ROUTING BY THE PERSONAL PROPERTY SHIPPING OFFICE (PPSO)

The PPSO determines the mode of transportation and the origin freight TSP for the line-haul movement of DPM shipments. DPM shipments are subject to the MFTURP-1. As stated in the MFTURP-1, DPM shipments of crated HHGs must move under the commodity code 100251.

Commodity code 999913 is for the transportation of Freight All Kind (FAK) and should not be used for the movement of crated HHG. PPSOs and retrograde storage shippers must ensure that only Department of Defense (DoD) approved freight tenders that include the DoD unique commodity code 100251 are selected, and that the unique commodity code 100251 is identified in the description of Shipment/Articles section of the Government Bill of Lading (GBL) when awarding DPM shipments to freight TSPs. The PPSO must acquire the best value freight TSP on file in the Global Freight Management (GFM) System. To acquire the best value freight TSP, the PPSO performs the Rate Quotation function in GFM for each DPM shipment and selects the best value TSP in succession from list of TSPs derived from the Rate Quotation. The PPSO enters the best value freight tender in the web-enabled Transportation Operational Personal Property System (eTOPS) and awards the DPM line-haul shipment to the best value freight TSP on the tender. PPSOs can submit a new application request for access to GFM and the Rate Quotation tutorial through the Transportation Enhance Access Management Services at: https://eta-teams.transport.mil/teams/home.

D. USE OF DPM AIR MODE FOR INTERNATIONAL HOUSEHOLD GOODS

Prior to moving DPM shipments overseas, a Transportation Officer (TO) must have Service approval in accordance with (IAW) Department of Defense (DoD) component publications.

E. VALUATION OF SHIPMENTS

The provision of full replacement value (FRV) to all DoD customers provides for the replacement, repair, or payment for the non-depreciated value of lost or damaged items in DPM shipments. The FRV liability limits for DPM shipments are found in Attachment G6.

https://www.sddc.army.mil/pubs/Shared%20Documents/Military%20Freight%20Traffic%20United%20Rules%20Publication.pdf https://www.sddc.army.mil/pubs/Shared%20Documents/Military%20Freight%20Traffic%20United%20Rules%20Publication.pdf

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F. CONTAINERS

Authorized containers, including overflow and oversize containers, must be constructed as specified in the technical provisions of the Performance Work Statement for Packing, Containerization, and Local Drayage of Direct Procurement Method Personal Property Shipments (Appendix G). The policy on the use of overflow and oversize containers is also set forth in this regulation.

G. PROCEDURES

1. DPM Contracts. Packing and containerization services must be acquired by contract. The contracting format in Appendix G is mandatory. The Performance Work Statement (PWS) or the technical provisions for Packing, Containerization, and Local Drayage of DPM Personal Property Shipments (Appendix G) and the Bid Schedules or items to be ordered must be used for developing requirements in acquiring packing and containerization services. The contractual clauses used in the solicitation, award, and administration of the contract are contained in the FAR and the Defense Federal Acquisition Regulation Supplement (DFARS). Annual estimates need to be annotated on the Bid Schedules and a copy of Appendix G provided to the contracting office for their coordination and preparation of the solicitation package.

a. Inspection of shipments must be performed by using DD Form 2773, Report of Contractor Services, Figure 404-1. Unsatisfactory services must be indicated by citing specific paragraph or areas in the PWS and annotating this on DD Form 2772, Contract Discrepancy Report (CDR), Figure 404-2. When completed, the Contract Discrepancy Report must be forwarded to the contracting office for action. The Contracting Officer (CO) or Contracting Officer’s Representative (COR) must take action (set-off deduction, cure letter), against the contractor IAW FAR Clause 52.246-4, Inspection of Services-Fixed-Price.

b. Problems encountered in executing the PWS contract must be resolved by the COR, with the assistance of the CO.

c. The PPSO will base contractual requirements on past experience and estimated future needs.

The PPSO must establish areas of performance for contracting purposes. Both population density and traffic volume must be considered in the establishment of areas of performance.

2. PWS Contract Administration. The TO is responsible for the routing and release of shipments and for arranging delivery to the line-haul TSP. Delivery to the line-haul TSP can be by common TSP pickup at the contractor’s facility or by local drayage by the contractor to the TSP’s terminal.

The TO must ensure the contractor meets all requirements of the PWS and is also responsible for maintaining accurate DPM contract data in the Transportation Operational Personal Property Standard System (TOPS). If the contractor fails to comply with the terms of the PWS, the PPSO must document deficiencies and follow procedures outlined in Paragraph G.1.a., above.

3. Weight Data for DPM UB Shipments. The TO/PPSO must receive the actual pieces, weight, and cube prior to printing the BL. The contractor must provide the required information to the TO/PPSO within three working days after pickup.

4. Consignment.

a. DPM shipments must be consigned IAW the Personal Property Consignment Instruction Guide (PPCIG).

b. When the Continental United States (CONUS) destination is not known for a shipment from overseas, the shipment must be consigned to the designated storage facilities as contained in the PPCIG in the CONUS. The statement “Hold for Storage in Transit” or “Hold for Non- Temporary Storage” must be stenciled on each container after the consignment data. In such cases, the customer at the time application for shipment is made must provide the origin

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PPSO with a leave or contact address in the space provided on the DD Form 1299, Application for Shipment and/or Storage of Personal Property, Figure 404-3. The origin PPSO must forward this information to the responsible storage facility identified at designated ports. The origin PPSO must instruct the customer to furnish disposition instructions to the designated storage facilities, either directly or through the most convenient PPSO, upon determination of the final destination.

c. Shipments moving by military or commercial air must not be consigned for placement in a “hold” status, except when Air Mobility Command Transportation Priority 4 (TP-4) tariff rates apply or when air is the only available shipping method between the origin overseas area and the CONUS. In those cases, the DPM must be used to make delivery to the nearest designated storage facilities. For shipments arriving at East/West Coast ports, refer to the CONUS PPCIG for the responsible facility.

5. Documentation for DPM Shipments Entering the Defense Transportation System (DTS).

a. If documentation for DPM shipments is unavailable through the DTS, the PPSO must assign a Transportation Control Number (TCN) to each DPM personal property shipment entering the DTS. The TCN must be developed IAW this regulation, Part II, Cargo Movement, and annotated on the BL, freight warrant, or other transportation acquisition document. When a shipment requires more than one transportation acquisition document, the same TCN must be annotated on each document. The PPSO must use the date of pickup from the customer as the Julian date in the construction of the TCN.

b. The BL for UB shipments must be prepared after the TO/PPSO has received and input the actual weight and cube from the contractor into DTS. The TO/PPSO then provides the BL to the contractor to give to the TSP upon pickup of the shipment from the contractor facility or provides the BL directly to the TSP picking up the shipment.

c. The Transportation Control and Movement Document (TCMD) must be prepared for all DPM personal property shipments entering the DTS.

d. After the TCMD is assembled, the shipper must offer the shipment for clearance before making the shipment. A clearance is required for all DPM personal property shipments entering the DTS. The shipper clears a DPM shipment by sending Advance Transportation Control and Movement Document (ATCMD) data to the clearance authority.

e. DPM personal property shipments are considered cleared if the clearance authority has not challenged it by the hours/day entered in the ATCMD shipped field.

f. One copy of the BL or other transportation acquisition document, annotated with the TCN, and a properly completed manual TCMD, together with other required documents, must be placed in a waterproof pouch on the number one container of the shipment. One copy of the inventory and one copy of the packing list must be placed in an envelope inside the number one container, in an easily accessible position. For shipments released from non-temporary storage, the exception sheet must also be included. Specific detail on the preparation and usage of TCMDs, TCNs, data elements, prime documents, and trailer cards are contained in this regulation, Part II, Cargo Movement.

g. For those shipments entering the DTS at DoD-controlled aerial and water ports, a two-dimensional and linear bar-coded Military Shipping Label, prepared IAW Appendix G, Paragraph A.7.f.(5) must be prepared and affixed to each shipment piece.

h. The origin PPSO must mail one copy each of the DD Form 1299, customer’s orders, transportation document, and BL to the destination PPSO, who has final delivery responsibility.

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Figure 404-1. DD Form 2773, Report of Contractor Services

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Figure 404-2. DD Form 2772, Contract Discrepancy Report

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Figure 404-3. DD Form 1299, Application for Shipment and/or Storage of Personal Property

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Figure 404-4. DD Form 1299, Application for Shipment and/or Storage of Personal Property

(Back) (Cont’d)

Defense Transportation Regulation – Part IV 13 August 2024

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APPENDIX A-D

PRE-AWARD SURVEY GUIDELINES

A. GENERAL

This regulation, and DD Form 1811, Pre-award Survey of Contractor’s/Carrier’s Facility and Equipment, Figure A-D-1, will be used when making pre-award surveys. Portions of the Federal Acquisition Regulation (FAR) and supplements thereto may be used by the Storage Management Office (SMO) for guidance concerning generally accepted standards of capability, capacity, and performance. Since it is not feasible to list all the criteria that makes a warehouse and its management satisfactory or unsatisfactory, the decision as to adequacy is a matter of judgment. The primary overall objectives to be considered involve the following questions: Will the warehouse afford proper protection to the property to be stored? Is the company capable of performing the required services properly? The SMO will be satisfied that the warehouse has adequate:

1. Protection from contamination, theft, fire, flood, rain, moisture, windstorm, or other hazards. The SMO may request the advice and/or opinion of the law enforcement authority in determining the adequacy of a separate storage location for firearms.

2. Storage methods, such as proper stacking, ventilation, locator systems, and access for firefighting and inspection.

3. Control of the facility as clearly defined by ownership documents or a lease (one [1] year, minimum, for storage-in-transit [SIT] and three [3] years, minimum, for non-temporary storage [NTS]). Subleased facilities are prohibited for approval.

B. STRUCTURAL REQUIREMENTS

Facilities may be constructed of any modern building material normally used and generally accepted for the construction of warehouses, transportation terminals, and structures used for similar purposes.

Materials may include, but are not limited to, brick, block, concrete, and rolled sheet metal, which are the most commonly used and accepted materials. As a minimum, the inspecting official will review the following areas during the on-site survey: construction, compliance with local building codes and ordinances, door and window closures, weather tightness, and adequacy of security procedures.

Warehouses rated as “wood-frame” or “pole” buildings, as determined by the Insurance Services Office or other cognizant fire insurance rating organization, are not acceptable for the storage of personal property due to the extreme fire hazard associated with this type of construction.

C. ENVIRONMENTAL REQUIREMENTS

1. Facilities will be constructed or equipped with adequate devices that will reasonably ensure property will not be exposed to extreme heat; cold; moisture; high humidity; or other environmental conditions which would cause damage, such as mold, mildew, and cracking or separation of finished and glued surfaces. Protective measures may include, but are not limited to, insulation, ventilators, ceiling and floor fans, dehumidifiers, and like devices that are intended to control or regulate the environment within a structure. The requirement for such built-in or external devices will be based on a review of the following factors: geographic location of the facility; weather conditions; previous experience; and incidences of damage claims for facilities within the same area that relate to mold, mildew, or articles which have deteriorated as a result of a climatic condition. Each facility will be evaluated on its own merits considering the above factors.

2. Inspecting officials will consult with local police, fire, and building departments when assessing a facility and further information is needed for approval. Warehouses constructed with exposed

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(bare), uninsulated metal walls and/or ceilings will provide a disinterested third party engineer’s environment report certifying that the facility will provide stored Household Goods (HHG) with protection from extreme heat, cold, moisture, humidity, or other environmental conditions which could produce mold, mildew, and cracking or separation of finished/glued surfaces.

D. INSECT AND RODENT CONTROL

Warehouses will not show evidence of insect and/or rodent infestation. Warehousemen will have an established program , conducted every 30 days, either self-administered or provided by a reputable outside firm, for the control and extermination of insects and rodents, and will include moth control in all areas utilized for the storage of overstuffed furniture (e.g., couches, chairs), rugs, and pianos.

Warehousemen will keep records to confirm the existence of the program.

E. HOUSEKEEPING

One of the most important items in warehousing is good housekeeping. Survey personnel will assure there are provisions for the collection and disposal of packing materials, crates, and other similar trash; that excessive dust and dirt are not prevalent; that working supplies are properly located; and that equipment is maintained in a sound and orderly condition.

F. REPAIRS

Warehouses which require major repairs to afford proper protection of property will not be approved.

Reinspections will be made only after the SMO has been advised in writing by the NTS Transportation Service Provider (TSP) or SIT provider that repairs have been completed.

G. RESPONSIBLE MANAGEMENT AND OPERATION

Inspection records will contain evidence of good management and operational practices. Such evidence may be obtained through visual observation of the facility, equipment, and personnel and from information relating to credit standing and financial stability. Whenever a state or municipality requires a business firm to be licensed to operate a personal property storage warehouse, possession of such license will be verified. The determination that approved NTS TSPs continues to possess good management, financial stability, and operational practices will be accomplished at least annually by the contracting officer. Additional information with respect to determining the responsibility of prospective NTS TSPs is contained in the FAR, under Qualifications, which may be used by the SMO for guidance and advice.

H. FIRE PREVENTION AND PROTECTION

1. Minimum fire protection standards are based upon fire protection systems, fire insurance rates, and other factors. Warehouses that do not meet these minimum standards will not be approved for participation in the program. For overseas areas fire protection and prevention, standards will be established by the theater commander. Fire risk classifications are as follows:

Limitation (pounds)

CLASS 1 Fully automatic supervised sprinkler system. 1,500,000 CLASS 2 Fully automatic unsupervised sprinkler system. 1,000,000 CLASS 3 Supervised detection and reporting system. 600,000

NOTE: When the fire risk classification increases or decreases, the warehouse classification will be adjusted. The above class designations and weight limitations apply to NTS facilities only.

a. Fire protection systems will meet the requirement for insurance rate credit by the recognized fire insurance rating organization. Written evidence of the recognition of an installed fire protection system will be obtained by the NTS TSP/SIT provider from the cognizant fire

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insurance rating organization through the NTS TSP’s/SIT provider’s insurance company.

Periodic inspection (bi-annually as a minimum) by the SMO will verify that the warehouseman is having the system properly maintained.

b. All classes of warehouses will have an adequate source of water for fire-fighting purposes and a responsive fire department. Adequacy of the water supply and fire department will be based upon statements by the fire insurance rating organization, municipal fire department, or local authority having jurisdiction.

c. Weight limitation pertains to a warehouse or a fire separation thereof.

d. The Military Surface Deployment and Distribution Command is authorized to approve deviations from the above standards.

2. Even though a warehouse may fall within an approved fire risk classification, it will not be approved unless it meets all requirements of the Tender of Service, and this Regulation.

3. Warehouses will be approved and utilized In Accordance With (IAW) the standards and provisions of national codes (American Insurance Association, National Fire Protection Association, American Standards Association) unless local codes are more rigorous with respect to fire prevention and protection requirements; minimum clearance above stacks; width of aisles;

accessibility to fire aisles; distribution of fire extinguishers; and outside storage of combustible materials. IAW national codes, the NTS TSP’s, or SIT providers storage area will be separated from other occupants of a jointly occupied building by a fire wall or partition having a fire resistance rating sufficient to protect the warehouse from the fire exposure of the other occupant.

The minimum separation will be a solid wall or partition, without windows, doors or other openings, having a fire resistance rating of not less than one (1) hour.

4. A warehouse operational layout fire plan is required as a part of the pre-award survey process.

Additionally, all approved storage facilities will submit an initial and revised fire plan as outlined below. The layout fire plan will show the configuration of pallets or open-stack storage, racks, aisles, deck space, working areas, office space. Respective dimensions inclusive of wall clearances will be shown. This layout fire plan will be reviewed on site and be signed and dated by a fire department official for approval. The approved layout fire plan will be sent to the SMO for permanent retention in the NTS TSP SIT providers file. Thereafter any change to the operational characteristic of the warehouse must be submitted to the SMO in advance of the changes, for the SMOs review and approval. After the SMO review, the changes will be reflected on a modified or revised layout fire plan, approved by on-site review, signed, and dated by a fire department official. The modified layout plan will be sent to the SMO for retention. A copy of the current approved layout fire plan is to be posted in a prominent position within the warehouse to which it applies.

5. The pre-award survey will verify that:

a. HHG are not exposed to hazardous materials or operations inside or outside the warehouse.

b. “No Smoking” signs are conspicuously posted in all storage areas and that “no smoking” restrictions are rigidly enforced.

c. Waste and refuse are removed from storage areas daily and will be kept in metal containers with tight-fitting metal lids.

d. Aisles are kept free of storage and equipment.

e. HHG are stored on skids, dunnage, pallet bases, elevated platforms, or similar aids that provide a two inch minimum clearance from the floor to the bottom-most portion of the property stored and are not in contact with exterior walls. Trash cans, extension ladders, IV-A-D-4 lawn mowers, TV antennas, swing sets, and other like items are excluded from these requirements.

f. The height of HHG stacked loose does not exceed 10 feet.

g. Heating, electrical, plumbing, and other systems are serviced annually (at a minimum), are maintained in sound condition, and meet all requirements of nationally recognized codes unless local codes or ordinances are more rigorous.

h. Power equipment such as sweepers, pallet jacks, and forklifts are operated and/or garaged IAW nationally recognized codes, unless local codes and standards are more rigorous. An appropriate fire extinguisher, properly mounted, is required on all motorized warehouse equipment.

i. Installed fire protection systems are serviced and maintained IAW nationally recognized codes, unless local codes are more rigorous, ensuring these systems are operational at all times. As a minimum, electronic fire detection and reporting systems Class I and Class III will be inspected every 30 days and sprinkler systems Class I and Class II will be inspected every 90 days. A licensed or otherwise qualified, disinterested third party will perform the inspections.

j. Firearms are stored within a member’s/employee’s storage lot. In those instances where a firearm will be stored separately (i.e., prescribed by law, firearm is only item in storage), the adequacy of the security area will be approved in writing by local law enforcement authority and the SMO.

k. Portable containers, commercial or other similar owner loaded storage containers, are not allowed in DoD approved storage facilities without their contents being inspected and verified by the warehousemen. The inspection and verification will attest that there are no non-compatible or hazardous materials within the container. A written record of the inspection and verification, signed by a company official, must be maintained for all owner loaded containers and the record will be available for review by SMO/Transportation Office (TO) personnel during an inspection of the facility.

I. SECURITY

Security measures will conform to the following criteria; however, for overseas areas, the theater commander will establish security requirements.

1. Building. The walls and roof will be structurally sound, including windows, doors, and skylights.

2. Security Devices. When approved by the storage program manager, the use of electronic security protection systems with AC/DC alternating power sources or protective systems, such as sound detectors, motion sensors, infrared beam sensors, and closed-circuit television, are acceptable only when supervised and monitored at a central station on a 24-hour basis. Additionally, the warehousemen will have a program for the bi-annual inspection and maintenance of these systems.

3. Windows and Doors. All access walk-in doors, warehouse doors, exterior windows, and overhead doors that may permit warehouse entry by simply breaking the glass therein, will require the installation of heavy metal mesh or “chain-link” type fence, or equal materials installed so that they cannot be readily removed from the exterior, or electronic devices that detect the opening and/or the breaking of glass. This requirement does not apply to windows, the base of which is considered to be above the reach of a reasonably determined burglar or vandal.

Skylights, cupolas, and roof vents require the same security measures as windows. When lesser constructed doors (as opposed to heavy duty doors) are used, they will be reinforced with metal bars or steel overlay to defend against forced entry.

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4. Locking Devices. All doors and access hatches will have a double keyed locking system as a minimum. Electric controlled overhead doors, unlockable metal pins, or snap fasteners are not recognized locking devices and will not suffice as an alternative locking method. Exterior padlocks will be designed to prohibit the hasp from being cut. The door from the office to the warehouse storage area will also be secured with a double-lock system. A double-lock system is not required if the office is within the confines of the warehouse walls and the exterior office doors are double locked. When the warehouse office is not within the confines of the warehouse walls and has a door connecting the office area with warehouse area, a double-lock system is required. This locking system is required on the door permitting entry to the office or the door permitting entry to the storage area. The door with the double-lock system will be metal, solid wood, or reinforced as stated in Paragraph I.3 above. When the doors/access hatches are adequately protected by an electronic protection system as described in Paragraph. I.1 above, only one keyed locking device is required.

5. Van Security. Van doors will be secured with heavy duty (case hardened) padlocks or surface key locks.

6. Exterior Area. Recommend heavy-duty fence and lights be used when possible to deter crime.

J. SUBCONTRACTING

When it is in the best interest of the government, the SMO may approve subcontracting IAW the provisions of this regulation. Such approval will be confirmed in writing. Guidance contained in the FAR concerning Subcontracting Policies and Procedures may be used by the SMO to determine if subcontracting is appropriate.

K. OPERATING AUTHORITY REQUIREMENTS FOR NTS TSPS

A prospective NTS TSP engaged in interstate transportation will be responsible for obtaining a Certificate of Public Convenience and Necessity from the United States Department of Transportation or, if engaged in intrastate transportation, a certificate issued by the state regulatory body. In those instances where certain states recognize leasing and/or agency agreements to perform drayage services as an alternative to intrastate operating authority, the prospective NTS TSP will be responsible for furnishing such evidence of compliance with state law.

L. EVALUATION OF FLOOD HAZARDS

Prior to final approval, a flood plain report from the Federal Emergency Management Agency, or the United States Army Corps of Engineers or disinterested third party engineer/surveyor is required to determine if the prospective NTS TSP’s, or SIT providers facility is in a potential 100-year flood area. Buildings with floor levels below the flood plain levels will not be approved.

M. OTHER CONSIDERATIONS

1. During pre-award surveys, it will be determined if the adjoining occupant is engaged in an operation that is hazardous or nonhazardous to the facility being surveyed. For example, does the adjoining occupant use, store, or manufacture any materials, which would be prohibited in a personal property storage facility? Under nonhazardous conditions, the minimum separation will be a solid wall or partition having a fire resistance rating of not less than one (1) hour. When the adjoining occupant is engaged in a hazardous operation, a judgment will be made as to whether or not the hazard is of such a nature that entry or continued participation in the personal property program will be prohibited.

2. A common problem is the garaging and/or repair/maintenance of vehicles in warehouses. In view of the hazards associated with this practice, NTS TSPs, and SIT providers are not permitted to house or perform maintenance on a vehicle within the part of a structure used for the storage of personal property unless the storage/maintenance area is properly separated from the personal

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property storage area by walls having the National Fire Code prescribed degree of fire resistance.

However, privately owned vehicles may be stored in the facility without fire wall separation if properly serviced (i.e., gas drained, and battery disconnected with the terminals taped). If the vehicle will remain in storage over one (1) year, the battery will be removed.

N. TEMPORARY APPROVAL OF SIT WAREHOUSES

The SMO may grant temporary approval when the following conditions have been met.

1. A written formal request from the TO is submitted to the SMO stating that there is a critical need for storage space or other justification for temporary approval of a SIT facility. In any case, it will be in the best interest of the government and not the best interest of the SIT provider.

2. Inspection by the local TO after permission is granted by the SMO.

3. Preparation of DD Form 1811, Figure A-D-1, by the TO. This form will be forwarded to the

SMO.

4. Prior to granting temporary approval, the/SIT provider/warehouseman will have submitted to the SMO and have approved all required documentation for warehouse approval. In addition all warehouse deficiencies will be corrected.

5. The SMO will issue a letter to the SIT provider and the TO granting temporary approval.

6. Permanent approval will be granted after inspection by the SMO at a future date. In the event the SMO finds any warehouse deficiencies, the SMO will suspend temporary approval until such time as all deficiencies are corrected.

O. CARRIER OR AGENT FACILITY REQUIREMENTS

1. Administrative and Warehouse Personnel. The TSP for Carriage or warehouseman’s warehouse will be staffed at all times during normal working hours with personnel capable of participating in a warehouse facility inspection. They must be able to provide the records and information requested by the SMO or Personal Property Shipping Office (PPSO) Quality Control inspectors.

They must also be able to perform actions within the warehouse as requested by the inspector (i.e., retrieve and open storage vaults, retrieve and identify items stored in racks, have access to all areas of the warehouse for visible inspection by the inspector, and know location and how to operate all warehouse systems).

2. English Speaking and Writing Employee. All TSPs or their agents will have an English speaking and writing employee available at the warehouse facility during the SMO/PPSO inspections.

3. Warehouse Manning. All warehouses must be manned during normal business hours. A TSP for Carriage or warehouseman which has multiple warehouses within the same metropolitan area will have the main warehouse facility staffed during business hours as described in Paragraph. O.1.

above. However the additional local facilities need not be staffed but will be inspected by the TSP for Carriage or warehouseman every normal business day. A written log sheet detailing the physical inspection will be maintained, dated, and signed by a representative of the TSP for Carriage or warehouseman to ensure compliance. The log will be available to the SMO/PPSO inspectors during the inspection of the facilities.

4. A facility must be available for inspection by the SMO/PPSO inspector within 30 minutes of their arrival at the warehouse location. A telephone contact will be provided by the TSP for Carriage or warehouseman to the SMO/PPSO which may be utilized by the SMO/PPSO inspector to request the opening of the facility for an inspection. This telephonic contact is for unmanned locations only; manned location inspections will be available for inspection upon arrival at the location by the SMO/PPSO inspector. These requirements apply to Continental United States

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facilities approved for SIT shipments and only to SIT shipments located within the inspected facilities.

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Figure A-D-1. DD Form 1811, Pre-Award Survey of Contractor’s/Carrier’s

Facilities and Equipment

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Defense Transportation Regulation – Part IV 1 March 2024

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APPENDIX A-E

WAREHOUSE INSPECTION GUIDE AND INSTRUCTIONS FOR

PREPARATION OF THE WAREHOUSE INSPECTION

REPORT (DD FORM 1812)

A. GENERAL

This appendix provides information and guidance regarding the on-site inspection of commercial warehouses approved for the storage of the Department of Defense (DoD) personal property shipments. This information supplements the criteria outlined in Appendix A-D, Pre-award Survey Guidelines, and will be used as a checklist when performing quarterly, semiannual, and other routine warehouse inspections. Activities located outside the Continental United States (CONUS), excluding Alaska and Hawaii, may deviate from the procedures outlined herein when the theater commander or other designated authority has established warehouse/facility standards to comply with localized practices, trade, and customs.

1. The DD Form 1812, Warehouse Inspection Report, Figure A-E-1, is to be utilized when performing warehouse inspections. Modern warehousing and storage facilities incorporate various techniques and methods to provide the storage and related services under the applicable Tender of Service (TOS) or Defense Personal Property Program (DP3) Business Rules. The inspecting official will evaluate numerous areas to ensure that the warehouse complies with all requirements and all stored property is afforded adequate levels of protection in a safe environment. Each warehouse inspection will be preplanned to achieve maximum results.

During the pre-trip planning, the inspection official will review previous inspection findings, reports on service failures, customer complaints, claim letters, and other general information.

These and related areas can be discussed with a management official of the company during or after the inspection process.

B. GENERAL INSPECTION PROCEDURES

A technique to be followed during on-site inspections is outlined below.

1. On approach to the warehouse, note general activity, status of yard operations, and evidence of security measures.

2. At the warehouse, contact a management official, advise them of the purpose of visit, and set forth procedures of the inspection.

3. As a minimum, the inspection and evaluation process will include a review of the following areas:

a. Fire detection and reporting systems

b. Security systems

c. Structural and electrical systems

d. Storage methods and practices

e. Locator and lot identification systems

f. Documents to include household goods descriptive inventories, weight tickets, and warehouse receipt.

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C. SPECIFIC INSPECTION AREAS

During the inspection process, it is recommended that the inspection official:

1. Open a selected storage lot to observe packaging, marking, and stacking methods.

2. Check locator system accuracy by randomly selecting storage lots and crosschecking the information contained in the locator system with the actual location of the property in the warehouse.

3. Review segregated item storage practices for articles such as rugs, sofas, and pianos, if stored in a separate warehouse area.

4. Circle outside of the warehouse doing checks for fire hazards and security conditions.

Combustible materials stored outside will be kept a minimum of 20 feet from the building. Due to the proximity of adjoining buildings, property lines and similar circumstances, this may not be practicable in all areas. Therefore, the inspector will exercise sound judgment in applying this standard.

5. Observe worker activity to include operations associated with the handling in and out of shipments.

6. Check truck and platform scales to ensure they have been inspected in accordance with state, county, or city/country codes.

7. Check to verify that maintenance inspections of fire safety systems are performed. As a minimum, fire detection and reporting systems will be inspected by a professional company monthly and sprinkler systems quarterly.

8. Check to verify that an insect and rodent control program, either self-administered or provided by an outside firm, is in effect with a monthly log available for review.

D. INSPECTION OF A WAREHOUSE AND EQUIPMENT

1. Initial Approval of Warehouses. The Storage Management Office (SMO) and Transportation Office (TO) (Outside Continental United States [OCONUS only]) inspects and approves or disapproves warehouse storage facilities. Only warehouses that meet the standards described in this regulation are considered for acceptance. Upon completion of the inspection, the storage provider must be notified in writing whether the facility is approved or disapproved.

2. Overseas. For warehouse facilities located OCONUS (excluding Alaska and Hawaii), the TO must conduct a pre-award inspection of the facilities and equipment using the pre-award guidelines outlined in Appendix A-D.

3. Periodic Inspections. The SMO or TO (OCONUS) or their representative must inspect warehouse facilities at least once every six months following the initial pre-award inspection.

Additional inspections may be conducted by SMO/TO when in the best interest of the government and/or to ensure protection of DoD personal property in storage. If the warehouse facility historical record indicates a total volume of 25 or less shipments annually, and the facility has been awarded a “B” or better, annual inspections may be performed. When deficiencies are reported and action is warranted, the SMO or TO (OCONUS only) may place the facility in a non-use status. The SMO will notify the responsible TO when such action is taken. The TO must notify the responsible SMO when warehouse deficiencies are identified during periodic warehouse inspections.

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E. INSPECTION REPORT

Upon completion of the inspection, a DD Form 1812 will be executed pursuant to the instructions below. The warehouse/storage provider will also be given an oral briefing on the deficiencies noted and a suggested course of action for correction that will meet standards.

F. INSTRUCTIONS FOR PREPARATION OF THE DD 1812

A written report of all inspections will be made on a DD Form 1812 and maintained as part of the warehouse facility file. The DD Form 1812 will be prepared as indicated:

1. The type of inspection will reflect the inspection being performed: Storage-In-Transit (SIT), Non-temporary Storage (NTS) or both. The Personal Property Shipping Office (PPSO) will check the “TO” block when independent inspections are performed, whereas the SMO inspectors will check the “SMO” block. For joint inspections (TO/SMO), the first block indicating both NTS and SIT will be checked.

2. The actual date on which the inspection is performed will be entered.

3. The name and address of the warehouse storage provider will reflect the present name and address of the company operating the facility.

4. The address of the actual location of the warehouse.

a. The block for the fire system/class will be checked as applicable.

b. The total number of DoD NTS shipments will be annotated separately from any SIT shipment totals. For NTS warehouses, the total NTS weight in storage will be used for the SMO to verify the NTS TSP maintains adequate warehouseman’s legal liability insurance and to insure the NTS TSP has not exceeded their maximum weight allowance allowed for their approved fire system.

5. The NTS TOS reference number applies only to SMO inspections where the TSP has been awarded a NTS TOS. If the inspection is for SIT, this block may be left blank or annotated “SIT

ONLY”.

6. The current status of the warehouse will be checked.

7. Section 7: “Tender of Service on File”

8. Section 8: Pre- and Post-Storage Services. All deficiencies and violations listed in this section will be based on inspections by the TO or SMO inspecting official in connection with pre- and post-storage services.

9. Sections 9 through 12: These sections separate the inspection areas by categories and subcategories, which are to be evaluated during the inspection process. References will be made to the applicable DP3 Business Rules and numerical Quality Control Point Ratings (Table A- E-1). All subcategories listed will be checked and assigned a quality control point rating when deficiencies are observed. For subcategories which do not have a cross-reference to the DP3 Business Rules, commercial warehousing principles as established by the American Warehousing Association, National Fire Protection Association, and/or similar authorities will be utilized. The inspecting official may assign a lower or higher point value (not to exceed three) depending on the severity of the deficiency.

10. Section 13: Deficiencies Observed/Actions Taken. This section is for the assignment of a quality control rating and is designed for the inspecting official to apply a suitable numerical rating to the facility. Based on the findings noted, the inspecting official may indicate any necessary actions to be taken by the warehouse storage provider.

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11. Section 14: Document Files Checked. This section is used to list warehouse and/or shipment documents reviewed during the course of the inspection.

12. Section 15: Lot Numbers Checked. This section is used to identify specific shipment lots inspected which attributed to the inspection results.

13. Sections 16 and 17: Signature Blocks. The DD Form 1812 will be signed by the inspecting official and a representative of the warehouse storage provider at the time of inspection and prior to distribution of the form.

14. Section 18: Remarks Section. This section is used to provide a narrative description of the deficiencies observed and record other information relative to the inspection.

G. INSPECTION RATINGS AND RESULTS

1. Upon completion of the inspection process, the warehouse will be rated in Section 13 based on the type and severity of discrepancies observed. Ratings will be awarded as follows:

2. “A” rating. This rating is assigned when no deficiencies are observed. No further action is necessary.

3. “B” rating. This rating is assigned when the observed deficiencies are minor and are easily correctable. The warehouse storage provider will be requested to perform immediate corrective action.

4. “C” rating. This rating is assigned when deficiencies are observed; however, they do not warrant declaring the storage provider in a non-use status for further business. The storage provider will be required to provide a written detailed report of corrective action taken, signed by a company official, within 10 days after the inspection, unless additional time is authorized by the SMO/TO to ensure an adequate response. The warehouse facility will be closely monitored by both the SMO and TO for any future signs of deterioration in the quality of service. During the next regular inspection, if the warehouse storage provider has falsely reported a corrective action or repeated a violation previously called to their attention, grounds exist for immediately placing the warehouse facility in nonuse. For CONUS warehouses, the TO will forward a copy of the DD Form 1812 to the SMO with a recommendation that the warehouse be placed in a non-use status.

5. “D” rating. This rating is assigned when the observed deficiencies merit a quality control rating score of “D” (17 points and over) or items marked by an asterisk are considered of sufficient importance to warrant declaring the warehouse facility in a non-use status for further business.

The inspecting official will immediately place the warehouse storage provider in a non-use status pending corrective action. The warehouse storage provider will be required to explain action taken and provide a written report of corrective action prior to the warehouse being reinspected.

When evidence of correction action has been provided, recommendations can be made by the TO to the SMO to either reinstate the warehouse, continue the non-use status, or provide reasons for disqualification. Requests for reinstatement or disqualification will include a copy of the DD Form 1812 used for the reinspection, or written notification of inspection findings.

6. “E” rating. This rating is assigned when the warehouse has been previously placed into a non-use status by the SMO or TO (OCONUS only). The prior non-use status could be a result of many factors to include, failure to provide administrative documentation, warehouse damage from an unusual occurrence or failure to adequately correct previous warehouse violations. When the SMO or TO (OCONUS only) determines that an “E” rating is no longer sufficient and the problems have not been corrected, the warehouse will be disqualified and no longer able to participate in the Government Storage Program. Upon discovery of deficiencies in the warehouse storage facilities, encourage the storage provider to correct those deficiencies during the inspection. In each instance, the improper storage methods must be annotated on the DD Form

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1812, Figure A-E-1, and included as part of the performance record. Depending on the severity of the deficiencies, as determined by the scored elements on the DD Form 1812, the following actions apply:

a. When the inspection reveals the failure to exercise proper security measures such as inadequate access points, or structural discrepancies such as broken doors, windows or walls, the SMO or TO (OCONUS only) must immediately place the warehouse storage facility in a non-use status. The non-use status must remain in effect until written confirmation is received indicating corrective action was taken and a reinspection of the facility has been conducted by the TO and/or SMO. Generally, violations listed on the DD Form 1812 with asterisked items would be reasonable cause to immediately place the warehouse storage facility in a non-use status.

b. If, in the SMO’s or TO’s (OCONUS only) opinion, the deficiencies are of a nature that stored DoD shipments may be damaged or contaminated, the SMO or TO (OCONUS only) must immediately place the facility in a non-use status and the TO must notify all TSPs who have SIT shipments in the facility. The TSPs must remove the property and relocate it to another DoD-approved storage facility. The cost of removal must be at the expense of the TSP and at no expense to the Government or the member/employee. Generally, when a facility receives a quality control rating of 17 or more points on the DD Form 1812, the SMO or TO (OCONUS only) must immediately place the facility in a non-use status. Relocation of shipments must be based on the potential and probable loss and/or damage if they were allowed to remain in the facility.

c. If, in the SMO’s or TO’s opinion, the deficiencies cannot be corrected immediately but DoD shipments are properly protected, the property must not be removed to an alternate warehouse facility. The warehouse storage provider must be given 10 days from the date of the inspection to correct those deficiencies or to implement corrective action. If the storage provider fails to satisfactorily correct the deficiencies within 10 days from the date of inspection, the warehouse storage facility must be placed in a non-use status. These actions are generally taken when a facility receives a quality control rating of 9 to 16 points on the DD Form 1812.

d. If the warehouse storage provider is in a non-use status and all deficiencies are corrected within 30 days from notification, and verified in writing by a follow-up inspection, the warehouse storage facility will be reinstated to receive additional storage. If a deficiency remains uncorrected beyond 45 calendar days from the date of notification, the warehouse storage facility will be disqualified and removed from the DoD storage program.

e. When an inspection results in the disqualification of a warehouse storage facility, the disqualification will apply to all DoD shipment storage using the same warehouse storage facility. The SMO/TO may inspect warehouse storage facilities at their discretion.

H. DISTRIBUTION

The DD Form 1812 will be completed in triplicate and distributed, as indicated below, after the inspecting official and warehouse representative have signed the completed form:

1. The original is placed in the SMO contract file or TO file.

2. A copy is furnished to the warehouse storage provider at the time of inspection.

3. When the inspection is performed by the SMO, a copy is provided to the TO. When the inspection is performed independently by a TO, a copy will be provided to the SMO. When a TO/SMO has assumed the inspection responsibilities for facilities used by other TOs, a copy of all inspection reports will be provided to each user activity within 10 working days from the date of inspection.

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Figure…