FINAL_Industry_Day_Agenda_Feb_15x.pdf

UNCLASSIFIED

Welcome to the USC‐8 Industry Day

19 Feb 2015

Together, we deliver.

UNCLASSIFIEDTCAQ‐I

Opening Remarks

J. R. Oliver Contracting Officer Chief, Sealift Branch

USC‐8 Industry Day Agenda

Time Subject Lead 8:30‐09:00 Check‐in/Sign‐in All

09:00‐09:10 Opening Comments TCAQ

09:10‐09:30 Overview of Key Requirements G385y q

09:30‐10:30 Invoicing and Payment G8

10:30‐11:30 Container Issues G36 (Detention, Purchase, Free Time, DWT)

11:30‐11:40 Break All

11:40‐12:30 Liability Issues TCJA/J3 (COGSA, CARMACK, General Average)

12:30‐13:30 Lunch All

USC‐8 Industry Day Agenda

Time Subject Lead 13:30‐14:30 Ordering Procedures G384

14:30‐15:30 Incorporating RDC G385

15:30‐15:40 Break All

15:40‐16:30 Milestone Reviews/Wrap Up TCAQ

USC-8 Industry Day Overview of Key Requirements

Pay on Delivery (vice Pay on Lift).

Discontinue Syncada for IBS Bookings – no 3rd party payment y g p y p y Streamline invoicing for auditability IAW SDDC procedures

• Accept rates for scheduled liner service only.

• Other / larger moves spot bid (OTO)Other / larger moves spot bid (OTO)

• Full implementation subject to auto-feed of vessel schedules Reduce number of rates (currently ~100K rates across both contracts) to those actually neededto those actually needed

• Not soliciting rates for CLINs with negligible volume

• Not accepting rates if no schedule

• Container rate same regardless of ownership or booking category• Container rate same, regardless of ownership or booking category

(exception for non-seaworthy) Rate Structure Changes to enable lower rates

• For Liner Terms (BB) split East Coast into Northeast & Southeast

• For Liner Terms (BB), split East Coast into Northeast & Southeast

Overview of Key Requirements

Include RDC locations (AK/HI/PR = Domestic OCONUS) in USC-8, resulting in a single worldwide ocean contract (exception: GTMOresulting in a single worldwide ocean contract (exception: GTMO, which will continue as a single-award contract) Stipulate buy-out/max cap formula on non-exigency containers Stand-alone annex for exigency/contingency provisionsg y g y p Clarify eligibility for award Clarify RDD by balancing competing needs Clearly identify cases when carrier MUST accept a cargo bookingy y p g g Carrier Performance (Best Value) to influence Market Share on per-booking basis

• Limited use status for serious performance failures

Invoicing and Payment

Provisional Pay Invoice Submission Invoice Submission

• Invoices for IBS related charges to Treasury IPP

• Invoices for Non IBS related charges to SDDC PortalInvoices for Non IBS related charges to SDDC Portal

• Invoices for request for Equitable Adjustment to KO Provisions of Prompt Pay Act apply (invoices incur interest after 30 days) Proposal to suspend the provisions of cash management on behalf of the government to facilitate quicker paymenton behalf of the government to facilitate quicker payment (Payments disbursed two business days after entitlement action is complete)

Container Issues

Container leasing Shipment of GFCs Free time: how much for where, when it runs Carrier notification for pickup Purchase

• CAP / detention limit Exigency Non-exigency O ti l P h ( i )• Optional Purchase (exigency)

• Lost, damaged, impractical to return

• Container purchase prices; CAP/detention limit Di G i h d Diego Garcia way ahead Additional related areas: KFF, IPP, DRAP, stopoffs, driver wait time, staging, chassis, flatracks, live load/unload vs drop & pick, PODs, damage claims, compensable delay, Att 8/PV, futile trip

Together, we deliver.

g , p y, , p

Break

Liability Issues

Lunch

Ordering Procedures

Ordering Process for Bookings

• The best value analysis will consider the following factors and sub-The best value analysis will consider the following factors and sub factors:

Can meet or exceed RDD Can provide all required services and accessorial and has awarded ratesCan provide all required services and accessorial and has awarded rates for same Has required equipment Has an approved Prime Vendor Agreement (if required)Has an approved Prime Vendor Agreement (if required) Meets international, national, local and DoD statutory and regulatory requirements for the commodity, hazard and security classification, category or threatg y

Carrier is not in nonuse limited use status (unless vessel has a higher flag priority)

Ordering Procedures

U.S. Flag and Voluntary Intermodal Sealift Agreement (VISA) Priorities

• Vessels with a higher U.S. Flag priority and (if equal U.S. Flag i iti ) hi h VISA i itpriorities) a higher VISA priority.

Best Value Determination

• If more than one contractor meets the technical requirements above with vessels that have equal flag and VISA priorities bookings shallwith vessels that have equal flag and VISA priorities, bookings shall normally (subject to Booking Office determination of a need for exception) be awarded based on the lowest Best Value Number (BVN), which is the lowest numerical value

Cost

• Total dollar cost of the task order/booking (to include accessorial) divided by the Composite Score

• Composite score is the numerical average of carrier’s worldwide performance score and carrier’s performance score for the lane in question

USC-RDC Merger

Include RDC locations (AK/HI/PR = Domestic OCONUS) in USC-8, resulting in a single worldwide ocean contract g

• exception: GTMO, which will continue as a single-award contract

Creates concept of a single worldwide DOD ocean contract

• One worldwide rate guide

• Single listing of city groups eliminating inconsistencies• Single listing of city groups, eliminating inconsistencies

Will contain safeguards against violation of the Jones Act (RDC routes) Will maintain necessary location-specific provisions (e.g. Alaska) Allows for more seamless bookings

• Reduces “handoff” issues for cargo moving from one area to other Many carriers participate in both contracts More efficient contract administration for both Govt & Carriers More efficient IT administration for both Govt & Carriers More efficient IT administration for both Govt & Carriers More efficient rate administration -- eliminates thousands of duplicate rates Responds to carrier request for annual rate refresh for Jones Act routes Avoids confusion re domestic OCONUS (AK/HI/PR in RDC-6, Guam/USVI in

Together, we deliver.

Avoids confusion re domestic OCONUS (AK/HI/PR in RDC 6, Guam/USVI in

USC-7)

Break

Milestones Milestone Proposed Milestones

Together, we deliver.

TCAQ‐I

USC‐8 Contract Start 01‐Nov‐15

Closing Remarks