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MTMC achieves big budget savings for fiscal year 2000

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FALLS CHURCH, Va. --- The Military Traffic Management Command is doing the same quality transportation work-but it is doing its many functions and missions at less cost.

Nine months into fiscal year 2000, the projected annual savings over budgeted costs are estimated at $47 million.

That is 5 percent of MTMC's projected $877 million budget for the fiscal year ending Sept. 30.

The goal of the savings is both economy of operations and a reduction of customer rates, said Johnnie Fisher, chief, resource management.

"This budget savings is a great credit to MTMC's people and organizations," said Fisher.

"The savings have come in big ways and small," said Fisher. "There are direct savings to our organization and also indirect savings which are passed on to our customers."

Fisher credits much of the impetus for operation savings from a commandwide emphasis on efficient operations.

"We anticipate reinvestment of some of the savings," said Fisher. "The bottom line is MTMC will provide world-class service with $47 million less than we thought we would."

"We are keeping a watch on everything from employee TDY (temporary travel) to our big ocean contracts," said Fisher, a 15-year resource management employee who was named chief in October.

The reductions in employee travel began immediately at the start of the fiscal year Oct. 1.

"We cut everyone's travel across-the-board by 50 percent," said Fisher.

"We found our organizations became much more results oriented as a result."

MTMC had $10.7 million budgeted for employee travel. It was reduced to $5.35 million.

Since then, Fisher said additional travel money has been added to some divisions due to their job functions or their work activity.

Other savings were found in the costs of supplies, equipment, services and labor.

Significant savings were achieved by keeping a close review on labor costs in the command. Worldwide, the Military Traffic Management Command had budgeted for 2,460 work years, or employees, said Fisher. In fact, the command performed the mission with just 2,106.

"That is a savings of 354 work years," said Fisher.

Including benefits, Fisher said an average employee position costs approximately $60,000 annually. The reduction of 354 work years saved in excess of $21.2 million dollars.

Fisher said the work space reductions are part of a continuing reduction in Military Traffic Management Command strength. Between 1995-1998, some 960 positions were eliminated-many by the closure of Eastern Area in Bayonne, N.J., and Western Area in Oakland, Calif.

"It has caused some pain," said Fisher. "In the end, though, we have a cleaner, more efficient process and organization.

"We accomplish our missions at lower cost."

None of the personnel actions have led to an employee's loss of
employment.

Other savings achieved indirect savings for the command but direct savings for MTMC customers.

"We showed a lot more savvy in negotiating the Universal Services Contract 2 over its predecessor-the Universal Services Contract 1," said Fisher.

The cost savings for the yearlong contract are estimated at $30-$35 million, said Fisher. Savings of approximately $15-$20 million will occur this fiscal year.

"These are savings that go directly to our customers such as Army-Air Force Exchange Service, Navy Exchange Service and Defense Logistics Agency," said Fisher.

The Universal Service Contract 02 awards went to 13 ocean carriers Feb. 13. The one-year contracts provide a minimum of cargo to ocean carriers as an incentive to maintain quality liner service, according to Len Priber, of the Joint Traffic Management Office.

Savings have been obtained from organizations and functions throughout the command.

One example is the Operations Division located at MTMC Headquarters.

When the fiscal year began, the division had 195 employees.

Following a reorganization effort, the work of the division was streamlined in organization and processes. The result? An organization with substantially the same work processes but faster in form and smaller in size by 35 employees.

"It's a challenge," said Col. Dave Cook, assistant deputy chief of staff for operations. "We need to be more efficient to give better service to our customers."

The reduced manpower was mostly in redundant process and layering, said John Piparato, deputy of the Operations Division.

"We are more conscious of TDY," said Piparato. "We look at trips harder and consolidate trips."

An example, said Piparato, was the MTMC Symposium held April 4-6 in Atlanta.

"We contracted out the registration," said Piparato. "That saved 15 spaces. We are better stewards of the taxpayers' dollars." (FROM MILITARY TRAFFIC MANAGEMENT COMMAND PUBLIC AFFAIRS).

Office of Public Affairs - transcom-pa@mail.mil
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