Invoicing 13 Feb 19

Agenda 3 Year Limit for Payment of Transportation Diversions Bunker Surcharge Air Fuel Surcharge Fuel Surcharge

3 Year Limit for Payment of Transportation U.S. Code, Title 31, Sec. 3726 Payment shall be allowed only if it is received not later than 3 years (excluding time of war) after the later of the following: date of accrual of the claim date payment for transportation is made date a refund for an overpayment for transportation is made date a deduction under subsection (d) is made (d) Not later than 3 years after the time a bill is paid, the Government may deduct from an amount due a carrier or freight forwarder an amount paid on the bill that was greater than the rate allowed

Diversions (Item 526) A diversion is when a customer receives new orders or amendments creating a change from the original destination while the shipment is intransit or located at the POE/POD

Diversions Cont. Diversions do not include: Shipments in SIT at destination When customers elect to live outside the rate area/region where they are assigned When a change in destination will result in a new mode of transportation (e.g., over ocean movement, change in COS, etc.) Shipment will be terminated and a new shipment created

Invoicing Diversions Refer to the DTR, Part IV, Chapter 402, para. E.4 for individual diversion scenarios and invoicing instructions Item Code 526A: A Diversion charge of $41.68 per shipment shall apply Item Code 526B: Additional Port Handling charges may apply. Bill for actual costs incurred supported by a copy of the port agents invoice Item Code 526C: Storage charges may apply. Bill for actual costs incurred supported by a copy of the port agents invoice Item Code 533A: Linehaul transportation charges

Bunker Surcharge (BSC) Bunker surcharge is an extra charge sometimes added to ocean TSP rates to offset the additional cost of the ships bunker fuel beyond the normal cost included in the ocean freight rate Applicable only to Code 4 and Code 7 shipments Allowed as a pass through charge Charges based on port to port (no land cost is included) Supported by an Ocean Bill of Lading (OBL)/Invoice

Calculating Bunker Surcharge Cost Calculation: Total cost of the BSC for the SEAVAN ÷ total cubic feet used in the SEAVAN × cubic feet used per shipment = Individual Shipment BSC

Air Fuel Surcharge (Item 231A) Air Fuel Surcharge is an extra charge that is charged to the TSP by the air carrier Applicable only to Code 6 and Code 8 shipments

Invoicing for Air Fuel Surcharge Invoice utilizing Item Code 231A for actual costs incurred supported by a copy of the invoice

Fuel Surcharge (Item 513) Fuel Surcharge is a surcharge assessed to any inland transportation segment within CONUS, Alaska, and Hawaii where a shipment is transported via domestic linehaul

Calculating Fuel Surcharge Cost Calculation: Linehaul rate × shipment weight (cwt) × fuel related rate adjustment = FSC

Invoicing for Fuel Surcharge Item Code 513A (Linehaul Fuel Surcharge): Fuel Surcharge rate to apply to the domestic linehaul portion of the shipment based on actual origin pickup date Item Code 513B (Delivery to/from SIT Fuel Surcharge): Fuel Surcharge rate to apply to shipments delivering into SIT domestically based on the actual origin pickup date Fuel Surcharge rate to apply to shipments delivering out of SIT domestically based on the actual delivery date

Fuel Surcharge Policy and Table TR-12 Fuel Related Rate Adjustment Policy is located at: https://www.sddc.army.mil/domTrans/Pages/default.aspx Click on the Fuel Surcharge tab Select the TR-12 FRA Policy (2) Fuel Surcharge Table is located at: https://etops.sddc.army.mil/pls/ppcig_camp/fsc.output

U.S. Bank Global Transportation Third Party Payment System (TPPS) Update for Pacific Households Goods Workshop Will Shih Government Project Manager

DoD Freight/HHG TPPS Contract Zero cost to Government and carriers pay a standardized fee for same-day payment Provide a commercially available web-based service that automates and integrates the entire audit, approval and payment cycle for transportation related expenses Allow federal agencies and their providers to conduct business through a single portal, creating a full audit trail that ensures compliance with policies and regulatory requirements Provide timely and accurate payments—30 day payment terms at no interest Cyber security remains our number one priority. U.S. Bank is the 5th largest bank in the U.S. and rated as one of the safest banks in the world Pre-audits every bill, e-bill capability; offsets and business rules Customized government accounting detail Historic detailed payment data repository—maintain for DoD audit Interfaces with all different DoD systems—DSS, GFM, DPS, IBS, etc. 10,000+ DoD users; Interfaces with more than 4,400 carriers Contract Key Facts Includes 1100+ DoD locations, Departments of State, Homeland Security, Health and Human Service Most Gov’t Agencies from Citi have been also recently added Current USTRANSCOM Contract Awarded 1Jan15 1 year contract, 4 option years (1Jan 2015 – 31Dec 2019) Option years extended in 2016-2018;1 year transition period

How it works 3 models for Invoicing Matching/Shipper/Carrier 17

Syncada PPF Updates for Pacific Region Direct Procurement Method (DPM) Moves has been implemented 24 total DPM sites, Over 150 DPM contractors Pacific: Pearl Harbor, Guam, Anchorage—processing Yokota and Yokosuka—On hold due to foreign currency U.S. Bank working closely with DDS to ensure successful implementation of project New chart of accounts HHG and DPM Automatic valid LOA assignment is on average > 90%

Dedicated Government Team U.S. Bank supports the thousands of Government sites and TSPs with a dedicated team of experienced individuals: Sabine Hand OCONUS Account Manager 4 years experience Bilingual Jeff Lineberger Vice President 11 years experience Ret. Lt. Col. (23 Years) William Shih Project Manager 7 years experience B.A. in Finance Jeff Derrick Sr. Relationship Manager 3 years experience Ret. Col. (26 Years) Scott Guzek Operations Manager 6 years experience M.B.A. Adam Chocola Account Manager 4 years experience M.B.A. Sean Joyce Relationship Manager 19 years experience With U.S. Bank 32 years Teresa Gabrielle Account Manager 6 years experience Bilingual James Chenelle Business Analyst New team member C++ Developer U.S Bank Operational Help Desk Support Line Multi-Member team 20+ years experience Cheryl Garcia Senior Vice President 30 years experience MBA and CPA 19

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