GSA Transportation Service Providers (TSP) Meeting

2200 Crystal Drive, L1303

Crystal City, VA

August 1, 2007

**[Meeting Facilitator -- Mary Anne Sykes, GSA Center for Transportation
Management]{.underline}**

Mary Anne opened the meeting and welcomed the attendees.

**[Opening Remarks -- Tauna Delmonico, Director, GSA Center for
Transportation Management]{.underline}**

Tauna welcomed the attendees and mentioned that the meeting time was
different from in the past. Normally, Transportation Service Providers
(TSP) Partnership meetings are in the morning. Please provide input to
Mary Anne Sykes to let her know your preference for morning or afternoon
meetings.

Tom Swartz (UPS) suggested opening up the TSP and agency meetings to
both groups. For example, agencies could attend the TSP meeting but only
as listeners and visa versa. Tauna clarified that there are Executive
Directors for both the Freight committee and Household Goods Relocation
committee. The directors represent the federal agencies and have
standing invitations to attend the TSP meetings. Tauna will consider
this new format and discuss this subject at the next Combined Federal
Civilian Agencies Freight and Household Goods Relocation Committee
Meeting. Tauna also mentioned that Freight committee needs a new
Executive Director since Rocky Loewner retired from FEMA.

**[Program Financial Overview: Angela Jones, GSA Center for
Transportation Management]{.underline}**

Angela provided a broad financial overview of GSA's transportation
programs. In 2006, the household goods programs' revenue was
approximately 2.3 million dollars. The revenue covers direct costs such
as salaries, travel, training, and indirect costs. The total cost of
operations is evenly split among direct and indirect costs.

A TSP had suggested removing the fuel surcharge from the Industrial
Funding Fee (IFF) calculation since it is a pass through charge and
negatively affects the van operators. Based on 2006 figures, GSA would
lose approximately \$100,000 of total revenue if fuel surcharges were
eliminated from the IFF.

The HHG program has not experience any real growth recently. Any
increases have been related to fuel surcharges. GSA has been reducing
costs through a decrease in its staff. If the fuel surcharge is
eliminated from the IFF, then an alternative solution needs to be
implemented to ensure GSA's revenue remains the same. Suggestions from
TSPs are welcome and should be forwarded to Kim Chancellor
(kim.chancellor@gsa.gov).

**[IFF Fuel Surcharge Options: Kim Chancellor, GSA Center for
Transportation Management]{.underline}**

Currently, IFF is only collected on household goods shipments. POV and
UAB are excluded. Kim discussed three possible options to retain GSA's
revenue if the fuel surcharge is not included in the IFF.

1\) Collect IFF on all three elements (HHG, POV and UAB)

2)  Increase the IFF percentage for HHG shipments (domestic IFF is 2.5%)

3)  Leave the IFF calculation as is

**Question**: Has AMSA given any guidance?

**Answer**: No.

**Question**: Has the carrier industry provided any input?

**Answer**: No, UniGroup raised this issue during last year's pre-bid
meeting in Kansas City and suggested it as an agenda topic for this
meeting. Under the old method of calculating fuel surcharge (based on
weight), rates could be adjusted to accommodate changes in fuel prices.
The new method of calculating fuel surcharge is mileage based which does
not allow the TSP to factor in the IFF. UniGroup recommends charging IFF
on discountable charges so rate adjustments may be made as necessary.

Chuck White (HHGFAA) said that he would like to obtain his members
opinions and gather other suggestions. Kim will develop a formal request
for information that the associations may forward to their members.

**Question**: How has the new fuel surcharge calculation affected GSA's
revenue? **Answer**: Angela stated that the program is receiving
approximately \$80K to \$100K in additional revenue from the fuel
surcharge. According to the Program Management Office, that amount will
be cut in half with the new fuel surcharge calculation.

Mark Greene, Arpin's representative, said it seems fair to charge IFF on
all shipments (HHG, POV and UAB) elements but the change would result in
more work for TSPs.

Tauna clarified that GSA's Freight program charge 4% IFF and is the only
GSA program that collects IFF from agencies. GSA will incorporate the OF
280 paper tenders in the Transportation Management Services Solution
(TMSS), which will require the TSPs to pay the IFF thus making the IFF
invisible to agencies. GSA will keep TSPs informed of this transition to
ensure IFF is received.

Email any comments to Kim Chancellor (<kim.chancellor@gsa.gov>) or Brian
Kellhofer (brian.kellhofer@gsa.gov).

**[Program Updates: Kim Chancellor, GSA Center for Transportation
Management]{.underline}**

**Alaskan Transit Times:** The mileage and number of days for Alaskan
transit has increased. HTOS Section 12 will be updated (see
[attachment](../HTOSSection12RevisedAK.pdf)).

**\
FTP Server:** In June 2007, the FTP server ceased operation. A new
procedure for filing rates has been developed and is being tested now.
In the next few weeks, each TSP will be given instructions how to use
the new system, JUpload.

**HHG Request for Offers:** GSA will extend current rates until Dec 31,
2007. The next HHG RFO rate filing window is October and new rates will
be in effect January 2008. The rate extension allows for program changes
resulting from the Surface Transportation Board's decision.

Other changes to implement with the Jan 2008 rates:

-   International baseline rates will be increased by 2%

-   Ivory Coast will be deleted since it is the same as Cote D'Ivore.

-   The trigger price for fuel will increase from \$1.30 to \$1.95 which
    is similar to commercial prices. The first \$1.95 should be
    incorporated in filed rates.

> **Question**: When commercial rates increase, normally baseline rates
> also increase. Will the 415G baseline rates also increase?
>
> **Answer**: GSA will review. Brian Kellhofer is meeting with AMSA in
> the next few weeks and will discuss.

-   The factor for the miles per gallon used will increase from 4.5
    to 5. This calculation takes the billable miles and divides it by
    5.0 to identify the number of gallons of fuel used.

**[Surface Transportation Board Update: Donna Graige, GSA Center for
Transportation Management Services; William (Bill) Pugh, National Motor
Freight Traffic Association (NMFTA),Tom Swartz, UPS Freight, and Chuck
White, Household Goods Forwarders Association of America]{.underline}**

Donna (GSA) discussed the recent Surface Transportation Board (STB)
decision to eliminate the carrier bureaus. The original implementation
date of Sept 4, 2007 is extended to Jan 1, 2008. After the STB's
decision effective date, bureaus cannot act collectively for rate
filing. GSA's Freight program is based on its Standard Tender of Service
(STOS) and will not be affected. However, GSA's household goods program
uses both the commercial tariff 400N (schedules) or the 415G. Both of
these tariffs are copyrighted by AMSA. GSA will send a letter to AMSA to
request continued use of the 415G. The provisions would initially remain
the same but later be customized to meet GSA's specific requirements.

Bill Pugh, Executive Director and General Counsel for NMFTA gave an
[overview](../NMFTABillPugh20070801.pdf) of his organization's response
to the STB's decision. He mentioned that collective ratemaking and
classification have been in existence since the 1800s. Freight is
classified according to transportability, size, weight, hazmat
classification, etc. Classifications eased the process of rate filing
although they are not required.

After the STB's decision goes into effect, bureaus cannot act
collectively for rate filing which would allow carriers to charge any
rates. STB had previously declared that rate classifications would not
be affected by the STB decision, but that changed.

NMFTA requested a 14-month extension from the date of decision. Carriers
are encouraged to contact the Department of Justice (DoJ) regarding
changes to classifications. Their response should state that
classification of shipments is in their best interest. NMFTA asked the
US Court of Appeals to review the STB decision and it will seek a
business review letter from the DoJ. The Traffic World
[article](../W_7_27_07_001.pdf), Trusting Classification, and the
[Impact](../5a_Open_Letter.pdf) of the STB's Decision on National Motor
Freight Classification (NMFC) were distributed as part of this
discussion.

Tom Swartz (UPS Freight) mentioned that freight carriers are not
required to be NMFC members. Most Truckload carriers are probably not
members since transportation is charged per truck, not based on the
classification of the freight. Many larger carriers publish their own
rates and are not affected by the STB decision. Baseline rates used the
Freight All Kinds (FAK), which is supposed to represent the majority of
freight. Classification is not tied to ratemaking.

Chuck White (HHGFAA) clarified that his association focuses primarily on
international business but many of its members also handle domestic
shipments. Many HHG carriers are members of AMSA. Although Chuck was not
aware of AMSA's specific actions, he thought the 415G would probably
continue to exist. The STB's decision may set precedence for the
government to set rates.

**Question:** Is the 415G a product of collective rate making? Yes.

Kathy Hansen, Prudential stated that many companies already have their
own rates. AMSA was in the process of replacing the 400N with the 600N,
which many service providers were looking to adopt, but with the STB's
decision, the status of the 600N is unclear. Service providers are
looking at creative solutions and as the industry transitions the new
environment will be confusing to agencies.

[Other]{.underline}

**GSA AMSA Forum:** AMSA has suggested combining the GSA and AMSA
Household Goods and Freight Forum with the AMSA annual convention (April
21-25, 2008 in Orlando, FL). It is the same time as the GSA Expo. There
will be some overlap of sessions during AMSA's meeting and the Forum but
the majority will be separate. GSA is in the process of obtaining
approval to partner for this event.

A suggestion was made to have the forum on October. HHG busy season
would be finished and carriers could review lessons learned from the
summer. This is not a good time for federal attendees since federal
budgets are not normally finalized so travel is limited.

**Questions**: Will carriers have to register for the whole event? Small
carrier representatives have a hard time being out of the office for a
long time.

How will AMSA price the booths for the event(s)?

**Answer:** AMSA coordinates these functions. Please contact AMSA's
representatives: Norma Gyovai (<ngyovai@moving.org>) or Madelaine Morgan
(mmorgan@moving.org) for details.

**Question:** What impact will this timeframe have on attendees/booth
exhibitors that normally attend both events?

**Answer**: Mary Anne contacted those TSPs exhibiting at both events
last and the consensus indicates minimal impact. Anyone else desiring to
comment should contact Mary Anne Sykes at <maryanne.sykes@gsa.gov>.

**GSA Schedules:** GSA's Center for Transportation Management is
reviewing its programs to expand the schedules to meet agency needs. One
schedule being assessed is the logistics solution schedule. The
Department of Transportation maintains a contract for FEMA
transportation, which will expire Dec 31, 2007. GSA is developing a
statement of work to meet those requirements

If TSPs need assistance with the Relocation schedule, please contact
<onthego@gsa.gov>. If an answer if not received, contact Tauna Delmonico
(703) 675-2779.

The next How to Prepare a Quality Offer class will be held on Oct 29,
2007. GSA will attempt to arrange an abbreviated class for the next TSP
meeting.

The next Transportation Service Providers Partnership Meeting will be
November 6, 2007.

**ATTENDEES**

  ----------------------------------- -----------------------------------
  Lelan Karras                        ABF Freight

  Steve Akley                         Allegiant Move Management

  Linda Nguyen                        American Moving and Storage Assn

  Bill Wanamaker                      American Trucking Associations

  Barbara Ayers                       Apple Transfer Inc.

  Mark Greene                         Arpin

  Rick Philips                        Atlas Van Lines

  Denise Hartman                      CRS

  Kelly Hermening                     D&D LTR Consultants and Emergency
                                      Services

  Rudy Ohterson                       Federal Moving and Storage

  Darin Ayers                         FedEx Custom Critical

  Rosemarie Shell                     FedEx Custom Critical

  Allen Brown                         Fikes Truck Line

  Noreen Bania                        General Services Administration

  Kim Chancellor                      General Services Administration

  Jim Stroup                          General Services Administration

  Mary Anne Sykes                     General Services Administration

  Angela Jones                        General Services Administration

  Raymond Price                       General Services Administration

  Lynn Ju                             General Services Administration

  Tim Burke                           General Services Administration

  Donna Graige                        General Services Administration

  Pat LaPella                         General Services Administration

  Tauna Delmonico                     General Services Administration

  Robyn Solder                        General Services Administration

  Charles White                       Household Goods Forwarders
                                      Association of America

  Keavin Hill                         Hill Farms Trucking

  Michael Berry                       Hilldrup

  Katie Northrop                      JK Moving

  Sheila Leeds                        Landstar

  Heather Pound                       Landstar

  Al Tuttle                           Moving Masters Inc.

  William Pugh                        National Motor Freight Traffic
                                      Association

  Joe Molter                          New Century Transportation

  Michael Stopka                      Panther Expedited Services, Inc.

  Cathy Smith Bardon                  Panther Expedited Services, Inc.

  Belinda Porter                      Paxton

  Allyson Nordstrom -- Geraghty       Paxton

  Kathy Hansen                        Prudential

  Liz Lasater                         Red Arrow

  Steven Garth                        Roadway

  Paul Dixon                          South Hills Movers

  Dave Mocny                          Stevens Worldwide Van Lines

  Joe Poole                           Suddath

  Sonja Pullaro                       UniGroup, Inc.

  Tom Swartz                          UPS Freight

  Harry Geib                          UPS Freight

  Denise Bailey                       Yellow Transportation

  Scott Kidd                          Yellow Transportation
  ----------------------------------- -----------------------------------