The Official Publication of the National Defense Transportation Association
December 2015
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HIGHLIGHTS FROM THE NDTA-USTRANSCOM FALL MEETING
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December 2015
FEATURES December 2015 • Vol 71, No. 6 PUBLISHER
RADM Mark H. Buzby, USN (Ret.) MANAGING EDITOR
Sharon Lo | sharon@ndtahq.com CIRCULATION MANAGER
Leah Ashe | leah@ndtahq.com PUBLISHING OFFICE
NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761
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NDTA-USTRANSCOM 8-19 FALL MEETING WRAPUP NDTA EXPO PHOTO ALBUM
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WEARABLE TECHNOLOGY 23 Your Next Great Workforce Tool By Gabe Grifoni
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DEPARTMENTS PRESIDENT’S CORNER | RADM Mark H. Buzby, USN (Ret.).......................................... 5 Defense Transportation Journal (ISSN 0011-7625) is published bimonthly by the National Defense Transportation Association (NDTA), a non-profit research and educational organization; 50 South Pickett Street, Suite 220, Alexandria, VA 22304-7296, 703-751-5011. Copyright by NDTA. Periodicals postage paid at Alexandria, Virginia, and at additional mailing offices. SUBSCRIPTION RATES: One year (six issues) $40. Two years, $60. Three years, $75. To foreign post offices, $45. Single copies, $6 plus postage. The DTJ is free to members. For details on membership, visit www.ndtahq.com. POSTMASTER: Send address changes to: Defense Transportation Journal 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296
CHAPTER SPOTLIGHT | Terri Dalton....................................................................... 6 PROFESSIONAL DEVELOPMENT | Irvin Varkonyi......................................................25 CHAIRMAN’S CIRCLE.......................................................................................26 HONOR ROLL..................................................................................................27 BOOKSHELF IDEAS | Sharon Lo........................................................................... 28 INDEX OF ADVERTISERS.................................................................................... 28
Cover photo by Marvin D. Lynchard, Department of Defense
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PRESIDENT’S CORNER 2016—Here We Come! RADM Mark H. Buzby, USN (Ret.) NDTA President
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am sure that by now, many of you are absorbed in the hustle, bustle and excitement of the approaching holiday season. Lots to do to close out the year from a business perspective, and plenty of social engagements and family events to cram into a very busy month. I am asking myself: “Where the heck did 2015 go? I just put away Christmas lights a couple of weeks ago and now I am on a ladder hanging them again!!” Hopefully during your down time over the holidays, you’ll flip through our pages and enjoy our review of the great topics and issues presented at the NDTAUSTRANSCOM Fall Meeting this past September in Washington, DC. If you were lucky enough to be one of the more than 1,000 attendees, or if you could not join us this year, I know that you will find our coverage worth a few minutes of your time. Several of this year’s innovations— University Day and our Mentor-Protégé program—were solid successes and will be improved upon and featured again in next year’s Meeting in St. Louis (October 31-November 3, 2016). The NDTA staff and General Darren McDew’s USTRANSCOM staff are already hard at work planning a bigger and better meeting for next year. On our immediate horizon is our newest offering—GovTravels—a symposium for the personal services sector of our government and industry membership, focused on passenger travel, lodging, transportation, and the technology that supports them. We are working closely with the Defense Travel Management Office, US General Services Administration, and other government transportation interests to produce an “NDTA quality” meeting to address myriad issues associated with taking care of our most precious commodity—our people. That event will be at the Hilton Mark Center in Alexandria, Virginia, (March 29-31, 2016) and
is already seeing brisk registration. I invite you to come aboard if your interests lie in those areas. Something that I alluded to in the past several issues regarding valuable new means to communicate with our membership and share information is finally a reality. BOB.tv is here! So what is it? BOB.tv (Best of Business) is a streamlined means for our membership to view business- and career-relevant logistics and supply chain content. Through our partnership with BOB.tv, NDTA members can access a broad spectrum of video and written content from a variety of sources and viewpoints—not just from NDTA. NDTA members have access to the Supply Chain Network on BOB.tv as part of their annual membership, and the partnership will feature NDTA-provided content. We will use this platform extensively to share briefings, speaker remarks and classes with the greater NDTA audience, not just those who attend our in-person sessions. Go have a look; I hope you will become a regular viewer on the Supply Chain Network on BOB.tv. As you are reading this, our NDTA Chairman Bill Flynn and I are working with the Board to develop the goals and priorities that we want to focus on as an Association in the coming year and beyond. We’ve sought input from both our industry members and from the senior government leaders and will be rolling out our way ahead right after the New Year. We have a busy year ahead! I’ll be talking about it in my next column, and will be on BOB.tv, too. Everyone here in the office: Jim, Patty, Lee, Leah, James, Rebecca, Sharon, and Carl, join Gina and me to wish you all many joys this holiday season and well into the New Year! Yours aye, Mark H. Buzby
NDTA on
BOB.tv Explore content from industry and academic experts with NDTA and BOB.tv. Visit the NDTA Channel at: http://supplychain.bob.tv/ channels/NDTA/ While you are there, check out the entire Supply Chain Network and access premium content for free when you log in using the email address associated with your NDTA membership.
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CHAPTER SPOTLIGHT
NDTA Headquarters Staff RADM Mark Buzby, USN (Ret.) President
Scholarship Success at the San Joaquin Valley Chapter
COL Jim Veditz, USA (Ret.) Senior Vice President, Operations
By Terri Dalton President, NDTA San Joaquin Valley
Patty Casidy VP Finance
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Lee Matthews VP Marketing and Corporate Development Leah Ashe Manager, Database James Marconi Director of Public Relations Rebecca Jones Executive Assistant to the President
For a listing of current Committee Chairpersons, Government Liaisons, and Chapter & Regional Presidents, please visit the Association website at www.ndtahq.com.
EDITORIAL OBJECTIVES The editorial objectives of the Defense Transportation Journal are to advance knowledge and science in defense logistics and transportation and the partnership between the commercial transportation industry and the government transporter. DTJ stimulates thought and effort in the areas of defense transportation, logistics, and distribution by providing readers with: • News and information about defense logistics and transportation issues • New theories or techniques • Information on research programs • Creative views and syntheses of new concepts • Articles in subject areas that have significant current impact on thought and practice in defense logistics and transportation • Reports on NDTA Chapters EDITORIAL POLICY The Defense Transportation Journal is designed as a forum for current research, opinion, and identification of trends in defense transportation and logistics. The opinions expressed are those of the authors and not necessarily of the Editors, the Editorial Review Board, or NDTA.
n 1999, the NDTA San Joaquin Valley (SJV) Chapter became serious about raising money for our scholarship fund. Each year Green Valley Transportation hosted an open house barbeque for their customers. Due to government ethics regulations, government employees were discouraged from attending. In response, Green Valley asked for a three dollar donation which made it possible for the government employees to attend (the donation has increased over the years, but so has the attendance). The money collected from tickets and raffles was matched by Green Valley and donated to the SJV Chapter Scholarship Fund. In 2000, the chapter awarded its first scholarship. Subsequently, the chapter began hosting golf tournaments each fall and spring to raise money. At every monthly meeting, the chapter asks its carriers for donations of hats, cups, shirts, gift cards, etc. so it can hold drawings for these items, as well as a 50/50 drawing. Five years ago, the chapter decided to hold a crab feed. This event was quite popular and profitable. The SJV Chapter has also been blessed to receive other contributions from its commercial industry partners. Chapter leadership continually reaches out to them for donations and to participate/assist with events, and these industry partners often provide the chapter with generous donations for the scholarship fund. The most important member of the SJV Board of Directors is the scholarship chairperson. The chairperson has to be energetic
EDITORIAL CONTENT For a Media Kit and Archives, visit www.ndtahq.com/education_dtj.htm Sharon Lo, Managing Editor, DTJ NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 sharon@ndtahq.com
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and totally dedicated to the position. He/ she visits high schools, community colleges, and vocational schools to tell students about the program and distribute applications. In addition, he/she contacts local newspapers and ensures the application is posted online. At each monthly meeting, he/she talks about the scholarship program encouraging membership to spread the word and has applications available. Although there is only a three-month window for submitting/receiving the applications, the scholarship chairperson and the entire SJV Chapter works year round raising money to award scholarships. Once the deadline has arrived for submissions, a committee is established for evaluation of the applications. The proposed winners and award amounts are presented to the SJV Board of Directors for approval. Once approved, the chairperson contacts the high schools of the winners and arranges for a SJV representative to attend the awards night and present the student the award in front of their peers. An award dinner is then arranged for late June (as part of the installation of officers) to honor all the awardees. This past June, the SJV Chapter awarded 27 academic/vocational scholarships which totaled more than $24,000. During the past six years, the chapter has awarded more than $120,000 in scholarships. It is the dedication, participation, and generosity of the NDTA San Joaquin Valley Chapter membership and commercial industry partners that has made the chapter so successful in this endeavor. DTJ
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The NDTA-USTRANSCOM Fall Meeting September 28-30, 2015
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Washington DC
Photos by Marvin D. Lynchard, Department of Defense
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NDTA-USTRANSCOM Fall Meeting summary material is intended to provide an overview of presentations and should not be considered verbatim. This information does not necessarily represent the official position of the US government or any of its entities, NDTA or any of its corporate members. | Defense Transportation DECEMBER For 2015more information regarding the meeting please visit NDTA’s website at www.ndtahq.com. We regret anyJournal errors or| omissions.
NDTA, USTRANSCOM Co-Host 2015 Fall Meeting By James Marconi, Director of Public Relations, NDTA
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eaders in defense transportation, soned logistics authorities for one-onlogistics and personnel services one networking and development. from DOD, government and “We saw strong participation from private industry gathered September both sides,” Buzby said. “Everyone, 28-30 for the 2015 National Defense from student to CEO, had a chance Transportation Association (NDTA)/ here to learn and grow together.” US Transportation Command (USAdditionally, the meeting offered TRANSCOM) Fall Meeting. roundtable discussions on topics such Co-hosted with USTRANSCOM as cybersecurity and lessons-learned at the Gaylord National Resort and from the 2014 Ebola response, OperaConvention Center in tion UNITED ASSISMaryland, the meeting TANCE. Perspectives “The NDTA Fall Meeting addressed high-impact from expert speakers provides both industry topics in defense logisinclude Gen. Darren and DOD a forum to learn tics, ranging from acMcDew, USAF, Comquisition and contractmander, USTRANSfrom each other and to ing to cybersecurity. COM; David DeVries, collaborate on innovative “We assembled what DOD Principal Depsolutions to the challenges uty Chief Information I believe is our strongest facing the Defense program in years, beginOfficer; the Honorable ning day one with our Alan Estevez, Principal Transportation System.” University Day, a foDeputy Under Secre– Gen. Darren McDew, USAF cused educational venue tary of Defense for Acfeaturing 20 individual quisition, Technology courses,” said NDTA President RADM and Logistics; and Dr. Loren ThompMark Buzby, USN (Ret.) “Education is son, Chief Operating Officer of The a key element of NDTA’s mission and we Lexington Institute. are expanding our offerings to meet rap“The NDTA Fall Meeting provides idly changing geopolitical, technological both industry and DOD a forum and budgetary environments.” to learn from each other and to colThis year, the Fall Meeting also fealaborate on innovative solutions to the tured a mentor-protégé session that challenges facing the Defense Transpaired young professionals with seaportation System,” said McDew. www.ndtahq.com | 9
TRANSCOM Connects Military, Civilian Professionals By Amaani Lyle, DOD News, Defense Media Activity Originally published on www.defense.gov Oct. 1, 2015
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he commander of US Transportation Command championed partnership with the National Defense Transportation Association as they hosted their Fall Meeting and inaugural University Day. Air Force Gen. Darren McDew said the event offered a unique opportunity for uniformed and nonuniformed members of the defense transportation services to interface with civilian contractors and commercial industry professionals while engaging in various topics critical to readiness and national security. The general explained that the NDTAUSTRANSCOM Fall Meeting and University Day, open to all military, government, and industry registrants, not only outlines the scope of TRANSCOM responsibilities, but links the community through mentors and protégés while relating the elements of logistics, transportation, distribution and deployment. “Very few people fully understand how intricate [TRANSCOM] is, the innovation that’s behind it and all the different types of companies that are [contributing] elements that’ll make us better,” McDew said. “We learn as much from [younger attendees] as they learn from us … we need energy; we need new minds, we need new ideas and new thought.” MOMENTUM, SUCCESS
The general said he was pleased to bring these ideas to bear within TRANSCOM, a command that has long history of success and the admiration of combatant commanders across decades. With just about a month on the job helming TRANSCOM, the 33-year Air Force veteran described his leadership perspective: “I don’t walk into an organization thinking, ‘What can I change?’ … I walk in thinking, ‘Where might I add value?’” But, he acknowledged, challenges persist in terms of where and how a highly performing team can stay postured to meet the challenges of the future. In light of this, the general said he recognized the value of NDTA. “This relationship with the NDTA and TRANSCOM allows us to build stronger relationships and linkages into areas that maybe we hadn’t even thought of before,” the general 10 |
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said. “You can’t build a relationship when you need it; you must foster and build that relationship before you even know you need it.” BUDGET CHALLENGES
And though NDTA helps to infuse new thinking for future missions, the inconsistency of the budget remains a current challenge, McDew said, noting that budgets will get smaller. The general explained that while efficiency goals over the last five years have been effective, the DOD overall hasn’t had an on-time budget with which it can plan and modernize—and a continuing resolution won’t help. “A continuing resolution is tougher to deal with because there’re so many [more] ‘can’ts’ … than ‘cans.’” But budget isn’t a factor in certain threats, he said. McDew deemed cyber challenges to be a significant factor the nation and its allies must face, if only for its low cost of entry. “Many people can get into this business; we don’t know how effective they can be until they’re in, and … we’ve got to get better at how to defend it,” he said. The general therefore pledged to continue to grow the enterprise so that combatant commanders and nations around the world can remain global and agile. A GLOBAL NETWORK
“We’ve got great folks,” McDew said of his sealift and airlift personnel around the
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globe. “As I get them to be more innovative and be relationship-builders where they are, I think they’ll get even stronger.” The general explained that there are countries around the world struggling to sustain themselves a mere 30 miles outside their capital. “We can sustain our forces globally,” McDew said. “There’s not a soldier, sailor, airman or Marine that ever worries where their next bullet is going to come from or whether they’ll have a meal that evening.” The general said the event’s theme, Delivering Readiness Amid Risk—Together, ties in to the concept of leveraging every element of the TRANSCOM network. “From [Defense Logistics Agency] to TRANSCOM to the commercial side to all of our components, they must individually be strong to collectively work together,” the general said. “This is a great venue to share ideas, to get stronger in knowing each other and knowing each other’s weaknesses so we can cover for each other.” The general praised the “unheralded top performers” in the DOD enterprise. “Every single person values the work they do because they know it matters.”
Logistics Way Ahead in a Globally Distributed Environment By Sharon Lo, Managing Editor, Defense Transportation Journal Moderator MajGen John J. Broadmeadow, USMC, Vice Director for Logistics, J4, The Joint Staff with panelists: • Maj. Gen. Giovanni K. Tuck, USAF, Director of Operations and Plans, US Transportation Command (USTRANSCOM) • BG Richard Dix, USA, Commanding General, Defense Logistics Agency (DLA) Distribution • Brig. Gen. Mitchel H. Butikofer, USAF, Director, Command, Control, Communications and Cyber (C4) Systems, USTRANSCOM • Tommy Ross, Deputy Assistant Secretary of Defense for Security Cooperation KEY CONCEPTS:
• The Department of Defense (DOD) faces a difficult operational environment • The Joint Staff and USTRANSCOM are developing strategies in order to remain ready to support the warfighter • Total asset visibility is critical to the enterprise, but the technology that supports it remains vulnerable • US strategy must incorporate building partner capacity SYNOPSIS:
The US is facing a very challenging operational environment in the cyber domain; due to declining budget and resources; due to a growing anti-access, anti-denial environment that places a premium on
the global commons; and because of the rise of pure competitors—both state and nonstate—who are challenging its military supremacy. In response to these challenges, the Capstone Concept for Joint Operations asks logisticians to be able to sustain complex distributed operations across numerous lines of communication, overcoming increasing logistics demand, constrained resources, increasingly complex logistics, and the proliferation of those who are going to be able to deny freedom of movement. The Joint Concept for Logistics develops a vision of globally integrated logistics that looks across the joint logistics enterprise to include interagency, commercial and international partners. The concept calls for DOD to allocate and manage logistic support on a global scale, reconciling competing demands against declining resources, while maintaining a rapid and flexible transportation system, and a resilient information network. USTRANSCOM is in the early development stages of its Global Agility Concept plan, designed to synchronize the global distribution enterprise across all combatant command areas of responsibility. With USTRANSCOM’s plan, combatant commanders will have the authority and flexibility to position components during earlier stages of an operation. Together USTRANSCOM and its components, the Army Materiel Command and DLA provide the capability to rapidly deploy anywhere in the world at
FOCUS ON CYBERSECURITY By Susan Caulfield, President, Caulfield Consulting
Cybersecurity Speaker: David DeVries, Department of Defense (DOD) Principal Deputy Chief Information Officer KEY CONCEPTS:
• In the DOD environment, it is essential that information is secure, from input to output • Cybersecurity is a concern across the DOD, federal space and commercial industry • Mobile devices are the wave of the future in the DOD environment • Across DOD, there is a need to stan-
dardize the information technology (IT) information assurance workforce requirements, training and certifications SYNOPSIS:
How should information be managed, secured, stored and transmitted so the warfighter knows the mission ready capabilities today, tomorrow and a week from now? The challenge is there are thousands of networks
a moment’s notice. This allows combatant commands to operate day-to-day, as well as during contingencies. Total asset visibility across the entire global distribution network is vital to the success of the enterprise. However, the technologies that enable it are susceptible to compromise by US adversaries. As a result of these vulnerabilities, the enterprise needs to rethink its posture on how it enables total asset visibility by examining defensive measures, having a robust and active defense, improving cyber collaboration, and having foolproof business continuity plans. Over the past ten years, there has been a growing emphasis within the US national security strategy and DOD strategic guidance to work with and through partners to address critical national security threats. However, most of these partners do not have the ability to respond to threats with the same robustness, speed and agility as the US. Therefore, building partner capacity has become a critical element of US strategy. Partner logistics has been a gap in the security strategy that the US must address for the success of its operations. and enclaves throughout the DOD. Currently, we don’t know what is out there, how the information is transferred from point A to point B, and how secure this “thing” is, since many independent “things” are cobbled together. Yet, it is important that leadership knows the information going in and out is secure. In the current environment, the DOD IT user base is composed of approximately 1.4 million active duty members, 783,000 civilian personnel, 1.2 million National Guard and reservists, and 5.5 million family members and military retirees. For fiscal year 2015, the IT budget was $36.4 billion, which was down $3 billion from the prior year. This will continue to be reduced next year and for the next five years out. www.ndtahq.com | 11
Today, cybersecurity is becoming more important to industry because events over the last few years have changed the landscape, yet the DOD has been concerned about cybersecurity for years. With industry, the federal government and DOD are all interested in protecting crucial data, and there is an opportunity to work together for the benefit of all involved. It is also important to note that mobile devices are indeed the wave of the future. There are several pilot programs in place in the combatant commands (COCOMs) and the services to test the use of mobile devices. The device is managed from nodes on the network, and if lost or stolen can be shut down. In addition, mobile devices can have credentials of an individual user that has been vetted. Other uses for the mobile device include certifying the device to “talk” as a classified device. It is important to keep the device small and portable.
“Security must be good enough to mitigate risk, but how we deal with IT and security on the ground—we are still maturing on that.” – David DeVries Currently, when it comes to IT information assurance there is not a common standard across DOD, but that is something it is working on to unify and standardize across the landscape. DOD is documenting the requirements for training, so it can identify how to certify and train the workforce for the cyber mission. For the most part, it is common core training, which will provide the workforce with the knowledge of how to operate and defend the DOD environment or the IT infrastructure. Those in this position of responsibility will have a specialized expertise, and it is imperative to differentiate infantry from special operations forces, and deploy each correctly.
Cybersecurity Roundtable Intersection of Mission Assurance Information Sharing, and Public Policies and Laws Moderator VADM Andy Brown, USN, Director of Logistics, The Joint Staff with panelists: • RADM Michael Gilday, USN, Director of Operations, USCYBERCOM • Linton Wells II, SES, Acting Assistant Secretary of Defense for Networks and Information Integration (ASN NII) and Department of Defense Chief Information Officer 12 |
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• Catherine Lotrionte, Director of the Cyber Project, Georgetown University • Marc Boyle, President and CEO, Boyle Transportation • Dr. Peter Fonash, Chief Technology Officer, Office of Cybersecurity and Communications, Department of Homeland Security (DHS) KEY CONCEPTS:
• Collaboration and information sharing between industry and government is critical • Analysts need to be on the loop, not in the loop • The best security model is one of compartmentalization • No one person should have access to everything within the system SYNOPSIS:
The cyber problem is like early days of sailing in the 1400s; when ships started to sail internationally there were no rules, no laws, no navigation. No one can wait that long to get everything in place to solve the cyber problem because it is an international issue. In the late 1990s, there was frayed trust between industry and government, and, therefore, there was no information sharing between the two. In addition, government was concerned about sharing information with industry from a security perspective. Today, there is a realization that a more genuine public-private partnership is necessary. Both sides can learn from each other because cybersecurity is a world winning or losing issue. In Silicon Valley there is an initiative called Points of Presence which is a partnership and collaborative effort between industry and government. Collaboration between industry and government is extremely important for cybersecurity. For example, there was enormous collaborative effort between Sony, the FBI and NSA in the aftermath of the Sony cyber-attack.
DECEMBER 2015
The information that Sony shared allowed us to track the attack back to North Korea, and allowed the DHS and FBI to get information to industry as quickly as possible.
“Cyber is a team sport; there is no silver bullet, there is no single answer, there is no single organization or person that has all the answers so we are either going to win together or we are going to lose together.” – RADM Michael Gilday, USN One thing we know is that the analysts are not as productive as they should be, there are not enough analysts to do the job and responses are not made in cyber-relevant time. A Verizon report issued in 2013 stated that in 2003, in a day or less, the good guys were detecting intrusion about 20% of the time, and the intruders were getting into the system about 70% of the time. Forward to 2013 and the numbers drastically change, detecting intrusion increased to about 25% of the time, but the adversaries are getting in about 90% of the time. Although cybersecurity was not doing well in 2003, it is worse today and the paradigm needs to change. One of the best methods to combat cyber threats is sharing of information. Recently, DOD awarded a contract to the University of Texas in San Antonio to come up with information sharing best practices from a business perspective. From a business perspective, cybersecurity risk must be looked at holistically within the organization. Since businesses are using the cloud, the security interface needs to be in the cloud, and the protected areas need to be in the cloud. There is also a moving target in terms of standards for industry, which needs to get closer to where the health care or the credit card industries are in standards development. Information sharing and relationships between private industry and government
are important. There are stories of success coming out of the financial sector and overall we need to get lessons learned from each sector and share the information. In sharing information from the government side, it is about taking classified information and changing it to unclassified to share it with industry. We are also seeing the number of people with clearances increase, so sensitive information can be shared with industry. Studies show that it takes 260 days before companies realize they have been compromised. Businesses and organizations need to
focus on compartmentalization, so an adversary can be in your system, and yet you still protect your most secret assets and operate while you have been hacked. DOD is doing this and the private sector needs to think like this too. From a standards perspective, DOD should define what their business partners should compartmentalize and protect. The private sector cannot expect the government will be there to fix breaches for them, and small to medium size business are most at risk. Within these organizations, basic steps are not being taken—
AN IN-DEPTH LOOK AT ECONOMIC RISK By Sean Caulfield, Vice President, Caulfield Consulting
Economic Risk Speaker: Dr. Loren Thompson, COO, The Lexington Institute KEY CONCEPTS:
• The transportation demand outlook is mixed • Threats and politics drive the demand for military goods and services, as well as the defense budget • Instability is spreading all over the world • Entitlement spending is driving the deficit, with defense coming in second unless a threat brings it into the spotlight • It will take one political party being in control of Congress and the White House for changes to take place SYNOPSIS:
USTRANSCOM is facing fiscal uncertainties, such as cyber threats, aging assets, and sector consolidation. Fiscal and threat pressures will force more reliance on reserve components and partners, including commercial providers. The transportation sector is consolidating due to soft demand and competition. The industry is shrinking and the number of players in the field is significantly decreasing.
The transportation demand outlook is mixed. On the negative side, the global economy is cooling, defense spending is capped through 2023, force structure continues to shrink, the Pacific pivot means a smaller overseas footprint, the political system is paralyzed and distracted, and defense is not a driving issue. On the positive side, the US economy is performing relatively well, budget caps encourage logistics outsourcing, emerging threats require vigorous response, the next president will probably be more engaged, gridlock will ease if one party wins, and both parties support a strong defense. One bright note is that the decline in defense demand appears to have bottomed out and we are at a turning point. Threats and politics drive demand for military goods and services, and drive the defense budget in terms of its size and composition. Prior to 1950, about one percent of gross domestic product (GDP) was devoted to military spending, but after 1950 over five percent of GDP was spent on the military due to Communism and the Cold War, which created the need for the global logistics
they need to realize anti-virus software is not sufficient. In order to have the most secure system, businesses need to monitor the network, encrypt important information, and use a two-factor authentication mechanism for passwords. Everybody in the organization needs to have a responsibility to cybersecurity, and business culture must drive cybersecurity from the top down. Adversaries could also be a threat inside the organization, and no one person should have complete access to everything, not even the system administrator. network. The US Cold War Strategy stressed containment, which was about stopping Russians and Chinese from expanding in other areas. From 1950 to 1990, the US maintained a military presence around the world that required continuous logistics support. Today, the landscape has changed and we are faced with the rise of global terrorism, destabilization of the Middle East, Russian revanchism in Europe, emergence of cyber threats and Chinese military modernization. Additionally, economic trends are also impacting the strategic landscape, including: the digital revolution (internet), China’s rapid economic growth, globalization of the supply chain, slowing of Western and Japan’s economies, and expansion of the welfare state in the US. As a result, US shares of the GDP have decreased from 32 percent in 2000 to 22 percent in 2015, while China’s share of the GDP has grown from three percent to 15 percent over the same time period. If the trend continues, China’s GDP will surpass the US GDP, and the US GDP will continue to decline.
“Slow economic growth, expanding welfare states and an all embracing government is making it harder to find money for defense when threats are not urgent, and the problem will grow worse in the future as the population ages.” – Dr. Loren Thompson POLITICAL CONSIDERATIONS
The political system is really the customer for defense, and unless the political system acknowledges there is a threat, nothing is done to deal with it. The political system must respond and identify the threat in order to increase defense spending. Since 1986 there has been a shift from defense spending to entitlement spending. In 1986, entitlement spending was 40 percent of the www.ndtahq.com | 13
federal budget and defense spending accounted for 34 percent. In 2016, the entitlement spending rises to 64 percent and defense spending is reduced to 15 percent. Why the decline in defense spending? The voting behavior is influenced more by taxes and entitlement than by security concerns. Defense is secondary, unless there is some sort of threat that draws it into the spotlight and incites public and political concern. Partisan division has paralyzed Washington, and Congress has failed to deliver a complete federal budget by the September 30 deadline every year since 1997. The situation will not change because of the divided government unless one party gets control of both chambers of Congress and the White House. Defense spending directly correlates to which party is in control of the White House and Senate. The Republicans tends to increase defense spending, whereas the Democrats favor people and readiness programs rather than weapons programs. President Obama falls in line with his Democratic predecessors and has continued to focus on people programs, while decreasing spending on defense modernization. On another note, the Congressional understanding of defense is waning because there are no military leaders in either party, and the percentage of veterans in each chamber is at historic lows. Additionally, many of the members are newly elected; they do not understand the legislative process and rely on ideology. Raising the defense budget requires a bi-partisan deal, but that is unlikely to happen given the 2011 Budget Control Act, which mandated $1.2 trillion in savings through 2021, half coming from defense. DEFENSE CONTRACTORS
The decrease in defense spending impacts defense contractors. Tactics contractors are using to cope with the situation include: divesting underperformers, acquiring niche defense adjacencies, buying back major shares of stock, increasing foreign military sales and growing commercial revenues. Through stock buy backs, companies are able to run up their stock price, which pleases stockholders and makes sector consolidation less urgent. How can share prices continue to climb? Low interest rates entice people to invest, and company cost cutting bolsters returns, so despite flat sales and large buybacks of company stocks, investors remain engaged and interested. This is a fiscal strategy to keep stock prices high versus actually investing in the future of their business and the development of the next generation of weapons. 14 |
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Economic Risk Roundtable Which Direction is Your Industry Going? Moderator William Kenwell, Board Member, Maersk Line, Limited and Farrell Lines with panelists: • John Dietrich, Chief Operating Officer, Atlas Air • David Ross, CFA, Managing Director, Global Transportation and Logistics, Stifel Nicolaus • Robert Gutman, AVP Modeling and Analytics, CSX Transportation • J. Russell Bruner, President and Chief Executive Officer, Maersk Line, Limited KEY POINTS
• Civil Reserve Air Fleet (CRAF) support is an integral part of the DOD’s war plans, and must be exercised regularly to ensure military readiness • The railroads are fully committed to supporting the military and are investing heavily in infrastructure • The Maritime Security Program (MSP) is vital to the readiness of the US-flag fleet and needs to be funded at higher levels to ensure carrier viability and availability • In the trucking industry, prices are anticipated to rise; sharing data and keeping the lines of communications open with the carriers will help mitigate price increases SYNOPSIS:
The state of the global airfreight is in a growth environment. The cargo side rebounded from the economic downturn in 2008 and 2009, and has experienced year-over-year growth from 2010 through 2015. Over the next five years, international airfreight is expected to grow at a compounded annual growth (CAGR) rate of 4.9 percent. The Asia-Pacific region, anchored by China and the Middle
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East will remain the largest airfreight markets. Global scheduled service passenger demand is expected to grow at a five year CAGR of 5.8 percent, but charter passenger demand is expected to remain weak for the foreseeable future. In stark contrast is the continued dramatic decline of expected military demand for both passengers and cargo. The CRAF Program is a wartime readiness program, and its main purpose is to ensure quantifiable, accessible and reliable commercial airlift capability to augment DOD airlift. The CRAF plays an integral role in the airlift mobility enterprise because they have historically provided 40 percent of all cargo and 90 percent of all passenger airlift for DOD, but, due to declining demand, the CRAF Program has been under pressure. Many carriers highly dependent on CRAF have failed or left the market. Reasons for this include funding issues and commercial leakage. Readiness is crucial to the nation’s defense; military requirements are unique and require the carriers to maintain a proficiency and readiness which necessitates practice, exercise and training. RAILROADS
Railroads play a unique role in the global supply chain. Throughout the US there are 138,000 route miles of track structure. One challenge facing railroads is the increased volatility in the traffic base. Even the top volumes in 2014 were far below the levels seen in the mid-2000s. The US rail industry requires higher capital investment. For example, 17 percent of CSX’s revenue has been invested back into its properties which include tracks, locomotives, cars and labor. Capital spending is increasing. In 2015 spending is anticipated to go mainly to infrastructure, with the remaining investments being made in equipment, strategy (growth, capacity, technology, etc.) and regulatory compliance. The biggest issue in regulatory compliance is mandated
positive train control ruling. Railroads are fully committed to support the military and planning. The rails give priority to military shipments, and better traffic forecasts and timely communications helps to reduce risks. SEALIFT
Today, the US-flag fleet is ready to support DOD, but does see risk in the future. Global container lines are experiencing challenges. Global capacity continues to grow; however, container demand is soft which is presenting a widening gap in supply and demand. The US-flag container market continues to decline, and the US-flag fleet is at an all-time low. It costs three times more to operate a US-flag vessel than an international flag vessel. The global roll-on roll-off (Ro-Ro) market has been flat for several years. Since 2010, there has also been a steady decline in the US-flag Ro-Ro market, with an estimated decline of 70 percent in the DOD market. The US-flag privately owned fleet hit an all-time high after World War II with 1,288 vessels, and now is down to 167 vessels. Just between the years 2000 and 2015, the US-flag fleet has gone from 282 to 167 vessels. We need to find ways to stabilize the current US-flag fleet so it has the ability to support DOD and the Department of Transportation. On the cargo side, sealift experienced significant growth after 2003, the start of the Iraq conflict, and peaked in 2010. The industry expected a decline, but is quite surprised to see, in some cases, peace-time volumes
25 percent lower than in previous times of peace. These numbers make it very difficult from a commercial point of view to support a US-flag fleet. The MSP and Voluntary Intermodal Sealift Agreement (VISA) are the key US-flag programs. MSP establishes a fleet of active, commercially viable, military useful, privately owned vessels to meet national defense requirements. Under the terms of the program, participating vessel operators are required to make their ships available to the DOD during times of war or national emergencies, and in return the government provides an operating stipend. VISA is DOD’s sealift readiness program through which it obtains assured access to US-flag vessels and supporting intermodal capabilities, if needed. Currently, there are nine operators, managing 60 slots in the MSP program and USTRANSCOM has acknowledged this number will meet the needs of future contingencies. The US-flag international carriers utilize the networks of global shipping companies, and these networks may extend into areas that the US government does not have access to, but may need to access in the future. The MSP program is vital to readiness of the US-flag fleet and we need to fund it at higher levels to ensure vessel owners maintain their status as US-flag ships and do not reflag to a non-US-flag ship for financial reasons. TRUCKING
The trucking sector dwarfs other modes in scale, and truckload accounts for the bulk
DTMO & GSA Passenger Travel Programs for Our People By Rebecca Jones, Executive Assistant to the President, NDTA
of US trucking. Trucking accounts for 82 percent of all freight spending in the US. After de-regulation of the trucking industry in the 1980’s, the industry became more efficient and an economic powerhouse. Assets drive capacity, which includes fixed assets, rolling assets, labor and regulations (how assets can be utilized). Future regulations will require more trucks and drivers to haul the same amount of freight. A couple of the biggest challenges to reducing capacity are the electronic logging device (ELD) mandate and Hoursof Service changes. The ELD is placed in trucks to track driving hours, which eliminates paper logs and the falsification of records. If utilizing ELDs becomes mandatory, trucking companies operating outside of the hours of service will not be able to stay in business. If there is a trucking and driver shortage, then transportation costs will go up, so no one should expect to get reductions in transportation rates in the next few years. Slow growth coupled with capacity limitations changes the competitive landscape. The trucking industry anticipates slow economic/freight growth, rate volatility in the truckload market, and less than truckload and intermodal to benefit from pricing and volume perspectives. Rate increases will be necessary to pay drivers better, industry consolidation is likely to continue, and third party logistics providers (3PLs) will continue to play an important role in the trucking industry.
Speakers Harvey Johnson, Director, Defense Travel Management Office (DTMO) and Timothy Burke, Director, Travel and Transportation Services, US General Services Administration (GSA) KEY CONCEPTS:
• Across the Department of Defense (DOD), there are a lot of drivers for change, including sequestration, budget cuts, and the Office of Management and Budget (OMB) directive for a 30 percent reduction on travel spending • DTMO is working on innovative solutions for more efficient travel, including a compliance program which found instances of duplicate lodging and car rental payments • DTMO converted to chip and PIN card technology for the government travel charge card for better security; better rebates for usage and timely payments resulted in $30 million in rebates back to DOD last year • DTMO has instituted a flat-rate per diem policy change to incentivize people to look for extended stay facilities • DTMO instituted a lodging program, partnered with GSA and based on their success with FedRooms, to cut excess costs www.ndtahq.com | 15
SYNOPSIS:
DTMO and GSA are working together, and with industry, to improve efficiency within government travel, reduce excess spending, recuperate rebates and turn them back to DOD, and improve the travel experience for government travelers. DTMO is working at simplifying policies, beginning with cutting the Joint Travel Regulations from 1,600 pages down to 100 or less. The US Digital Services (USDS), which helped the White House get the health care system back online, did an evaluation and advised that DTMO needed to simplify that policy. Changes included cutting the category of travel reasons from 168 down to 8, and cutting traveler types from 81 down to 3.
“This arm of the Defense Travel Management Office is giving the rest of the government a springboard to materialize the necessary discipline and structure around data-driven good decision making, and balancing a program’s procurement and policy against their performance.” – Timothy Burke DTMO has partnered with GSA on a lodging program based on GSA’s success with the FedRooms program. By leveraging their relationships with industry, GSA has increased the number of hotels participating in their program from 6,000 in 2004 to over 9,000 in 2015. Those hotels represent over 1,000,000 room nights going through the FedRooms website, at a savings to the government of approximately $5-6 million annually. Partnering off that success, DTMO has contracted with 52 hotels for the program so far. One hundred percent of those hotels are Federal Emergency Management Agency (FEMA) compliant, and are rated two crowns or above. They have leveraged with those properties for certain criteria, such as security lights, interior doorways, free Wi-Fi, and other benefits. In the near future, also in partnership with GSA, they will have a hotel app called “Digital Key” which will enable travelers to bypass the hotel front desk and go straight to their rooms. DTMO recently launched a frequent renters program for car rentals that will enable the traveler to bypass the counter, avoiding “upsells” of unnecessary extras, and saving time. DTMO is also looking at creating a dining program, wherein they contract with certain restaurants, and when travelers dine at those locations, they receive rebates which are returned back to DOD. 16 |
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DOD Official Acclaims TRANSCOM’s Cyber, Innovation, Acquisitions Strides By Amaani Lyle, DOD News, Defense Media Activity Originally published on www.defense.gov Sept. 30, 2015
T
he defense logistics program is “doing what it was built to do,” showing cost savings in recent years despite budgetary restraints, the principal undersecretary of defense for acquisition, technology and logistics said at the NDTA’s Fall Meeting. At the event, co-hosted with US Transportation Command, Alan F. Estevez praised TRANSCOM’s “unparalleled” ability to deploy and sustain forces across long distances with a continued focus on acquisitions, innovation and cyber, even though fiscal year 2017-2021 budget plans could be built on the precarious 2016 budget, still in wet cement and pending congressional approval. “We’re building off a ‘16 budget that doesn’t exist, … and whatever we get in the ‘16 budget is probably going to be lower than that $538 billion,” Estevez said of current defense funding that sequestration cuts could pare by $38 billion. Estevez warned that the Defense Department could end up with funding less than sequestration levels, at about $498 billion, under a yearlong continuing resolution. “Over the last six years, we’ve gone into a continuing resolution every first quarter,” he noted. “All these things to save money for the budget actually cost the American people dollars and they cost your military combat power, and that is not a good place to be,” Estevez said. “But that’s the reality we’re living in today.” READINESS, FORCE STRUCTURE, MODERNIZATION
In the meantime, he said, DOD and TRANSCOM will build on the budget foundation the department has, with a lens on force readiness, force structure and modernization. “The hollow force is not something we want to revisit,” Estevez said. “If we trade away our modernization, that means we end up fighting in the ‘20s and ‘30s with the tools that were bought in the ‘80s and ‘90s.” Moreover, he said, competitors could suddenly nose ahead with better capabilities and
DECEMBER 2015
acquisitions, depriving the US of the battlefield edge it has enjoyed for decades. “One of the things we have lived with for the last 30 to 40 years is we never go into it in a fair fight, because we have better stuff,” he said. DEVELOPING CYBER AND INNOVATION
TRANSCOM’s cyber networks, similarly to those of the Office of Personnel Management, are prime targets for network breaches, Estevez said. The military and industrial base comprise the logistics realm, he added, but a reliance on the commercial sector—particularly Silicon Valley—will increase as TRANSCOM bolsters its innovation and cyber capabilities. DOD has since set up a Defense Unit Innovation Experimental in Silicon Valley, where he said “great things” are going on. “One thing we’re not going to get from Silicon Valley is a weapons system,” Estevez said. But there are some great tools that we can build into our weapons system,” he added, such as robotics and other technology in development there. ACQUISITIONS IMPROVEMENTS
Estevez also described improvements in TRANSCOM’s acquisitions. “More programs are showing cost savings over the last five years in their acquisition than have gone up, which is a dynamic number,” he said. Ultimately, he said, DOD senior leaders perceive logistics as one of the differentiators in readiness. “There’s always a risk of cutting too much on the logistics side, and we’ve got to watch out for that.” That logistics capability, he added, is what creates the capacity to go into combat. As TRANSCOM continues support of operations to thwart the Islamic State of Iraq and the Levant, with concurrent attention to logistics capabilities in Europe and across the Asia Pacific region, Estevez emphasized the command’s importance. IMPORTANCE OF LOGISTICS
“When Defense Secretary Ash Carter was undersecretary of defense for acquisition, technology and logistics, Estevez said, Carter told him in an amusing way how important logistics is, saying, “Logistics is like oxygen: when you got it, you don’t think about it. When you don’t got it, that’s all you think about.” To keep the US advantage, Estevez said, a Joint Staff and combatant command leadership summit is scheduled in the coming months. “We are going to have a contractor force out there no matter what fight we’re in,” he added, “and we’ve got to plan for how that contractor force is going to operate with us.”
Congress, DOD & Industry – Shaping the Legislative Environment By Sean Caulfield, Vice President, Caulfield Consulting Moderator Kurt LaFrance, Director, Legislative Affairs, USTRANSCOM with panelists: • Jon Etherton, Principal, Etherton and Associates • Stan Soloway, Chief Executive Officer and President, Professional Services Council (PSC) • Lynn Williams, Professional Staff Member to the House Armed Services Committee (HASC) KEY CONCEPTS:
• The National Defense Authorization Act (NDAA) is the most impactful piece of legislation from an acquisition reform perspective we have seen in many years • There is real opportunity with this legislation to inculcate it into the culture and actualize it • From a stakeholder perspective, the bill focuses on areas that need attention: accountability, leadership and people • The acquisition workforce as a whole must be properly trained in order to move forward, function and operate in the technology community SYNOPSIS:
Acquisition reform embodied in the NDAA is the most important issue facing transportation and logistics because it will affect the entire enterprise. The NDAA process started two years ago with then-Chairman Buck McKeon fighting the Budget Control Act and sequester. Many believed defense had plenty of money, and he turned to Vice Chairman Mac Thornberry for support. Thornberry, who took over for McKeon when
he retired, joined forces with others on the Senate Arms Services Committee for joint support. Together they got a bi-partisan, bi-cameral letter out to the defense industry asking for direct and actionable feedback on the NDAA. There is a commitment from the chairman to work through the NDAA, and continue working to get the most out of every dollar allocated towards national defense. There is a lot in the bill that opens doors to things many of us have been pushing for years, but one must keep in mind legislation is not the problem; the problem is in the system and the department. We have more work to do on the “user” side not the “writing” side, but this is the first step in the process for acquisition reform. From a stakeholder perspective, it is largely an issue of accountability, leadership and people, and the bill focuses on these areas. The committee working on the bill focused on foundational issues, like providing authority and tools to the acquisition workforce. Providing the workforce with opportunities for education, experience and resources will help meet requirements coming from Congress, DOD and others. It is more about people than law, and it is a leadership challenge because you cannot legislate good leadership. People and culture have to change, and while you can improve the tools and give people authority, leadership and culture have to support it. The department has a huge challenge. In the commercial marketplace, the combination of analytics and the cloud are changing the most basic industrial services, such
as freight movement, fleet and facilities management. There is a need to improve the workface, train and develop them to buy in a commercial way, but how do you train and retain a workforce when needed skill sets are changing and evolving rapidly due to technological advances? Additionally, you may need fewer contracting people because of the availability of data. In this scenario, the workforce would be highly skilled, technologically sophisticated and focused on complex needs. Based on what is happening in industry, it appears the acquisition workforce will need to shift to have different competencies, and the process of ensuring the acquisition workforce has the specific capabilities needed in the future must be managed. Today, the acquisition process is a transaction-by-transaction approach, which does measure how well things are working, but cannot adapt to where we need to go, nor allow the workforce to evolve. Now is a perfect time to consider a transition, which would allow the acquisition and technology communities to more closely align because approximately onethird of contracting officers have less than five years of experience. Statistics from the Office of Personnel Management (OPM) show of the 80,000 members that make up the federal information technology (IT) workforce, there are ten people over 50 for every one person under 30, and this creates a demographics problem. In addition, incentives are not aligned because the workforce is measured on process compliance, not program effectiveness, which would entail a large cultural shift. In order to improve, we need to look at value and accountability, and measure how well people conduct a transaction. In the short term, some things can be done like mandating a statement of objectives rather than a statement of work. Also, by encouraging the use of innovation templates, and requiring them as an addendum to proposals, the company submitting a proposal can highlight innovation, cost and return on investment (ROI), which can help evaluators make decisions. There will be follow up work on its implementation. How the department embraces provisions, if it decides to use them, and how it implements them remains to be seen and will take time. The template is set in this year’s bill, we will continue to focus on the acquisition work force and are determined to get requirements right moving forward. www.ndtahq.com | 17
The Ebola Response, A Case Study by Susan Caulfield, President, Caulfield Consulting Moderator Maj Gen Rowayne A. Schatz, Jr., USAF, Vice Commander, Air Mobility Command with panelists: • Maj Gen Jim Vechery, USAF, Director of Logistics, US Africa Command (USAFRICOM) • Jeff Crippen, President and CEO, Omni Air International • Guy Beougher, Executive Director, Logistics Operations, Defense Logistics Agency (DLA) • Bleu Hilburn, Director of Logistics, Crowley KEY CONCEPTS:
• Communication was key to the success of the Operation Unified Assistance (OUA) • Joint training practice was important to the success of the operation and allowed for a system to already be in place • Leveraging commercial capabilities and existing relationships was essential to mission success SYNOPSIS:
In September 2014, President Obama gave guidance to the Department of Defense (DOD) to support people in need, combat the spread of Ebola and prevent its spread to the US. The US focused on Liberia, while the United Kingdom and France focused on other countries. With OUA, the timeline was impressive. The Joint Staff signed an execution order the day before the president’s speech, starting things in motion. Within 24-hours of that order the US had an initial assessment team from the joint task force was in the air. There were initial concerns about the lack of a US military infrastructure, especially airports and seaports, in place. Within a week, there was good intelligence and initial forces followed to help open ports. For the first month, US Transportation Command (USTRANSCOM) provided the main support. Gradually, US Army in Africa, with joint headquarters staff, came to assume command and control. Central to the mission was providing medical equipment and tents to build initial health care centers for training health care workers and establishing a hospital environment. At the height of the effort there were close 18 |
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to 3,000 soldiers on the ground. By May 2015, almost everyone was deployed back and the operation ended. There are a number of important lessons learned from this mission. First, relationships matter. Having established relationships means when a crisis occurs, necessary connections are already in place. While OUA was occurring, there was a lot happening in other parts of the world, and the US was able to bring capacity to bear. Second, constant communication and information sharing between commercial partners and the military was critical to undertaking this massive effort in a short time frame. We built the plan as we were executing it, and communication was vital. Another important lesson learned was that DOD acquisition works. With tight turnaround times, people within the acquisition community were making things happen. Lastly, joint training and exercises allow for strategic success. Practice, working exercises and joint training between USTRANSCOM, DLA, AFRICOM, and commercial partners laid the groundwork for accomplishing the mission. Handling the Ebola crisis in Liberia is a great news and logistics success story. In May 2015, Liberia was declared Ebola free. Once in country, AFRICOM made sure the airfield could be used by the military, deployed two joint task force teams and handed it off to DLA to set up deployable depots. With the use of the aerial port, sea port, warehousing, and contracting support, the US effort was set for success. The original design of OUA was for a planned heavy military presence and then a shift to contracting capability. This approach was chosen to minimize the footprint on ground and put less people at risk. The
DECEMBER 2015
lead federal agency was the US Agency for International Development (USAID), which was concerned about working with the military. With this in mind, DLA partners brought in disposition teams to assist in getting personal property and real property authorizations in place, and allow for transition to other organizations and the government of Liberia. Ultimately, oversight was successfully transitioned to the World Food Programme, and the US military monitored the transition to ensure it went smoothly. Commercial partners, such as Omni Air and Crowley, ensured the mission’s success, and communication was key to their ability to stand side-by-side with the military in support of the effort. For Omni Air, it was critical to communicate to all components including maintenance, pilots, and flight attendants on the importance of the mission. There was a lot of fear about Ebola and that could not interfere with bringing home relief personnel who had possibly been exposed to the disease. Omni told all workers to call the company chairman or president 24-hours a day if they had any issues. Communication and planning were essential to ensure things ran smoothly. Omni’s goal was to make sure communications got to every element that touched each aircraft and/or passenger. From Crowely’s perspective, trust and relationships are essential to operations like OUA. Crowley got involved because it had the capability and speed to respond to the situation, and had existing relationships and partners in Liberia. The success of the mission was due to the fact that military and commercial partners were able to set the theater, and utilize existing relationships. Large-scale presence and support from the US gave the people of Liberia hope.
NDTA-USTRANSCOM 2015 Fall Meeting Survey RESULTS Thinking about the Fall Mee1ng you just a5ended, how would you rate the benefit of a5ending?
Did you a)end NDTA-‐USTRANSCOM University? 100
88
90
73
80
35.6%
45.0%
Yes
70
No
60
If No, why not?
50 40
19.4%
26
30 20
5
10
How likely is it that you would recommend this event to a friend or colleague?
60
0
Very Beneficial
Beneficial
Somewhat Beneficial
0
Li>le or No Real Benefit
N/A
50
What were your primary reasons for a2ending the mee5ng? Select up to three answers.
n
4o
ns
ca
io Se
ss
ee
ge te
to
ro
ng
r-‐P W
as
hi
to en M
16.3%
7.4%
g 4n
kin or
O M CE
ll w Ne t
no Ke y
H a
cs pi
sio es y S
D a
ee
rs
ity
i1
ive
m m Co
Un
4.8%
po
ns
gs 4n ee M
To a%end this mee.ng, I traveled from:
g
13.7%
Ex
Extremely likely -‐ 10
9
rs
8
T o
7
le
6
ab
5
dt
4
un
3
ke
2
ea
1
36.3%
30.0%
Ro
Not at all likely -‐ 0
0
35.8% 36.3%
Sp
10
65.8%
55.3%
lo
70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%
20
te
30
n, D C
40
Outside the United States
18.2%
Inside the District of Columbia
77.0%
Did the social opportuni1es (breaks, breakfast, lunch, expo, and recep1ons) provide adequate 1me to network among your industry and DOD colleagues?
Outside the District of Columbia (please indicate from what State)
1.6% Yes, it was a perfect amount of networking =me.
20.4%
Did you a)end the NDTA exhibit hall? 5.8%
No, I would have liked more =me to network. No, I would have preferred less networking =me.
78.0%
Yes
No
94.2%
Which of the following best describes your current occupa6onal status? 4.2%
How long have you been a member of the NDTA? 6.8%
9.4%
12.5%
6.8%
Re.red Military
Less than 1 year
22.5%
Government
1 to 2 years
11.5%
53.6%
2 to 5 years
Re.red Government
20.8%
Industry Re.red Industry
5 to 10 years
17.3%
32.5%
Ac.ve Duty Military Military Reservist
Full Time Student
Over 10 years
Other (please specify)
2.1%
The %me spent at the NDTA exhibit hall was: How beneficial was the NDTA-‐USTRANSCOM University? 100 90 80 70 60 50 40 30 20 10 0
92
83
90 80 70 60
55
50 40
44 14 Very Beneficial
Beneficial
26
30
29
Somewhat Beneficial
20
5 Li>le or No Real Benefit
13
12
Li>le or No Real Benefit
N/A
10 N/A
0
Very Beneficial
Beneficial
Somewhat Beneficial
www.ndtahq.com | 19
Right Place, Right Time, Right Connections By Sharon Lo Managing Editor, DTJ and NDTAGram Photos by Cherie Cullen NDTA held its annual exposition Sept. 29-30 at the Gaylord National Resort and Convention Center in Maryland. The crowded expo hall floor included visitors and attendees from industry, the military and government. Participants came to learn from one another, showcase their capabilities, and to make significant connections with their colleagues in logistics and transportation. The expo provided a high quality venue for exhibitors and attendees to form new relationships and renew old acquaintances. NDTA thanks all the exhibitors, who played a major role in the vibrant atmosphere. Dynamic displays, vehicles and a simulator on the expo hall floor gave attendees some hands-on engagement. The NDTA expo has experienced growth in recent years, a trend that is expected to continue next year as the expo moves to St. Louis, Missouri. With more displays and even greater attendance expected, in 2016, the NDTA Expo is sure to be an event you won’t want to miss.
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DECEMBER 2015
Participation and attendance at the NDTA Exposition does not imply support or endorsement by USTRANSCOM, its component commands, or any other US government entity.
www.ndtahq.com | 21
PLATINUM SPONSORS
GOLD SPONSORS
SILVER SPONSORS
American Roll-On Roll-Off Carrier (ARC) • Crowley Maritime Corporation DHL Express US • FedEx Government Services • Intermarine, LLC • Liberty Global Logistics, LLC Menlo Logistics • Port of Port Arthur • Southwest Airlines, Co. • The Pasha Group Transportation Institute • Travelport • Universal Truckload Services, Inc • U.S. Bank
BRONZE SPONSORS AAT Carriers, Inc.
•
Avis Budget Group
•
Concur Technologies
•
CSX Transportation
•
Hapag-Lloyd USA, LLC
Proceeds from the NDTA Sponsorship Program support the NDTA general operating fund. Participation in the NDTA Sponsorship Program does not imply support or endorsement by USTRANSCOM, its component commands, or any other US government entity.
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DECEMBER 2015
•
LMI
Photo courtesy of Rufus Labs
WEARABLE TECHNOLOGY Your Next Great Workforce Tool By Gabe Grifoni, CEO and Co-Founder, Rufus Labs • rufuslabs.com
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earable technology has the opportunity to change the way we work. Not only do wearable devices free up hands, allowing workers to do their jobs more efficiently and unencumbered by additional handheld devices, but they also bring big improvements to safety on the job. Additionally, embedded sensors and software built into wearables will provide business owners, warehouse managers, construction site supervisors and hospitality administrators with valuable data on employees ranging from health statistics, to location and workflow patterns, among other things—allowing them to better manage their teams and streamline operations through data analysis. Enhancing safety and efficiency in warehouses starts with updating current technology on the job. Most devices in use today are outdated, bulky and expensive. Laptops, tablets, handheld scanners and other devices require the use of both hands and constantly picking things up takes away time from the job, slowing down workers. This is a major problem that wearables solve. Instead of having to pick up or put down devices, the information you need is right in front of your eyes in your visor, in your gloves, up your sleeve or any combination of the three. Experiments like Google Glass and Oculus Rift sparked the initial possibilities of what wearables
could bring through visual overlays and virtual workplaces. Since then, wearables have moved to almost all parts of the body. Warehouse and distribution centers can benefit greatly from wrist worn and glassesstyle devices, guiding workers around floors with directional arrows to quickly arrive at their destination and using wrist wear for input. Google Glass has already been beta tested in many vertical markets, and while the hardware might not be quite ready for prime time, it’s a good start and Google has gone back to the drawing board for a revamp. Wrist wear is already on the market and a limited number of warehouses are currently engaged in beta tests. Devices that run Android or other operating systems are already powerful enough to replace traditional desktops with smartphone and tablets. These devices are making their ways onto warehouse floors and wearables are already starting to harness these powers, meaning there are no technological or compatibility issues. Wearables can streamline the multitude of devices used as well. For instance, wrist wearables with push-to-talk, touchscreen, pick and place software and a Bluetooth scanner could replace walkie talkies, handhelds and scanners all in one cost effective package. Imagine a pick and place operation where a worker simply places her arm into
Wearables can streamline the multitude of devices used as well. For instance, wrist wearables with push-to-talk, touchscreen, pick and place software and a Bluetooth scanner could replace walkie talkies, handhelds and scanners all in one cost effective package.
a bin and grabs an item to add to her checklist without any input from the user at all. Inexpensive technologies like near field communication (NFC) or radio-frequency identification (RFID) can “tag” bins so a nearby wrist wearable would know what is being grabbed. If these wrist worn devices had screens or were connected to heads-up glasses or other wearable displays, it could also alert wearers of what aisle and bin to head to next, allowing the wearables to guide them without missing a beat. In order to achieve success in warehouses, construction or other harsh environment workplaces, wearable companies need to focus on ruggedizing their products. Workers are surrounded by heavy objects such as industrial machines and materials in a fast-paced environment, and need durable devices to ensure their wearable www.ndtahq.com | 23
In order to achieve success in warehouses, construction or other harsh environment workplaces, wearable companies need to focus on ruggedizing their products.
tools maintain utility. Whether that be creating ruggedized housings for the wearables or simply ensuring water- and dustproofing, warehouses will find added value in technology that will prevail against the elements of the workplace. As the primary focus is always on safety, another design element wearables will need to take into account is the ability to break free in the event of an emergency or a workplace accident. A worker wearing a glove or wrist wear whose hand gets caught in a machine would benefit greatly from a design that considered this potential and built safety mechanisms in place that allowed the device to break off in such instances, keeping the wearer’s arm or hand from being snagged or trapped in heavy machinery. Before wearables can significantly affect the warehouse industry, institutions and businesses utilizing the warehouses must establish a robust infrastructure to support wearables. Internet of Things (IoT) connected devices in the warehouse space will
need a foundation consisting of a robust WiFi mesh network along with Bluetooth beacons placed throughout the warehouse. Most workplaces and warehouses have WiFi or Internet access points already in place. Adding repeaters and increasing the number of access points is an inexpensive way to create a grid of the warehouse floor, allowing supervisors the ability to better move their team members around. Low energy Bluetooth beacons placed in aisles, doorways and hallways can instantly tell workers’ wearables what information to display before a user even interacts with their device. The potential is great with the right infrastructure and, luckily, this can be done at a low cost and with existing technology. One area where wearables often fall short is battery life. Wearables are built to be light and comfortable, at the expense of a larger size or weight. Hardware makers strive to get their printed circuit boards (PCBs) as small as possible to miniaturize the size of the devices, but this can only go so far.
Photo courtesy of Rufus Labs
Once that is as small as it can be, the rest is for battery—and this is where the tough decisions have to be made as to how big and how heavy it can be without being too big and too heavy. This is not an easy measure to determine, but until battery technology evolves considerably, these tiny, light, wearable computers that require a good amount of power will need large batteries to make them run for extended periods. In a warehouse space it’s critical that devices last for eight or 12 hour shifts, which is actually quite difficult to accomplish, especially when one considers that even some of today’s smartphones, which are much heavier cont’d on pg. 28
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PROFESSIONAL DEVELOPMENT The Value of Internships in Logistics Irvin Varkonyi, Past President, NDTA DC Chapter and Master Instructor, APICS DC Metro ivarkonyi@scopedu.com
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ave you ever considered seeking internships in career transitions? Depending on where you find yourself, an internship may be just the right option to take advantage of new career opportunities. Our recent NDTA-USTRANSCOM Fall Meeting University Day was successful in many ways, among them greater awareness by attendees of the need to continue a lifelong pursuit of knowledge. Identifying and completing internships with logistics organizations will complement knowledge that you’ve gained by providing an opportunity to learn on the job and apply knowledge. Inbound Logistics magazine offered five tips to land successful internships:1 1. Be focused and realistic, and don’t be afraid to ask for help. Use tools such as LinkedIn; network with current or past faculty, alumni, and classmates. Find companies in the industry you may want to enter, and research their executives and job descriptions. Seek out appointments with the goal to receive their advice on internships. They may not have an internship, but people like to be asked for advice. 2. Develop a plan that aligns with your personal strengths and professional goals. Target diverse industries that align with your skills, interests, and goals. Be prepared to consider several internships, but don’t feel a need to accept just any internship. Try to find an internship that will best use your skills and provide valuable experience to help achieve your career goals. 3. Take the initiative. No one cares more about your career than you do. Networking is tough and exhausting—until it becomes a hobby. Connect with people during organized events, conferences, and seminars, as many of you had the opportunity to do at the NDTAUSTRANSCOM Fall Meeting. Thank those whom you’ve met promptly. 4. Don’t get frustrated, never give up, and work hard. Your first interview may be via phone, so be prepared if you can’t see an individual face to face. Speak clearly and slowly if on the phone. Consider practicing with friends or family.
5. Supply chain jobs are not limited to one industry, so stretch your search parameters. Apply to multiple companies in several industries, including electronics manufacturing, social media, food producers, and fashion startups. Northrop Grumman is one of many companies in the defense sector which seeks internships. They offer internships to military, as well as to college students:2 1. For college level internships we typically look for rising sophomores, juniors, seniors, and graduate students at accredited colleges and universities 2. We look for high potential students of all grade levels, and even have internship opportunities for high school students 3. Work assignments typically begin in May/June and end in August/September (minimum 8-12 week commitment). There are some opportunities for interns to stay on in a part-time internship capacity year round. 4. Included in many of our intern programs are orientation and kick-off events, networking opportunities with leadership and other interns, social activities, and learning sessions Are you interested in an internship with the Federal Government? Consider www. acq.osd.mil/dpap/ops/intern_opportunities.html. Here are just a couple of sample intern opportunities: ARMY
The Department of Army administers the ACTEDS Intern Program, which takes in-
dividuals from entry level positions to positions of mid-level management. Through on-the-job training and formal classroom instruction, thousands of civilian employees have been trained in a variety of career fields. Many of Army’s senior-level civilian leaders are products of the intern program. Don’t mistake the term “internship” with the typical non-paid internship in the private sector. ACTEDS intern positions are permanent, full time civilian positions for which recruitment is currently being conducted! Take your time as you look at this site. Our civilian workforce utilizes positions ranging from accountants to biologists. You might be surprised at the opportunities that are available! NATIONAL SECURITY AGENCY (NSA)
The Centers of Academic Excellence (CAE) in Cyber Operations Summer Intern Program is the NSA’s premier outreach program for students enrolled in the cyber operations specialization at NSA-designated universities. Selectees will be invited to participate in a 12-week summer program to gain knowledge of specific cyber-related topics and apply educational knowledge to address various real world mission-related technical challenges. Participants in the program will work on a broad range of problems involving applications of computer science and engineering. Good luck. Please tell us how it works out for you! DTJ 1 Inbound Logistics, March 2013 2 www.northropgrumman.com/Careers/ StudentsAndNewGrads/Pages/Internships.aspx
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CHAIRMAN’S CIRCLE
These corporations are a distinctive group of NDTA Members who, through their generous support of the Association, have dedicated themselves to supporting an expansion of NDTA programs to benefit our members and defense transportation preparedness.
AAR CORP. + PLUS Agility Defense & Government Services + PLUS AIT Worldwide Logistics, Inc. + PLUS American Roll-On Roll-Off Carrier (ARC) + PLUS APL Limited + PLUS Atlas Air Worldwide Holdings + PLUS Bennett Motor Express, LLC + PLUS Boyle Transportation, Inc. + PLUS CEVA Logistics + PLUS Concur Technologies, Inc. + PLUS Crane Worldwide Logistics, LLC + PLUS FedEx + PLUS Final Mile Logistics + PLUS Freeman Holdings Group + PLUS Hapag-Lloyd USA, LLC + PLUS Innovative Logistics, LLC + PLUS International Auto Logistics + PLUS Interstate Moving | Relocation | Logistics + PLUS Landstar System, Inc. + PLUS Leidos + PLUS Liberty Global Logistics-Liberty Maritime + PLUS Maersk Line, Limited + PLUS Mainfreight, Inc. + PLUS National Air Cargo + PLUS Omni Air International + PLUS Panalpina + PLUS Schuyler Line Navigation Company LLC + PLUS Supreme Group USA, LLC + PLUS TOTE, Inc. + PLUS Universal Truckload Services, Inc. + PLUS Aeroscraft Best Western International BNSF Railway Bristol Associates Choice Hotels International Concur Technologies, Inc. Crowley Maritime Corp. CSX Transportation 26 |
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Echo Global Logistics, Inc. R & R Trucking Raith Engineering & Mfg. Co. W.L.L. Global Logistics Providers LLC Hybrid Enterprises SAIC International Shipholding Corporation The Pasha Group U.S. Bank Knight Transportation Matson Navigation Company Inc. Union Pacific Railroad National Air Carrier Association UPS Norfolk Southern Corporation Walnut Industries, Inc. Ports America
DECEMBER 2015
HONOR ROLL
OF
SUSTAINING MEMBERS AND REGIONAL PATRONS
ALL OF THESE FIRMS SUPPORT THE PURPOSES AND OBJECTIVES OF NDTA
SUSTAINING MEMBERS 1-800-PACK-RAT AAT Carriers ABF Freight System, Inc. Accenture Federal Services Advantage Rent A Car Air Transport International, Inc. Airlines for America Albert Moving Al-Hamd International Container Terminal American Maritime Officers Army & Air Force Exchange Service ARTEMIS Global Logistics & Solutions Arven Freight Forwarding Arven Services, LLC Associated Global Systems Atlas International ATS Specialized, Inc. Avis Budget Group aVolt Incorporated Baggett Transportation Company Benchmarking Partners, Inc. Boeing Company Bollore Africa Logistics C.L. Services, Inc. C2 Freight Resources, Inc. Carlson Rezidor Hotel Group Chalich Trucking, Inc. Chamber of Shipping of America Coyne Airways Coyote Logistics, LLC CWT SatoTravel DAMCO Delta Air Lines DHL Express REGIONAL PATRONS Acme Truck Line, Inc. AFBEN, Inc. Agile Defense, Inc. Airbus Group, Inc. Alaska Marine Lines Alaska West Express American Moving & Storage Association American Trucking Associations Amyx Association of American Railroads C5T Corporation CakeBoxx Technologies Cargo Experts Corp. Cavalier Logistics CeLeen LLC Ceres Terminals Incorporated CGM-NV a NovaVision Company
Eagle Freight, LLC Engility Corporation Enterprise Database Corporation Estes Forwarding Worldwide, LLC Europcar Car & Truck Rental Executive Moving Systems, Inc. Extended Stay America, Inc. FlightSafety International Fluor FMN International, Inc. GE Aviation General Dynamics/American Overseas Marine GeoDecisions Greatwide Truckload Management Green Valley Transportation Corp. Hanjin Intermodal America, Inc. Hertz Corporation Hilton Worldwide Horizon Lines, LLC IBM Institute of Hazardous Materials Management Intercomp Company Intermarine, LLC Intermodal Association of North America (IANA) International Longshoremen’s Association (ILA), AFL-CIO International Organization of Masters, Mates & Pilots Kansas City Southern Keystone Shipping Co. KGL Holding KROWN1 FZC Kuehne + Nagel, Inc. Labelmaster LMI
Lockheed Martin Aeronautics Logistic Dynamics, Inc. M2 Transport Manufacturing Skill Standards Council Marine Engineers’ Beneficial Association Martin Logistics Incorporated Mayflower Transit McCollister’s Transportation Systems, Inc. McLane Advanced Technologies Menlo Worldwide Logistics Mercer Transportation Company National Van Lines, Inc. Network FOB, Inc. Northern Air Cargo Inc. Ocean Shipholdings, Inc. Omega World Travel Omnitracs, LLC One Network Enterprises, Inc. Oracle ORBCOMM Panther Premium Logistics PGL Pilot Freight Services PODS Port of Beaumont Port of San Diego Pratt & Whitney Preferred Systems Solutions, Inc. Prestera Trucking, Inc. Priority Solutions International Priority Worldwide Services Ramar Transportation, Inc. Roadrunner Transportation Systems Savi SBA Global Logistic Services
Scotlynn USA Division, Inc. Seafarers International Union of N.A. (SIU NA) Sealed Air Corporation Sealift, Inc. Secured Land Transport SEKO Logistics SkyLink Air & Logistic Support (USA) II, Inc. Southern Air Southwest Airlines Co. SRA International, Inc. Teradata Corporation Textainer Equipment Management (U.S.) Limited Titan Services TQL Transportation Institute Transportation Intermediaries Assn. (TIA) Transportation Management Services Travelport Tri-State Motor Transit Co. (TSMT) TSA Transportation LLC TTX Company Tucker Company Worldwide, Inc. United Airlines United Van Lines, Inc. USA Jet Airlines USA Truck, Inc. UTi Aerospace and Defense Group Volga Dnepr Airlines Winston & Strawn LLP Women In Trucking Association, Inc.
Chapman Freeborn Airchartering Chassis King, Inc. Columbia Helicopters, Inc. Crystal Forwarding Dalko Resources, Inc. DB Schenker DPRA, Inc. Enterprise Holdings Enterprise Management Systems Fox Rent A Car Hospitality Logistics International Hub Group, Inc. JAS Forwarding John D. Odegard School of Aerospace Sciences Kalitta Charters, LLC Lineage Logistics LMJ International Logistics, LLC Lockheed Martin
M/S Securlog (Private) Limited, Pakistan MacGregor USA, Inc. MCR Federal, LLC Mi-Jack Products Miramar Transportation Naniq Global Logistics LLC National Motor Freight Traffic Association, Inc. NCI Information Systems, Inc. NFI North Carolina State Ports Authority Oakwood Worldwide Overdrive Logistics, Inc. Overwatch, Inc. (a division of Avalon Risk Management) Owner-Operator Independent Drivers Association Pak Shaheen Freighters (Pvt) Ltd. Patriot Contract Services, LLC
Philadelphia Regional Port Authority PITT OHIO Port of Port Arthur Portus Reckart Logistics, Inc. REUSA-WRAPS Reusable Logistics Solutions, LLC RST Freight Seatac Marine Services Southeast Vocational Alliance TechGuard Security Tennessee Steel Haulers The Cartwright Companies Trailer Transit, Inc Trans Global Logistics Europe GmbH TRI-STATE Expedited Service, Inc. UniTrans International, Inc. Utley, Inc. YRC Freight
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3. Publisher: National Defense Transportation Association, 50 S. Pickett St., Suite 220, Alexandria, VA 22304; Publisher, RADM Mark Buzby, USN (Ret.); Managing Editor, Sharon Lo.
cont’d from pg. 24 and contain much larger batteries, wouldn’t last that long under constant use. This remains one of the greatest challenges for the wearable makers to overcome. Until a solution is found wearables will be a bit bulkier to start, but will get the job done and only stand to get better and slimmer over time. (Bulky in wearables is four ounces, which is miniscule when compared to the eight pound handheld devices used today.) As we become more connected as a result of IoT devices, businesses need to make sure their data, files and offices are secure. Wearables that measure biorhythm, pulse and other vitals that could serve as distinguishing characteristics can be used to validate a person’s identity and grant access to rooms, computer files and more. It is much harder to try and mimic someone’s heart rate than figure out a four-digit pin. These wearables that monitor vitals will also have to come with fail-safes if they are removed or tampered with, and with ways to lock up or destroy sensitive data if removed or worn by incorrect users. Most of the benefits of wearables discussed thus far monitor the user and his or her day. Wearables also have the ability to monitor the environment around them. The level and complexity of sensors that exist today can already be implemented in wearable design and provide valuable data on air quality, toxicity levels and temperature, allowing real-time data and warnings to the wearers themselves, keeping them from potential harm. Information collected from workers’ daily lives using body sensors can be used proactively to help prevent injuries, mistakes and future incidents as well. No longer will workers need to pick up a device to get assistance performing a task. They will be assisted by technology that adorns their body, a new part of the standard work uniform, making work better, faster and safer. Wearables will reshape the way we work and usher in a very futuristic industrial revolution. DTJ
4. Owner: National Defense Transportation Association, 50 South Pickett St., Suite 220, Alexandria, VA 22304-7296 (an incorporated association).
DTJ INDEX OF ADVERTISERS
By Sharon Lo
Scars and Stripes Scars and Stripes: The True Story of One Man’s Courage Facing Death as a POW in Vietnam by CAPT Eugene “Red” McDaniel, USN (Ret.) with James L. Johnson (WND Books, 2012), ISBN-13: 978-1936488476, 225 pages, Paperback $11.44.
A
nyone who attended the mentorprotégé luncheon held in conjunction with the NDTA-USTRASNCOM Fall Meeting was lucky enough to hear from a true American hero—Navy Captain Eugene “Red” McDaniel. For those of you who were unable to hear CAPT McDaniel speak, and even those that did, I recommend picking up a copy of his book, Scars and Stripes: The True Story of One Man’s Courage Facing Death as a POW in Vietnam. It is a harrowing tale of courage, survival, and faith that is sure to inspire you. While flying his 81st mission over North Vietnam, McDaniel was shot down in May 1967. He was listed as missing in
action and no one in the US knew of his fate until 1970 when the Hanoi government finally acknowledged he was being held as a prisoner of war (POW). McDaniel remained a prisoner for an additional three years until his release in March 1973. The six years McDaniel was a POW, he was one of the most brutally tortured prisoners of the Vietnam War. For his bravery, McDaniel was awarded the Navy’s highest honor, the Navy Cross, along with two Silver Stars, the Legion of Merit with Combat “V,” the Distinguished Flying Cross, three Bronze Stars and Combat “V,” and two Purple Hearts. Scars and Stripes describes McDaniel’s tale, but not simply of his capture and the brutality he faced at the hands of the North Vietnamese. Scars and Stripes tells the story of one man whose faith brought him through hell and back, and whose faith was so strong it also allowed him to inspire and provide strength to those around him. DTJ
DEFENSE TRANSPORTATION JOURNAL Statement of Ownership, Management, and Circulation as required by the Act of August 12, 1970; Section 3685, United States Code, for Defense Transportation Journal, published bi-monthly at Alexandria, Virginia, for September 2015. 1. Location of known office of publication: 50 South Pickett St., Suite 220, Alexandria, VA 22304. 2. Location of the headquarters of general business office of the publisher: 50 South Pickett St., Suite 220, Alexandria, VA 22304.
5. Known bondholders, mortgages, and other security holders owning or holding 1 percent of more of total amount of bonds, mortgages or other securities: There are none. 6. Average number of copies each issue during the preceding 12 months: Total 6,291; paid circulation by mail, 6,292; sales through dealers, carrier or other means, 275; free distribution by mail or other means, 0; total distribution 6,532; copies not distributed, 55. Percent paid and/or requested circulation: 97%. Sharon Lo, Managing Editor.
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APL................................................. C3 ARC.................................................. 2 Bennett........................................... C2 Budget............................................ 24 FedEx............................................. C4 Landstar........................................... 4 Maersk............................................. 1 Southwest Airlines............................ 7
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