ALEXANDRIA, Va. (USTCNS) -- In a major shift of the way it does business, the Military Traffic Management Command has decided to let private enterprise manage its containers and leasing operations.

All 10,000 of them.

In the future, MTMC's containers will be leased from private enterprise. They will be managed by a single commercial contractor.

The decision to contract for container management was made May 15 by Maj. Gen. Kenneth L. Privratsky, Commander.

"We looked at the way we managed our common user containers," said Tom Strausbaugh, Chief, MTMC's Intermodal Equipment Branch. "We also looked at the way they are handled when they leave our hands - and what happens to them.

"We also looked at the business process associated with providing leased containers to Department of Defense customers."

A business case analysis was performed by Logistics Management Institute, of Mclean, Va.

Under the new concept, MTMC will gradually withdraw from owned containers.

In its place, a single private contractor will be responsible for maintaining a specified number of containers at key facilities and geographic locations and providing leased assets. A contract could be effective by Oct. 1, 2002.

MTMC is now developing a statement of work that will support a contract for placing commercial containers at predesignated locations and providing leasing services to Department of Defense customers.

The contractor will be responsible for maintaining container serviceability and replacing them as they are shipped.

Where are the Department of Defense containers now?

"The containers are supposed to be at the Operations Support Command managed ammunition depots in the continental United States," said Strausbaugh.

"The reason you want them there is for quick reaction to a contingency and to be used to move certain peacetime cargo," said Strausbaugh.

In practice, however, the container and its ammunition moves "one way," said Strausbaugh. As a consequence, containers once delivered overseas may remain there for prolonged periods. Often, the containers are used for purposes other than moving ammunition.

MTMC efforts to manage the containers has been frustrated.

Containers used to move ammunition must be in near-perfect condition. In addition, returning empty containers is expensive.

"Considering the average age of the containers is 12 years," said Strausbaugh. "you can see the problem we have."

As many as one-quarter of the containers are considered unserviceable as regards meeting ammunition hauling standards. In addition, most of the containers are not where they are needed.

Currently, MTMC has 37 employees associated with the MTMC container program. With a contractor performing container management, MTMC will manage the same program with six employees.

What will happen to the Department of Defense containers?

Containers that are still serviceable will be transferred to other military users. Those containers in poor condition will be disposed of through the Defense Reutilization & Management Office or offered for non-transportation uses such as storage, said Strausbaugh.

The proposed contracting process is expected to take several months.

For additional information, contact Strausbaugh, at strausbaught@mtmc.army.mil or (703) 428-2436.
(FROM MTMC Public Affairs Office)