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Updates from GSA’s OGP and FAS
Transportation Policy Updates1.Obligating authority2.Transportation Officer Training3.Transportation Audits Bulletin4.Open Skies5.Transportation Reporting6.Inbound transportation
initiative7.OGP Interagency Groups8.Detail opportunities
Obligating Authority FMR 102-117• Warranted Transportation Officers• Obligating with Rate tenders
– Recommend training/certification– Authorized in writing– Effective date 18 months– Clarify accountability and liability
• Finalizing contracts for content and hosting• Vet with interagency working group• Online 24x7; tests & completion certificates• 3 courses with 11 topics in each• Available
– Basic-October 2012– Intermediate-June 2013 – Advanced-December 2013
Transportation Officer Training
TO Training Topics• Federal Transportation
Management - Intro• Transportation Roles• Transportation Modes• Domestic• International• Hazardous Materials• Payments and Audits of
Transportation Services
• Claims• Laws, Rules & Regs • Sustainable
Transportation • Temporary Nonuse,
Suspension & Debarment
Transportation Audits Bulletin• Stresses requirement to conduct, no changes• Purpose-Prevent duplicate payments and ensure
proper payments for authorized services• Prepayment-Overages returned to agency;
Postpayment-general treasury• Customers of FAS new GSA Payport Express have
automated pre-payment capabilities• www.gsa.gov/transportationpolicy• www.gsa.gov/transaudits (Freight Trans. handbook)
Transportation Reporting• Currently, no reporting required by GSA/OGP• Amending FMR to require• Data Collection Bulletin• Developing OGP Tool• Why Report? • What to report for inbound and outbound
shipments?
Open Skies• Expands Fly America Act (§102-117.135)• Reflects and supports demand for international
services, increased travel and trade• Allow air carriers unlimited access to points in
the countries and unlimited access to intermediate and beyond points
• Maximum operational flexibility for alliance partners.
• state.gov/e/eeb/tra
Inbound Transportation Initiative
• Inbound Transportation –
All deliveries into the buyers delivery point
Current State
Commodity prices include
shipping (FOB Destination)
Government has no/limited
visibility into inbound spend
Untrained transportation
officers
Unmanaged transportation
Legacy systems
Outdated policy
Goals of Inbound Transportation Initiative
Desired State
Prices exclude shipping costs
(FOB Origin)
Inbound & outbound data
Customer has shipping options
Transportation focused mgmt
Active & knowledgeable
community
Supply life cycle modernization
Strengthened & updated policy
Transportation Inbound Initiative Options• Product Service Codes (commodity groups)• Parcels and/or freight• Facility type: Special Use vs. Office• Require visibility -separate product and transportation costs • Move to FOB origin from FOB destination pricing• Combine outbound and inbound to optimize network• Pilot Agencies: VA, DLA, DOE• Other ideas?
• FY 2012• Detail options, and select• Realign process or incorporate into new processes• Develop business case, and implementation plan• Begin pilot• Recommend go/no go position
• FY 2013• Gather data, analyze savings/GHG impact and replicate-
ability • Identify and amend transportation policy; FAR; waivers
Transportation Inbound Initiative Plan of Action
Interagency Transportation Groups
• Governmentwide Transportation Policy Council (July 19 next)
• Federal Transportation Executive Board• Ad Hoc Working Groups
Share transportation experience?ASTL’s Certification in Transportation
and Logistics (CTL)
Professional Traffic Operations Engineer (PTOE)
Professional Transportation Planner (PTP)
GSA Center for Transportation Management
Discussion Topics• Center for Transportation Management (CTM) Mission• Stakeholder and Customer Needs• Customer Savings and Benefits• GSA Transportation Management• GSA’s NEW Automated Transportation Solution
– TransPort Integrator – PayPort Express (Third Party Payment Service)– End-to-end Transportation Solution
• Working Together and Moving Forward• Information and Upcoming Events
16
Our Mission• The Center for Transportation Management (CTM) is creating
an environment of excellence and innovation that provides a 360 degree approach to executing and managing transportation; resulting in greater market penetration through customer focused offerings. The tools that empower this approach are:– TransPort Integrator– PayPort Express
17
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What Do Stakeholders and Customers Want?
TSPs
Customers1
TransportationAssociations
GSA2 OMB
1- Major Customers:FMP: FEMA, HHS, Dept. of Justice, NIB/NISH, GSA-GSS, VA Memorial Affairs, NARACHAMP: State Department, Dept. of Justice, USDA, Dept. of Interior
2- GSA Stakeholders:FMP, CHAMP, Small Parcel program, Audits, QMCC, GSS, OGP, OCIO, OCCM, Finance, Legal and Acquisition, SmartPay®
Timely payments, collaboration
platform, dynamic rates
Increased revenue tracking, business
intelligence
Ability to analyze government wide
transportation trends through data collection,
Leverage Modal Shift
Multi-mode, rate shopping, analytics, visibility & tracking
Industry Best practices, transparency
$20–$30 Billion Savings Potential Over 5 Years •Recurring savings in reduced expenditures through improved operational efficiency and service level improvements that can be supported by Transport Integrator
– 10–15% recurring savings from policy and structural changes • Organizational structure and reporting • Identifying and selecting the best procurement method
(appropriate uses of FAR vs. Tender)– 10–15% recurring savings from operational improvements
• PRTM experience with private companies & government agencies, including US Transportation Command, confirms this is a conservative estimate
Savings of $20B–$30B over 5 years possible by implementing recommendations based on PRTM experience and domain expertise
19
Savings and Benefits• GSA negotiates rates leveraging the buying power of the
federal civilian government to provide competitive rates• Rates are available via the web, 24/7, and there is no charge
to participating Federal agencies/contractors to use.• GSA customers’ on average savings:
– 19.5% over other government agency sample rates– 51.9% off commercial rates (Source: Runzheimer July 2011)
• TSP approval process strictly managed by GSA• Full replacement value on shipments up to $100,000 without
additional insurance requirements• Easy and efficient booking and bill of lading capabilities
through TMSS/New TransPort Integrator
20
GSA Transportation Management
21
•Smart Shopping•Shared IT Services
•Competition•Transparency•Management
Controls•Data
• Customers– Cost Savings– Multi-modal– Specific RFOs– Audits visibility &
automation– Compliance w/ Policy &
Regulations
• TSPs– Faster & Accurate
Payment – Open market place– Increased collaboration
• Stakeholders– Data mining– Supports policy
development
TransPort Integrator• Rate shopping and shipment creation• Agency specific rates for unique shippers (RFOs)• Monitored TSP performance• Value index helps identify the overall best value TSP for shipments• Identification of EPA SmartWay Certified Shippers to help agencies
fulfill sustainability goals• Increased in-transit visibility of freight shipments, featuring
automated alerts• Robust reporting and data analysis• Alleviate in-house transportation management – direct savings• Integration with PayPort Express (3rd Party Payment Service)
22
PayPort Express
23
“Through PayPort Express, GSA offers a commercial practices based, streamlined
invoice-to-pay service to all Federal Civilian Agencies to increase efficiency and transparency, and reduce costs.”
24
PayPort Express Automates
Delayed payments to TSPs
Manual and paper intensive processes are costly and limit data capture
Pre and Post audit processes are burdensome and time consuming
Robust business intelligence will improve efficiencies
Agency Challenges PayPort Express: Benefits to Agency
24
1%-10% Operational Cost Savings
Seamless electronic process/workflow Automates account code assignment Expedites exception resolution
Eliminates Audit Findings
Robust, systemic pre-audits catch exceptions
GSA Audit approved for pre-audit plan
100% GSA TSP Participation
TSPs are already enrolled
Integration Already integrated with dozens of
government and commercial systems
Consolidated Billing TSP paid upon approved invoice Agency receives consolidated bill from Citi
Business Intelligence Supply Chain Network Optimization
Parcel Management Audit and payment functionality
Zero Cost to Agency Immediate ROI to Agency
GSA Automated Transportation Solution
25
1. Order Creation1. Order Creation 4. Pickup4. Pickup 5. Tracking5. Tracking 6. Delivery6. Delivery
Online Order
Creation
Decline, Accept Load, confirm
Pickup
Integrated Tracking
Confirm Delivery
9. TSP Invoice
10. Prepay Audit
11. Audit Exceptions
12. TSP Payment
TransPort Integrator* (Planning and Execution)
PayPort Express* (Settlement)
Validate and
Approve
Citi pays approved
invoices to TSPs
Rule based Match Auto
Approve / Reject
TSP Submits Invoices to Citi
2. Rate Shopping
2. Rate Shopping
Rate Shopping & Consolidation
Automated feed
3. Load Tender 3. Load Tender
Auto/ Manual Load assignment
7. Proof of Delivery
7. Proof of Delivery
Verify charges and confirm POD
8.Send BOL to
PayPort
13. Agency Invoice
Consolidated invoice to
Agency from Citi
15. Post pay Audit
GSA Transportation Audits full cycle
14. Agency Payment
Agency pays Citi’s
consolidated invoice
*TransPort Integrator services provided by IBM on JDA platform; PayPort Express Services provided by Citi on Syncada Platform
Shipper
Agency
Shipper TSP TSP TSP TSP
TSPCitiShipperCitiCiti
Shipper
GSA Audits
Integrated Customer-centric, TSP-centric reporting and analyticsIntegrated Customer-centric, TSP-centric reporting and analytics
Order Systems
Working Together and Moving Forward• Where can CTM help with transportation policy?
– Obligating authority– Transportation Officer Training– Transportation Audits Bulletin– Transportation Reporting– Inbound transportation initiative– Interagency Transportation Groups
26
Information and Upcoming Events• TransPort Integrator: Training Information and Opportunities
– www.gsa.gov/transportintegrator• PayPort Express: Training Information and Opportunities
– www.gsa.gov/payportexpress• TSPs Quarterly Meetings
– Next meeting July 18, 2012• CTM Transportation Town Hall Meetings
– Next meeting first week of August 2012• 2013 Government Transportation Form
– March/April 2013
27
QuestionsPOC/Email Focus Phone
Lois.Mandell@gsa.gov Director, Transportation & Mail Policy, GSA/OGP/Office of Asset and Transportation Management
202-501-2735
Lee.Gregory@gsa.gov Transportation Policy Expert (in-training), Regulations & Training
202-501-1533
Michel.Kareis@gsa.gov Transportation Inbound Initiative 703-785-3013
Derrick.Miliner@gsa.gov Mail Policy 202 -273-3564
Thomas.hendershot@gsa.gov Program Analyst, Freight Transportation Branch
703-605-2528
Scott.Kidd@gsa.gov Chief, Freight Transportation Branch 703-603-8138
John.blanchard@gsa.gov Director, Center for Transportation Management
703-605-2887
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