USTRANSCOM employees earn national comptroller award

Scott Air Force Base, Ill. - The American Society of Military Comptrollers recently recognized U.S. Transportation Command’s Deployment and Distribution Cost Based Decision Support initiative with a distinguished achievement award.

ASMC awarded the 2012 Large Team Distinguished Achievement Award to the 13-member team from the Program Analysis and Financial Management directorate (TCJ8) and the Joint Distribution Process Analysis Center. 

The award team, co-led by Col. Andy Hird, chief of the Operations Support Division of JDPAC, and Warren Wynns, TCJ8 cost and economic analyst, included Harold Mitchell, TCJ8 liaison to the JDPAC, TCJ8 representatives Jasolyn Evans, Lauri Pierson, Gail Frey, Jessica Krisch, Marjorie Korte, Judith Schomaker, Jordan Richter, and Howard Steffey, along with Michael Arnolds and Cheryl Schultz from the JDPAC. 

The Cost-Based Decision Support team earned recognition for establishing standardized operational cost analysis methods for Department of Defense deployment and distribution.  CBDS, co-chaired by James McGinley, TCJ8 director, and Bruce Busler, JDPAC director, gives customers standardized analytical tools to evaluate costs associated with operational transportation options.

“Recognition of the Cost Based Decision Support team speaks highly of their professionalism and expertise,” McGinley said. “In our current environment where cost always matters in all we do, DOD recognition of this team demonstrates their important contributions to USTRANSCOM in making cost analysis-based decisions.” 

 “Being a cost-conscious organization requires several key components” Busler said.  “A solid set of cost-based methodologies and cost data coupled with measures of cost-performance for operational activities provide the foundation.  But it really requires solid senior leader support as the critical component to drive expectations for cost as part of our processes and decisions.  We’re fortunate in that our senior leadership strongly embrace this cost-conscious effort which makes it easier to gain buy-in for this approach.”

Arnolds, a senior operations research analyst, described how the command previously handled customer requests for operational transportation solutions.  “Previous to CBDS, when a cost question was asked, a person may employ one of our information technology systems, another may utilize contract language, and a third may apply a rule of thumb, all producing differing cost analysis,” Arnolds said. “CBDS codifies and standardizes the methods to determine cost both for how we do business as the Distribution Process Owner and for what it costs the customer.  We need to know both of those to make good decisions.”  The methodologies make good decisions repeatable, standardized, and defendable, Arnolds said.

The effort was not the award team’s alone.  They consulted representatives from numerous organizations, including the transportation component commands and Defense Logistics Agency.

The process of developing standardized analytical tools for each of USTRANSCOM’s transportation and distribution modes involved an array of experts from budget analysis, cost analysis, operations research analysis, transportation operations, logistics management, and acquisition.

The team institutionalized the cost-saving methods by publishing USTRANSCOM Instruction 90-22, which governs D2 CBDS.   “Prior to this effort, there was no standardized, repeatable, and understandable way to determine the financial implications of an operational course of action,” Wynns said.  “What we’ve created is an enduring process, not dependent on individual personalities or on a temporary command emphasis.

 “With this partnership and the Instruction, we have representation from the directorates within the command, our component commands, and DLA as a partner—all very valuable colleagues—who participate in our CBDS methodology development and codification,” Wynns said.  CBDS focuses on applying cost consciousness to operational decisions so the command and the customer can see the impacts before decisions are implemented, Wynns said.

The CBDS team’s informal motto, “Effectiveness first, efficiency throughout,” highlights the importance the team places on meeting the operational requirement, in a way that may not always be the least expensive, but provides the best value and is fiscally prudent, Wynns said. 

“It is fundamentally different from financial cost accounting which is rules driven,” Arnolds said.  “This is a more leadership-driven way of looking at cost in that while you’re following those rules, you’re making good decisions that provide effectiveness in getting the cargo where it’s supposed to be on time, but also in the most efficient manner possible.”

One example of the team’s impact was analysis that showed airlift operations in the US. Central Command Theater could be operated more efficiently using C-130 and C-17 aircraft instead of continuing to most often opt for contracted aircraft, as had been standard practice.  CBDS objectively showed competition created by “gray tail” airlift has avoided over $200 million in transportation costs, without compromising the quality of support to the warfighter. 

In another instance, the team determined it was more cost-efficient to carry additional relatively inexpensive fuel, into Afghanistan, when available, rather than purchase more expensive fuel on site in Afghanistan.  DOD saved $58 million in 2012 with this initiative.

Similarly, in the routine “force flow” conferences, which bring customers together with USTRANSCOM experts to plan unit deployments, planners are now able to assess the costs associated with various transportation options, leading to better-informed operational decisions.

In discussing the team’s success, members are quick to credit people throughout the command and the components who contribute to CBDS’ success.  “No one person has all the answers,” Arnolds said. 

“With representatives from the directorates and the components, the team draws not just on the individuals, but those team members also reach back into their organizations for expertise,” Wynns said. “That has really been instrumental to our success.   We are not a stove-piped or inwardly focused team.  USTRANSCOM directorates, component commands, and transportation partners are represented, so we can get the right kind of information and expertise applied to any particular challenge.”  

-USTRANSCOM-