Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

Non-Temporary Storage - American Moving _ Storage Association by zhangyun

VIEWS: 33 PAGES: 60

									      Military Surface Deployment
       And Distribution Command
                           (SDDC)

Defense Personal Property System
                           (DPS)



                Phase III CONOPS
     Volume I: Non-Temporary Storage
                             Version 5.5
                        2 September 2005
                                                                                                                 Phase III Non-Temporary Storage
                                                                                                                Concept of Operations Version 5.5




                                                              TABLE OF CONTENTS


Executive Summary .....................................................................................................................................................4
Chapter 1:      Overview ............................................................................................................................................7
1.1    Background ......................................................................................................................................................8
1.2    Objective...........................................................................................................................................................9
1.3    Scope................................................................................................................................................................9
1.4    Document Organization ..................................................................................................................................9
Chapter 2:      Non-Temporary Storage As-Is Environment .................................................................................11
2.1    As-Is Transportation Service Provider Requirements.................................................................................11
2.1.1 As-Is TSP Qualifications................................................................................................................................11
2.1.2 As-Is Warehouse Inspection Process ..........................................................................................................12
2.1.3 As-Is Rate Filing Process ..............................................................................................................................12
2.2    As-Is Shipment Planning and Distribution ...................................................................................................16
2.2.1 As-Is Handle-In Processes ...........................................................................................................................16
2.2.2 As-Is Handle-Out Processes ........................................................................................................................16
2.3    As-Is Invoicing and Payment ........................................................................................................................20
2.3.1 As-Is Dispute Process ...................................................................................................................................20
2.4    As-Is Liability & Claims ..................................................................................................................................23
2.4.1 As-Is Liability Process ...................................................................................................................................23
2.4.2 As-Is Claims Process ....................................................................................................................................23
2.5    As-Is Customer Satisfaction Surveys ...........................................................................................................25
2.6    As-Is Summary ..............................................................................................................................................26
Chapter 3:      Non-Temporary Storage To-Be Environment ...............................................................................28
3.1    To-Be Transportation Service Provider Requirements ...............................................................................29
3.1.1 To-Be TSP Qualifications ..............................................................................................................................29
3.1.2 To-Be Warehouse Inspection Process ........................................................................................................31
3.1.3 To-Be Rate Filing Process ............................................................................................................................31
3.2    To-Be Shipment Planning and Distribution ..................................................................................................34
3.2.1 To-Be Handle-In Processes ..........................................................................................................................34
3.2.2 To-Be Handle-Out Processes.......................................................................................................................34
3.3    To-Be Invoicing and Payment.......................................................................................................................38
3.3.1 To-Be Dispute Process .................................................................................................................................39
3.4    To-Be Liability & Claims ................................................................................................................................43
3.4.1 To-Be Liability Process ..................................................................................................................................44
3.4.2 To-Be Claims Process...................................................................................................................................44
3.5    To-Be Customer Satisfaction Surveys .........................................................................................................52
3.6    To-Be Summary.............................................................................................................................................54
Appendix A:     Glossary of Terms ...........................................................................................................................56




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                                                         Volume I: Non-Temporary Storage | 1
                                                                                              Phase III Non-Temporary Storage
                                                                                             Concept of Operations Version 5.5

                                                   List of Figures and Tables
Table ES-1: Comparison of As-Is and To-Be for NTS .................................................................................. 7
Figure 2.1-1: Current TSP Qualifications ................................................................................................... 13
Figure 2.2-1: Current Shipping Planning and Distribution .......................................................................... 18
Figure 2.3-1: Current Invoicing, Payment and Dispute ............................................................................... 21
Figure 2.4-1: Current Liability and Claims................................................................................................... 24
Figure 2.6-1: Context Diagram for the As-Is NTS Environment................................................................. 26
Figure 3.1-1: To-Be TSP Qualifications ...................................................................................................... 32
Figure 3.2-1: To-Be Shipping Planning and Distribution ............................................................................. 35
Figure 3.3-1: To-Be Invoicing, Payment and Dispute ................................................................................. 40
Figure 3.4-1: To-Be Liability and Claims - Handle In and Handle Out by Same NTS TSP ........................ 46
Figure 3.4-2: To-Be Liability and Claims - NTS TSP and Line Haul Carrier(s) ........................................... 50
Table 3.5-1: Phase III Handle-in and Handle-out Customer Satisfaction Surveys (CSS) .......................... 54
Figure 3.6-1: Context Diagram for the To-Be NTS Environment ............................................................... 55




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                                     Volume I: Non-Temporary Storage | 2
                                                      Phase III Non-Temporary Storage
                                                     Concept of Operations Version 5.5

                          THIS PAGE INTENTIONALLY LEFT BLANK




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc         Volume I: Non-Temporary Storage | 3
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5


Executive Summary
The Department of Defense (DoD), through the US Transportation Command (USTRANSCOM)
and the Military Surface Deployment and Distribution Command (SDDC), is modernizing the
process of moving Service Members’ (including civilians’ and their families’) household goods
(HHG) through the development of a new program called Families First. The Personal Property
Division, Program Development Branch of SDDC’s Personal Property Directorate is responsible
for this overall reengineering effort. This program will significantly improve the quality of life
for the Service Members, civilians and their families by providing Transportation Service
Providers (TSPs) based on best value and mandating full replacement value liability coverage by
all TSPs.

The Families First program is being implemented in three phases:
    Phase I involved implementing the Centralized Web Application (CWA) add-on for the
      Transportation Operational Personal Property Standard System (TOPS), the use of
      PowerTrack for payment and the use of the Customer Satisfaction Survey (CSS). The
      use of CWA/PowerTrack began in late March 2004 and the CSS began in June 2004.
    Phase II provides the majority of service improvements that directly impact Service
      Members, civilians and their families. Some elements of Phase II include: full
      replacement value (FRV) liability by TSPs, web-based counseling, best value distribution
      (BVD), direct communications between customer and TSP, on-line claims filing directly
      with the TSP and the web based system to support Families First, the Defense Personal
      Property System (DPS). The contract for DPS began in May 2004. Phase II is currently
      under development, with a rollout expected by February 2006.
    Phase III is expected to rollout in October 2006. It will include the automation of the
      Direct Procurement Method/Local Moves (DPM), Non-temporary Storage (NTS) and
      Intra-Theater Tenders (ITT) moves.

Phase I achieved significant improvement in key business processes with e-commerce billing and
payment through the use of US Bank’s PowerTrack system. In addition, the launch of CSS in
Phase I laid the groundwork for the deployment of BVD in Phase II.

The cornerstone of Families First is the development of the DPS to distribute and manage HHG
shipments better than the existing costly legacy systems. Rollout of Phase II will achieve full
deployment of DPS functionalities that are core to the re-engineered personal property program.

Phase III will bring the more complex types of personal property movement into the DPS
environment allowing customers to realize the full benefits of Families First, regardless of the
type of personal property service.

Non-Temporary Storage As-Is Environment
In the current environment, contractors, Regional Storage Management Offices (RSMO) and the
Personal Property Shipping Office (PPSO) follow a relatively manual procedure to qualify a
contractor to become a Transportation Service Provider (TSP) for the DoD Personal Property
Program. The lengthy process of qualifying the TSP and approval of the TSP’s rates does not
guarantee that DoD will receive quality services for its personnel because shipments are

Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                     Volume I: Non-Temporary Storage | 4
                                                                Phase III Non-Temporary Storage
                                                               Concept of Operations Version 5.5

distributed to TSPs on a cost versus performance basis. Shipments are given to the available
low-cost, qualified storage facility, regardless of its location.
Current invoice/payment and disputes processes are handled locally, manually and at times,
inefficiently. Management of the program suffers from the lack of automation, visibility, and
efficiency.
For liability and claims, under the current program, personnel receive only the depreciated value
of lost, destroyed or damaged items or they may elect to purchase additional coverage with the
TSP’s insurance carrier for their personal property movement. Existing practices to recover
losses are lengthy as the TSP has 120 days in which to settle claims and the recovered rates do
not always cover the losses due to the low maximum limit on the TSPs’ liability.

The As-Is environment is characterized by fragmented, time-consuming and manually intensive
processes that are no longer efficient for the volume of this type of personal property movement.

Non-Temporary Storage To-Be Environment
In the To-Be environment, DPS will provide flexibility, visibility, automation and improvement
to NTS. TSPs can access DPS to apply for qualification, automating many of the former manual
processes.

NTS and Local Moves qualification process will emulate the current NTS qualification
process. The qualification application will occur in DPS with RSMOs responsible for some of
the management and approval functions.

The Schedule of Services and Rates for Intra-City & Intra-Area Moves contained in the
Tender of Service will be modified to include non-temporary storage and local moves services.

TSPs qualified to participate in the NTS and Local Moves programs will file rates for their
applicable services using the Schedule of Services and Rates for Intra-City & Intra-Area
Moves. This Schedule will be developed into the NTS/Local Moves rates filing module.

Qualified TSPs will be awarded shipments based on their performance rating, calculated from
customer feedback, claims information and their submitted rates. For the Non-Temporary
Storage program, the performance score assigned to each TSP is calculated using Best Value
Score (BVS). The BVS incorporates the following:
     Customer Satisfaction Survey Score (25%),
     Warehouse Inspection (25%),
     Rates (30%), and
     Claims (20%)


At shipment pick up and again, at shipment delivery, the customer completes an appropriate CSS
feeding to the TSP’s Customer Satisfaction Score.

TSPs are required to provide FRV coverage at no additional cost to the customers. Customers
can file claims directly with the TSP through DPS. When claims are filed in DPS, the following
specific information are tracked to determine the TSP’s Claims Score: the number of days to

Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                    Volume I: Non-Temporary Storage | 5
                                                                        Phase III Non-Temporary Storage
                                                                       Concept of Operations Version 5.5

   settle claims; timely payment of settlement; percentage of over-aged claims; and success in
   diverting claims from Military Services.

   Rate filing in the new environment involves the TSP submitting their rates for personal property
   services in DPS.

   Invoicing/payments will be automated through DPS and PowerTrack providing wider flexibility
   and visibility to all stakeholders of the NTS program. TSPs submit their service invoices in
   PowerTrack; PPSOs certifies TSP invoices in DPS; and disputes are handled in DPS. Certified
   invoices are routed electronically to PowerTrack for processing and payment. PowerTrack
   provides monthly invoices electronically to Certifying Officers/PPSOs; certification can be
   achieved online and/or by paper; files are routed electronically to DFAS for processing and
   payment to US Bank.

   Comparison of the As-Is and To-Be
   The table below provides an at-a-glance comparison of the current and the new (DPS)
   environment. Highlighted are benefits that can be derived from implementation of Families First
   Phase III.

Process             Current NTS Environment                DPS Environment


TSP Qualification   Manual submission of financial         Fully automated, centralized and streamlined
                    statement, documentation and           processes that allow TSP applicants to quickly and
                    communications                         easily submit information.
                                                           Benefits: more rapid response time for TSP
                                                           applicants; and drastic reduction in RSMO
                                                           administrative duties
TSP Qualification   Manual analysis of financial           Fully automated processes in reviewing and
Review &            statements, review of documentation approving financial applications and required
Approval            and communications                     documentations
                                                           Benefits: error reduction; rapid communications;
                                                           frees up RSMO resources
Rate Filings        Manual-intensive multi-step process    Fully automated process requiring only the TSP to
                    involving manual re-entry of submitted access DPS to file rates; review and acceptance will
                    rates (on a paper document) into an    be done by DPS; any communication is achieved
                    Excel spreadsheet for analysis, review electronically. Benefits: error reduction; rapid
                    and approval followed by manual data communications; frees up RSMO resources
                    entry into TOPS centralized database

TOS            Manual process involving hard copy          Fully automated process where the TOS resides in
Administration documentation mailing and idle              DPS
and Management waiting time between RSMOs and              Benefits: rapid communications and responses;
               TSPs for completion of TOS package          frees up RSMO resources

Shipment            Mostly manual with limited use of      Fully automated shipment distribution processes;
Distribution        TOPS to generate forms.                TSPs generate forms from DPS; and
                                                           communications are achieved in DPS
                                                           Benefits: allows TSPs flexibility to manage their
                                                           availability to take on NTS shipments; fair, quality-
                                                           based distribution of shipments; shipment visibility

   Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                          Volume I: Non-Temporary Storage | 6
                                                                             Phase III Non-Temporary Storage
                                                                            Concept of Operations Version 5.5

Process              Current NTS Environment                    DPS Environment


                                                        throughout entire process is achieved; rapid
                                                        communications and responses; significantly frees
                                                        up RSMO resources
Invoicing/Payment Manually-intensive multi-step process Fully automated invoicing and payment processes;
                  requiring extensive RSMO resources; TSPs submit their invoices in PowerTrack and have
                  TSP payments are not prompt due to visibility of the status of invoice payments; electronic
                  manual processes such as the mailing communications allow rapid responses
                  of invoices to DFAS                   Benefits: the automated billing and payment
                                                        process of DPS successfully brought numerous
                                                        internal control measures to the program that was
                                                        lacking or deficient in manual process; significant
                                                        reductions in prompt payment interest payable by
                                                        the Government; more rapids payments to TSPs;
                                                        significantly frees up RSMO and TSP resources
                                                        involved in the invoicing process.
Liability            Limited to depreciated value of            Full replacement value up to $4.00 times the net
                     lost/damaged items                         shipment weight (maximum of $50,000)
Claims               Mostly manual process that is costly       Fully automated allowing direct claims filing and
                     for the Government. Customers can          settlement between the customer and the TSP; new
                     file directly with the TSP but elect not   business rules impose timelines restrictions in which
                     to because the MCO can settle claims       TSPs must settle with the customer facilitating rapid
                     faster and pay as much and often           results
                     more than the carrier.                     Benefits: allows TSPs and customers to work
                                                                directly to achieve settlement before involving the
                                                                Services’ resources; rapid communications and
                                                                responses; significantly frees up Services and
                                                                Government resources


                              Table ES-1: Comparison of As-Is and To-Be for NTS



    This CONOPS provides the concept for implementing Non Temporary Storage (NTS) in the
    DPS environment achieving the objectives of Families First.

    Chapter 1:       Overview
    The Department of Defense (DoD) spends almost $2 billion each year to move and store over
    500,000 household goods shipments1 when relocating its personnel. The DoD has experienced
    long-standing problems with its current personal property program, including excessive loss or
    damage to property, high claims costs incurred by the Government, and poor quality of service.
    Furthermore, the current personal property program’s data management system does not provide
    reliable tracking and cost information to facilitate the effective management of the program.
    These problems contribute to an overall poor quality of service for persons using the system.
    The DoD conducted and evaluated several pilot programs to find ways to improve its problem-
    plagued program and in 2002, issued a report to Congress with three specific recommendations
    for improvement to the program.

    1
        Source: 31 March 2005 GAO Report “DoD Transportation Payment Documentation”
    Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                             Volume I: Non-Temporary Storage | 7
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5


        1.1    Background
The DoD’s Personal Property Program is managed centrally by the Military Surface Deployment and
Distribution Command (SDDC) headquarters and administered locally by about 200 Military Service
and DoD transportation offices around the world. The program relies on more than 1,200 domestic
commercial carriers and 150 freight forwarders2 for international shipments to provide household goods
transportation and storage services for DoD personnel when they relocate. SDDC is the single largest
customer of the household goods moving industry.

The Military Services pay shipment and storage-related costs for Service Members from their military
personnel accounts; their loss and damage claims and personal property shipment office expenses
through their operations and maintenance accounts. The program has remained virtually unchanged for
nearly 40 years. It involves a complex process of qualifying carriers, soliciting rates, distributing
moves, evaluating transportation providers’ performance, paying invoices and settling claims.

On 21 June 1994, the Deputy Commander in Chief, Transportation Command (USTRANSCOM),
directed SDDC, the Army component of USTRANSCOM, to reengineer the personal property program.
On 7 July 1997, the Under Secretary of Defense (Comptroller) issued Management Reform
Memorandum #15 (MRM #15), which directs the complete reengineering of the defense transportation
documentation and financial processes, as part of an effort to revolutionize the Department of Defense
(DoD) business practices across all Services and Agencies. A major component of the MRM #15
initiative is the implementation of a third party electronic commerce solution with U.S. Bank's
PowerTrack System. MRM #15 has been implemented for DoD freight shipments; efforts are now
focused on DoD personal property shipments, which involve moving DoD personnel and their families’
belongings to posts around the world. In June 2002, USTRANSCOM released a report containing its
evaluation results and proposed three recommendations to the Deputy Under Secretary of Defense
(Logistics):

       Reengineer the liability/claims process by adopting commercial practices of minimum
        valuation, simplifying the filing of claims, and providing direct settlement with the
        carrier;

       Change the acquisition process to implement performance-based service contracts;

       Implement information technology improvements, which could interface functions across
        such areas as personnel, transportation, financial and claims.

After incorporating comments from the Military Services, the DoD submitted this report to Congress
dated 12 November 20023. From this, USTRANSCOM issued a directive calling for work to begin on
the future personal property program, DoD Families First Program. USTRANSCOM tasked SDDC, in
conjunction with the Military Services and Industry to develop the roadmap for the Families First


2
  Source: April 2003 GAO Report “Defense Transportation – Monitoring Costs and Benefits Needed
While Implementing a New Program for Moving Household Goods”
3
  Source: April 2003 GAO Report “Defense Transportation – Monitoring Costs and Benefits Needed
While Implementing a New Program for Moving Household Goods”
Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                     Volume I: Non-Temporary Storage | 8
                                                               Phase III Non-Temporary Storage
                                                              Concept of Operations Version 5.5

Program by 31 August 2002. SDDC developed a three-phased approach to launching the Families First
Program.

The initial rollout of Families First was Phase I-Electronic Bill Payment, which began on 29 March
2004. Phase I accomplished:
    Use of U.S. Bank's PowerTrack System to pay Transportation Service Providers (TSPs);
    Use of SDDC’s Centralized Web Application as a tool to track and approve services
        performed by TSPs;
    Provide information visibility for Stakeholders.

Families First Phase II- Defense Personal Property System is scheduled to begin in February
2006. Phase II will accomplish:
    Transition from low-cost-based to performance-based shipment awards through
       incorporation of the Best Value Distribution Methodology;
    Roll out of the Full Replacement Value liability and direct claims filing process;
    Shipments booked in the Defense Personal Property System.

Phase III is scheduled to begin on 1 October 2006.

       1.2     Objective
The objective of this Concept of Operations Phase III-Volume I document is to define the process and
systems modification requirements associated with the deployment of the Non-Temporary Storage
program in the Families First Defense Personal Property System (DPS). Volumes II and III will focus
on Direct Procurement Method/Local Moves and Intra-Theater Tenders, respectively.

       1.3     Scope
This CONOPS provides an overview of the current As-Is processes, and the proposed To-Be processes
involved in Non Temporary Storage shipments handled in DPS. The new processes for Phase III will
incorporate:
     The Full Replacement Value and its impact on Claims and Liabilities
     The effect of the Best Value Distribution Methodology on a service provider’s qualification and
       ranking in providing personal property services to the Government
     The incorporation of Customer Satisfaction Surveys, new rate filing requirements and the
       handling of customer claims in ranking service providers


       1.4     Document Organization

The remainder of this document is organized as follows:

Chapter 2.0 – Non-Temporary Storage As-Is Environment. This provides a description of the
NTS Program at a general summary level; detailed As-Is processes of the program are presented
in subsequent sections of Chapter 2.

Section 2.1 – As-Is Transportation Service Provider Requirements. This section contains three
sub-sections providing high-level summaries of the current TSP Qualification, Warehouse

Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                  Volume I: Non-Temporary Storage | 9
                                                                Phase III Non-Temporary Storage
                                                               Concept of Operations Version 5.5

Inspection and Rate Filing processes. A detailed flow chart and process flow descriptions of the
entire TSP Qualification process is presented for in-depth understanding of the steps involved in
qualifying a contractor to perform NTS services for the Government.

Section 2.2 – As-Is Shipment Planning and Distribution. This section contains two sub-
sections: Handle-In and Handle-Out. A synopsis of each process is provided for a high level
understanding of the current processes involved in moving shipments in and out of NTS. A
detailed flow chart and process flow descriptions capturing the current handle-in and handle-out
processes are also provided.

Section 2.3 – As-Is Invoicing and Dispute. This section covers the current Invoicing and
Disputes components of NTS. Summaries will be followed by a detailed flow chart and process
flow descriptions capturing the current invoicing and dispute processes.

Section 2.4 – As-Is Liability and Claims. This section covers the current NTS Claims and
Liabilities processes. Summaries will be followed by a detailed flow chart and process flow
descriptions describing current claims and liabilities processes.

Section 2.5 – As-Is Summary. This section summarizes the highlights of the NTS As-Is
environments and provides a context diagram depicting key stakeholders. This section also
defines key stakeholders’ roles and responsibilities in the As-Is NTS environment.

Chapter 3.0 – Non-Temporary Storage To-Be Environment. This provides a high level
overview of changes and benefits of the proposed To-Be models for NTS; detailed To-Be
processes of the program are presented in subsequent sections of Chapter 3.

Section 3.1 – To-Be Transportation Service Provider Requirements. This section covers the
three parts of TSP Requirements: TSP Qualification, Warehouse Inspection and Rate Filing. A
detailed flow chart and process flow descriptions of the To-Be model for TSP Requirements
process are included.

Section 3.2 – To-Be Shipment Planning and Distribution. This section provides the To-Be
model for Handle-In and Handle-Out processes. A detailed flow chart and process flow
descriptions capturing the To-Be handle-in and handle-out processes are also provided.

Section 3.3 – To-Be Invoicing and Dispute. This section provides the To-Be model for the
Invoicing and Disputes components of NTS. A detailed flow chart and process flow descriptions
capturing the To-Be invoicing and dispute processes are presented.

Section 3.4 – To-Be Liability and Claims. This section provides the To-Be model for the NTS
Claims and Liabilities processes. Detailed flow chart and process flow descriptions are included.

Section 3.5 – Customer Satisfaction Surveys. This section highlights the use of Customer
Satisfaction Surveys (CSS) in the NTS To-Be environment and provides an understanding of
how CSS affects shipment planning and distribution.


Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                   Volume I: Non-Temporary Storage | 10
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5

Section 3.6 – To-Be Summary. This section summarizes the highlights of the NTS To-Be
environments and provides a context diagram depicting key stakeholders. This section also
defines key stakeholders’ roles and responsibilities in the To-Be NTS environment.

Chapter 4.0 – Systems Requirements Analysis. This section describes the required modifications
to the systems involved in the rollout of Families First Phase III for Non-Temporary Storage.

Appendix A – Glossary of Terms. This section contains terminologies used in this CONOPS
and its definitions.

Chapter 2:     Non-Temporary Storage As-Is Environment
The Non-Temporary Storage (NTS) Program is used for long-term storage when a member takes
a tour of duty overseas. A portion of their household goods (HHG) may be placed into storage
until their return. NTS includes any shipment, move, packing/unpacking and crating/uncrating
necessary to place the HHG in the designated storage facility. Each Military Service may have a
published list of circumstances for which NTS is authorized as an alternative to HHG
transportation. The entitlement to NTS is based on the member’s situation detailed in The Joint
Travel Regulation (JTR), Volume I and the Joint Federal Travel Regulation (JFTR), Volume II.
The entitlement begins on the date orders are issued and continues as long as the situation exists.
SDDC- HQ designates Regional Program Managers at the Regional Storage Management
Offices (RSMO) to manage the NTS program.


       2.1     As-Is Transportation Service Provider Requirements
In the personal property program, the contractor is referred to as the Transportation Service
Provider (TSP). In order for TSPs to perform personal property-related services for the DoD,
they are required to go through a qualification process which includes approval of the TSP’s
application and required documentation; an approved pre-award inspection of their facilities; and
acceptance of the service rates submitted by the TSP.

               2.1.1   As-Is TSP Qualifications
The TSP will typically work with the RSMO and the Personal Property Shipping Office (PPSO)
to complete the required qualification procedures. The RSMOs will review the qualifications of
contractors in accordance with the pre-award survey guidelines of the Defense Travel Regulation
(DTR), Part IV. Once qualification is determined, the Tender of Service (TOS) will be executed,
distributed and administered by the RSMOs. The TOS is a written instrument of understanding
between the Government and the Contractor and is an open-end agreement with no minimum
guarantees. The service order, issued by the PPSO to the TSP, is considered a “call” against the
TOS. All performance under the service order is subject to the terms of the TOS. The RSMO
will provide each qualified TSP with listing of using activities and persons authorized to issue
service orders under each TOS.

Becoming a qualified TSP does not guarantee that the TSP will receive traffic distribution
(shipment offers).


Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                    Volume I: Non-Temporary Storage | 11
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5

               2.1.2   As-Is Warehouse Inspection Process
The RSMOs are responsible for periodically inspecting all storage facilities under their
jurisdiction used for the storage of DoD-sponsored personal property shipments. The initial
inspection, as part of the TSP qualification process, is performed and recorded on DD Form
1811, Pre-Award Survey of Contractor’s/Carrier’s Facilities and Equipment. Periodic on-site
inspection of commercial carrier, agent and contractor warehouses approved for the storage of
personal property shipments are recorded on DD From 1812, Warehouse Inspection Report. The
guidelines used to rate the facility is provided in Appendix D of the DTR, Guide to Severity of
Deficiencies. The inspecting official will evaluate numerous areas to ensure that the facility
complies with the requirements of the TOS and the stored property has the adequate levels of
protection in a safe environment. When an inspection results in the disqualification of a facility,
the disqualification will apply to all Transportation Offices (or PPSOs) using the same facility.

               2.1.3   As-Is Rate Filing Process
As part of the TSP qualification process, the TSP is required to submit their service rates using
DD Form 1162-1, Schedule of Services and Rates for Household Goods. There is no uniform
rate review process in place. The RSMO manually reviews the rate submissions and accepts or
denies a TSP’s rates. If the RSMO determines that a TSP’s rates are too high, the RSMO can
negotiate with the TSP to achieve lower rates. The RSMO does not attempt to influence rates,
other than to offer assistance in converting the TSP’s general rate schedule to the CWT (100
pound) method used in the TOS.

TSP proposed rate changes must be prepared on the TOS, Schedule of Services and Rates for
Personal Property during rate cycles; rate increases/decreases may be filed monthly, by the 15th,
to be effective the 1st day of the second subsequent month. Rate changes go through a review
and acceptance process. Upon approval of changed rates, a Standard Form 30, the RSMO
Regional Program Manager issues Amendment of Solicitation/Modification of Contract.

The rates data are entered into the Transportation Operational Personal Property Standard
System (TOPS) databases and forwarded to the Defense Finance and Accounting Service
(DFAS) or provided to the PPSO to forward to DFAS. These rates are used by the PPSO to
establish their tonnage distribution records (TDR) and DFAS for costing payments to the TSPs.

Further details on these procedures are delineated in each process.




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                    Volume I: Non-Temporary Storage | 12
                                                                                 Phase III Non-Temporary Storage
                                                                                Concept of Operations Version 5.5


                                                             1.0
                                                    Contractor Application
                                                   Process for Qualification




                                                        2.0
                                              RSMO Performs Warehouse
                                                    Inspection




                                                           3.0
                                                     TSP Submits Rates
                                                       and Services




                                                          4.0
                                                    RSMO Reviews Rates




                                                           5.0
                                                     RSMO Awards TOS


                               TSP Submits
                               Rate Change

                                                           6.0
                                                       RSMO Submit
                                               Rates to DFAS/PPSO               Approved
                                                        and                    Rate Changes
                                                Enters into TOPS




                                                          7.0
                                                   TSP Rate Change
                                              during Rate Cycle (monthly)




                                                       8.0
                                                   RSMO Issues
                                               Amendment to Contractor




*Blue process boxes indicate optional processes.
                                  Figure 2.1-1: Current TSP Qualifications



Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                     Volume I: Non-Temporary Storage | 13
                                                                       Phase III Non-Temporary Storage
                                                                      Concept of Operations Version 5.5



Process 1 – Contractor Application Process for Qualification
The contractor works with the RSMO and the PPSO to learn about and initiate the application
process to become qualified to provide NTS services for the Government. The contractor may
express interest by coming into the RSMO or via a telephone call. The RSMO send out an
official letter requesting the contractor for their financial statements for the current and two
preceding years; financial statements must be certified by the company official/executive. The
contractor’s financial statements must be mailed into the RSMO with original signatures. The
RSMO uses an MS Excel spreadsheet application to evaluate the contractor’s financial
statements and perform the industry standard “Acid Test” or ratio test. Next, the RSMO
provides notification of financial statements analysis results to the contractor via an official
letter.

If the contractor’s financial statements do not meet the ratio test, the RSMO’s official letter
notification ends the TSP qualification process. If the contractor’s financial statements pass the
ratio test, the RSMO’s official letter notification will delineate the required documentation and
next steps to the TSP qualification process:

Each TSP applicant must submit the following (all can be faxed or mailed except for * items):
     Official Company Name
     Mailing address
     Warehouse address
     Telephone number and email address
     Point of Contact

       Pictures of the front, back, left and right sides of their building(s)
       Warehouse layout diagram signed by Fire Department Representative4
       Insurance Service Office verification of rate credit
       Lease or proof of ownership (or Deed) and current property tax statement (or receipt)
       Fire Department letter MT Form 207B
       Fire system maintenance contract
       Certification of firewall required if multi tenant building
       Flood Plan Letter
       Local/City map5
       Certificate of insurance*
       Emergency telephone data (MT Form 327)
       Certificate & Articles of incorporation, or articles of organization & fictitious name
        statement
       Partnership agreement
       Letter of reference from bank
       Operating Authority for each area of service



4
 This is a hand-drawn diagram of the layout of the warehouse signed off by the Fire Dept. Rep.
5
 This is a map identifying the location of the facility used by the RSMO in case of questions on the flood
plan and as directions to perform warehouse inspections.
Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                          Volume I: Non-Temporary Storage | 14
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5

Process 2 – RSMO Performs Pre-Award Survey Inspection
At any time after the RSMO’s official notification of approved financial statements, the process
to schedule an inspection of the contractor’s facility begins. This is a manual process in which
the RSMO coordinates his schedule with the contractor’s to establish a mutually agreed-upon
date for inspection.
The RSMO uses the DD Form 1811, Pre-Award Survey of Contractor’s/Carrier’s Facilities and
Equipment as a guide to conduct the inspection of the contractor’s facility. Determination is
made upon completion of inspection. The RSMO leaves a duplicate of the DD Form 1811 at the
facility upon completion and the contractor is provided with opportunity to take corrective
action(s) if approval is not granted. If corrective action is needed, the contractor will complete
and telephone to notify the RSMO of completed fixes. The scheduling of the follow-up
inspection takes place.

Process 3 – TSP Submits Schedule of Services and Rates
Once the warehouse inspection is approved and the TSP qualification documentation
requirements are met, the RSMO notifies the TSP via mail to file rates for services. The TSP
manually populates rates into the DD Form 1162-1, Schedule of Services and Rates and submits
to the RSMO for review.

Process 4 – RSMO Reviews TSP Proposed Rates and Application
The current rate review process does not have official thresholds imposed. In general, prices are
expected to be at fair and reasonable levels, with the Government as a preferred customer. The
RSMO can deny proposed rates and/or will negotiate with the TSP to lower them.
The RSMO takes the manual TSP rates and uses an MS Excel application to analyze the numbers
based on current and historical figures. This manual evaluation of rates allows the RSMOs to
determine if the TSP’s submitted rates are acceptable or outside of the “norm” range.

Process 5 – RSMO Awards TOS
The RSMO sends the signature page of the TOS to the TSP to sign and return to the RSMO
(mail or in person). The RSMO signs the TOS signature page and sends the pertinent copies to
the TSP and the using activity. The original TOS is maintained at the RSMO.

Process 6 – RSMO Submits Approved TSP Rates to DFAS/PPSO and enters into TOPS
The RSMO sends the approved rates to the user activity to forward to their servicing DFAS
Office. The RSMO enters the rates into the centralized database of TOPS via the seven tables on
the Oracle forms menu. The rates stored in the centralized database are automatically submitted
to the 103 NTS-specific distributed databases in TOPS.

Process 7 – TSP Rate Change Submission
During the rate cycle, rate increases may be submitted by the TSP manually by using the DD
Form 1162-1, Schedule of Services and Rates for Household Goods and accompanied by
Attachment of the TOS, Certificate of Independent Price Determination (IPD). This form is
submitted to the RSMO for the same review process as step #4. Rate increases/decreases may be
filed monthly, by the 15th, to be effective the 1st day of the second subsequent month.

Repeat Process 4

Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                   Volume I: Non-Temporary Storage | 15
                                                                Phase III Non-Temporary Storage
                                                               Concept of Operations Version 5.5



Process 8 – RSMO Issues Amendment of TOS
The RSMO sends a Standard Form 30, Amendment of Solicitation/Modification of Contract,
effecting the rate changes to the TSP.


       2.2     As-Is Shipment Planning and Distribution
A travel order authorizes travel and transportation expenses and is a written document issued or
approved by the Secretarial Process directing a member to travel between designated points. The
travel order establishes the conditions for official travel and transportation at Government
expense. The appropriate Military Service/civilian personnel office prepares the travel orders for
their Members (customers) to be moved. The order is used in the personal property counseling
session to identify service needs and entitlements.

Each customer is authorized a weight allowance of household goods for movement or storage, or
combination of both, at the Government’s expense. The costs of storing and/or moving in excess
of the authorized weight allowance are the responsibility of the customer.

               2.2.1   As-Is Handle-In Processes
The customer once issued a travel order, contacts the PPSO to initiate a personal property
counseling session. The DD Form 1797, Personal Property Counseling Checklist will be used
for all personnel requiring personal property movement/storage; this is used as a guide by the
counselor during counseling session to determine what type of personal property service is
required. The PPSO ensures that all customers are advised of restrictions, prohibited items for
shipment and storage, and customer’s responsibilities during the movement process. The PPSO
counselor and customer will explore the need to allocate a portion of the shipment weight to
NTS. The travel order will indicate if the customer is entitled to NTS shipments; allowable
weight is also determined. A separate DD From 1299, Application for Shipment and/or Storage
of Personal Property will be prepared for each shipment made by the customer. Coordination of
pick-up logistics is completed during counseling between the customer and the PPSO. Using
this information, the PPSO selects available lowest cost TSPs from TOPS to extend the lot offer.
Services are ordered by means of a Service Order for Personal Property, DD Form 1164. These
orders are contractual documents and can only be authorized and issued by the PPSO.

               2.2.2   As-Is Handle-Out Processes
At any given point in the future when the customer is provided with new travel orders,
arrangements must be made to move his/her personal property from NTS. With the new travel
order, the customer enters counseling with the PPSO to begin the process. The customer and
PPSO agree on the move out or handle-out date based on the customer’s new travel orders and
entitlements. The customer can elect to extend NTS at his/her own expense under provisions
defined in the DTR. Once it is determined that handling-out is required, the NTS TSP is
contacted by the PPSO to arrange delivery out procedures. For local delivery, the TSP surveys
the lot and documents any existing damage; this is recorded on DD Form 1840, Joint Statement
of Loss and Damage at Delivery and copies are provided to the PPSO and the NTS TSP. For


Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                   Volume I: Non-Temporary Storage | 16
                                                                                                    Phase III Non-Temporary Storage
                                                                                                   Concept of Operations Version 5.5

non-local delivery, the line haul carrier takes the shipment and the rider document is completed
to record any existing damage.




                                                                          1.0
                   Travel Order
                                                                   Counseling Session




                                                                       Entitlement;
                                                                  Desired P/U date/time




                                                                           2.0
                                                                  TSP Selection by PPSO




                                                                                                  For Handle-In,
                                                                                              TSP Contacts Customer
                                                                                                                              Customer Gets Counseling
                                                                                                                                on New Travel Order




        For Handle-Out




                                               4.0                                                     3.0
                                                                     Request to PPSO
                                  Pre-authorization of Services                                TSP Pre-Move Survey




                                           5.0
                                                                                                         6.0
                              NTS TSP Picks Up Shipment and            Sent to PPSO
                                                                                          Closing the Handle-In Transaction
                                        Handle-In




                                              8.0
                                                                                                           7.0
                                     Origin PPSO Arranges
                                                                                               Initiation of Handle-Out
                                           Handle-Out



                                       Provides Service
                                     Order to Selected TSP



                                             9.0
                                       Shipment Pick Up




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                                           Volume I: Non-Temporary Storage | 17
                                                                Phase III Non-Temporary Storage
                                                               Concept of Operations Version 5.5



                     Figure 2.2-1: Current Shipping Planning and Distribution



Process 1 – Counseling Session
The customer with a travel order receives personal property counseling at the PPSO to learn
about the process and initiate steps to begin the move. The PPSO uses DD Form 1797, Personal
Property Counseling Checklist as a guide to determine the type of shipment required. The TOPS
counseling module is also used in the counseling. The PPSO determines from the travel order if
the customer is entitled to NTS shipments; weight allowance is also ascertained. Customers are
advised of their responsibilities during the movement process; twenty (20) areas of customer
responsibilities are delineated in the DTR (Chapter 401G). Claims counseling is included in this
session. The customer provides target move date and desired pick up date(s)/time(s).

A separate DD Form 1299, Application for Shipment and/or Storage of Personal Property will
be prepared via TOPS for each shipment made by the customer. The customer signs the DD
Form 1299.

Process 2 – TSP Selection
The signed DD From 1299 and the copy of customer’s travel order with established NTS
authorization, weight allowance and required pick up schedules, are given to the NTS clerk at the
PPSO to query TOPS for available low-cost TSPs. The lot is offered to the TSP either by phone
or in writing. The TSP must accept an order; the TSP may only decline for valid reasons (e.g.,
due to saturation).

If the TSP is fully saturated and cannot take a storage shipment, the PPSO annotates the DD
Form 1164. The annotation is only made on the shipment file copy not the customer copy and is
not cataloged centrally. The PPSO will then proceed to offer the lot to the next available low-
cost TSP.

If the TSP accepts the shipment, the PPSO prepares a DD Form 1164, Service Order for
Personal Property via TOPS to initiate a service order. Upon successful selection and
acceptance of the shipment from a TSP, the DD Form 1164 (Service Order) is faxed to, mailed to
or picked up by the TSP. The TOS number is referenced on the DD Form 1164.

Process 3 – TSP Pre-Move Survey
If the shipment weight is greater than 3,000 pounds, an on-site survey is required. If the
shipment is less than 3,000 pounds, a telephone survey is acceptable. In addition, if the pick up
location is more than 50 miles away from the TSP warehouse facility, a telephone survey can be
performed. TSPs are given a notice of at least five (5) working days to perform an on-site
survey; otherwise, a telephone survey is done.

The TSP and customer arrange for a pre-move survey. The TSP assesses pick up location and
shipment goods to determine if additional services are needed. If required accessorials are
specified in the D-9, Domestic Personal Property Rate and the I-14, Interstate and Intrastate and
International Personal Property Rate Solicitation, then the TSP uses the published rate. If the
Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                   Volume I: Non-Temporary Storage | 18
                                                                  Phase III Non-Temporary Storage
                                                                 Concept of Operations Version 5.5

shipment requires additional 3rd party services that are not published in the D-9 or I-14, then the
TSP is required to solicit a bid, where possible, from a reputable company in the TSP’s Area of
Responsibility (AOR) for the required services. A separate invoice will be created/submitted for
accessorial services performed.

Process 4 – Pre-authorization of Services
After the TSP has identified additional services, a request is made to the PPSO for pre-
authorization of these services. The PPSO can provide authorization over the telephone. The
accessorials are entered into TOPS by the PPSO. TOPS can record the accessorials but not cost
them. A separate invoice is created for the accessorial charges.

Process 5 – NTS TSP Picks Up Shipment and Handle-In
The TSP arrives at the customer’s residence, packs and picks up the shipment. The TSP
completes an inventory list and weighs the shipment using his own platform certified scale or
another certified scale. The TSP provides a copy of the inventory to the customer. The shipment
is handled in to NTS storage location

Process 6 – Closing the Handle-In Transaction
Within seven days from shipment pick up, the TSP sends copies of shipment weight ticket,
inventory list, statement of accessorials (if applicable) and warehouse receipt to PPSO. The
PPSO enters data such as shipment weight and handle-in date into TOPS. Printouts of the
updated DD Form 1164, Service Order for Personal Property is provided to the TSP, the RSMO
and the customer. Invoicing and payment process begins for the handle-in shipment.

Process 7 – Initiation of Handle-Out
At any given point in the future when the customer is provided with new travel orders,
arrangements must be made to move his/her personal property from NTS. The customer, with a
new travel order, makes arrangements to see the PPSO for personal property counseling.

Repeat Process 1 – Counseling Session

Process 8 – Origin PPSO Arranges Handle-Out
If the delivery out (handle-out) is local, then the PPSO will use the NTS TSP for delivery out of
the shipment under the guidelines in the TOS. If the delivery is not local, the PPSO uses a
Government Bill of Lading (GBL) for the NTS shipment delivery out. Shipment weight
determines whether the PPSO selects a freight TSP (DPM contractor) or HHG TSP for delivery
out using a GBL.

If shipment has been converted to a commercial contract at the customer’s expense, a local
contract can be used for delivery. In this case, the PPSO uses the estimated charges for delivery
from the TSP and goes through the local contracting office to establish a purchase order to
perform a one-time local delivery. Once approved, the PPSO schedules delivery with the
customer.

Process 9 – Shipment Pick Up from NTS Facility


Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                    Volume I: Non-Temporary Storage | 19
                                                                       Phase III Non-Temporary Storage
                                                                      Concept of Operations Version 5.5

Upon delivery locally, the TSP and customer documents any damage to the shipment from
movement between the NTS to destination on the DD Form 1840, Joint Statement of Loss and
Damage at Delivery. On non-local deliveries, the line haul TSP forwards copies of the service
order and the rider6 document to the PPSO. Invoicing and payment process begins for the
handle-out shipment.

        2.3     As-Is Invoicing and Payment
Various key data elements are entered into the TOPS database throughout the NTS process. TSP
rates and charges are entered into TOPS and forwarded to DFAS in the TSP qualification
process. The PPSO enters shipment data into TOPS when services are ordered and when
services are completed. The shipment data file in TOPS interfaces with TOPS History; shipment
data files are then uploaded into DFAS accounting systems.
At the end of each month, the PPSO generates invoices for “Handle In”, “Handle Out” and
“Storage Charges” from TOPS. The paper invoices are provided to the TSP for review. If TSP
agrees with contents of the invoice, they sign-off on the invoice and return it to the PPSO. The
invoice is certified by the PPSO and forwarded to DFAS for payment. The invoice certification
stamped date is the starting date for purposes of the Prompt Payment7 interest. The Government
has 30 days from the date stamped to make payment before prompt payment interest is incurred.


                2.3.1   As-Is Dispute Process
During the invoice review process, if the TSP disputes item(s) on the invoice, the matter is
initially handled between the TSP and PPSO over the telephone. Once disputes are resolved, the
PPSO revises the invoice (if needed), obtain TSP sign-off, certifies and submit to DFAS for
payment.
During the DFAS review process; discrepancies may arise due to incorrect line of accounting
information (LOA) or insufficient funds (obligations). The appropriate LOA designation on
customers’ travel orders and obligation of sufficient funds are completed by the Funds Manager
(FM) of the using activity when the travel order was created. The FM obligates the fund in their
financial system, which provides data feeds to DFAS accounting, and entitlement systems. The
FM provides the correct LOA on the travel order; this is source document used by the PPSO to
enter into TOPS. If incorrect or incomplete LOA is provided and insufficient obligation or no
obligation of funds was made, payment cannot be disbursed. In these occurrences, DFAS returns
the invoice to the PPSO for resolution while the prompt payment “clock,” continues to
countdown. If resolution and payment is not made within 30 days of the original stamped date,
prompt payment interest incurs.

6
  The rider is a document used to record damage to shipment from point of shipment transfer from the
NTS TSP to the line haul (or freight) carrier; this is applicable for non-local deliveries.
7
  The Prompt Payment final rule (5 CFR Part 1315) requires Executive departments and agencies to pay
commercial obligations within certain time periods and to pay interest penalties when payments are late.
Interest is computed from the day after the due date through the payment date, at the rate in effect on the
day payment becomes overdue. Interest remaining unpaid for any 30-day period will be added to the
principal, and interest thereafter will accrue monthly on the total of principal and previously accrued
interest. This rate is also used to calculate interest when a contract dispute is settled in favor of, or
against, the Federal Government.

Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                          Volume I: Non-Temporary Storage | 20
                                                                                                   Phase III Non-Temporary Storage
                                                                                                  Concept of Operations Version 5.5




                                                                             1.0
                                                               Invoice Generation (Monthly for
                                                               Handle-In and Out; Quarterly for
                                                                     Storage) by PPSO




                                                                            2.0
                                    TSP Sign Off                                                        TSP Dispute
                                                                   TSP Review of Invoices




                                  4.0                                                                                3.0
                                                                   Phone Call Resolution w/PPSO
                    Invoice Certification by PPSO                                                              Dispute Process




                                       Forwards Certified Invoice to DFAS



                                                                            5.0                                  Data Does
                                                               DFAS Invoice and Receipt Input             Match on LOA / Obligation
                                 Data Does not
                            Match on LOA / Obligation
  PPSO Contacts FM
     to Correct LOA
Obligate Sufficient Funds




                                     6.0                                                                                7.0
                                                                            Dispute Resolution
                             DFAS Dispute Process                                                                     Payment




                                    Figure 2.3-1: Current Invoicing, Payment and Dispute


Process 1 – Invoice Generation
At the end of each month, from Local TOPS, the PPSO generates invoices sorted by TSP and
shipment. Three types of invoices are generated:

          “Handle-In” charges include packing, drayage and warehouse costs to move a
           customer’s household goods into storage. This is a monthly invoice. Charges for
           Handle-In accessorials are billed on a separate invoice.
          “Handle-Out” charges include costs to move a members household goods out of storage
           including warehouse handling, drayage and unpacking costs. Handle-out charges also

Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                                     Volume I: Non-Temporary Storage | 21
                                                                  Phase III Non-Temporary Storage
                                                                 Concept of Operations Version 5.5

       include the most recent storage costs that had not occurred in a full quarter. This is a
       monthly invoice. If the shipment is Handled-Out during a time period that less than the
       full quarter, then storage costs are pro-rated based on 15-day increments that the
       shipment was in storage. This is a monthly invoice. Charges for Handle-Out accessorials
       are billed on a separate invoice.
      “Quarterly Storage” charges include cost to store a customer’s lot occurring within the
       quarterly period. If the shipment is in storage for the full quarter, then all storage charges
       apply. If the shipment is Handled-In and stored during a time period that less than the
       full quarter, then storage costs are pro-rated based on 15-day increments that the
       shipment was in storage. Local TOPS generates these invoices every three months.

Process 2 – TSP Review of Invoices
The PPSO provides (via mail or paper) invoices generated from TOPS to the TSP for review.
The TSP reviews the invoice(s) to ensure that the services performed are reflected accurately on
the invoice and appropriate rates are applied to the shipment(s). If all items on the invoice are
accurate, the TSP signs and returns the invoice to the PPSO. The TSP submits separate manual
invoices for accessorials performed (handle-in and handle-out) to the PPSO.

Process 3 – Dispute Process
If the TSP disputes an item(s) on the invoice, the resolution process involves communication and
negotiations between the TSP and the PPSO. Over the telephone, the TSP and PPSO agree on
change(s) that needs to be made. The TSP annotates agreed upon changes, signs the invoice and
returns to the PPSO.

Process 4 – Invoice Certification
The PPSO certifies the invoice for payment and mails it to DFAS to process for payment. The
certification date stamped on the invoice is the date used to start the prompt payment interest
“clock”. This means that DFAS has 30 days to make payment before interest is incurred on the
invoice. The final copy of the DD Form 1164, Service Order for Personal Property, and DD
From 1299, Application for Shipment and/or Storage of Personal Property accompanies the
handle-in and handle-out invoice submission to the appropriate DFAS office.

Process 5 – DFAS Invoice and Receipt Input
Upon receipt of invoice and supporting documents, DFAS manually enters invoice and
accounting information into the appropriate DFAS entitlement, disbursement and accounting
systems.

Process 6 – DFAS Dispute Process
Once the invoice and accounting information are in the DFAS systems, edit checks are
performed on the LOA and obligations. If the LOA is incomplete, inaccurate, missing or the
obligated fund is insufficient or missing, the invoice is rejected and payment cannot be made.
DFAS returns the invoice to the PPSO for resolution. The PPSO will contact the Funds Manager
of the issuing activity to obtain the correct LOA and/or to obligate the sufficient funds. The
invoice is re-submitted to DFAS after steps are taken to fix the LOA and/or obligation. The
prompt payment “clock” continues to countdown during this resolution process.


Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                     Volume I: Non-Temporary Storage | 22
                                                                      Phase III Non-Temporary Storage
                                                                     Concept of Operations Version 5.5

Process 7 – Payment
Once invoice LOA and funds are matched in the DFAS disbursement system, it is approved for
payment to the TSP through an electronic funds transfer (EFT). All NTS TSPs are required to
accept EFT payments as part of the TOS agreement. The only exception is if a TSP is no longer
in business and is still owed money by the Government.


        2.4     As-Is Liability & Claims
Under the current program, the TSP’s liability is limited to $1.25 (increased to $4.00 effective 1
February 2006)8 per pound multiplied by the shipment weight. Customers receive only the
repair cost for damaged items, or the depreciated value of lost or destroyed items, up to a
maximum of $40,000 per claim. Customers may file claims either directly with the TSP or they
may file with a Military Claims Office (MCO). Currently, the MCOs pay claims and then seek
recovery from the respective TSPs. DoD receives reimbursement from the moving industry.


                2.4.1   As-Is Liability Process
TSPs are required to purchase and maintain coverage in minimum limits of $1.25 (increased to
$4.00 effective 1 February 2006) per pound times the total weight of NTS at each location. The
TSP’s liability is limited to only that amount. There is no additional cost to the customer for this
basic coverage. At any time up to two years from the delivery date, the customer may file a
claim with the Government to receive depreciated coverage under this program.
Until 31 January 2006, the customer may elect to purchase and pay for additional insurance
coverage increasing the value placed on a shipment above the $1.25 times the net weight of the
shipments. The additional insurance coverage is negotiated between the customer and the NTS
TSP insurance carrier. This option requires that the customer file a claim directly with the TSP.
If the claimant is not satisfied with the offer made by the contractor, the claimant can file a claim
with the MCO who will adjudicate the claim under its normal procedures.


                2.4.2   As-Is Claims Process
With basic coverage, the customer has 70 days from delivery of shipment, to present the DD
Form 1840/1840R Joint Statement of Loss or Damage at Delivery to the local Military Claims
Office (MCO). If this is not done within 70 days, the claim may be reduced. The customer has
an obligation to notify the TSP within 75 days of delivery to provide notice of their intent to file
a claim for the loss or damages. The MCO is responsible for recovering the money to be paid to
the customer from the responsible TSP. Once in receipt of DD Form 1840/1840R Joint
Statement of Loss or Damage at Delivery, the MCO will adjudicate, depreciate, and (per US
Army Claims Service), direct payment to the customer. Federal law requires that the claim be
presented within two years of the date of delivery or the entire claim will be denied; the only

8
 Starting 1 February 2006, Full Replacement Value (FRV) will be in effect for all DoD personal property
shipments per the Full Replacement Value Act of 2003. FVR liability under this Act allows a maximum of
$5,000 per shipment or $4 times the net weight of the shipment (in pounds), not to exceed $50,000
(whichever is greater). Detailed discussion of the FRV will be presented in the To-Be Liability and Claims
Section of this CONOPS.
Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                         Volume I: Non-Temporary Storage | 23
                                                                                     Phase III Non-Temporary Storage
                                                                                    Concept of Operations Version 5.5

exception is when a claim accrues during war or an armed conflict and there is good cause for
the customer not to have filed within the two years due to the war or armed conflict.




                DD Form 1840                                1.0
                Joint Statement                 Customer Presents Claim to the
               of Loss / Damage                      MCO within 70 Days



                                                             Claim



                                                             2.0
                                                  MCO Provides Customer with
                                                  Claims Package to Complete




                                                             3.0
                        MCO Receives              Customer Completes Claim
                      Completed Package         Package, Returns to MCO within
                                                           2 years




                         4.0
                                                             5.0                                  6.0
             MCO Adjudicates the Claim and
                                                 MCO Notifies TSP of Pending          MCO Attempts to Settle with TSP
                 Issues Statement for
                                                            Claim                        / Successful Recovery
              Reimbursement to Customer



                                                         No Settlement



                                                              7.0
                                                   Settlement Not Reached;
                                                Government Issues offset to TSP
                                                       Service Payment



                                                         TSP Recourse



                                                               8.0
                                                A TSP Files Petition with the GSA
                                                     for Dispute Resolution




                                      Figure 2.4-1: Current Liability and Claims


Process 1 – Customer Presents Loss or Damage Statement to MCO
Within 70 days from delivery of shipment, the customer must present the DD Form 1840 Joint
Statement of Loss or Damage at Delivery to the local Military Claims Office (MCO).

Process 2 – MCO Provides Customer with Information


Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                         Volume I: Non-Temporary Storage | 24
                                                                Phase III Non-Temporary Storage
                                                               Concept of Operations Version 5.5

The customer is provided with information on the claims process. A completed “claims
package” will begin the process; the customer needs to complete multiple forms within the
package and return to the MCO.

The Claims Judge Advocate (CJA) from the MCO must ensure that written demands against
appropriate third parties are properly prepared and dispatched: the customer submits a
completed DD Form 1840/1840R, Notice of Loss or Damage and dispatched within 75 days of
delivery; carrier (TSP) recovery is calculated on DD Form 1844; demand on carrier (TSP), DD
Form 1843, is properly completed.

Process 3 – Customer Completes the Claims Package Information
The customer must complete and return the required information in the claims package to the
MCO within two years of the shipment delivery date.

Process 4 – MCO Assembles Package, Adjudicates Claim and Reimbursement to Customer
In addition to completed forms from the customer, the CJA obtains the following from the
customer, PPSO or other location: Copy of the GBL for line haul carriers (non-local deliveries),
inventory list, DD Form 1840, and DD Form 1840R.

The claims office adjudicates the completed claims package and pays or denies the claim. The
claims office begins the process to recover these costs in accordance with the TSP’s carrier
liability.

Process 5 – MCO Notifies TSP of Pending Claim
The MCO serves the recovery demand packet directly to the TSP if the TSP is within the
installation’s recovery authority. The recovery packet is forwarded to the appropriate Service for
centralized recovery if the TSP is outside the installation’s authority.

Process 6 – MCO Attempts to Settle with the TSP
The settlement process can be lengthy as the TSP has 120 days to respond to the initial demand.
Negotiations with the TSP can continue past that time.

Process 7 – Settlement Not Reached
On occasion when a settlement cannot be reached, the Government must issue an offset to
automatically deduct funds from the next payment due to the TSP. Requests for offset are sent to
the appropriate RSMO for determination.

Process 8 – TSP Files for Petition
The TSP may appeal the offset.


       2.5     As-Is Customer Satisfaction Surveys
Customer Satisfaction Surveys are not used in the current NTS environment.




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                   Volume I: Non-Temporary Storage | 25
                                                                                                           Phase III Non-Temporary Storage
                                                                                                          Concept of Operations Version 5.5

          2.6          As-Is Summary
The following As-Is Context Diagram depicts all organizations and systems associated with the
current NTS processes.


                                                                       NTS Needs
       Customer
                                                                                      Accepts Shipment
                                                                                     Data Files from TOPS
                                                      Files Claim for Loss/Damage
                                                                                                                                         Defense Finance
                                                                                    Validate LOA/Obligations for accuracy,               and Accounting
                                               Obtain TSP Qualification                 Completeness and Sufficiency                     Service (DFAS)
                                               Including Rate Changes                                                                        Systems

                                          Shipment, Storage and                                    Approves Payment /
                                        Accessorials for NTS Service                              Disbursement to TSPs
     Transportation
    Service Provider
         (TSP)
                                    Reviews/Sign Off Invoices                                           Issues Travel Orders                 Service /
                                                                                                                                            Command
                                                                                                                                          Transportation
                              Settle Loss/Damage Claims                                                         Provides LOA                  Office



                        Performs Warehouse Inspection
    Regional Storage

                                                                      Non-
                             TOS Administration
     Management                                                                                                                           Funds Manager
                                                                                                                    Creates Obligation
     Office (RSMO)       Approve TSP Qualification                                                                                            (FM)
                          Issue Tender of Service



    Military Surface
                                                                    Temporary
    Deployment and
      Distribution
   Command (SDDC)
                         Provides TSP Qualification
                          Application Requirments
                                                                     Storage                                       TSP Approved Rates

                                                                                                                    Generate Invoices
                                                                                                                                          Transportation
                                                                                                                                            Operatoinal
                                                                                                                                         Personal Property
                                                                                                                                           Std. System
                                                                                                                Shipment Information         (TOPS)

                                Customer Counseling /
                                Service Order to TSP
                                   Pre-Authorize Services
   Personal Property                                                                          Handle Personal Property Loss / Damage     Military Claims
    Shipping Office                   Generate / Certify Invoices                                                                         Office (MCO) /
       (PPSO)                                                                                                                             Claims Judge
                                            Resolve Invoice Disputes                                                                     Advocate (CTA)
                                                                                                Recover Monetary
                                                                                         Compensation / Settlement of Claims
                                                Enter Shipment Data in TOPS




                          Figure 2.6-1: Context Diagram for the As-Is NTS Environment


Stakeholders Roles and Responsibilities
The following describes roles and responsibilities of key organizations and stakeholders involved
in the current Personal Property NTS Processes.
Customer – Customers include Service Members, civilians and their family members requiring
NTS services. Customers work with the PPSO to coordinate NTS services and the TSP to
coordinate the shipment. Customers may also file claims with their servicing MCO.

Transportation Service Providers (TSP) – The TSP are contractors, carriers, and warehouse
facility providers qualified to perform work for the DoD. TSPs perform NTS services per an
issued service order by the PPSO. Upon completion of services, the TSP submits all completed
service orders, statement of accessorials (if applicable) and statement of loss or damage (if
applicable) to the PPSO, customer and RSMO (as needed). TSPs reviews and signs off on
invoices provided to them by the PPSO for services performed.
Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                                                   Volume I: Non-Temporary Storage | 26
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5


Regional Storage Management Office (RSMO) –RSMOs manage the execution, distribution,
administering of TSP’s TOS; perform TOS administration; and provide TSPs with PPSO
information. In addition, RSMOs review/approve TSP qualification applications perform pre-
award and periodic facilities inspections and review/approve TSP proposed rates.

Military Surface Deployment and Distribution Command (SDDC) – SDDC provides TSP
qualification application information on their website for any contractor/carrier wanting to do
business with the DoD.

Personal Property Shipping Office (PPSO) – In this document, PPSOs are used as a generic
title for:
         Counselors: work with customer to identify need for NTS, coordinate pick-up schedule
         and arrange for shipment and storage of customer’s personal property. In addition,
         counselors must advise customers of their responsibilities during the movement process
         in accordance with the DTR, and advise customers about the claims process if they have
         loss and damage.
         Transportation Officers: responsible for acquiring all required services for the storage
         of personal property, approve TSP request for accessorials, authorize storage at
         Government expense when travel and transportation entitlements are offered on the
         customer’s travel order, maintain all documents relating to each storage lot.
         Approving Officers: responsible for generating, reviewing and certifying TSP invoices.
         In addition, ensure that invoices are accurate and signed off the TSP, disputes are
         resolved and LOA/obligations are accurate/sufficient to pass payment at DFAS.

Defense Finance and Accounting Service (DFAS) – DFAS is responsible for the processing,
accounting and disbursement of NTS TSP invoices/payments within the Prompt Payment Act
timeframe. DFAS accounting, entitlement and disbursing systems are used to validate and
entitle payments to the TSP. DFAS pays claimants for their loss and damages as determined by
the MCO.

Funds Manager (FM) – FMs ensure that adequate funds are allocated (obligated) to cover the
costs of relocating a customer per the customer’s travel order. In addition, FMs are responsible
for entering accurate and complete LOA for each obligation in the entity’s accounting system.
FMs must also work with DFAS to update the LOA edit tables so that updated and complete
LOAs are reflected in the DFAS systems.

Transportation Office – Service or Command Level – The Service or Command level
Transportation Office processes travel orders to Service Members, civilians and their families.
This office is also responsible for ensuring the travel orders have complete and accurate LOA
information and submitting the order to the FM for obligation of funds.

Military Claims Office (MCO)/ Claims Judge Advocate (CJA) – The MCO/CJA is
responsible for adjudicating and paying claims presented by the customer and processing
recovery claims with the TSP.


Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                   Volume I: Non-Temporary Storage | 27
                                                                Phase III Non-Temporary Storage
                                                               Concept of Operations Version 5.5



Chapter 3:     Non-Temporary Storage To-Be Environment
The future Personal Property Program, Families First, significantly changes the way the DoD
acquires personal property services. The program implements “Best Value” based on a defined
ratio of TSP performance and cost. This concept requires a paradigm shift for both the
Government and the industry. For the Government, measuring customer satisfaction through
customer surveys will be the basis for traffic distribution (shipment offers). Industry will be
required to provide Government customers with service levels that equal or exceed the quality
levels provided to their commercial accounts.

The Best Value Distribution Methodology will distribute shipments rather than tonnage using the
Best Value Score (BVS) established by SDDC. The factors of performance and rate will use a
base of possible 100 points each. The BVS includes a Performance Score (PS) accounting for
70% of the total BVS and a Rate Score (RS) making up the remaining 30% of the total BVS.
Each TSP will have a PS within each shipment category it serves.

The Performance Score (70% of the BVS) is comprised of:
    Customer Satisfaction Survey Score (25%),
    Warehouse Inspection (25%), and
    Claims Score (20%)

The Customer Satisfaction Survey (CSS) makes up 25% of the TSP’s PS. Each customer
moving under the DoD program will be counseled on the importance of completing the CSS on
the web upon delivery of each shipment moved. For NTS shipments, the customer will be
prompted to complete a CSS upon pick up of shipment (when shipment is placed in storage) and
another CSS when the shipment is delivered out of storage (when delivered into the customer’s
residence).

The Warehouse Inspection score accounts for 25% of the TSP’s PS. Using Box 13 of the DD
Form 1812 Warehouse Inspection Report, the following percentage scores are assigned to each
letter score given resulting from the semi-annual inspection:
            Letter Score: A = 100% B = 75%          C = 50% D = 0
         The formula used to calculate the warehouse inspection score (WIS) for each TSP is:
         WIS = (Letter Score percentage) X .25

The Claims Score (CS) is another source of input used in determining the performance portion
of each TSP’s BVS. Customers moving under the DoD program will be counseled on the
importance of completing their claim in DPS, should the need to file a claim arise as a result of
any personal property shipment loss/damage. Elements that will be used to calculate CS are: the
number of days to settle claims; timeliness of settlement payments; percentage of over-aged
claims; and success in diverting claims from Military Services.

The Rate Score (RS) accounts for 30% of the total BVS. While the PS is calculated based on
the shipment category, the TSP’s RS is calculated for each and every rate filed, based on
AOR/Zone and market.


Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                  Volume I: Non-Temporary Storage | 28
                                                                    Phase III Non-Temporary Storage
                                                                   Concept of Operations Version 5.5

Quality service and reasonable pricing will allow providers to achieve and maintain predictable
service levels in the DoD personal property program. All of the BVS functions (relating to TSP
scoring), entitlement counseling, data warehousing and reports generation are capabilities of the
new Web-based Defense Personal Property System (DPS). DPS is a COTS/GOTS automated
information system that will replace TOPS and CWA.


       3.1     To-Be Transportation Service Provider Requirements
The To-Be environment for NTS will incorporate the previous DPM Local Moves. The TSP
qualification application process for NTS and Local Moves TSPs will managed by the
RSMOs. Local Moves are discussed in details in the Phase III Volume II CONOPS –
DPM/Local Moves.

In order for TSPs to perform personal property-related services for the DoD, they are required to
go through a qualification process which includes approval of the TSP’s documentation,
requirements of the application; an approved pre-award inspection of their facilities; and
acceptance of the service rates submitted by the TSP. The TSP application process or
Qualification Package can be done in DPS.

The Best Value traffic distribution methodology employed in the To-Be environment assumes
that TSP screening and qualification are part of a separate process. The results of the
qualification process will provide TSPs that have met the regulatory requirements, are financially
healthy and are qualified to move/store shipment in the Families First program eligibility to
receive traffic distribution. The intent of the traffic distribution methodology based on best value
is to designate “quality TSPs” to provide DoD personal property services.

               3.1.1   To-Be TSP Qualifications
 Each TSP wishing to do business with the DoD NTS/Local Moves Program must submit an
electronic application in DPS.

Each TSP seeking qualification must comply with the following requirements to be eligible to
submit documents for consideration in the program:
    Obtain Electronic Transportation Acquisition (ETA) access to submit documents to
       SDDC.
    Obtain and maintain a Standard Carrier Alpha Code (SCAC), a unique valid four-digit
       alpha code, from the National Motor Freight Traffic Association.
    Register in the Central Contractor Registration (CCR) database.
    Obtain Digital Identity Certificate Verification as required by the DoD of all users of its
       systems.

TSPs seeking approval must submit the following forms and documents electronically within the
time frame specified for the open application period. The following web forms must be
submitted via the DPS9:

9
 TSP requirements described in this section derived from the Phase II Draft Business Rules for TSP
Qualifications published on the SDDC website.
Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                      Volume I: Non-Temporary Storage | 29
                                                                  Phase III Non-Temporary Storage
                                                                 Concept of Operations Version 5.5

   a. Electronic Tender of Service Signature Sheet (ETOSSS) submitted by the TSP
   b. Certificate of Warehousemen’s Legal Liability Insurance submitted by the TSP’s
      Insurance Representative
   c. Performance Bond (for Domestic Interstate) submitted
      by the TSP’s Bond Representative
   d. Certificate of Independent Pricing (CIP) submitted by the TSP
   e. Financial Data/Statements (Audited or Reviewed Financial Data/Statements) submitted
      by the TSP’s independent Financial Representative
   f. Certificate of Responsibility (COR) submitted by the TSP
New System Requirement – DPS will accept electronic submission of the following
qualification requirements:

   a. Proof of State Regulatory Compliance – Intra and/or interstate operating authority
      (depending on AOR) in the name of the TOS applicant
   b. Key Personnel Resumes or References (Only upon SDDC’s request)
   c. Proof of Company Experience (Only upon SDDC’s request)

Application must contain:
     Official Company Name
     Mailing address
     Warehouse address
     Telephone number and email address
     Point of Contact

  New Business Rule: NTS TSPs will
                                           In addition, the NTS/Local Moves TSP must also
  have to submit the same                  submit the following in DPS; determined by the type of
  documents required of all TSPs in        service they will be performing in the program:
  the new environment.                          Pictures of front, back, left and right sides of
                                                   building(s)
                                                Warehouse layout diagram signed by Fire
       Department Representative
      ISO verification of rate credit (3rd party document – get a full credit rating)
      Lease or proof of ownership, or Deed and current property Tax\receipt
      Fire Department letter MT Form 207B (signed by Fire Marshall)
      Fire system maintenance contract
      Certification of firewall required if multi tenant building
      Flood Plain Letter

      Certificate of insurance ($4.00 per LB, $100.00 Deductible and $100,000 Minimum
       coverage)
      Emergency Telephone data (MT Form 327)
      Certificate & Articles of Incorporation, or Articles of Organization & Fictitious Name
       Statement (issued by the State)
      Partnership agreement (only if business is formed as a Partnership)
      Letter of reference from bank


Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                     Volume I: Non-Temporary Storage | 30
                                                                   Phase III Non-Temporary Storage
                                                                  Concept of Operations Version 5.5


The RSMO reviews the qualifications of TSPs in accordance with the pre-award survey
guidelines of the Defense Travel Regulation (DTR). Once qualification is determined, the
Tender of Service (TOS) will be executed, distributed and administered by the RSMOs. The
TOS is a written instrument of understanding between the Government and the Contractor and is
an open-end agreement with no minimum guarantees. The service order issued by the PPSO to
the TSP is considered a “call” against the TOS. All performance under the service order is
subject to the terms of the TOS.

Becoming a qualified TSP does not guarantee that the TSP will receive traffic distribution
(shipment offers).

               3.1.2   To-Be Warehouse Inspection Process
The RSMOs are responsible for both pre-award and routine inspections of storage facilities
under their jurisdiction used for the storage of DoD-sponsored personal property shipments.
The designated warehouse inspector will use the same guidelines to inspect and rate the facility
(provided in Appendix D of the DTR, Guide to Severity of Deficiencies). The inspecting official
will evaluate all areas defined in DD Form 1812; Warehouse Inspection Report to ensure that the
facility complies with the requirements of the TOS and the stored property has the adequate
levels of protection in a safe environment.


               3.1.3   To-Be Rate Filing Process

 New Business Rule: NTS             In the new environment, the TSPs perform rate filing in a DPS
 and Local Moves TSPs will          module. TSPs will access DPS to file their rates. Rates from
 be allowed to change rates         TSPs will be accepted if their filed rate is within the RR range.
 (increase/decrease), six
 times per year (timeframes to
 be aligned with the Phase II
                                 There are two rounds of rates filing for NTS in the Request for
 established performance         Quotations (RFQs) Workbench (a web application of DPS).
 periods).                       The TSP must meet the following criteria to be eligible to
 Rate Reasonableness (RR)        participate in Round 1 of rates filing:
 methodology specific to NTS          TSP is approved to provide service through Families
 will be developed. NTS TSP
 rates will be published.
                                         First in the NTS market (successful TSP qualification
                                         process)
      TSP performance score is at or above the minimum performance score required to
       participate in the NTS market under Families First program

Round 1 – TSP filing of rates for the NTS market is completed in DPS; TSP rates submitted are
evaluated and the systems accepts or rejects rates on an individual basis by AOR/Zone during the
evaluation.

TSPs can access Round 2 only to perform the following (timeframe will be determined and
defined as a new business rule):
     Correct any rates that have been rejected in Round 1
     Provide any rates left blank in Round 1


Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                     Volume I: Non-Temporary Storage | 31
                                                                                     Phase III Non-Temporary Storage
                                                                                    Concept of Operations Version 5.5


                                                              1.0
                                                     Contractor Application
                                                    Process for Qualification




                                                             2.0
                                                   RSMO Performs Pre-Award
                                                         Inspection




                                                             3.0
                                                       TSP Submits Rates
                                                         and Services




                                                              4.0
                                                   DPS Performs Evaluation of
                                                             Rates




                                                            5.0
                                 TSP Submits
                                                      RSMO Awards TOS
                                 Rate Change




                                                                                     Approved
                                                                                    Rate Changes

                                                             6.0
                                                       TSP Rate Change
                                               during Rate Cycle (6 times/ Year)*




                                                             7.0
                                                    New Approved Rates in
                                                        Effect in DPS




                                                      *Rate changes will be
                                                       allowed 6 times/year



*Blue process boxes indicate optional processes.
                                   Figure 3.1-1: To-Be TSP Qualifications



Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                        Volume I: Non-Temporary Storage | 32
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5

Process 1 – Contractor Application Process for Qualification
The contractor works with the RSMO and the PPSO to learn about and initiate the application
process to become qualified to provide NTS services for the Government. Each TSP applicant
must submit the following as part of the application package:
      Official Company Name
      Mailing address
      Warehouse address
      Telephone number and email address
      Point of Contact
      Company certified financial statements (current year and last two years of profit and
         loss statement along with balance sheets)

TSPs will be notified electronically upon acceptance of financial statements. Next, the TSP must
submit the following:

       Pictures of the front, back, left and right sides of their building(s)
       Warehouse layout diagram signed by Fire Department Representative
       Insurance Service Office verification of rate credit
       Lease or proof of ownership (or Deed) and current property tax statement (or receipt)
       Fire Department letter MT Form 207B
       Fire system maintenance contract
       Certification of firewall required if multi tenant building
       Flood Plan Letter
       Certificate of insurance
       Emergency telephone data (MT Form 327)
       Certificate & Articles of incorporation, or articles of organization & fictitious name
        statement
     Partnership agreement
     Letter of reference from bank
In addition, the NTS TSP must submit (or have the original information submitted on their
behalf) all the uniform TSP-required documentation outlined in the DPS TSP Qualification
module.

Process 2 – RSMO Performs Pre-Award Survey Inspection
The RSMO uses the DD Form 1811, Pre-Award Survey of Contractor’s/Carrier’s Facilities and
Equipment as a guide to conduct the inspection of the TSP’s facility. Determination is made
upon completion of inspection and TSP is provided with opportunity to take corrective action(s)
if approval is not granted. This information is entered into DPS triggering notification to the
TSP, as appropriate.

Process 3 – TSP Submits Schedule of Services and Rates
TSP accesses the Web Application, RFQ Workbench, of DPS to apply their proposed rates to
their NTS AOR. From a listing of all current RFQs that the TSP is eligible to respond to, the
TSP selects and responds to each or all AOR offered.

Process 4 – DPS Performs Evaluation of TSP Proposed Rates and Application

Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                   Volume I: Non-Temporary Storage | 33
                                                                Phase III Non-Temporary Storage
                                                               Concept of Operations Version 5.5

DPS reviews each TSP qualification submission package and provides decision to the contractor.
Contractors not meeting the qualification requirements will have 7 calendar days from the date of
SDDC notification (which may be a telephone or email notice) to provide additional or corrected
information.

Process 5 – RSMO Awards TOS
Upon approval of the TSP’s rates and facilities inspection, the SDDC will prepare and issue the
TOS in DPS and trigger electronic notification to the TSP. The SDDC uses DPS to perform
contract administration functions and track service orders against the TOS.

Process 6 – TSP Rate Change Submission
During the rate cycle (six times per year), rate changes may be submitted in DPS. A review
process takes place (same as Process 4).

Process 7 – Rate Changes in Effect in DPS
Approved new rates will become effective in DPS upon closing of each rate filing cycle,



       3.2     To-Be Shipment Planning and Distribution
With the implementation of DPS for shipment booking, there will be fundamental process
changes for PPSOs, TSPs, customers and the financial community. Elements of the shipment
planning and distribution process affected are the personal property counseling and the TSP
selection and shipment booking.


               3.2.1   To-Be Handle-In Processes
In addition to advising customers of restrictions, prohibited items for shipment and storage, and
areas of responsibilities during the movement process, the PPSO emphasizes to the customer the
importance of their participation in the Customer Satisfaction Surveys (CSS). The PPSO advises
the customer on how to complete the CSS and makes certain that the customer’s most current e-
mail address is captured in the system to facilitate effective CSS reminder notifications. The
counseling session will be carried out using the DPS counseling module.

The TSP selection and shipment booking process will be completed in DPS. The PPSO will use
DPS to plan, distribute and manage shipments.

               3.2.2   To-Be Handle-Out Processes
The To-Be Handle-Out is similar to the current processes with the exception of the use of DPS to
select, book and manage shipments.




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                  Volume I: Non-Temporary Storage | 34
                                                                                                 Phase III Non-Temporary Storage
                                                                                                Concept of Operations Version 5.5




                                                                        1.0
                                                                                                           Travel Order
                                                                 Counseling Session


     Customer Gets Counseling
       on New Travel Order

                                                                    Shipment and
                                                                 Pick-Up Information




                                                                       2.0
                                                                   TSP Selection
                                                                                                For Handle-In,
                                                                                            TSP Contacts Customer




                                              4.0                                                   3.0
                                                                   Request to PPSO
                                 Pre-authorization of Services                              TSP Pre-Move Survey
     For Handle-Out




                                            5.0                                                       6.0
                                                                      Completed
                                     NTS TSP Picks Up                                            Closing the
                                                                    Forms to PPSO
                                   Shipment and Handle-In                                    Handle-In Transaction




                                               8.0                                                    7.0
                                   Initiation of Handle-Out                              Customer Completes Customer
                                    with new Travel Order                                     Satisfaction Survey




                                             9.0
                                                                   Provides Service                 10.0
                                        Origin PPSO
                                                                 Order to Selected TSP         Shipment Pick Up
                                    Arranges Handle-Out



                                                                                                  Completed
                                                                                                    Forms



                                            12.0                                                    11.0
                                Customer Completes Customer                                      Closing the
                                     Satisfaction Survey                                    Handle-Out Transaction




                                Figure 3.2-1: To-Be Shipping Planning and Distribution



Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                                       Volume I: Non-Temporary Storage | 35
                                                                   Phase III Non-Temporary Storage
                                                                  Concept of Operations Version 5.5



Process 1 – Counseling Session
The customer with a travel order receives personal property counseling either with the PPSO or
through on-line Self Counseling and initiates the steps to begin the move. The DPS Counseling
module uses the customer’s specific orders information to determine the appropriate entitlement
information to present during the counseling session. Customers are advised of their
responsibilities during the movement process in accordance with the DTR (Chapter 401G).

The claims process is included in the counseling session. In addition, the customer is counseled
on the importance of Customer Satisfaction Surveys (CSS) and on how to complete the CSS.
The customer’s most current e-mail address captured in the system to facilitate CSS
notifications/reminders. The customer’s closest relative’s most current home address is also
captured in DPS at the counseling module as an alternative contact when the customer’s storage
entitlement period expires.

From the travel order submitted to the PPSO, the PPSO confirms entitlement and weight
allowance for the customer’s personal property move. The customer provides target move date
and desired pick up date(s)/time(s). A separate DD Form 1299, Application for Shipment and/or
Storage of Personal Property is prepared in DPS for each shipment made by the customer.

The PPSO enters accounting information (LOA) as provided on the travel order and shipment
information into DPS. If accounting data is not available on the order, or if the LOA is
obviously invalid or missing, the PPSO will obtain this information from the customer or the
origin Service/entity (that issued the order) for the shipment.

Process 2 – TSP Selection
Following the counseling session, the shipment is offered to the next TSP in the quality band.
The shipment will appear in the TSP’s work queue in DPS. The TSP must accept the
shipment10.

TSPs have the ability to print a Service Order from DPS upon acceptance of the shipment. (The
legal statements in the current TOS will be modified to bind TSPs to perform the service by
accepting the shipment in DPS).
TSP must enter the pick up date (from the spread date) when accepting the shipment.

Process 3 – TSP Pre-Move Survey
If the shipment weight is greater than 3,000 pounds, an on-site survey is required. If the
shipment is less than 3,000 pounds, a telephone survey is acceptable. In addition, if the pick up
location is more than 50 miles away from the TSP warehouse facility, a telephone survey can be
performed. TSPs need five (5) working days notice to perform an on-site survey; otherwise, a
telephone survey is done.

The TSP and customer arrange for a pre-move survey. The TSP assesses pick up location and
shipment goods to determine if additional services are needed.

10
  TSPs will be able to access DPS to modify “black-out” dates for specific AOR/Zone, weight and
shipment category. DPS will allow real-time updates of TSP blackout dates to prevent shipment award.
Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                      Volume I: Non-Temporary Storage | 36
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5



Process 4 – Pre-authorization of Services
After the TSP has identified additional services, a request is made to the PPSO for pre-
authorization of these services in DPS. A separate invoice will be created for the accessorial
charges.

DPS will provide a blank box for TSP free text entry of accessorial service(s), quantity, cost,
basis for cost (tariff or third party cost), and justification for the accessorial need. The PPSOs
will receive the request in their work queue. PPSOs may validate and approve via a site visit or
after a review of the TSP-entered justification. Negotiation(s) between the PPSO and the TSP
may take place before accessorial services are authorized. DPS shall allow PPSO to override
TSP-entered costs.

Process 5 – NTS TSP Picks Up Shipment and Handle-In
The TSP completes inventory and weighs shipment. The TSP provides a copy of the inventory
to the customer. The shipment is handled in to NTS storage location. (Once shipment has been
picked up and delivered, the TSP submits an invoice to PowerTrack for the services provided,
along with the Notice of Service Completion (NOSC) – refer to the Invoicing and Payment
Section for details).

Process 6 – Closing the Handle-In Transaction
The TSP maintains originals of all documents for invoicing, audit and dispute purposes; the
customer receives a copy of the shipment inventory. The PPSO or TSP enters data such as
shipment weight and handle-in date into DPS. Invoicing and payment process begins for the
handle-in shipment.

Process 7 – Interim Customer Satisfaction Survey
The customer is notified via email to complete a satisfaction survey. Details of this process are
defined in the Customer Satisfaction Survey section.

Process 8 – Initiation of Handle-Out
At a future date when the customer is presented with new travel orders, the customer begins the
process to “Handle Out” the personal property from NTS. The customer, with a new travel
order, makes arrangements to obtain personal property counseling.

Repeat Process 1 – Counseling Session

Process 9 – Origin PPSO Arranges Handle-Out
If the delivery out (handle-out) is local, then the storage NTS TSP is used for delivery out under
the guidelines of the TOS. If the delivery is not local, the PPSO uses a Government Bill of
Lading (GBL) for the NTS shipment delivery out. The TSP shall be able to print a service order
or GBL from DPS.

If shipment has been converted to a commercial contract at the customer’s expense, a local
contract can be used for delivery.


Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                    Volume I: Non-Temporary Storage | 37
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5



Process 10 – Shipment Pick Up
The TSP arrives at the warehouse to inspect the shipment and completes rider documents
(Exception Sheet or similar documentation) noting any existing damage to the lot (before taking
the lot out of storage). Copies of the rider are provided to the NTS TSP and to the PPSO, upon
request. Damages documented on the rider document become the liability of the NTS TSP. The
shipment is loaded and delivered to the destination point.

Process 11 – Closing the Handle-Out Transaction
Upon delivery, the TSP and customer documents any damage to the shipment from movement
between the NTS to destination on a Joint Statement of Loss and Damage at Delivery.
Invoicing and payment process begins for the handle-out shipment.

Process 12 – Interim Customer Satisfaction Survey
The customer is notified via email to complete a satisfaction survey. Details of this process are
defined in the Customer Satisfaction Survey section.



       3.3     To-Be Invoicing and Payment
In the proposed To-Be environment, invoicing and payment will be completed in several
interfacing automated systems. A significant change from the current environment is that TSPs
will create and submit their service invoices in PowerTrack; the invoice is sent to DPS where the
PPSOs will certify the invoice by line item. The certified invoice is sent to PowerTrack where
validation is performed and payments are made. Invoice audit trail, payment tracking and
transaction visibility are achieved in the new environment.
DPS maintains a copy of the DFAS Transportation Global Edit Table (TGET) and will use the
table to retrieve, validate, and edit lines of accounting (LOA) contained in the BoL. DPS
calculates an estimated shipment cost based on shipment data gathered throughout the shipment
process. The cost estimate is populated into an electronic shipment file, the Electronic Data
Interchange (EDI) 858 Data Feed, and is transmitted to DFAS for end of billing cycle
reconciliation with PowerTrack invoices.
Upon completion of services, the TSP submits their invoice and Notice of Service Completion in
PowerTrack. DPS interacts with PowerTrack to complete the PPSO validation and certification
of TSP invoices. PowerTrack processes payment to TSP when validation is successful.
At the end of the billing cycle, US Bank electronically generates monthly PowerTrack Summary
Invoices (PSIs), which show all payments to TSPs made by US Bank on behalf of the DoD (and
credits to DoD, if any). The PSI is made available for on-line viewing and certification by the
Certifying Officers (CO)/PPSO. With the certified PSI, PowerTrack sends an EDI data feed to
DPS to match/reconcile with LOAs/obligations and interact with the DFAS accounting system to
make adjustments. The PSI certification will also trigger PowerTrack to send an EDI data feed
to DFAS systems. DFAS will match the certification and pass the PSI for payment to US Bank.




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                    Volume I: Non-Temporary Storage | 38
                                                               Phase III Non-Temporary Storage
                                                              Concept of Operations Version 5.5

               3.3.1   To-Be Dispute Process
During the PPSO review process in DPS, the PPSO can reject TSP invoiced line item(s) by
assigning an “In Dispute” label to the line item and providing reason(s). Once an invoice is
returned to the TSP for non-approval of one or more line items, the TSP is notified. Negotiation
and resolution between the TSP and the PPSO must be achieved for all “In Dispute” items in
DPS before the entire invoice can be approved and sent to PowerTrack. The TSP is the only
party that can manually change invoice quantities and services in DPS. If the TSP makes
change(s) to the invoice in DPS, the TSP must make the same change(s) to the invoice submitted
in PowerTrack.
The prompt payment interest “clock” begins when the TSP submits the service invoice in
PowerTrack. The “clock” stops during the dispute process.




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                  Volume I: Non-Temporary Storage | 39
                                                                                                         Phase III Non-Temporary Storage
                                                                                                        Concept of Operations Version 5.5




                                                                                               10.0
                                                                                    DFAS Uses Certified PSI
                                                                                    (UDF810) and Obligation
                                                                                   Adjustment File (UDF 858) to
                                                                                   Validate/Process Payment to
                                                                                             USBank


                                                             Translated EDI
                                                             858 to UDF 821

           EDI 858
                                                                                               DFAS                           Payment
         Obligation
                                        GEX
         Adjustment
         File to GEX
                                                             Translated EDI
                                                             810 to UDF 810


                                                                                            With Certified
                                                                                           PSI, EDI 810 File
                                                                                           Sent to DPS and
                                                                                           DFAS (via GEX)




          Personal                                                    DFAS                                                              Reconciliation/
           Property                                                 TGET Table                                                           Adjustment
          Shipment                                                                                                                      of Obligations
                                           DPS
         Information                                                                                                                      (EDI 858)
             from
         Counseling                                                                                            Payment
                                                                                                                to TSP

                                                    Sends Invoice
                      1.0                            Data to DPS
        Accounting Data is Validated and
                                                                              PowerTrack                        Payment Processing
                 Edited in DPS
            (Using the TGET Table)                                                                             from DPS Invoice File
                                                                                                                  and TSP Invoice
                                                                                     Invoice Data
               Validate Shipment
             Accounting Information
                                        DPS Noties PPSO        DPS Sends                       5.0
                                         of Pending Invoice Approved/Certified         TSP Submits Invoice in
                                                               Invoice File                PowerTrack
                      2.0                                       (EDI 858)
        DPS Creates Initial Cost Estimate
        for the Shipment into an EDI 858
                      File

                                                                                                                       7.0
                                                                                                                 Payment Approval
          DPS Sends EDI 858 to GEX                                                                                in PowerTrack/
                                                                                                                   TSP Payment
                                                                  6.0
                                                      PPSO Reviews/ApprovesTSP
                     3.0                                  Invoice Line Items
         GEX Validates and Translates
            EDI 858 to a UDF 821                                                                                       8.0
                                                                                                        End of Billing Cycle PowerTrack
                                                                                                          Generates Summary Invoice
                                                                                                         (PSI). CO/PPSO Reviews and
      GEX Sends UDF 821 to DFAS Systems                                                                           Certifies PSI



                      4.0
          DFAS Accounting/Entitlement                                                                                  9.0
           System Performs Validation                                                                    DPS Reconciles Using the EDI
                                                                                                        810 from PowerTrack and Adjusts
                                                                                                         Obligations. If Necessary DPS
                                                                                                           Creates EDI 858 Obligation
                                                                                                                   Update File




                                  Figure 3.3-1: To-Be Invoicing, Payment and Dispute



Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                                                Volume I: Non-Temporary Storage | 40
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5

Process 1 – DPS Validates/Edits Accounting Data
As part of the personal property counseling process, the PPSO will have entered shipment and
accounting information (TAC) as provided on the travel order. If accounting data is not
available on the order, or if the LOA is obviously invalid or missing, the PPSO will obtain this
information from the customer or the origin Service/entity (that issued the order) for the
shipment.

DPS maintains a copy of the DFAS TGET to retrieve, validate, and edit LOAs contained in the
BoL. If the BoL contains LOA data that is formatted correctly (i.e., FA2 format), but is
incomplete, DPS will generate management reports for Service FMs to review and provide
update(s) to the accounting data.


Process 2 – DPS Creates Initial Cost Estimates
Estimated shipment costs are calculated in DPS using the shipment information entered
throughout the shipment process. The cost estimate is populated into a Electronic Data
Interchange (EDI) 858 Data Feed and transmitted to DFAS via the Government Electronic
Exchange (GEX). The EDI 858 is an electronic interface for shipment information. The initial
EDI 858 will prompt the system to recognize that this is a new shipment.

Process 3 – GEX Validates and Translates EDI 858
The calculated shipment cost file from DPS is sent to GEX via a New Shipment EDI 858. GEX
performs processing and validation on all EDI 858’s to ensure that only shipments for
participating sites are processed under the automated process. GEX translates the data from the
EDI 858 into the appropriate User Defined File (UDF) 821. GEX uses the value in the
Accounting Installation Number (AIN) field of the FA2 LOA to determine the DFAS location to
which the ensuing UDF 821 must be routed. The UDF 821 data feed is a customer file used to
communicate expense obligation and accruals in an accounting context.

Process 4 – DFAS Accounting and Entitlement Systems Validation
When travel orders are established, the FM allocates (obligates) funds to cover all related
expenses to be incurred by the traveler per the order. The FM creates the obligation in the travel
order issuing entity’s accounting system. The obligation file is transmitted to DFAS accounting
and entitlement systems on a routine basis.
With the UDF 821 from GEX, the DFAS accounting and entitlement systems validate LOAs and
obligations for each transaction. When a transaction fails the local edits, DFAS will notify the
FM responsible for the LOA/obligation to take corrective actions. The LOA and obligation data
reside in the DFAS accounting and entitlement systems until they are matched with invoice data
received from PowerTrack at the end of the billing cycle.

Process 5 – TSP Submits Invoice in PowerTrack
Upon completion of services, the TSP submits an invoice for services (accompanied by the
Notice of Service Completion) in PowerTrack using one of two available methods:
       Through an EDI 859 transaction set (the EDI 859 is a generic electronic interface for
         shipment information)
Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                   Volume I: Non-Temporary Storage | 41
                                                                   Phase III Non-Temporary Storage
                                                                  Concept of Operations Version 5.5

       Manually through the PowerTrack web interface

PowerTrack assigns a unique identifier known as the LineIDC to each line item submitted on the
TSP’s invoice and transmits the updated EDI 859 to DPS. TSPs have the option of submitting
more than one invoice against a single BoL. Each invoice must reference the BoL number and
have a unique invoice number generated by PowerTrack.

Process 6 – PPSO Reviews and Approves TSP Invoice Items
The invoice data from PowerTrack is transmitted to DPS. DPS notifies the appropriate PPSO
twice daily via email of pending items in DPS requiring review/approval. The PPSO reviews
and marks each service line item as:
       “Approved” – PPSO agrees that the quantity is accurate and service was requested and
          performed
       “Denied” – PPSO disagrees that the services were requested and performed. Reason for
          denied line item must be stated in the Notes field.
       “In Dispute” – PPSO agrees that the service was requested and performed, but disagrees
          with the quantities billed. The PPSO must enter a reason in the Notes field for line
          items marked “in dispute”.

For approved line items, DPS performs costing on the shipment services. DPS prepares an
Existing Shipment EDI 858 with data from the invoice, the actual costs calculated by DPS for
each line item and the accounting data. The Existing Shipment EDI 858 is transmitted to
PowerTrack via GEX on an hourly basis.

For denied and In Dispute line items, DPS sends notification to the TSP of rejected line items.
The TSP and PPSO must resolve all “In Dispute” items within DPS before the entire invoice can
be approved and sent to PowerTrack. The TSP is the only party that can manually change
invoice quantities in DPS. If the TSP makes change(s) to the invoice in DPS, the TSP will also
have to make the same change(s) to the invoice submitted in PowerTrack.

Process 7 – Payment Approval in PowerTrack and TSP Payment
PowerTrack matches the Existing Shipment EDI 858 data from DPS with the TSP’s invoice. If
the line item costs are within the established tolerance level and the invoice cost is less than the
maximum established threshold, PowerTrack automatically approves payment to the TSP. If
costs are outside the tolerance level and/or beyond the maximum threshold, the PPSO will have
to manually approve payment to the TSP. Once payment is approved, PowerTrack will pay the
TSP.

Process 8 – PowerTrack Summary Invoice Generation and Certification
At the end of the billing cycle, US Bank electronically generates the monthly PowerTrack
Summary Invoice (PSI) listing all payments with corresponding accounting information made by
US Bank on behalf of DoD to TSPs. The PSI will also include DoD credits. The PPSO
Certifying Officers (COs)/PPSO may access the PSI online for review and certification. The
CO/PPSO also reviews the individual transactions presented on the PSI and confirms the validity
of accounting information used and the accuracy of costs. To update accounting information, the
PPSO uses the PowerTrack Chart of Accounts functionality.

Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                     Volume I: Non-Temporary Storage | 42
                                                               Phase III Non-Temporary Storage
                                                              Concept of Operations Version 5.5


The CO/PPSO must certify the PSI, online in PowerTrack, within 5 business days of the PSI
being made available in PowerTrack. The CO/PPSO prints a hard copy PSI certifying the Text
LOAs by signing and sending the report to the DFAS payment center.

Process 9 – DPS Reconciliation and Obligation Adjustment (if necessary)
Upon certification of the PSI, PowerTrack will send an Actual Payment EDI 810 to DPS. The
Actual Payment EDI 810 includes all transactions covered by the PSI with the actual amounts
paid to TSPs during the billing cycle, as well as the final LOAs assigned to each invoice
payment. DPS uses the information transmitted in the EDI 810 to update the cumulative amount
paid to TSPs for each service order under the LOA. If the cumulative amount paid against a
service order exceeds the cumulative amount obligated (as tracked in DPS), DPS will create an
EDI 858 obligation update to GEX. GEX translates this to a UDF 821 for DFAS and routes it to
the appropriate DFAS office.

If the LOA was changed in PowerTrack, DPS will create two Adjustment EDI 858s. The first
will reverse the existing obligation made under the original LOA (in the amount of the invoice
payment to the TSP). The second will establish an obligation under the new LOA (in the amount
of the invoice payment to the TSP). DPS sends the two EDI 858s to GEX. GEX translates this
to a UDF 821 for DFAS and routes it to the appropriate DFAS office.

The DFAS accounting system processes the adjustment to the individual obligations with
information from the transmitted UDF 821.

Process 10 – DFAS Approval and Processing of Payment to US Bank
Within 48 hours after PSI certification, PowerTrack creates an EDI 810 Invoice for each DFAS
office using the accounting data on the PSI. The EDI 810 is a generic electronic interface for
invoice data. PowerTrack sends the EDI 810 to GEX. GEX translates the EDI 810s into UDF
810s and sends them to the appropriate DFAS entitlement system.

Using the transmitted UDF 810, the DFAS accounting and entitlement system pre-validates
payments by confirming the existence and accuracy of the LOA and confirming sufficient funds
were obligated. There is no tolerance level within the pre-validation process; therefore, if
insufficient funds were obligated, by any amount, the invoice will not be approved for payment.

Once pre-validation is successful, DFAS makes payment to US Bank via an Electronic Funds
Transfer (EFT).

       3.4     To-Be Liability & Claims
In the new environment under the Families First Program, through system and business policy
changes, the NTS claims and liabilities processes will be significantly modified. SDDC’s Best
Value Distribution Methodology moves the personal property program towards performance-
based versus the previously used cost-based service awards. Claims against TSPs account for
twenty percent of the BVS of the TSP. The complex process of continuously monitoring and
calculating the TSP’s BVS requires a claims process that facilitates the BVS objectives.


Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                  Volume I: Non-Temporary Storage | 43
                                                                  Phase III Non-Temporary Storage
                                                                 Concept of Operations Version 5.5

Customers file their claims and achieve resolution within DPS. Customers moving under the
DoD program will be counseled on the necessity of completing their claim in DPS.
The measures and metrics that determine the Claims Score are: the number of days to settle
claims; timeliness of settlement payments; percentage of over-aged claims; and success in
diverting claims from Military Services.

               3.4.1   To-Be Liability Process
The Full Replacement Value (FRV) Act (US Code Title 10 §2636a) of 2003, allows the
Secretary of Defense to include a clause for full replacement value in contracts with TSPs. The
FRV authorization also allows a deduction of the FRV from the amount due to a TSP if the TSP
fails to settle an outstanding claim.
The TSP is liable to the customer for loss or damage that occurs to the customer’s personal
property while it is in the custody of the TSP or of any agent, employee or subcontractor of the
TSP. If the claim is filed directly with the TSP within nine months of delivery, then the TSP is
liable for FRV. The TSP’s liability will be:
      $5,000 per shipment, or
      $4.00 times the net weight of the shipment, in pounds, not to exceed $50,000; whichever
       is greater.

On claims filed within nine months, the TSP may repair or replace the lost/damaged items to
fulfill the full replacement value liability as follows:
     For items that are damaged but not destroyed, the TSP will, at its option, either repair the
         item to the extent necessary to restore them to their condition when received by the TSP,
         or pay the customer for the cost of such repairs
     For most items that are destroyed or lost, the TSP will, at its option, either replace the lost
         or destroyed item with a new item, or pay the un-depreciated replacement cost of a new
         item. Replacement cost is based on the replacement cost at destination. It includes
         shipping charges and sales tax. Customer must submit proof of paid shipping charges
         and taxes.

               3.4.2   To-Be Claims Process
At delivery of household goods, it is the joint responsibility of the TSP and the customer to
record on the Notification at Delivery Form all losses and transit damage that is found at
delivery.
Customers must file a claim against the TSP for lost or damaged property within two years of
delivery of the shipment that gave rise to the claim. If the customer submits the claim to the TSP
via DPS within nine months of delivery, the TSP will be liable for the full, un-depreciated
replacement value on all lost or destroyed items. The customer must allow 30 days from the date
of filing before transferring the claim to the Military Claims Office (MCO).
The TSP may inspect the damaged items at any time prior to settlement of the claim but may not
deny a claim solely on the basis that it was unable to inspect any of the items.



Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                     Volume I: Non-Temporary Storage | 44
                                                                  Phase III Non-Temporary Storage
                                                                 Concept of Operations Version 5.5

On loss and damage claims, the TSP must pay, deny or make an offer within 60 days of receipt
of a claim through DPS. The TSP will complete payment to the claimant within 30 days of
receipt of notice that the claimant has accepted a full or partial settlement.
If a customer files a claim with the TSP within nine months of delivery, but is not satisfied with
all or part of the offer made by the TSP, the customer can transfer all or part of the claim to the
MCO after 30 days. If the MCO determines the transferred claim should be paid, the MCO will
pay the depreciated replacement or repair cost, if appropriate, but will then seek recovery of the
full replacement cost when it asserts a recovery claim against the carrier. If the MCO is
successful in recovering the full replacement cost, the difference between that amount and what
the MCO initially paid the customer will be sent to the customer by the MCO.




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                    Volume I: Non-Temporary Storage | 45
                                                                                                        Phase III Non-Temporary Storage
                                                                                                       Concept of Operations Version 5.5



                                                                                    1.0
                                                                     Documentation of Loss/Damage
                                                                                At Delivery
                                                                    File Notice of Loss/Damage within
                                                                                  75 days


                                   DPS                               Customer Decides to File Claim




                                                                                                                                   2.0d
                                                                        Did the customer file the                     Customer Files Claims - After 2
                                                                         claim within 2 years?            No
                                                                                                                            Years. (Expires)




                                                                                  Yes




                                                                        Did the Customer file the
                                       Yes                                                                      No, Filed with MCO
                                                                         claim within 9 months?




                                                                           No, Filed with TSP


                                                                                2.0b                                        2.0c
                                 2.0a
                                                                    Customer Files Claim with TSP              Customer Files Claim with MCO
                            Customer Files
                                                                    For Depreciated Replacement                 For Depreciated Replacement
                        Claim with TSP for FRV
                                                                                Value                                      Value




                                         TSP Accepts Counteroffer
                                                                                             Customer Accepts Offer
                      3.0
             TSP Requests Inspection
               of Damaged Goods                  Customer Accepts,
                                                 Rejects, Counters or
                                                    Does Nothing

                                                                                             Customer Rejects Offer


                                                                                                                           6.0c
                                                                                                                TSP Completes Payments
                       4.0                                                      Customer Counters                    within 30 Days
                Repair Estimates                                                      Offer

                                                   TSP Rejects or
                                                    Counteroffers

                                                                                                                      6.0b
                       5.0                                                                                     Customer Transfers
              TSP Offers Settlement                                                                              Claim to MCO




                                                                                                 6.0a
                                                    TSP Accepts,
                                                                                        Negotiation Process
                                                     Rejects, or
                                                                                        Initiated within DPS
                                                    Counteroffers




      Figure 3.4-1: To-Be Liability and Claims - Handle In and Handle Out by Same NTS TSP




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                                             Volume I: Non-Temporary Storage | 46
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5

Process 1 – Document of Loss/Damage at Delivery
Upon delivery of the household goods, the TSP and the owner documents all loss/damage to the
shipment on the Notification at Delivery/ Notification after Delivery. Customer gives notice of
damage to the TSP within 75 days of delivery date.
If the customer discovers loss/damage after delivery, the customer completes a Notification after
Delivery Form.
Two forms are given to the customer at delivery –
             Notice of Loss/Damage at Delivery (signed by customer & TSP) – this serves as
                notice by the customer
             Notice of Loss/Damage after Delivery
Customer has 75 days to go into DPS and file a notice of loss/damage. When customer files the
claim, the information from these forms automatically populates the claims module.


Process 2a – Customer Files Claim with TSP – Within 9 Months
Within 9 months of delivery, customer files claim with TSP in DPS for lost/damaged personal
property. The TSP will be liable for the full, un-depreciated value on all lost or destroyed items
with the following liability:
      $5,000 per shipment, or
      $4.00 times the net weight of the shipment, in pounds, not to exceed $50,000; whichever
       is greater.

Process 2b – Customer Files Claim with TSP – After 9 Months
Customer files claim with TSP in DPS for lost/damaged personal property over 9 months (less
than 2 years) after the shipment delivery date. The TSP will be liable for the depreciated value
of the items only, up to a maximum of $1.25 times the net weight of the shipment.
Exceptions to the requirement that the customer file against the TSP in DPS will be granted on a
case-by-case basis, in writing, by the MCO. Government assistance will be available to
overcome most issues in regards to the automated claims process. In cases where an exception
has been granted, TSPs are responsible for accepting, processing and paying paper claims
consistent with this tariff. Approved paper claims, submitted within the appropriate timeframes,
shall receive applicable FRV. Some examples of exceptions are:
a. No access to a computer.
b. Claims for deceased Service Members (Bluebark) involving surviving family members not
   familiar with the claims process.
c. Language barriers in the claims filing process.


Process 2c – Customer Files Claim with MCO – After 9 Months
Customer files claim with the MCO for lost/damaged personal property over 9 months (less than
2 years) after the shipment delivery date. The customer may recover only the depreciated value
for lost/damaged items.
Customers may transfer a claim to the MCO immediately, and still be eligible for FRV, upon:

Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                    Volume I: Non-Temporary Storage | 47
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5

   1. Notice that the TSP has made a final offer on the claim or denied it in full.
   2. Notification by SDDC that the TSP is in bankruptcy.
   3. Notification that the TSP has been placed in permanent, worldwide Non-Use status by
      SDDC.
   4. The TSPs failure to comply with the catastrophic loss provisions and as verified by the
      MCO.
   5. The TSPs failure to comply with essential items provisions and as verified by the MCO.

Process 2d – Customer Files Claim – After 2 Years
The claims filing timeline has expired.
The TSP will not be liable for loss or damage unless the owner either files a claim directly with
the TSP within two years of the delivery of the shipment that included the lost or damaged items,
or files a timely claim with a MCO under the Military Personnel and Civilian Employees Claims
Act (MPCECA). For purposes of filing with a TSP or a MCO, timeliness will be determined by
the MCO based on the statute, case law, and the service’s claims regulations and instructions.
For the purpose of filing with the TSP within two years, if a claim for loss or damage accrues
during war or an armed conflict in which an armed force of the United States is involved, or has
accrued within two years before war or an armed conflict begins, and there is good cause for
delay in on-line filing due to that armed conflict or war, then the claim must be presented within
a reasonable time frame after the cause no longer exists, or after the war or armed conflict ends,
whichever is earlier. An armed conflict begins and ends as stated in concurrent resolution of
Congress or a decision of the President. This same exception will apply to the nine-month on-
line filing period required to trigger the TSP’s liability for FRV. Any extension granted by this
provision will be at least as long as the duration of the good cause and may be longer, at the
discretion of the TSP. If TSP anticipates the denial of an extension, they may contact the
Military Claims HQ for an advisory opinion.

Process 3 – TSP Requests Inspection of Damaged Items
The TSP may inspect the damaged items at any time prior to settlement of the claim. The
customer must allow the TSP to inspect these items. If the customer has repaired an item before
the TSP’s inspection, the customer must provide the repair bill or some other evidence of the
damage and repair cost to the TSP. If the customer has disposed of a damaged item, the TSP
must be provided evidence that the item was damaged beyond economical repair.


Process 4 – Repair Estimates
For claims filed directly with the TSP within 9 months of delivery, the TSP is responsible for
obtaining any repair estimates or replacement cost estimates that it may need to settle the claim.


For claims that are not filed within 9 months of delivery, the customer must provide the TSP
with repair and replacement estimates on any item(s) for which the amount claimed exceeds
$100.

Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                    Volume I: Non-Temporary Storage | 48
                                                                Phase III Non-Temporary Storage
                                                               Concept of Operations Version 5.5



Process 5 – TSP Settlement
The TSP must pay, deny or make an offer within 60 days of receipt of a claim through DPS. The
TSP will complete payment to the claimant within 30 days of receipt of notice that the claimant
has accepted a full or partial settlement.


Process 6 a– Negotiation Process Initiated within DPS
The customer may counter an offer made by the TSP to settle a claim. The claimant may
propose an alternate amount to the TSP that will satisfy their notion of the claim value. The TSP
may concur with the proposed amount and settle, offer an alternative amount, or decline to meet
the owner’s terms. If the TSP concurs with the amount, they will complete payment within 30
days. If the TSP offers an alternate amount, or rejects the claimant’s counteroffer, the claimant
will again have the opportunity to accept, reject, or counter the offer.


Process 6 b– Customer Transfers Claim to MCO
The customer may reject a payment or item offered by the TSP to settle a claim. The customer
may transfer the claim (after 30 days) to the appropriate MCO. If the owner transfers a claim to
the MCO, the MCO will resolve the customer’s claim in accordance with its Military Service’s
claims regulation. The TSP must pay, deny or make an offer on the recovery claim within 60
days of receipt of the claim, unless an extension is granted.


Process 6 c– TSP Completes Payment within 30 Days
Upon acceptance by the customer of a Final, Partial, or Counteroffer made by the TSP, the TSP
is required to settle payment of the agreed amount to the claimant within 30 days.




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                  Volume I: Non-Temporary Storage | 49
                                                                                                           Phase III Non-Temporary Storage
                                                                                                          Concept of Operations Version 5.5




                                                                                               1.
                                  2.
                                                                                  Customer Files Claim in DPS
                                 NTS
                                                                                    for FRV within 9 mos of
                                 TSP
                                                                                         Delivery Date
         Customer claim
           concurrently
            delivered
          to all vendors
             involved
           (may be 2 or                         DPS
               more)


                                                                                            7.0
                                 2.                                              TSP Completes Payments
                              Linehaul                                                within 30 Days
                               TSP(s)


                                                                                     Accepts Partial
                                                                                      or Total Offer
                    3.
        TSP(s) Request Inspection of
             Damaged Goods
                                                         6.
                                                                                                                       Reject
                                             Negotiated settlement
                                                                                   Customer Accepts,                     OR
                                              (by line item & total)
                                                                                   Rejects, Counters or         Sends claim to MCO
                                           is proffered. TSP(s) may
                                                                                      Does Nothing                 after 30 days
                                           designate as Final Offer.
                     4.
              Repair Estimates
                                                                                                                           7.0
                                                                                                                    Customer Transfers
                                                                                                                      Claim to MCO
                                                                       Counter


                       5.
            NTS & Linehaul TSPs
          negotiate settlement by line
       item (customer has no visibility)




                  Figure 3.4-2: To-Be Liability and Claims - NTS TSP and Line Haul Carrier(s)


Process 1 – Customer Files Claim in DPS for FRV within 9 Months of Delivery Date
Within 9 months of delivery, customer files claim with TSP in DPS for lost/damaged personal
property. The TSPs will be liable cumulatively for full, un-depreciated value on all lost or
destroyed items with the following limits:
         $5,000 per the shipment, or
         $4.00 times the net weight of the shipment, in pounds, not to exceed $50,000; whichever
          is greater.

Process 2 – NTS and Line Haul TSP(s)
DPS will offer notification to all TSPs who had responsibility in the NTS storage and further
transportation of an NTS shipment that has a claim against it.

Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                                              Volume I: Non-Temporary Storage | 50
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5



Process 3 – TSP Requests Inspection of Damaged Items
The TSP(s) may inspect the damaged items at any time prior to settlement of the claim. The
customer must allow the TSP(s) to inspect these items. If the customer has repaired an item
before the TSP’s inspection, the customer must provide the repair bill or some other evidence of
the damage and repair cost to the TSP(s). If the customer has disposed of a damaged item, the
TSP must be provided evidence that the item was damaged beyond economical repair.


Process 4 – Repair Estimates
The TSP is responsible for obtaining any repair estimates or replacement cost estimates that it
may need to settle the claim.

Process 5 – NTS and Line Haul TSPs Negotiate Settlement by Line Item
DPS will provide the claim as filed by the customer in a line order fashion to the TSP(s) who
bore responsibility for the shipment at one time or another. Each TSP involved will have the
opportunity to make complete, partial or no restitution against each item. TSPs are expected to
negotiate with each other per any legal riders, etc. they may have in place.


Process 6 - Negotiated Settlement is Proffered
When the TSPs designate they have completed their negotiations and have a settlement to offer,
DPS will allow the claimant to see the offer by line number total and grand total without the
visibility to who made the offer(s), nor the amounts being totaled for each line number and grand
total

The customer may counter the offer(s) made by the TSP(s) to settle a claim. The claimant may
propose an alternate amount to the TSP(s) by line number or total that will satisfy their notion of
the claim value. The TSP(s) may concur with the proposed amount and settle, offer an
alternative amount, or decline to meet the owner’s terms. If the TSP(s) concur with the amount,
they will complete payment within 30 days. If the TSP(s) offer alternate amount(s) by line
number or total, or reject the claimant’s counteroffer, the claimant will again have the
opportunity to accept, reject, or counter the offer.


Process 7a – TSP(s) Complete Payments within 30 Days
Upon acceptance by the customer of a Final, Partial, or Counteroffer made by the TSP, the TSP
is required to settle payment of the agreed amount to the claimant within 30 days.

Process 7b – Customer Transfers Claim to MCO
The customer may reject a payment or item offered by the TSP to settle a claim. The customer
may transfer the claim (after 30 days) to the appropriate MCO. If the owner transfers a claim to
the MCO, the MCO will resolve the customer’s claim in accordance with its Military Service’s
claims regulation. The TSP must pay, deny or make an offer on the recovery claim within 60
days of receipt of the claim, unless an extension is granted.


Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                    Volume I: Non-Temporary Storage | 51
                                                                Phase III Non-Temporary Storage
                                                               Concept of Operations Version 5.5



       3.5     To-Be Customer Satisfaction Surveys
The Customer Satisfaction Surveys (CSS) is a primary source of input in the TSP’s Performance
Score formula. A critical addition to the personal property counseling session is the education
provided to customers on CSS and its impact to the program. The objectives of the CSS are:
      To obtain customer input on TSP performance
      To use the most economical method of obtaining customer input to foster and maintain
       statistically valid results, while reducing the budget impact on the Military Services
      To achieve improving a key quality of life service to all DoD customers moving/storing
       personal property

Typically, upon pick up/delivery of each shipment moved/stored, the customer accesses the web
based CSS and provides feedback on fundamental TSP performance elements. All customers
will be counseled on various locations where computers can be used to complete the web-survey
in the event they do not have ready access to a computer. For the NTS shipment, customers will
be provided the NTS customer survey website and asked to complete the survey within 7
calendar days of shipment pickup and again within 7 calendar days of shipment delivery into
residence.

DoD plans to achieve 100% customer completion of the CSS. Each shipment in DPS is flagged
to indicate the completed delivery of the shipment. Each NTS shipment will be flagged upon
pick up and DPS will be capable of discriminating those NTS shipments that are handled out by
the same TSP who handled-in the shipment. As indicated, a NTS Handle In Survey or NTS
Handle Out Survey will be offered to the customer. This will trigger DPS to automatically send
a survey notification to the customer including an encrypted link to the appropriate survey. The
secondary method used to encourage customer survey completion is an email reminder.
Customers not completing a CSS 7 days after the automatic DPS notification will receive another
e-mail reminder. DPS will use the e-mail addresses obtained during counseling at origin, or the
most recent e-mail address provided by the customer while in transit or at destination.
Additional e-mail reminders will be sent on the 14th and the 21st calendar day after shipment
delivery or NTS storage pick up if the customer has not completed the CSS. A third method
used to obtain customer feedback is a telephonic survey. A third party will conduct telephonic
surveys when a statistically valid sample has not been achieved by the web or by e-mail. DPS
will generate a list of customers that have not completed a CSS for the 3rd party to contact. The
3rd party will attempt to contact each of these customers and complete the surveys on the web by
asking the questions and entering customers’ responses.

The CSS presented to the NTS customer are as follows:
   1) Upon completion of pick up of shipment and placed into storage, a 4-question survey
      designed to measure the performance of the Handle-In NTS TSP will be given
   2) Upon delivery out of storage and into the customer’s residence, a 3-question survey about
      the Handle-Out NTS TSP will be given to the customer.

Local moves CSS is discussed in the Phase III Volume II CONOPS – DPM/Local Moves.

Customer Satisfaction Surveys
Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                  Volume I: Non-Temporary Storage | 52
                                                                                  Phase III Non-Temporary Storage
                                                                                 Concept of Operations Version 5.5

     Member with an NTS shipment will get the following four question survey upon completion of
pickup of the shipment (and placed into storage):

NTS Shipment Pickup

1.   Evaluate services provided at origin such as the quality of packing, labeling and organizing:

                            Excellent     Good        Satisfactory    Poor        Unsatisfactory
                            (15 points)   (12 pts)    (7 points)      (3 pts)     (0 points)
                            0             0           0               0           0

2.        Evaluate origin services such the care, courtesy and attitude of the loading crew:



                            Excellent     Good        Satisfactory    Poor        Unsatisfactory
                            (15 points)   (12 pts)    (7 points)      (3 pts)     (0 points)
                            0             0           0               0           0

3.        How satisfied were you with the timeliness of the pickup of your personal property by the Transportation
          Provider (mover)?

                            Excellent     Good        Satisfactory    Poor        Unsatisfactory
                            (15 points)   (12 pts)    (7 points)      (3 pts)     (0 points)
                            0             0           0               0           0



4.        How would you rate your overall satisfaction with the moving company’s timeliness, courtesy, professionalism,
          and responsiveness for the Non-Temporary Storage portion of your move from first contact through pick up, to
          include any follow up?

                            Excellent     Good        Satisfactory    Poor        Unsatisfactory
                            (55 points)   (39 pts)    (29 points)     (16 pts)    (0 points)
                            0             0           0               0           0


      Member will get the following three question survey upon delivery of the NTS shipment into
residence:

NTS Shipment Delivery

     1.     Evaluate services provided at destination such as the care, courtesy, attitude of the crew, unloading, and
            unpacking:

                            Excellent     Good        Satisfactory    Poor        Unsatisfactory
                            (20 points)   (15 pts)    (10 points)     (5 pts)     (0 points)
                            0             0           0               0           0

     2.     How satisfied were you with the timeliness of the delivery of your personal property by the Transportation
            Provider (mover)?

                            Excellent     Good        Satisfactory    Poor        Unsatisfactory
                            (20 points)   (15 pts)    (10 points)     (5 pts)     (0 points)
                            0             0           0               0           0




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                     Volume I: Non-Temporary Storage | 53
                                                                                                                       Phase III Non-Temporary Storage
                                                                                                                      Concept of Operations Version 5.5

   3.     How would you rate your overall satisfaction with the moving company’s timeliness, courtesy,
          professionalism, and responsiveness for the delivery of the Non-Temporary Storage portion of your move
          from first contact through delivery, to include any follow up?

                              Excellent                Good               Satisfactory              Poor               Unsatisfactory
                              (60 points)              (45 pts)           (30 points)               (15 pts)           (0 points)
                              0                        0                  0                         0                  0


         Table 3.5-1: Phase III Handle-in and Handle-out Customer Satisfaction Surveys (CSS)




          3.6          To-Be Summary
The following To-Be Context Diagram depicts all organizations and systems associated with the
current NTS processes.


                                                                      NTS Needs              Accepts TSP Rates File

        Customer                                          Files Claim for Loss/Damage
                                                          Completes Customer                     Accepts translated TSP Invoice,
                                                          Satisfaction Surveys                        Cost Files from GEX
                                                    Obtain TSP Qualification                                                                                 Defense Finance
                                                    Including rate Changes                                                                                   and Accounting
                                                                                                                                                             Service (DFAS)
                                              Shipment, Storage and                                                                                              Systems
     Transportation                         Accessorials for NTS Orders
                                                                                                           Accepts PowerTrack Invoices
    Service Provider                  Create / Submits Service Invoices
         (TSP)                            Resolve Disputed
                                       Invoice Items with PPSO                                                         Process Invoice /
                                       Settle Loss/Damage                                                          Disbursement to US Bank


                             Performs Warehouse Inspection                                                                 Accepts EDIs from
    Regional Storage
                                                                                                                          DPS and PowerTrack
     Management                 Contract Administration
                                                                                                                                                                  GEX
     Office (RSMO)                                                                                                        Translates EDI to UDF files
                                  Approve
                               TSP Qualification

    Military Surface
    Deployment and
      Distribution
                         Provides TSP Qualification
                         Application Requirements
                                                                       Non-                                                         Rates Information

   Command (SDDC)       Customer Counseling /
                        Service Order to TSP                         Temporary                                             Counseling/Shipment Information

                                                                                                                                    Invoice Line Item
                                                                                                                                                                  DPS

                                                                      Storage
                                                                                                                                    Review / Approval
   Personal Property       Pre-Authorize Services                                                                                       Customer
    Shipping Office                                                                                                                Satisfaction Survey
       (PPSO)             Certify PowerTrack Invoices
                                                                                                                              Loss / Damage Claims
                            Enter Shipment Data in DPS


        Service /                   Issues Travel Orders
       Command                                                                                                    Generate Monthly Invoice (PSI)
     Transportation
         Office                             Provides LOA
                                                                                                           Notice of Service Completion / Invoice


                                                Creates Obligation                                              Related Invoice Data
    Funds Manager
        (FM)                                                                                                                                                    US Bank
                                            Update DFAS LOA Edit Tables                                          EDI to GEX
                                                                                                                                                               PowerTrack

                                                                                                       EDI From DPS Hourly
                                                          Handle Personal
                                                       Property Loss / Damage
     Military Claims                                                                                   TSP Payment
     Office (MCO)
                                                              Recover Monetary                    DFAS Payment
                                                       Compensation / Settlement of Claims




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                                                                              Volume I: Non-Temporary Storage | 54
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5

                  Figure 3.6-1: Context Diagram for the To-Be NTS Environment


Stakeholders Roles and Responsibilities
The following describes roles and responsibilities of key organizations and stakeholders involved
in the current Personal Property NTS Processes.

Customer – Customers include Service Members, civilians and their family members requiring
NTS services. Customers work with the PPSO to coordinate NTS services and the TSP to
coordinate the shipment.

Defense Finance and Accounting Service (DFAS) – DFAS is responsible for the processing,
accounting and disbursement of NTS TSP invoices/payments within the Prompt Payment Act
timeframe. DFAS accounting, entitlement and disbursing systems are used to validate and
entitle payments to US Bank. DFAS pays claimants for their loss and damages as determined by
the MCO.

Defense Personal Property System (DPS) – System developed and launched under the
Families First Program replacing the legacy TOPS and CWA application for handling NTS
transactions.

Funds Manager (FM) – FMs ensure that adequate funds are allocated (obligated) to cover the
costs of relocating a customer per the customer’s travel order. In addition, FMs are responsible
for entering accurate and complete LOA for each obligation in the entity’s accounting system.
FMs must also work with DFAS to update the LOA edit tables so that updated and complete
LOAs are reflected in the DFAS systems.

Government Electronic Exchange (GEX) – GEX accepts EDI files from external systems and
translates to a UDF file for DFAS use. The GEX also performed DFAS field site lookups to
ensure UDF files are routed to the appropriate DFAS office.

Military Claims Office (MCO)/ Claims Judge Advocate (CJA) – The MCO/CJA is
responsible for paying loss and damage claims submitted by customers and for taking
appropriate recovery actions against the TSP for those paid claims

Military Surface Deployment and Distribution Command (SDDC) – SDDC provides TSP
qualification application information on their website for any contractor/carrier wanting to do
business with the Government. SDDC is responsible for reviewing and approve/deny TSP
qualification applications.

Personal Property Shipping Office (PPSO) – In this document, PPSOs are used as a generic
title for:
         Counselor: work with customer to identify need for NTS, coordinate pick-up schedule
         and arrange for shipment and storage of customer’s personal property. In addition,
         counselors must advise customers of their responsibilities during the movement process
         in accordance with the DTR.

Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                   Volume I: Non-Temporary Storage | 55
                                                                 Phase III Non-Temporary Storage
                                                                Concept of Operations Version 5.5

       Ordering Officers: responsible for acquiring all required services for the storage of
       personal property, approve TSP request for accessorials, authorize storage at Government
       expense when travel and transportation entitlements are offered on the customer’s travel
       order, maintain all documents relating to each storage lot.
       Certifying Officers: responsible for reviewing and certifying US Bank’s PowerTrack
       Summary Invoices for DFAS payment. In addition, the certifying officer resolves any
       discrepancies on the US Bank invoices.
       Joint Personal Property Shipping Officers: Serves as the transportation officer.
       Personal Property Processing Officers: Serves as the transportation officer.

PowerTrack – US Bank – US Bank’s PowerTrack system provides financial transaction
visibility and payment processing/disbursement to TSPs. PowerTrack bills the DoD monthly
with the PSI, for its payments to the TSPs on behalf of the Government.

Regional Storage Management Office (RSMO) – RSMOs refer to designated s Regional
Program Managers tasked with overseeing the NTS program. RSMOs are responsible for
conducting pre-award surveys, TSP qualification, and routine warehouse inspections. In
addition, RSMOs manage the execution, distribution, administering of TSP’s TOS; perform TOS
administration; and provide TSPs with PPSO information.

Transportation Service Providers (TSP) – The TSP are contractors, carriers, and warehouse
facility providers qualified to perform work for the Government. TSPs perform NTS services
per an issued service order by the PPSO. Upon completion of services, the TSP submits all
completed service orders, statement of accessorials (if applicable) and statement of loss or
damage (if applicable) to the PPSO, customer and RSMO (as needed). TSPs reviews and signs
off on invoices provided to them by the PPSO for services performed.

Transportation Office – The Service or Command level Transportation Office processes travel
orders to Service Members, civilians and their families. This office is also responsible for
ensuring the travel orders have complete and accurate LOA information and submitting the order
to the FM for obligation of funds.




Appendix A: Glossary of Terms
Best Value Score (BVS): The sum of the weighted value of performance and rate scores. A
transportation service provider receives a BVS for each code of service in each channel in which
it provides rates. The BVS is computed using the relative value of a TSP’s performance and rate
as compared with other TSPs’ performance and rate. The BVS is based on 50 percent of
customer satisfaction score, 20 percent of claims score and 30 percent rate score.

Bill of Lading (BoL): A contract between the shipper and the TSP whereby the TSP agrees to
furnish transportation services subject to the conditions printed on the BoL. Also refers to the
data feed (priced-out BOL) from the shipper system (CWA) to PowerTrack® that contains
shipment information.

Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                   Volume I: Non-Temporary Storage | 56
                                                               Phase III Non-Temporary Storage
                                                              Concept of Operations Version 5.5

Certifying Officer (CO): The CO, who is designated/appointed by the appropriate Service, is
responsible for certifying the PowerTrack Summary Invoice (PSI). The CO is a U.S.
Government employee who does not disburse U.S. Government funds. Upon reviewing the PSI,
CO certifies electronically all transactions on the PSI and ensures correct FA2 LOAs usage on
these transactions. The CO prints the “Manually Billed” portion of the hard copy PSI with text
LOAs, and relays it to DFAS payment centers to ensure timely payment to US Bank.
Concept of Operations (CONOPS): A high level methodology/description of processes for
understanding the way a system works.
CONUS: Defined as the continental United States. For the Families First program, CONUS
includes the 48 contiguous states and some shipments to/from Alaska.

Customer: Any person authorized to move under the Families First DoD personal property
program.

Data Feed: A complete electronic business document such as an invoice, a purchase order, or a
remittance advice.
Defense Finance and Accounting Service (DFAS): DoD agency responsible for a number of
services related to the accounting, internal billing, and payment of transportation BoLs. DFAS
identifies and implements finance and accounting requirements, systems and functions for
appropriated and non-appropriated funds, as well as working capital, revolving funds and trust
fund activities. DFAS pays claimants for their loss and damages as determined by the MCO.
Electronic Data Interchange (EDI): Computer to computer exchange of data using standards
jointly developed and established standards groups, i.e., ANSI, EDIA, and EDIFACT.
       EDI 810 Data Feed: Electronic Data Interchange Data Feed used as a generic electronic
       interface for invoice data (in an accounting context).
       EDI 820 Data Feed: Electronic Data Interchange Data Feed used as a generic electronic
       interface for remittance advises (in an accounting context).
       EDI 821 Data Feed: Electronic Data Interchange Data Feed used as a generic electronic
       interface for expense obligation and accruals (in an accounting context).
       EDI 824 Data Feed: Electronic Data Interchange Data Feed used as a generic electronic
       interface for application error advises.
       EDI 858 Data Feed: Electronic Data Interchange Data Feed used as a generic electronic
       interface for shipment information (DPS transmits to GEX).
       EDI 858 Data Feed: Electronic Data Interchange Data Feed used as a generic electronic
       interface for shipment information (TSPs submits in PowerTrack; PowerTrack transmits
       to DPS).
Electronic Funds Transfer (EFT): The electronic transfer of funds from payer to payee
through a banking system.



Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                  Volume I: Non-Temporary Storage | 57
                                                                Phase III Non-Temporary Storage
                                                               Concept of Operations Version 5.5

Funds Manager (FM): Individual who provides Shipping Customers with the financial and
accounting data that accompanies a shipment request. The FMs are responsible for establishing
LOAs and ensuring proper funding supports an established LOA.
Line of Account/Appropriation (LOA): Accounting/appropriation data; represents specific
financial/budgetary appropriations.
Personal Property Shipping Office (PPSO): Person responsible for entering the data from the
Movement Request Order (MRO) into TOPS and/or DPS and ensuring that the presented
documentation entails a correct and fully funded LOA.
Performance Period: The period over which TSPs will be evaluated. These are:

            1 April to 30 June                                 1 September to 30 September
              1 July to 31 July                                  1 October to 31 December
              1 August to 31 August                              1 January to 31 March


Performance Score (PS): This measures the performance of TSP based on customer
satisfaction and claims scores. The PS is 70 percent of the Best Value Score.

PowerTrack®: A proprietary software offered by U.S. Bank that provides on-line freight
payment processing and transaction tracking for a logistics operation.
PowerTrack Summary Invoice (PSI): U.S. Bank submits on a monthly basis a statement to the
CO reflecting the carrier payments the bank has made on behalf of the shipper and/or destination.
Rate Score (RS): Measures the rate provided by a transportation service provider relative to
their peers in each channel. The RS is 30 percent of the Best Value Score.

Service Member: The Service Member receives the Transfer Movement Orders from the
Personnel Office, and brings it to the origin PPSO. The customer will sign documents as
required.
Transportation Account Code (TAC): A four-digit code that is tied to an LOA and its
appropriate service's program, project or account to be charged for transportation.
Transportation Global Edit Table (TGET): A table of established LOAs, TACs, and an edit
logic supporting the Service/Agency LOA requirements. This logic is used to validate
segmented LOAs and TACs within the shipper systems prior to the shipper systems transmitting
the data to DFAS accounting systems and PowerTrack®.
Transportation Service Provider (TSP): Any party, person, agent, or carrier that provides
freight and/or personal property transportation and related services to an agency, including
Motor Carrier, Freight Forwarder and Broker.
User Defined File (UDF): a custom data file jointly defined by the sending and receiving
parties.
       UDF 810 Data feed: Custom data feed used to communicate invoice data (in an
       accounting context)
Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc                   Volume I: Non-Temporary Storage | 58
                                                            Phase III Non-Temporary Storage
                                                           Concept of Operations Version 5.5

       UDF 820 Data feed: Custom data feed used to communicate remittance advices (in an
       accounting context)
       UDF 821 Data feed: Custom data feed used to communicate expense obligation and
       accruals (in an accounting context)
       UDF 858 Data feed: Custom data feed used to communicate shipment information




Filename: dcb3a2ef-5bac-4677-87c9-48b01ed18f0e.doc              Volume I: Non-Temporary Storage | 59

								
To top