U.S. General Services Administration Federal Acquisition Service Center for Transportation Management Federal Acquisition Service Contractors Transportation

U.S. General Services Administration

Federal Acquisition Service

Center for Transportation ManagementFederal Acquisition ServiceContractors Transportation Management Association Conference July 8th, 2015

Freight Management Branch: Ship anything, anywhere, anytime


Introduction

Who we are: GSA’s Freight Management Branch

What we do: Manage a freight management program and offer freight consulting services for federal organizations

When to use the program: Anytime a federal organization needs to ship freight

Where to obtain our services: Through our automated solutions and self-service websites

Why use the program: Let us show you…

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Freight Management Branch’s Program Provides a framework for fulfilling worldwide freight shipping

requirements of federal organizations

Offers rate management services for general commodity freight

Has the authority to acquire transportation rates on behalf of other Federal agencies

Freight can be shipped to all 50 states, Washington DC, U.S. territories, and international destinations

Transportation Service Provider (TSP) approval process and compliance enforcement managed by GSA

Operates through a non-FAR based approach by using freight tenders

Freight tenders are obtained through Request for Offers (RFOs), where GSA Freight invites approved freight TSPs to submit freight tender rates

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What are freight tenders? A tender is an offer from a transportation service provider

(TSP) to transport goods From one point to another For an agreed upon rate Applicable between the TSP and the agency listed in the

tender

TSP(s) submit tender rates to GSA for potential and expected agency freight movements

A bill of lading (BOL) document is the contract of carriage between shippers and TSPs

Contains tender rate and shipment details

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Tenders vs. ContractsWhen to use tenders (GSA

Freight)If Agencies/Bureaus; Need to quickly schedule a

shipment and do not have sufficient time to identify or solicit a FAR contract;

Have shipments recurring between designated places, but do not expect consistent volumes to obtain favorable tender rates;

Are not in a position to make a definite volume and shipment commitment under a FAR contract

When to use contracts (FAR)

If Agencies/Bureaus; Will ship consistent volumes in

reoccurring traffic lanes;

Have sufficient time to follow FAR contracting procedures, and negotiate a contract with a transportation carrier;

Are able to handle the requirement to set up and manage the FAR contract

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Program Savings and Benefits Program services offered at no charge to participating federal

organizations

Average freight rate savings for participants: 19.5% over other government agency rates, and 51.9% off commercial rates

(Source: Runzheimer July 2011)

Rates are priced for freight-all-kinds (FAK) shipments, Class 50

No minimum shipment volume, tonnage or purchase requirements to use program

Full replacement value (up to $100,000) on all shipments

Decades of freight transportation expertise

Compliance with federal transportation laws and regulations

Online automated solution that offers:• Shipment creation and booking capabilities through TransPort

Integrator • Freight bill prepayment-auditing, payment, and accounting functions

through PayPort Express (PPE) 6


Department of Energy Specifics

GSA procured and negotiated LTL (Less Than Truckload) rates on behalf of the DOE The rates are effective from January 1, 2015

through December 31, 2015 The rate prices are state to state shipments moving FAK

(Freight All Kinds) class 50 The rates were formatted and loaded into the DOE

ATLAS system

DOE has the option to extend the rates for 1 year. If exercised, the expiration of the rates would be December 31, 2016

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Transport Integrator (TPI) TransPort Integrator (TPI) is GSA’s web-based transportation

management solution (TMS)

TPI provides a suite of services and advanced management tools enabling freight rate shopping and shipment execution

Access to GSA’s freight tender rates 24/7

Industry leading business intelligence and reporting tools

Provides a common procurement platform utilized by both government and industry stakeholders

Provides shipment transparency and increased accountability

There is no cost for federal customers to utilize TPI!

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PayPort Express (PPE) PayPort Express (PPE) is a web-based third-party payment

service for freight and parcel-related expenses

PPE automates the transportation shipment pre-payment audit, payment, and accounting functions for agencies and their TSPs

Converts manual paper processes to an online electronic process

Offers detailed financial and transportation reporting

Provides compliance with payment and audit regulations

Reduces the need for contracted pre-payment auditing services

Eliminates prompt payment fees through accurate and timely payments

There is no cost for federal customers to utilize PPE!

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Looking Forward: Category Management

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Category management focuses on defining and organizing products and services that behave in a similar manner

The Federal Government is applying this strategy to buy smarter and more like a single enterprise

Category management involves: Identifying core areas of spend Collectively developing heightened levels of expertise Leveraging shared best practices Providing acquisition, supply and demand management solutions

Category management enables us to: Eliminate redundancies Increase efficiency Deliver more value and savings from the government’s acquisition

programs


Additional Partnerships and Services

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Federal Strategic Sourcing Initiative: What is FSSI? FSSI is an OMB-sponsored program focused on analyzing all

costs associated with a product or service under management, in order to generate savings through:

Requirements development Acquisitions Behavior changes

FSSI solutions are developed through a cross-government team that uses a structured and collaborative process to:

Analyze an organization’s spending Compare the results to best in-class practices Then uses this information to make business decisions about acquiring

and using commodities/services more effectively and efficiently

An example of a very successful FSSI is the Third Generation Express and Ground Domestic Delivery Services (DDS3) for small package delivery shipping

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Domestic Delivery Services (DDS3) DDS3 Program features include:

• Domestic delivery services for both air and ground shipments:o Between the 48 states and the District of Columbiao From the 48 states to Alaska, Hawaii, and Puerto Rico

• Waived fuel surcharges for all express and ground parcel shipments

• Money-back guarantee for all air and ground services• Online air bill creation, package tracking, and account

management

Participation in the DDS3 BPA procurement vehicle delivers:• Tiered discounts – as the collective volume increases, so do the

discounts • Business intelligence – enables more informed business decisions,

such as saving 60-70% by purchasing ground over express shipments

• Best practice solutions – for better program management and increased efficiencies

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Pre-payment audits • Mandated by Public Law 105-264 under the “Travel and Transportation

Reform Act of 1998” (102-118.265) • Require that all federal agencies conduct pre-payment audits of all

transportation billings• By auditing prior to payment, agencies can avoid excess transportation

charges, and use the consequent savings to procure additional transportation services

Post-payment audits • Mandated by “The Transportation Act of 1940 as amended 31 USC 3726”

(102-118.415)• Post-payment audit occurs once a transportation service provider (TSP)

bill has undergone a pre-payment audit and has subsequently been paid • These audits ensure that the bills are valid and proper, while in

compliance with rates, tariffs, quotations, agreements, tenders, and/or other applicable rate authorities

GSA Transportation Audits:Auditing Transportation Bills…It’s

the Law

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Going Green: Partnering with EPA SmartWay

Voluntary program created by US Environmental Protection Agency (EPA), which helps organizations become environmentally responsible

Provides agencies a tool to comply with Executive Order 13514

Helps modify logistics operations to improve efficiency, and reduce Scope 3 Emissions to meet their Strategic Sustainability Performance Plans

On March 11, 2011, GSA became the first Federal Civilian Agency to become a certified SmartWay Transport Partner for efforts to reduce greenhouse gases and other air pollutants, and improve fuel efficiency within the supply chain

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For Further Information: Additional Partnerships and Services

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FSSI/Domestic Delivery Service (DDS3): www.gsa.gov/dds

GSA Transportation Audits: www.gsa.gov/transportationaudits

OGP Transportation Officer Training: http://transportationofficer.golearnportal.org/

EPA SmartWay Transport Partnership: www.epa.gov/smartway/index.htm


Contact Information Scott Kidd – Chief, Freight Branch

– Email: [email protected]– Phone: 703-603-8138

Rebecca Silver – Program Advisor– Email: [email protected]– Phone: 571-289-6696

Brian Assia – Team Lead– Email: [email protected] – Phone: 202-557-1038

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Documents

U.S. General Services Administration Federal Acquisition Service Center for Transportation Management Federal Acquisition Service Contractors Transportation