Industry_Day_8_Oct_14_final.pdf

DoD Freight Transportation ServicesDoD Freight Transportation Services

(DFTS)

dIndustry Day 8 Oct 2014

Together, we deliver.

Agenda

• Introductions

• Acquisition Process

• Small Business

• Draft PWS

• RFI Responses

Introductions

• Ms Gail Jorgenson Director of Acquisition (USTC)• Ms. Gail Jorgenson, Director of Acquisition (USTC)

• RADM David Baucom Director J4/5 (USTC)• RADM David Baucom, Director J4/5 (USTC)

M Willi B dd D t t th C d• Mr. William Budden, Deputy to the Commander

(SDDC)

• DLA Technical Representatives

Acquisition Process

• DOD Source Selection Procedures mandated for negotiated, competitive acquisitions utilizing Federal Acquisition Regulation Part 15 (Contracting by Negotiations)

• Price or cost quality of product or service and past• Price or cost, quality of product or service and past performance shall be addressed in every source selection.

• “Best Value” in a competitive source selection:

– Assesses all evaluation factors – not just cost

– Reviews the relationship of evaluation factors to one another & their affect on cost

– Can result in paying more than the minimum price for a product or service in return for more than the minimum required quality and performance

– Can range from Lowest Price Technically Acceptable (LPTA) to Expanded

T d ff (ETO)

Tradeoff (ETO)

Greater Relative Importance of Cost or Price Lesser

Lesser Importance of Non‐Cost Factors Greater

FAR Part 15.101, FAR Subpart 15.3, as supplemented

Tradeoff Source Selection ProcessLowest Price Technically

Lesser Importance of Non Cost Factors Greater described in DoD Source Selection Procedures

Oh! The possibilities!

Acceptable (LPTA) Source Selection Process described in DoD Source Selection Procedures, Technical

Mix‐n‐match tradeoffs:

Appendix A Technical Risk Past Performance Cost or Price

Cost or PriceCost or Price NonNon––Cost FactorsCost Factors

Requirements Development

‐ Includes Market Research

Acquisition Planning

‐ Includes Market Research

Contract Closeout CustomersCustomers, Program Management, Operations, Acquisition, Management, Budget, l

Solicitation Development

Contract Performance

Finance, Legal, Contractors

Source Selection & Contract Award

Industry Engagement

Possible Reasons:

Identify Industry Trends– Identify Industry Trends

– Current market conditions

– Commercial standardsCommercial standards

– Degree of competition available

– Small Business or Large Business

Goal:

– Ensure Government’s requirement is clear

– Determine the most suitable approach to acquire the required services required services

Solicitation

• Notices related to a draft PWS, draft solicitation, solicitation, Q&As, and contract award notice will be posted on the Federal Business Opportunity website: www.fedbizopps.gov

S li i i i l d ll i f i i d f l• Solicitation includes all information required for proposal submission and the evaluation criteria to be used

• After release of the solicitation, the Contracting Officer (CO) is the single point of contact for any exchange with potential offerors

– CO for this effort is Mrs. Denise E. Cameron

– E‐mail: denise.e.cameron.civ@mail.mil phone (618)220‐7031

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Remaining Acquisition Steps

• Acquisition Strategy/Source Selection Plan

• Draft Solicitation

• OSD mandated reviews

• Receive and Evaluate Proposals

• Competitive Range

• Discussions (Negotiations)• Discussions (Negotiations)

• Source Selection Decision

• Award ContractAward Contract

• Implementation/Performance Start

Small BusinessSmall Business

DFTS Draft PWS

• Transportation Coordination Services

• Freight All Kinds shipments at various origins and destinations i CONUSin CONUS

– Currently 28 DLA shipping locations, with potential for expansion to non‐DLA shipping locations

• Some FMS and vendor shipments OCONUS

• LTL, TL, scheduled truck routes, rail, and air

• Equipment Pools required at certain sites to accommodate shipment volumes and limited space

– Equipment is loaded based on shipment destination so GovernmentEquipment is loaded based on shipment destination so Government requires advance knowledge of the carrier(s) supporting a specific destination location/state/region to ensure correct equipment is loaded

– Replacement equipment brought in when shipment is picked up

P l d f LTL TL d h d l d t k– Pools used for LTL, TL and scheduled truck

• TL, LTL, and Air freight are primarily live load g p y

• Site Unique requirements will provide helpful information that is not in the Transportation Facility Guide

Shi Sit d V d Pi k L ti th l ti• Shipper Sites and Vendor Pickup Locations; other locations may require pickup/delivery

• Information Technology

– Offeror’s TMS must be able to send and receive EDI transactions to DSS, VSM d GFMVSM and GFM

– Cybersecurity requirements may be reduced depending on the Offeror’s approach to accomplishing these connections

RFI Responses

• Draft PWS issued with a Request for Information for industry comments

• Key Points from Responses Customs Brokerage– Customs Brokerage

– FMS

– Proof of Delivery (PODS)

– Key Performance Indicators (KPIs)

– Double Brokering

– Fuel Surchargeg

RFI Responses/Govt Feedback

• Customs Brokerageg

– Vendors shipping to US from Canada

– US Govt sends freight and parts to Canadian Govt and contractors

Need for customs to other locations for Foreign Military Sales (FMS)– Need for customs to other locations for Foreign Military Sales (FMS)

• FMS

– DLA currently ships FMS via its shipping system (DSS)

– Processes outside DLA’s shipping system need further development

OCONUS other than Canada– OCONUS other than Canada

• Proof of Deliveryy

– Removed requirement to have receiver’s printed name; still require signature, date, and time

• Time needed to verify on time appointments

• KPIs

– On‐time pick‐up and delivery KPIs reflect the Govt need Pi k d d li ll i t t– Pick up and delivery are equally important

• Fuel Surchargeg

– Separate Accessorial for ground shipments

– Calculated by SDDC

– Air shipment rates should include

• Facility Clearance

– Not required, but background investigations are required f t i i di id l ith t G t IT tfor certain individuals with access to Government IT systems or sensitive data

• Fuel Surchargeg

– Separate Accessorial for ground shipments

– Calculated by SDDC

– Air shipment rates should include

• Facility Clearance

– Not required, but background investigations are required f t i i di id l ith t G t IT tfor certain individuals with access to Government IT systems or sensitive data

Summary

• Acquire transportation coordination services that will provide i i k d d li f D D f i h i l ion‐time pickup and delivery of DoD freight at various locations across the country

• Goal is to be as commercial as possible considering the unique circumstances of the DoD

– Quick response timesQ p

– Limited space/high volume

– Multiple shipping systems

• Industry input helps develop the requirement to align the Governments practices/processes with commercial practices

Questions?

Backup slides

DFTS Draft PWS Discussion Points

• Tiered Pricing

• Proposed methods for tiered pricing based on pickup response times, for example:

4 hour carrier commitment/8 hour shipment pickup– 4 hour carrier commitment/8 hour shipment pickup

– 12 hour carrier commitment/24 hour shipment pickup

– 24 hour carrier commitment/48 hour shipment pickup

• Proposed methods for discounts based on shipment volumes above expected workload