MTMC works with industry on contracting change
MTMC is proposing to change the way it contracts for its long term, recurring surface transportation, usually referred to as MTMC's guaranteed traffic program, using truck and barge.
In the future, MTMC plans to contract for these services via the Federal Acquisition Regulation. These are the rules and regulations used by all federal agencies to purchase supplies and services.
In the past, transportation services were exempted since the industry was so heavily regulated. Starting in the mid-1990s, Congress eliminated most of this regulation.
MTMC is now responding to the new federal contracting landscape.
"We will assist industry in the conversion from a tender-based system for those long-term recurring movements that are now being transitioned to the Federal Acquisition Regulation contracts," said Maj. Gen. Kenneth L. Privratsky, commander.
Privratsky made the comment Aug. 2 at a meeting of the National Defense Transportation Association's Surface Transportation Committee in New Orleans.
"We will host presolicitation and preproposal conferences to explain the contract and the bidding requirements," said Privratsky.
Currently, MTMC uses Non-Federal Acquisition Regulation procedures.
"We are currently out of specification," said Privratsky. "With this change, we bind both parties -- the government and the carrier. No one can walk away."
The proposed change will alter the method of buying transportation services MTMC has used for over 35 years.
Since the deregulation of the motor carrier industry, most major shippers and carriers have gone to contractual arrangements, said Privratsky.
MTMC leaders are enthusiastic about the change.
"It truly represents a paradigm shift in both our manner of contracting and our way of doing business," said John Piparato, senior civilian traffic manager in MTMC operations.
The change will make things easier for trucking and barge transportation providers in the United States.
"It provides clearer rules for the purchase of surface transportation," said Joe Judge, a traffic management specialist in MTMC operations.
Industry committee members expressed cautious support for the proposed change.
"Initially, I think it is a change for the better," said Gail Snodgrass, manager of business development, Union Pacific Railroad.
"By awarding the contract to one or more carriers through the Federal Acquisition Regulation contract process, the carrier can anticipate the needs and ensure equipment is available to support the awarded shipments."
Currently, notification is made by a phone call, she said.
"It makes it difficult for the rail industry to participate in guaranteed traffic," said Snodgrass.
Under the existing system, carriers may get as little as four hours notice to provide transportation assets, she said. With multiple shipments on a corridor, the railroads may be able to anticipate future shipments.
The lack of motor carrier knowledge about the Federal Acquisition Regulation is a concern of Dave Larson, military/government representative of the giant Landstar trucking company.
"The motor carrier industry has had a lack of experience working with the Federal Acquisition Regulation -- they have heard horror stories.
"General Privratsky has assured us the transition can be a smooth one."
One concern Larson has is increased paperwork.
"There could be more paperwork than what we have with the automation of guaranteed traffic -- the long-term contracts," said Larson.
"The concern is we got out of the massive paperwork drill with long-term contracts -- there is a concern we are going back."
This should not be a problem, according to MTMC officials.
Acquisition reform has significantly reduced the amount of paperwork previously associated with Federal Acquisition Regulation-based acquisition, said Christina Dossman, a MTMC contracting officer.
"We will make this as transparent as possible," said Dossman. "In developing our contracts and contracting procedures, we're going to try and mirror the current MTMC Guaranteed Traffic process as much as possible.
The changes recognize recent changes in the law such as the demise of the Interstate Commerce Commission, according to Col. Sheila Toner, MTMC's principal assistant responsible for contracting.
"The result will be a system similar to ocean liner transportation."
The proposed truck and barge contracting will resemble that used in ocean liner transportation, said Toner. Contracts for long-term agreements will be awarded under Federal Acquisition Regulation contracting procedures such as is now done for the Universal Services Contract #02 for ocean liner services. However, contracts for individual, non-recurring shipments move via ocean government bills of lading.
"We expect the transition to be gradual to ease the transition for both carriers and customers," said Toner.
There are several exceptions to the proposal.
· MTMC will continue to use a voluntary tender procedure for shipments not covered under a long-term contract. Those government bills of lading-based movements continue to be recognized as exceptions to the Federal Acquisition Regulation.
· Not affected by the proposal are military household goods shipments which are covered by a different law. However, some household goods contracts are already being conducted under the Federal Acquisition Regulation.
Official notification of the proposed change was published in the July 21 issue of the "Federal Register."
"We are developing a Web site to post information relative to the transition," said Dossman. "It will include the questions we receive and their answers."
For additional information, contact Dossman at (703) 428-2052.
MTMC will accept comments on this proposal for a 60-day period ending Sept. 21.
Comments should be addressed to:
Headquarters, Military Traffic Management Command
ATTN: MTAQ-JT, Room 12N67 (Ms. Dossman)
Hoffman Building II
200 Stovall Street
Alexandria, VA 22331-5000
(FROM MILITARY TRAFFIC MANAGEMENT COMMAND PUBLIC AFFAIRS).
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