# Presentation: 135208

## Defense Transportation 

**Defense Transportation **
**Coordination Initiative (DTCI)**
**Overview Briefing**
**LTC Leslie Sullivan**
**Dec 06**
** **

**U.S. Transportation Command**

## 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 coordinator’s existing commercial business with his “best commercial practices” and our large volume of DOD freight to achieve efficiencies in distribution and associated cost savings.

## 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**

## 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 Commander’s 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

## 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....

## DTCI Site Activation

- Phase I

## 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

## 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

- 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

## 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

## 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**

## Background

## 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

## 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

## 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

## 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....

## 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

## Mission (Why we’re doing this....)

- Estimated
- annual DoD
- CONUS freight
- transportation
- spend

- Approx.
- $900M

- Total analyzed
- CONUS freight

- $560M

- 100+ sites
- Analyzed in the BCA

-  $260M

- Potential
-  savings

- $77M

- Annual “realistic”
- projected savings
- on Phase I-III
**       ****$58M**

- Bottom Line – with conservative assumptions,
- analysis indicates DoD can save nearly $60M a year

**SOURCE:  APRIL 2006 **
**BCA UNINFLATED $**

## DTCI PMO Division Chiefs

- _http://dtci.transcom.mil/_

**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**

**(618) 622-2212**

- As of: 1 Sep 06