DFTS_Solicitation_Q_and_As__224-226.pdf

Question Response 224 Reference: DFTS PWS App O, as revised by Amendment 8 and

USTRANSCOM Q&As 129, 130, 179, 198, 200 and 222.

In DFTS PWS App O, as revised by Amendment 8, USTRANSCOM defines the “time definite services level (TDSL)” as “Service level based on mode neutrality in order to move freight with delivery constraints less than the standard transit time service beginning as early as next day service, by close of business.” This definition is precise and clean. Specifically, it applies to any service applicable to less than the standard transmit time.

In response to Question 222, which asked for confirmation of a definition of “expedited LTL,” USTRANSCOM replied:

USTRANSCOM defines expedited LTL as an LTL shipment that requires delivery faster than the required Standard Transit Time according to the Defense Transportation Regulation, DoD Standard Transit Times, within legal parameters, such as speed, Hours of Service, etc.

That definition of expedited LTL overlaps with the time definite service level definition and the following questions are necessary to clarify the contractor’s responsibilities—

a) Pursuant to PWS 1.3.3, “[t]he Contractor shall select the mode of transportation (TL, LTL, Scheduled, Specialized, Time-Definite Service, or Rail) to provide the most efficient and effective transportation services to meet the MDD.” However, only the Government may request the EXP accessorial.

Given that the contractor selects the mode pursuant to PWS 1.3.3., is the Government only able to apply the EXP accessorial to LTL once the contractor has selected LTL?

b) Is the Government only able to apply the EXP accessorial to TL once the contractor has selected TL?

a) No, there may be reasons that EXP are selected with the 219 shipment request. For example, for a typical 4-day LTL shipment, it may be necessary to deliver in the morning rather than by the close of business day.

Additionally, the contractor selects the mode based on the requested MDD in EDI 219. If the contractor believes that the MDD is unrealistic based upon its available capabilities (e.g.

TDSL, one day LTL service level, etc), the contractor may challenge the MDD with the transportation officer (TO). At that time, the transportation officer should be provided his/her options under the contract (e.g. expedited service). It's the TO's decision to accept a late delivery (exception reported) or add the expedited accessorial to the shipment by resubmitting the EDI 219.

b) No, as stated above there may be reasons that EXP are selected with the 219 shipment request.

If EXP is required to support a TL movement and it was not transmitted via the EDI 219, the contractor should challenge the MDD as unrealistic and either request an EXP be transmitted or an exception to the delivery requirement as passed.

225 Reference: Reference DFTS PWS App O, as amended by Amendment 8 and

USTRANSCOM Q&A 200

In Question 200, which was asked prior to Amendment 7, the offeror inquired:

“[i]f the shipper does not request LTL EXP in the 219, must the contractor consider the cost of LTL EXP in determining the ‘lowest cost option available to satisfy the requirement?’” USTRANSCOM replied, “The contractor should always consider the lowest cost option available to satisfy the requirement. If the shipper believes EXP is warranted, they should consult the Transportation Officer.”

If the contractor is obligated to factor in the EXP accessorial into its determination of the “lowest cost option available to satisfy the requirement,” offerors will need a more precise definition of LTL, which now overlaps with the definition of time definite service mode.

Specifically, DFTS PWS App O defines “Less-Load [sic] Rates” as “Rates or classes that apply to a quantity of freight less than the truckload weight specified for the same article.”

In response to a question asking for a definition of TL and how the definition of TL differs from that of LTL, USTRANSCOM responded:

a-b. The definition of truckload and less-than-truckload comes directly from the Defense Transportation Regulation Less Truckload: A quantity of cargo less than that required for the application of a truckload rate. Also called "less than truckload." Truckload: A quantity of cargo required for the application of a truckload rate. Also, a motor vehicle loaded to its carrying capacity.

In other words, under this definition, LTL is all motor vehicle service other than TL.

a-d) Time Definite Service Level (TDSL) capability was requested by industry to be included in the PWS. The government does not accept that TDSL and EXP LTL are one in the same. The government recognizes both TDSL and expedited LTL as commercial practices. The government finds that TDSL shipments normally offered for air freight movement and the contractor may choose to swap motor-for-air. LTL shipments are offerored as ground shipments under DFTS. At all times, the contractor should determine the appropriate mode required to meet the MDD, whichever is the lower cost.

226 Reference: PWS Appendix B, Accessorial Rate Table, as revised by Amendment 10

USTRANSCOM, through Amendment 10, removed the HAZ accessorial for TL/Scheduled/Specialized and LTL.

a) The HAZ accessorial compensates a class of drivers who have incurred additional charges resulting from their HAZ certifications, increased insurance coverage and registration with DOT as HAZ providers. The removal of this accessorial represents a departure from commercial practice, impacts capacity negatively and will require bidders to allocate the aforementioned costs associated with hazardous shipments across all rates, which likely will result in higher costs to the Government and taxpayers. Will USTRANSCOM reinstate the HAZ accessorial for TL/Scheduled/Specialized and LTL?

a) USTRANSCOM will not reinstate the HAZ accessorial for TL/Scheduled/Specialized and LTL. The government's determination to remove the HAZ accessorial was based on the determination that it could not implemented in a manner beneficial to the government.

If there were no EXP category of LTL rates, it would be clear how the premium motor vehicle service performed pursuant to the time definite service level differed from TL or LTL—the premium substituted motor-for-air service under TDSL would be any shipment that requires delivery faster than the required Standard Transit Time according to the Defense Transportation Regulation, DoD Standard Transit Times. As currently drafted, the Solicitation creates two, overlapping modes. The following questions are intended to ensure that TDSL services are not conflated with EXP LTL:

a) In the commercial industry, LTL refers to a budget service in which multiple customers share space for small shipments and the truck may make several stops and unpack or repack goods. In contrast, motor carriers that specialize in substituted motor-for-air service provide a premium service that generally will cost more than 20% of LTL. Is it USTRANSCOM’s position that substituted motor-for-air service is the same as EXP LTL?

b) If USTRANSCOM agrees with the commercial industry that substituted motor-for-air service is different from LTL, how does EXP LTL differ from substituted motor-for-air service performed in the time definite service level mode?

c) How does EXP TL differ from substituted motor-for-air service performed in the time definite service level mode?

d) If USTRANSCOM believes that substituted motor-for-air service is the same as EXP LTL, how is EXP LTL different than the TDSL mode?