ALEXANDRIA, Va. (USTCNS) --- A single commercial firm may soon be managing a portion of the Department of Defense's commercial freight.

The Military Traffic Management Command is rapidly moving ahead with a one-year pilot to test the concept.

A contracting board is reviewing bids from commercial firms who seek to manage all military freight in the three-state region of Florida, Georgia and Alabama.

"There has been great commercial interest in the project," said Frank Galluzzo, project manager. "We are certainly seeing that in the bids."

Many large commercial shippers are using third-party logistic firms, or 3PLs, to handle many of their shipping needs, he said.

"This test is the Department of Defense's first venture into the 3PL arena."

Selection of a single commercial carrier will be in the immediate future, said Galluzzo.

MTMC plans to run a pilot to determine the effectiveness of a commercial firm managing all military freight shipments in the three-state region which originates an estimated 50,000 shipments annually.

The military is anticipating the commercial carrier - using the latest automation systems - will provide more efficient and visible cargo movements, said Galluzzo.

Bids for the contract closed Aug. 15.

At a preproposal conference June 6 in Atlanta, 36 companies expressed an interest in the pilot.

The three-state southeast region was selected because it contains installations of all the military services, the Defense Logistics Agency and a MTMC port.

The Third-Party Logistics pilot is part of Management Reform Memorandum #15, which is designed to streamline freight shipments through the greater use of commercial transportation systems and processes.

Bidders have been asked to submit a small-business plan, a concept of operations and a plan for meeting surge cargo in a contingency.

Bids will be evaluated on a best value basis -- considering cost and operational capability to meet Department of Defense shipping requirements. (FROM MILITARY TRAFFIC MANAGEMENT COMMAND PUBLIC AFFAIRS).