Defense Transportation

1
U.S. Transportation Command
Defense Transportation Coordination Initiative
(DTCI) Overview Briefing LTC Leslie
Sullivan Dec 06
2
Mission
Partner with a world-class transportation
services provider (3PL) to manage CONUS
distribution of material for selected Service and
Defense Logistics Agency (DLA) shipping
locations. Leverage the winning coordinators
existing commercial business with his best
commercial practices and our large volume of DOD
freight to achieve efficiencies in distribution
and associated cost savings.
3
Why are we doing this?

• Over 600 CONUS shipping locations
• More receiving locations
• No enterprise-wide vision, collaboration or
  direction
• 3PLs are particularly effective in the
  commercial world
• So why not DoD?
• Our SE region pilot program gave OSD
  confidence to press ahead
• We can garner efficiencies as well as cost
  savings.

• Improve operational effectiveness
• Support strong small business participation
• Improve customer confidence
• Reduce cycle times (defined as time from request
  for movement to delivery)
• Increase efficiencies
• Develop a partnership to integrate commercial
  best practices
• Enable process improvements
• Achieve cost savings
• Integrate seamlessly with the DoD Strategic
  Distribution System
• Protect operational capability like a DoD
  critical infrastructure asset

DTCI Goals
4
Guidance and Oversight

• Office of the Secretary of Defense (OSD)
• Transportation Policy is strong lead
• Acquisition, General Counsel, Comptroller,
• others provide support
• Distribution governance
• Steering Group
• Senior Task Force
• Executive Board
• Combatant Commanders Council
• Other groups as required
• USTRANSCOM
• DTCI Project Manager reports directly to
  Commander
• Acquisition provides acquisition policy and
  contracting support
• Services, Defense Logistics Agency, and
  Supporting Agencies

5
Industry Players

• Dozens of participants in pre-proposal
  discussions
• Trade Associations
• American Trucking Association (ATA)
• National Defense Transportation Association
  (NDTA)
• Transportation Intermediaries Association (TIA)
• Several others.

6
DTCI Site Activation
Phase I
7
Functional Concept (PWS requirements)

• DTCI coordinator will
• Arrange, coordinate, monitor, and control freight
  shipments from notification to delivery
• Manage and optimize enterprise operations while
  providing exception reporting
• Process timely payments to subcontractors and
  carriers for services provided
• Accept, process and facilitate claims resulting
  from loss or damage
• Manage carrier quality and performance
• Assist in the ID and delivery of astray freight
• Provide In-Transit Visibility (ITV) to government
  systems and real-time access to shipment info
• Perform shipment optimization, consolidation and
  routing services
• Provide management info and accounting reports
• Collaboratively develop, recommend and implement
  process improvements

8
Exclusions

• OCONUS freight movements (Theater controlled)
• Vendor shipments
• OCONUS unit moves
• Universal service ocean carrier contracts
• Household goods to include DPM moves
• DOD organic equipment moves
• On-site local drayage contracts
• Bulk and Missile fuels
• Small package contracts
• Privately owned vehicles
• Sensitive and/or classified shipments
• Arms, ammunition and explosives
• Cash/Collect on delivery shipments

9
Performance Thresholds

• On-time pickup 98
• On-time delivery 98
• Loss and damage-free shipments 98
• Process loss and damage claims in a timely manner
  99 within 120 days
• IT systems available for use 99
• Small business subcontracting 20 first year

10
How will we measure performance?

• Quality Assurance Surveillance Plan (QASP)
• Performance Objectives and Thresholds
• Surveillance responsibilities of the government
• Procedures for evaluating performance and
  resolving issues
• Program Management Review (PMR)
• Comparison of contractors monthly report against
  Transportation Officer (TO) shipper system/hard
  copy data
• QA Representative on site forwards to DTCI PMO
  quarterly
• If sub-standard performance, a of management
  services will be reduced
• Random Inspections
• Web-based Process Change Request System /
  Customer Feedback

11
Exclusions

• Background

12
Market Research Results

• Adequate competition exists
• Bundling supported by Business Case Analysis --
• savings in excess of 15
• Hybrid contract-type necessary
• Transportation based on cost-reimbursement
  provisions
• Management services based on fixed-price
  provisions
• Long-term relationship preferred
• Include provisions for price adjustments due to
  surge
• So the Acquisition Strategy and RFP were
  constructed with these results in mind

13
Source Selection Approach

• Source selection approach
• Best value basis of award
• All offers evaluated against evaluation criteria
• Competitive range (down select) for purposes of
  efficiency
• Full debriefings to offerors throughout source
  selection process
• Source Selection Advisory Council (SESs, Cols,
  GS-15s)
• Several pre-solicitation meetings
• Several meetings during the source selection
• SSA will make the award decision
• Source Selection Evaluation Team
• 17 full-time USTRANSCOM personnel (15 from DTCI
  PMO)
• 7 full-time Service/Agency personnel here TDY
• Many other SMEs on-board for help as required

14
Transition Planning Team

• Full-time PMO and DDC membership Services
• provide additional support full-time change
• management expert on board -- Army O-5 lead
• Completed milestones (since 15 May)
• Developed Change Management and Communications
  Plans
• Developed Plan of Action and Milestones (POAM)
• Tri-fold, posters, voice-over Powerpoint brief,
  video in works.
• As-is and To-be process flows for shippers
• Way-ahead
• Taking the show on the road
• Perform ROC (Rehearsal of Concept) Drills
• Deliver the message to our stakeholders
• Integrate with DTCI Coordinator after contract
  award
• Develop training plans
• Capture lessons learned from each site
  implementation
• Ensure feedback loops are in place

15
Why Change Management ?

• SE prototype findings
• There was no real plan with a transition team
  that included DoD and contractor personnel.
  there was inadequate identification of
  transition problems or issues.
• Lack of trust by DoD personnel was an important
  issue that could not be overcome to ensure an
  adequate test.
• The DoD transportation system has not
  adequately incorporated new processes, systems
  and technologies over the past 30 years.

Team Composition Primary LTC Stan Smith
(PMO) Thom Bettinger (DDC) Mary Jo Kruse
(LMI) Subject Matter Experts DDC Ops Service
Reps Transition Team Contracting

• Finalize DTCI CM Plan
• Tailor CM Plan to DDC
• Review existing DTCI communications products
  (video, briefings, elevator speech, web sites,
  etc.) for applicability for DDC
• Determine appropriate vehicles/resources for
  executing comm plan
• Lay out specific messages and activities
• Prepare to revisit all with winning DTCI
  coordinator
• Execute site visits, ROC drills, etc.

16
IT Strategy

• Coordinator will conform with defined DoD IT
  architecture
• Coordinator to demonstrate ability to interface
  with DoD systems before execution starts
• Provides IT tools required to execute task
• Provides interface with Trans Ops government
  financial systems
• Coordinator will provide real time web access
• Electronic Data Interchange for data transfers
• Protect DoD data as sensitive, unclassified
  information
• Share performance data and measures
  electronically with all stakeholders
• Identify/recommend changes ensure compatibility

17
Mission (Why were doing this.)
Bottom Line with conservative assumptions,
analysis indicates DoD can save nearly 60M a
year
Estimated annual DoD CONUS freight
transportation spend
Annual realistic projected savings on Phase
I-III 58M
Potential savings
Total analyzed CONUS freight
100 sites Analyzed in the BCA
77M
260M
560M
Approx. 900M
SOURCE APRIL 2006 BCA UNINFLATED
18
DTCI PMO Division Chiefs
[phone]
Program Manager Col Jim Lovell Administration
Ms. Chris Bennett Contracting Ms. Cathy
Simpson Financial Ms. Carol
Manfucci Functional Ms. Pat
Kuntz Information Technology MAJ Kathy
Zirolli Integration LTC Leslie
Sullivan Transition Planning LTC Stan Smith

• http//dtci.transcom.mil/

As of 1 Sep 06