[Federal Register Volume 63, Number 230 (Tuesday, December 1, 1998)]
[Notices]
[Pages 66129-66131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31950]
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DEPARTMENT OF DEFENSE
Department of the Army
Implementation of the Defense Table of Official Distances (DTOD)
for Personal Property Shipments
AGENCY: Military Traffic Management Command, DoD.
ACTION: Final Notice (Policy Statement).
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SUMMARY: The Department of Defense (DOD) has decided as a matter of
procurement policy and internal agency procedures to change the
distance calculation source used for transportation payments and audits
in the DOD personal property program. Beginning on the effective dates
listed below, DOD will use the Defense Table of Official Distances
(DTOD) as the standard source for distance calculations worldwide.
Carriers participating in the current International and Domestic
household goods program must agree to be bound by DTOD mileage for
payment and audit purposes. This policy decision is in furtherance of
DOD's goal to use a single integrated, electronic distance calculation
source for its transportation programs. On-going reengineering
initiatives using mileage calculation as a basis for payment and audit
will transition to DTOD at the earliest opportunity.
EFFECTIVE DATES: April 1, 1999 (international shipments) and May 1,
1999 (domestic shipments).
FOR FURTHER INFORMATION CONTACT: Mr. Alex Moreno, HQ, Military Traffic
Management Command, ATTN: MTOP-T-PR, Room 625, 5611 Columbia Pike,
Falls Church, VA 22041-5050, telephone (703) 681-6190, FAX: (703) 681-
9681.
SUPPLEMENTARY INFORMATION: In furtherance of DOD's goal of making its
transportation programs more standard and efficient, the DOD
Comptroller tasked MTMC to find a commercially available, integrated,
automated distance calculation source capable of supporting all DOD's
transportation and travel-related requirements. After an extensive
proof of concept and market analysis phase, MTMC contracted to acquire,
install, integrate, and maintain a system (DTOD) adaptable to DOD's
global transportation and travel mission responsibilities. DTOD,
commercially known as PC*Miler by ALK Associates, will become the DOD
standard, automated source for distance calculations worldwide. A
notice of proposed implementation of DTOD in the DOD personal property
program was published in the Federal Register, Vol. 63, No. 111, Pages
31761-31762, Wednesday, June 10, 1998. In response to this notice,
numerous comments were submitted and were carefully considered in the
decision to implement this policy change. Listed below are the comments
and MTMC's response:
Comment 1: The cost to purchase and maintain a separate distance
calculation product for DOD shipments is too high.
Response: MTMC is aware of the economic impact implementation of
DTOD may have on personal property carriers, particularly small
businesses. Therefore, MTMC did not mandate that carriers purchase and
maintain DTOD in order to participate in the DOD personal property
program. Instead, MTMC only requires that participating carriers agree
to be bound by DTOD mileage for payment and audit purposes. MTMC
believes that carriers may choose to adapt to the DTOD implementation
in a variety of ways, to include:
[[Page 66130]]
a. Carriers not purchasing DTOD may rely on the payment process to
identify the distances used for payment.
b. Carriers may subscribe to the DTOD-compliant commercial product
(PC*Miler) through the Internet for an estimated price of $375 per 500
look-ups.
c. Carriers may purchase and install ALK's PC*Miler in a manner
best suited to their own business strategies and computer operations.
d. Carriers may explore the possibility of acquiring hard copy
versions of PC*Miler.
e. Carriers may rely on the comparison of variances between Rand
McNally's Milemaker and ALK's PC*Miler distances for the 100 busiest
traffic lanes. Copies of the comparison are available on request.
Additionally, MTMC is exploring automated methods of annotating all
GBLs to reflect the DTOD distance.
Comment 2: Serving the commercial market and participating in the
DOD personal property program will require them to purchase and
maintain two different systems--one for DOD and another for commercial
customers.
Response: MTMC does not require carriers to purchase PC*Miler and
maintain two different distance systems. Carriers may continue to use
the mileage software they are currently using. However, for DOD
shipments, payment and audit will be based on the DTOD distance
calculations. Carriers will have the options listed in Comment 1 or
other options suited to each carrier's business strategy/business
relationships and market situation.
Comment 3: No benefit to be gained by replacing the currently used
distance calculation product, which does not need to be replaced.
Response: In response to the National Performance Review and other
Government improvement initiatives, DOD has looked to find more
economical and efficient ways to conduct its business processes.
Currently, DOD uses several distance information sources and manual
processes to support its various transportation programs. The result is
a variance in distance computations produced by different products and
a high cost to DOD for licensing and maintaining multiple sources.
DOD's DTOD initiative will create a standard source within DOD for
distance calculations worldwide and will reduce costs, increase
efficiency, and help streamline the transportation payment and audit
process. An electronic mileage system enables more accurate invoice
processing, while reducing the expense of auditing and rebilling for
both the Government and carriers. DOD believes these benefits clearly
justify the costs associated with implementing DTOD.
Comment 4: DOD claims to favor use of commercial practices, but
DTOD is a DOD-unique product and not the commercial standard in the
household goods industry.
Response: DTOD is a commercial product and is, therefore,
consistent with commercial business practices. DTOD is based on ALK's
PC*Miler, which is a commercial off-the-shelf product modified to
include the DOD standard point of location codes (SPLCs) and several
locations within CONUS and overseas. While DOD recognizes that Rand
McNally is the mileage basis for the household goods industry's
commercial tariff, DOD points out that its personal property program is
a separate system not directly tied to the mileage sources used in the
commercial market. Use of DTOD will move DOD closer to a single,
automated, and widely used commercial standard for all its various
transportation programs. DTOD and PC*Miler will be subject to the same
version control process and will feature delivery systems compatible
with current commercial usage for like products.
Comment 5: PC*Miler provides premium features that are not needed
by small businesses.
Response: A basic (no frills) PC*Miler will be made available on
the Internet for an estimated price of $375 per 500 look-ups. It will
contain the necessary information for mileage verification.
Comment 6: PC*Miler's routing system ignores the reality of the
Alaska transportation network.
Response: MTMC is currently working with representatives from the
Alaska Movers Association to discuss the Alaska transportation network.
An initial meeting was held on 18 September 98 and a second meeting is
scheduled for mid-November.
Comment 7: DOD's intent to use the shortest miles may put carriers
competing for Government traffic at a disadvantage because the motor
carrier industry's operating systems are geared toward the use of
practical miles.
Response: Household goods shipments are not normally over-
dimensional shipments and are, therefore, routed via the shortest
truck-navigable route. DOD has always used shortest miles for freight
shipments not involving munitions or overweight/over-dimensional cargo.
Hence, there will be no change in the distance standard used for
household goods shipments.
Comment 8: Carrier information systems use AS400 and Unix operating
systems. It is not clear whether DTOD will run on these larger systems.
Response: DOD has chosen to use a Windows NT operating system.
However, carriers are free to license a PC*Miler version that will run
on an operating system of their choice. ALK currently has versions of
PC*Miler for AS400 and Unix operating systems.
Comment 9: System duplicity would increase the probability for
error in distance 5 calculations.
Response: DOD transportation and payment activities, including
DFAS, will base mileage computations on DTOD. Transportation audit by
GSA will also be based on DTOD. PC*Miler, which is a DTOD-compliant
commercial product, and DTOD are identical and will produce consistent,
error-free mileages. The use of commercial mileage software other than
PC*Miler may produce mileages different from DTOD. In such instances,
DTOD will govern.
Comment 10: Many small businesses do not have updated computer
capability or do not use computers.
Response: MTMC realizes that all carriers do not operate their
businesses in the same way. However, current and future business
practices are centered on the use of computers in one way or another.
As the business process changes to embrace principles of electronic
commerce (e.g., electronic data interchange and electronic funds
transfer), MTMC is anxious to capitalize on the economies and
efficiencies those changes represent. MTMC is confident that commercial
shippers and transportation providers are moving in the same direction.
Comment 11: PC*Miler is unproven in industry and lacks version
control.
Response: Currently, over 9,500 shippers and carriers in commercial
transportation are using PC*Miler. The DTOD project office, in
conjunction with the software vendor, will maintain precise version
control of the distance software to ensure all parties (finance
centers, audit agencies, shippers, and carriers) have the same version
of DTOD/PC*Miler at the same time.
Comment 12: DOD's proposed implementation of DTOD in its personal
property program violates the Regulatory Flexibility Act by failing to
include an initial regulatory flexibility analysis.
Response: DOD's decision to adopt and implement a single,
integrated mileage calculation source is a procurement policy decision
that directly related to the basis DOD will use to pay for commercial
transportation
[[Page 66131]]
services. The decision and steps taken to implement it in DOD's
personal property program relate to public contracts and are exempt
from the Regulatory Flexibility Act, 5 U.S.C. 601-612. This policy
decision to implement a single distance calculation source for
procurement purposes is not considered rule making within the meaning
of the Administrative Procedure Act or the Regulatory Flexibility Act.
Mary V. Yonts,
Alternate Army Federal Register Liaison Officer.
[FR Doc. 98-31950 Filed 11-30-98; 8:45 am]
BILLING CODE 3710-08-P
