Updates from GSA’s OGP and FAS

Transportation Policy Updates 1.Obligating authority 2.Transportation Officer Training 3.Transportation Audits Bulletin 4.Open Skies 5.Transportation Reporting 6.Inbound transportation initiative 7.OGP Interagency Groups 8.Detail opportunities

Obligating Authority FMR Warranted Transportation Officers Obligating with Rate tenders – Recommend training/certification – Authorized in writing – Effective date 18 months – Clarify accountability and liability

Finalizing contracts for content and hosting Vet with interagency working group Online 24x7; tests & completion certificates 3 courses with 11 topics in each Available – Basic-October 2012 – Intermediate-June 2013 – Advanced-December 2013 Transportation Officer Training

TO Training Topics Federal Transportation Management - Intro Transportation Roles Transportation Modes Domestic International Hazardous Materials Payments and Audits of Transportation Services Claims Laws, Rules & Regs Sustainable Transportation Temporary Nonuse, Suspension & Debarment

Transportation Audits Bulletin Stresses requirement to conduct, no changes Purpose-Prevent duplicate payments and ensure proper payments for authorized services Prepayment-Overages returned to agency; Postpayment-general treasury Customers of FAS new GSA Payport Express have automated pre-payment capabilities (Freight Trans. handbook)

Transportation Reporting Currently, no reporting required by GSA/OGP Amending FMR to require Data Collection Bulletin Developing OGP Tool Why Report? What to report for inbound and outbound shipments?

Open Skies Expands Fly America Act (§ ) Reflects and supports demand for international services, increased travel and trade Allow air carriers unlimited access to points in the countries and unlimited access to intermediate and beyond points Maximum operational flexibility for alliance partners. state.gov/e/eeb/tra

Inbound Transportation Initiative Inbound Transportation – All deliveries into the buyers delivery point

Current State  Commodity prices include shipping (FOB Destination)  Government has no/limited visibility into inbound spend  Untrained transportation officers  Unmanaged transportation  Legacy systems  Outdated policy Goals of Inbound Transportation Initiative Desired State  Prices exclude shipping costs (FOB Origin)  Inbound & outbound data  Customer has shipping options  Transportation focused mgmt  Active & knowledgeable community  Supply life cycle modernization  Strengthened & updated policy

Transportation Inbound Initiative Options Product Service Codes (commodity groups) Parcels and/or freight Facility type: Special Use vs. Office Require visibility -separate product and transportation costs Move to FOB origin from FOB destination pricing Combine outbound and inbound to optimize network Pilot Agencies: VA, DLA, DOE Other ideas?

FY 2012 Detail options, and select Realign process or incorporate into new processes Develop business case, and implementation plan Begin pilot Recommend go/no go position FY 2013 Gather data, analyze savings/GHG impact and replicate- ability Identify and amend transportation policy; FAR; waivers Transportation Inbound Initiative Plan of Action

Interagency Transportation Groups Governmentwide Transportation Policy Council (July 19 next) Federal Transportation Executive Board Ad Hoc Working Groups

Share transportation experience? ASTL’s Certification in Transportation and Logistics (CTL) Professional Traffic Operations Engineer (PTOE) Professional Transportation Planner (PTP)

GSA Center for Transportation Management

Discussion Topics Center for Transportation Management (CTM) Mission Stakeholder and Customer Needs Customer Savings and Benefits GSA Transportation Management GSA’s NEW Automated Transportation Solution – TransPort Integrator – PayPort Express (Third Party Payment Service) – End-to-end Transportation Solution Working Together and Moving Forward Information and Upcoming Events 16

Our Mission The Center for Transportation Management (CTM) is creating an environment of excellence and innovation that provides a 360 degree approach to executing and managing transportation; resulting in greater market penetration through customer focused offerings. The tools that empower this approach are: – TransPort Integrator – PayPort Express 17

18 What Do Stakeholders and Customers Want? TSPs Customers 1 Transportation Associations GSA 2 OMB 1- Major Customers: FMP: FEMA, HHS, Dept. of Justice, NIB/NISH, GSA-GSS, VA Memorial Affairs, NARA CHAMP: State Department, Dept. of Justice, USDA, Dept. of Interior 2- GSA Stakeholders: FMP, CHAMP, Small Parcel program, Audits, QMCC, GSS, OGP, OCIO, OCCM, Finance, Legal and Acquisition, SmartPay® Timely payments, collaboration platform, dynamic rates Increased revenue tracking, business intelligence Ability to analyze government wide transportation trends through data collection, Leverage Modal Shift Multi-mode, rate shopping, analytics, visibility & tracking Industry Best practices, transparency

$20–$30 Billion Savings Potential Over 5 Years Recurring savings in reduced expenditures through improved operational efficiency and service level improvements that can be supported by Transport Integrator – 10–15% recurring savings from policy and structural changes Organizational structure and reporting Identifying and selecting the best procurement method (appropriate uses of FAR vs. Tender) – 10–15% recurring savings from operational improvements PRTM experience with private companies & government agencies, including US Transportation Command, confirms this is a conservative estimate Savings of $20B–$30B over 5 years possible by implementing recommendations based on PRTM experience and domain expertise 19

Savings and Benefits GSA negotiates rates leveraging the buying power of the federal civilian government to provide competitive rates Rates are available via the web, 24/7, and there is no charge to participating Federal agencies/contractors to use. GSA customers’ on average savings: – 19.5% over other government agency sample rates – 51.9% off commercial rates (Source: Runzheimer July 2011) TSP approval process strictly managed by GSA Full replacement value on shipments up to $100,000 without additional insurance requirements Easy and efficient booking and bill of lading capabilities through TMSS/New TransPort Integrator 20

GSA Transportation Management 21 Smart Shopping Shared IT Services Competition Transparency Management Controls Data Customers – Cost Savings – Multi-modal – Specific RFOs – Audits visibility & automation – Compliance w/ Policy & Regulations TSPs – Faster & Accurate Payment – Open market place – Increased collaboration Stakeholders – Data mining – Supports policy development

TransPort Integrator Rate shopping and shipment creation Agency specific rates for unique shippers (RFOs) Monitored TSP performance Value index helps identify the overall best value TSP for shipments Identification of EPA SmartWay Certified Shippers to help agencies fulfill sustainability goals Increased in-transit visibility of freight shipments, featuring automated alerts Robust reporting and data analysis Alleviate in-house transportation management – direct savings Integration with PayPort Express (3 rd Party Payment Service) 22

PayPort Express 23 “Through PayPort Express, GSA offers a commercial practices based, streamlined invoice-to-pay service to all Federal Civilian Agencies to increase efficiency and transparency, and reduce costs.”

24 PayPort Express Automates  Delayed payments to TSPs  Manual and paper intensive processes are costly and limit data capture  Pre and Post audit processes are burdensome and time consuming  Robust business intelligence will improve efficiencies Agency ChallengesPayPort Express: Benefits to Agency 24 1%-10% Operational Cost Savings  Seamless electronic process/workflow  Automates account code assignment  Expedites exception resolution Eliminates Audit Findings  Robust, systemic pre-audits catch exceptions  GSA Audit approved for pre-audit plan 100% GSA TSP Participation  TSPs are already enrolled Integration  Already integrated with dozens of government and commercial systems Consolidated Billing  TSP paid upon approved invoice  Agency receives consolidated bill from Citi Business Intelligence  Supply Chain Network Optimization Parcel Management  Audit and payment functionality Zero Cost to Agency  Immediate ROI to Agency

GSA Automated Transportation Solution Order Creation 4. Pickup 5. Tracking 6. Delivery Online Order Creation Decline, Accept Load, confirm Pickup Integrated Tracking Confirm Delivery 9. TSP Invoice 10. Prepay Audit 11. Audit Exceptions 12. TSP Payment TransPort Integrator* (Planning and Execution) PayPort Express* (Settlement) Validate and Approve Citi pays approved invoices to TSPs Rule based Match Auto Approve / Reject TSP Submits Invoices to Citi 2. Rate Shopping Rate Shopping & Consolidation Automated feed 3. Load Tender Auto/ Manual Load assignment 7. Proof of Delivery Verify charges and confirm POD 8.Send BOL to PayPort 13. Agency Invoice Consolidated invoice to Agency from Citi 15. Post pay Audit GSA Transportation Audits full cycle 14. Agency Payment Agency pays Citi’s consolidated invoice *TransPort Integrator services provided by IBM on JDA platform; PayPort Express Services provided by Citi on Syncada Platform Shipper Agency ShipperTSP CitiShipperCiti Shipper GSA Audits Integrated Customer-centric, TSP-centric reporting and analytics Order Systems

Working Together and Moving Forward Where can CTM help with transportation policy? – Obligating authority – Transportation Officer Training – Transportation Audits Bulletin – Transportation Reporting – Inbound transportation initiative – Interagency Transportation Groups 26

Information and Upcoming Events TransPort Integrator: Training Information and Opportunities – PayPort Express: Training Information and Opportunities – TSPs Quarterly Meetings – Next meeting July 18, 2012 CTM Transportation Town Hall Meetings – Next meeting first week of August Government Transportation Form – March/April

Questions POC/ FocusPhone Transportation & Mail Policy, GSA/OGP/Office of Asset and Transportation Management Policy Expert (in- training), Regulations & Training Inbound Initiative Policy Analyst, Freight Transportation Branch Freight Transportation Branch Center for Transportation Management