Chapter 405 Quality Assurance.pdf

Defense Transportation Regulation – Part IV 1 March 2012 Personal Property

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CHAPTER 405

QUALITY ASSURANCE (QA)

A. INTRODUCTION

QA standards in the DP3 consist of scored and non-scored factors. Non-scored factors include the requirements of the DTR, Part IV and other guidance provided by SDDC.

B. QA REQUIREMENTS

The DTR Part IV, the International Tender, the Domestic 400NG Tariff, and other guidance provided by SDDC, including, but not limited to, TMAs, specify the requirements of service that the TSP agrees to fulfill in the movement of DOD sponsored personal property shipments. The provisions of these business rules provide guidance for the use of QA procedures for both domestic and international shipments, including OTO shipments, special solicitations, VMs, and all shipments processed in the DP3.

1. TSP Accountability: The TSP on the BL is fully responsible for the shipment and storage

(including, but not limited to, all loss and damage, claims, or other violations). No subcontractor or separate entity is considered to have moved or stored the shipment for the purposes of QA. It is the responsibility of the TSP to use sound judgment in its selection of personnel as company representatives. Any violation of the rules is considered an act of the TSP listed on the BL and dealt with according to the procedures listed herein.

2. Satisfactory Service: The TSP must consider the satisfaction of the DOD customer and the

PPSO. The DOD customer is the primary gauge of the quality of service as determined by the results of the CSS Reports and quality control procedures must be used by the PPSO to help ensure that only those TSPs providing high quality service are used.

3. Time Frames: All time frames, unless otherwise noted, are in calendar days.

4. Correspondence: All correspondence to/from a TSP must be handled expeditiously. All correspondence concerning appeals can be sent by mail, e-mail, or FAX but must be supported by evidence of timely submission such as certified mail, e-mail delivery confirmation, or other electronic data which is subject to review and interpretation by the appellate bodies delineated in these rules. All correspondence must include the SCAC. A TSP declaring CFAC is responsible for monitoring its mailing address locations as provided in the ETOSSS and published by SDDC, for appeal decisions and other correspondence.

C. INSPECTIONS ACTIONS AND PERFORMANCE EVALUATION

Evaluation of TSP performance begins when the origin PPSO offers a shipment to the TSP.

Acceptance of the offer binds the TSP to perform IAW the general terms established by the DOD and agreed upon by the TSP and the specific terms contained on the BL and the rate solicitation.

1. Shipment Inspections:

a. Non-Scored Factors in DP3: All requirements of DTR Part IV, the International Tender, the

Domestic 400NG Tariff, and other guidance provided by SDDC, including, but not limited to, TMAs, is evaluated independently from BVS factors. The monitoring of services via inspections is a critical component of this program and necessary to ensure that DOD customers continue to receive the quality service promised by this program and provided by industry. Punitive action for violations can be taken by the PPSO and/or SDDC.

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b. Inspection Goal: An inspection goal of not less than 50 percent (e.g., percentage of all

Personal Property shipments Inbound/Outbound) must be set by individual Service policy.

Inspections can be physical and/or telephonic.

c. Inspection requests: When requested by another PPSO, the DOD customer, SDDC, or the

TSP, a PPSO must make a maximum effort to inspect a specific shipment. This is subject to the PPSO's ability and Service policy. The following considerations must be made when requesting an inspection:

(1) Whether or not an inspection was conducted at the origin.

(2) An indication of poor quality service or TOS violations on the shipment, (which must be identified in the request for inspection).

(3) Indications of the DOD customer’s dissatisfaction with the service provided by the TSP.

d. Shipment Evaluation and Inspection Record (DD Form 1780) Procedures:

(1) The DD Form 1780, Figure 405-2, is a web form in DPS and must be used by inspectors to record any TOS violations found on inbound or outbound shipments.

(2) Shipments not moving via DPS require a DD1780 to be completed manually.

2. TSP Performance File: A performance file must be kept for TSP's. The files may be maintained in DPS, electronically, and/or hard copy. PPSO's should utilize DPS capabilities to the fullest extent possible, minimizing hard copies. The TSP performance file should contain, or make reference to, the following (as applicable):

a. Origin and destination shipment inspections (e.g., DD Form 1780)

b. Customer Satisfaction Surveys (CSS)

c. Investigation records of complaints made against the TSP

d. Shipment reweigh records

e. Letters of Warning (LOW) and Letters of Suspension (LOS) (DD Form 1814, Carrier

Warning/Suspension/Reinstatement/Cancellation of Warning, Figure 405-1)

f. TSP's responses/corrective actions to LOW/LOS or complaints

g. All other communications concerning TSP's performance

h. Photographs depicting substandard service.

NOTE: Items a., b., d., and e. above are maintained in DPS and are available for review by the PPSO, SDDC and Service HQ's.

Performance File Maintenance: Files must be maintained for both the international and domestic shipments. TSP performance files must contain shipment information for two calendar years.

3. PPSO Review: When taking punitive action the PPSO WILL review the overall TSPs performance within DPS for both failures and successes. The PPSO must look for recurring deficiencies or patterns of unacceptable performance and initiate action to warn, suspend, or recommend disqualification/non-use through SDDC,

4. TSP Review: TSP's may review their performance within DPS. These reports include CSS, claims scores, LOW/LOS, among other performance factors. PPSO will allow the TSP to review their applicable performance file information that is not contained within DPS.

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D. PUNITIVE ACTIONS

QA Actions: When a TSP violates any provision of its agreement and/or the DP3 Business rules, the

PPSO may issue a LOW, LOS, or recommend an action to SDDC. CSS comments may be used as supporting evidence in the issuance of a LOW/LOS. The PPSO must take into consideration the severity of the violation, impact on the DOD customer, the quality of the TSP’s past performance, and the actions the TSP may have taken to correct the deficiencies. QA actions in the DP3 are summarized below:

1. LOW:

A LOW serves as notice to a TSP that if violations or performance problems continue, suspension action may follow. LOWs must be prepared by the PPSO using DPS. A LOW is generated by

DPS after an inspector inputs the violation in DPS. Violations are tallied by the system at a

BLOC for a rolling 180 days for TSP inbound/outbound traffic. When a TSP commits the same violation three or more times during a 180 day period, suspension action may be considered.

NOTE: A LOW may be issued for any violation(s) and is not limited to those listed on the DD Form 1780.

A LOW, DD Form 1814, Figure 405-1, is issued by the PPSO to a TSP for unacceptable performance. The LOW must state, as a minimum:

a. DOD customer’s name,

b. BL number, and

c. The rule or regulation indicating the violation that resulted in the LOW.

The TSP may view the DD Form 1780, which supports the warning in DPS. Notification of the

LOW is sent to the TSP via DPS. Unless a written response is requested by the PPSO, TSPs are not required to respond to LOWs.

2. LOS:

a. LOS: All LOS are overt actions by the PPSO to ensure the suspension action is appropriate and not due to system error. When a LOS is issued, DPS notifies the TSP of the suspension action. The LOS must state the following to substantiate the suspension:

(1) DOD customer’s name,

(2) BL number,

(3) Rule or regulation violated on the shipment(s) (e.g., IAW DTR Part IV, Appendix B).

(4) PPSO must enter “Failure to provide corrective action within 30 days from the effective date of a suspension may result in the LOS remaining in effect, until corrective action has been provided and accepted”.

NOTE: See Table 405-1 for an overview of QA actions in DPS. Violations of the TSP’s agreement are tallied by DPS to facilitate the PPSO/SDDC’s visibility of any trends of performance failures. DPS reporting supports monitoring the number of LOWs/LOSs for a

TSP.

b. Regular Suspensions:

(1) A regular suspension may be imposed when a TSP repeatedly violates any provision of its contractual agreement or commits any single violation which merits suspension.

When a regular suspension is issued within DPS, a TSP has 20 days to respond to the notification. The effective date is 21 days after notification. As a guideline, when a

TSP commits the same violation three or more times during a 180 day period, IV-405-4 suspension action will be considered. The following are examples of violations that include some, but not all, reasonable grounds to impose a regular suspension:

(a) Repeated failure to perform a pre-move survey as required.

(b) Repeated failure to meet the RDD entered on the BL.

(2) A PPSO may issue two types of regular suspensions:

(a) BLOC Market Suspension: This suspension is moderately restrictive and issued within DPS (QA Management) for suspension from a market (dHHG, iUB, or iHHG) in which the violations occurred. For example, a suspension as a result of multiple LOWS, etc.

(b) BLOC Suspension: Most restrictive. Suspension, for all markets, from the BLOC where violations occurred. For example, use this type of suspension when issuing a third suspension of any type within 180 days.

NOTE: Channel suspension functionality is reserved solely for SDDC’s internal use.

(3) Suspension Length: Regular suspensions, either BLOC Market or BLOC, are for 30 days.

c. Immediate Suspension:

An immediate suspension is effective on the date the PPSO initiates the suspension (e.g., the system date on which DPS sends the TSP notification).

(1) A PPSO may issue two types of immediate suspensions:

(a) BLOC Market (dHHG or iUB or iHHG) Suspension: Moderately Restrictive.

Suspensions should apply only to the market in which the violation occurred. An immediate suspension may be issued for, but not limited to:

1 Refusal of standard shipment award.

2 Missed pickup – A missed pickup occurs when the TSP does not keep the appointed pickup date and causes severe inconvenience to the customer or fails to meet pickup date without any type of communication with the customer.

3 A DOD customer’s property remaining in a TSP's origin facility on or after the

RDD.

4 TSP personnel smoking in the member/employee’s residence, within 10 feet of member/employee’s personal property, or at any time in the moving van or container.

(b) BLOC Suspension: Most Restrictive. Suspension, for all markets originating from the BLOC where the violation(s) occurred. PPSOs may utilize this as a result of flagrant violations justifying an immediate suspension. An immediate BLOC suspension may be issued for the followings violations, including but not limited to:

1 Turn-back: A turn-back occurs when the TSP notifies the origin PPSO that they are unable to service a shipment previously accepted.

2 TSP personnel being under the influence of, or using, alcohol or unlawful drugs at the DOD customer’s residence.

3 TSP personnel using abusive language, actions, or immoral conduct in the presence of the DOD customer or the DOD customer’s family.

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4 Evidence of fraud and/or theft on the part of the TSP's personnel.

5 Evidence of deliberate damage to the DOD customer’s possessions.

6 Evidence of a TSP or TSP's representative who falsifies, conceals, or covers up by any trick, scheme, or device, a material fact; or makes any false, fictitious, or fraudulent statements, or representation; or makes or uses any false writing or document knowing the same to contain any false, fictitious, or fraudulent statement.

7 Evidence of the TSP or TSP’s representative or subcontractor holding a shipment hostage as forbidden by Section 406 of Title 37, USC, and explained in the TOS, the DP3 International Tender, and/or the DP3 Domestic 400NG

Tariff.

8 Use of a disqualified or revoked TSP in any capacity (s).

9 Use of a non-qualified/ineligible DOD warehouse for storage of a DOD customer’s shipment.

NOTE: An immediate suspension does not require prior issuance of a LOW.

(2) Suspension Length: Immediate suspensions, either BLOC Market or BLOC, are for 30 days.

d. TSP Corrective Action: To be removed from suspension, a TSP must provide proof of corrective action to the PPSO before it can be reinstated. This notice may be sent electronically or via certified mail to the PPSO no later than 15 days following the suspension and the TSP remains in suspension status until such time as acceptable corrective action is completed. If the TSP’s corrective action is deemed to be insufficient, the PPSO must notify the TSP within 15 days of the date of the electronic notification or the postmark on the TSP’s notice of corrective action.

e. Multiple Suspensions, Recommendations, and Double Jeopardy: All suspensions must run consecutively. If a TSP receives a second suspension while under a current suspension, the

TSP remains in a suspended status for a minimum of 30 days before the second suspension begins. A single PPSO may not impose an additional suspension on a single TSP for the same type of violation if the pickup date of the shipment on which the same violation occurs was prior to the date of the original suspension. A PPSO must not suspend a TSP more than once on a single shipment; however, the PPSO must require corrective actions apply to all violations before the TSP is reinstated. Double jeopardy is the act of applying punitive action against a TSP for an offense for which they have already been punished. PPSOs and SDDC can enact punitive action against a TSP based on the TSP’s overall performance. Separate

PPSO and SDDC punitive actions do not constitute double jeopardy. Origin and destination

PPSOs may take punitive actions for separate and distinct violations that occur in each

PPSO’s AOR on the same shipment. If supported by evidence and proof, the separate origin and destination punitive actions do not constitute double jeopardy.

3. SDDC Non-Use Actions: Non-Use: The act of SDDC temporarily suspending a TSP from all or specified parts of the DP3 program. Action may be taken immediately after receipt of information indicating there is a threat to the safety or security of personal property shipments (in transit or storage) or where a TSP fails to meet the requirements necessary to be an approved participant in the DP3 program. When a TSP disputes the accuracy of the information on which non-use is based a TRB hearing will normally be held within 30 days after the TSP is placed in non-use. (SDDC Regulation 15-1). SDDC can initiate non-use of a TSP for a definite or

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indefinite period of time. Non-use of a TSP maybe directed by SDDC, as a result of, but not limited to, the following:

a. Non-payment of debts owed to the government (Federal Claims Collection Act of 1966), or

TSP agents or other entities exposing Government shipments to actual and/or potential delay, frustration, seizure, or detention.

b. Overall performance. (Includes but is not limited to: Not meeting the MPS, repeated violations of its contractual agreement).

c. Failure to meet or maintain the requirements in “TSP Qualification” (SDDC Pamphlet 55-4).

d. Failure to disclose a CFAC relationship.

NOTE 1: Any outstanding claims against a TSP that has been placed in permanent, world-wide non-use status by SDDC can be transferred by the customer to their Service Claims Office and still be eligible for FRV.

NOTE 2: SDDC initiated non-use may include removal from OTO/Volume Move/Special solicitation.

NOTE 3: A TSP failing to disclose CFAC may be removed from the program for a period of up to two years and prosecuted for filing a false official statement in violation of 18 USC 1001.

E. TSP APPEALS

NOTE: Any appeal opens the entire case for re evaluation.

1. Appeals to the PPSO: A TSP has the right to appeal any punitive action imposed by the PPSO.

All appeals must be mailed or e-mailed directly to the PPSO who imposed the punitive action.

The appeal must be dated within 15 days from the punitive action notification date. TSPs who e-mail appeals must provide evidence that the e-mail was sent to a generic e-mail address as listed in the Personal Property Consignment Instruction Guide. TSPs should use e-mail delivery and/or read receipts with the e-mailed appeal. The PPSO must use the date of the mail or e-mail to verify the appeal meets the 15 day appeal period requirement, and review all facts upon receipt.

The TSP's appeal must be factual, fully documented, and provide irrefutable evidence of why the punitive action was erroneous and/or why it should be removed.

NOTE: PPSOs will not accept appeals of scored BVS factors or of BVS scores. Such appeals must be sent directly to SDDC. (See Chapter 403)

2. PPSO Appeal Outcomes: The PPSO must respond to the TSP’s appeal in writing (e.g., e-mail) no later than 15 days from the e-mail date of the appeal or the TSP may be reinstated. The PPSO may use e-mail to respond to all appeals regardless of how they were received. The PPSO must either inform the TSP that the appeal is granted or provide a reason for its denial.

a. For a successful appeal in the TSPs favor.

(1) When a LOW appeal is granted, PPSO must rescind immediately.

(2) When the TSP’s appeal is granted before the regular suspension takes effect (21st day):

The TSP remains on the TDL without having lost any shipments.

(3) For an immediate suspension, when TSP’s appeal is granted in their favor, the TSP will be immediately returned to the TDL.

b. For a unsuccessful appeal (not in the TSPs favor).

(1) When a LOW appeal is denied, LOW will remain in effect.

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(2) If a TSP’s appeal is denied, the regular suspension is effective on the 21st day from notification and remains in effect as discussed in Para. D.2.b(1).

(3) If a TSP’s immediate suspension is denied they will remain in suspension status, until expired or until acceptable corrective action has been received.

3. Appeals to SDDC: If an appeal is denied by the PPSO, the TSP may further appeal to SDDC at sddc.safb.ppperf@us.army.mil. All appeals must come from the responsible TSP identified on the BL and cannot be delegated to any entity, including companies that are in CFAC. This appeal must be initiated no later than 15 days from the date of the PPSOs decision. The appeal must include a copy of the TSP's initial appeal to the PPSO, the PPSO’s response, and any other supporting documents which assists the appellate authority in rendering a decision. SDDC may respond by e-mail/to the TSP and PPSO, regardless of how the appeal was received. If SDDC does not respond within 20 days from the e-mail or postmarked date of the TSP's appeal, the TSP must be reinstated until the TSP is provided a response. The TSP must maintain evidence that the appeal was complete and was sent to SDDC with an accompanying delivery and/or read receipt.

a. SDDC Appeal Outcome: SDDC must respond that the appeal is granted or provide a reason for its denial to the President and CEO of the responsible TSP, as listed on the ETOSSS, and notify the PPSO of the decision via e-mail. SDDC is the final appellate authority for all appeals.

F. PPSO RECOMMENDATION FOR SDDC DISQUALIFICATION/NON-USE

A PPSO may request disqualification/non-use of a TSP by SDDC IAW SDDC Regulation 15-1 which can be found on the SDDC Personal Property web site.

1. Disqualification (Ref. SDDC Reg. 15-1): Only SDDC may disqualify a TSP. Disqualification action may be taken independently by SDDC, or may result from the recommendation of a PPSO.

2. TSP Non-Use: PPSO may recommend non-use of a TSP based on the following:

a. PPSO has issued three suspensions to the same TSP within a 180 day period.

b. TSP shows total disregard for DP3 requirements and continued participation in the program is not in the best interest of the US Government.

G. APPELLATE ADDRESSES

Inquiries and appeals for SDDC must be submitted electronically to sddc.safb.ppperf@us.army.mil.

H. TSP’S PARTICIPATION IN OTOS, SPECIAL SOLICITATIONS, AND VM SHIPMENTS

The OTO, VM, and Special solicitation programs must be monitored under the same rules as all other international and domestic programs. SDDC may remove a TSP from participation in these programs based on violations or a pattern of violations. Removal from participation in these programs may be in conjunction with, or independent of, disqualification from other markets, channels, or codes of service. TSPs participating in the OTO program are required to provide an RDD status report via e-mail, of all shipments missing the RDD. Reports are requested the first work-day of each week to sddc.safb.pperf@us.army.mil. This report must reflect shipment information in the following format:

SCAC OTO

Number

BL# Member's/Employee’s Name/Rank

Pickup Date

RDD Est. Del.

Date

Current Location

Remarks

Failure to do so may result in QA action by SDDC. TSPs that repetitively fail to meet the RDD may be removed from the OTO program, unless failure is through no fault of the TSP.

mailto:sddc.safb.ppperf@us.army.mil mailto:sddc.safb.ppperf@us.army.mil mailto:sddc.safb.pperf@us.army.mil

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I. LIST OF FIGURES AND TABLES

1. Figure 405-1 - DD Form 1814, TSP Warning/Suspension/Reinstatement/Cancellation of

Warning.

2. Figure 405-2 - DD Form 1780, Shipment Evaluation and Inspection Record.

3. Table 405-1- Quality Assurance actions in the DP3.

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Figure 405-1. DD Form 1814, Carrier

Warning/Suspension/Reinstatement/Cancellation of Warning

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Figure 405-2. DD Form 1780, Shipment Evaluation and Inspection Record

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Table 405-1. QA Actions in the DP3

Type PPSO Actions SDDC actions

Letter of Warning (LOW) Can be issued for:

TOS and other shipment violations.

Regular Suspension Issued for/when:

BLOC Market - (Moderately Restrictive) may be issued when a TSP has been issued three or more LOW for the same violation(s) during a 180 day period, or commits any single violation which merits suspension.

BLOC: Issued for third suspension of any type within 180 day period.

Adjudicates appeals when submitted by the TSP.

Immediate Suspension Initiated for/when:

BLOC Market – (Moderately Restrictive) will be issued for Shipment Refusals. May be issued for missed pickup date, shipment remaining at origin past the RDD, etc (see paragraph D.2.c.).

BLOC – (Most Restrictive) is issued for Serious/flagrant violations.

Adjudicates appeals when submitted by the TSP.

Immediate Non-use Can recommend to SDDC the Immediate Non-use of a TSP.

Immediate non-use taken against a TSP when determined that TSP has failed to meet regulatory requirements of the program and or safety/security of Government shipments.

Disqualification Can recommend to SDDC the disqualification of a TSP.

SDDC, after convening a TSP Review Board, may disqualify TSP from the DOD program. IAW SDDC Regulation 15-1.

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