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Outdated policy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

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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

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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

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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

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GSA Transportation Management

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•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)

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PayPort Express

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“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.”

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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

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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

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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

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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

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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