Military_Freight_Traffic_Unified_Rules_Publication-1.pdf

Issue Date: 3 June 2013 Effective Date: 31 July 2013

Military Surface Deployment and Distribution Command

1 Soldier Way

Scott Air Force Base, IL 62225

MILITARY SURFACE DEPLOYMENT AND DISTRIBUTION COMMAND

MILITARY FREIGHT TRAFFIC UNIFIED RULES

PUBLICATION-1 (MFTURP-1)

NOTICE: This publication is available digitally on the SDDC website at:

http://www.sddc.army.mil/GCD/default.aspx

This publication establishes policy, prescribes rules, and describes responsibilities for motor, rail, water, pipeline, air and tank-truck Transportation Service Providers (TSP). These rules will assist

TSP in providing safe, reliable and “Best Value” service to Department of Defense (DoD)

Shippers.

POC: SDDC-G9/AMC-A4TC

SDDC MILITARY FREIGHT TRAFFIC UNIFIED RULES PUBLICATION-1

SUMMARY OF CHANGES

Issue Date: 3 June 2013 Effective Date: 31 July 2013

1 Soldier Way

-2-

SUMMARY OF CHANGES FROM PREVIOUS VERSION, DATED 20 August 2012

1. Section A.II.A.2, Basic Transportation Service Provider Requirements (pg. 10) –

There is now an open season for TSP registration.

2. Section A.II.B.5, SDDC or AMC Approved Transportation Service Provider

General Requirements (pg. 11) – TSPs must have performance bonds.

3. Section A.II.B.6.g, SDDC or AMC Approved Transportation Service Provider

General Requirements (pg. 13) – TSPs must have their insurance companies submit proof of insurance when registering.

4. Section A.II.B.10, SDDC or AMC Approved Transportation Service Provider

General Requirements (pg. 14) – TSPs may not solicit with a price brokered shipments on broker or load boards to drivers until the shipment has actually been awarded by the shipper.

5. Section A.IV.3, Completing a SDDC 364-R Tender (pg. 23) – TSP tender and FCRP authority must match.

6. Section A.IV.II, Application of Rate Qualifiers (pg. 26) – Per-container rate qualifier added.

7. Section A.V.B.13, Service Elements and Standards (pg. 62) – Transloading of DoD vehicles is not allowed.

8. Section A.VI.H.1.b.2, Reconsignment or Diversion (pg. 69) – Minimum linehaul charges will be assessed according to the total actual miles travelled in order to get from origin to final destination. This is only a clarification to how Reconsignment or

Diversion is intended to work.

9. Section A.VI.M, Weight Verification (pg. 72) – TSPs will reimburse shipper when reweigh weight is lower than BL weight.

10. Item 13, Sealing of Vehicles (pg. 86) – TSPs authorized to provide TPS must equip each vehicle used to transport AA&E with at least one extra serialized bolt seal.

11. Item 78, TPS Incident Response Requirements (pg. 107) – Addition to clearly define the TSP’s responsibilities during an incident response for TPS cargo.

12. Item 91, Terminal Security Standards for Secure Holding of Arms, Ammunition, and Explosives (AA&E) (pg. 112) – Terminal use restricted to 100 hours.

SUMMARY OF CHANGES

Issue Date: 3 June 2013 Effective Date: 31 July 2013

1 Soldier Way

Scott Air Force Base, IL 62225

-3-

13. Section B.IV.2, Transportation Protective Services (pg. 127) - Provided guidance on submitting one-time-only policy exceptions for TPS shipments.

14. Item 107, Trailer Tracking Service (pg. 133) – Update to procedures for initiating and enabling trailer tracking service. An “M” message for entering a military secure holding area will not be used at origin or destination.

15. Item 111, Satellite Motor Surveillance Service (pg. 141) – An “M” message for entering a military secure holding area will not be used at origin or destination. If the license tag number provided is temporary when registering a truck in DTTS, the permanent tag number must be provided once received.

16. Item 177, Substitution of Freight Cars (pg. 163) – Clearer definition of the substitution requirements for freight cars.

17. Appendix B, Commodity Codes (pg. 248) – Engine commodity codes updated.

TABLE OF CONTENTS

Issue Date: 3 June 2013 Effective Date: 31 July 2013

1 Soldier Way

-4-

SUBJECT SECTION PAGE

Transportation Service Provider General Rules A 5

Motor Transportation Service Provider Rules B 79

Rail Transportation Service Provider Rules C 159

Water Transportation Service Provider Rules D 201

Pipeline Transportation Service Provider Rules E 217

Air Transportation Service Provider Rules F 227

Types of Equipment Codes (Appendix A) G 243

Commodity Codes (Appendix B) H 248

Codes for Accessorial Services (Appendix C) I 257

Definitions (Appendix D) J 260

Explanation of Abbreviations (Appendix E) K 279

Websites (Appendix F) L 281

References (Appendix G) M 282

Transportation Forms/Documentation (Appendix H) N 289

TRANSPORTATION SERVICE PROVIDER GENERAL RULES

SECTION A

1 Soldier Way

Scott Air Force Base, IL 62225

-5-

PARAGRAPH SUBJECT PAGE

I. GENERAL ADMINISTRATIVE INFORMATION

A Purpose 7

B Application 7

C Supersedes and Replaces 7

D Scope 7

E Precedence 8

F Successive Regulations 8 G Definitions 8 H Acronyms 8 I Publication Updates 8

II. BECOMING A DEPARTMENT OF DEFENSE TRANSPORTATION SERVICE

PROVIDER

A Basic Transportation Service Provider Requirements 10

B SDDC or AMC Approved Transportation Service

Provider General Requirements

C Brokers/Freight Forwarders/Logistics Companies 14

D Requirements for Providing Transportation Protective

Services (TPS)

E Transportation Service Provider Brokering and Leasing 18

F Remedies for Non-Compliance 18

III. CONDUCTING BUSINESS WITH DEPARTMENT OF DEFENSE

A Third Party Pay Systems (TPPS) 19

B Electronic Commerce (EC)/Electronic Data Interchange

(EDI)

C Alternative Government Bidding Processes for

Transportation Service Providers

D Alternation of Rates 22

E Transportation Facilities Guide (TFG) 22

IV. COMPLETING A SDDC 364-R TENDER

Completing a SDDC 364-R Tender 23

V. TRANSPORTATION SERVICE PROVIDER PERFORMANCE

A Carrier Performance Program (CPP) 62

B Service Elements and Standards 62

C Transportation Service Provider Notification 63

D Penalties of Service Failures 63 E Transportation Service Provider Appeal 63

1 Soldier Way

Scott Air Force Base, IL 62225

-6-

VI. TERMS AND CONDITIONS APPLICABLE TO ALL MODES

A Advancing Charges (045) 65

B Transportation Protective Services Compatibilities 65

C Assistance by Government Personnel to Transportation

Service Provider

D Non Applicable Charges/Transportation Service Provider

Liability

E Transportation Service Provider Cargo Liability (LIE) 67

F Emergency Mode Substitution 67

G Stop-Off in Transit (SOC) 68

H Reconsignment or Diversion (RCC) 69

I Storage (SRG) 70

J Government Cargo Recovery Effort (GOCARE)

Program for Astray Freight

K Maximum Charge 71

L Weight Limitations 71

M Weight Verification 72

N Fuel Surcharge 73

O Shipments in Continuous Movements 74

P Shipment Status 74

Q Transportation Service Provider Movement of DoD

Vehicles

VII. CLAIMS AND DISPUTES

A Claims 76

B Dispute Resolution 76

VIII. EMERGENCY NOTIFICATION INFORMATION

Table 1 and Table 2 77

1 Soldier Way

Scott Air Force Base, IL 62225

-7-

I. GENERAL ADMINISTRATIVE INFORMATION

A. Purpose

This publication prescribes the procedures and requirements applicable to Transportation Service

Providers (TSP) providing commercial transportation and related services to the Department of

Defense (DoD) and other authorized users of the Defense Transportation System (DTS).

Services contained in this publication will not be interpreted as a guarantee by DoD or other authorized users of the DTS of any particular volume of traffic.

B. Application

Where reference is made to the Military Freight Traffic Unified Rules Publication—1

(MFTURP-1) in a TSP tender or rate agreement, the conditions, requirements, rules and terms and conditions contained in this publication will govern the freight services of the TSP’s tender, and will apply from, to, or between those points specified in the individual tender. This is not to be construed as a setting of rates, rules or charges by DoD. TSP’s tenders cannot be made subject to any other publication for application of the rates or charges therein. If any TSP or bureau published line-haul, rules, terminal services tariff, service guide or other document is shown in a tender, the tender will be rejected and returned to the TSP. The MFTURP can be specifically incorporated in its entirety or in section(s) in Federal Acquisition Regulation contracts or agreements.

C. Supersedes and Replaces

This publication supersedes the AMC Air Freight Traffic Rules Publication No. 5 (AFTRP No.

5) and the previous version of the SDDC Military Freight Traffic Unified Rules Publication—1

(MFTURP-1), dated 26 October 2009.

D. Scope

This publication will not prevent different or additional requirements or terms or conditions to apply for a particular shipment if the TO, the TSP, and the governing command for the movement mode—AMC for domestic air shipments and SDDC for all other modes—agree to the specific change and the change is not prohibited by statute, regulation, executive order, case-law or other applicable legal authority. In those instances, the governing command for the movement mode shall negotiate with the TSP to clarify requirements, rates structure, answer questions and resolve discrepancies. The TSP will submit a negotiated 500,000 series tender.

1. It does not include the transportation of:

a. Shipments moving in courier service

1 Soldier Way

Scott Air Force Base, IL 62225

-8-

b. Perishable Subsistence Shipments (Perishable Subsistence TSP Rate Tenders and

Service Agreements), administered by Defense Supply Center, Philadelphia (DSCP).

c. Federal Acquisition Regulation (FAR) contracts, to include the General Services

Administration (GSA) and Defense Transportation Coordination Initiative (DTCI) contracts, unless the publication is specifically incorporated into the contract or agreement.

2. The words in this agreement shall be construed simply according to their fair and plain meanings, and not strictly for or against either party.

3. If any provision in this publication is capable of two constructions, one of which would make the provision void and the other of which would make the provision valid, then the provision shall have the meaning that makes it valid.

E. Precedence

When rules, charges or other requirements are negotiated (including FAR Based Contracts and Spot Bid) that differ from or conflict with this publication and the intent of the parties is to modify the requirements of this publication as they apply for a particular movement, the negotiated terms will apply to only the specific movement.

F. Successive Regulations

Tariffs, items, notes, or rules referenced in this publication will include supplements and successive issues. If any rule, regulation or provision is cancelled or becomes inapplicable, the last published regulation will govern.

G. Definitions

For definitions of certain terms referenced throughout this publication, see Appendix D.

H. Acronyms

For a listing of commonly used DoD acronyms, see Appendix E.

I. Publication Updates

This publication will be updated quarterly (if needed) and will be available on SDDC’s website:

1 Soldier Way

Scott Air Force Base, IL 62225

-9-

1. The publication can be downloaded and printed from the website. The sponsor and official copy of this publication will be kept on file with SDDC-G9, Transportation Policies and

Procedures Branch.

2. When issues arise pertaining to recommended changes or modifications to rules included in this publication, stakeholders will utilize the SDDC Docketing System, found on the SDDC website, to notify and justify requested changes. These changes will be posted on the SDDC website and, if validated by G9, opened for comment.

3. For additional information on this regulation, direct inquiries to:

SDDC, G9, Strategic Business Office

Domestic Business Division

1 Soldier Way, Building 1900W

Scott AFB, IL 62225

(618) 220-6359 usarmy.scott.sddc.mbx.hq-business-services@mail.mil

For inquiries directly related to Section F, Air Transportation Service Provider Rules, contact:

HQ Air Mobility Command Domestic Air Tender Program Section

402 Scott Drive, Unit 2A2

Scott AFB, IL 62225

(618) 229-4684 org.amca4-67@us.af.mil

4. When this publication is updated, a notice will be posted on the website with all changes identified in the "Change" column of the Table of Contents for each section. An "N" means the item is new, an "R" means the item has been updated, and an "O" means no update."

5. Any change that results in a significant effect, significant cost or administrative impact will be published in the Federal Register in accordance with 41, U.S.C. §418. The effective date of the change will be published on the SDDC’s website and if a significant change, it will be published in the Federal Register. On the effective date, all changes will become effective and bind the TSP. They are incorporated automatically into a TSP’s tender(s) and bills of lading issued from that date forward. TSP not canceling a tender prior to the effective date of the change is considered as concurring and accepting of the change in their tender. This rules publication may be issued with an effective date on one days notice as long as all other provisions of Paragraph I are met.

mailto:org.amca4-67@us.af.mil

1 Soldier Way

Scott Air Force Base, IL 62225

-10-

II. BECOMING A DEPARTMENT OF DEFENSE TRANSPORTATION SERVICE

PROVIDER

A. Basic Transportation Service Provider Requirements

1. This item describes basic requirements a TSP must have in order to become SDDC and/or

AMC (air) approved to transport DoD freight.

a. TSP must have current valid legal operating authority to provide commercial transportation services as offered and as provided to DoD.

b. The common law implied covenant of acting in good faith and fair dealing applies to

TSP seeking or performing business with DoD.

c. Part of the screening process will verify the owner, company, corporate official(s) or anyone in its employ are not prohibited from conducting business with the federal government through the Excluded Parties List System (EPLS) at http://www.epls.gov/.

d. TSP must not be in nonuse or disqualification status to transport DoD freight.

e. TSPs shall at all times comply with all applicable federal statutes, federal regulations and all other applicable law existing at the time of the shipment award.

2. Registration. Registration open season for domestic motor TSPs will run from 1 September through 30 November each year. Registration for all other modes will continue to be accepted (air, barge, ocean, pipeline, and international TSPs) year round. Registration requirements include:

a. Register in the Freight Carrier Registration Program (FCRP) for each mode of service it will use to transport freight (i.e., motor, rail, water, pipeline, tank truck, air) at https://stallion.eta.sddc.army.mil/ccp/jsp/CCPScac.jsp.

b. Company employees must comply with the requirements, contractual terms, conditions and rules of this publication.

c. Comply with the National Debt Reduction Act in order to receive payments for goods and services. Register in the Central Contractor Register (CCR) at http://www.ccr.gov/ or call 1-888-646-9998 or 1-877-252-2700 for further information.

http://www.epls.gov/ https://stallion.eta.sddc.army.mil/ccp/jsp/CCPScac.jsp http://www.ccr.gov/

1 Soldier Way

Scott Air Force Base, IL 62225

-11-

d. Certify that owner(s), company, corporate official(s), agents or employees are not debarred, suspended or disqualified by SDDC/AMC or any outside review agency; or placed in nonuse status by SDDC/AMC at the time of registration.

Notify SDDC electronically (usarmy.scott.sddc.mbx.carrier-registrations@mail.mil) or AMC electronically for air shipments (amc.a4tdr@us.af.mil) of any changes in ownership, affiliations, legal name or other changes affecting FCRP registration within 30 calendar days.

3. Terms of the FCRP will be in effect from the date of approval and can only be terminated after removal from program. Removal from program can be accomplished by various means to include, but not limited to, DoD-wide disqualification, self-termination, suspension or debarment.

B. SDDC or AMC Approved Transportation Service Provider General Requirements

These requirements apply to all TSPs:

1. TSP cannot submit Transportation Protective Service (TPS) tenders for AA&E commodities until they have served DoD in an approved status for 12 continuous months.

Application does not guarantee authorization to provide TPS. Granting of TPS authorization is based on the Government’s best interests.

2. After initial approval, follow-up evaluations will be conducted at any time to confirm continued eligibility as a DoD approved TSP.

3. Valid operating certificates and insurance for its scope of operations will be maintained by

TSP.

4. All TSPs who receive shipment awards shall be required to move and accept cargo under a non-negotiable standardized DoD generated commercial BL that conforms to the Defense

Transportation Regulation (DTR) 4500.9R Part II, Cargo Movement, Chapter 206 and the

U.S. Federal Bill of Lading Act. TSPs will utilize their own commercial BLs as a substitute document only during times when transportation systems are inoperable, during holiday or weekends when there is no access to transportation offices, or upon approval of

SDDC, G9, or AMC/A4TC for domestic air shipments. DoD personnel other than authorized SDDC, or AMC for domestic air shipments, personnel lack actual or apparent authority to execute or otherwise agree to any TSP commercial BL differing from the DoD standard BOL terms.

5. Performance Bonds mailto:amc.a4tdr@us.af.mil

1 Soldier Way

Scott Air Force Base, IL 62225

-12-

a. TSPs are required to submit a performance bond. The performance bond secures performance and fulfillment of TSP obligations to deliver DOD freight. It will cover any instance where a TSP cannot or will not deliver DoD freight tendered to them. This includes default, abandoned shipments, and bankruptcy by the TSP. The bond will not be utilized for operational problems such as late pickup or delivery, excessive transit times, refusals, no shows, improper/inadequate equipment, payment of subcontractors, or claims for lost or damaged cargo. Trust funds and letters of credit are not accepted in lieu of the bond.

b. The amount of the bond is based on the size of the company and the number of states intended to service. Large companies may select 1 state for bond amount of $25,000; 2 to

3 states - $50,000; 4 or more states - $100,000.

c. TSPs registered with the Small Business Administration (SBA), http://www.sba.gov, or http://www.ccr.gov, may select up to 3 states with a performance bond of $25,000, up to

10 states with a performance bond of $50,000 and 11 or more states for $100,000. To utilize these bond amounts, when submitting your bond information, you must provide supporting documentation that you are registered with the SBA.

d. When registering, ensure you select the states for movement in accordance with the appropriate bond amounts. Movements must begin and end in one of the selected states.

e. TSPs that have conducted business in their own name with DOD for 3 or more years will be required to submit a Performance Bond in the amount of 2.5% of their total DOD revenue for the previous 12 months, not to exceed $100,000 and not less than $25,000.

f. Bulk fuel TSPs are required to submit a $25,000 Performance Bond.

g. The bond amount is set at $100,000 for surface freight forwarders, shipper agents, brokers, and air freight forwarders due to the volume of traffic handled by these modes.

h. Local drayage, commercial zone, barge, rail, sealift and pipeline TSPs are exempt from the bond requirements.

i. Performance bonds must remain active at all times; verification of bond must be provided upon SDDC request. Updates and renewals must be forwarded to usarmy.scott.sddc.mbx.carrier-registrations@mail.mil. Failure to maintain and provide renewal information on performance bonds will result in TSP disapproval.

6. Insurance

a. Motor TSP shall at all times maintain minimum public liability insurance as required in 49 CFR, Part 387, for the specific type of motor carriage applicable to the shipment. The applicable schedule of limits for minimum public liability insurance

1 Soldier Way

Scott Air Force Base, IL 62225

-13-are specifically set forth in 49 CFR, Part 387.9 and can be referenced directly at http://edocket.access.gpo.gov/cfr_2003/octqtr/pdf/49cfr387.9.pdf

b. Motor tank truck TSPs are required to maintain $1 million liability for Government freight (see 32 CFR, Part 619.4). Schedule of limits provided in 49 CFR 387.9 at

c. Intrastate TSP will be required to hold public liability insurance equal to interstate

TSP. Proof of insurance will be provided when requested by SDDC.

d. Bulk Fuel TSP must maintain a minimum of $5 million in public liability insurance and $5 million in pollution liability insurance.

e. Rail TSP shall not be required to list any insurance company with SDDC; however, the insurance underwriter must continuously have a policyholder's rating in the Best's

Insurance Guide and be listed in the Fiscal Service Treasury Department Circular 570

(see http://www.fms.treas.gov/c570/c570.html). Rail TSPs shall provide sufficient self-insurance in order to comply with the Carmack Amendment liability standard for loss or damage to government property moving as government traffic.

f. Insurance information will be updated regularly by TSP through DOT’s Licensing and Insurance website at http://www.fmcsa.dot.gov/registration-licensing/registration-licensing.htm. Any change or modification of a TSP’s insurance information shall be promptly reported to SDDC, usarmy.scott.sddc.mbx.carrier-registrations@mail.mil.

g. Proof of minimum cargo insurance of $150,000 for loss and damage of government freight per vehicle and/or $20,000 per vehicle transported (e.g., automobile transporters or vehicles in driveaway service) must be maintained. Perishable goods

TSP will maintain, as a minimum, cargo insurance in the amount of $80,000 and bulk motor petroleum TSP will maintain $25,000. When registering, TSPs must have their insurance company submit their certificate of cargo insurance to usarmy.scott.sddc.mbx.carrier-registrations@mail.mil. Cargo insurance must remain active at all times. Yearly updates to cargo insurance must be provided. Failure to provide updated information or retain active cargo insurance will result in TSP disapproval. Rail

TSP that meet the self-insurance requirements as stated in 49 CFR will not be required to list any insurance company with SDDC.

h. A valid Bodily Injury and Property Damage (BIPD) and cargo insurance policy will be maintained by the TSP at all times while a tender is in effect and must cover all equipment used to transport DoD freight. Insurance policies will include a provision that states insurers will notify SDDC prior to any service changes (i.e., renewals, cancellations) at least 30 days prior to expiration of insurance.

http://www.fms.treas.gov/c570/c570.html http://www.fmcsa.dot.gov/registration-licensing/registration-licensing.htm http://www.fmcsa.dot.gov/registration-licensing/registration-licensing.htm

1 Soldier Way

Scott Air Force Base, IL 62225

-14-

7. Safety.

a. Interstate TSP must maintain a satisfactory safety rating with the Federal Motor

Carrier Safety Administration (FMCSA). Intrastate TSP must maintain a satisfactory safety rating with applicable state agency. Unannounced safety inspections of TSP facilities, terminals, equipment, employees, TSP records and procedures will be conducted by DoD civilian, military personnel, and/or DoD contract employees. In transit surveillance and inspection of vehicles and drivers will be conducted in coordination with local police or other authorities. TSP shall not disclose any information to unauthorized persons concerning the nature, kind, quantity, destination, consignee, or routing of any protected commodities tendered to them.

When requested, proof of compliance with 49 CFR, Parts 390 thru 396 will be provided by TSP.

b. TSP must implement and certify that they have in place company-wide safety management programs that comply with applicable federal, state and local statutes or requirements. Safety programs will be subject to review and evaluation by DoD representatives.

8. Cargo will be delivered in the same condition as received at origin after shipment is loaded, secured, inspected and cleared for movement. Any damage or loss will be the responsibility of the TSP and will be settled promptly (see Section A, VII, Claims). To avoid liability for loss and damage to cargo, a TSP must show that it is free from negligence and that the loss or damage was due to a force majeure situation. Notification of cargo loss, damage, or unusual delay will be made by TSP within 24-hours to the consignor and consignee, except as designated in Section A, VIII, Table 1 and 2. Report information will include origin and destination, BL number, shipping paper information, time and place of occurrence, and other important details. Accident reports submitted to DOT will be provided to SDDC upon request.

9. Trip leasing (see Definitions, Appendix D) permitted only with DoD approved TSP. A copy of the appropriate lease/contract or detailed pick-up sheets (for the specific load and truck) will be included in all leased/contracted vehicles and available for inspection.

Shipper may reject vehicles without stated documentation. A list of DoD approved TSP can be found at www.sddc.army.mil. Failure to follow these requirements can result in TSP suspension or non-use status for the TSP. For further trip-leasing requirements, reference

Section A.II.E, Transportation Service Provider Brokering and Leasing.

10. TSPs may not solicit drivers with a price for specific loads through broker or load boards unless they have already been awarded that freight by a DOD shipper.

C. Brokers/Freight Forwarders/Logistics Companies http://www.sddc.army.mil/

1 Soldier Way

Scott Air Force Base, IL 62225

-15-

This item sets forth the minimum requirements for brokers/surface freight forwarders/logistic companies to maintain their SDDC qualifications to transport DoD freight.

1. Brokers, freight forwarders and logistics companies will maintain a current electronic listing of all subcontracted TSP who may be used to transport DoD freight. Listings will be maintained at the corporate office and available to send via email upon SDDC request and viewed by SDDC personnel only.

2. Brokers, freight forwarders, or logistics companies who submit tenders and receive awards of government traffic agree to assume full liability for a shipment under the Carmack

Amendment, unless the terms and conditions of the BL establish that a SDDC released valuation rate applies to that shipment. Brokers, freight forwarders, or logistics companies must also comply with all applicable provisions of 49 United States Code and 49 Code of

Federal Regulations, including 49 CFR 371 and 387. Brokers shall be required to fully comply with all other requirements that are required of other TSPs under the circumstances applicable to each shipment.

3. Subcontracted TSP will provide sufficient documentation for the shipper to verify and confirm that they have been engaged by the broker, freight forwarder or logistics company named on the BL. TSP contractors shall provide the subcontracted TSP with the required documentation, such as BLs, prior to pick up. In emergencies only, the required information may be emailed and/or faxed to the shipping activity prior to pickup during normal operating hours.

4. Brokers, freight forwarders, or logistics companies who exercise their option to subcontract transportation services to another TSP are advised that the government lacks privities of contract with any subcontracted TSP acting on behalf of its principal. Therefore, the government is not liable contractually to any subcontracted TSP as a matter of law.

Brokers, freight forwarders, or logistics companies will ensure that subcontracted TSP shall not hold DoD freight “hostage” due to failure, inability or refusal of the broker, freight forwarder, or logistics company as a principal to pay sums lawfully owed to their subcontracted TSP(s). Brokers, freight forwarders, or logistics companies are responsible to pay directly any charges or sum certain amounts lawfully owed to their subcontracted TSP.

In no event shall the broker, freight forwarder, or logistics company or any subcontracted

TSP be permitted to exercise any state law lien on government property. Brokers, freight forwarders, or logistics companies shall be held responsible for any consequential damages incurred by the government resulting from a hostage freight situation that results from the failure of a broker, freight forwarder, or logistics company to pay its subcontracted TSP promptly.

5. Brokers, freight forwarders and logistics companies are not authorized to handle or accept any shipments moving with CIS, DDP, PSS, SNS, DCS, and/or 675. Handling and solicitation of DoD sensitive conventional AA&E, classified (SECRET and Confidential), 1 Soldier Way

Scott Air Force Base, IL 62225

-16-sensitive and controlled cryptographic items, Class 1 Division 1.1 thru 1.6, sensitive munitions are also prohibited. Clearing documentation through customs may be permitted.

6. Brokers, freight forwarders, or logistics companies will carry minimum public liability insurance required under 49 CFR, Part 387.

7. Cargo will be delivered in the same condition as received at origin after shipment is loaded, secured, inspected and cleared for movement. Any damage or loss will be the responsibility of the broker, freight forwarder, or logistics company and will be settled promptly (see Section A, VII, Claims). To avoid liability for loss and damage to cargo, a

TSP must show that it is free from negligence and that the loss or damage was due to a force majeure situation. Notification of cargo loss, damage, or unusual delay will be made by the broker, freight forwarder, or logistics company within 24-hours to the consignor and consignee, except as designated in Section A, VIII, Table 1 and 2. Report information will include origin and destination, BL number, shipping paper information, time and place of occurrence, and other important details. Accident reports submitted to DOT will be provided to SDDC upon request.

8. The status of any shipment tendered to a broker, freight forwarder, or logistics company will be provided within 24 hours upon SDDC’s request to the broker, freight forwarder or logistics company’s designated POC.

D. Requirements for Providing Transportation Protective Services (TPS)

This item sets forth the minimum requirements for TSPs transporting DoD TPS shipments.

1. Only DoD approved TSP will be permitted to transport TPS shipments. TSP who have not received prior approval by SDDC for TPS are not authorized to accept delivery of, or otherwise transport TPS cargo.

2. TSP shall demonstrate capability of complying with federal, state, municipal and other local laws and regulations governing safe transportation of AA&E to include 49 CFR, Parts 172, 177 and 382 through 397. Provisions for exempt intracity operations as defined in 49 CFR will not apply to transportation of AA&E.

3. Insurance Requirement:

a. Prior to receiving authorization to transport any quantity of Division 1.1, 1.2, or 1.3 material, as defined in 49 CFR 173.50; any quantity of Division 2.3, Hazard Zone A, as defined in 49 CFR 173.115, Division 6.1, Packing Group I, Hazard Zone A material, as defined in 49 CFR 173.132; or highway route controlled quantities of Class 7 material as defined in 49 CFR 173.403, TSP must demonstrate it has $5 million in public liability insurance. TSP will provide information on their insurance provider to allow

1 Soldier Way

Scott Air Force Base, IL 62225

-17-verification. TSP must maintain the required insurance coverage as long as it has authorization to move these shipments.

b. Prior to receiving authorization to transport any quantity of Class 1, Division 1.4, 1.5, or 1.6 as defined in 49 CFR 173.50, TSP must demonstrate it has $1 million in public liability insurance. TSP will provide information on their insurance provider to allow verification. TSP must maintain the required insurance coverage as long as it has authorization to move these shipments.

4. Brokerage (as defined in 49 CFR, Part 371.2) of AA&E will not be permitted.

5. Trip leasing of any TPS shipments will not be permitted.

6. Safety Requirements for TSPs Providing Dual Driver Protective Service (DDP) and

Protective Security Service (PSS).

a. Motor TSPs holding Facility Clearances and authorized by SDDC to provide DDP or

PSS are required to maintain score averages below the established thresholds for safety performance as tracked by the U.S. Department of Transportation’s (DOT) Federal

Motor Carrier Safety Administration (FMCSA). Safety performance will be evaluated using the FMCSA’s Compliance, Safety, and Accountability (CSA) Program. CSA utilizes seven Behavior Analysis Safety Improvement Categories (BASICs), which include Unsafe Driving, Fatigued Driving (hours of service), Driver Fitness, Controlled

Substances/Alcohol, Vehicle Maintenance, Cargo-Related, and Crash Indicator.

7. Motor TSPs authorized to provide DDP and PSS:

a. All DDP and PSS TSPs will follow the HAZMAT standard. FMCSA requires CSA

TSP scores in Unsafe Driving, Crash Indicator, and Fatigued Driving BASICs to be 60 or lower. The remaining BASICs—Driver Fitness, Controlled Substances/Alcohol, Vehicle Maintenance, and Cargo-Related—require scores of 75 or lower. SDDC will review the BASICs quarterly and will request an explanation from any TSP whose score is above the standard in any BASIC. Failure to provide an adequate explanation or to show improvement may result in the TSP’s placement into non-use status for DDP and PSS shipments.

b. During annual corporate inspections, SDDC or its contractor may examine all of the

TSP’s safety performance history, to include all BASIC scores and DOT incident and enforcement histories.

E. Transportation Service Provider Brokering and Leasing

1 Soldier Way

Scott Air Force Base, IL 62225

-18-

This item describes TSP requirements regarding the brokering and leasing of vehicles to transport DoD freight. This section applies only to those with motor TSP authority.

1. Trip leasing or long-term leasing (see Definitions, Appendix D) of shipments that do not require transportation protective services (TPS) with another TSP/owner-operator is permitted and are subject to conditions in this publication.

2. Trip lease or long-term lease TSPs are not authorized to sublease with other TSPs.

3. Double Brokering of any DoD freight is not permitted.

4. A copy of the appropriate lease/contract and detailed pick-up sheets or emailed load confirmations (for the specific load and truck) will be included in all leased/contracted vehicles and available for inspection. Shipper may reject vehicles without stated documentation.

F. Remedies for Non-Compliance

A TSP, their agent’s, subcontractor or employee’s failure to comply with any of the applicable terms and conditions could be a basis for taking administrative or judicial action against the TSP.

The following is not an all inclusive list of possible actions:

1. Cancellation of a TSP’s approval to move DoD cargo;

2. Placement in nonuse status;

3. Placement disqualified status;

4. Government-wide debarment or suspension from future procurements;

5. Criminal or civil proceedings by the Department of Justice.

1 Soldier Way

Scott Air Force Base, IL 62225

-19-

III. CONDUCTING BUSINESS WITH DEPARTMENT OF DEFENSE

A. Third Party Payment System (TPPS)

1. A requirement to conduct business with DoD as a TSP will be Third Party Payment System

(TPPS) capable. Even if otherwise qualified, TSP that are not TPPS certified will not be eligible to transport DoD freight. TPPS is an electronic freight transaction tracking and payment system.

2. The currently authorized TPPS is Syncada, a service of US Bank. TSP should contact US

Bank at 612-973-6597 or 1-800-417-1844 or on the web at https://network.syncada.com/usbank. Payment of freight services within the United States, Worldwide Express movements, and sealift intermodal container service will be paid through the currently authorized TPPS. A fee is required to participate in the program.

3. Prior to submitting an invoice (e-bill) the TSP must have proof of delivery such as a copy of the bill of lading (a signed bill of lading by the destination government representative). If they only have a verbal confirmation from the driver, then the TSP can call the destination verify delivery occurred and the cargo was delivered in good condition as proof of delivery.

Delivery date entered into the currently authorized TPPS must be the actual date property was delivered to consignee, and the TSP will invoice based on this date, not the contracted delivery date.

4. Rail TSP are required to submit Shipment Pickup Notification to the currently authorized

TPPS after departure of last rail car from origin. Rail TSP are prohibited from filing certification of actual pickup before the shipment is actually delivered to the TSP by the shipper. Filing the Shipment Pickup Notification prior to actual pickup may result in disqualification or disbarment. Additionally, TSP will also submit Shipment Delivery

Notification to the currently authorized TPPS after delivery of last rail car and should be made within three business days after delivery of last rail car.

B. Electronic Commerce (EC)/Electronic Data Interchange (EDI)

TSP will be Electronic Commerce (EC)/Electronic Data Interchange (EDI) program capable and agree to the terms of the EC/EDI Trading Partner Agreement (TPA). The EC/EDI Trading

Partner Guide for Defense Transportation is available on SDDC’s website at http://www.sddc.army.mil/GCD/SiteAssets/TPA_Template%20Nov11.pdf

C. Alternative Government Bidding Processes for Transportation Service Providers

This item describes the alternative methods the government can utilize (other than the tender offer process) for TSP to offer transportation services to DoD and other authorized agencies.

http://www.sddc.army.mil/GCD/SiteAssets/TPA_Template%20Nov11.pdf

1 Soldier Way

-20-

1. Negotiation:

a. TSPs are provided terms and conditions for a movement via a written solicitation. A verbal negotiation may be used in an emergency but must be converted to written form within three (3) business days.

b. When terms and conditions for a shipment are negotiated, the non-alternation of rates concerning that specific shipment shall take precedence over any alternation provision contained within this publication.

c. Negotiations may only be conducted when at least one of the following criteria is met:

1) No voluntary tenders exist on file to satisfy specific requirements of a shipment.

2) Movement occurred without applicable tender on file with SDDC/AMC.

3) Voluntary tenders are insufficient to satisfy requirements.

4) The entire movement exceeds 25 truck/carloads or weighs over 500,000 pounds.

5) The shipment is for overdimensional or overweight freight (to include AA&E shipments).

6) When a service is required for a movement that is not identified in this publication or covered by the TSP’s tender (rates published in TSP’s tariffs and/or other TSP publications will not apply).

d. TSP that submits a bid for a negotiated move is assumed to be ready, willing and able to perform the services as stated in the solicitation. If TSP fails to provide any of the services, whole or in part, stated in the solicitation, they may be subject to immediate non-use for a period of up to 90 days. A subsequent occurrence of failure to provide services stated in the negotiation within a 6-month time frame may be grounds to place the TSP in a nation-wide non-use for up to 90 days.

2. Spot Bid on the Web:

a. “Spot Bid on the Web” is used for one-time only, unique (including overdimensional and overweight, as defined in Section B, Item 119) shipments using any mode of transportation that is adequate to meet the specific requirements of the shipment. The

“spot bid on the web” for this shipment shall remain as the cost on file for the movement for that particular shipment. Spot bids on the Web may be used in the absence of standard tenders to generate a BL, and when utilizing that spot bid on the web, the bid for the total cost of the shipment shall be considered as all-inclusive.

1 Soldier Way

-21-

b. In the case where a “spot bid on the web” is used to procure transportation services, the spot bid on the web rate shall take precedence, as described in subparagraph a, except in circumstances where movements are negotiated movements. Under these circumstances, the spot bid on the web rate shall not take precedence over the negotiated movement, nor shall it remain as the cost on file for the particular shipment at issue in the event that future requirements become necessary. Contact the Domestic Business Development section for further information or assistance concerning the use and application of the spot bid on the web process.

c. Online interactive training module for Spot Bid is provided by the Global Freight

Management (GFM) Help desk. Training is also provided on tender entry.

d. The GFM TSP Training Plan is available on the GFM Distance Learning Program (DLP) web page, by clicking the Training link on https://dragon.eta.sddc.army.mil/etagettingstarted/Support.htm. A valid GFM production or training simulator user ID and password are required before accessing the web page. Instructions for obtaining a user ID and password are also included in the training plan. For more information, contact usarmy.scott.sddc.mbx.omb-for-GFM-training@mail.mil.

e. If a requirement for any additional accessorial/protective service(s) is identified:

1) After solicitation but before pick-up: the solicitation (and award, if applicable) will be canceled, and the shipment resolicited to include the additional services.

2) During/after pick-up: charges for additional requirements will be negotiated by

SDDC or AMC (for air modes K, L, or M).

f. Driveaway and Driveaway/Towaway shipments can be offered under Spot Bid.

g. Shipments will be available to approved TSPs (with logins) for bidding and will remain on the Open Bid list through the bid close date/time. Time to submit bids will remain open for a minimum of four hours. TSP may not change a bid once it has been submitted; however, TSP are permitted to cancel a previous bid and resubmit another bid.

TSP are prohibited from submitting a bid on a closed shipment. Connectivity problems, system problems, or other Internet and Local Area Network (LAN) issues will not be considered an acceptable reason for late bid submissions after a solicitation has closed. A

TSP shall be notified of shipment award after the solicitation has closed.

h. If the event that a specific shipment is canceled, an approved TSP with login capabilities will have the ability to view the canceled shipment list for informational purposes only.

mailto:gfm-training@sddc.army.mil mailto:gfm-training@sddc.army.mil

1 Soldier Way

Scott Air Force Base, IL 62225

-22-

D. Alternation of Rates (Not Applicable to Negotiated Tenders)

1. Tender rates/charges (regardless of rate qualifier) that apply between same points of origin and destination will alternate to produce the lowest charge to DoD.

2. Rates that pertain to a specific commodity, to include DPM commodities 100250 and

100251, will not alternate with FAK rates.

3. In no event shall charges submitted under any tender be in excess of charges based on the

TSP’s lowest rate available to the general public in either common or contract rates, except

500,000 series tenders, or be in excess of charges based on rates otherwise tendered to the

Government by the Contractor for the same type of service.

4. Alternation of rates does not apply between Mode T—Towaway and Mode B—Motor tenders.

E. Transportation Facilities Guide (TFG)

1. TSP will review the TFG for installation policies regarding the minimum requirements for normal operating hours, installation closures, or any other important information. TSP can access the TFG at the ETA website https://eta.sddc.army.mil/.

2. Failure to review the TFG for installation policies and delivery requirements may result in non-payment of detention, demurrage and/or storage charges.

3. Failure to review the TFG for installation operating hours may result in late shipments.

4. TSPs will only be responsible for reviewing the TFG for an installation up to the point of shipment pickup.

https://eta.sddc.army.mil/

1 Soldier Way

Scott Air Force Base, IL 62225

-23-

IV. COMPLETING A SDDC 364-R TENDER

This item governs use and application of the DoD Standard Tender of Freight Services, MT

Form 364, unless otherwise indicated in this publication. This format will be used by all TSP, including surface freight forwarders, water, shipper associations, shipper agents, air TSP, and air freight forwarders, subject to the following exceptions.

This item also includes guidance for TSP that wish to file certain Less-Than-Truckload (LTL) and Truckload (TL) rates previously published in the MCRP No. 100A, Class 100 Rates. The baseline Class 100 rates and minimum charges contained in this publication shall serve as a basis for TSP’s actual rates and charges for DoD shipments in intrastate commerce, and shipments from to and between those points in the CONUS, Alaska and/or Canada specified in the individual TSP tenders. Class 100 Rates may only be used in connection with Rate Qualified

“PQ”, in the DoD tender.

1. Shipments excluded from the Standard Tender format are courier; package express Mode

R; Driveaway, Driveaway/Towaway, unaccompanied baggage to or from Alaska; and privately-owned mobile homes or vehicles.

2. The Standard Tender format shall be used for DoD, DoD-sponsored, and other authorized

DTS users for intrastate and interstate shipments from, to and between CONUS, Canada, Hawaii, Puerto Rico, Alaska and Mexico. The Standard Tender format for domestic air shipments shall be used for DoD, DoD-sponsored, and other authorized DTS users for intrastate and interstate shipments from, to and between CONUS only.

3. TSP tender must match FCRP authority (i.e. if pipeline authority in FCRP is for pipeline, only tenders for pipeline movement may be entered).

4. Tenders submitted in response to SDDC/AMC solicitations, and other negotiated actions will be published in the Standard Tender format, unless otherwise instructed by the terms and conditions specific solicitation or negotiated action.

a. TSPs for Air Mode K, L and M shipments with inquiries concerning application of this

Standard Tender Format should contact Headquarters Air Mobility Command, Air

Transportation Division, Cargo Policy Branch, (HQ AMC/A4TC), telephone (618) 229-

4684.

b. All other modes except those set forth in subparagraph a above who have inquiries concerning application of the Standard Tender format should contact SDDC, telephone

(800) 526-1465.

Part I

1 Soldier Way

Scott Air Force Base, IL 62225

-24-

This Part sets forth the procedures TSP shall follow to complete the SDDC 364-R tender or

Optional Form (OF) 280 tender.

1. Any Tender that omits any required data containing special annotations or exceptions will be considered inapplicable and have no effect to any contract for carriage. Tenders inadvertently accepted and distributed by SDDC or AMC, which are subsequently determined to not meet or comply with the DoD tender filing instructions, or the applicable rules and/or rate publication, shall be subject to immediate removal. The issuing TSP will be advised when tenders are removed under these circumstances.

2. This publication shall be considered the governing publication in Section B of the tender. No other publication for application of rates and charges, unless otherwise noted in this publication, will apply. Inclusion of an inapplicable publication in Section B of the tender shall be deemed non-compliant, and shall be rejected.

3. Publications (and any reissues) listed below will be considered part of this publication, but shall not be specifically listed in Section B of the tender. Any potential conflict between the terms of the publications listed below and this publication shall be resolved in favor of the express terms in this publication.

a. National Motor Freight Classification (NMFC), Tariff Surface Transportation Board

(STB) National Motor Freight (NMF) 100 series published by the National Motor

Freight Traffic Association, Inc., Agent1001, North Fairfax Street, Suite 600, Alexandria, VA 22314; www.nmfta.org; (703) 838-1810 (commodity item numbers, descriptions, packing and packaging only).

b. Defense Table of Distance (DTOD), official mileage guide for DoD.

c. ATA Hazardous Materials Tariff, ICC ATA 111-series, published by the American

Trucking Associations, Agent.

d. Continental Directory of Standard Point Location Codes (SPLC), STB NMF l02-Series, published by the National Motor Freight Traffic Association, Inc., Agent.

e. Directory of Standard Carrier Alpha Codes (SCAC), STB NMF 101-Series, published by the National Motor Freight Traffic Associations, Inc., Agent.

f. Closed Circuit Television (CCTV) Guidelines: Field Manual 3-19.30, Physical Security, Chapter 6, January 2001, published by US Army Publications Distribution Center, Cross

Service, 2800 East Boulevard, Baltimore, MD 21220-2893.

g. Standard Transportation Commodity Code (STCC) Tariff 1-G, STB STCC 6001-C http://www.nmfta.org/

1 Soldier Way

Scott Air Force Base, IL 62225

-25-

h. International Civil Aviation Organization Technical Instructions (ICAO).

i. International Air Transport Association (IATA).

j. Transportation Security Administration Security and Safety Regulations and Guidelines

4. TSP will ensure that all allotted spaces in each of the character fields in the SDDC 364-R tender or Optional Form (OF) 280 tender are filled in properly.

5. SDDC/AMC will apply the mileage computed by the DTOD system for cost evaluation and

TSP selection. Information pertaining to the current version of DTOD can be found at https://dtod.sddc.army.mil/. See Section B, Item 87, for guidance on hazardous miles. See

Section B, Item 119, for guidance regarding practical mileage. Also, see Section B, Part I, for guidance regarding short-line mileage.

6. Use of Uniform Tenders…