[Federal Register Volume 64, Number 14 (Friday, January 22, 1999)]
[Notices]
[Pages 3488-3490]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1453]
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DEPARTMENT OF DEFENSE
Department of the Army
Electronic Transportation Acquisition
AGENCY: Military Traffic Management Command, DoD.
ACTION: Notice (Request for Comments).
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SUMMARY: The Military Traffic Management Command (MTMC), Product
Management Office (PMO), CONUS Freight Management (CFM) System is
proposing to migrate its business operating system from an aged DOS-
based, batch architecture to a real-time, internet-based software
design. Concurrently, the PMO CFM proposes to incorporate streamlined,
simplified transportation and payment procedures. These procedures
mirror current Department Of Defense (DOD) transportation policy
initiatives, i.e., the re-engineering of Defense transportation and
payment documentation processes identified within Dr. John Hamre's
(Deputy Secretary of Defense) Management Reform Memorandum (MRM) #15.
To replace CFM's current operating system (Field Module), we
propose a unique suite of internet-based functionality, referred to as
Electronic Transportation Acquisition (ETA). ETA is a DOD electronic
commerce resource capable of generating shipment requirements,
acquiring carrier rates, and transmitting transportation and payment
information for DOD freight shipments. The focus of this Federal
Register notice applies to the two functional areas currently
undergoing testing. The first functional area is CFM's newly developed
, web-based transportation acquisition methodology called Spot Bid.
Spot Bid provides users with the initial automated support for freight
movements allowing participating carriers to bid on freight movements
other than Negotiated and Guaranteed Traffic (GT) shipments. The second
functional area talks to the CFM interface with Usbank's payment system
called Power Track. Power Track is a 3rd party payment system that
facilitates the transfer of transportation payment information
contained in an electronic bill-of-lading between the shipper, carrier,
USbank, and the appropriate Defense Finance and Accounting Service
(DFAS) payment center. A description of ETA's suite of functionality
and specific details, business procedures, and preliminary results of
the tests regarding spot bid and Power Track are identified in the
Supplementary Information.
Before the effective date of any proposed procurement policy or
procedure, 41 U.S.C. 418b requires an agency to give members of the
public up to 60 days to comment on the proposed policy or procedure.
Although Electronic Transportation Acquisition is in essence a
technical change to an already existing spot bid procurement process
and thus Federal Register publication may not be required, we believe
it is important to provide the transportation industry and members of
the public an opportunity to assist us in developing, improving, and
streamlining transportation procurements and processes.
DATES: Comments must be submitted on or before March 23, 1999.
ADDRESSES: Headquarters, Military Traffic Management Command, ATTN:
MTOP-TS, 5611 Columbia Pike, Falls Church, VA 22041-5050.
FOR FURTHER INFORMATION CONTACT: Mr. Steve Lord, e-mail, lords@baileys-
emh5.army.mil, Telephone (703) 681-1185, Fax (703) 681-9871.
SUPPLEMENTARY INFORMATION:
Background of ETA
Approximately two years ago, it became apparent that the next
logical step in CFM's incremental development strategy was to migrate
the CFM architecture from a rapidly aging DOS-based, batch process, fat
client-server system to an Internet-based, real-time, on-line
transaction process. The rapid advent of Internet technologies,
applications, new dynamic software languages (such as Java), coupled
with the rapid advancement of interactive databases, and tremendous
growth of on-line electronic commerce made it clear that the benefits
of an Internet-based CFM far outweighed the potential disadvantages.
Moreover, the ETA modernization strategy directly supports DOD
objectives. Although this notice will focus on Spot Bid and the use of
USbank's Power Track payment system, we believe it is beneficial to
provide freight carriers a brief description of what current functions
CFM proposes to move to the web.
In summary, ETA's suite of functionality includes three core
freight-shipping applications: (1) Tenders (Guaranteed, Negotiated and
Voluntary); (2) Spot Bid; (3) and Worldwide Small Package. In addition,
it includes a variety of transportation support tools and references
such as GT Bid Submission, Transportation Facilities Guide,
Transportation Discrepancy Reports, and Carrier Added Value Suite
(CAVS). CAVS consists of three sub-components: (1) tender view; (2)
completed shipments; (3) and bill-of-lading view.
Spot Bid Procedures
Definition
The PMO CFM is currently developing a spot bid implementation
schedule which identifies a proposed phased roll-out to begin in Spring
99. Spot Bid is a single consignment of one or more pieces from one
consignor at one time, at one origin address receipted for in one lot
and moving to one consignee at one destination address. Included within
this definition are; split pickup at origin and destination points and
stop in transit to partially load and/or unload.
The Spot Bid function supports the DOD shipper's ability to provide
movement requirements for a single shipment on the Internet. Shippers
can elect to offer the shipment to one or all modes i.e., Spot Bid
supports all modes. Following the posting of the requirement on the
web, MTMC-approved freight carriers can access the shipper's movement
request, review it, and elect to bid on it.
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As part of the shipment movement request, a ``closing date and
time'' is provided which prevents carriers from bidding on shipments
after a certain time identified by the shipper. Carriers can submit
their bid, cancel the original bid, and resubmit a new bid during the
indicated open period. Bids are only accessible by the shipper
following the closing date/time. Once the bids have been reviewed, the
shipper can elect to award the shipment. The shipper/MTMC then posts
the award information on the web and all participating bidding carriers
can review their competitors' bids and identify which carrier, if any,
was awarded the traffic. The Spot Bid system then provides the shipper/
MTMC with the needed tools to generate the bill-of-lading data and
hardcopy that accompanies the conveyance. Presently, all bid times are
based on Eastern Time. Therefore, it is critical that bidding carriers
outside EST account for the time difference(s). It is MTMC's objective
to provide our freight shippers/customers with an easy, effective and
robust tool that will help them acquire rates and services while
providing our industry partners with a simplified rate structure. In
meeting those objectives, we will potentially increase new business
opportunities and allow carriers to identify and capitalize on back-
haul opportunities.
The Spot Bid function can be used for all freight shipments other
than Negotiated and GT business. Following the Spot Bid process, the
shipper has the discretion to use either Spot Bid or an existing
voluntary tender rate--if available. The ``bid'' serves as the
carrier's offered rate; therefore the submission of a 364-R tender is
no longer required. Instead, the carrier is required to submit a single
factor rate that is inclusive of linehaul, accessorial services, and/or
special-permit charges (if applicable). Additionally, Spot Bid does not
require the shipper/MTMC to request specific equipment from the
carrier. If there is a need to do so, the shipper/MTMC will annotate
the equipment requirement in the bid proposal's ``Remarks'' block.
However, the business process is changing somewhat in that we are
requiring the transportation providers, in lieu of the shippers, to
assess what type of equipment is appropriate and/or available for the
shipment.
Technical Requirements
Quite simply, both shippers and carriers only require hardware
capable of running the latest generation of web browsers (available
freely on the Internet) and access to the Internet. Specifically, a
laptop or Personal Computer (PC), a minimum of 486, with modem or
network access to the Internet is required. Java-capable Internet
browsers, e.g. Netscape Navigator or Communicator 4.0 or Microsoft
Internet Explorer 4.0, are required. Versions lower than 4.0 should not
be used and browser upgrades are available for free on the Internet. A
current and operational e-mail address will be required as a means of
communication between MTMC/CFM, the shippers and carriers. E-mail will
be utilized to transfer user password information. In that light, the
suite of functions within ETA will be accessible through a single login
identification and password process. In summary, rights and privileges
to access ETA's functions, e.g., Spot Bid, will be granted through the
issuance of digital certificates to both Government and industry
representatives. Further information and procedures will be provided to
all CFM ETA users in the next few months.
Spot Bid Tests
MTMC continues to, test CFM Spot Bid at eight CONUS sites.
Specifically, Anniston Army Depot, AL; DCMC Boston, MA; Ft Bragg, NC;
Sunnypoint, NC; USPFOs Oklahoma, Kansas, and Texas; and Nellis AFB, NV
are currently using Spot Bid. CFM is coordinating test procedures with
Navy's Fleet Industrial Supply Center (FISC), Norfolk, VA and Naval
Weapons Station (NWS), Yorktown, VA. Eighteen carriers are
participating in the test (13 motor, 3 rail, and 2 air carriers) and to
date, approximately 100 shipments have moved under Spot Bid while over
300 bid offers have occurred. The balance of offers that did not move
under Spot Bid were attributable to either technical or administrative
start-up problems, too little time for carriers to prepare a bid, i.e.,
bid window was too short, or bids were higher than existing tender
rates.
Feedback from the test sites has been very positive from both
carriers and shippers. Spot bid has been described as a flexible, user-
friendly, and effective tool for acquiring rates and services via the
Internet. Admittedly, due to the small population of test sites and
carriers, it is premature to project cost savings in the form of
transportation costs. Many test sites indicated that they believe the
overall effectiveness of Spot Bid will increase vastly when we offer
the system to all MTMC-approved carriers and expand the Government user
base. Consequently, the issues alluded to above, regarding higher costs
and lack of bidding carriers, will be offset by greater participation
and competition. In addition, test carriers' comments have been very
encouraging as well. The reduced administration in providing a bid, the
ability to price based on an order versus a forecast, and ease of use,
are just a few of the positive descriptions. Test carriers' concerns
have focused on the short bid window that is afforded them by the
shipper and the lack of notification of a bid. Coordination and
training with the shipping community coupled with MTMC management
oversight and CFM technology will remedy these problems. The CFM PMO is
working closely with the MTMC Deputy Chief of Staff for Operations to
coordinate Spot Bid management oversight and customer support issues.
MTMC personnel will support both Government and industry users of Spot
Bid. In addition, CFM is actively incorporating many of the specific
recommendations that both Government and carrier representatives have
provided throughout the test period.
In summary, both Government and industry participants have so far
fully embraced the migration of this business process to the internet,
and most importantly, have validated to us that the internet is the
next logical area to conduct freight transportation acquisition
business. Clearly, we encourage comments from the entire carrier
industry to help us identify all issues associated with our Web-based
spot bid process.
USBank PowerTrack Payment System
Background
This system is currently undergoing an evaluation process for
implementation. MTMC is continuing to evaluate the test results. Based
upon the results of this evaluation, MTMC will determine the
implementation parameters in concert with prototype efforts. In
Management Reform Memorandum #15, Dr. John Hamre identified a series of
initiatives to address perceived shortcomings of the transportation and
payment processes. One of the initiatives included developing an
improved payment mechanism for surface transportation. The goal is to
reduce data requirements that are currently necessary for payment, and
increase data accuracy. At the same time, Dr. Hamre envisioned paying
commercial carriers for services provided as soon as possible.
Description
Power Track is an automated on-line payment processing and
transaction tracking system that supports logistical transactions.
Power Track consists of five primary functions: (1) electronic
[[Page 3490]]
data transmission; (2)-payment approval process; (3) electronic payment
and billing; (4) communication for dispute resolution; (5) and
customized data analysis.
Technical Requirements
Power Track software requires a 486 or higher laptop or PC (Pentium
and higher is preferred). Internet connectivity is needed. Currently,
Power Track supports a single browser only, i.e., Microsoft Internet
Explorer 4.0 or higher. USbank is planning to modify their browser
requirement to include multiple browser options in the near future.
Lastly, the file size that Power Track loads on each user's computer is
no more than 4MB. Questions pertaining to Power Track's technical
requirements should be addressed to: Everett Doolittle, Vice President,
Business Development, USbank, 1010 South Seventh Street, Minneapolis,
MN 55415, telephone 612-973-6156, or www.usbank.com/powertrack.
Test Procedures and Business Process
In summary, the Power Track software is resident with the
shipper(s), carrier(s), and USbank. How does Power Track integrate with
the Defense transportation payment process? The CFM shipper generates a
bill-of-lading (BOL) and transmits the data to the CFM Host. The CFM
Host transmits a rated BOL to Power Track. Following the delivery of
the shipment, the carrier is required to provide Power Track with
Notification of Delivery--either electronically or telephonically. The
notification elevates the shipment to a specific status level in Power
Track. Shipment status are viewed regularly by both Government and
carrier personnel. Once the shipment is delivered, the shipper and
carrier can review the transportation payment amount that Power Track
is preparing to pay the carrier. Again, this amount is based on the
original rated BOL from CFM. If either party disagrees with the amount,
they can notify the other party and reconcile the dispute on-line prior
to payment. Early resolutions to payment disputes reduces greatly the
number of carrier rebuttals, promotes dialogue between the applicable
stakeholders, i.e., shippers and carriers, and results in an accurate
payment the first time. Once the shipper certifies the shipment for
payment, USbank pays the carriers without the need of an invoice. The
carrier's costs associated with processing and managing invoices is
dramatically reduced due to this automated payment process. If a change
in payment is required following the original payment, the Power Track
system generates an Electronic-bill (E-bill) and initiates payment
based upon that amount agreed upon between the carrier and shipper.
Monthly, USbank summarizes the shipments and payments, stemming from a
specific site, and provides the information to the shipper(s)-
authorized designee, for review and approval. Upon approval, the
shipper forwards the information to the appropriate DFAS payment
center, which in turn pays USbank. Therefore, DFAS issues a single
payment that reflects numerous shipments. Consequently, carriers are
paid in 1-3 days and the carrier and Government resources needed to
generate and pay, a number of invoices is greatly reduced.
The PMO CFM has been testing Power Track at SPAWAR, San Diego, CA;
DCMC Seattle, and DCMC Cleveland since September 1998. We began testing
at Ft Campbell, KY in December 1998. Approximately eleven motor and air
carriers are participating in the test. Each participating carrier pays
Power Track a percentage of each freight bill. To date, approximately
175 shipments have been generated and on the average, test carriers
have successfully received payments between 24-72 hours following
delivery. The feedback from both carriers and government users has been
very positive. Shippers have indicated that Power Track is extremely
user-friendly, and embrace their newly empowered authority to certify
payments. Shippers' have requested a larger population of carriers to
participate with Power Track. USbank is working the issue. Test
carriers' feedback has been very positive as well. They have
acknowledged receiving payments between 24-72 hours and, similarly,
have found the Power Track system to be very user friendly.
Conclusion
We encourage you to access the CFM website and view the latest
information. It is a very functional homepage, i.e.; it is kept up-to-
date with the latest CFM News and ETA applications used by Government
and industry. The site is accessible through either MTMC homepage
www.mtmc.army.mil--click on ETA) or directly to CFM homepage at
www.mtmc.army.mil/transys/cfm. Under ``What's New'', we have provided a
Federal Register Comments Form. Feel free to utilize this form in
providing your response to us.
The PMO CFM will host a Carriers Symposium on February 8-10, 1999,
in Atlanta, GA. The symposium is intended to provide commercial
carriers with the latest status of our web development efforts, provide
you with the knowledge and tools needed to use ETA's functions (as
applicable), and solicit your feedback to ensure we are moving forward
smartly. This educational effort will continue at the 1999 MTMC
Symposium to be held at the Adam's Mark hotel in Denver, CO, March 29
through April 1, 1999. Reservations are now being accepted through
MTMC's Conference Contractor ``Connections'' at 404-842-0000.
Connections hours are Monday through Friday, 9:00 AM to 5:30 PM EST. Do
not call The Adam's Mark Hotel for reservations, as they will refer you
directly to Connections.
In addition, we will be posting a ``Playground'' on our website for
both Government and carrier representative's to access and use. The
intent of the playground is to familiarize and train users of ETA on
the different CFM applications/functions that either are, or will be,
available. Most importantly, it provides users with a platform to
provide feedback to the CFM PMO so we can ensure we are programming a
system that is aligned with your interests and needs.
Regulatory Flexibility Act
Implementation of this proposed procurement procedure concerning
the movement of DOD freight involves public contracts and is exempt
from the Regulatory Flexibility Act, 5 U.S.C. 601-612. This proposed
procurement procedure is not rule making within the meaning of the
Administrative Procedure Act or the Regulatory Flexibility Act.''
Paperwork Reduction Act
The Paperwork Reduction Act, 44 U.S.C. 3051 et seq. does not apply
because no information collection requirement or records keeping
responsibilities are imposed on offerors, contractors, carriers, or
other members of the public.
John Piparato,
Deputy, DCSOPS.
[FR Doc. 99-1453 Filed 1-21-99; 8:45 am]
BILLING CODE 3710-08-P