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62nd Annual NDTA Forum & Expo PREVIEW | Where Dreams Take Flight

August 2008

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CONTENTS

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FEATURES ARC Names New US Flag Ship August 2008

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Vol 64, No. 4

PUBLISHER

LTG Ken Wykle, USA (Ret.) EDITOR

Kent N. Gourdin MANAGING EDITOR

Karen Schmitt | karen@ndtahq.com CONTRIBUTING EDITOR

Denny Edwards

CIRCULATION MANAGER

Leah Ashe

PUBLISHING OFFICE

NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761

Expands Middle East Services • Ship Christening Traditions • Baltimore Port – Building a City and a State

62nd Annual Forum & Expo – PREVIEW

Passenger Travel Updates

Where Dreams Take Flight

• Surviving the Economic Roller Coaster Passenger Travel Outlook • Passenger Travel Services Committee and So Much More!

PRODUCTION MANAGER

Margaret Howard GRAPHIC DESIGN

Debbie Bretches

• Potomac Airfield

ADVERTISING ACCOUNT EXECUTIVE

Don Perkins

ADVERTISING & PRODUCTION Carden Jennings Publishing Co., Ltd. Custom Publishing Division 375 Greenbrier Drive, Suite 100 Charlottesville, VA 22901 434-817-2000, x143 • F 434-817-2020

DEPARTMENTS A-35 NEWS | Ms. Lori Leffler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 EDITORIAL | Dr. Kent N. Gourdin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 PRESIDENT’S CORNER | LTG Ken Wykle, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 GOVERNMENT NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Defense Transportation Journal (ISSN 0011-7625) is published bimonthly by the National Defense Transportation Association, 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.

INDUSTRY NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

SUBSCRIPTION RATES: One year (six issues) $35. Two years, $55. Three years, $70. To foreign post offices, $45. Single copies, $6 plus postage. The DTJ is free to members. For details on membership, visit www.ndtahq.com.

HONOR ROLL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

POSTMASTER: Send address changes to: Defense Transportation Journal 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296

HOMELAND SECURITY | Mr. Lee Jackson. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

CHAPTER NEWS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 PROFESSIONAL DEVELOPMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 PAGES PAST | COL Denny Edwards, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 CHAIRMAN’S CIRCLE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 BOOKSHELF IDEAS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 INDEX OF ADVERTISERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

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EDITORIAL REVIEW BOARD AND EDITORIAL OBJECTIVES

Destinations

Dr. James M. Daley, Dean, Helzberg School of Management, Rockhurst University, Kansas City, MO Dr. Kent N. Gourdin, Director, Global Logistics and Transportation Program, College of Charleston

Ms. Lori Leffler, A-35 Chair

Maj Gen John E. Griffith, USAF (Ret.), Transportation Logistics Consultant Richard H. Hinchcliff, Consultant Brig Gen Malcolm P. Hooker, USAF (Ret.), Member, Board of Directors, NDTA Dr. Joseph G. Mattingly, Jr., R.H. Smith School of Business, University of Maryland Prof. Gary S. Misch, US Naval War College (Ret.) Lt Col Anne T. Peck, USAF (Ret.) Dr. Richard F. Poist, Jr., Professor, Transportation and Logistics, Iowa State University MG Harold I. Small, USA (Ret.), Consultant COL Joseph A. Torsani, Jr., USA (Ret.) Dr. David Vellenga, Director, Carl A. Gerstacker Liberal Arts Institute for Professional Management, Professor of Economics and Management, Albion College

EDITORIAL OBJECTIVES The editorial objectives of the Defense Transportation Journal are to advance knowledge and science in defense 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 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 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. The opinions expressed are those of the authors and not necessarily of the Editors, the Editorial Review Board, or NDTA. EDITORIAL CONTENT For correspondence including feature manuscripts and books for review, write: Dr. Kent N. Gourdin, Editor, DTJ Director of the Global Logistics & Transportation Program, College of Charleston, Charleston, SC 843-953-5327 • F 843-953-5697 gourdink@email.cofc.edu Government, Corporate, NDTA and Chapter News, Almanac Input, Mini-features, and all other departments, send news and photos to: Ms. Karen Schmitt, Managing Editor, DTJ NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 karen@ndtahq.com

4 | Defense Transportation Journal |

Manager, US Government Sales, The Hertz Corporation

or 62 years NDTA members have utilized passenger travel systems— whether it be plane, car, bus, train, or ship—as they travel to attend the NDTA Annual Forum. And, they have met many amazing people and visited fantastic destinations while conducting business. As we all know, the primary benefit of any NDTA Forum is the educational experience—keynote speakers, presentations from military leaders and industry professionals, panel and roundtable discussions, and off-site tours. The destinations themselves hold many fond memories and are an added bonus! In 1998, the 53rd NDTA Annual Form was in Houston, Texas, where we had the opportunity to visit NASA and a Texasstyle rodeo. For those of you that were in Houston, you will remember the excitement of the cowboys and rodeo clowns. Then, in 1999, NDTA attendees descended on Anchorage, Alaska, where we had our first experience at a Duck Drop rather than a Duck Race. Moose Nuggets added a local spin and were dropped with no casualties. We also took a private train trip through the Alaska wilds. We look forward 2010 and another trip to Alaska! Albuquerque, New Mexico, was next on the Forum list. Many of us stayed over to witness the International Balloon Fiesta— the largest balloon festival in the world! Then we went to Greensboro, North Carolina, well known for its annual furniture mart and furniture manufactures. NDTA arranged a tour of factory showrooms to see the largest replacement inventory of china and silver in the US. Some took the opportunity to replace missing pieces from family collections. Like Hallmark, NDTA cares enough to send the very best—to send its mem-

bers to the very best places, that is. So, we headed to Kansas City, Missouri, home of Hallmark Cards, in 2003 where we visited the Hallmark facility. During the height of passenger rail travel, the city was home to the third busiest passenger railroad station. In keeping with the flavor of rail travel, we enjoyed a special scholarship event at a restored landmark. In 2004, we visited Milwaukee, Wisconsin, and saw the beautiful new lake side art museum and experienced the Milwaukee Oktoberfest. Since Milwaukee is home to the largest German ethnic community, the festival was a rare site—not to mention witnessing the first three star general opening the Forum on a Harley Hog. Next came San Diego, California. The Gas Lamp District provided fun venues for evening networking and my personal favorite mall, Horton Plaza. When can we go back to San Diego . . . In Memphis, Tennessee, during the 2006 Forum, we enjoyed an exclusive night out at Graceland, home of Elvis Presley, King of Rock ‘n Roll. We also toured an overnight package express facility and saw live ducks “on parade” at the Peabody Hotel! Last year, we felt the charm and southern hospitality of Charleston, South Carolina, where we explored historic sites, Charleston Air Force Base—home of the 437th Airlift Wing—and Charleston Container Port. Reno/Tahoe, Nevada, is on our horizon! Join us at the 2008 NDTA Forum & Expo on September 20-24, 2008! There will be plenty of opportunities to learn from industry leaders, to network with knowledgeable professionals, and to discover Lake Tahoe and Virginia City. Be sure to take advantage of all that this wonderful Forum Destination offers! DTJ

See Page 14 for Details on the 62nd Annual NDTA Forum & Expo in Reno/Tahoe, Nevada | Sept. 20-24, 2008 AUGUST 2008

EDITORIAL Pain at the Pump (and virtually everywhere else) Dr. Kent N. Gourdin, Editor DTJ Director, Global Logistics and Transportation Program College of Charleston

am writing this at the beginning of June, when the average price of a gallon of regular gasoline is sitting at $3.98; don’t even get me started on the price of the premium fuel my car requires. The tremendous increase over what we were paying just this time last year (roughly $1/ gallon less) has really brought home to all of us just how much the price of oil effects our everyday lives. People are now actually altering their behavior because gasoline has gotten so expensive. In fact, my brotherin-law and I were chatting the other day about how much he was spending to fill up his large pick-up truck. He said he was thinking of getting rid of it, but was afraid that either the dealer would not even accept it in trade or would offer him an extremely low price for it. In so many words, he was saying that he’s afraid he’s stuck with it. But transportation in all forms is clearly suffering the most. We all feel the impact every time we gas up our cars, so much so that the stampede to public transport has overwhelmed those resources in some locations. But mass transit organizations have to buy fuel as well, so they need to raise fares to cover their higher costs. The commercial carriers are really wrestling with the problem. For the first time, fuel has surpassed labor as the number one cost in the airline and trucking industries. Short of parking airplanes or vehicles and cutting routes (some foreign and US air carriers are doing both), what alternatives are there: Raise fares/rates? Institute fuel surcharges? Charge for services that have heretofore been free? Each of those options, while viable, can have extremely negative consequences if they are not closely managed. Manipulating fares is risky because (a) the increase has all the appearance of a permanent change (which it may be, but customers would all like to at least HOPE prices will eventually fall) and (b) demand could drop to the point that total revenue falls. Fuel surcharges

have the same effect as a price increase, but they at least appear to be temporary and can easily be reduced or eliminated by the company. But, again, customers will eventually seek lower cost transportation alternatives if/when the surcharge gets too high. Charging customers for things they have come to expect gratis is another option. The airlines have been embracing this concept with particular zeal, with some eliminating free snacks and sodas, and charging passengers to check even one bag. The difficulty with these kinds of “savings” is that, simply put, they really tick people off. And I have to wonder what the rationale is for actively discouraging people from checking a bag? All that does is to encourage people to carry-on more bags, which will slow pre-boarding security inspections and no doubt lead to higher stress levels as people fight for already scarce onboard storage space. I believe that a fuel surcharge in some form is the best way to go. As I mentioned earlier, prices on goods and services are going up because most everything is dependent on oil to some degree. So, like it or not, we have to pay. Expecting companies to absorb these higher costs is patently ridiculous; we (the customers) are the reason they are incurring these costs. But at least a fuel surcharge seems temporary and, to some degree, makes the company look less like it is taking advantage of a bad situation. Similarly, they can simply be reduced or eliminated if/when the price of oil drops. Needless to say, the DOD is not immune to the skyrocketing cost of fuel either. Our civilian partners will be negotiating price increases into their military contracts, while organic aircraft, vessel, and vehicle fleet managers will be constantly searching for ways to make their operations more fuel efficient. And with some pundits calling for gas to reach $5/ gallon this year, we all could be tightening our belts for some time to come. DTJ

For the first time, fuel has surpassed labor as the number one cost in the airline and trucking industries. Short of parking airplanes or vehicles and cutting routes (some foreign and US air carriers are doing both), what alternatives are there: Raise fares/rates? Institute fuel surcharges? Charge for services that have heretofore been free?

“The world is a book and those who do not travel read only one page.”

Find the ANSWER on page 36 www.ndtahq.com | 5

PRESIDENT’S CORNER LTG Ken Wykle, USA (Ret.) NDTA President

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creasing, with the result of fewer cars being rented, fewer hotel room nights being sold, reduced options for flights, and travel agents booking fewer trips for customers. We ask our corporate members to review our Almanac edition of the DTJ (April 2008) and identify our passenger travel industry corporate members. When possible, support these members. For our government travelers, the DTS should be used for booking travel, receiving the best rates, and for ensuring quick payment of travel expenses. The spring and summer is also a time for leadership changes at the chapter level

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he NDTA staff has had a busy spring and summer. The NDTA Expo took place at SDDC’s Training Symposium late April, followed by our first Atlantic Regional Forum in Hershey, PA, June 26-27. We express our appreciation and thanks to our members who attended and supported these two events. Preparations are now well underway for our annual Forum in Reno/ Tahoe, NV, on September 20-24. Visit www.ndtahq.com/forum.htm for the most current information. Our website provides the agenda, a description of planned activities, and online attendee registration and hotel reservation. Corporate members can reserve their booths and find information on the exposition and sponsorships. We recognize that travel costs are higher than last year. To help our members offset some of these price increases, NDTA registration fees are at the 2007 rates—NO increase for 2008! Our annual Forum provides an opportunity for education and professional development. The program will consist of outstanding industry and government speakers, challenging breakout sessions, scholarship events, academic courses, recognition of industry and government leaders in transportation and logistics, an exposition, and opportunities to promote your products and services. Additionally, we will provide an exciting and enjoyable program for guests. Opportunities for networking will occur throughout the event. Make your reservations now and attend the Forum. Please see the complete layout of the Forum program in this issue of the DTJ. In this issue of the DTJ, we highlight the passenger travel industry. The passenger travel industry, like our mode operating company members, is feeling the effects of increased fuel costs. Individual travel is de-

and within military organizations. Thank you to all those military and chapter leaders who have transferred their responsibilities to the incoming officers, and welcome to those who have accepted positions of leadership. The NDTA staff looks forward to working with each of you during the next year and is available to respond to your requirements. Please contact us if you have questions or want to discuss ideas. Our success as an association depends on each member. We recognize that current economic conditions are challenging. Now is the time to work together, share our experiences and knowledge, help those who are experiencing difficulty, and leverage the association. This is your association, and we work to support and respond to our members. Provide your comments and suggestions to me at ken@ndtahq.com. Thank you for your outstanding support in 2007 and for your participation in NDTA. Together we can make 2008 an even better year! DTJ

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www.ndtahq.com/forum.htm

www.ndtahq.com | 7

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n Thursday, 8 May 2008, in the Port of Baltimore, American Roll-on Roll-off Carrier, LLC (ARC) welcomed the latest addition to its fleet of US Flag vessels operating in international trade, the Independence II. The ceremony was a festive occasion with guests of honor from USTRANSCOM, MARAD, Capitol Hill, the Governor of Maryland’s office, the Port of Baltimore, and a host of maritime industry and labor dignitaries. The lady sponsor for the ceremony was Mrs. Susan Tellez, wife of Mr. Auggie Tellez, Executive Vice President of the Seafarers International Union (SIU). The Independence II adds important militarily-useful tonnage crewed by US citizen merchant mariners to the US Flag international commercial fleet and the Maritime Security Program (MSP) fleet. ARC Chairman & CEO Raymond Ebeling welcomed guests to the Helen Delich Bentley Port of Baltimore, including the Honorable Ms. Bentley herself as well as head of the Port, Mr. Jim White, and ably summed up the sentiment of the day by offering, “we are very pleased to be able to continue to expand our US Flag international fleet.” General Norton A. Schwartz, Commander USTRANSCOM, and Mr. Michael Sacco, President SIU, were the featured speakers. General Schwartz commented, “This is a great day for ARC, and for our merchant mariners. And, ladies and gentlemen, if one of our Maritime Security Program partners and the merchant marine are having a good day, we know that it’s also a great day for America.” The General also pointed to the historical significance of the day as both the birth date of President Harry S. Truman and the anniversary of Victory in Europe Day, 1945. Of that generation, he offered, “were they here today, perhaps many of them would appreciate the real significance” and “effect on global transportation of what this ceremony signifies.”

“This is a great day for American Roll-on Roll-off Carrier, and for our merchant mariners. And, ladies and gentlemen, if one of our Maritime Security Program partners and the merchant marine are having a good day, we know that it’s also a great day for America.” – General Norton A. Schwartz

Ship naming traditions reach back 4000 years Few modern rites have a 4000-year old tradition, but the rituals of ship naming and launching are one of the few traditions reaching that far back in history. The practice of using wine, or later champagne, as the toast to new ships can be traced back almost as far, and was first employed as a substitute for the spilling of blood. A Babylonian narrative from the third millennium BC recounts the completion of a ship, and the Egyptians, Greeks, and Romans invoked the gods to protect seamen. Ship launching participants in ancient Greece wreathed their heads with olive branches, drank wine, and poured water on the vessels as a symbol of blessing. Shrines were carried on board Greek and Roman vessels and were often placed at the quarterdeck, a practice continued to the Middle Ages and that continues to endow the quarterdeck with special ceremonial significance. Later, Viking ceremonies were marked by human sacrifice and incantations by high priests to appease the gods and protect the crew, while Ottoman ceremonies were accompanied by prayers, the sacrifice of sheep, and appropriate feasting. Until 1811, the ceremony of christening a ship in Britain was generally performed by a male of the British Royal Family or other member of the aristocracy, until, in that year, King George IV introduced the first lady sponsor. Soon thereafter, in order to ensure safety, the British Admiralty directed that the bottle be secured to the stem of the ship by lanyard, another tradition that endures to this day. In 1875, Alexandra, the Princess of Wales, introduced a religious element in the form of an Anglican choral service, and the usage continues today with the singing of Psalm 107 with its special significance to mariners: “They that go down to the sea in ships; That do business in great waters; These see the works of the Lord, and His wonders in the deep.” Due to its perceived elegance as the aristocrat of wines, champagne became popular as the christening fluid of choice during the 19th century. The champagne bottles used in today’s christenings are often enclosed in a casings or sleeves, or made of sugar, to prevent fragments of glass from injuring sponsors or spectators. Ceremonial practices for naming ships in the US have their roots in Europe. Among the earliest documented launchings were those for the Continental frigate Raleigh at Portsmouth, New Hampshire, in May 1776 and the warship Constitution, the famous “Old Ironsides,” in October 1797. The first known instance of a lady sponsor for an American ship was for the sloop-of-war Concord in 1827. Unfortunately, the contemporary account does not name this pioneer, only noting that the ship was “christened by a young lady of Portsmouth.” The first identified lady sponsor was Lavinia Fanning Watson of Philadelphia, for the Germantown at the Philadelphia Navy Yard in 1846. The US Navy’s first steel battleship, the Maine, was christened with champagne by a granddaughter of then–Secretary of the Navy Benjamin Tracy at the New York Navy Yard in 1890. The effects of national prohibition from 1920-1933 were reflected to a large extent in ship christenings, with the use of water and cider becoming prevalent.

During the event, Mr. Sacco added, “I would argue that now, more than any time since WWII, this country absolutely must maintain a viable supply of US mariners. That’s part of the significance of this ceremony—new tonnage under the American flag helps maintain that manpower pool.” 10 | Defense Transportation Journal |

Upon entering service with ARC in March 2008 in the US-North Europe service, Independence II joined ARC’s fixedday-of-the-week service along with Patriot, Courage, and Integrity. She carries US military sustainment cargo, DOD service members’ privately-owned vehicles and

AUGUST 2008

household goods, Department of State vehicles and household goods, other US government cargoes, and commercial vehicles such as newly manufactured autos, tractors, and bulldozers. Built in 1994, Independence II takes her name after one of ARC’s original ships, the Independence, which had the distinction of serving in all of ARC’s various trade lanes to date as a true workhorse of the ARC fleet. After 30 years in service, the original Independence was recently retired from ARC’s fleet due to her advanced age. As with all of ARC’s Ro-Ro ships, the Independence II has adjustable decks and can be configured for the ideal mix and stowage of high and heavy cargo, military rolling stock and tracked vehicles, commercial and privately-owned autos, and breakbulk cargoes. In addition to operating in the US East Coast-North Europe trade, ARC also operates four vessels in the US East Coast/ Gulf Coast-Middle East trade—Resolve, Freedom, Honor, and Liberty. With the recent expansion from three to four ships in the trade lane, and with 760,000 square feet of cargo space and a 17-day frequency, ARC is ideally placed to meet the needs of its DOD customers and project cargo shippers and commercial customers. After several years during which the Up-Armored HMMWV was the staple cargo in support of OIF, the focus has now shifted to meeting the surge lift requirements for MineResistant Ambush-Protected (MRAP) vehicles. As part of its “DOD-first” focus, ARC continues to provide unit integrity for military units’ rolling stock, and now offers an “MRAP Express” service out of Charleston, SC, direct to Kuwait with no intermediate port calls. This ensures that our soldiers and Marines in Iraq and the wider Middle East region receive these life-saving vehicles in the timeliest and most cost-effective manner possible. During the May 8 ceremony, the sheer size and flexibility of a Ro-Ro vessel was readily apparent to all in attendance. Towering over the Port of Baltimore, guests could see from the bridge clear to the Inner Harbor and for miles around from the 13-story tall vessel. Guests were able to tour the ship deck-by-deck, where they could catch a glimpse of the various types of cargo on board, including a range of commercial vehicles, military vehicles, and high-and-heavy cargo. ARC calls on the Port of Baltimore in both of its trade

presence of a US-flagged commercial fleet operating in international trade that also enables the government to pursue generous overseas economic and agricultural programs. Coupled with the US cargo preference laws, it is the bedrock of the continued viability of the US Flag international commercial fleet. The MSP fleet provides a US national security asset at a substantially lower cost than the government procuring, owning, and maintaining an equivalent capability. In an August 2006 report entitled “The Role of the US’ Commercial Shipping Industry in Military Sealift,” by the NDTA, the cost to the US Government to replicate the vessels provided for by MSP was estimated at $13 billion, plus an additional $52 billion to replicate the attendant

General Norton A. Schwartz

routes, as well as other commercial ports regularly. A key component of the successful DOD-ARC relationship has been ARC’s willingness and ability to also call on all SDDC managed ports in the continental US, Europe, and the Middle East. The ARC fleet is ably manned by Seafarers crews and American Maritime Officers (AMO), the latter headed by Mr. Tom Bethel. During his address, Mr. Sacco of the Seafarers pointed to the importance of maintaining a commercially viable US Flag fleet crewed by US citizens: “We need a strong US Merchant Marine because it’s good business, it’s good common sense, and it has served America well since the very first days of our nation’s history.” Mr. Ebeling added, “To make the US Flag fleet work requires a strong partnership with our friends in organized labor.” In the absence of a US Flag fleet, Ebeling added, “DOD might have to rely on a foreign crewed ship to transport equipment and materials to a war zone, which is obviously not a good idea.” The ceremony marked the renewal of ARC’s commitment to US Flag commercial shipping and the Maritime Security Program. Headquartered in Park Ridge, New Jersey, with major satellite offices in Washington, Frankfurt, and Dubai and calling ports throughout the US, Europe, Mediterranean, Middle East, and Indian sub-continent, ARC is committed to continuing to expand its US Flag fleet to meet the needs of its valued customers. To that end, the importance of MSP cannot

Mr. Ray Fitzgerald

The Resolve

be underestimated. The MSP fleet enables the US Government to provide sealift for US armed forces utilizing the resources of the US Flag commercial fleet. Administered by MARAD in partnership with the USTRANSCOM, MSP provides for the

global terminal, intermodal, and logistics networks provided by the MSP carriers. As pointed out by Mr. Ebeling, DOD “reliance on non-US Flag ships is not reliable,” and “reliance on a government-owned organic and reserve fleet for sustainment would be highly cost ineffective.” MSP is “twelve times more cost effective” than the organic fleet and provides “the right balance of reliability and cost effectiveness to provide long-term sustainment sealift . . . We should, therefore, care a great deal that there are US Flag international carriers.” With its relatively low cost, significant value for money, and favorable cost-benefit analysis, the MSP program is amongst the best in government, as evidenced by

OMB’s awarding of its highest rating to the MSP program. By way of comparison, it costs an estimated $200 million to merely maintain the Ready Reserve Fleet, which consists of far fewer vessels in a laidup capacity without crews, whereas each modern MSP vessel costs less, is actively engaged in commerce, and provides for two full crews, who are also available to man government vessels in time of need. As such, it makes sense to continue to build the MSP fleet from its current 60-ship fleet in lieu of re-capitalizing the RRF. The importance of maintaining a commercially viable and militarily-useful US Flag fleet cannot be underestimated—it provides not only a vital economic link www.ndtahq.com | 11

During Gulf War I, the DOD came face-to-face with the reality that it cannot and should not rely on foreign-flagged and foreign-crewed vessels, as numerous foreign flag commercial vessels refused to enter the warzone. to the globalized economy, but also a crucial security resource that enables the federal government to utilize the carriers’ services to utilize the carriers network capability in time of crisis or national emergency. During Gulf War I, the DOD came face-to-face with the reality that it cannot and should not rely on foreign-flagged and foreign-crewed vessels, as numerous foreign flag commercial vessels refused to enter the warzone. In an after-action government-industry study, it was recognized that DOD needs the proper mix of US-flagged and US-crewed commercial

ships in addition to its “organic”, or DODowned, assets, in order to fully and effectively carry out its mission. As mentioned by Ebeling, “there is, and should always be, a strong, core organic fleet which manages the surge phase of a contingency—but there is not sufficient organic capability to provide long-term sustainment sealift without the industry’s contribution.” This recognition helped bring about the creation of the Maritime Security Program, which continues to provide vital US Flag sealift and intermodal capability to this day, crewed by the nation’s “fifth service”,

the loyal US citizen Merchant Marine, such as ARC’s American Maritime Officers (AMO) and SIU crews, many of whom were in attendance at the May 8 ceremony, as were a number of merchant mariner trainees from the Paul Hall Center. The MSP program is currently authorized through 2015, and is subject to the annual Congressional Appropriations process, but it has become increasingly apparent to many in the industry that the expiration date should be eliminated outright in order to ensure DOD’s continued assured access to the necessary assets and the US Flag commercial fleet’s continued ability to reinvest in the program. The true partnership between USTRANSCOM and the US-flagged commercial fleet was emphatically reinforced by General Schwartz at the naming ceremony: “We’ll do everything we can to ensure that the MSP partners are always on the team that delivers for America.” DTJ

The Port That Built a City—And State Founded in 1706 on the banks of the Patapsco River, the Helen Delich Bentley Port of Baltimore has grown to become one of the busiest ports on the US East Coast, including the leading port for roll-on/roll-off cargoes on the East Coast, with a 50% market share. The port handles more than 30 million tons annually of all cargoes from around the world. It is a significant economic engine for the mid-Atlantic region, generating $1.5 billion in revenue annually and employing 16,100 Marylanders in direct jobs and another 17,600 in indirect jobs.

public and government awareness of the Port of Baltimore’s substantial economic impact and of the broader importance of America’s maritime community.

The port’s early history can be traced from its beginnings as a Port of Entry for the tobacco trade with England to its fame as a major shipbuilding center famous for the construction of Baltimore clippers. The arrival of the Baltimore & Ohio and other railroads in the mid-1800s made the port a major transshipment point. To this day, the Port of Baltimore, with its inland location, is the closest port to the major manufacturing centers in the Midwest. During the 19th century, the port was also a major entry point for European emigrants from Britain, Ireland, Germany, Poland, and elsewhere.

More than half a million automobiles move through Baltimore’s public and private terminals annually, including the public Fairfield/Masonville Terminals, the privately-owned Chesapeake and Atlantic auto terminals, and the 300-acre Dundalk Marine Terminal. The port is located a short distance from major interstate highways and is serviced by rail by Norfolk Southern and CSX. The strategic location means shorter distances between manufacturer, port, and market. Central to the port’s success as a preferred Ro-Ro port is its Quality Cargo Handling Action Team (QCHAT), a monthly meeting of stakeholders including vehicle handlers, carriers, and manufacturers that has enabled the port to post the lowest damage rate on Ro-Ro cargo throughout the country year after year. A barcode scanning system captures detailed information about every vehicle moving through the port, providing tracking, reducing damage, and enhancing security of the supply chain.

Today, the port is named for Helen Delich Bentley, a former Congresswoman (1985-1995), former Chairwoman of the Federal Maritime Commission (1969-1975), and longtime port advocate. A ceremony on 1 June 2006 marking the Port of Baltimore’s 300th anniversary formally recognized Bentley’s contributions, including her 24 years as a maritime reporter and editor for the Baltimore Sun, and as a reporter, director, editor, and producer for the television series “The Port That Built a City,” and later, “The Port that Built a City—and State.” Her efforts intensified both

Baltimore is also a major port for project cargo and containerized cargo, making it one of the most diversified ports in the US More than 60% of the cargo handled at the public terminals is containerized, and the port is one of the most productive in the North Atlantic, averaging 47 container moves per hour. The longshoreman labor force offers unlimited midnight starts and flex-time, allowing gates to operate from 0700-1800 hours, rain or shine. Experience, location, and competitive pricing make the Port of Baltimore an efficient, cost-effective, and easy to use facility.

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Earn a $50 gas card after just three stays. You never know where the road will take you. That’s why this summer, you can earn $50 in free gas when you book at choicehotels.com/ gov or 866.45.BRASS. Just stay at any Comfort Inn®, Comfort Suites®, Quality,® Sleep Inn®, Clarion® or Cambria Suites® hotels between June 1ST and August 14TH . After three separate stays, you’ll earn enough Choice Privileges® points to redeem for a $50 gas card.* The Choice Privileges rewards program is easy, fast and free to join. Plus, whether you are active or retired military, you and your dependants will enjoy the per diem rate for official and leisure travel.** So book today at choicehotels.com/gov or 866.45.BRASS.

choicehotels.com/gov • 866.45.BRASS

*Reservations must be made at choicehotels.com/gov or 866.45.BRASS at qualifying rates and Choice Privileges member number must be provided upon check-in to be eligible for this promotion. After third qualifying stay between June 1 and August 14, 2008, enough points will be added to points earned from every three qualifying stays to reach the 16,000 points level, which can be redeemed for a gift card to gas stations nationwide. A stay is defined as any number of consecutive nights at one hotel regardless of check-ins or check-outs at any Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion or Cambria Suites property in the U.S., Canada, Mexico or Caribbean. You must maintain a U.S. address (including U.S. territories) to be eligible for this promotion. For program details, qualifying rates and point redemption rules, visit choiceprivileges.com. **Per diem rates guaranteed on last room availability at participating hotels. See choicehotels.com/gov for details. © 2008 Choice Hotels International, Inc. All rights reserved. 08-508/06/08

2 0 08 Annual F o r um & Ex po

Special Guests Mr. Douglas Tilden, Chairman, Ports America Group Mr. Timothy E. Carroll, VP Global Operations, Integrated Supply Chain, IBM Lieutenant General Robert T. Dail, USA, Director, DLA

ise

T he

Special Guests and Topics in order of appearance

RADM Robert D. Reilly, Jr., USN, Commander, MSC

bal Ente lo r pr

Reno/Tahoe, Nevada

SCHEDULE

Mr. Kip Hawley, Assistant Secretary of Homeland Security, TSA (Invited) Ambassador James W. Pardew, Deputy Assistant, Secretary General for Operations, NATO Headquarters General Duncan McNabb, USAF Nominated as Commander, USTRANSCOM

0 20 mb er 20-24, V RE N NO-T , AHOE

Sep t. 2 0 -2 4 , 20 0 8 “The Global Enterprise— Transformation & Competition” THE STAKES ARE HIGH Our logistics community faces change and challenge in the air, over ground, and at sea—not just at home, but beyond our borders as well. How do we BALANCE infrastructure needs? How do we maintain our competitive EDGE in the global arena? Can we better utilize RESOURCES to mitigate rising fuel costs? What’s our BEST BET when it comes to ensuring visibility, security, service, and savings for our stakeholders? These are just some of the issues that will be addressed at the 62nd Annual NDTA Forum & Expo! The Stakes may be HIGH in Reno/Tahoe but we’re keeping costs LOW . . . The 2008 Registration Package price remains the same as in 2007! We are doing what we can to offset your travel expenses. We don’t want you to miss out on any of the Programs or Events at this year’s Forum!

General Kip Ward, USA, Commander, AFRICOM (invited)

Special Topics Infrastructure – Public/Private Partnerships Mr. Andrew Clarke, CEO, Panther Express The Pacific Rim – Change & Challenges CAPT Janice Wynn, USN, Chief of Staff, US Naval Forces, Marianas Travel in Today’s Economy Dr. G.R. Mobaraki, Director, of Gov’t Sales, The Hertz Company Human Capital Development Mr. James Hall, Ass’t. Deputy Under Secretary of Defense for Logistics Plans and Studies, OSD Retrograde OEF/OIF – Business Opportunities BG Mark Scheid, USA (Ret), IBM DTCI – Today and Tomorrow DTCI Program Manager, USTRANSCOM Fusion Cell & Best Value Solutions Ms. Jill Kale, VP, Enterprise Applications and Systems Infrastructure, Defense Group, Northrop Grumman Geographic Combatant Commands – Operational Update RADM Mark Harnitchek, J4-5, USTRANSCOM Core Competencies and Education for the JDDE VADM Ann Rondeau, Deputy Commander, USTRANSCOM Mentoring Session Mr. Larry Larkin, Director, Defense Supply Chain Management Solutions, Northrop Grumman Roundtable “International Issues”

SPECIAL EVENTS/TOURS/GOLF

Limited capacity for some Events. Reserve early—Avoid being disappointed!

Sunday Evening Scholarship Dinner Sponsor: YRC Worldwide

Monday Evening Scholarship Event Sponsor: FedEx

The National Automobile Museum

“Back Stage Pass” at the Celebrity Ballroom, Nugget Casino Resort

(The Harrah Collection)

www.automuseum.org

In 1908, the Thomas Flyer won an amazing race that included teams from the superpowers of the day— the US, Germany, France, and Italy—and reporters traveled alongside the contenders to provide briefings for their own country’s newspapers. Even though the event was considered “madness” by many, it captured attention around the world because the newly invented automobile was a novelty of the day. The “Flyer” takes center stage in a special centennial celebration at the National Automobile Museum (NAM), site of the NDTA Scholarship Event sponsored by YRC Worldwide. “The Thomas Flyer won the 1908 New York-to-Paris Automobile Race with a team that embraced change and challenge. Their determination to succeed in an intense, global competition embodies the spirit and the reality of today’s transportation and logistics leaders,” explains Greg Reid, CMO & EVP, Enterprise Solutions Group of YRC Worldwide. The sentiment and the venue are most fitting for the NDTA Scholarship event. Photo: Thomas Flyer, courtesy of NAM.

TRANSFORMATION is the buzz word across the board—even in the world of show business! At the 2008 Scholarship Event, hosted by FedEx, you’ll experience a clever behind-the-scenes look at the transformation of a chorus line show girl, Karen Burns. “Back Stage Pass” takes you along her unique and creative journey, complete with feathered boas and rhinestone costumes and headpieces. During her transformation, Karen speaks in a humorous and fast-paced style about her lively life experiences including her stint as a dancer in the world-famous MGM Hello, Hollywood, Hello production. When MGM closed its doors, she purchased the costumes, which became one of the most comprehensive collections of the genre. Karen went on to found the Karen Burns Production Company, a successful entertainment venture. “Karen will share an insightful background from the Ziegfeld Follies to MGM Musicals to lend historical perspective,” notes Kirstin Knott, Director of Government Sales, FedEx. SECRETS OF AN OLD SHOWGIRL and Her Costume Collection

THE THOMAS FLYER— a 4-Wheeled Legacy in Global Competition • The course was a 22,000-mile odyssey around the world over the wildest stretches of the world’s uncharted realms at the time. • The US leg from New York to San Francisco (in winter) was a feat never before accomplished by automobile. • In Japan, the race offered the first glimpse of a car ever seen in that country; entrants continued the journey across Siberia, Manchuria, Russia, Germany, and France. • Teams drove relentlessly without rest, worked late into the night making repairs, changed tires all too often, and tested the limits of their endurance, health, and sanity. • The Thomas Flyer claimed victory after 169 days of fierce competition on July 30, 1908.

• The Karen Burns’ Costume Collection includes over 1200 pieces. • The most captivating are those from the world-famous MGM stage show Hello, Hollywood, Hello—opening in 1978 and running for 11 years. • The collection is much more than eye candy. It has been a platform for study of American Culture by the American Costume Society and the Nevada Historical Society. • Select items are planned to join the upcoming touring exhibit, Entertainment Nevada Style! Photo: Karen Burns and Lou Anne H. Chessik with Show Girls (x2). Photo courtesy of Nevada Historical Society.

www.ndtahq.com | 15

Spouse/guest tours Historic Virginia City

Tour the place where it all BEGAN—“the richest place on earth,” as Virginia City was dubbed in the 1800s. Stroll the wooden sidewalks and explore original saloons, gambling halls, and antique shops. Lunch will be served at the Delta Saloon (opened ca. 1863), complete with ambiance of the day. Our trip to Virginia City will also take us through Carson City.

ndta golf tournament Sponsored by Northwest Airlines

The Resort at Red Hawk – The Lake’s Course www.ResortAtRedHawk.com Less than 20 minutes from John Ascuaga’s Nugget Casino Resort, the official Forum Hotel. The 18-hole Lakes Course, set in the historic Wingfield Ranch, is certified as Nevada’s first Audubon International Signature Sanctuary (one of only 35 in the world!). At 7140 yards, it was designed by Robert Trent Jones Jr. to challenge your game in an artful setting that meanders around natural lakes and springs.

More Exciting Options! Several Do-It-Yourself Tours of venues in Reno are arranged! And, we’re planning a cruise on Lake Tahoe. Lunch included.

• Voted Best Public Golf Course 8 times by Nevada Magazine • Two-Tiered Grass Driving Range • No cart fees • 10,000 sq. ft. chipping area • PGA Staff Photos courtesy of Wingfield Nevada Group

hotel

John Ascuaga’s Nugget Casino Resort www.ResortAtRedHawk.com

This world-class resort casino is familyowned and operated. John Ascuaga built the Nugget from a roadside coffee shop that opened in 1955. His touch is noticeable in details large and small, such as hand-picked friendly staff, welcoming ambience, and a reception desk separate from the casino area. John Ascuaga’s Nugget offers a full array of casino entertainment, nine restaurants, and four live music venues, including the incomparable Celebrity Showroom. The spa offers an extensive selection of body treatments and beauty services. A fitness center adjoins the pool. 16 | Defense Transportation Journal |

AUGUST 2008

congratulations NDTA Chairman’s Award Recipients

• NDTA National Transportation Award Mr. Joseph Carnes BAX Global-Schenker Logistics • NDTA Leadership Award Gen Norton Schwartz, USAF • NDTA Distinguished Service Award LTG William Mortensen Former Deputy Commander, AMC • NDTA Distinguished Government Service Award Mr. Jeffrey Shane Former Deputy Secretary of Transportation, Policy, DOT • NDTA President’s Award MG Charles Fletcher Former J-3, USTRANSCOM Honors will be presented at the Annual NDTA Forum in Reno/Tahoe

Delivering confidence to the U.S. Government for 160 years.

At our inception in 1848, the U.S. Government was our first customer. Weâ&#x20AC;&#x2122;ve been proud to provide consistent and dependable service to the nation ever since. Today, APL offers global transportation and logistics solutions for Government-sponsored cargo, including Military and Project Shipments, Household Goods, and Humanitarian Aid. Our eight weekly U.S.-Flag services are part of APLâ&#x20AC;&#x2122;s global network that reaches more than 25,000 locations on all seven continents. Our dedicated team of logistics professionals work with you to design international supply chains that are swift, safe, and secure. To learn more about how APL can support your strategic and tactical overseas missions, please contact: Richard Jabara, Director, Military Contracts & Business Development, Washington, DC Tel: 202-496-2489 www.apl.com

NDTA’s Passenger Travel Services Committee (PTSC) provides the opportunity for open communication between government and travel industry decision makers to improve programs, trends, policies, and other issues that impact the government traveler and the travel industry. Primary objectives are to facilitate dialogue, bridge any information gaps, and promote education of the travel industry.

Surviving the Economic Roller Coaster PASSENGER TRAVEL OUTLOOK By Dr. G.R. “Rocky” Mobaraki, MBA, PhD Passenger Travel Services Committee (PTSC) Chair Director, Government Sales, The Hertz Corporation

Oil and food prices are up, stock market and home prices are down, and the cost of travel continues to rise! We all wonder how long this economic Roller Coaster ride will last.

irlines are scrambling to adjust to jet fuel prices that have jumped 86% by grounding fuel inefficient planes and instituting additional fees. But it may be too little too late to show any profitability for 2008. In the past five months, 7 airlines have either ceased operations or filed for bankruptcy, and a major merger between two legacy carriers (Northwest and Delta) is awaiting approval by the Department of Justice. The meteoric rise in fuel costs is driving this wild ride. Not that long ago, during the 1990s, a barrel of oil cost around $20; as of this writing, the cost is way up at $143 plus. Airlines pay about $30 more than market price for refined aviation fuel, and most companies hedge fuel costs by buying it on the futures market at cheaper levels and locking prices in for months at a time. Unfortunately, due to rapid cost increase and the expiration of futures contracts, airlines are eventually exposed to higher fuel costs over time Increased airfares partially offset fuel costs, and fare increases have been implemented at least a dozen times since the beginning of the year. Fuel surcharges, now authorized by the GSA city pair contract as add-ons to the awarded government fare, often are a part of the total fare charged, both for domestic US and international itineraries. All passenger travel providers are affected. To survive, some have reacted by charging for items that previously were complimentary. In other words, my friends—the free lunch is over.

The US lodging industry is expanding around the globe, and for the first time overseas development by major chains either equals or exceeds domestic expansion. In many cases these property openings are filling the “gap” between the smaller, local, privately owned hotels with limited services and the upscale, luxury hotels. This means that more options are available to the government traveler and that they can enjoy services abroad that they have come to expect in the US Fuel costs are pushing up the cost of everything that hotels need to operate— especially heating oil and energy—making last year’s CONUS per diem increase (from $60 to $70) even more welcome throughout the hotel community. But there is a downside. The US General Services Administration (GSA) reviews the CONUS rate only once at 3-year intervals, a schedule that could close hotel doors to government travelers

Surv

iving

the econo

incurred by the car rental companies for fleet, fuel, and overhead. A significant development in early 2008 has been the transition of the management of the Federal Government Car Rental Program (previously managed by SDDC) to Defense Transportation Management Office (DTMO). The transition has been smooth, a great accomplishment considering all of the various program components—managing ceiling rates, ensuring that claims are handled and processed according to the Agreement guidelines, resolving customer service issues, and ensuring that all aspects of the Agreement are properly implemented. The program is international, so these issues are even greater in scope given its global . nature. What’s more, the Fedra t eral Government rents n ma millions of cars r u annually. eo

Higher ticket prices, weather delays, and dropped flights, among other hurdles, have complicated travel planning. Thanks to the assistance of professional travel companies and available ondemand technologies, government travelers are utilizing online booking tools, web reporting packages, and online travel authorization and voucher services (offered through DTS and ETS). Mobile devices that are “Web friendly” have impacted the travel process, prompting some to suggest that we are entering a world where people book online, checkin online, receive confirmation through a mobile device, and are automatically re-booked in the event of a cancellation. Travel agencies must be prepared to meet the “new traveler,” whose expectations and behaviors are changing and whose familiarity with mobile device interface is greater. Consequently, fierce competition within the travel agency industry is keeping transaction prices low despite an economy where operating costs are increasing. To survive and prosper, travel agencies must be highly flexible, responsive to changes and willing to adjust their strategies. Technology enhancements allow travel agencies to focus on customer needs and they

ter h mic roller coas

if per diem rates can’t keep up with costs that most likely will rise before the next review in 2010. With the new methodology now employed by GSA to determine per diem, a more frequent update is both possible and practical. NDTA’s Hotel SubCommittee is developing recommendations on this issue to present to GSA. The spike in fuel prices has had a tremendous impact on car rental companies. Profit margins are slim, if they exist at all, and as a result rental fleets have become much tighter as companies try to maximize fleet utilization. In spite of numerous transitions and obstacles in the car rental industry this past year, one thing remains constant in today’s economy: Federal Government travelers continue to receive comprehensive benefits and the lowest rates in the industry. This is because of the way the Federal Government Car Rental Agreement is structured, which allows for competition. Today’s average cost per day for Government rentals are nearly the same as charged in the 1990s; or, in some market places, similar to rates in the 1980s. These rates have remained in place despite the tremendous cost increases

ec as b

>> WHAT IS THE DTMO? The Defense Travel Management Office (DTMO) serves the Department of Defense (DOD) by consolidating, streamlining, and centrally managing commercial travel, providing a single focal point to the Department and industry. This “single face” ensures consistency in the Department’s focus, policy, and execution, marking a new era in government travel. In 2006, under the leadership of Under Secretary of Defense for Personnel and Readiness Dr. David S. C. Chu and DTMO Director Sheila M. Earle, DTMO assumed responsibility for supplying a simple, responsive process for travelers, efficient assistance for customers and travel system users, and the best value for both the traveler and the Government. Today, DTMO provides oversight for Commercial Travel Management, Travel Policy and Implementation, Travel Card Program Management, Truck and Car Rental programs, Military Bus Program, the Recruit Travel Assistance Program (formally known as the Passenger Standing Route Order - PSRO), the Military Recruit Assistance Programs, training, functional oversight of the Defense Travel System (DTS), and customer support as well as the DOD Customer Interface for the GSA City Pair Program. As the DOD centralized travel management office, the DTMO interfaces with the travel industry regarding policies and programs.

also make it easier to assess what options are best overall. In some cases, compliance yields greater savings than finding the lowest fare. As travel continues to change, so will the role of the travel agency. www.ndtahq.com | 19

Surviving the economic roller coaster has become our mantra. We will survive through change, through competitive strategies, and through creative restructuring. We must not forget, however, that even though new technologies offer advantages (video conferencing can offset travel costs, for example), success in our business with the government market is based on relationship building in addition to providing best value, competitive prices, and optimum performance. Positives do exist in the midst of this wild ride. The Federal Government has travel programs in place that allow for the continuance of deep discounts and outstanding benefits. And, we in the passenger travel industry remain committed to enhancing the travel experience. DTJ

The NDTA Passenger Travel Services Committee is composed of 9 subcommittees, led by experts from various industry segments. And, as with all things in government and military travel services, it requires TEAMWORK. I would like to thank the PTSC sub-committee chairs—Kelly Kuhn (Travel Agency), Denny Clifford (Airline), Mike Washkevich (Car Rental), and Scott Lamb (Lodging) and their members for their valuable input to this report.

AIRLINES

American Airlines George Coyle CSI Aviation Services Ralph Paker Donna Heinz Delta Air Lines Brian Munson Lee Grigsby FlightWorks, Inc. Cynthia Karnik Kalitta Charters, LLC Steve Green Luxury Air Jets Rodney Kadymir North American Airways Lois Wilson Northwest Airlines Denny Clifford*

PASSENGER TRAVEL SERVICES COMMITTEE

Government Travel Programs & Updates AIRLINES Mr. Denny Clifford, Director Military & Government, Northwest Airlines & NDTA PTSC Airline Sub-committee Chair The Airline City Pair Program originally covered only 11 markets, but over the last 27 years, has expanded to more than 5000 city pairs. Airfares offered under this program are discounted considerably off comparable commercial fares— saving the federal government billions of dollars annually. In addition to the tremendous price savings, the Airline City Pair Program has many features that allow government travelers all the flexibility possible in planning official travel: • Fares priced on one-way routes permitting agencies to plan multiple destinations • No advance purchase required • No minimum/maximum stay required • Tickets fully refundable • Last seat availability • No blackout periods • Stable prices enabling travel budgeting • Dual fares availability

Southwest Airlines Merrill Taylor United Airlines Tom Billone World Airways Lois Wilson

BUS

Dollar – Thrifty Automotive Group Randy Tietsort Mark Cronin Enterprise Rent-A-Car Lisa Burgess Bryan Scott Xavier Trimiew

Trailways Transportation System Diane Walden*

Europcar Frank Langbein Tony Dolt Olivier Jacquet

CAR RENTAL

Fox Rent A Car Jose Giraldo

Advantage Rent-A-Car Clay Cribbs Alamo/National Rent A Car [Vanguard] Jeff Coggin Avis/Budget Rent A Car Mike Washkevitz * Robert Krapf

Omni Air International Trisha M. Frank

20 | Defense Transportation Journal |

AUGUST 2008

The Hertz Corporation Rocky Mobaraki Lori Leffler Payless Car Rental Kathy Johnson

CRUISE LINES

Norwegian Cruise Lines (NCL) Susan Robinson Bettina Osterwind

The Open Skies agreement recently passed by the EU allows more access for US carriers to Europe, and also more access for European carriers to US destinations. Part of this agreement modified usage of the Fly America Act. For city pairs not awarded a government contract fare, civilian employees of the federal government are able to fly on non-US flag/foreign carriers across the Atlantic. Civilian employees must still follow the original Fly America Act provisions when the city pair is a GSA contract market. DOD employees must still follow the original Fly America Act rules at all times and travel on US flag carriers (which includes foreign flag airlines that have a codeshare relationship with a US flag carrier) across the Atlantic, regardless whether the city pair is a contract market or not. The Airline industry has been in discussions with GSA for the past year regarding implementation of commercial practices, including ticket time limits when booking travel and the imposition of penalties for changes to itineraries. More continued discussions are needed in these and other areas. The government should recognize that the dynamics of the industry are dramatically changing. The financial pressures on airlines, further consolidation in the industry, Open Skies, and

EXTENDED STAY LODGING

Hawthorn Suites-Alexandria Stacie Liverpool

Korman Communities Scott Foster

Hilton Hotels Corporation Scott Lamb*

Extended Stay America, Inc. Toni Kleinops*

Hyatt Hotels & Resorts Ron Keith Anna Marie DiBattista

Oakwood Worldwide Debbie Lynch Daphne Medillo Mary Jacenich Virginian Suites Greg Burnes Beth Sebek

HOTELS

Best Western International Mari Ann Gray Dave Brogden Carlson Hotels Worldwide Linda Colovos Choice Hotels International Mary Sarkis Lisa Kenner

InterContinental Hotels Group Jim Reiter Judy Silcox La Quinta Jake Paine Lynn Shatterly LTD Hotel Management Co. Georgeann Sharp Oakwood Worldwide Kathy Lane Radisson – Waikiki Newton Wong

changes in usage of the Fly America Act are issues that may significantly impact future GSA city pair contracts. A win/win relationship between GSA and industry can only be attained if these changes are taken into account and addressed directly with industry moving forward. LODGING Mr. Scott Lamb, Director Government Sales, The Hilton Corporation & NDTA PTSC Lodging Sub-committee Chair, The Government has various hotel programs available to government travelers such as Fed Rooms, Emergency Lodging Services, Travel Agency Programs, and Army Lodging Success. While all of these programs have their merits, multiple programs dilute the success of all programs. Government Travelers are required to utilize lodging facilities that are FEMA compliant and within per diem. As the government rolls out online booking tools for both DOD and civilian agencies, the lodging industry has struggled with supporting government travel because their ability to market to the government traveler has been limited. In order to obtain hotel rates discounted to per diem levels, the government must partner with the lodging industry to help provide them with better information about their travel patterns. The Hotel Sub-committee, along with hotel industry representatives and the DTMO, have planned to meet

Starwood Hotels Ted Miller Wyndham Hotel Group Denise Benyak

PASSENGER RAIL Amtrak Clifford Black*

TRAVEL AGENCIES Omega World Travel Karen Bacordo Diana McHugh

Carlson Wagonlit Travel / SatoTravel Kelly Kuhn* Sally Bickner Monnie Riggin Scott Guerrero Marc Stec Craig Thompson

over the summer to discuss this and other lodging issues that affect the DOD. On the lodging side, government travelers need to make sure they book rates intended to be used by government. Sometimes the lowest rate is not the best rate—because it carries a cancellation penalty or no-refund policy. Regardless of how travel is booked, it pays to make sure a government rate is booked for government travel. CAR RENTAL Mr. Mike Washkevich, Government Sales Director, Avis Budget Group & NDTA PTSC Car Rental Sub-committee Chair Advances in technology have allowed car rental companies to offer various products to enhance the customer’s travel experience and save time. Many car rental companies offer EZ Pass for tolls, GPS navigation systems, and expedited pick up and return services. Satellite radio is also available in many rental vehicles. Overall, the car rental experience is much easier and faster and offers more services than ever before. Even in these uncertain economic times, the benefits that the Federal Government travelers continue to receive from the car rental companies include: • • • •

Discounted rates Free collision insurance (LDW) Liability coverage No surcharges for younger drivers

TRAVEL PUBLICATIONS & SERVICES OAG Worldwide Brent Albrecht

TRAVEL TECHNOLOGY INNOVATA Paul Chrestensen Cathi Massi Judy Smith

Northrop Grumman Lisa Godfrey * Sabre Travel Network Jeffrey Goodell

GOVERNMENT

Defense Travel Management Office (DTMO) Paul Joyce Andrea Carlock George Greiling Harold Hicks Bill Shirey

Program Management Office – Defense Travel System (PMO - DTS) Col Lynne Hamilton-Jones, USAF

PTSC COMMITTEES AND CHAIRS

PTSC Committee Chair Dr. G.R. “Rocky” Mobaraki, MBA, PhD The Hertz Corporation Director, Government Sales PTSC Vice Chair and Airline Committee Sub-committee Chair Mr. Denny Clifford Director, Military and Government Sales Northwest Airlines Car Rental Sub-committee Chair Mr. Mike Washkevich Director, Government Sales Avis & Budget Rent A Car

In today’s automated world, government travelers need to ensure that they are utilizing government car rental rates and not those available to the general public in order to receive the benefits of the government car rental program. Failure to utilize appropriate rates nullifies benefits. TRAVEL AGENCIES Ms. Kelly Kuhn, President Carlson Wagonlit Travel/SatoTravel Military & NDTA PTSC Travel Agency Sub-committee Chair The DTMO provides centralized management and acquisition of Commercial Travel Offices serving the official travel requirements of DOD activities worldwide while GSA manages the travel agency programs for the civilian government agencies. Currently, a number of large and mid-size travel agencies have and/or are bidding on the world-wide DOD travel task orders covering all branches of military service. Two awards have already been announced (Defense Travel Area [DTA] 6 task order for all of the USMC and several DOD agencies and DTA 1 for army locations in the states of AZ, CA, CO, ID, MT, NM, NV, OK, UT, WA, and WY). Both were awarded to CWTSatoTravel. A comprehensive travel management survey was conducted recently by CWT; the findings were applied industry wide and are outlined below: • Content fractionalization will continue to be a challenge across the globe—in

Hotels Sub-committee Chair Mr. Scott Lamb Director, Government Sales Hilton Hotels Corporation Travel Agencies Sub-committee Chair Ms. Kelly Kuhn President, Carlson Wagonlit Travel | SatoTravel Travel Technology Sub-committee Chair Lisa Godfrey DTS Program Manager Northrop Grumman Bus Sub-committee Chair Ms. Diane Walden VP, Sales, Trailways

Passenger Rail Sub-committee Chair Mr. Clifford Black Chief Corporate Communications (Acting), Amtrack Travel Publications & Services Sub-committee Chair Brent Albrecht Advertising & Marketing Director, OAG EX-OFFICIO Ken Wykle, President, NDTA Denny Edwards, VP, NDTA

(Subcommittee Chairman*)

Extended Stay Lodging Sub-committee Chair Toni Kleinops Extended Stay America

www.ndtahq.com | 21

response, travel agencies will continue to invest in GDS-independent booking solutions. • Traveler expectations and behavior are changing with the advancement of mobile technologies—Web 2.0 is a reality. Travelers not only use the Internet to access information, but to share it. In response, travel agencies will continue to invest in mobile services and “intelligent” itineraries, delivering customized itinerary content and destination infor-

mation to the traveler on a mobile device and getting instant feedback about service while the traveler is en-route. • Industry suppliers will continue to consolidate and competition will decrease—in response, travel agencies will continue deploying a holistic approach to Program Optimization. Rather than focusing only on supplier discounts, travel agencies will help clients maximize savings by analyzing and influencing traveler behavior, enforc-

The MILITARY GOVERNMENT MARKET and the TRAVEL INDUSTRY

>> GOVERNMENT CHARGE CARD The GSA SmartPay® program provides charge cards to agencies/ departments throughout the US government, as well as tribal governments, through master contracts that are negotiated with major national banks. There are currently more than 350 agencies/organizations participating in the GSA SmartPay® program, spending more than $26 billion annually through more than 98 million transactions on nearly three million cards. The GSA SmartPay® program office currently manages five master contracts providing agencies a number of different types of charge card products and services.

By Denny Edwards, NDTA Headquarters

s a major customer of the US travel industry, the military/government traveler is unique in the services he or she requires. NDTA asked long-time passenger travel executive, Craig Thompson, VP Military & Government CWT SatoTravel, to give his views on some of the current issues affecting the Industry. NDTA: How does the current economic situation impact the industry/government relationship? THOMPSON: The original business model may no longer suit requirements today. For example, there is widespread sentiment in the airline industry that in these crucial times, the traditional favorable terms offered to the government in terms of air fares may have to be modified. Guaranteed last seat availability and the continued imposition of fuel surcharges are two issues up for discussion. In the future, airlines may be forced to model their government programs to more closely fit the template of their larger corporate customers. It is no secret that the government gets a great value in terms of pricing from the airlines and the rest of the travel industry. But that may have to change as the market adjusts to today’s economic conditions. I believe we will continue to see the availability of government rates decrease, or the cost of that availability increase for the government market. 22 | Defense Transportation Journal |

ing policy, and managing demand. • Corporate Social Responsibility will impact and guide business decisions— driven by customer demand, clients are increasingly aware of the impact that their business practices have on society and the environment. Travel agencies will continue to be a responsible supplier and will support our clients’ initiatives through improved safety and security programs and environmental impact monitoring. DTJ

• Purchase Cards: For purchasing general supplies and services • Travel Cards: For travel expenses related to official government travel (airline, hotel, meals, incidentals) • Fleet Cards: For fuel and supplies for government vehicles • Integrated Cards: Two or more business lines (card types) whose processes are integrated into one card The current GSA SmartPay® contract was awarded in 1998. The current contract is set to expire on November 29, 2008, and GSA has

NDTA: How has the combined Carlson WagonLit Travel/SatoTravel organization changed since becoming one company? THOMPSON: As a significant player in the market, our first objective was “to do no harm” and have a seamless transition. It has

AUGUST 2008

awarded contracts to the banks that will provide charge card services to the government going forward. This future program is referred to as GSA SmartPay® 2. The banks that have been awarded contracts under GSA SmartPay® 2 are Citibank, GE Capital Financial, JP Morgan/Chase, and US Bank. Based on customer feedback, the GSA SmartPay® Program Office is focusing on improvements to the following areas for SP2: • • • •

New products and services Security of systems and data Enhanced data capture Improved ability to analyze data and produce information • Tax reclamation All current charge cards will expire on November 29, 2008, at 11:59pm Eastern Standard Time (EST). Cardholders should receive a new card during summer 2008, which will be shipped in a deactivated state. Cardholders will be required to verify receipt of the new travel cards and begin using on November 30, 2008, at 12:00am EST. For further information visit: www.defensetravel.dod.mil or www.gsa.gov/smartpay.

been successful in terms of our clients and in terms of our own people. Our customers tell us that we have succeeded. Although we issue approximately 15,000 tickets per day to our government and military travelers worldwide, customers say we have retained the same high quality services that both

companies were known for. To that strong service ethic we have been able to add the advantage of size. Folks don’t buy from you because you are big, per se, but being big helps you provide new and more efficient services. The enhanced Aqua software program we use helps maintain high quality controls from an administrative standpoint on all our reservations and ticketing. When the name is the same “over the door” worldwide, it allows us to provide quality and efficient service throughout the 150+ countries where we operate. It’s tough to go to any country in the world and not see our name in Embassies or on military installations. That widespread coverage helps us take care of our government travelers. NDTA: With the travel industry facing multiple serious issues today, what changes do you see on the horizon that will affect the military/government market? THOMPSON: Actually, government and military business stays fairly steady in both good times and bad. At least this has been the traditional assessment. The missions of the various US Government agencies do no necessarily change with the economy. But with airlines making drastic cuts in capacity, the travel industry is changing. Less capacity means higher load factors, and that in turn means increased fares for all. In the short run, I think we should rely on the Boy Scout motto—Be Prepared, Plan Ahead. But in the long term, I think that it is inevitable that the government is going to have to live with higher prices. No doubt, as the industry’s costs rise, those costs are going to be passed on to all customers— including the government. That is the free marketplace we live in and defend. NDTA: How well are DOD’s DTS and the government’s e-Gov travel programs operating based on your experience? THOMPSON: I think pretty well. Early growing pains, but I think we are there. Both systems provide efficient tools for the official traveler. I don’t believe anybody in the industry realized the degree of “customization” that would be necessary to meet the government’s requirements. We were trying to synthesize the government programs with ones similar to what we use for our corporate travelers. In one exceptional case, we found that making an of-

With plans to re-invigorate their participation with NDTA, Marriott International and OAG offer programs that will provide benefits to NDTA members in the long run.

arriott International has recently launched an industry-first sales training program that will translate into greater efficiency and customer service for the company’s government customers known as “Sales Force One.” The online, self-guided program is designed to give Marriott sales associates a more comprehensive view of government travelers’ needs; a team of 18 Government Area Account Executives in the Washington, DC, area were a key component in developing the government segment strategy. The new program covers topics ranging from group contracting and individual travel to extended-stay needs. Marriott is the first major hotel chain to introduce a detailed government per diem rate qualification guide, which include details about compliance with GSA per diem rates and specifically who qualifies for Marriott’s Federal, State, and Local Government rates. NDTA and Marriott are considering ways to provide personal copies of the Per Diem Guide to association members, according to Paul Somogyi, Director of Sales, Government & Affinity Segments. Another NDTA member benefit under consideration is complimentary distribution of OAG Worldwide’s Official Traveler—DOD and Government Resource Guide (retail: $17.95). This indispensable reference, published once a year in November right after the Per Diem rates come out in October, is a compendium of useful information specifically targeting military and government traveler needs. Topics include the latest GSA city pair awards, CONUS and selected OCONUS Per Diem rates, DTMO Car Rental Ceiling Rates, and listings of Military Installations and USO locations. Critical updates on the Defense Travel System (DTS) and E-Gov Travel Service (ETS) also appear, addressing such topics as flight cancellation policies and what to do with unused tickets. Hotel and rental car discount and upgrade coupons are a popular and practical feature. Although this product is not designed specifically for government contractors, OAG Marketing Director, Brent Albrecht explains that the wealth of current travel information would be equally useful to them as they serve their government customers. DTJ

ficial government trip required 9 levels of approval! Nothing like that exists in any of our other programs. NDTA: How is CWT SatoTravel preparing for the DOD Smart Card 2 transition? THOMPSON: We realize that when the current Bank of America contract expires in

November and Citi takes over that there will be some challenges. There always are when change is involved. But we feel our size and more than 50 years of experience in the market will smooth out any bumps in the road. Again, being prepared is our best plan and the government’s best plan. We have been through every credit card change since the original was first used . . . “way back when.” DTJ www.ndtahq.com | 23

The Best Laid Plans

What to Do with UNUSED AIRLINE TICKETS from GSA

olding on to a totally or partially used airline ticket costs your agency money. Unused tickets have monetary value; therefore, any adjustments in connection with official passenger transportation that results in an unused segment must be promptly processed to prevent monetary losses to the government.

ian travel agency. CTO is the Department of Defense’s travel agency.) Most of the time, airline tickets are purchased by the TMC/CTO using the agency’s centrally billed account (CBA), so the amount will never appear on the traveler’s IBA. When tickets are purchased via a CBA, the traveler should immediately:

UNUSED TICKETS DEFINED • Tickets purchased for Government travel, but never used • Travel is terminated short of the authorized destination • Return portion of a round-trip ticket is not used • Services actually furnished are different or of a lesser value than those authorized

• Notify TMC/CTO when trip or portion of trip will not be/was not made. Make written documentation that TMC/CTO was notified and notify appropriate office/agency of unused portion(s) in accordance with your agency’s internal travel policies

RESPONSIBILITY – AS A GOVERNMENT TRAVELER Government travelers having downgraded, exchanged, unused, or partially unused tickets that were purchased with their individually billed account (IBA) should exchange those coupons for a Credit Card Refund Notice (CCRN) receipt from the Transportation Service Provider (TSP)/ Travel Management Center (TMC)/ Commercial Travel Office (CTO). The traveler should retain this CCRN receipt as evidence that a credit is due and confirm that the credit was received on his/ her IBA statement. (NOTE: The TSP is the airline used. TMC is the federal civil-

RESPONSIBILITY – AS AN AGENCY Each agency’s policy office should establish administrative procedures to promptly identify unused tickets, coupons, or other evidence of refunds due the Government. The travel office that handles travel vouchers should be able to identify any unused tickets attached to travel vouchers. The travel office should also be able to determine any possible unused portions when examining travel vouchers (eg, if a traveler used another mode of travel [car] in lieu of return portion of ticket). The agency’s finance office receives centrally billed account (CBA) statements and should be aware of unused tickets to ensure that credits are received. To ensure that unused tickets are tracked and refunded, an agency should:

Federal and Military Travelers Have the Right to a BETTER HOTEL RATE with FEDROOMS

edRooms is the official governmentwide, government-sponsored hotel program, with more than 6500 hotels in more than 1700 cities worldwide. FedRooms Rates are negotiated on behalf of the federal government, guaranteeing travelers: • Rates that are at or below per diem • A cancellation policy of 4pm on the day of arrival 24 | Defense Transportation Journal |

• • • •

No hidden costs or penalties No charge for early check-out Hotels with a two-star (or higher) rating Hotels that are FEMA-certified

Other so-called government or military rates may not provide these guarantees. Moreover, in a recent sampling of key federal travel cities, non-FedRooms rates for government travelers were listed higher than per diem in 15% of hotels tested.

AUGUST 2008

• Ask for a management information report from its TMC/CTO broken down by CBA/IBA and/or US Government Transportation Requests (GTR, SF 1169) to keep a better track of unused portions • Ask its TMC/CTO to add a statement on itineraries that provide instructions regarding unused tickets or ticket segments • Add a line for status of unused tickets if the agency has a travel worksheet/ checklist EXPIRED TICKETS An expired ticket is one that is more than a year old from date of purchase. Only GSA’s Transportation Audits Division can recover refunds for expired tickets, and any expired tickets must be submitted to GSA’s Transportation Audits Division for processing. GSA’s Transportation Audits Division may recover refunds for up to 10 years after date of purchase. Expired tickets must be sent to the following address: General Services Administration Transportation Audits Division 2200 Crystal Drive, Suite 300 Arlington, VA 22202 For more information regarding unused tickets, please contact your GSA representative, Annie Scott, at 703-605-9425, 703-605-9903 (fax), or annie.scott@gsa.gov. WHY SHOULD FEDERAL TRAVELERS FOCUS ON BOOKING THE FEDROOMS RATE? Travelers no longer need to search and compare hotels to ensure that they are compliant with federal regulations: With more than 6500 FedRooms hotels worldwide, and with new hotels added daily, FedRooms provides choice while leveraging the federal government’s overall buying power—ensuring guaranteed rates and rate protection now and in the future. HOW CAN FEDERAL AND MILITARY TRAVELERS BOOK THE FEDROOMS RATE? Because the program was designed for federal travelers, FedRooms Rates are

accessible through all four distribution channels: • Directly through the FedRooms website, www.fedrooms.com. • Through federal agencies’ designated E-Gov Travel Service (ETS) booking tools following a simple two step process*: – Select a designated FedRooms property from the search results. – Choose the FedRooms Rate from the list of available rates. • Through direct calls to participating hotel reservation centers. Be sure to insist on the FedRooms Rate by name. Remember, the “government,” “federal government,” and “military” rates are not the same. • Call the government or military agency’s designated travel agency and ask for the FedRooms Rate. LEISURE TRAVEL, ANYONE? Because federal travelers requested it, FedRooms has made it easier than ever to access FedRooms rates for leisure travel on fedrooms.com**. Clicking on “leisure” in the “filter search results” section allows federal travelers to refine search results to show only hotels that extend the FedRooms rate to federal travelers on leisure travel. Nearly 60% of participating properties currently extend this rate, and we expect this number to continue to grow as utilization increases. FEDROOMS FOR CONTRACTORS Government contractors are also eligible to use the FedRooms Rate at more than 60% of the 6500 participating properties. Click on “contractors” in the “filter search results” section to refine search results to only those properties extending the rate for contractors. Contractors can also contact Kindall Farwell (kindall@fedrooms.com) for more information about booking through FedRooms.com or our enhanced program for contractors, CRC FedRates. DTJ

The FedRooms Rate. Ask for it by name. Accept no substitutes. *The technology for military travelers to book through the DTS is currently in development. In the meantime, travelers can book through FedRooms.com when policy allows. **FedRooms Rates for leisure travel must be booked via fedrooms.com.

NATIONAL TRAVEL FORUM Tackles Government/Industry Travel Issues By Denny Edwards, NDTA

ore than 200 government and military travel managers and travel industry professionals met in Atlanta recently for the 2008 National Travel Forum, which was hosted this year for the first time by the National Business Travel Association’s Government Travel Group (GTF). Educational sessions on the Federal Travel Regulation and the Joint Travel Regulation (JTR) were most popular. The JTR is a comprehensive and sometimes very complex regulation, but it is the industry “Bible,” and, as such, travel managers on both sides of the partnership need to understand its provisions and apply them correctly. Recognition of its importance, said GTG officials, always makes the JTR and FTR discussions some of the most valuable of the Forum. The increased importance of Relocation drew considerable interest. Several new comers to the industry participated and exhibited this year, and the consensus of GTF delegates was that the field will continue to grow as military and government organizations put more emphasis on consolidating functions to facilitate “one stop shopping,” thus easing the burdens of transfers and relocations on employees.

>> GOVERNMENT TRAVEL FORUM The Government Travel Forum was historically organized by the General Services Administration (GSA). At the conclusion of NTF 2006, GSA entrusted future event management to the National Business Travel Association’s Government Travel Group (NBTA GTG). The GTG was created by NBTA to serve the growing needs of government travel professionals within GSA, DOD, and the states and to provide government travel managers with access to the member benefits that have long set NBTA apart as the leading association for corporate travel professionals. Currently the National Travel Forum is held every two years.

The Car Rental seminar was well attended due to the recent transfer of the Federal Rental Car Program from the Strategic Deployment and Distribution Command (SDDC) to the Defense Travel Management Office (DTMO). Nearly every member company of NDTA’s Car Rental Sub-committee was represented. The DTMO advanced the idea of more widespread educational outreach to customers in the form of individual agency conferences to help military and government travelers understand their options and responsibilities. Session attendees were overwhelmingly in favor of such a program. The current Airline industry environment was another serious topic of discussion. Facing an uncertain future, travel managers must be prepared for change. Special surcharges and fees were discussed as well as ways to minimize the impact for government travelers. Although many fees are beyond the traveler’s control—airport fees and fuel surcharges, for example—travel managers must continue to educate and update their customers as often as possible. Two exhibit periods were held during the four day event. “We had good traffic and lots of interest by delegates,” said George Greiling, Senior Travel Analyst at the DTMO. Paul Somogyi, Director of Sales, Government and Affinity for the Marriott Corporation, added, “The Forum gave us a good opportunity to tell customers about Marriott’s new direction and emphasis in the government market. We are more focused now on the importance of this segment”, he said. DTJ www.ndtahq.com | 25

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Warfighters don’t have wants. They have needs. Life and death needs. They need a global supply chain that goes wherever they do. They need real-time, full life cycle information on supplies in transit. And they need the confidence to know they’ll never have to think about it. At Savi, a Lockheed Martin Company, that’s what we’re delivering through Total Asset Management. Bringing together networked solutions, powered by Automatic Identification Technologies that improve decision-making, situational awareness, and operational efficiency worldwide. For more information, visit www.savi.com Image courtesy of defenseimagery.mil. No endorsement expressed or implied.

avid Wartofsky, owner of Potomac Airfield has provided the “playstation in the sky” backdrop for this spectacular event during the past ten years. Thanks to him, students were provided a hands on interactive field trip with planes, helicopters, emergency rescue vehicles, LCMs (flat bottomed US Army Landing Craft-Mechanized boats), virtual simulation vehicles, and heavy haul and dump trucks for an interactive and educational fun-filled day in honor of National Transportation Week 2008! All together, more than 6800 students, 150 volunteers, and more than 50 active service members from all branches were on hand at Potomac Airfield in Fort Washington, MD, site of the day’s activities. Potomac Airfield is a hotbed of innovation in aviation where student numbers have increased significantly since the first gathering at the Airfield in 1998 when just about 350 students were on hand. In addition to aircraft displays, the children enjoyed boating on the Potomac River, courtesy of the US Army, with launches from Tantallon Marina in Fort Washington, MD. This was our maiden voyage with the Army and Tantallon Marina. In the call to action, US Army Reserves 464th Division at Ft. Belvoir stepped up to the challenge. The 464th provided boat rides from Tantallon Marina on the Army’s Landing Craft-Mechanized (LCM) flat bottomed boats. With their huge bow ramps that drop to allow soldiers and equipment, they “hit the beach” in an amphibious assault, just like the movies about WWII. An eight-member Color Guard Nations Capitol Region presented the colors to start the ceremony. The US Navy’s elite Ceremonial Guard drill team performed perfectly, tossing rifles through the air with skill and precision. Volunteers from the DOT partnered with teachers, school chaperones, and the armed forces, escorting students through exhibits, helping them with life vests for a safe boat trip, and answering questions about transportation on land, air, and water. Army, Air Force, Navy, and Marine volunteers were also on board to serve as outstanding role models for the nexgen transportation workers of our future. Former DOT Secretary Rodney Slater greeted students with support and encouragement. “You see, if you wait until the 12th grade to start thinking about what you want in life—it may be a little too late. Now is the time to begin. Now is the time to develop the math and science skills to work in transportation or any other technologyrelated career field. Repeat after me—Good, better, best. I will not rest, until my good is better and my better is best.” Col. Fred Vann Cherry, one of the most distinguished and decorated veterans of the Vietnam War, with more than 35 medals, and retired USAF fighter pilot who served in Korea and was held captive as a prisoner of war in Hanoi for more than seven years, shared his inspirational story of survival and message of hope. James “Flash” Gordon, Vice President for the Organization of Black Airline Pilots, engaged children in lively dialogue on the tarmac explaining the steps he took to earn his wings. Elizabeth Seale,

Chief Operating Officer from the Corporation for National and Community Service stressed the importance of working hard and dreaming big. The Garrett A. Morgan Technology & Transportation Futures Program Committee volunteers are real life caring hearts for this special outreach program. Every year, the venue at Potomac Airfield becomes more awe inspiring and life changing with the Garrett Morgan volunteers on board. This is a real “hands on lesson.” “Kids are able to explore several types of aircraft and various modes of transportation on display. Kids of all ages can sit in the cockpit and imagine themselves soaring through the skies. Dreaming keeps hope alive—and it helps fuel the next generation of transportation experts!” And with today’s nexgen workforce doing their best, we know America’s best is yet to come. DTJ

To learn about the DOT’s Garrett A Morgan Technology & Transportation Futures Program for kids, please contact: Belinda Bender by email at belinda.bender@faa.gov

www.ndtahq.com | 27

U.S. Government travelers know nothing beats a great deal. We know you recognize great travel deals, so we’re giving you a free single upgrade on future rentals. That’s on top of your member discount of up to 20% off when you use BCD # T788300. It’s that simple.

To get your free upgrade, use coupon # UUGZ055. Visit budget.com or call 1-800-BUDGET-7 to make your reservations.

Free Single Upgrade Terms and Conditions: Coupon valid for a one time, one car group upgrade on a compact (group B) through a full-size four-door (group E) car. Maximum upgrade to premium (group G). Offer does not include all makes or models. The upgraded car is subject to vehicle availability at the time of rental and may not be available on some rates at some times. Coupon valid at participating Budget locations in the contiguous U.S. One coupon per rental. A 24-hour advance reservation is required. May not be used in conjunction with any other coupon, promotion or offer except your member discount. For reservations made on budget.com, upgrade will be applied at time of rental. Renter must meet Budget age, driver and credit requirements. Minimum age may vary by location. Fuel charges are extra. Rental must begin by 12/31/08.

COUPON # UUGZ055 Budget features Ford and Lincoln Mercury vehicles.

16373

GOVERNMENT NEWS* SDDC The Military Surface Deployment and Distribution Command (SDDC) has established a Strategic Business Office (G9 directorate) effective as of June 1, 2008. The G9 directorate is a diversified strategic and business office and will be responsible for a full range of transportation services and policy and business oversight. It will complement the streamlining efforts within SDDC while offering a focused transportation conduit for industry and related services to SDDC customers. This reorganization is expected to be transparent. The G9 directorate derives from the SDDC Operations Center (G3 directorate). Creating two directorates will pro-

*Some articles have been condensed due to limitations in space.

vide improved flexibility, dynamic tailored customer service, more focused business structures, and an improved communication environment for both customers and partners. SDDC provides global surface deployment and distribution services to meet the nationâ&#x20AC;&#x2122;s objectives. SDDC deploys and sustains more than 90 percent of the Department of Defenseâ&#x20AC;&#x2122;s equipment and supplies by leveraging the capability of commercial industry and other military services.

USTRANSCOM Secretary of Defense Robert Gates announced his recommendation to President Bush that he nominate Air Force General

INDUSTRY NEWS*

Norton A. Schwartz, commander of US Transportation Command, to become Air Force Chief of Staff. Schwartz would replace General T. Michael Moseley, who with Air Force Secretary Michael W. Wynne, has resigned. Gates released his recommendation on June 9, 2008. Other recommendations from Gates include Gen. Duncan J. McNabb to become the next commander of US Transportation Command. Lt. Gen. William M. Fraser, recently tapped to replace Schwartz at USTRANSCOM, has now been recommended to serve as the Air Force Vice Chief of Staff instead. Recommended for Air Force Secretary is Michael B. Donley, the DOD Director of Administration and Management. In speaking to members of his staff at USTRANSCOM, Schwartz said that accountability and responsibility are the hallmarks of leadership, highlighting the honorable service of Secretary Wynne and Chief Moseley. DTJ

*Some articles have been condensed due to limitations in space.

PHOTO WRAP UP Paralyzed Veterans of America Golf Open (PVA) Underwriting Sponsor: Agility Defense & Government Services

Agility is pleased to announce that proceeds raised from the June 2 PVA golf tournament totaled $226,875! Proceeds will go directly to support the new PVA Vocational Rehabilitation Counseling Center in San Antonio. This Center will help equip disabled veterans with the tools they need to reenter the job market following life-altering injuries, while matching them with interested businesses and organizations that have available positions. Paralyzed Veterans of America was founded in 1946 and is the only congressionally chartered veterans service organization dedicated solely for the benefit and representation of individuals with spinal cord injury or disease. DTJ

John Nicholas presents a special golf clinic geared towards veterans with spinal chord injuries.

Jack Franklin, National Vice President of PVA, lines up his shot.

Gen. Dan Mongeon, USA (Ret.), President of Agility Defense & Government Services and Maurice Jordan (right), Deputy Executive Director of PVA.

Bo Jackson chatting with Mark Little, an Iraq War veteran who lost his legs serving his country.

www.ndtahq.com | 29

CHAPTER NEWS* ATLANTA CHAPTER May was an exceptionally busy month for the Atlanta Chapter. The A-35 team had a social at Taco Mac on May 14. Katie Reilley organized the event, and students from Clark Atlanta University joined them. In recognition of National Transportation Week, Georgia Governor Sonny Purdue proclaimed Georgia Transportation Week. Members of the Atlanta Chapter were invited to his office for the signing of the proclamation on May 19. The monthly chapter meeting was held on May 21 in Powder Springs, GA, at the American

*Some articles have been condensed due to limitations in space.

cluded players from national and regional industry partners and members of the chapter. Enthusiastic sponsorship for the tournament included the following organizations: Ace Transportation, Baggett Transportation, Brunswick Electric Mem-

proximately 40 people in attendance, from Air Force, DLA, and commercial carriers. Oklahoma City Chapter officers were installed for the next year; three local students were presented with $500 scholarships, and special proclamations from the offices of US Representative Mary Fallin and Oklahoma Governor Brad Henry were read by a member of Representative Fallin’s staff and by Oklahoma State Representative Charlie Joyner. Speaker for the event was former Dallas Cowboy professional football player, Chad Hennings. Chad is a graduate of the Air Force Academy and flew 45 missions in support of Operation Provide Comfort in northern Iraq.

Cape Fear 4th Annual Scholarship Golf Tournament

SCOTT/ST. LOUIS CHAPTER The Bistro officially opened on March 1; the celebration, however, took place on May 27 when Ken Wykle visited the Chapter. DTJ

MagLev Technology (AMT) test track. Members toured the facility, received a capabilities and program brief from AMT CEO Tony Morris, and saw an operational maglev train. Mr. Morris described how magnetic levitation technology can help reduce costs and in regional transit systems. The next significant chapter event is the annual Scholarship Golf Tournament, scheduled for July 11 at The Golfer’s Club on Fort McPherson.

bership Corporation (BEMC), Boyle Transport, Government Trans Systems, Green Valley Transportation, Jones Ford, Kone Cranes, Landstar Ranger, LB&B Associates, Marine Terminals Corporation East, Mi-Jack Products, Inc., National Air Cargo, Ocean Power, NICO Shipping, North Carolina State Ports, SupplyCore, R & R Trucking, Sealift Holdings, TriState Motor Transportation, and Wilmington Shipping. Tournament winners, sponsors, and the Wounded Warriors were all recognized at the luncheon held at Sea Trail following the morning golf event. A special note of thanks goes out to Green Valley Transportation, BEMC, and Jerome’s Steak and Seafood Restaurant for sponsoring the Wounded Warrior’s participation in the tournament.

CAPE FEAR CHAPTER The Cape Fear Chapter hosted Wounded Warriors from Fort Bragg, NC, at its 4th Annual Scholarship Golf Tournament held at the Sea Trail Resort in Sunset Beach, NC. The May 15 event attracted 140 golfers, a record for the Cape Fear Chapter. Twelve soldiers from the Fort Bragg Wounded Warrior program were invited to play on various teams that in-

OKLAHOMA CHAPTER With Oklahoma located at the crossroads of our country, Transportation is a key ingredient in its daily survival—and that makes National Transportation Week important in and of itself. With four major DOD bases located within our state, the designation of National Defense Transportation Day is even more reason to celebrate. The Oklahoma City Chapter’s May luncheon had ap-

Governor Purdue signs NTW Proclamation with Atlanta Chapter members

2 0 0 8 N D TA FORUM & EXPO

(L to R): Colonel Diana Ritter, 375th Medical Group commander, Ken Wavering, Chapter president, Ken Wykle, NDTA president, and Colonel Alan Hunt, 375th Airlift Wing commander. Photo: Jennifer Melton.

All hands share in celebrating the official opening of The Bistro, the Aeromedical Staging Facility (ASF). The Chapter “adopted” the ASF room renovation project to bring the comforts of home to injured troops. Photo: Jennifer Melton.

Exhibit Booths and Sponsorship are filling up fast!

DON’T BE LEFT OUT.

CONTACT: Denny Edwards, NDTA 703-751-5011 | denny@ndtahq.com Or reserve online at www.ndtahq.com

30 | Defense Transportation Journal |

AUGUST 2008

Mitigating Diminishing Manufacturing Sources & Material Shortages Bill Kobren, Director, Defense Acquisition Program, Defense Acquisition University, Alex Melnikow, DMSMS Program Manger, DLA, and David G. Robinson, Program Manager, DSMS Center of Excellence, Defense Supply Center, Columbus

Reprinted with permission from: Defense AT&L, May-June 2005

hile Diminishing Manufacturing Sources and Material Shortages (DMSMS) are a fact of life, the key to effective mitigation is longterm, proactive planning by the Program Manager (PM). According to the Office of the Secretary of Defense publication Performance Based Logistics: A Program Manager’s Product Support Guide, “material obsolescence may occur at the part, module, component, equipment, or other system indenture level. DMSMS obsolescence can occur in any program phase and can severely impact the program schedule, system availability, capability, or cost. The PM must ensure that performance based logistics product support efforts include an active DMSMS process to anticipate occurrences and take appropriate actions.” Under total life cycle systems management, the PM must balance traditional acquisition responsibilities for cost, schedule, and performance with life cycle support and sustainment (including DMSMS planning and management). PMs make scarce resource allocation decisions knowing that the choice may come down to fielding a less supportable (less reliable) system or pursuing a more sustainable (more reliable) program. The dynamic tension is often acute, and, unfortunately, DMSMS planning and funding are not always given the highest priority. Simply supporting the system is a substantial undertaking, let alone planning for manufacturers of components and parts who may (will) eventually exit the market. So what’s a proactive PM to do? Fortunately, there are ample resources and organizations available to assist. A RANGE OF PROACTIVE SOLUTIONS If DMSMS and obsolescence are the problem, technology insertion, continuous modernization, open systems architecture, redesign, modifications, Performance Based Logistics (PBL), public-private partnerships, commodity councils, evolutionary acquisition, spiral development, and emulation are all tools to help the PM, the

life cycle logistician, and/or the DMSMS manager to ensure the continued supportability and sustainability of the system. Possible methods are early identification through shared databases, inter-Service and inter-agency cooperation, and contractor participation; use of predictive tools; life of type buys; aggressive material improvement program and deficiency reporting programs; use of engineering change proposals (ECPs) and value engineering change proposals (VECPs) to upgrade and modernize components while maintaining interchangeability and F3 (form, fit, function); specialty manufacturers; reverse engineering; data rights; and drawing availability. LEADERSHIP Along with up-front funding and commitment at the PM level, senior-level commitment, policy, tools, education, planning, and cross-functional collaboration are vital. The Navy, for example, plans to require a formal DMSMS plan for all cognizant ACAT programs other than those slated for retirement prior to January 2007, as well as evaluation of DMSMS as part of their independent logistics assessment process. OPEN SYSTEMS DESIGN According to OSD’s Performance Based Logistics: A Program Manager’s Product Support Guide, “open systems design can help mitigate risks associated with technology obsolescence, avoiding being locked into proprietary technology or relying on a single source of supply over the life of a system . . . Spiral development also helps to alleviate obsolescence concerns. However, the PM must ensure that PBL product support efforts include an active DMSMS process to anticipate occurrences and take appropriate actions. This can often be carried out by the Product Support Integrator.” TEAMWORK AND COOPERATION Cooperation between the government program office and original equipment manu-

facturer (OEM) is essential well before the Milestone C decision and entry into low-rate initial production, including development and integration of an up-front DMSMS-mitigation strategy in the system’s PBL strategy. The PBL product support integrator should focus on and plan for reliability improvements, continuous modernization, and DMSMS planning for the duration of the product life cycle. BILLS OF MATERIAL AND PARTS LISTS These documents are critical components of effective DMSMS management and should be part of doing business under PBL, whether delivered by the OEM to the government or made available in a shared data environment. CONTINUOUS MODERNIZATION By this process, state-of-the-art technologies are inserted continuously into weapon systems to increase reliability, lower sustainment costs, and increase the warfighting capability to meet evolving customer requirements throughout an indefinite service life. According to the Defense Acquisition University PBL course, there are three additional obsolescence mitigation strategies to employ as part of an overarching continuous modernization approach: Engineering Change Proposals, Value Engineering, and PBL. The PBL contractor ensures that all elements of logistics support are available to provide an agreed-upon level of system availability on demand.” The DOD Program Managers Handbook—Common Practices to Mitigate the Risk of Obsolescence, available at http:// www.dmea.osd.mil/docs/pmhandbook_ rev_d.pdf, identifies three levels of practices to mitigate DMSMS: • Level 1 Practices to resolve current obsolete items (some may be considered reactive), include among others: – Assign DMSMS focal point – Conduct DMSMS awareness briefings www.ndtahq.com | 31

– Facilitate internal communication – Facilitate external communication – Implement comprehensive DMSMS plan – Create supportability checklist. • Level 2 Practices to mitigate the risk of future obsolete items (majority would be perceived as proactive) include among others: – Conduct DMSMS awareness training – Perform DMSMS prediction – Implement DMSMS internal steering group – Build commercial off-the-shelf list – Develop DMSMS solution database • Level 3 Practices to mitigate the risk of obsolescence when there is a high opportunity to enhance supportability or reduce total cost of ownership (proactive activities which may require additional program funding) include among others: – Implement circuit design guidelines – Produce behavioral VHDL (very

high-speed integrated circuit hardware description language) model – Conduct technology assessment – Implement electronic data interchange – Investigate technology insertion. Also referred to as technology transition, this is the process of applying critical technology in military systems to provide an effective weapon and support system—in the quantity and quality needed by the warfighter to carry out assigned missions and at the best value. DMSMS CENTER OF EXCELLENCE LEADS THE WAY The Defense Supply Center, Columbus (DSCC) serves as the DLA focal point for DMSMS management and is responsible for the DOD DMSMS Center of Excellence, developed to encourage communication, education, and cooperation among interested and affected agencies. Visit the DMSMS web site (www.dmsms.org) for resources and tools to assist proactive PM’s and logisticians. DTJ

In addition, the GovernmentIndustry Data Exchange Program, also known as GIDEP, is a cooperative activity between government and industry participants seeking to reduce or eliminate expenditures of resources by sharing technical information essential during research, design, development, production, and operational phases of the life cycle of systems, facilities, and equipment. GIDEP works closely with different government activities on several DMSMS projects that will eventually be migrated to GIDEP system. Among these projects are the DMS Shared Data Warehouse, the DMSMS Prediction Tool, and the Army DMS Info System. Future migration of these systems in GIDEP would facilitate GIDEP’s role as the central repository of data for DOD DMSMS management.

can you find your future in this picture? at first glance, you see a train gliding through a pristine forest. But look the future of transportation.

a little closer and you’ll also see America’s goods moving efficiently to market, creating less pollution while taking thousands of truckloads off our congested highways. It’s just another example of how Norfolk Southern is carrying America into the future. For information on our Management Trainee opportunities, please visit us at www.nscorp.com/careers and learn how you can be a part of the Future of Transportation.

32 | Defense Transportation Journal |

AUGUST 2008

Merging

COL Denny Edwards, USA (Ret.) VP of Marketing and Corporate Development NDTA

from

Pages PAST

In last year’s Passenger Travel issue, this column recalled the heyday of passenger railroading. Indeed, in the 1940s and 1950s if you travelled intercity, you probably went by train. In the 1960s things started to change as air travel became more popular, and by the 1970’ air travel was the dominant mode.

t is widely agreed that today’s airline industry is suffering because of high fuel prices and the downturn of economic activity. People are traveling less, service is being curtailed, and most in-flight amenities are a thing of the past. We pay for food service, luggage, and aisle seats; cut backs or elimination of frequent flyer programs are also being discussed. In tough times like these, airlines tend to do what they have done in the past;: MERGE—to cut costs, decrease

competition, and optimize their route systems. The DTJ noted that in 1978 there were 21 major air carriers. By 1991 that number was down to 12, and today we have only 6 “legacy carriers.” Gone are many of the pioneers in the industry—TWA, Pan Am, Eastern, National, Braniff. Look at the chart below and see what once was and imagine what will be in the next few years. DTJ

www.ndtahq.com | 33

HONOR ROLL

SUSTAINING MEMBERS AND REGIONAL PATRONS

ALL OF THESE FIRMS SUPPORT THE PURPOSES AND OBJECTIVES OF NDTA

SUSTAINING MEMBERS A.I.R., Inc - USA d/b/a M2 Transport AAR Mobility Systems ABF Freight System, Inc. Air Transport Assn. of America Air Transport International, LLC AIT Worldwide Logistics, Inc. American Maritime Officers American Public University System American Road Line American Trucking Associations American United Logistics ARINC Army Air Force Exchange Service Arven Freight Forwarding, Inc. Associated Global Systems Astar Air Cargo, Inc. ATA Airlines, Inc. Baggett Transportation Co. Blue Bird Coachworks BNSF Railway Co. Bender Shipbuilding and Repair Co., Inc. Boyle Transportation Cargo Transport Systems Co. Carlson Hotels Worldwide C.H. Robinson Worldwide, Inc. Chalich Trucking, Inc. Chamber of Shipping of America Computer Sciences Corp. Comtech Mobile Datacom Corporation CRST International, Inc. Crowley Maritime Corp. CWT SatoTravel

REGIONAL PATRONS AAAA Forwarding, Inc. AAT Carriers Acme Truck Line, Inc. Advantage Rent-A-Car AHI Corporate Housing American Moving & Storage Assn. Association of American Railroads Asynchrony Solutions, Inc. Avis Budget Group AWARDCO Freight Management Group, Inc. BEC Industries, LLC C5T Corporation The Cartwright Companies Center for the Commercial Deployment of Transportation Technologies (CCDoTT) Ceres Terminals, Inc. Chassis King

DynCorp International Dynamics Research Corp. Efficient Hauling Systems LP dba EHS Industries Enterprise Rent-A-Car Europcar Fikes Truck Line GE Aviation General Dynamics/American Overseas Marine GeoDecisions Global Maritime & Trans. School-USMMA Greatwide Dallas Mavis Intermodal Association of North America (IANA) Intermarine, LLC International Commodity Carriers, Inc. International Longshoremen’s Association, AFL-CIO Intl. Organization of Masters, Mates and Pilots ITLT Solutions, Inc. Interstate Distributor Co. KGL Transportation Co. Kansas City Southern Keystone Shipping Company Knight Transportation Liberty Maritime Corporation LMI Lockheed Martin Aeronautics Co.

Luxury Air Jets MacGREGOR (USA) Inc. Matson Integrated Logistics Matson Navigation Co., Inc. Mayflower Transit McCollister’s Transportation Systems, Inc. MEBA Menlo Worldwide Mercer Transportation Co. Mi-Jack Products Mobility Resource Associates National – Alamo (Vanguard Car Rental USA, Inc.) National Air Carrier Assn., Inc. National Van Lines NCL America, Inc. North Carolina State Ports Authority Northwest Airlines NYK Logistics Americas Ocean Shipholdings, Inc. Old Dominion Freight Line, Inc. Omega World Travel Omni Air International, Inc. OSG Ship Management, Inc. Overdrive Logistics, Inc. Pacer Transport The Pasha Group Pilot Freight Services Port of Beaumont Port of Oakland Powersource Transportation, Inc. Pratt & Whitney PRTM Management Consultants, LLC Priority Air Express

Raith Engineering Sabre Travel Network Savi Technology Sealed Air Corp. Sealift, Inc. Seafarers Int’l Union of N.A. AGLIWD Sea Star Line, LLC Southeast Vocational Alliance Southwest Airlines SRA International, Inc. Stanley Associates, Inc. SSA Marine Team Worldwide Textainer Equipment Management TQL Totem Ocean Trailer Express, Inc. (TOTE) Transportation Institute Transportation Intermediaries Assn. (TIA) TRI-STATE Expedited Service, Inc. Tri-State Motor Transit, Co., (TSMT) TTX Company Tucker Company United Maritime Group Union Pacific Railroad United Airlines UPS Freight United Van Lines, Inc. UTi Worldwide, Inc. VT Halter Marine, Inc. Wagler Integrated Logistics, LLC Whitney, Bradley & Brown, Inc. XIO Strategies, Inc.

C.L. Services, Inc. CSI Aviation Services, Inc. Delaware River Maritime Enterprise Council (DERMEC) DHL Japan Dollar Thrifty Automotive Group Federated Software Group FlightWorks Fox Rent A Car General Freight Services, Inc. Great American Lines, Inc. Green Valley Transportation Corp. Hawthorn Suites – Alexandria, VA Hilton Hotels Corporation The Howland Group, Inc. HudsonMann, Inc. Hyatt Hotels and Resorts The Indiana Rail Road Company

IntelliTrans, LLC JAS Forwarding (USA), Inc. Kalitta Charters, LLC Korman Communities AKA a division Labelmaster Software Liberty Global Logistics LLC Logistics Management Resources, Inc. LTD Management Company, LLC Maersk K.K. MCR Federal, LLC (MCR) MTC Technologies MBA | Morten Beyer & Agnew Naniq Systems, LLC NCI Information Systems, Inc. Oakwood Corporate Worldwide Patriot Contract Services, LLC Payless Car Rental Philadelphia Regional Port Authority

Port of San Diego PowerTrack, US Bank Project ACTA Quality Support, Inc. Seabridge, Inc. Sea Box, Inc. SkyLink – (USA) SR International Logistics, Inc. Stratos Jet Charters, Inc. Trailer Bridge, Inc. Trailways Transportation System Transcar GmbH Trans Global Logistics Europe GmbH Truva International Transportation & Logistics USMMA Alumni Foundation, Inc. Utley, Inc. The Virginian Suites Veteran Enterprise Technology Services, LLC

C2 Freight Resources, Inc. Delta Air Lines, Inc. Dimensions International, Inc.,— wholly-owned subsidiary of Honeywell

34 | Defense Transportation Journal |

AUGUST 2008

Agility Defense & Government Services + PLUS American Shipping & Logistics Group (ASL) + PLUS APL Limited + PLUS Bennett Motor Express + PLUS Choice Hotels International + PLUS CEVA Logistics (formerly EGL Eagle Global Logistics) + PLUS FedEx + PLUS Global Aero Logistics, Inc. + PLUS Horizon Lines, Inc. + PLUS IBM + PLUS InterContinental Hotels Group + PLUS Landstar System, Inc. + PLUS National Air Cargo + PLUS Panther Expedited Services, Inc. + PLUS Ports America Group + PLUS Universal Truckload Services, Inc. + PLUS YRC Worldwide + PLUS Accenture American Roll-On Roll-Off Carrier, LLC Atlas Air Worldwide Holdings BAX Global Benchmarking Partners The Boeing Company Booz Allen Hamilton Bristol Associates CorTrans Logistics, LLC CSX Transportation DHL Evergreen International Airlines, Inc. Gemini Air Cargo, Inc. Hapag-Lloyd USA, LLC

The Hertz Corporation International Shipholding Corp. Kuehne + Nagel, Inc. Lockheed Martin Maersk Line, Limited Norfolk Southern Corporation Northrop Grumman Corporation Odyssey Logistics & Technology Corporation Qualcomm Incorporated R&R Trucking Ryder System, Inc. Science Applications International Corp. (SAIC) UPS UTXL, Inc.

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.

www.ndtahq.com | 35

Transportation Security & the Fuel Crisis

As Cost of Fuel Continues to Escalate, Should Our Focus on Transportation Security Increase?

Lee Jackson Lead, Information Systems Engineer, The MITRE Corporation

ince the focus of this issue is on passenger travel, I thought it might be useful to explore the impact of higher fuel prices on travel security. Specifically, as many of us explore cost effective options—either opting for train or air travel rather than our cars or by taking mass transit—will we be spending a lot more time in the screening process and/or risking security on our commute? I think the answer is “NO” in terms of time. Regardless of the transportation Visit GasBuddy.com to find the best price on gas in your area. Simply plug in city/county to generate a list of nearby stations and costs per gallon for each grade of fuel. So, next time you’re ready to fill up, it’s worth a few seconds on the internet to find the cheapest gas in town and include that station on your list of stops.

mode you use, procedures conducted by the Transportation Security Administration (TSA) and the modal operators are in place and they are efficient. In fact, the actual time it takes in screening is really quite short; processing time, however, depends on many variables: the terminal you use, the time of day you travel, the number of travelers, the experience level of security staff, and the number of staff on-hand who can assist you as you move through the process. Since 9/11, the traveling public has become much more informed and aware of transportation security and consequently has adjusted schedules to accommodate the security process. According to TSA, 708,400,522 passengers were screened in 2006. The average wait was 3.79 minutes; average peak wait time was 11.76 minutes. Also during this time frame, TSA screened 535,020,271 individual pieces of checked luggage and opened 16% of the checked bags (85,571,710) searching for prohib-

HOMELAND

SECURITY ited items. A total of 13,709,211 prohibited items were intercepted (11,616,249 lighters/1,607,100 knives). With that said, as fuel costs escalate and as more people choose public transport rather than personal vehicles, the inevitable question arises: Should TSA and the transportation community at large take another look at facilities and conveyances? I venture to say, as a homeland security and transportation professional, that the answer is YES. Clearly, the current modal specific security programs that TSA has in place are solid and effective; however, as I am sure TSA will agree, review and examination of current security programs is an on-going process. In the area of homeland security, we are faced with new challenges and threats every day. The key to success is recognizing challenges, staying in touch with newly emerging technologies and programs, and, as appropriate, adapting programs to meet these challenges. Currently, TSA has active security programs in place for travelers—highways, mass transit, rail, air, and maritime. For more information, visit www.tsa.gov/travelers and enter your mode of travel. DTJ

DTJ INDEX OF ADVERTISERS Dr. Kent N. Gourdin

Transportation in America Transportation in America, 20th edition, published by the Eno Transportation Foundation, 83 pp., 2007. (Pub. Order # 505-T), $65.00 plus shipping. Order directly from the Eno Transportation Foundation at http://www.enotrans.com.

ransportation in America is a compilation of the latest data on the nation’s vast transportation networks. Produced in collaboration by the Eno Foundation and the Upper Great Plains Transportation Institute with support from USDOT, the publication draws upon more than forty sources of

36 | Defense Transportation Journal |

information, including industry representatives, economists, and federal agencies. It provides a broad array of thoroughly sourced data, along with clear graphics, that describe the movement of people and goods along America’s highways, railroads, waterways, on public transit, and by air. First published half a century ago, TIA offers analysts and decision makers across all modes of transportation an unparalleled reference tool. For anyone interested transportation and its impact on the US economy, owning this reasonably priced work is an absolute must. DTJ

AUGUST 2008

APL. . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 17 ARRC . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 8 Budget. . . . . . . . . . . . . . . . . . . . . . . . . pg. 28 Choice Hotels. . . . . . . . . . . . . . . . . . . pg. 13 FedEx. . . . . . . . . . . . . . . . . . . . . . . . . . Cov 4 Landstar. . . . . . . . . . . . . . . . . . . . . . . . . pg. 2 Lockheed. . . . . . . . . . . . . . . . . . . . . . . pg. 26 Maersk SeaLand . . . . . . . . . . . . . . . . . pg. 1 Norfolk Southern. . . . . . . . . . . . . . . . pg. 32 SAIC. . . . . . . . . . . . . . . . . . . . . . . . . . . Cov 3 T. F. Boyle Transportation. . . . . . . . . . pg. 6 United Van Lines . . . . . . . . . . . . . . . . Cov 2

ANSWER

St. Augustine (b. 354) Philosopher, theologian, and Bishop of Hippo (Algeria), St Augustine’s thought profoundly influenced the medieval worldview.

Logistics and supply chain management services — from Alabama to Afghanistan — and everywhere in between.

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