GHS_Industry_Day_Ppt.pdf

5/2/2018

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Global Heavyweight Service (GHS) Industry Day

3 May 2018, MITRE Facility

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Opening Remarks

Ms. Tamara Thouvenot Deputy Acquisition Business Operations

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• Opening Remarks

• Introductions

• Requirement

• Acquisition Strategy

• Contract Scope, Pricing Structures, Service Levels

• Recovery Rate, Rate Refresh

• Reporting

• Third Party Payment System (TPPS)

• Milestones

• Review/Answer Questions Submitted by Industry

• Proposal Preparation & Other Tips

Agenda

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• USTRANSCOM Acquisition

– Jill Wodochek, Service Acquisition Manager

– Nicole Swoboda, Less‐Than‐Planeload Branch Chief

– Tricia Weis, Contract Specialist

– MSgt Nathan Filson, Contract Specialist

– Suzanne Mudd‐Yarber, Director of Small Business Programs

– Deborah Long, Small Business Professional

– Deborah Young, Procurement Analyst

• USTRANSCOM Staff Judge Advocate

– Peter Ries, Acquisition Attorney

Introductions

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• USTRANSCOM Strategic Plans, Policy, & Logistics

– Dave Blackford, Commercial Services Branch Chief

– Shannon Fast, Program Manager

– Chris Boros, Program Manager

– Judy Knarian, Data Management Analyst

• Military Surface Deployment Distribution Command (SDDC)

– Dave Richardson, Global Freight Management (GFM) Program Manager

– John Mannino, Transportation Systems Analyst

– Ken Thibodeau, Transportation Systems Analyst

Introductions

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• Procure Domestic Air Tender (DAT) and International Heavyweight Air Tender (IHAT) program services via Federal Acquisition Regulation (FAR) based contracts

• Heavyweight shipment transportation solution, Global Heavyweight Service (GHS)

Requirement

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• On 18 March 2008, the Under Secretary of Defense signed a policy contained in DoD Instruction 4500.57, Transportation and Traffic Management. Section 4.2 states:

– The acquisition of transportation and related services shall be obtained using guidance contained in the Federal Acquisition Regulation (FAR) (Reference (k)) and the DoD FAR Supplement (Reference (l)) unless a deviation is necessary to meet mission needs. Non‐FAR procurement instruments such as tenders of service and bills of lading will not compete with FAR procurements and shall only be used in limited situations when FAR procurements cannot meet customer requirements.

Requirement (continued)

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• Competition limited to Civil Reserve Air Fleet (CRAF) Carriers

• On ramp for future CRAF Carriers

• Multiple Award

• Indefinite Delivery Indefinite Quantity (IDIQ) contracts

• Mandatory use for the Department of Defense

• Open to Federal Agencies

Anticipated Acquisition Strategy

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• Not‐To‐Exceed (NTE) rates with proposed escalation for rate refreshes

• Contract/ordering period: 1 April 2019 through 30 September 2022 (3.5 years)

– Rates provided at proposal submission valid 1 April 2019 – 30 September 2020 (1.5 years)

– Rate refresh effective 1 October 2020 – 30 September 2021

– Rate refresh effective 1 October 2021 – 30 September 2022

Anticipated Acquisition Strategy (continued)

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• Award international service and modify contract approximately one year after award to include domestic service

• Carriers can service domestic, international, or both

• CRAF carriers who do not provide a proposal for original award will not be able to propose on domestic business after it is modified into the GHS contracts

– Carriers intending to service only domestic shipments shall submit a proposal for original award excluding international rates

Anticipated Acquisition Strategy (continued)

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• International heavyweight pickup and delivery service for international shipments over 300 lbs.

– Services shall be provided for the DoD, Cost‐Reimbursable Contractors (CRC), and Federal Agencies

• Service Level: Deferred (D3)

• Required to provide door‐to‐door, time‐definite, pick‐up and delivery service, timely and accurate shipment tracking, government Third Party Payment System (TPPS) participation, customs clearance processing and shipment data reporting.

• Limited AA&E capability; certain low risk, yet sensitive items

– Security Risk Category (SRC) III and IV

International Contract Scope

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• International routes contained in Appendix 1.2, International Air Restricted Routes, will not be included

• CONUS outbound, OCONUS to CONUS, and lateral (OCONUS to OCONUS).

– Pricing structure will remain as it is today in IHAT with the exception of accessorials

• Accessorials

– 520/Oversized: TSPs will be entitled to a surcharge of _% of the per‐pound rate for the costed lane of travel for each oversized piece. Carriers will have the ability to downward adjust the total 520 cost on the shipment.

– Constant Surveillance and Custody Service (CIS) and Escort/Couriers Service (ECR) will be a Not‐To‐Exceed flat per shipment rate.

– Miscellaneous accessorial won’t be included

International Pricing Structure

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• Domestic (CONUS) heavyweight pickup and delivery service for shipments over 150 lbs.

• Service Levels: Priority, Overnight, Second Day, and Deferred as defined in the MFTURP‐1

• Required to provide door‐to‐door, time‐definite, pick‐up and delivery service, timely and accurate shipment tracking, government TPPS participation, and shipment data reporting.

• Domestic voluntary air tenders will go away as this requirement will be absorbed into the GHS contract.

– Negotiated air tenders may be approved by USTC/J4 PMO on a case‐by‐ case basis.

Domestic Contract Scope

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• Domestic pricing will be region‐to‐region (9C to 9C) with NTE rates.

– Carriers will only be able to file a 9C to 9C rate structure

• Standard Point Location Code (SPLC) exceptions will not be allowed under the GHS contract.

– Shipment to be delivered to consignee during consignee’s normal operating hours, as listed in the TFG, on the next business day following the consignors requested pickup date of shipment.

• Existing MFTURP‐1 tender rules, accessorials, and protective services apply

Domestic Pricing Structure

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• Priority Service (SG) Next Available Flight

– Shipment may be required anytime during a 24‐hour period, no specific time for pickup or delivery stated (consignor may insert time requirements on Bill of Lading (BL) in accordance with the TSP quote).

• Overnight Service (D1)

– Shipment to be delivered to consignee during consignee’s normal operating hours, as listed in the Transportation Facilities Guide (TFG), on the next business day following the consignors requested pickup date of shipment.

Domestic Service Levels

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• Second Day Service (D2)

– Shipment to be delivered to consignee during consignee’s normal operating hours, as listed in the TFG, on or before the second business day after consignor requested pickup date of shipment.

• Deferred Service (D3)

– Shipment to be delivered to consignee during consignee’s normal operating hours, as listed in the TFG, on or before the fifth business day after consignor requested pickup date of shipment.

• Carriers do not have to file rates for every service level

Domestic Service Levels (continued)

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• Carriers will be required to provide monthly reporting for the GHS contract. Three separate files for each file type listed below:

– Shipment Information (transactional level data)

– Accounting Information (accessorials)

– Delay Information

• The file format allows the carrier to send multiple contract type records in one file.

– For example, SCAC WXYZ can send Category A (CAT A) and GHS shipment information in the same file rather than sending a separate file for each.

Reporting

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• To determine the semi‐annual CRR owed to the Government the following calculation will be completed:

– Remove the current year’s CRR from the revenue reported (revenue divided by (1+CRR))

– That total will then be multiplied by the CRR .

Cost Recovery Rate (CRR) Calculation

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• Revenue reported=$2,648,315

• CRR=2.2% (.022)

• $2,648,315/1.022=$2,591,306.26

• $2,591,306.26*.022=$57,008.74

• $57,008.74 is the CRR owed to the Government

Cost Recovery Rate (CRR) Calculation (example)

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• To determine the new rate, the current CRR will be removed, then escalation applied, and then the new CRR applied.

• Each calculation will be rounded to the ten‐ thousandths. The final result will be rounded to hundredths.

Rate Refresh Calculation

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• Current rate = $12.17

• Current CRR = 2.2%

• Escalation=4% New CRR=2.4%

• 12.17/1.022=$11.9080

• 11.9080*1.04=$12.3843

• 12.3843*1.024=$12.6815

• New rate =$12.68

Rate Refresh Calculation (example)

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• Payments will be made using TPPS

– Current DoD contract with US Bank (Syncada platform)

– Current contract performance through December 2019

– Source selection for new TPPS contract is in process

– Will not specify platform – require electronic payment processing through standard electronic data interchange (EDI) transactions

– New contract award projected for December 2018, with One year transition period

• Federal Agency Use

– Other Federal agency payment systems/platforms may vary

– Currently several Federal agencies utilize the DoD TPPS contract

– New contract will continue to support Federal Agencies use

– TPPS mandatory for DoD, optional for Federal Agencies

Third Party Payment System

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• Draft PWS to Industry 4 April 2018

• Industry Day 3 May 2018

• Issue RFP June/July 2018

• Proposals Due July/August 2018

• Contract Award Dec 2018/Jan 2019

• Performance Start April 2019

Milestones

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Break

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Review/Answer Questions Submitted by Industry

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• GFM Account

• Reporting‐naming conventions, due dates, and distribution lists

• Cost Recovery Rate (CRR)

• CRAF CAGE code

• CRAF/Agent communication

• CPARS

Proposal Preparation & Other Tips

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• Monitor FedBizOpps.gov

• Submit timely proposal

– FAR 15.208(b)(1)

• Submit accurate proposal

– Proofread

• Ask questions before proposal due date

Proposal Preparation & Other Tips (continued)