Office of Governmentwide Policy U.S. General Services Administration Henry Maury – Program Director Travel and Transportation Management Policy (MTT) Office of Travel, Transportation and Asset Management Before You Ship Introduction to the Federal Transportation Policy

Agenda Topics Before you Ship Check the FMR for Transportation Regulations What are the Federal Transportation Regulations? Why is this important? Transportation Study What’s new in Transportation Policy Contacts Questions

FEDERAL MANAGEMENT REGULATION (FMR) Major Topics of the Federal Management Regulation (FMR)  Federal Advisory Committee Management  Management, Disposition, Donation, and Sale of Excess and Surplus Personal Property  Motor Vehicle and Aircraft Management  Real Estate Acquisition and Disposal  Facility Management  Safety and Environmental Management  Transportation Management  Mail Management  Records Management

FEDERAL MANAGEMENT REGULATION (FMR) Subchapter D —Transportation  Transportation Management  Transportation Payment and Audit

5 FEDERAL MANAGEMENT REGULATION (FMR) Transportation Management

6 FEDERAL MANAGEMENT REGULATION (FMR)  Subpart A – General  Subpart B – Acquiring Transportation or Related Services  Subpart C- Business Rules to Consider Before Shipping Freight or Household Goods  Subpart D - Restrictions That Affect International Transportation of Freight or Household Goods  Subpart E - Shipping Freight  Subpart F - Shipping Hazardous Materials (Hazmat )  Subpart G – Shipping Households Goods

7 FEDERAL MANAGEMENT REGULATION (FMR) Transportation Management

8 FEDERAL MANAGEMENT REGULATION (FMR)  Subpart A – General  Subpart B – Ordering and Pay for Transportation and Transportation Services  Subpart C - Use of Government Billing Documents  Subpart D – Prepayment Audits of Transportation Services

9 Transportation Management Why is this Important?

10 Transportation Management Facts  The Federal Government pays over $24 Billion per year to move freight and household goods.  The government is not a transportation asset owner and uses the services provided by commercial industry such as trucking, rail, ocean, and air.  GSA-FAS provides third party transportation services for the civilian agencies, but it is not a mandated resource.

11  Obligating Authority Rule****  Leverage dollars spent through effective collaboration with Government agencies and the private sector  Develop a responsive and cost effective transportation system Transportation Management

12 Transportation Management **Obligating Authority** Definition: Administrative body that has the power to authorize procurement of goods and services and to make payment for them.

13 Transportation Management  The Federal government is authorized to buy transportation either through the Federal Acquisition Regulations (FAR) or under the Transportation Act.  The statutory authority for procurement of transportation under the Transportation Act (Tenders) is found at 49 U.S.C (rail) and (most other TSPs) (and 49 U.S.C for pipelines).  Tender procurements are an alternative method of procurement, that is neither mandatory nor exclusive.  Unlike other federal procurement officials, transportation officers generally are not delegated purchase authority for rate tender procurements, nor are they required to meet any specialized training or experience requirements.

14 Transportation Management  The chain of authority under a tender procurement is not the same as the FAR. The person obligating funds is not generally subject to a contracting officer’s review.  Transportation managers are liable for the funds they obligate. In 2000, personal liability for use of improper transportation rates or classifications shifted back to disbursing officers and certifying officers. Public Law removed the post pay audit and replaced it with a prepayment audit (as is required in all other forms of government procurement.)

15 Transportation Management Transportation Study

16 Transportation Management Governmentwide Transportation Management Study  Completed over 50 interviews with agencies, associations, carriers, and commercial companies  Developed a series of findings based on current Federal agency transportation management practices and analysis of available data  Identified improvement opportunities and cost savings potential through maturity assessment of current state and best practices

17 Transportation Management  Recommendations to address these findings focused on three policy areas: –Organizational structure and reporting –Procurement methods –Operational improvements  Recommendations also factored in other drivers Commercial best practices focus on sustainability and will support government compliance with Executive Order 13514

18 Transportation Management What’s New in Transportation Policy?

19 Transportation Management Policy and Structural Changes  Developed an effective interagency committee and executive council.  Require certification and training for obligation authority for tender procurements.  Collect and analyze governmentwide data and performance metrics from tenders and FAR procurements.  Change the Fed. Mgmt. Reg. to optimize use of tenders.  Change the FAR to identify and manage transportation costs in service and delivery contracts.  Develop a governmentwide Center of Excellence in GSA for transportation.

20 Transportation Management Operational Improvements  Forecast demand for transportation  Use IT to identify opportunities to coordinate and consolidate shipments across agency lines.  Optimize use of rail and intermodal.  Manage accessorial charges.  Work with individual agencies to optimize their transportation operations and to establish centers of excellence for specialized shipments.

21 Transportation Management Interagency Committees Transportation Policy Executive Steering Committee (TSESC) Governmentwide Transportation Policy Council (GTPC)

22 Transportation Management Contact Information Henry Maury – Program Director Tel: Fran Staunton – Program Analyst Tel:

23 Transportation Management Questions?