DRAFT_Pricing_White_Paper.pdf

HTC711-19-R-R004

Initial Draft Pricing Concept

DOD is continuing to assess elements of the pricing structure that will be included in the Global Household Goods Contract request for proposal (RFP). The Government has drafted some initial thoughts which are included in this document. As part of market research, we encourage comments on the thoughts below as well as answers to the attached questions.

Glossary

SA – Service Area SS- Service Schedule CWT – hundredweight SIT – storage-in-transit HHG – household goods OCONUS – outside Continental US CONUS – Continental US PPIRA – International Rate Area PPDRA – Domestic Rate Area UB – unaccompanied baggage

Overall

Management Fee (per move) – covers all fees associated with management of moving services, including but not limited to bidding, billing, reporting, customer service, counseling, auditing, and insurance (if not already built into other linehaul rates)

Peak and Non-Peak Separation – DOD is continuing to refine, but will request separate rates for peak season moves (pickup date May 15 – September 30) and non-peak season moves;

pricing structure will remain the same for peak and non-peak moves

Code of Service – DOD is continuing to refine, but proposed rates should encompass all codes of service

Domestic

Baseline Linehaul Rate (per cwt per mile) – covers transportation from point to point

• Offeror will provide one per cwt per mile price per Service Area (SA) per set mileage/distance band o The applicable price for each move will be based on the origin SA with 227 SAs as currently defined in 400NG o Billable mileage will be determined by Zip3 to Zip3 and calculated using Rand McNally guide o Mileage/Distance bands are as follows in miles: 0-250, 250-500, 500-1000, 1000- 1500, 1500-2000, 2000-2500, 2500-3000, 3000-3500, 3500-4000, 4000+

Origin / Destination Fee (per cwt)

• Offeror will propose one per cwt price per SA that will be charged on all shipments based on both origin and destination SA of shipment

• Each per cwt price proposed should include the following two components of origin and destination fee:

o Origin / Destination Service Fee o Origin / Destination Linehaul Factor – takes into account varying transportation costs associated with each SA

Origin Pack Fee (per cwt) –

• Offeror will propose per cwt packing price for each SA

• Price paid will be based on origin SA when packing is requested and includes all packing fees including specialty items and crating of any necessary items.

Destination Unpack Fee (per cwt) –

• Offeror will propose per cwt unpacking price for each SA

• Price paid will be based on destination SA when unpacking (partial or full) is requested and includes all unpacking fees including debris removal, specialty items, and uncrating of any items that have been crated.

Storage Fees

• Storage-in-Transit (SIT) First Day & Warehouse (per cwt) – applied every time SIT is performed with pickup and delivery within 30 miles included, based on origin SA for origin SIT and destination SA for destination SIT

• SIT Additional Days (per cwt) – multiplied by additional number of days in storage, based on origin SA for origin SIT and destination SA for destination SIT

• Non-Temporary Storage (NTS) First Day & Warehouse (per cwt) – applied every time NTS is performed with pickup and delivery within 30 miles included, based on origin SA for origin NTS and destination SA for destination SIT

• NTS Additional Days (per cwt) – multiplied by additional number of days in storage, based on origin SA for origin NTS and destination SA for destination NTS

International

• Household Goods (HHG) Shipping / Linehaul Rate (per cwt) – based on origin / destination pairs, and includes all fees associated with transportation of HHG from point to point

• Outside Continental US (OCONUS) to OCONUS - International Rate Area (PPIRA) origin / destination pair lane structure (typically country to country)

• OCONUS to Continental US (CONUS) – PPIRA to Domestic Rate Area (PPDRA) lane structure (typically country to state)

• CONUS to OCONUS – PPDRA TO PPIRA (typically state to country)

• Unaccompanied Baggage (UB) Single Factor Rate (per cwt) – includes all fees associated with transportation of UB from point to point, excluding SIT

• Origin Pack Fee (per cwt) – all packing fees including specialty items and crating of any necessary items; based on origin PPIRA / PPDRA. The weight of motor passenger vehicles must be deducted from net weight prior to determining packing charges.

• Destination Unpack Fee (per cwt) – all unpacking fees including debris removal, specialty items, and uncrating of any items that have been crated; based on destination PPPIRA / PPDRA. The weight of motor passenger vehicles must be deducted from net weight prior to determining unpacking charges.

Storage Fees

• Storage-in-Transit (SIT) First Day & Warehouse (per cwt) – applied every time SIT is performed with pickup and delivery within 30 miles included, based on origin PPIRA / PPDRA for origin SIT and destination PPIRA / PPDRA for destination SIT

• SIT Additional Days (per cwt) – multiplied by additional number of days in storage, based on origin PPIRA / PPDRA for origin SIT and destination PPIRA / PPDRA for destination SIT

• Non-Temporary Storage (NTS) First Day & Warehouse (per cwt) – applied every time NTS is performed with pickup and delivery within 30 miles included, based on origin PPIRA / PPDRA for origin NTS and destination PPIRA / PPDRA for destination

SIT

• NTS Additional Days (per cwt) – multiplied by additional number of days in storage, based on origin PPIRA / PPDRA for origin NTS and destination PPIRA / PPDRA for destination NTS