U.S. General Services Administration Federal Acquisition Service Freight Management Branch: Ship anything, anywhere, anytime Center for Transportation Management Federal Acquisition Service Contractors Transportation Management Association Conference July 8th, 2015 Federal Acquisition Service Introduction Who we are: GSA’s Freight Management Branch What we do: Manage a freight management program and offer freight consulting services for federal organizations When to use the program: Anytime a federal organization needs to ship freight Where to obtain our services: Through our automated solutions and self-service websites Why use the program: Let us show you… 2 Federal Acquisition Service Freight Management Branch’s Program Provides a framework for fulfilling worldwide freight shipping requirements of federal organizations Offers rate management services for general commodity freight Has the authority to acquire transportation rates on behalf of other Federal agencies Freight can be shipped to all 50 states, Washington DC, U.S. territories, and international destinations Transportation Service Provider (TSP) approval process and compliance enforcement managed by GSA Operates through a non-FAR based approach by using freight tenders Freight tenders are obtained through Request for Offers (RFOs), where GSA Freight invites approved freight TSPs to submit freight tender rates 3 Federal Acquisition Service What are freight tenders? A tender is an offer from a transportation service provider (TSP) to transport goods From one point to another For an agreed upon rate Applicable between the TSP and the agency listed in the tender TSP(s) submit tender rates to GSA for potential and expected agency freight movements A bill of lading (BOL) document is the contract of carriage between shippers and TSPs Contains tender rate and shipment details 4 4 Federal Acquisition Service Tenders vs. Contracts When to use tenders (GSA Freight) If Agencies/Bureaus; Need to quickly schedule a shipment and do not have sufficient time to identify or solicit a FAR contract; Have shipments recurring between designated places, but do not expect consistent volumes to obtain favorable tender rates; Are not in a position to make a definite volume and shipment commitment under a FAR contract When to use contracts (FAR) If Agencies/Bureaus; Will ship consistent volumes in reoccurring traffic lanes; Have sufficient time to follow FAR contracting procedures, and negotiate a contract with a transportation carrier; Are able to handle the requirement to set up and manage the FAR contract 5 Federal Acquisition Service Program Savings and Benefits Program services offered at no charge to participating federal organizations Average freight rate savings for participants: 19.5% over other government agency rates, and 51.9% off commercial rates (Source: Runzheimer July 2011) Rates are priced for freight-all-kinds (FAK) shipments, Class 50 No minimum shipment volume, tonnage or purchase requirements to use program Full replacement value (up to $100,000) on all shipments Decades of freight transportation expertise Compliance with federal transportation laws and regulations Online automated solution that offers: • • Shipment creation and booking capabilities through TransPort Integrator Freight bill prepayment-auditing, payment, and accounting functions through PayPort Express (PPE) 6 Federal Acquisition Service Department of Energy Specifics GSA procured and negotiated LTL (Less Than Truckload) rates on behalf of the DOE The rates are effective from January 1, 2015 through December 31, 2015 The rate prices are state to state shipments moving FAK (Freight All Kinds) class 50 The rates were formatted and loaded into the DOE ATLAS system DOE has the option to extend the rates for 1 year. If exercised, the expiration of the rates would be December 31, 2016 7 Federal Acquisition Service Transport Integrator (TPI) TransPort Integrator (TPI) is GSA’s web-based transportation management solution (TMS) TPI provides a suite of services and advanced management tools enabling freight rate shopping and shipment execution Access to GSA’s freight tender rates 24/7 Industry leading business intelligence and reporting tools Provides a common procurement platform utilized by both government and industry stakeholders Provides shipment transparency and increased accountability There is no cost for federal customers to utilize TPI! 8 Federal Acquisition Service PayPort Express (PPE) PayPort Express (PPE) is a web-based third-party payment service for freight and parcel-related expenses PPE automates the transportation shipment pre-payment audit, payment, and accounting functions for agencies and their TSPs Converts manual paper processes to an online electronic process Offers detailed financial and transportation reporting Provides compliance with payment and audit regulations Reduces the need for contracted pre-payment auditing services Eliminates prompt payment fees through accurate and timely payments There is no cost for federal customers to utilize PPE! 9 Federal Acquisition Service Looking Forward: Category Management Category management focuses on defining and organizing products and services that behave in a similar manner The Federal Government is applying this strategy to buy smarter and more like a single enterprise Category management involves: Identifying core areas of spend Collectively developing heightened levels of expertise Leveraging shared best practices Providing acquisition, supply and demand management solutions Category management enables us to: Eliminate redundancies Increase efficiency Deliver more value and savings from the government’s acquisition programs 10 Federal Acquisition Service Additional Partnerships and Services 11 Federal Acquisition Service Federal Strategic Sourcing Initiative: What is FSSI? FSSI is an OMB-sponsored program focused on analyzing all costs associated with a product or service under management, in order to generate savings through: Requirements development Acquisitions Behavior changes FSSI solutions are developed through a cross-government team that uses a structured and collaborative process to: Analyze an organization’s spending Compare the results to best in-class practices Then uses this information to make business decisions about acquiring and using commodities/services more effectively and efficiently An example of a very successful FSSI is the Third Generation Express and Ground Domestic Delivery Services (DDS3) for small package delivery shipping 12 Federal Acquisition Service Domestic Delivery Services (DDS3) DDS3 Program features include: • Domestic delivery services for both air and ground shipments: o Between the 48 states and the District of Columbia o From the 48 states to Alaska, Hawaii, and Puerto Rico • Waived fuel surcharges for all express and ground parcel shipments • Money-back guarantee for all air and ground services • Online air bill creation, package tracking, and account management Participation in the DDS3 BPA procurement vehicle delivers: • Tiered discounts – as the collective volume increases, so do the discounts • Business intelligence – enables more informed business decisions, such as saving 60-70% by purchasing ground over express shipments • Best practice solutions – for better program management and increased efficiencies 13 Federal Acquisition Service GSA Transportation Audits: Auditing Transportation Bills…It’s the Law Pre-payment audits • • • Mandated by Public Law 105-264 under the “Travel and Transportation Reform Act of 1998” (102-118.265) Require that all federal agencies conduct pre-payment audits of all transportation billings By auditing prior to payment, agencies can avoid excess transportation charges, and use the consequent savings to procure additional transportation services Post-payment audits • • • Mandated by “The Transportation Act of 1940 as amended 31 USC 3726” (102-118.415) Post-payment audit occurs once a transportation service provider (TSP) bill has undergone a pre-payment audit and has subsequently been paid These audits ensure that the bills are valid and proper, while in compliance with rates, tariffs, quotations, agreements, tenders, and/or other applicable rate authorities 14 Federal Acquisition Service Going Green: Partnering with EPA SmartWay Voluntary program created by US Environmental Protection Agency (EPA), which helps organizations become environmentally responsible Provides agencies a tool to comply with Executive Order 13514 Helps modify logistics operations to improve efficiency, and reduce Scope 3 Emissions to meet their Strategic Sustainability Performance Plans On March 11, 2011, GSA became the first Federal Civilian Agency to become a certified SmartWay Transport Partner for efforts to reduce greenhouse gases and other air pollutants, and improve fuel efficiency within the supply chain 15 Federal Acquisition Service For Further Information: Additional Partnerships and Services FSSI/Domestic Delivery Service (DDS3): www.gsa.gov/dds GSA Transportation Audits: www.gsa.gov/transportationaudits OGP Transportation Officer Training: http://transportationofficer.golearnportal.org/ EPA SmartWay Transport Partnership: www.epa.gov/smartway/index.htm 16 Federal Acquisition Service Contact Information Scott Kidd – Chief, Freight Branch – Email: scott.kidd@gsa.gov – Phone: 703-603-8138 Rebecca Silver – Program Advisor – Email: rebecca.silver@gsa.gov – Phone: 571-289-6696 Brian Assia – Team Lead – Email: brian.assia@gsa.gov – Phone: 202-557-1038 17